SAMPLE. Not for training purposes. Student Workbook. BSBPMG522 Undertake project work. 1 st Edition 2015

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1 Student Workbook BSBPMG522 Undertake project work 1 st Edition 2015 Part of a suite of support materials for the BSB Business Services Training Package

2 Copyright and Trade Mark Statement 2015 Innovation and Business Industry Skills Council Ltd All rights reserved. Apart from any use permitted under the Copyright Act 1968, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise, without written permission from the publisher, Innovation and Business Industry Skills Council Ltd ( IBSA ). Use of this work for purposes other than those indicated above, requires the prior written permission of IBSA. Requests should be addressed to Products and Services Manager, IBSA, Level 11, 176 Wellington Pde, East Melbourne VIC 3002 or sales@ibsa.org.au. Innovation and Business Skills Australia, IBSA and the IBSA logo are trade marks of IBSA. Disclaimer Care has been taken in the preparation of the material in this document, but, to the extent permitted by law, IBSA and the original developer do not warrant that any licensing or registration requirements specified in this document are either complete or up-to-date for your State or Territory or that the information contained in this document is error-free or fit for any particular purpose. To the extent permitted by law, IBSA and the original developer do not accept any liability for any damage or loss (including loss of profits, loss of revenue, indirect and consequential loss) incurred by any person as a result of relying on the information contained in this document. The information is provided on the basis that all persons accessing the information contained in this document undertake responsibility for assessing the relevance and accuracy of its content. If this information appears online, no responsibility is taken for any information or services which may appear on any linked websites, or other linked information sources, that are not controlled by IBSA. Use of versions of this document made available online or in other electronic formats is subject to the applicable terms of use. To the extent permitted by law, all implied terms are excluded from the arrangement under which this document is purchased from IBSA, and, if any term or condition that cannot lawfully be excluded is implied by law into, or deemed to apply to, that arrangement, then the liability of IBSA, and the purchaser s sole remedy, for a breach of the term or condition is limited, at IBSA s option, to any one of the following, as applicable: (a) if the breach relates to goods: (i) repairing; (ii) replacing; or (iii) paying the cost of repairing or replacing, the goods; or (b) if the breach relates to services: (i) re-supplying; or (ii) paying the cost of re-supplying, the services. Published by: Innovation and Business Industry 1 st edition published: April 2015 Skills Council Ltd 1 Level 11 st edition version: Wellington Pde Release date: April 2015 East Melbourne, VIC 3002 Phone: Fax: reception@ibsa.org.au ISBN: Stock code: BSBPMG5221W

3 Table of Contents Getting Started...1 Features of the training program...1 Structure of the training program...1 Recommended reading...2 Section 1 Introduction to Project Management 1.1 About Project Management...7 About projects...7 History of project management Section summary Further reading Elements of Project Management What skills will you need? Increased use of project management tools Key terms and definitions Project management principles Project management structures Project management systems Legislative and regulatory requirements Project roles Project management descriptions and methodologies Developing your skills Common project problems Section summary Further reading Section checklist Section 2 Undertaking a Project 2.1 Project Management Cycle What skills will you need? The project management life cycle Software and support Section summary Further reading Section checklist... 47

4 2.2 Initiating a Project What skills will you need? Purpose and aims Project deliverables Goals and objectives Project parameters Selecting the team Identifying the stakeholders Key documents and tools Section summary Further reading Section checklist Planning a Project What skills will you need? Planning the project Identify the tasks with a work breakdown structure Building the team Assigning tasks Scheduling the work Develop a budget Managing risk Develop a communication plan Consult with team members Get training Obtain approval for project plan Section summary Further reading Section checklist Implementing a Project Plan What skills will you need? Managing the project team Stick to your plans Solving problems Monitoring team performance: Coach your team Section summary Further reading Section checklist Monitoring a Project

5 What skills will you need? Monitor plans and strategies General characteristics of KPIs Report on progress Section summary Further reading Section checklist Closing a Project What skills will you need? Finalising a project planning in advance Finalise the project general overview Review with the client/sponsor Section summary Further reading Section checklist Glossary Appendices Appendix 1 Max Lionel Realty simulated business Appendix 2 Forms and templates Appendix 3 Max Lionel Realty Privacy Policy Appendix 4 Project initiation document Appendix 5 Communications management plan

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7 Student Workbook Getting Started Getting Started Features of the training program The key features of this program are: Student Workbook self-paced learning activities to help you develop an understanding of key concepts and terms. The Student Workbook is broken down into several sections. Facilitator-led sessions challenging and interesting learning activities that can be completed in the classroom or by distance learning that will help you to consolidate and apply what you have learned in the Student Workbook. Assessment Tasks summative assessments where you can apply your new skills and knowledge to solve authentic workplace tasks and problems. Structure of the training program This training program introduces you to international marketing. Specifically, you will develop the skills and knowledge in the following topic areas: Section 1 Introduction to project management: 1.1 About project management 1.2 Elements of project management Section 2 Undertaking a project: 2.1 Project management cycle 2.2 Initiating a project 2.3 Planning a project 2.4 Implementing a project plan 2.5 Monitoring a project 2.6 Closing a project. Your facilitator may choose to combine or split sessions. For example, in some cases, this training program may be delivered in two or three sessions, or in others, as many as eight sessions. BSBPMG522 Undertake project work 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 1 of 168

8 Getting Started Student Workbook Recommended reading Some recommended reading for this unit includes: Print Great Britain Office of Government Commerce, 2009, Managing Successful Projects with PRINCE2, Stationery Office Books, London. Project Management Institute, 2013, A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5 th edn, Project Management Institute, Newtown Square, Pennsylvania. Standards Australia, 2002, AS Project management General conditions, SAI Global. Standards Australia, 2003, AS ISO Quality management systems Guidelines for quality management in projects, SAI Global. Standards Australia, 2009, AS/NZS ISO 31000:2009 Risk management Principles and guidelines, SAI Global. Online Accounting Tools, 2014, Functional organizational structure, Accounting Tools, viewed August 2014, < Bond, C., 2009, Realising project benefits: the Tasmanian Government approach, Tasmanian Government, viewed August 2014, < data/assets/pdf_file/0005/78314/ Realising_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>. BusinessMate, 2010, What is a functional organizational structure?, BusinessMate.org, viewed August 2014, < Egeland, B., 2009, Five key steps to closing down the project, Project management tips, viewed August 2014, < Haughey, D., 2010, Avoid failed projects, Project smart, viewed August 2014, < Haughey, D., 2010, The project management body of knowledge (PMBOK), Project smart, viewed August 2014, < Hutchings, R., 2014, RegPM (Registered Project Manager) Project Manager level certification, Project Management, viewed August 2014, < Inter Agency Policy and Projects Unit, 2008, Project management fact sheet: why project management?, Tasmanian Government, viewed August 2014, < data/assets/pdf_file/0004/78187/why_ Project_Management_Fact_Sheet.pdf>. 1 st edition version: 1 BSBPMG522 Undertake project work Page 2 of Innovation and Business Industry Skills Council Ltd

9 Student Workbook Getting Started Jordan, A., 2012, Your project s approved... now what?, ProjectManagement.com, viewed August 2014, < Your-Projects-Approved---Now-What->. Microsoft, 2014, Project, Office, viewed August 2014, < Office of Government Commerce, United Kingdom, 2011, PRINCE2 methodology, PRINCE2.com, viewed August 2014, < methodology>. Project Management Institute, viewed August 2014, < Project Management Office, 2007, Project management templates and FNL examples, National Cancer Institute Frederick: Project management resources, viewed August 2014, < Templates.aspx>. Shrewsbury, L., 2011, What is an agile project?, Project manager.com.au, viewed August 2014, < Stanleigh, M., 2010, Combining the ISO and PMBOK to ensure successful projects, Business Improvement Architects, viewed August 2014, < Tasmanian Government, 2013, Risk management, Tasmanian Government, viewed August 2014, < supporting_resources/toolkit/risk_management>. TechMediaNetwork, 2014, Mac Project Management Software Review, TopTenReviews, viewed August 2014, < Wallace, S., 2007, Project structure and organisation, The epmbook, viewed August 2014, < Walsh, A., 2011, 5 Why s, Chart it now, viewed August 2014, < Wideman, M., 2002, Wideman comparative glossary of project management terms v3.1, Max s project management wisdom, viewed August 2014, < Please note that any URLs contained in the recommended reading, learning content and learning activities of this publication were checked for currency during the production process. Note, however, IBSA cannot vouch for the ongoing currency of URLs. Every endeavour has been made to provide a full reference for all web links. Where URLs are not current we recommend using the reference information provided to search for the source in your chosen search engine. BSBPMG522 Undertake project work 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 3 of 168

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11 Section 1 Introduction to Project Management BSBPMG522 Undertake project work 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 5 of 168

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13 Student Workbook 1.1 About Project Management 1.1 About Project Management About projects What is a project? A project is usually defined as a set of distinct processes and tasks and runs for a set period of time, and delivers academic, business or technical objectives. According to the Project Management Institute, a project is a temporary endeavour undertaken to create a unique product, service, or result. 1 Therefore, a key feature of projects, as opposed to operations, is that they have distinct beginnings and ends. Case study: Max Lionel Realty Max Lionel Realty was founded in 2008 by property developer Max Lionel. Through its client agents, the organisation manages property sales and rentals (both residential and commercial) on behalf of a range of clients. The organisation also separately engages in investment activities, such as property and land development. Max Lionel Realty has been a member of the Real Estate Institute of Victoria (REIV) since 2008 and proudly follows the REIV Code of Conduct. Max Lionel conducts day-to-day operations to achieve company strategic objectives. These strategic objectives include: engaging with customers and clients building goodwill and reputation for integrity supporting innovative thinking, management and leadership skills creating a high-performing, highly profitable organisation. On occasion, Max Lionel will sponsor projects to further the strategic objectives listed above. Successful past projects at Max Lionel include: rollout of new computers and outsourced IT services to all agents agent induction program design and pilot rollout implementation of new accounting system, including training of relevant employees. 1 Project Management Institute, 2013, A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5 th edn, Project Management Institute, Newtown Square, Pennsylvania, p. 3. BSBPMG522 Undertake project work 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 7 of 168

14 1.1 About Project Management Student Workbook Why do businesses run projects? Some of the reasons a business might initiate a project include: market demand for a quality product or service technological advances solving a business need request from a customer ensure new laws and regulations can be complied with response to competition. Planning and keeping track of all the elements of a project has become a management skill in its own right, with a defined set of parameters. What is project management? There are numerous definitions of project management. Definitions may differ depending on whether the focus is on organisational change management as such or on the delivery of products goals or outcomes. According to the Tasmanian State Government, project management is a formalised and structured method of managing change in a rigorous manner to meet these outcomes. 2 According to the Project management institute, project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. 3 Project management concentrates on using knowledge and skills to achieve specific outcomes to be accomplished by a certain time, to a clear quality standard and within a given level of resources or budget. Wherever you work, the chances are that you will need to understand the language and concepts of project management and to apply the skills you will learn in this course of study. Customer expectations You might think that project management is only required to get a specified outcome, but it s more than that. It s about getting an outcome that meets the requirements of the customer, whether that customer is internal or external, a client or senior management. Scope, cost and time: The triple constraint of project management Many workplaces, whether business, academic or manufacturing, use project management as a way of getting set tasks completed on time, within budget and to an agreed specification. 2 C. Bond, 2009, Realising project benefits: the Tasmanian Government approach, Tasmanian Government, viewed August 2014, < data/assets/pdf_file/0005/78314/ Realising_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>. 3 Project Management Institute, 2013, A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5 th edn, Project Management Institute, Newtown Square, Pennsylvania, p st edition version: 1 BSBPMG522 Undertake project work Page 8 of Innovation and Business Industry Skills Council Ltd

15 Student Workbook 1.1 About Project Management Ensuring that quality, cost and time requirements are met is critical to project management and critical to business. Project management methodology provides the structure to manage business needs and customer expectations with regard to: scope/quality/performance, for example, what is done, delivered and to what specification cost, for example, human or physical resources time, the duration of the project. These three components of project management are often referred to as the triple constraint of project management. Changing one constraint setting necessarily affects one or two other constraints. For example, increasing the amount or quality of deliverables will increase cost, time or both. Reasons for project failure While using project management methodology greatly increases the chances of the project succeeding, some projects do fail. Some of the reasons for project failure include: changing scope (that is, what s in/what s not keeps changing as the project evolves) insufficient planning risks are not managed issues are not managed poor communication lack of commitment and responsibility by stakeholders. By keeping an eye on the reasons for failure, we can reduce the likelihood of project failure. Learning activity: Quality, time, cost The three components of project management are: scope/quality cost time. Changing one component affects the other two. Discuss how/why. BSBPMG522 Undertake project work 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 9 of 168

16 1.1 About Project Management Student Workbook Research 3 constraints of project management on the internet. What models exist? Why, in some models is quality or performance considered separately to scope? Consider an example of a work project you were involved in or are aware of in which one, two or all three constraints were altered during the course of the project. For example, contractors took too long to finish a project-related task and both cost and time increased. Discuss how changes in one constraint affected the other constraints. History of project management Although it is claimed that modern project management has only existed since the 1950s, students of history might find this hard to believe. In the past, how did people: build the pyramids of Egypt? build Chartres Cathedral? undertake the campaigns of the Crusades? build the Great Wall of China? build the Suez Canal? build transcontinental railroads? They did it by following project management principles. As these examples show, the basic principles of project management are easy to understand and have been around for a long time. 1 st edition version: 1 BSBPMG522 Undertake project work Page 10 of Innovation and Business Industry Skills Council Ltd

17 Student Workbook 1.1 About Project Management Fast forward to the modern era At the beginning of the last century, project management took on a more scientific approach. Modern project management principles are what they are today because of this movement. Project management has evolved from various industry fields, such as construction, engineering and defence. Initially, the most notable contributors to project management were Henry Gantt and Henri Fayol. They used planning and control techniques and are famously known for the development and use of the Gantt chart as a project management tool, as well as the five management functions (which currently forms the basis for the body of knowledge associated with project and program management today). Prior to the 1950s, projects were managed using mostly Gantt charts and various other informal methods. During the First and Second World Wars, project management was used for managing resources and undertaking campaigns. Learning activity: History of project management Do an internet search for the following terms: history of project management project management timeline. Visit and read through this site, which provides an interesting insight into the history of project management: Lessons from history, The history of project management, viewed August 2014, < In what way were the major projects built in ancient times similar to projects undertaken today? BSBPMG522 Undertake project work 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 11 of 168

18 1.1 About Project Management Student Workbook More recent times Current project management methods have been used only as recent as the 1960s. Project management is now extensively adopted by most organisations as it is a work structure that provides effective use of time and resources, quality control and cost management. Effective project management is vital for the successful undertaking of a project. A successful project means that the specified results are delivered on time and within budget. Tip: Project skills are increasingly in demand Business projects can be quite diverse, for example, the development of a new product or service; the establishment of a new production line in a manufacturing organisation, a public relations campaign, or a major building (or re-building) program. While the 1980s were about quality and the 1990s all about globalisation, the 2000s are about velocity (including speed to market, rapid response to customer needs, etc.). Learning activity: Project attitudes Why is it important to manage the activities involved in achieving a specific outcome? Complete the questionnaire below. What are your current attitudes towards project management? Using the scale shown below, evaluate the following statements before proceeding any further with this unit. On a scale of zero to five, zero stands for strongly disagree and five stands for strongly agree Strongly disagree Disagree Somewhat disagree Somewhat agree Agree 1. I can trust that other people will do their job without me following them up. 2. Projects always run late. There s nothing you can do about it. 3. The holiday/house/event won t cost any more than the amount I ve been quoted. 4. I m only going on a holiday, nothing can possibly go wrong. 5. I believe the old Aussie saying, she ll be right mate. Total Score: Strongly agree The range of scores achieved in the questionnaire can range from 0 to 25. If you are: closer to 25 You may be too optimistic. You might need to change your attitude in order to do well in this program closer to 0 you are a natural project manager, you just need to do the course to get the technical skills. 1 st edition version: 1 BSBPMG522 Undertake project work Page 12 of Innovation and Business Industry Skills Council Ltd

19 Student Workbook 1.1 About Project Management Project managers have to be able to lead and motivate, but they also have to be able to step away and analyse and plan for what can go wrong. What you can you learn and put into practice about project management will not only improve your score, but also how you can improve the likelihood of achieving your goals on time and on budget, by following a project management methodology. Section summary You should know understand what project management entails, and have a background on how it has been applied historically and in more recent times. Further reading Bond, C., 2009, Realising project benefits: the Tasmanian Government approach, Tasmanian Government, viewed August 2014, < data/assets/pdf_file/0005/78314/reali sing_project_benefits_tasmanian_government_approach_presentation.pdf>. Project Management Institute, viewed August 2014, < Wideman, M., 2002, Wideman comparative glossary of project management terms v3.1, Max s project management wisdom, viewed August 2014, < BSBPMG522 Undertake project work 1 st edition version: Innovation and Business Industry Skills Council Ltd Page 13 of 168

20 1.2 Elements of Project Management Student Workbook 1.2 Elements of Project Management Many organisations use a project management methodology to achieve their organisational or corporate goals and objectives as well as for process improvement initiatives. This section will discuss project management methodologies, where they are used and why they are used. Case study: CRM system implementation at Max Lionel Realty To build client relationships and improve client service, Max Lionel Realty intends to source and implement a new customer relationship management (CRM) system. The purchase and initial rollout of the system, including relevant training will constitute a project sponsored by Operations General Manager, Kim Sweeney. The project has a fixed, six-month timeframe for completion. Kim Sweeney, your manager, has asked you to project manage this important implementation. You are excited about running this project but, focusing on your role as an estate agent, you have not worked as a project manager for some years. You will need to re-acquaint yourself with important methods and terms. The budget for the implementation will be in the range of $50,000, a significant capital expense for Max Lionel Realty. But, according to cost-benefit analysis already undertaken the project will deliver a sizable return on investment over the next three years. For these reasons, the project must succeed (by meeting all stakeholder expectations regarding scope, quality, cost and time) and has been given the highest priority. What skills will you need? In order to effectively prepare for projects as a project manager, you must be able to: identify basic project management principles and methodologies have an understanding of project management systems and structures outline legislative and regulatory requirements. 1 st edition version: 1 BSBPMG522 Undertake project work Page 14 of Innovation and Business Industry Skills Council Ltd