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PROJECTPROJECT
MANAGEMENT &MANAGEMENT &
BUSINESS PLANNINGBUSINESS PLANNING
PROCESSPROCESS

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
Organisations under takeOrganisations under take
RISKRISK when they need towhen they need to
achieve their businessachieve their business
objectives more effectively.objectives more effectively.
ExpandExpand ONLYONLY when thewhen the
potential benefits out weightpotential benefits out weight
the risk involved.the risk involved.

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
 All projects should thereforeAll projects should therefore
arise from a need to fulfil twoarise from a need to fulfil two
main factors such as:main factors such as:
1.1. Specific Strategic ObjectivesSpecific Strategic Objectives
2.2. Achieve competitive advantagesAchieve competitive advantages

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
The business planning process hasThe business planning process has
four essential steps:four essential steps:
RememberRemember ‘‘MOSTMOST’’
Mission StatementMission Statement
 States the reason for theStates the reason for the
organisations existence;organisations existence;
 Initiates the business planningInitiates the business planning
process;process;

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
Objectives are:Objectives are:
 The position;The position;
 In quantities terms;In quantities terms;
 In qualitative terms;In qualitative terms;
 that the organisation wishes to reach;that the organisation wishes to reach;
 Must be in a stated period of time.Must be in a stated period of time.

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
Strategies to consider:Strategies to consider:
 Design to achieve the objectivesDesign to achieve the objectives
such as:such as:
 A set of budgetsA set of budgets
 Clear goalsClear goals
 Achievable targetsAchievable targets
 Statement for needs.Statement for needs.

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
Covering all aspects of the businessCovering all aspects of the business
such as:such as:
 PeoplePeople
 PremisesPremises
 OrganisationsOrganisations
 CapitalCapital
 Cash.Cash.

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
Tactical plansTactical plans
Individual plans to achieve items such as:Individual plans to achieve items such as:
 Defined goalDefined goal
 Operations and ProjectsOperations and Projects
The plan describes how the organisationThe plan describes how the organisation
will achieve each element of the strategicwill achieve each element of the strategic
plan.plan.

Tactical plansTactical plans

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS

PROJECT MANAGEMENTPROJECT MANAGEMENT
BUSINESS PLANNING PROCESSBUSINESS PLANNING PROCESS
Another way to look at Business planAnother way to look at Business plan
 RememberRemember ‘COST’‘COST’
 CC Commitment by all concerned to the projectCommitment by all concerned to the project
 OO Objectives being clear to all-Scope andObjectives being clear to all-Scope and
MissionMission
 SS Strategy to meet the objectives-MilestoneStrategy to meet the objectives-Milestone
PlanPlan
 TT Tactical-activities found necessary toTactical-activities found necessary to
achieve to each milestone and solve Problemsachieve to each milestone and solve Problems

P7P7

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
FUNCTION OF MANAGEMENT TEAMFUNCTION OF MANAGEMENT TEAM
 The basic Management PrinciplesThe basic Management Principles
described by Henri Fayol are:described by Henri Fayol are:
 To planTo plan
 To organiseTo organise
 To co-ordinateTo co-ordinate
 To controlTo control
 To leadTo lead

FUNCTION OF PROJECTFUNCTION OF PROJECT
MANAGEMENTMANAGEMENT

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
The function of Management TeamThe function of Management Team
in more detail are:in more detail are:
 To establish the clientsTo establish the clients
objectives and priorities issuesobjectives and priorities issues
such as:such as:
 brief formulation;brief formulation;
 client organisation;client organisation;
 approval powers.approval powers.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Design Project OrganisationDesign Project Organisation
Such as:Such as:
 organisation chart;organisation chart;
 decision point;decision point;
 Relationships;Relationships;
 feed back.feed back.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Integrate Client into theIntegrate Client into the
projectproject
client organisationclient organisation
integrated into projectintegrated into project
organisation;organisation;
people responsibilities;people responsibilities;
decision processes.decision processes.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Selection and appointment ofSelection and appointment of
ContributorsContributors
 identify contributors;identify contributors;
 identify input required;identify input required;
 identify when input required andidentify when input required and
duration;duration;
 record types of appointment.record types of appointment.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Full brief formulation processFull brief formulation process
 Establish need, budget, costEstablish need, budget, cost
plan, cost limit, procurementplan, cost limit, procurement
route.route.
 Start value engineering.Start value engineering.
 Programme formulation.Programme formulation.
 The overall project programme.The overall project programme.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
The phase or stage programmeThe phase or stage programme
 The design programme.The design programme.
 The procurement programme.The procurement programme.
 The construction programme.The construction programme.
 The commissioningThe commissioning
programmeprogramme..

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Activation of the relationshipsActivation of the relationships
between contributorsbetween contributors
 Ensure contributors are broughtEnsure contributors are brought
in and integrated into the projectin and integrated into the project
organisation.organisation.
 Ensure contributors can performEnsure contributors can perform
as required.as required.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Establish appropriate informationEstablish appropriate information
and communication structure by:and communication structure by:
 establishing a full projectestablishing a full project
procedures manual containing;procedures manual containing;
 description of formaldescription of formal
communication cannel;communication cannel;

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
 change requests and instructions;change requests and instructions;
 drawings framework;drawings framework;
 co-ordination project informationco-ordination project information
system;system;
 Address index of all contributorsAddress index of all contributors..

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Convening and chairing meetings ofConvening and chairing meetings of
contributors at all stages such as:contributors at all stages such as:
 Judging the need and frequency;Judging the need and frequency;
 Who needs to attend;Who needs to attend;
 Agenda setting;Agenda setting;
 Minutes and action.Minutes and action.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Monitoring and controllingMonitoring and controlling
 Pro-active role;Pro-active role;
 Obtaining feedback and under takingObtaining feedback and under taking
analysis;analysis;
 Testing outcomes to objectives andTesting outcomes to objectives and
taking corrective action;taking corrective action;
 Forecasting;Forecasting;
 Integrating and controlling contributors.Integrating and controlling contributors.

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
Managing completionManaging completion
 Commissioning programme;Commissioning programme;
 Training of user;Training of user;
 As built drawings-user maintenanceAs built drawings-user maintenance
manuals;manuals;
 Strategy for occupation or disposal.Strategy for occupation or disposal.
Evaluation of outcomesEvaluation of outcomes
 Success in achieving objectives;Success in achieving objectives;
 The final feedback loop;The final feedback loop;

FUNCTION OF PROJECT MANAGEMENTFUNCTION OF PROJECT MANAGEMENT
SYSTEMATIC APPROACH TO ANYSYSTEMATIC APPROACH TO ANY
PROJECTPROJECT
 Royal Institute of British ArchitectsRoyal Institute of British Architects
(RIBA PLAN OF WORK)(RIBA PLAN OF WORK)

TACTICAL PLANSTACTICAL PLANS

RIBA PLAN OF WORKRIBA PLAN OF WORK
AppraisalAppraisal
11 Carry out studies to determine theCarry out studies to determine the
feasibility of the Client's requirement.feasibility of the Client's requirement.
22 2A Review with client alternative design2A Review with client alternative design
and construction approaches and theand construction approaches and the
cost Implications.cost Implications.
33 2B Provide information for report on cost2B Provide information for report on cost
implications.implications.

RIBA PLAN OF WORKRIBA PLAN OF WORK
B Strategic BriefB Strategic Brief
11 Receive strategic brief prepared by the client.Receive strategic brief prepared by the client.
C Outline ProposalsC Outline Proposals
1 Commence development of Strategic Brief into1 Commence development of Strategic Brief into
Project BriefProject Brief
2 Prepare Outline Proposal2 Prepare Outline Proposal
3A Provide an approximation of construction3A Provide an approximation of construction
costs. ORcosts. OR
3B Provide information for cost planning.3B Provide information for cost planning.

RIBA PLAN OF WORKRIBA PLAN OF WORK
 4 Obtain Client approval to Outline4 Obtain Client approval to Outline
Proposals and approximate constructionProposals and approximate construction
cost.cost.
 5 Co-operate with Planning Supervisor5 Co-operate with Planning Supervisor
where applicable.where applicable.

RIBA PLAN OF WORKRIBA PLAN OF WORK
D Detailed ProposalsD Detailed Proposals
1 Complete developments of Project Brief.1 Complete developments of Project Brief.
22 Develop the Detailed Proposal fromDevelop the Detailed Proposal from
approved Outline Proposals.approved Outline Proposals.
3A Prepare a cost estimate. OR3A Prepare a cost estimate. OR
3B Provide information for preparation of3B Provide information for preparation of
cost estimate.cost estimate.
4 Consult statutory authorities.4 Consult statutory authorities.

RIBA PLAN OF WORKRIBA PLAN OF WORK
 5 Obtain Client approval to the Detailed5 Obtain Client approval to the Detailed
Proposal showing spatial arrangements,Proposal showing spatial arrangements,
material and appearance, and a costmaterial and appearance, and a cost
estimate.estimate.
 6 Prepare and submit application for full6 Prepare and submit application for full
planning permission.planning permission.

RIBA PLAN OF WORKRIBA PLAN OF WORK
E Final ProposalsE Final Proposals
 1 Design Final Proposals from approved1 Design Final Proposals from approved
Detailed Proposals.Detailed Proposals.
 2A Revise cost estimate.2A Revise cost estimate.
 2B Provide information for revision of cost2B Provide information for revision of cost
estimate.estimate.
 3 Consult statutory authorities on3 Consult statutory authorities on
developed design proposals.developed design proposals.

RIBA PLAN OF WORKRIBA PLAN OF WORK
 44 Obtain Client approval to type ofObtain Client approval to type of
construction, quality of materials, standardconstruction, quality of materials, standard
of workmanship and revised costof workmanship and revised cost
estimate.estimate.
 5 Advise on consequences of any5 Advise on consequences of any
subsequent changes on cost andsubsequent changes on cost and
programme.programme.

RIBA PLAN OF WORKRIBA PLAN OF WORK
F Production InformationF Production Information
1 Prepare production information for tender1 Prepare production information for tender
purposes.purposes.
2A Prepare schedules of rates and/or2A Prepare schedules of rates and/or
quantities and/or schedules of works forquantities and/or schedules of works for
tendering purposes and revise costtendering purposes and revise cost
estimate. ORestimate. OR

RIBA PLAN OF WORKRIBA PLAN OF WORK
 2B Provide information for preparation of2B Provide information for preparation of
tender pricing documents and revision oftender pricing documents and revision of
cost estimate.cost estimate.
 3A Prepare and make submissions3A Prepare and make submissions
under building acts and/or regulations forunder building acts and/or regulations for
other statutory requirements. ORother statutory requirements. OR
 3B Prepare and give building notice3B Prepare and give building notice
under building acts and/or regulations (notunder building acts and/or regulations (not
applicable in Scotland).applicable in Scotland).

RIBA PLAN OF WORKRIBA PLAN OF WORK
 4 Prepare further production information4 Prepare further production information
for construction purposes.for construction purposes.
G Tender documentsG Tender documents
11 Prepare and collate tender documents inPrepare and collate tender documents in
sufficient detail to enable a tender orsufficient detail to enable a tender or
tenders to be obtained.tenders to be obtained.
22 Where applicable pass final informationWhere applicable pass final information
to Planning Supervisor for pre-tenderto Planning Supervisor for pre-tender
Health and Safety Plan.Health and Safety Plan.

RIBA PLAN OF WORKRIBA PLAN OF WORK
 3A Prepare pre-tender costs. OR3A Prepare pre-tender costs. OR
 3B Provide information for preparation of3B Provide information for preparation of
pre-tender cost estimatepre-tender cost estimate
H Tender ActionH Tender Action
1 Contribute to appraisal and report on1 Contribute to appraisal and report on
tenders negotiations.tenders negotiations.
2 If instructed revise production information2 If instructed revise production information
to meet adjustments in the tender sum.to meet adjustments in the tender sum.

RIBA PLAN OF WORKRIBA PLAN OF WORK
J MobilisationJ Mobilisation
1 Provide production information as1 Provide production information as
requested for the building contract and forrequested for the building contract and for
construction.construction.
K Construction to Practical CompletionK Construction to Practical Completion
1 Make visits to the works in connection1 Make visits to the works in connection
with the Architect's design.with the Architect's design.

RIBA PLAN OF WORKRIBA PLAN OF WORK
 2 Provide further information reasonable2 Provide further information reasonable
required for construction.required for construction.
 3 Review design information from3 Review design information from
contractors or specialists.contractors or specialists.
 4 Provide drawings showing the building4 Provide drawings showing the building
and main lines of drainage and other Iand main lines of drainage and other I
information for the Health and Safety File.information for the Health and Safety File.

RIBA PLAN OF WORKRIBA PLAN OF WORK
 5 Give general advice on operation and5 Give general advice on operation and
maintenance of the building.maintenance of the building.
L After Practical Completion.L After Practical Completion.
1 Identify defects and make final1 Identify defects and make final
inspections.inspections.
2A Settle Final Account. OR2A Settle Final Account. OR
2B Provide information required by others2B Provide information required by others
for settling final account.for settling final account.