Post Implementation Review

This Post Implementation Review 

template will help you to perform a post project review for your project, soon after it has finished.

By performing a post project review, you can identify the project successes, deliverables, achievements and lessons learned.

The post project review is the last critical step in the project life cycle, as it allows an independent party to validate the success of the project and give confidence to the stakeholders that it has met the objectives it set out to achieve.

This template helps you perform a Post Implementation Review by:

Measuring the benefits and objectives Deciding whether the project was within scope Assessing the final deliverables produced Reviewing the project against schedule Comparing the expenditure against budget Stating the final outcome of the project

The Post Implementation Review template also helps you to:

Identify the key project achievements and milestones Document any lessons learned for future projects Communicate its success to stakeholders

This Post Implementation Review template provides you with the steps needed to review a project and document its overall level of success. It includes all of the sections, tables and practical examples you need, to document a Post Implementation review today.

What is a Post Implementation Review?

A Post Implementation Review, or Post Project Review, is performed after a project is complete. The purpose of a Post Implementation Review is to determine whether the project was successful and identify any lessons learned. A Post Implementation Review also looks at whether the project produced the required deliverables within the agreed timeframe. The overall achievements are also documented in the Post Implementation Review report.

When to conduct a Post Implementation Review?

The best time to conduct a Post Implementation Review is between 1 and 6 months after a project has completed. By then, the project deliverables will have been handed over to the customer and the benefits of the project will be clear. A Post Implementation Review is a critical part in the project life cycle, as it's during this review that the success of the project is measured. This template includes all of the content you need, to perform a Post Implementation Review today.

7.Measuring and Controlling Assets Employed

Measuring and Controlling Assets Employed

The purpose of measuring assets employed are analogous to the purposes for profit centers. The purpose being

to provide information that is useful in making sound decisions about assets employed and to motivate managers

make these sound decisions that are in the best interests of the company. 

Also , to measure the performance of business units as an economic entity.

Long Term Investment

Long term investments can be a strategic and control issue:

 Long term investment decisions are made after long term strategy is decided (not the other way

around).

Also, strategic leverage affects how much investments in long term assets are necessary.

Consequently, if decisions about long term investments are made incorrectly, strategy and strategic

leverage are less likely to be accomplished.

 Long term investments are generally huge in their monetary and non-monetary impact.

 As such, if managers and others do not take all precautions when investing and later, in measuring the

usefulness of the assets and their contribution,  it will have significant adverse impact.

·         Therefore, measuring long term assets is also a control issue of great importance

Performing investment analysis

Unless an organization is a 100% service organization, profits are generated ONLY if you have

investments.

 Therefore, earning a satisfactory return on the investments employed is necessary.

The investors in stock compute such a return routinely (e.g. Ford and G.M.).

To compare two units, A and B, without considering the investment made in each is meaningless.

 First, a manager should invest in assets only if the assets will produce adequate returns.

Second, when an asset is not providing adequate return (the expected return could change over the

years), it is time to “disinvest” or reduce further investments into this asset.

Two ways to relate profits and investments and to compare investment alternatives

1. Return on Investments (ROI)

2. Economic Value Added (EVA)

ROI

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a

number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of

the investment; the result is expressed as a percentage or a ratio.  

The return on investment formula:

ROI = (Gain from Investment – Cost of Investment) / Cost of Investment

In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest.  Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.

EVA

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as "economic profit")

EVA = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital)

Cost of Capital

The minimum return an organization must earn on its investments to meet investor expectations.

Cost of capital is specific to each organization and depends on several factors such as the type of

industry in which it operates, how risky the organization is, the rate at which it can borrow from outside and

more (borrowing, in this context, refers to both debt and equity).

If an investment returns more than the cost of its capital, the investment is positive and if not, it is

negative and as well not invested.

ROI can lead to poor decisions:

 Encourages division managers to retain assets beyond their optimal life and not to invest in new assets which would increase the denominator.

Can cause corporate managers to over- allocate resources to divisions with older assets because they appear to be relatively more profitable.

Capital may be allocated towards least profitable divisions, at the expense of the most profitable divisions. 

So, when computing ROI or EVA, don’t use net book value of the asset but use gross book value (original

purchase price ignoring depreciation).

Advantages of using EVA

EVA ranks project on profits in excess of the cost of capital (EVA increases).

With EVA, all business units have the same profit objective for comparable investments.

EVA permits the use of different interest rates for different investment projects.

EVA has greater correlation with a firm’s market value (it optimizes shareholder value).

ROI versus EVA

In practice, most businesses use ROI because it is simpler to compute and understand.

It is also comprehensive in the sense that it considers the entire balance sheet and       income statement.

Unlike ROI – a percentage, EVA is a dollar amount and does not allow for intra and inter company

comparisons. 

There is considerable debate about the right approach to management control over fixed assets .Reporting on the economic performance of an investment center is quite different from reporting on the performance of the manager in charge of that center.

I n t r o d u c t i o n t o t h e b a l a n c e d s c o r e c a r dThe background

No single measures can give a broad picture of the organisation’s health.

So instead of a single measure why not a use a composite scorecard involving a number of different measures.

Kaplan and Norton devised a framework based on four perspectives – financial, customer, internal and learning and growth.

The organisation should select critical measures for each of these perspectives.

Origins of the balanced scorecard

R.S. Kaplan and D.P. Norton -”The Balanced Scorecard- measures that drive performance”. Harvard Business Review, January 1992

-”The Balanced Scorecard”, Harvard University Press, 1996. “Kaplan and Norton suggested that organisations should focus their efforts on a

limited number of specific, critical performance measures which reflect stakeholders key success factors” (Strategic Management, J. Thompson with F. Martin)

What is the balanced scorecard?

A system of corporate appraisal which looks at financial and non-financial elements from a variety of perspectives.

An approach to the provision of information to management to assist strategic policy formation and achievement.

It provides the user with a set of information which addresses all relevant areas of performance in an objective and unbiased fashion.

A set of measures that gives top managers a fast but comprehensive view of the business.

The balanced scorecard…

Allows managers to look at the business from four important perspectives. Provides a balanced picture of overall performance highlighting activities that

need to be improved.

Combines both qualitative and quantitative measures.

Relates assessment of performance to the choice of strategy.

Includes measures of efficiency and effectiveness.

Assists business in clarifying their vision and strategies and provides a means to translate these into action.

In what way is the scorecard a balance?

The scorecard produces a balance between:

Four key business perspectives: financial, customer, internal processes and innovation.

How the organisation sees itself and how others see it. 

The short run and the long run

The situation at a moment in time and change over time

Main benefits of using the balanced scorecard

Helps companies focus on what has to be done in order to create a breakthrough performance

Acts as an integrating device for a variety of corporate programmes

Makes strategy operational by translating it into performance measures and targets

Helps break down corporate level measures so that local managers and employees can see what they need to do well if they want to improve organisational effectiveness

Provides a comprehensive view that overturns the traditional idea of the organisation as a collection of isolated, independent functions and departments

Project managementFrom Wikipedia, the free encyclopedia

Project management is the discipline of planning, organizing, securing, managing, leading, and controlling

resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end

(usually time-constrained, and often constrained by funding or deliverables),[1] undertaken to meet unique

goals and objectives,[2] typically to bring about beneficial change or added value. The temporary nature of

projects stands in contrast with business as usual (or operations),[3] which are repetitive, permanent, or

semi-permanent functional activities to produce products or services. In practice, the management of these

two systems is often quite different, and as such requires the development of distinct technical skills and

management strategies.

The primary challenge of project management is to achieve all of the project goals[4] and objectives while

honoring the preconceived constraints.[5] Typical constraints are scope, time, and budget.[1] The secondary

—and more ambitious—challenge is to optimize theallocation of necessary inputs and integrate them

to meet pre-defined objectives.

Contents

  [hide] 

1     History   

2     Approaches   

o 2.1      The traditional approach   

o 2.2      PRINCE2   

o 2.3      PRiSM   

o 2.4      Critical chain project management   

o 2.5      Event chain methodology   

o 2.6      Process-based management   

o 2.7      Agile project management   

o 2.8      Lean project management   

o 2.9      Extreme project management   

3     Processes   

o 3.1      Initiating   

o 3.2      Planning and design   

o 3.3      Executing   

o 3.4      Monitoring and controlling   

o 3.5      Closing   

o 3.6      Project controlling and project control systems   

4     Topics   

o 4.1      Project managers   

o 4.2      Project management triangle   

o 4.3      Work breakdown structure   

o 4.4      Project management framework   

o 4.5      International standards   

o 4.6      Project portfolio management   

5     See also   

6     References   

7     External links   

[edit]History

Roman soldiers building a fortress, Trajan's Column113 AD

Until 1900 civil engineering projects were generally managed by creative architects, engineers, and master

builders themselves, for example Vitruvius (first century BC), Christopher Wren (1632–1723), Thomas

Telford (1757–1834) andIsambard Kingdom Brunel (1806–1859).[6] It was in the 1950s that organizations

started to systematically apply project management tools and techniques to complex engineering projects.

[7]

Henry Gantt (1861–1919), the father of planning and control techniques

As a discipline, project management developed from several fields of application including civil

construction, engineering, and heavy defense activity.[8] Two forefathers of project management are Henry

Gantt, called the father of planning and control techniques,[9] who is famous for his use of the Gantt chart as

a project management tool (alternatively Harmonogram first proposed by Karol Adamiecki [10] ); and Henri

Fayol for his creation of the five management functions that form the foundation of the body of knowledge

associated with project and program management.[11] Both Gantt and Fayol were students of Frederick

Winslow Taylor's theories of scientific management. His work is the forerunner to modern project

management tools including work breakdown structure (WBS) and resource allocation.

The 1950s marked the beginning of the modern project management era where core engineering fields

come together to work as one. Project management became recognized as a distinct discipline arising from

the management discipline with engineering model.[12] In the United States, prior to the 1950s, projects

were managed on an ad-hoc basis, using mostly Gantt charts and informal techniques and tools. At that

time, two mathematical project-scheduling models were developed. The "Critical Path Method" (CPM) was

developed as a joint venture between DuPont Corporation andRemington Rand Corporation for managing

plant maintenance projects. And the "Program Evaluation and Review Technique" or PERT, was

developed by Booz Allen Hamilton as part of the United States Navy's (in conjunction with the Lockheed

Corporation) Polaris missile submarine program;[13] These mathematical techniques quickly spread into

many private enterprises.

PERT network chart for a seven-month project with five milestones

At the same time, as project-scheduling models were being developed, technology for project cost

estimating, cost management, and engineering economics was evolving, with pioneering work by Hans

Lang and others. In 1956, the American Association of Cost Engineers (now AACE International; the

Association for the Advancement of Cost Engineering) was formed by early practitioners of project

management and the associated specialties of planning and scheduling, cost estimating, and cost/schedule

control (project control). AACE continued its pioneering work and in 2006 released the first integrated

process for portfolio, program and project management (Total Cost Management Framework).

The International Project Management Association (IPMA) was founded in Europe in 1967,[14] as a

federation of several national project management associations. IPMA maintains its federal structure today

and now includes member associations on every continent except Antarctica. IPMA offers a Four Level

Certification program based on the IPMA Competence Baseline (ICB).[15] The ICB covers technical,

contextual, and behavioral competencies.

In 1969, the Project Management Institute (PMI) was formed in the USA.[16] PMI publishes A Guide to the

Project Management Body of Knowledge (PMBOK Guide), which describes project management practices

that are common to "most projects, most of the time." PMI also offers multiple certifications.

[edit]Approaches

There are a number of approaches to managing project activities including lean, iterative, incremental, and

phased approaches.

Regardless of the methodology employed, careful consideration must be given to the overall project

objectives, timeline, and cost, as well as the roles and responsibilities of all participants and stakeholders.

[edit]The traditional approach

A traditional phased approach identifies a sequence of steps to be completed. In the "traditional approach",

five developmental components of a project can be distinguished (four stages plus control):

Typical development phases of an engineering project

1. initiation

2. planning  and design

3. execution and construction

4. monitoring and controlling systems

5. completion

Not all projects will have every stage, as projects can be terminated before they reach completion. Some

projects do not follow a structured planning and/or monitoring process. And some projects will go through

steps 2, 3 and 4 multiple times.

Many industries use variations of these project stages. For example, when working on a brick-and-mortar

design and construction, projects will typically progress through stages like pre-planning, conceptual

design, schematic design, design development, construction drawings (or contract documents), and

construction administration. In software development, this approach is often known as the waterfall model,

[17] i.e., one series of tasks after another in linear sequence. In software development many organizations

have adapted the Rational Unified Process (RUP) to fit this methodology, although RUP does not require or

explicitly recommend this practice. Waterfall development works well for small, well defined projects, but

often fails in larger projects of undefined and ambiguous nature. The Cone of Uncertainty explains some of

this as the planning made on the initial phase of the project suffers from a high degree of uncertainty. This

becomes especially true as software development is often the realization of a new or novel product. In

projects where requirements have not been finalized and can change, requirements management is used

to develop an accurate and complete definition of the behavior of software that can serve as the basis for

software development.[18] While the terms may differ from industry to industry, the actual stages typically

follow common steps to problem solving—"defining the problem, weighing options, choosing a path,

implementation and evaluation."

[edit]PRINCE2

Main article: PRINCE2

The PRINCE2 process model

PRINCE2 is a structured approach to project management, released in 1996 as a generic project

management method.[19] It combined the original PROMPT methodology (which evolved into the PRINCE

methodology) with IBM's MITP (managing the implementation of the total project) methodology. PRINCE2

provides a method for managing projects within a clearly defined framework. PRINCE2 describes

procedures to coordinate people and activities in a project, how to design and supervise the project, and

what to do if the project has to be adjusted if it does not develop as planned.

In the method, each process is specified with its key inputs and outputs and with specific goals and

activities to be carried out. This allows for automatic control of any deviations from the plan. Divided into

manageable stages, the method enables an efficient control of resources. On the basis of close monitoring,

the project can be carried out in a controlled and organized way.

PRINCE2 provides a common language for all participants in the project. The various management roles

and responsibilities involved in a project are fully described and are adaptable to suit the complexity of the

project and skills of the organization.

[edit]PRiSM

Main article: PRiSM

PRiSM [20]  is a structured project management method developed to align organizational sustainability

initiatives with project delivery. By Design, PRiSM is a repeatable, practical and proactive methodology that

ensures project success while decreasing an organization's negative environmental impact.

The methodology encompasses the management, control and organization of a project with consideration

and emphasis beyond the project life-cycle and on the five aspects of sustainability. PRiSM is also used to

refer to the training and accreditation of authorized practitioners of the methodology who must undertake

accredited qualifications based on competency to obtain the GPM certification.[21]

[edit]Critical chain project management

Main article: Critical chain project management

Critical chain project management (CCPM) is a method of planning and managing project execution

designed to deal with uncertainties inherent in managing projects, while taking into consideration limited

availability of resources (physical, human skills, as well as management & support capacity) needed to

execute projects.

CCPM is an application of the Theory of Constraints (TOC) to projects. The goal is to increase the flow of

projects in an organization (throughput). Applying the first three of the five focusing steps of TOC, the

system constraint for all projects is identified as are the resources. To exploit the constraint, tasks on the

critical chain are given priority over all other activities. Finally, projects are planned and managed to ensure

that the resources are ready when the critical chain tasks must start, subordinating all other resources to

the critical chain.

The project plan should typically undergo resource leveling, and the longest sequence of resource-

constrained tasks should be identified as the critical chain. In some cases, such as managing contracted

sub-projects, it is advisable to use a simplified approach without resource leveling.

In multi-project environments, resource leveling should be performed across projects. However, it is often

enough to identify (or simply select) a single "drum". The drum can be a resource that acts as a constraint

across projects, which are staggered based on the availability of that single resource.

One can also use a "virtual drum" by selecting a task or group of tasks (typically integration points) and

limiting the number of projects in execution at that stage.

[edit]Event chain methodology

Main article: Event chain methodology

Event chain methodology is another method that complements critical path method and critical

chain project management methodologies.

Event chain methodology is an uncertainty modeling and schedule network analysis technique that is

focused on identifying and managing events and event chains that affect project schedules. Event chain

methodology helps to mitigate the negative impact of psychological heuristics and biases, as well as to

allow for easy modeling of uncertainties in the project schedules. Event chain methodology is based on the

following principles.

Probabilistic moment of risk: An activity (task) in most real-life processes is not a continuous

uniform process. Tasks are affected by external events, which can occur at some point in the middle of

the task.

Event chains: Events can cause other events, which will create event chains. These event chains

can significantly affect the course of the project. Quantitative analysis is used to determine a

cumulative effect of these event chains on the project schedule.

Critical events or event chains: The single events or the event chains that have the most

potential to affect the projects are the “critical events” or “critical chains of events.” They can be

determined by the analysis.

Project tracking with events: Even if a project is partially completed and data about the project

duration, cost, and events occurred is available, it is still possible to refine information about future

potential events and helps to forecast future project performance.

Event chain visualization: Events and event chains can be visualized using event chain

diagrams on a Gantt chart.

[edit]Process-based management

Main article: Process-based management

Also furthering the concept of project control is the incorporation of process-based management. This area

has been driven by the use of Maturity models such as the CMMI (capability maturity model integration;

see this example of a predecessor) and ISO/IEC15504(SPICE – software process improvement and

capability estimation).

[edit]Agile project management

Main article: Agile Project Management

Agile project management approaches based on the principles of human interaction management are

founded on a process view of human collaboration. This contrasts sharply with the traditional approach. In

the agile software development or flexible product development approach, the project is seen as a series of

relatively small tasks conceived and executed as the situation demands in an adaptive manner, rather than

as a completely pre-planned process.

[edit]Lean project management

Main article: Lean project management

Lean project management combines principles from lean manufacturing with agile project management, to

focus on delivering more value with less waste.

[edit]Extreme project management

Main article: Extreme project management

Planning and feedback loops inExtreme programming (XP) with the time frames of the multiple loops.

In critical studies of project management it has been noted that several PERT based models are not well

suited for the multi-project company environment of today.[citation needed] Most of them are aimed at very large-

scale, one-time, non-routine projects, and currently all kinds of management are expressed in terms of

projects.

Using complex models for "projects" (or rather "tasks") spanning a few weeks has been proven to cause

unnecessary costs and low maneuverability in several cases[citation needed]. Instead, project management

experts try to identify different "lightweight" models, such as Extreme Programmingand Scrum.

The generalization of Extreme Programming to other kinds of projects is extreme project management,

which may be used in combination with the process modeling and management principles of human

interaction management.

[edit]Processes

The project development stages[22]

Traditionally, project management includes a number of elements: four to five process groups, and a

control system. Regardless of the methodology or terminology used, the same basic project management

processes will be used. Major process groups generally include:[23]

initiation

planning or development

production or execution

monitoring and controlling

closing

In project environments with a significant exploratory element (e.g., research and development), these

stages may be supplemented with decision points (go/no go decisions) at which the project's continuation

is debated and decided. An example is thestage-gate model.

[edit]Initiating

Initiating process group processes[22]

The initiating processes determine the nature and scope of the project.[24] If this stage is not performed well,

it is unlikely that the project will be successful in meeting the business’ needs. The key project controls

needed here are an understanding of the business environment and making sure that all necessary

controls are incorporated into the project. Any deficiencies should be reported and a recommendation

should be made to fix them.

The initiating stage should include a plan that encompasses the following areas:

analyzing the business needs/requirements in measurable goals

reviewing of the current operations

financial analysis  of the costs and benefits including a budget

stakeholder analysis , including users, and support personnel for the project

project charter  including costs, tasks, deliverables, and schedule

[edit]Planning and design

After the initiation stage, the project is planned to an appropriate level of detail (see example of a flow-

chart).[22] The main purpose is to plan time, cost and resources adequately to estimate the work needed

and to effectively manage risk during project execution. As with the Initiation process group, a failure to

adequately plan greatly reduces the project's chances of successfully accomplishing its goals.

Project planning generally consists of[25]

determining how to plan (e.g. by level of detail or rolling wave);

developing the scope statement;

selecting the planning team;

identifying deliverables and creating the work breakdown structure;

identifying the activities needed to complete those deliverables and networking the activities in

their logical sequence;

estimating the resource requirements for the activities;

estimating time and cost for activities;

developing the schedule;

developing the budget;

risk planning;

gaining formal approval to begin work.

Additional processes, such as planning for communications and for scope management, identifying roles

and responsibilities, determining what to purchase for the project and holding a kick-off meeting are also

generally advisable.

For new product development projects, conceptual design of the operation of the final product may be

performed concurrent with the project planning activities, and may help to inform the planning team when

identifying deliverables and planning activities.

[edit]Executing

Executing process group processes[22]

Executing consists of the processes used to complete the work defined in the project plan to accomplish

the project's requirements. Execution process involves coordinating people and resources, as well as

integrating and performing the activities of the project in accordance with the project management plan.

The deliverables are produced as outputs from the processes performed as defined in the project

management plan and other frameworks that might be applicable to the type of project at hand.

[edit]Monitoring and controlling

Monitoring and controlling process group processes[22]

Monitoring and controlling consists of those processes performed to observe project execution so that

potential problems can be identified in a timely manner and corrective action can be taken, when

necessary, to control the execution of the project. The key benefit is that project performance is observed

and measured regularly to identify variances from the project management plan.

Monitoring and controlling includes:[26]

Measuring the ongoing project activities ('where we are');

Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and

the project performance baseline (where we should be);

Identify corrective actions to address issues and risks properly (How can we get on track again);

Influencing the factors that could circumvent integrated change control so only approved changes

are implemented.

In multi-phase projects, the monitoring and control process also provides feedback between project

phases, in order to implement corrective or preventive actions to bring the project into compliance with the

project management plan.

Project maintenance is an ongoing process, and it includes:[23]

Continuing support of end-users

Correction of errors

Updates of the software over time

Monitoring and controlling cycle

In this stage, auditors should pay attention to how effectively and quickly user problems are resolved.

Over the course of any construction project, the work scope may change. Change is a normal and

expected part of the construction process. Changes can be the result of necessary design modifications,

differing site conditions, material availability, contractor-requested changes, value engineering and impacts

from third parties, to name a few. Beyond executing the change in the field, the change normally needs to

be documented to show what was actually constructed. This is referred to as change management. Hence,

the owner usually requires a final record to show all changes or, more specifically, any change that

modifies the tangible portions of the finished work. The record is made on the contract documents –

usually, but not necessarily limited to, the design drawings. The end product of this effort is what the

industry terms as-built drawings, or more simply, “as built.” The requirement for providing them is a norm in

construction contracts.

When changes are introduced to the project, the viability of the project has to be re-assessed. It is

important not to lose sight of the initial goals and targets of the projects. When the changes accumulate,

the forecasted result may not justify the original proposed investment in the project.

[edit]Closing

Closing process group processes.[22]

Closing includes the formal acceptance of the project and the ending thereof. Administrative activities

include the archiving of the files and documenting lessons learned.

This phase consists of:[23]

Project close: Finalize all activities across all of the process groups to formally close the project or

a project phase

Contract closure: Complete and settle each contract (including the resolution of any open items)

and close each contract applicable to the project or project phase.

[edit]Project controlling and project control systems

Project controlling should be established as an independent function in project management. It implements

verification and controlling function during the processing of a project in order to reinforce the defined

performance and formal goals.[27] The tasks of project controlling are also:

the creation of infrastructure for the supply of the right information and its update

the establishment of a way to communicate disparities of project parameters

the development of project information technology based on an intranet or the determination of a

project key performance index system (KPI)

divergence analyses and generation of proposals for potential project regulations[28]

the establishment of methods to accomplish an appropriate the project structure, project workflow

organization, project control and governance

creation of transparency among the project parameters[29]

Fulfillment and implementation of these tasks can be achieved by applying specific methods and

instruments of project controlling. The following methods of project controlling can be applied:

investment analysis

cost–benefit analyses

value benefit Analysis

expert surveys

simulation calculations

risk-profile analyses

surcharge calculations

milestone trend analysis

cost trend analysis

target/actual-comparison[30]

Project control is that element of a project that keeps it on-track, on-time and within budget.[26] Project

control begins early in the project with planning and ends late in the project with post-implementation

review, having a thorough involvement of each step in the process. Each project should be assessed for

the appropriate level of control needed: too much control is too time consuming, too little control is very

risky. If project control is not implemented correctly, the cost to the business should be clarified in terms of

errors, fixes, and additional audit fees.

Control systems are needed for cost, risk, quality, communication, time, change, procurement, and human

resources. In addition, auditors should consider how important the projects are to the financial statements,

how reliant the stakeholders are on controls, and how many controls exist. Auditors should review the

development process and procedures for how they are implemented. The process of development and the

quality of the final product may also be assessed if needed or requested. A business may want the auditing

firm to be involved throughout the process to catch problems earlier on so that they can be fixed more

easily. An auditor can serve as a controls consultant as part of the development team or as an independent

auditor as part of an audit.

Businesses sometimes use formal systems development processes. These help assure that systems are

developed successfully. A formal process is more effective in creating strong controls, and auditors should

review this process to confirm that it is well designed and is followed in practice. A good formal systems

development plan outlines:

A strategy to align development with the organization’s broader objectives

Standards for new systems

Project management policies for timing and budgeting

Procedures describing the process

Evaluation of quality of change

[edit]Topics

[edit]Project managers

A project manager is a professional in the field of project management. Project managers can have the

responsibility of the planning, execution, and closing of any project, typically relating to construction

industry, engineering, architecture, computing, and telecommunications. Many other fields in the production

engineering and design engineering and heavy industrial have project managers.

A project manager is the person accountable for accomplishing the stated project objectives. Key project

management responsibilities include creating clear and attainable project objectives, building the project

requirements, and managing the triple constraint for projects, which is cost, time, and scope.

A project manager is often a client representative and has to determine and implement the exact needs of

the client, based on knowledge of the firm they are representing. The ability to adapt to the various internal

procedures of the contracting party, and to form close links with the nominated representatives, is essential

in ensuring that the key issues of cost, time, quality and above all, client satisfaction, can be realized.

[edit]Project management triangle

The project management triangle

Like any human undertaking, projects need to be performed and delivered under certain constraints.

Traditionally, these constraints have been listed as "scope," "time," and "cost".[1] These are also referred to

as the "project management triangle", where each side represents a constraint. One side of the triangle

cannot be changed without affecting the others. A further refinement of the constraints separates product

"quality" or "performance" from scope, and turns quality into a fourth constraint.

The time constraint refers to the amount of time available to complete a project. The cost constraint refers

to the budgeted amount available for the project. The scope constraint refers to what must be done to

produce the project's end result. These three constraints are often competing constraints: increased scope

typically means increased time and increased cost, a tight time constraint could mean increased costs and

reduced scope, and a tight budget could mean increased time and reduced scope.

The discipline of project management is about providing the tools and techniques that enable the project

team (not just the project manager) to organize their work to meet these constraints.

[edit]Work breakdown structure

The work breakdown structure (WBS) is a tree structure that shows a subdivision of effort required to

achieve an objective—for example a program, project, and contract. The WBS may be hardware-, product-,

service-, or process-oriented (see an example in a NASA reporting structure (2001)).[31]

A WBS can be developed by starting with the end objective and successively subdividing it into

manageable components in terms of size, duration, and responsibility (e.g., systems, subsystems,

components, tasks, subtasks, and work packages), which include all steps necessary to achieve the

objective.[18]

The work breakdown structure provides a common framework for the natural development of the overall

planning and control of a contract and is the basis for dividing work into definable increments from which

the statement of work can be developed and technical, schedule, cost, and labor hour reporting can be

established.[31]

[edit]Project management framework

The Program (Investment) life cycle integrates the project management and system development life

cycles with the activities directly associated with system deployment and operation. By design, system

operation management and related activities occur after the project is complete and are not documented

within this guide[22] (see an example of an IT project management framework).

For example, see figure, in the US United States Department of Veterans Affairs (VA) the program

management life cycle is depicted and describe in the overall VA IT PROJECT MANAGEMENT

FRAMEwork to address the integration of OMB Exhibit 300 project (investment) management activities and

the overall project budgeting process. The VA IT Project Management Framework diagram illustrates

Milestone 4 which occurs following the deployment of a system and the closing of the project. The project

closing phase activities at the VA continues through system deployment and into system operation for the

purpose of illustrating and describing the system activities the VA considers part of the project. The figure

illustrates the actions and associated artifacts of the VA IT Project and Program Management process.[22]