Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
R EFERENCE B OOK
Version 2014
Holcim Technology Ltd
INN - Knowledge Management
Holderbank, Switzerland
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PMA Reference Book
TABLE OF CONTENTS
1 Introduction 3
4 Glossary 37
5 Appendix A:
How the 5 Phases and the corresponding steps are interrelated 41
7 Bibliography 45
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PMA Reference Book
1 Introduction
Purpose
This Book provides a detailed insight of the Holcim Project Management Approach (PMA).
It serves as a reference in the application of PMA.
Target Audience
This Reference Book has been written to support Holcim employees regularly involved in pro-
jects (especially project managers) who have been introduced to the Holcim PMA through at
least one training session.
Applicability
The PMA defines the generic methodology to be applied in all projects managed by Holcim
employees. The PMA is defined by 5 phases with 25 underlying steps. Whatever size and
contents a project may have, it will always go through the 5 phases. Only the level of detail
when using the PMA differs as the complexity of projects varies (see paragraph 2.4)
Structure
This Reference Book:
• explains the 5 phases defined within the PMA (see chapter 2)
• provides a detailed explanation of all 25 steps within the 5 phases (see chapter 3)
• explains the objective and benefits of each step
• helps with the application through practical procedures, review questions and tips for use
• includes a glossary to explain terms used within the PMA (see chapter 4)
What is a Project?
A project is a temporary endeavor undertaken to produce a unique product, service or result:
• With defined start and end dates
• Is always different from other projects even if some common elements are repeated
• Is unique, there are always uncertainties about products, costs, time, etc.
• Since a project is typically new to a team, it needs more planning than routine work
• Typically involves several people across different businesses and levels
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Projects are the key mechanism to improve a business. When companies need to achieve
specific goals, they typically start projects. All business plans of Holcim Group Companies
display the key projects to be implemented to achieve the expected business goals. After be-
ing identified, a project is developed and implemented so that at its end, the delivered product
or service allows the client achieve the business goals.
Over the last few years Holcim Group Support Ltd. has developed specific extensions to PMA
for Capex projects. In the cement business, the approach is called ProMap. More details can
be found in the Holcim Portal under “Business Tools – CAPEX / ProMap”. In the Aggregates
and Construction Materials business, the approach is called ACMPro, and it is divided into
AggPro (for Aggregates projects), RMXPro (for RMX projects) and AspPro (for Asphalt pro-
jects). These can be found in the Portal under “Group – Functional Areas – Aggregates and
Construction Materials – Investment Support / ACMPro”.
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PMA Reference Book
The M I SSI O N of this Reference Book is to support Holcim employees in the under-
standing and constant application of the PMA. The objective of the PMA lies within the
creation of a common language that provides the Group with a logical and practical ap-
proach in the area of project management. Explicit integration of the search for
knowledge already available at the start of a project and the transfer of gained
knowledge at the end contribute to the objectives of becoming a faster learning organiza-
tion.
Consistent use of the PMA results in a number of substantial BENE FI TS for the
current project as well as for future ones, e.g.:
• All relevant stakeholders are explicitly involved
• Project deliverables are precisely defined and accepted by the Client
• Relevant risks/opportunities and countermeasures are considered
• Project progress is reviewed regularly to ensure that schedule, budget and delivera-
bles meet the objectives
• The approach focuses on teamwork and cross-functional communication
• Project communication becomes easier throughout the Holcim Group
• Transfer of lessons learned from one project to other projects
Within each individual phase, a number of steps are defined. These steps serve as a
systematic easy-to-use checklist to guide the project team through the project life cycle.
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Objective
The objective of this phase is to build a relationship with the Client and to really under-
stand his objectives. Another objective is to gather sufficient information to ensure that
the project is properly defined and that it is realizable and acceptable for the project
team.
Steps
• Assessment of initial situation for details see page 12
• Stakeholder analysis for details see page 12
• Search for lessons learned for details see page 14
• Definition of product or service (deliverables) for details see page 15
• Milestone schedule for details see page 16
• Outline project organization for details see page 17
• Estimation of project costs & benefits for details see page 18
• Risk identification & countermeasures for details see page 19
• Agreement with the Client for details see page 20
During this phase it is important to be explicitly clear to the Client and the project team
not only on what will be within the definition of the project, but also on what will not be
realized in this project. In order to offer the best possible proposition one will have to
address the assumptions made by the Client and by the project team.
There can be several meetings on the project definition (depending on the project size) in
order to agree and share a common understanding on all the necessary details. The first
meeting is between the Client and project manager (preferably with a PMA trainer) to
have an initial discussion about the initial situation, project deliverables, team composi-
tion and time constraints. The project manager initiates this meeting.
The objective of project planning is to detail the project as outlined during the definition
phase in terms of the tasks that are to be planned and costs that are involved. Further-
more, a communication plan has to be established. The purpose of all these steps is to
give as complete a description as possible on the way of working during the other phas-
es of the project.
Steps
• Project team set-up for details see page 21
• Project Schedule for details see page 22
• Communication plan for details see page 23
• Project Budget for details see page 24
• Project kick-off for details see page 25
Since the project team must be able to start delivering the defined product or service at
the end of this phase, everybody has to fully understand and be committed to the project.
One has to fully understand how communication and reviews will be handled, where
documents will be stored, what tasks are to be fulfilled to reach the milestones, and how
the various tasks interact. If required, the project team will have to be trained before en-
gaging on the project.
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Steps
• Activity list for details see page 26
• Project review (within team) for details see page 27
• Capture of knowledge for details see page 28
• Project Status Report for details see page 29
• Client/Steering Group review for details see page 30
To deliver the product or service, issues need to be discussed openly within the team and
the Client/Steering Group during review meetings. Changes to the project definition or
project planning have to be made in accordance with the mechanism for handling chang-
es which is part of the project definition. In addition, it is important to capture knowledge
during the realization of the project to generate the necessary input for phase V.
This phase focuses on handing over the product or service that has been defined during
Phase I (Project Definition). It must be absolutely clear that after the project completion
phase, the Client (and his/her organization) is fully responsible for sustaining and main-
taining the product or service that has been delivered by the project team. Any outstand-
ing actions aside from the activities within Phase V will have to be explicitly documented
and agreed upon during handover (Step 1).
Learning can be derived from various aspects such as the contents of the project (e.g.
technical aspects) or the process one has gone through (way of working). Both the output
of knowledge gained during the realization as well as the output of “After Action Review”
will be integrated in the learning summary.
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2.3 Dependenci Frequently - especially in larger projects - specific complex tasks are handled as sub-
es projects. Such a sub-project will follow its own 5-phase approach, having its own Client,
between project team, etc. Therefore, a situation may arise where several related projects apply the
projects PMA in parallel.
Overall
OverallProject
Project
Phase I Phase II Phase III Phase IV Phase V
Phase I Phase II Phase III Phase IV Phase V
Project Project Project Project Project
Project Project Pr oject Project Project
Evaluation
Definition Planning Realization Completion
Definition Planning Realization Completion & Evaluation
Transfer
& Transfer
Sub-
Sub-Project
Sub-Project
The project manager and the team responsible for the sub-project will apply the PMA in
their sub-project. The responsibility to apply the PMA to the overall project will remain with
the project manager responsible for the overall project.
It is important that sub-projects are aligned with the overall project in order to achieve the
overall objectives.
2.4 Level of Following the principles of all PMA phases and all steps rigidly and consistently is key to
detail when get the benefits from the approach. However, since no single project is fully identical to
using PMA another, project managers have to check to what level of detail the steps of the 5 phases
need to be applied. Therefore the expression “rigid principles, flexible application” is creat-
ed. This expression means that while it is mandatory to follow all the phases and steps for
each project, compliance e.g. to the documentation and frequency of review meetings may
vary from one project to another. The more complex a project is, the more detail should be
used in the application of the PMA.
To help project managers in determining the level of detail in the application of the PMA to
1
their specific project, three project categories are outlined:
A. Project of high complexity: the answer to 4 to 6 questions can be “yes”
B. Project of medium complexity: the answer to 2 to 3 questions can be “yes”
C. Project of low complexity: the answer to 0 to 2 questions can be “yes”
1. Are project costs in excess of 50,000 USD? 5. Do we have little or no experience in creating
2. Does project duration exceed 3 months? the desired product or service?
3. Are there more than three people involved in the 6. Would any project failure have a strong negative
project team (including the project manager)? impact on the project team /
organization?
4. Are the Client’s expectations towards the project
unclear?
1
It is not possible to make the categorization of the level of detail in a fully precise way hence the suggestions
should be combined use, according to the rules of common sense.
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For each category, the level of detail when applying the PMA is indicated in the table on the next page. The
table contains all 25 steps and an indication of the level of detail suggested for the three project categories.
Phase Step A B C
Phase I: Assessment of Initial Situation.
Milestone schedule
Communication plan
Project Budget
Project kick-off
Phase III: Activity list
Capture of knowledge
Closing meeting
Phase V: After Action Review (AAR)
Full compliance Project documentation must be available to demonstrate that all aspects of
the steps are taken into consideration
Partial compliance Project documentation must be available to demonstrate that relevant as-
pects of the step are taken into consideration
Limited compliance No project documentation is required; one only needs to be aware of the
step
PMA Reference Book
The graph below gives an overview of all steps. In the appendix a graph is included showing how all steps are connected with one another.
1. Assessment of initial situ- 1. Project team set-up 1. Activity list 1. Hand-over 1. After Action Review
ation 2. Project Schedule 2. Project review 2. Final report (AAR)
2. Stakeholder analysis 3. Communication plan (within team) 3. Closing meeting 2. Learning summary
3. Search for lessons 4. Project Budget 3. Capture of knowledge 3. Knowledge transfer
learned 4. Project status report
5. Project kick-off
4. Definition of product or 5. Client/Steering Group
service (deliverables) review
5. Milestone schedule
6. Outline project organiza-
tion
7. Estimation of project
costs & benefits
8. Risk identification & eval-
uation
9. Agreement with the Client
PMA Reference Book
OBJECTIVE The objective of this step is to arrive at a common understanding of the Project Definition by
AND giving a structured explanation of the Client’s initial situation. This will help in getting a clear
BENEFITS picture of the Client’s reasons for starting the project. The assessment of the initial situation
ensures that the Client’s real motives for initiating the project are made fully transparent and
understood by the project team in order to proceed with the project definition.
2. Find out the root causes (current or past issues, business risks or opportunities) of the Cli-
PROCEDURE ent’s decision to initiate the project
FOR USE
3. Together with the Client, define SMART business objectives that are to be achieved through
the project (link the objectives clearly to the overall business objectives)
4. Agree on the mission assigned to the project team to meet the business objectives (bounda-
ry/scope of the project). A mission is a statement of what the project team is going to do to
achieve the defined objectives.
5. Capture, review and agree on the outcome with the Client and document in the templates.
• Has the project team discussed the root causes, business objectives and mission together
with the Client?
REVIEW
• Are root causes based on facts resulting from previous analysis?
QUESTIONS
• Do the Client and project team have a clear and common understanding of the overall busi-
ness objectives of the project?
• Do the business objectives of the project contribute to reach the overall company objec-
tives?
• Does the mission (scope statement) clearly describe the assignment the project team will
carry out throughout the project life cycle?
OBJECTIVE The objectives of this step are to identify the project’s stakeholders, to understand their level of
AND interest and influence on the project, to find out their specific interests and to agree on
BENEFITS measures to be taken in order to incorporate those to the project. Stakeholder analysis helps
gain buy-in by directly involving the stakeholders in the project. It forces thinking around issues
that might impact the project (positively or negatively) and make these explicit with the Client. It
ensures the project manager; team members and the Client have a common view on the pro-
ject environment.
1. Identify the relevant stakeholders with the Client (also include third parties, e.g. environmen-
tal organizations, the government, etc.)
2. Categorize stakeholders depending on the level of influence they have on the project’s re-
PROCEDURE sults, and the level of interest they have on the project execution and/or deliverables (High,
FOR USE Medium, Low)
3. Contact important stakeholders to find out their interests (needs, requirements and expecta-
tions) in the project
• Have all stakeholders who have an interest in our project been identified?
REVIEW • Have important stakeholders been asked about their interest in the project?
QUESTIONS
• Have corresponding measures been taken to incorporate stakeholders' interests in the pro-
ject?
Cross-reference
The stakeholder analysis provides input for:
- Definition of the product or service (3.1.4 page 15)
- Project schedule (3.2.2 page 22)
- Communication plan (3.2.3 page 23)
- Risk identification and countermeasures (3.1.8 page 19)
PMA Reference Book
OBJECTIVE The objective of this step is to ensure that lessons learned from previous projects are taken into
AND account. Using these lessons learned to make decisions about the project content or the man-
BENEFITS agement of the project will help you improve your project in terms of time, cost and/or quality.
1. Identify the relevant stakeholders with the Client (also include third parties, e.g. environ-
mental organizations, the government, etc.)
PROCEDURE 2. Find out similar projects within and outside the company. Identify these projects, where
FOR USE these were carried out, and the names of project managers and/or Clients
3. Find out lessons learned from similar or any other projects applicable to this project
4. List all source of potential information (experienced people, literature, the Holcim Portal,
etc)., to search for similar experiences and/or lessons learned
6. Determine which experiences/lessons learned will be integrated into the project (and
how/where), as well as which ones you are not going to integrate into your project
7. Review the lessons learned throughout the project life cycle in order to use them at the ap-
propriate moment
• Have all stakeholders who have an interest in our project been identified?
REVIEW • Have both internal (e.g. databases, similar projects) and external sources been used in the
search for lessons learned?
QUESTIONS
• Have the owners (sources) of lessons learned been interviewed to gather more infor-
mation?
• Have decisions been made based on the lessons learned?
Cross-reference
The search for lessons learned provides input
to all other aspects of the project definition, as
well as the other phases of the project. It is not
a one-time event; it should be a continuous
activity throughout the project life cycle
PMA Reference Book
OBJECTIVE The objective of this step is to agree on the product or service to be delivered by the project
AND team, in order to achieve the expected business objectives. Creating a “SMART” product (Spe-
BENEFITS cific, Measurable, Attainable, Relevant, situated in Time) makes the project easier to control at
a later stage. Finally, the criteria to measure the overall project success should be defined. A
detailed, complete list of deliverables and specifications is crucial for successful project com-
pletion
1. Together with the Project Client and Team, recall the project mission (defined in the as-
sessment of the initial situation)
PROCEDURE 2. Describe the product or service the project team needs to deliver to achieve this mission,
FOR USE making the defined product or service SMART
3. Describe “quality” specifications, time and / or cost constraints as these will have an impact
on the team’s capability to deliver the product or service
4. Identify, document and validate all assumptions made during the definition and planning
phases of the project as well as the special conditions required by the team
5. Present the definition of the product or service to important stakeholders (if Client agrees)
and incorporate their requirements
6. Agree on the final version of the definition of the product or services with the Client
• Do the Client and project team have a clear and common understanding on the delivera-
bles of the project?
• Are the products or services defined in a SMART manner?
REVIEW • Do the defined deliverables contribute to the achievement of project objectives?
QUESTIONS • Have all assumptions and/or special conditions been understood and accepted by the Cli-
ent and project team?
• Do the Client and the project team agree on the criteria to measure project success (OPS)?
OBJECTIVE The objective of this step is to define the milestones that need to be achieved in order to de-
AND BENEFITS liver the agreed product or service. Once the product or service is defined, the milestone
schedule shows how it will be accomplished. Identifying intermediate results helps in moni-
toring the project’s progress. SMART milestones (specific, measurable, attainable, relevant,
situated on time) make the project easier to control at any stage. The definition of the mile-
stones allows a first estimation of resources needed for the project. Defining the milestones
makes it possible to set up a more detailed project schedule and activity list in the succeed-
ing phases of the project.
PROCEDURE 3. Make the due dates of the milestones visible by putting them into a milestone schedule.
FOR USE 4. Discuss and agree on the time frames needed with the project team.
• Does the milestone schedule clearly reflect the sequence of major achievements
throughout the project life?
REVIEW
QUESTIONS • Do the defined milestones enable the Client to monitor progress against time?
• Are the milestones fully understood and agreed on by the Client and project team?
• Are the milestones described as the start or the end of a number of tasks?
Cross-reference
The milestones & the milestone schedule are input for the:
- Agreement with the Client (3.1.9, page 20)
- Project schedule (3.2,2 page 22)
PMA Reference Book
OBJECTIVE The objective of this step is to create the project organizational chart, defining the roles and re-
AND sponsibilities of the persons involved in the project. Additionally, the document flow, and meet-
BENEFITS ing schedule should be agreed on, to facilitate coordination among team members and Cli-
ent/Steering Group. A clear definition of responsibilities and authority reduces conflicts and
helps collaboration among people involved in the project.
5. State the time dedication of each team member; consider other commitments, planned hol-
idays, training, etc.
6. Obtain the agreement of superiors on each team member’s time dedication in the project.
7. Discuss the organizational chart with the Client and the project team
8. Outline, discuss and agree on the document flow and meeting schedule. Clarify how inter-
actions with the Steering Group (including Client) will take place.
• Have all roles of team members (including responsibilities, time dedication and authorities)
been defined and agreed within the team?
REVIEW • Have all roles of team members (including responsibilities, time dedication and authorities)
QUESTIONS been agreed with all functional managers?
• Are all project meetings and documents defined and agreed within the team and the Cli-
ent?
Cross-reference
The outline of the project organization provides input for the:
- Definition of the milestone schedule (3.1.5 page 16)
- Estimation of projects costs & benefits (3.1.7 page 18)
- Agreement with the Client (3.1.9 page 20)
- Project team set-up (3.2.1 page 21)
PMA Reference Book
OBJECTIVE The objective of this step is to estimate project costs in order to compare this with the Client’s
AND cost constraint (step 1.4). It gives a first insight into the feasibility of the project taking costs and
BENEFITS benefits into consideration. Calculating project returns helps the Project Client and Manager
get approval to proceed with the project.
PROCEDURE 2. Make an estimate of all costs like material (varies from building materials to communication
materials, etc.), expenses (travelling, etc.), third party assistance (subcontractors), etc.
FOR USE
3. Estimate the level of accuracy of each estimate, and establish a contingency shall there be
risks in the estimate.
4. Discuss and agree on the costs within the project team
5. Identify and quantify the benefits of the project to calculate payback time, NPV, etc.
• Have the estimated project costs been broken down according to the main cost compo-
REVIEW nents?
QUESTIONS • Have the estimated benefits and payback time been considered?
• Have non-monetary benefits been discussed and identified?
Cross-reference
Project costs are input for:
- Agreement with the Client (3.1.9 page 20)
- Project budget (3.2.4 page 24)
PMA Reference Book
OBJECTIVE The first objective is to consider the risks that may influence the project. Risks typically have a
AND negative effect on a project; however there could be risks with a positive effect (opportunities).
BENEFITS At this early stage of the project, there is still a degree of freedom to modify project parameters
in order to minimize the risks. The second objective is to establish the framework for systematic
risk management throughout the project. This allows an integration of the Holcim standardized
approach to business risk management in order to align views on risk profile and mitigating ac-
tions.
1. Review the product, specifications, assumptions, stakeholders, milestones, costs and organ-
ization to identify possible risks that may lead to unsuccessful completion of the project, Also
look at risks that occurred in past projects (lessons learned). Finally, consider doing a brain-
PROCEDURE storm to complete the risk identification.
FOR USE 2. Quantify the risks according to their impact on the project and their likelihood of occurrence
(probability that the risk will happen). Prepare a risk map if useful.
3. Focus on the high severity risks; these are the ones with a high significance and a high like-
lihood. The risk threshold should be defined by the project team and Client.
4. For each of the identified risks with a high severity, come up with a proposed countermeasure.
5. Assign persons responsible and due dates to tackle the proposed countermeasures
• Have all project team members considered possible risks within their area of responsibility?
REVIEW
QUESTIONS • Have countermeasures been agreed to treat high severity risks or to realize the opportuni-
ties?
• Has a responsible been assigned for each proposed countermeasure?
• Has a responsible been assigned for each proposed countermeasure?
• Has the Client been involved in the risk analysis?
OBJECTIVE The objective of this step is to get the Client’s formal approval to launch the project. This ap-
AND proval is based on all aspects of the project definition. The sign-off by the Client ensures
BENEFITS his/her full commitment to the definition made. This agreement prevents misunderstandings
(between the project team and the Client) on the project contents. The agreement also demon-
strates shared vision among the team, the Client and senior/top management.
• Have the Client and project team agreed on the outcomes of each step in phase I?
REVIEW
• Have all steps of phase I been completed before signing the agreement?
QUESTIONS
• Has the agreement been signed by both the project manager and the Client?
Cross-reference
The agreement with the Client enables further work
in the next phase - Project planning (3.2, page 21).
PMA Reference Book
OBJECTIVE The first objective of this step is to complete the project organization as outlined during the pro-
AND ject definition (see 3.1.6, page 17), with all the names of the people involved including the
BENEFITS roles, responsibilities and authorities. The second objective is to start the team building pro-
cess; an important part of this is to create awareness on each team member’s tendency to con-
tribute to the team as well as how to relate with other team members.
1. Define additional persons who will be part of the team: complete the roles and responsibili-
ties template (following the procedure)
PROCEDURE 2. Ensure that new team members understand the project definition as well as their specific
FOR USE roles in the team.
3. Explain the importance of having an efficient team, and of starting the team building pro-
cess
4. Use available in the company personality tests (eg., team roles of Belbin, conflictology,
etc). Ask your local human resources functions to support you in assessments and result
interpretation.
5. Prepare responsibility assignment matrix (RACI-based). It is a grid to show which project
resources as well as stakeholders are assigned to what project activity and in what role.
6. Agree on team norms to speed up team building process.
• Have all project team members been made aware of the project definition and their role in
it?
REVIEW
• Is responsibility assignment matrix prepared and agreed on by the team and rele-
QUESTIONS vant stakeholders?
• Is the entire project aware of the roles and authorities individually and as a team?
• Have team norms been discussed and agreed within the team?
Cross-reference
The project team set-up provides input for:
- Outline project organization (3.1.6 page 17)
- Risk identification and evaluation (3.1.8 page 20)
- Project kick-off (3.2.5 page 25)
PMA Reference Book
OBJECTIVE The objective of this step is to detail the agreed milestone schedule by describing the tasks
AND needed to reach the milestones. The project schedule provides the team with a control tool that
BENEFITS shows all the tasks to be done including their interdependencies. Understanding which tasks
are in the “critical path” (= sequence of tasks that determines the earliest possible finish date of
the project) enables a more focused project control during the realization phase.
5. Determine the end date of each task and draw a bar (or Gantt) chart
6. Determine the critical path to check whether additional measures are needed to finish the
project on time
NOTE: You may include major risk countermeasures and communication actions in the project
schedule
• Are all tasks in the project defined in a clear and concise manner?
REVIEW • Are all the tasks needed to achieve the milestones agreed upon with person responsible to get
QUESTIONS them done?
• Have all interdependencies, durations and due dates been agreed by the project team?
• Has the schedule been discussed with external parties (if any) to incorporate delivery times
and external constraints?
• Have all pending actions in phase I (search for lessons learned, risks, etc.) been in-
cluded in the project schedule?
• Are all team members aware of the critical path of the project?
• Have all steps from phases IV and V been included in the project schedule?
Cross-reference
The project schedule provides input for:
- Project budget (3.2.4, page 24)
- Risk identification and evaluation (3.1.8 page 19)
- Project kick-off (3.2.5, page 25)
- Activity lists (3.3.1, page 26)
PMA Reference Book
OBJECTIVE The objective of the communication plan is to ensure that appropriate communication with key
AND stakeholders takes place at the right times, in order to proactively manage stakeholders’ expec-
BENEFITS tations. This will secure their involvement and continuous buy-in towards the project and avoid
unpleasant surprises in the future due to a lack of communication. Another objective is to de-
fine a contact list to be shared by all team members in order to facilitate communication within
team and with stakeholders
1. Retrieve the stakeholder analysis from phase I and highlight those with whom the project
team will communicate during the project life.
PROCEDURE
2. Define what has to be communicated to them.
FOR USE
3. Define how to communicate with those stakeholders taking into consideration the different
tools/media available.
4. Assign a person responsible for communication action and plan the frequency (or dates)
when communication will be carried out.
5. Establish a contact list by filling in the contact list template.
• Have communication actions been defined for the key stakeholders (high or medium level
of interest and/or influence)?
REVIEW • Will the subject of communication (what to communicate) and the manner of communi-
QUESTIONS cating (how to communicate) effectively engage the stakeholders?
• Does the contact list include information on all team members and stakeholders of the pro-
ject?
Cross-reference
The communication plan provides input for:
- Project schedule (3.2.2, page 22)
- Project kick-off (3.2.5, page 25)
- Activity list (3.3.1, page 26)
- Project review (3.3.2, page 27)
- Steering Group review (inc. Client) (3.3.5, page 30)
PMA Reference Book
OBJECTIVE The objective of this step is to plan in detail the costs to be incurred during the project and when
AND these costs will occur. It is an aggregation of the estimated cost of the individual activities and
BENEFITS work The project budget enables the project team to compare actual costs versus the planned
costs (cost baseline) and take action if needed
1. Find out if budgeting procedures exist in your company. If these do not exist, use the tem-
plate provided.
PROCEDURE
2. Use the project schedule to break down the tasks into the various cost components needed
FOR USE to execute them
Cross-reference
The project budget provides input for:
- Project kick-off (3.2.5 page 25)
PMA Reference Book
OBJECTIVE The objective of the project kick-off is to conclude the planning phase and to ensure that all as-
AND pects are in place to start the realization phase. The kick-off meeting also helps in the process
BENEFITS of team building and maximizes the momentum to start the realization by creating common
commitment. Being one team with a shared understanding and commitment is especially im-
portant when the project faces problems during the realization phase
1. Invite the Project team and Client (and SG members, stakeholders if appropriate) to the
kick-off meeting.
PROCEDURE
2. During the meeting, get the Client to revisit key elements of the project with the team
FOR USE
3. Review and agree on the planning documents (project team setup, project schedule,
communication plan, project budget)
4. Review the team norms/ground rules
5. If needed, fine tune the project schedule, communication plan and risks identification and
countermeasures
6. Update and distribute the documents with the agreed changes (if any)
• Have all steps in phases I and II been completed before the kick off meeting?
REVIEW • Are the project team and Client (and/or Steering group and stakeholders) present during
QUESTIONS the kick off meeting?
• Are the participants committed to the project and agree to their roles and responsibilities in
the project?
Comment: The kick off meeting should create the right momentum to start realizing the product or service.
PMA Reference Book
OBJECTIVE The objective of this step is to establish the sequence of activities required to complete the
AND tasks set in the project schedule. .A detailed definition of activities and a clear assignment to
BENEFITS responsible persons will ensure proper coordination and control. The activity list is a time man-
agement tool for the project.
PROCEDURE 2. Break down the tasks from the project schedule into activities (including risk monitoring
and communication plan).
FOR USE
3. Agree on a responsible person, effective time needed to complete the activity and planned
due date.
4. Review and adjust the activity lists during the project review meeting
5. After completion of activities, record actual time spent, actual due date and comments if
needed.
6. Analyze deviations between the plan and actual durations and due dates, and agree on
actions.
• Have the project schedule tasks been broken down into detailed activities at the lowest
useful level for the upcoming period?
REVIEW
• Are activities issues proactively addressed to avoid project delays?
QUESTIONS
• Have actual hours spent and actual due dates been recorded to allow for review and
reporting?
• Does the project manager support the team members actively when issues arise during
the planning or execution of activities?
Cross-reference
The activity list provides input for project review (3.3.1 page 26)
PMA Reference Book
OBJECTIVE The objective of this step is to review all activities with the team in order to have proactive control
AND of project progress and to identify and address issues encountered. This requires a common un-
BENEFITS derstanding of the achievements in terms of costs, time spent and the quality of deliverables. Is-
sues need to be resolved by making a decision and/or defining an action. Project review is the
main control system for the project manager and the team.
1. Make sure all team members are prepared for the project review meeting (follow up on ac-
tions, identify issues, etc.)
PROCEDURE
2. During the meeting, analyze performance, on time, cost and deliverables.
FOR USE
3. Review and update the plan for the coming period (schedule of the succeeding few weeks)
8. Resolve issues, review and update the action and decision log.
9. Distribute the action and decision log to the agreed recipients within one day of the meeting.
10. Capture knowledge as it occurs (see next step) as part of the review meeting.
• Are regular project review meetings carried out as agreed in the outline project organization?
REVIEW • Are the project review meetings properly prepared, (agenda, invitation, etc.)?
QUESTIONS
• Is the project status reviewed and all review meeting documentation (schedule, budget, ap-
proved changes, action & decision log, etc.) updated to reflect current status?
• Is the project team making decisions proactively in to avoid any cost/time/quality deviations?
• Are communication actions as well as risk analysis and countermeasures regularly reviewed
during project review meetings?
• Are requested changes analyzed and agreed on formally with the client?
Cross-reference
• The project review meeting (within the team) provides input for:
- Capture of knowledge (3.3.3 page 28)
- Project status report (3.3.4 page 29)
PMA Reference Book
OBJECTIVE The objective of this step is to capture knowledge as it occurs. Knowledge can be captured af-
AND ter evaluating the progress of the project regarding budget, time and quality (in regular After
BENEFITS Action Reviews). Capturing knowledge immediately after the learning takes place ensures that
all important elements of the knowledge are understood. Furthermore, it makes Phase V of the
project (evaluation & transfer) much easier to conduct. This leads to a more efficient transfer of
knowledge
1. Hold regular After Action Reviews (AAR) of the project. This can be done as part of or in-
dependently of the project review meeting.
PROCEDURE 2. In the AARs, discuss what went well and what did not go so well. Analyze reason for the
FOR USE deviations/success and agree on the lessons learned: what should be done next time so
that success can be repeated and deviations can be avoided
3. Capture any lessons learned as soon as they occur.
4. Using the template, record the lessons learned from the last period
5. Decide, depending on the importance and impact of the lesson learned, whether
knowledge should be transferred immediately (through assigning an action for it during the
review meeting) or logged for review in phase V of the project.
• Are project evaluations (or AARs) carried out regularly to correct deviations and capture
REVIEW knowledge?
QUESTIONS • Are all lessons learned clearly defined and captured in order to be reviewed in phase V?
• If appropriate, are the key lessons learned transferred before the end of the project?
1 Doing regular After Action Review (AAR) after completing some of the larger and more important
tasks/milestones will help you not only to identify lessons learned but also to set the project on the
right track. For information on the AAR please refer to paragraph (3.5.1, page 56)
2 Openness regarding mistakes is a prerequisite for improvement and for the capture and transfer of
lessons learned
3 Knowing how quickly the lessons learned have to be distributed depends on certain criteria, e.g.
safety, impact on costs etc.
Cross-reference
Capture of knowledge provides input for the learning summary
(3.5.2 page 35)
PMA Reference Book
OBJECTIVE The objective of this step is to report to the Client (including the Steering Group) on the status
AND of the project as agreed upon in the outline project organization (documents and meetings). It
BENEFITS provides the Client with the information to actively work on his/her role. The project status re-
port ensures proper control for the project team, Client and Steering Group.
4. Use a traffic light colour system to indicate the status of the projects
• Does the project status report incorporate the outcomes of the project review meeting?
REVIEW • Does the project status report provide the right information for the Client and Steering
QUESTIONS Group to steer the project (review progress and provide support)?
• Are the project status reports regularly distributed among team members/Steering Group?
Cross-reference
The project status report provides input for the Steering Group review
(including Client) (3.3.5 page 30)
PMA Reference Book
OBJECTIVE The objective of this step is to formally review project progress together with the Client/Steering
AND Group as agreed in the outline project organization (documents and meetings). Regular re-
BENEFITS views with the Steering Group ensure that proper attention is given to the project environment
and its business context.
1. Prepare the agenda and contents of the meeting (include review of risks and communica-
tion plan)
PROCEDURE
2. Send (if any) the change request forms to be discussed during the meeting
FOR USE
3. If needed, pre-present to the individual Steering Group members and adapt contents on
the basis of feedback
4. During the meeting, review the status of the project, risks and countermeasures and com-
munication plan.
5. Log and summarize all actions and decisions agreed upon during the meeting
6. Distribute the action and decision log within a day of the meeting
• Are the meeting agenda and latest status report sent out in advance to the Client /all SG
members?
REVIEW • Are all relevant issues discussed during the Client/SG meeting and corresponding actions
QUESTIONS & decisions recorded?
• Are the project communication plan and risk analysis reviewed and updated with the Cli-
ent/SG members?
• Are change requests being discussed and agreed with the Client?
1 Early planning and communication of Client/Steering Group meetings to the Client and all SG
members ensures that these meetings are efficient and effective
2 Topics outside the scope of the meeting should be set aside and addressed in a separate meet-
ing.
3 Do not be over-optimistic with regard to the number of topics that can be handled and the time al-
located for each topic.
4 Since it might be difficult to arrange a meeting with the Client and all Steering Group members
physically present, arrange meetings in advance and make use of other communication media, e.g.
telephone conferences, if needed
5 Including a review of the risk evaluation and the communication plan in the agenda ensures that
these aspects are being managed actively at the level of the Client/SG
Comment: The review of progress with the Steering Group is used to identify whether changes are needed in project
definition. At the end of the realization phase, the Client / Steering Group will decide whether the hand-over can
commence
PMA Reference Book
3.4.1 Hand-over
OBJECTIVE The objective of the hand-over step is to ensure that explicit acceptance of the product or ser-
AND vice is made by the Client. Further actions to complete the project are agreed between the Cli-
BENEFITS ent and the project team. The hand-over process clearly signals that the responsibility is
changing from the project team to the Client.
1. Depending on the project, organize an acceptance test (e.g. performance test, user ac-
ceptance test, etc.) or review of the product or service delivered to the Client
PROCEDURE 2. Together with the Client, agree on all actions resulting from the test to ensure that the
FOR USE product or service is compliant with the agreed project definition
3. Also agree on further actions to be taken to ensure proper project completion
• Is the project hand-over conducted with the Client and relevant Steering Group members?
REVIEW • Are objectives and deliverables from the project definition compared to the actual project
QUESTIONS results and delivered products?
• Have all pending hand-over actions been agreed to ensure full satisfaction of the Client?
• Have the dates for the closing meeting and/or phase V workshop been agreed with all par-
ticipants?
1 Don’t allow the hand-over to be regarded as a “clean up” process (to quickly end the project and
leave the Client with lots of open issues). In case of delay, the delivery date has to be re-negotiated
with the Client/Steering Group as soon as possible
2 Make the hand-over a structured transition to achieve future responsibility for use and maintenance
of the product or service delivered
3 Make all completion dates for hand-over actions realistic and make sure that the actions are being
reviewed by the Client and end–users
4 In Capex projects, this is the so-called Commissioning phase, and it could consist of a series of
tests (start up, cold commissioning, hot commissioning and provisional take over, etc.).
Cross-reference
The hand-over provides input for the:
- Final report (3.4.2 page 32)
- Closing meeting (3.4.3 page 33)
PMA Reference Book
OBJECTIVE The objective of the final report is to summarize the delivered results, their quality, costs and
AND time spent and compare, these with the agreement made at the definition phase of the project.
BENEFITS The report serves two purposes: first, it provides the Client and the Steering Group with a
summary of the project at its end state; secondly, it serves as a quick reference for other pro-
jects.
1. Define the basic structure of the report including: objectives, definition of product or ser-
vice, the project schedule, and the cost as agreed with the Client.
PROCEDURE
FOR USE 2. Describe and compare the actual outcome in terms of the above mentioned aspects
3. Give a short explanation of any deviations
4. Review and agree on the report with the Steering Group (including Client)
• Is the structure of the final report agreed on by the Client and the project team?
REVIEW
QUESTIONS • Does the final report reflect the complete summary of the overall project?
• Is the final report sent to all relevant persons for their review?
1 Ensure that any deviations have been reviewed with the Client and appropriate stakeholders (if
needed) before inclusion in the final report
2 If amendments have to be made after the presentation of the final report, these must be documented
and dated
3 For Capex projects, make sure you review the original agreement made in the Capex request form
and/or the Investment scorecard, to analyze whether the project has been successful or not.
4 Including the learning summary into the final report will allow this document to be a complete refer-
ence for future projects.
Cross-reference
The final report provides input for the closing meeting (3.4.3 page 33)
PMA Reference Book
OBJECTIVE The objective of the closing meeting is to formally complete the project and to officially release
AND the project team from any further responsibility to deliver. This is also the last meeting with the
BENEFITS Steering Group. In this meeting the Client gives the final approval of the project. The meeting
normally has an informal character to celebrate the successful completion of the project.
1. Prepare the agenda and contents of the meeting and send them to the attendees.
PROCEDURE 2. Calculate the overall project success (OPS)
FOR USE
3. During the meeting, review completion of hand-over actions and get the approval (by
means of signature) of the project from your Client
4. Decide on further communication and marketing of the results
5. Ensure that the project is formally ended and that the project team is released from further
responsibilities to deliver
6. Communicate the responsibility of the project team and the Client to complete the project
evaluation and transfer (phase V)
• Has the meeting agenda been sent out to all participants in advance?
REVIEW
• Have the hand-over actions been completed before the meeting date?
QUESTIONS
• Did the Client and the project manager sign-off the project approval?
• Has the Client taken full ownership of the product and formally released the project team
members from further responsibility to deliver?
1 Review the contents of the meeting, agenda, etc. with the Client prior to the meeting in order to re-
vise contents if needed.
2 Consider including the element of “social event” as part of the closing meeting to recognize and cel-
ebrate success.
3 Depending on the magnitude of the project, invite important guests to witness the project results.
4 Ensure the continuity of persons if a follow-up project needs to be defined
Cross-reference
The closing meeting marks the formal completion of the project and
gives way to the After Action Review (3.5.1 page 34)
PMA Reference Book
OBJECTIVE The objective of the After Action Review in this phase of the project is to systematically capture
AND the experiences, focusing on performance of the team and enabling participants to discover for
BENEFITS themselves what happened, why it happened and how to sustain strengths and improve on
weaknesses. Capturing these experiences helps to improve future projects by improving not
only collective performance (better project results) but also individual performance. AARs may
also be conducted after critical project phases or milestones to enable continuous fine tuning
and improvement.
PROCEDURE 2. Check the need to for an external or independent facilitator to support the After Action Re-
view (formal AAR)
FOR USE
3. Conduct a structured AAR following the terms of reference (template) and the Guideline on
After Action Review to capture the lessons learned
4. Inform people how information from the AAR will be will be handled
• Are all relevant participants (including the Client) attending the AAR of the project?
REVIEW • Is the facilitator of the AAR acting in a neutral manner (balancing positive and improve-
QUESTIONS ment points)?
• Are key topics pre-selected and evaluated during the AAR?
• Have the key lessons learned been identified for the benefit of future project teams?
• Have the outcomes of the AAR been recorded?
Cross-reference
The After Action Review provides input for the learning summary (3.5.2 page 35)
PMA Reference Book
OBJECTIVE The objective of the learning summary is to distill the learning captured during the project. It
AND takes into account both the outcomes of the After Action Review and the knowledge captured
BENEFITS during the realization phase. It provides a quick insight for future projects that might have to
deal with similar situations. The learning summary can contain both technical and project man-
agement aspects. It helps to enable better execution of future projects.
1. Review lessons learned captured during phase III as well as the outcome of the After Ac-
tion Review
PROCEDURE
2. Decide on the most important lessons learned which can benefit future projects.
FOR USE
3. Copy and paste the lessons learned and ensure that they are clearly linked to the cause of
the learning
4. Include the learning summary in the Final Report of the project in order to give context to
the learning.
• Are lessons learned (captured during phase III and phase V) evaluated to filter out the
REVIEW most important learning of the project?
QUESTIONS
• Can lessons learned be traced back to the source for more in-depth understanding?
1 The learning summary should include key recommendations for future project teams who will be
undertaking similar projects.
2 Putting the learning summary in the Final Report helps other project teams understand the con-
tent and context of the knowledge gained.
Cross-reference
The learning summary provides input for
- Knowledge transfer (3.5.3 page 36)
- Final report (3.4.2 page 32)
PMA Reference Book
OBJECTIVE The objectives of this step are to determine who will receive the lessons learned (as agreed
AND upon in the learning summary), and to define practical actions regarding how the lessons
BENEFITS learned can be transferred. Knowledge transfer is the last step in the process of the project. It
ensures that knowledge is not just available but that it has been transferred in the most prag-
matic way.
1. Upon completion of the learning summary, define who can benefit from the lessons
learned.
PROCEDURE 2. Decide on the most effective mechanism to transfer lessons learned within your depart-
FOR USE ment/Company/Group
3. Agree on actions to make the transfer happen, using the Action & Decision Log
• Has the team clearly defined the knowledge to be transferred, to whom, how and by
REVIEW whom?
QUESTIONS
• Have the lessons been transferred?
Comment
The knowledge transfer marks the end of the Project Management Approach (PMA)
GLOSSARY Holcim PMA Reference Book
4 Glossary
Activity Client
Elements of work needed to achieve a task. Each Representative of the end users with the authority
task is broken down into activities. An activity nor- to take decisions on behalf of his/her organization
mally has a responsible, an expected duration, and during project phases.
an expected start and finish date.
Assumptions Cost
Factor considered true, certain or real for plan- See project cost.
ning purposes. They need to be checked or
validated before approving the project, since Critical path
they could pose risks to the project. The sequence of tasks which determines the earli-
est date of project completion. The critical path will
Business Objective usually change as tasks might be completed ahead
A business result or target to be achieved through of or behind schedule. Although normally calculated
the project. It should be aligned with the long-term for the entire project, the critical path can also be
corporate goals as described in the Strategic and determined per milestone.
Business Plan and the Operational Road Map
(ORM). Definition of product or service
Step of the project definition phase to clearly de-
Capture of knowledge scribe what will be delivered (product / service) to
Step of the project realization phase to explicitly the Client as a result of the realization phase.
identify and store lessons learned for future use in
Phase V or to enable immediate transfer if required. End users
The organization that will make use of the product /
Changes service delivered by the project team.
Agreed adaptations to the project content (definition
and planning). Changes to documents as part of the Estimation of project costs
project planning can be made by the project team. An approximation of project costs and benefits. This
Changes to documents as part of the project defini- approximation should always include some indica-
tion have to be made by the Client/Steering Group. tion of accuracy. The level of accuracy improves as
GLOSSARY Holcim PMA Reference Book
Hand-over Phase
Step of the project completion phase used to de- A collection of logical steps to achieve properly con-
scribe the activities that ensure that the product or trolled project progress. Often but not necessarily,
service is accepted by the Client. It is also in this each phase is active at any time.
step that outstanding actions are explicitly agreed
upon between the project team and the Client. Problem
A deviation from the expected performance. It is
Issue detected when there is a gap between what is hap-
A point or matter in question, which the project pening (actuals) and what should be happening
team has to manage to completion by assigning (plans).
actions or making decisions.
Product or service
Knowledge transfer The items that the project team will deliver to the
Step of the project evaluation and transfer phase to Client. They are the means by which the business
define the mechanism and actions to ensure that objectives will be achieved.
transfer of the lessons learned to the appropriate
recipients takes place. Project
A one-time, multi-task job that has clearly defined
Learning summary starting and ending dates, a specific scope of work
Step of the project evaluation and transfer phase to to be performed and a budget to achieve the de-
distil the key lessons learned derived from the After fined business objectives.
Action Review and the capture of knowledge.
Project budget
Lessons learned Step of the project planning phase to describe the
New knowledge acquired during the project. It project costs in detail to allow cost control during
should describe what to do or avoid to ensure com- the realization phase
pletion of a specific aspect of the project
Project charter
Milestone A document created before the project definition
A significant achievement that summarizes the phase, that describe the initial understanding of the
completion of an important set of tasks or the com- client and project manager of the new product or
pletion of an important event in a project. It is the service to be delivered, including: root causes to
means by which the Client and Steering Group will start the project, business objectives, project mis-
monitor progress against plan. sion, deliverables, high-level milestone schedule,
high-level cost, high-level risks and required project
Milestone schedule team members
A schedule which shows the milestones of the pro-
ject. Project completion (phase IV)
The fourth phase of the Project Management Ap-
Mission proach (PMA) which ensures that the ownership of
A statement of what the project team aims to do to the product or service is properly transferred to and
reach the defined objective. Also called scope accepted by the end users, so that the project team
statement or team assignment. can be released from their responsibility to deliver.
GLOSSARY Holcim PMA Reference Book
5 Appendix A: How the 5 Phases and the corresponding steps are interrelated
n e agreement with
n the client
t search for lessons project status
t learned report after action
review
C 1
l p
i r 3
e o
n j
4
t e project team set-up
learning
c outline project
project schedule
activity summary
t organization list
low high
General Projects are exposed to risks which typically may lead to the following:
• partial or complete failure to attain the objective, i.e. non-
achievement of project objectives (qualitative and/or quantitative), or
partial achievement of the defined product or service but not within
budgeted cost and time limits (downside or negative risks), or
• missing additional benefits or missing possibilities to lower cost or
shorten realization time (opportunity risks).
Risks may occur in various areas:
• Company external project context, e.g. industry/market, external
stakeholders, laws/regulations, environment etc. (basic business
assumptions)
• Company internal project context and project concept, e.g. strategic
planning, technology, human resources etc.
• Project management and project implementation, e.g. project or-
ganization, performance of project management function, contrac-
tors etc.
To a great extent, project management inherently comprises project risk
management: a lot of tasks are performed and most of the decisions are
taken to minimize threats and to profit from opportunities. Nevertheless,
partial or complete project failures occur and are due to:
• Lack of risk awareness
• Project scope and objectives unclear or unrealistic, i.e. overly opti-
mistic
• Inadequate project organization
• Insufficient allocation of resources, work overload of persons in-
volved in the project
• Project organizations/teams not familiar with (standard) project pro-
cedures, etc.
Performing a standardized approach to project risk management im-
proves this situation and supports project management much like a
safety net. With its standard approach (see below) and its forms and
checklists which have been developed for specific types of projects (e.g.
for CAPEX Projects) it has following objectives:
• Improvement of risk awareness throughout the project organization
from inception to project completion
• Anticipation of problems of all kinds, detection of non-addressed
opportunities
• Alignment of views in Project Steering Group and Project Team on
risk profile and actions to be taken to manage risks
• Comprehensive and systematic coping with project risks.
Appendix B PMA Reference Book
Standardized Approach The standardized approach to project risk management consists of a 6-step
to Project Risk process:
Management
Step 1: "Identify"
Purpose: Create risk awareness.
Tasks:
- Identification of risks (categorizing by brain storming); results of brainstorm-
ing require clear structuring and categorization prior to further processing
- First prioritization of risks with regard to their significance and their likeli-
hood of occurrence.
Step 2: "Source"
Purpose: Understand the logic and origin of individual risks.
Tasks:
- Analysis of sources/drivers of risks, identification of links and interdepend-
encies.
- Nomination of Risk Owners (individuals accountable for the management
of individual risks).
Step 3: "Measure"
Purpose: Review first prioritization; define key risks.
Tasks:
- Quantification of risks with regard to significance and likelihood
- Quantification with facts and figures wherever possible, qualitative ranking
where not possible
Remarks:
1) Net risks shall be quantified, i.e. considering risk mitigating measures
(e.g. insurance) actually in place.
2) Focus shall be on realistic scenarios and not on unlikely worst cases.
Step 4: "Evaluate"
Purpose: Check acceptability of risk profile (risk profile: risk situation as de-
fined by outcomes of Steps 1 to 3) and draw conclusions.
Tasks:
- Analysis of risk levels of individual risks as well as of aggregated risk situa-
tion
- Definition of target risk profile (-> risk tolerances) including
measures/actions to reach this profile; depending on the project and its
status, this can mean anything between isolated measures to cope with
isolated risks and complete redefinition or even canceling of the project.
Step 5: "Manage"
Purpose: Ensure adequate management of risks.
Tasks:
- Ensure implementation of risk mitigating measures/action plans (-> mile-
stones, allocation of resources, and definition of responsibilities)
Step 6: "Monitor"
Purpose: Avoid surprises.
Tasks:
- Continuous monitoring of identified risks and keeping the radar open for
new risks
- Giving notice of favorable as well as unfavorable developments and mak-
ing sure that adequate actions are taken in time
- Reporting on implementation of action plans (progress reporting) as well as
on changes in the risk profile
Appendix B PMA Reference Book
4. 3.
Evaluate Measure
risks risks
7 Bibliography
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McGraw-Hill, 2000, 479 pages.
BAKER, Kim & Sunny, The complete idiot’s guide to Project Management (second edition), Alpha
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LEWIS, James P., The Project Manager’s desk reference (second edition), Mc Graw Hill, 1999, 546
pages.
WEISS, Joseph W., WYSOCKI, Robert K., 5-Phase Project Management , A practical planning and
implementation guide, Perseus Books Publishing, L.C.L., 1992, 121 pages.
WYSOCKI, Robert K, Effective Project Management, WILEY, Sixth, 2012, 774 pages.
GOLDRATT, Eliyahu M., Critical Chain A business novel, The North River Press, 1997, 246 pages.
Project Management Institute, “A guide to Project Management Body of Knowledge, Fifth edition”,
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Justice, Thomas. Jamieson, David W., The Facilitators´s Fieldbook, Anacom, 1999, 460 pages