Table of Contents

Table of Figures............................................................................................................................................. 2
Introduction .................................................................................................................................................... 3
Project Cost Management. ............................................................................................................................ 5
Plan Cost Management ............................................................................................................................. 6
Estimate Costs .......................................................................................................................................... 7
Determine Budget ...................................................................................................................................... 8
Control Costs ............................................................................................................................................. 9
Project Cost Management at SAEMS Hydro Ltd. .................................................................................... 10
Project Quality Management ....................................................................................................................... 15
Plan Quality Management ........................................................................................................................... 17
Perform Quality Assurance ...................................................................................................................... 18
Control Quality ............................................................................................................................................. 19
Project Quality Management at SAEMS Hydro Ltd.................................................................................. 20
Project Stakeholder Management................................................................................................................ 25
Identifying Stakeholders .......................................................................................................................... 26
Plan Stakeholder Management ............................................................................................................... 27
Manage Stakeholder Engagement .......................................................................................................... 28
Control Stakeholder Engagement ............................................................................................................ 29
Stakeholder Management at SAEMS Hydro Ltd. ..................................................................................... 30
Conclusion ................................................................................................................................................... 34
References .................................................................................................................................................. 36

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 Table of Figures
Figure 1: Project Cost management overview (PMBOK Guide) .................................................................... 5
Figure 2: Plan Cost Management Data Flow Diagram (PMBOK Guide) ........................................................ 6
Figure 3: Estimate Cost Data Flow Diagram (PMBOK Guide) ....................................................................... 7
Figure 4: Determine Budget Data Flow Chart (PMBOK Guide) ..................................................................... 8
Figure 5: Control Costs Data Flow Diagram (PMBOK Guide)........................................................................ 9
Figure 6 : Project Budget Summary ............................................................................................................. 10
Figure 7: Budget for Human Resources ...................................................................................................... 11
Figure 8: Admin Expenses Budget and Monitoring ...................................................................................... 12
Figure 9: Construction Equipment and Machinery Budget ........................................................................... 13
Figure 10: Head office Expenses Budget .................................................................................................... 14
Figure 11: Project Quality Management Overview (PMBOK Guide) ............................................................ 15
Figure 12: Fundamental Relationships of Quality Assurance and Control to IPECC, PDCA, Cost of Quality
Models and Project Management Process Groups...................................................................................... 16
Figure 13: Plan Quality Management Data Flow Diagram (PMBOK Guide) ................................................ 17
Figure 14: Perform Quality Assurance Data flow Diagram (PMBOK Guide) ................................................ 18
Figure 15: Control Quality Data Flow Diagram (PMBOK Guide).................................................................. 19
Figure 16: Slump Cone Test Procedure (SAEMSH Ltd.) ............................................................................. 20
Figure 17: Test Cube testing Procedure (SAEMSH ltd.) .............................................................................. 21
Figure 18: Post Concrete Inspection Procedure .......................................................................................... 22
Figure 19: Material Acceptability Form ........................................................................................................ 23
Figure 20 : Pre Concrete Material Acceptance Form (SAEMSH Ltd.) ......................................................... 24
Figure 21: Project Stakeholder Management Overview (PMBOK Guide) .................................................... 25
Figure 22: Identify Stakeholders Data flow Diagram (PMBOK Guide) ......................................................... 26
Figure 23: Plan Stakeholder Management Data Flow Diagram (PMBOK Guide) ........................................ 27
Figure 24: Manage Stakeholder Engagement Data flow Diagram (PMBOK guide) ..................................... 28
Figure 25: Control Stakeholder Engagement Data flow Diagram (PMBOK Guide)...................................... 29
Figure 26: Renovation of Katiri Primary School ........................................................................................... 31
Figure 27: Renovation of Kilembe Police Station ......................................................................................... 31
Figure 28: Construction of Katiri Market ...................................................................................................... 31
Figure 29: Construction of Road Barrier Primary School ............................................................................. 32
Figure 30: Masule A & B Water Scheme ..................................................................................................... 32
Figure 31: Distribution of Goats and Piglets ................................................................................................ 32
Figure 32: Proposed Kilembe Church .......................................................................................................... 33

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 Introduction

As per PMI.org (Project Management Institute.org) a project is defined as a unique temporary activity with
limited time, budget, defined scope and resources. A project cannot be compared with another due to the
unique characteristics as the location, client, the contractor, type of the project, materials etc. because of
the uniqueness each project will have its own unfamiliarity and risks. The process of managing all facets till
the project achieves it goal is known as the Project Life cycle.
Management of a project will require specific knowledge areas, specific set of skills and techniques to meet
the project requirements. PMBOK Guide has identified he project management processes and has divided
he processes in to five groups, which are;
1) Defining or Initiating
2) Planning
3) Executing
4) Monitoring and Controlling
5) Closing
A project Manager should deliver the project within the allocated cost/ resources, within the scheduled time
and within the scope/ required quality which is known as the triple constraint in Project Management, also
PMBOK Guide has identified 10 key knowledge areas where a project manager will have to mainly operate
to ensure achievement of goals in the project, which are;
1) Project Integration Management
2) Project Scope Management
3) Project Time Management
4) Project Cost Management
5) Project Quality management
6) Project Human Resource Management
7) Project Communication Management
8) Project Risk Management
9) Project Procurement Management
10) Project Stakeholder Management
Practical application of techniques, skills, knowledge and tools to gain project requirements or goals is
known as project management. To do so above 10 knowledge areas and the process groups are required
to carry out an effective management process throughout the project life cycle. Each process and
knowledge area has an expected outcome or a pre-defined, output therefore for each knowledge area or
process he method of approaching is different and each knowledge area or he process is characterized by
the inputs, techniques / tools used to develop the output result and the output result.
Project Management processes and the knowledge areas are not limited to the above but it is to be aided
when managing a project. The project manager can use them as a guideline to approach the processes to
meet project objectives and mainly in order to balance out the constraints in a project Scope, Schedule,
budget, quality, resources and risk. Managing the processes and the knowledge areas will bring the project

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to a smoothly operating stage. From that stage with proper management skills and knowledge the project
manager will be able to gain project objective with minimum disturbances from the external factors.
From the 10 Knowledge areas, in this report the writer focuses on Cost management, Quality Management
and Stakeholder management.
In this report the three knowledge areas are been discussed focusing what is the knowledge area is about
and how the knowledge area can be approached, additionally the writer has evaluated he knowledge areas
based on his experience, his involvement and how the writer’s employers has acted on the discussed
knowledge areas.

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 Project Cost Management.
Cost management involves planning and knowing the financial aspects together with the human and other
resources required for a project. The project managers should develop a budget with care and stick to the
budget ensuring project gains in as much profit as possible. Cost management usually goes hand to hand
with time management, because to ensure that the project is completed on budget, it also has to be
completed on time. Project Cost Management requires Planning, Estimating, Budgeting, Financing,
Funding, Managing, Monitoring and controlling to ensure that he project operates and completes on
budget.
There are four major Activities in Project cost management which occurs in the Project Planning group and
in Project Controlling and Monitoring group. In the Planning group the activities to be completed are Plan
Cost Management, Developing Estimated Cost, Determine the budget and in throughout the life cycle of
the project the cost is to be controlled which is under Monitoring and Controlling Group. The figure below
expresses the Inputs, Tools and techniques to be used and the expected output in each activity.

Figure 1: Project Cost management overview (PMBOK Guide)

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The cost for the resources required to complete project goals is the primary concern of Project Cost
Management. While managing the project cost it is also to be concerned on the effects of the decisions
regarding the project such as maintenance, cost of using, supporting the products, services. Where some
decisions may decrease the project cost but also some might could increase the risk of increase the
resulting end product‘s operating cost.
To perform an efficient and coordinated cost management process, the Cost Management Planning is done
at early stages of project planning and a framework is set for each cost management processes.

Plan Cost Management

The process of finalizing project policies, project procedures, planning documentations, managing,
expending the project and controlling of project costs is called planned cost Management. The most
beneficial use of this process is that it has the ability to provide guidance and direction on how manage the
project cost through the project’s life cycle.

Figure 2: Plan Cost Management Data Flow Diagram (PMBOK Guide)

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Estimate Costs

The development an approximate amount of the monetary resources required to complete the project
activities is called as the Estimate Cost. The advantage is it provides the monetary requirements to achieve
the project.

Figure 3: Estimate Cost Data Flow Diagram (PMBOK Guide)

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Determine Budget

The process of combining the estimated costs for the individual activities or work packages and
establishing an authorized cost baseline is determining the budget of the project. The Performance of the
project can be monitored and controlled against the cost baseline by determining the budget. All of the
funds authorized to commence the project is included in the project budget and the approved version of the
time phased project budget is known as The Cost Baseline.

Figure 4: Determine Budget Data Flow Chart (PMBOK Guide)

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Control Costs

Monitoring the status and updating the costs in the project and managing the effects to the cost baseline is
known as the process of Cost Controlling. The Advantage of controlling cost is that it allows to recognize
variances in the cost and to take immediate remedial action, ultimately which will lower the risks.
Controlling cost in a project will include;
 Taking action against the facts that will cause change to the authorized cost base line
 Acting on any request that arises in a timely manner
 As a change occurs it is to be managed at the time it occurred
 Keeping all costs under or on budget in all activities or in total
 Work performance monitoring against expenditures of funds
 Updating Stakeholders in any changes in the cost of the project and if a cost overrun
occurs managing it under an acceptable limit.

Figure 5: Control Costs Data Flow Diagram (PMBOK Guide)

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Project Cost Management at SAEMS Hydro Ltd.

SAEMS Hydro Ltd. is the company I was employed and what we do is develop Mini Hydro Power Projects
in Uganda, Africa. In the Particular project managing the cost was a challenge because it was the first
project we developed a project in a foreign country.
We had the experience developing Mini Hydro Power Projects in Sri Lanka and by using that experience
initially we identified every cost component, Human Resources required and other resources required. After
gathering the Components I myself (Quantity Surveyor) and a team consisting a Civil/ structural Engineer
and a purchasing officer, we visited Uganda ad gathered the cost information required from a simple nail to
Heavy Machineries.
Using these cost information, a budget was developed and several decisions were made such as instead of
buying machineries and vehicles from Uganda it was decided to import them to the country and also rather
than having concrete mixtures at each location, due to the easy terrain it was decided to install a batching
plant at site and to deliver the concrete by truck mixtures. Every component was accounted for any and a
cost limit was set to each components. At any scenario where it is likely to exceed the cost allocated a
contingency amount was allocated to the Project manager to be used with the approval of the top
Management.
Following is the Budget created by myself allocating cost for each and every component and sub budgets
for easy monitoring.

Please note that due to

company policies amounts
has been deleted from the
summary sheet

Figure 6 : Project Budget Summary

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Figure 7: Budget for Human Resources

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Figure 8: Admin Expenses Budget and Monitoring

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Figure 9: Construction Equipment and Machinery Budget

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Figure 10: Head office Expenses Budget

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 Project Quality Management

Project Quality Management is the process that determines the activities such as quality of policies, quality
of project objectives and responsibilities to ensure that the end product will have the quality the client
expected. Disregarding the nature of the project, quality management applies to all projects and quality
management does not only cover the quality management through the life cycle of the project but also the
deliverables of the project. By neglecting quality requirements and being unable to achieve them
consequences can have serious and a negative impact on the project and for any stakeholder.

Figure 11: Project Quality Management Overview (PMBOK Guide)

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Figure 12: Fundamental Relationships of Quality Assurance and Control to IPECC, PDCA, Cost of Quality Models and Project Management Process Groups

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 Plan Quality Management

Identifying the standards and the quality requirements of the project and the project’s deliverables is known
as Plan Quality Management. It is essential to document quality management plan with requirement so it
will demonstrate the compliance of the project with the quality requirements. Having a quality management
plan will enable to provide guidance and direction on how the quality is to be managed and validated
throughout the project. Quality planning should go hand to hand with other planning processes for an
example in some instants adjusting the quality can lead to increase or decrease on project costs and
project life cycle.

Figure 13: Plan Quality Management Data Flow Diagram (PMBOK Guide)

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Perform Quality Assurance

Perform Quality assurance ensures that the appropriate standards and operational definitions are has been
used within the project. Inspection and prevention aspects of quality assurance should have a considerable
influence in the project. Usually even the management of the company or the stakeholders of the project
are not directly involved with the Quality assurance it is better to have separate team for perform quality
assurance activities to assure the quality of the work performed.

Figure 14: Perform Quality Assurance Data flow Diagram (PMBOK Guide)

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 Control Quality

Commencing of Quality assessments, Monitoring and recording the results, providing recommendations or
informing the changes to be carried out is known as controlling quality. Performing Quality control activities
will allow to identify poor quality areas and to take action against them. Also it will also help to ensure the
project will be delivered as per the requirements of the stakeholders.
Different organizations use different Quality assurance methods and Quality assurance requirements,
therefore the Quality assurance methods and the requirements should be identified and prepared at the
project planning stage, where it will provide confidence for the stake holders and it will also ensure that the
required quality will be gained because the methods has been pre-defined at the planning stage.
Prevention & inspection, Attribute sampling & variables sampling and tolerances & control limits are
common terms that are been used in Controlling Quality.

Figure 15: Control Quality Data Flow Diagram (PMBOK Guide)

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 Project Quality Management at SAEMS Hydro Ltd.

Initially the scope of the project was developed by the management together with the client and the
stakeholders by taking their requirements for consideration. Then Construction method statements were
developed for each structure prior to commencing construction work at site.
Quality assurance plans were developed and relevant documents was also created as per the
requirements. By the time commencing the project “Construction Quality Assurance Process” were printed
in to booklets and delivered to site supervisors, Site Managers, Site Engineers and to the Project Manager.
A single day workshop was arranged to all personals at site and it was informed strictly that the procedures
are to be firmly followed. Since everyone had booklets in their hands all the supervisory staff was
knowledgeable about the Quality Assurance methods and they were very supportive for the Quality
Assurance team.
Following are some of the Quality assurance documents and procedures carried on,

Figure 16: Slump Cone Test Procedure (SAEMSH Ltd.)

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Figure 17: Test Cube testing Procedure (SAEMSH ltd.)

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Figure 18: Post Concrete Inspection Procedure

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Figure 19: Material Acceptability Form

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Figure 20 : Pre Concrete Material Acceptance Form (SAEMSH Ltd.)

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 Project Stakeholder Management

The process of Identifying organizations, groups or individuals who has the ability to impact the project and
identifying who can be impacted by the project. By proper and continuous communication expectations of
the stakeholders and their impact on the project can be identified. With knowing the impacts suitable
management strategies can be used to engage with the stakeholders effectively. Satisfaction of the
stakeholders should be managed as a key objective of the project

Figure 21: Project Stakeholder Management Overview (PMBOK Guide)

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Identifying Stakeholders

The process of recognizing the individuals, groups, or organizations that could affect the project or could
get affected by the project because of the decisions, activities, outcomes of the project, their interests in the
project, their direct or indirect involvement to the project, interdependencies, influence and their potential
impact on project success. Identifying the Stakeholders at early stages allows the project manager to
develop strategies for each stakeholder or group of stakeholders so they can be managed efficiently and to
identify which stakeholders requires more attention, also the level of impact they have on the project.

The process of identifying the level of interest, individual expectations, importance of the stakeholders and
their influence is vital for the successful completion of the project. Each Stakeholder is different from one
another and there will be many stake holders with diversified interests or impacts. With the limited time of
the project manager stakeholders should be managed efficiently as possible. In order to simplify the
situation it is possible to group the stakeholders’ accordance with their interest on the project and the level
of involvement in the project. It is to be considered that all stakeholders will not be involved at the same
time or at the early stages of the project. Therefore identifying or categorizing stakeholders by project
stages also can be helpful to the project manager because the project manager will know when and how
the stakeholder is going to be involved.

Figure 22: Identify Stakeholders Data flow Diagram (PMBOK Guide)

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Plan Stakeholder Management

Stakeholders are involved and has the ability to impact the project through its life cycle and developing
management strategies to manage the stakeholders is known as Plan Stakeholder Management.
Depending on the requirement of the stakeholders their needs, interested and the possible impacts on the
project could be analyzed, once the analysis is done it can be developed in to a clear and achievable action
plan to manage the stakeholders to support their interests without affecting the project goals.
The developed stake holder management plan using the plan stakeholder management process, the
management plan will consist detailed methods and approaches on how the stakeholder can be managed
effectively without affecting the project primary goals. As the project commences and runs through it life
cycle the involvement, level of engagement may change and that could change to a favorable way to the
project or it could even affect the project badly. Therefore stakeholder management planning is a process
that the project manager should review regularly and take action before the interests of the stakeholders
affects the primary objectives of the project.

Figure 23: Plan Stakeholder Management Data Flow Diagram (PMBOK Guide)

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Manage Stakeholder Engagement

Manage Stakeholder Engagement is the procedure and the method of approaching the stakeholders with
proper communication and working together with the stakeholders to meet their interests, expectations,
discuss their issues as soon as they rises, providing solutions whenever possible for their issues, and foster
suitable and advantages stakeholder involvement which may benefit the project throughout the project life
cycle. If the project manager manages the stakeholders well and consider their issues there is a less
chance that they will grow a resistance towards the project, if a resistance grows it will be difficult to
manage the project and sometimes with their actions improper stakeholder management can even lead to
project suspension therefore managing stakeholders properly and appropriately will significantly increase
the project success rate.
The Stakeholders should be knowledgeable on project objectives, goals, the benefits of the project and the
risks of the project, when they have a better understanding of the project and how it is operated it can
increase the support rate of the stakeholders while increasing the success rate of the project too. Having
majority of the stakeholders in the supportive side can massively help to overcome the negative impacts of
the less supportive stakeholders.

Figure 24: Manage Stakeholder Engagement Data flow Diagram (PMBOK guide)

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Control Stakeholder Engagement

The process of monitoring, engaging and applying strategies for stakeholder relationships is known as
control stakeholder engagement. As the project progresses monitoring and controlling stakeholder
engagement will develop stability, also allows the project manager to develop efficiency and also increase
the effectiveness of the stakeholders throughout the life cycle of the project.
Stakeholder management plan consists on how and what activities the stakeholder should be approached
or engaged with, the management plan is to be executed throughout he project life span and the
involvement of stakeholders is to be controlled continuously through the life cycle of the project.

Figure 25: Control Stakeholder Engagement Data flow Diagram (PMBOK Guide)

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Stakeholder Management at SAEMS Hydro Ltd.

Since our company is developing a project in a foreign country for the first time it was a very difficult task to
identify stakeholders of the project. The strategy applied by the company was by joining together with the
client (AEMS – Africa Energy Management Systems) we placed a Sri Lankan for preliminary works and to
approach he stakeholder about a year prior to commencing the project.
The person we placed in the project area developed a relationship with own councilmen, local police
station, hospital and with local people. Slowly we gave the people an understanding what is it that we are
going to do and how it is going to benefit them and their country, also how developing Mini Hydro Power
Plant can increase the number of job opportunities, provide access to their houses and how their way of
living can be developed. People were excited and had a better understanding of what we are going to do
and they too became involved and supportive.
We focused more on the development of the community prior to construction work because if we develop
the project with the people we would have a good stakeholder relationship throughout the project. We
renovated their schools, hospital and their police station initially because it is the backbone and the strength
of a community with the renovations people start to become fond and grateful of us.
While the Construction work was ongoing we renovated their local market and kept continuing developing
the livelihood of the people, we donated them with piglets, clothes, food and even kept an almsgiving stall
in relation to Sri Lankan “Wesak Poya”.
Another major issue of the project was that the proposed Power House (Building with Turbines which
generates power) was in an adjacent land to the local church. It was a major problem because of the noise
generated and the church is a very old church therefore it could even collapse due to the vibration of the
turbines. Our initial solution was to sound proof the powerhouse and to develop a massive sound barrier
wall between the church and the powerhouse. But in the past several years there has been massive floods
in the area and water has come in to the church, because of this people were worried that one day the
flood might collapse the church to the ground.
The project manager had a discussion regarding this issue with the town councilmen and from the town
councilmen they gave us the solution that, they would provide us with a land and for us to build a church for
them. The request was discussed with the management and when the cost was taken into the account it
was visible that soundproofing the powerhouse and building a sound barrier wall is highly cost consuming
task and building a church can be done to a considerable low cost than sound proofing or the barrier wall.
The project is still ongoing and up to this date here have been no negative impacts on the project from the
stakeholders except for minor situations. Because of the proper management of the Stakeholders the
project is running smoothly and massive cost have been saved because of the support of the stakeholders.

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Figure 26: Renovation of Katiri Primary School

Figure 27: Renovation of Kilembe Police Station

Figure 28: Construction of Katiri Market

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Figure 29: Construction of Road Barrier Primary School

Figure 30: Masule A & B Water Scheme

Figure 31: Distribution of Goats and Piglets

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Figure 32: Proposed Kilembe Church

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 Conclusion

Project Cost Management

Proper Cost management is vital to the survival of the company, even cost management determines the
profit amount and the operation level of the project it should always be flexible but strict with proper
procedures. Other than the fixed material, machinery cost, when it comes to Human Resources the
allocated cost shouldn’t be barely enough but it should be more than sufficiently enough without any
improper wastages. Considering the fact the all Sri Lankan employees work in Uganda are already being
mentally affected being away from families and being away from their natural usual environment. The
concept of our management has been always that if something is required it should be given but not to be
wasted but to be consumed according to the needs. My organization had the ability to gain more profit by
reducing site administration cost but as the profit of the company employees mentality is also important for
a smooth operating project.
It can be seen in many companies that mostly they would increase their profit by limiting the facilities given
to the employees which can ultimately lead to employee dissatisfaction, illnesses, riots in the project and
high turnover which will cost more than the cost organizations are trying to save.
Therefore for a smooth operating project when preparing the budget it is important create accurate costing
for fixed definite costs and also to allocate sufficient funds for employee facilities, medical requirements,
trainings so employees are satisfied, it will bring quality to their work and to the project.

Project Quality management

Quality management is something that most of the contractors are struggling in construction works. They
spend a tremendous effort to maintain the quality and to keep up to the required test results. Mainly they
struggle in this area because most people concern about the quality once the construction has started and
after because of this supervisors and site managers think they have an additional burden to carry together
with their duties, also another common answer given by employees when asked about Quality assurance is
that “they didn’t know” or “they don’t know how to”. But if you arrange Quality assurance documents and
procedures in the project planning stage prior to commencement of construction works, a training program
can be conducted prior to construction for all employees and booklets can be handed over to the
employees so they would be well knowledgeable on the quality assurance process and in everyone’s mind
it will be a part of their duty and they will take in it as their own responsibility to manage the Quality of the
construction works.

Project Stakeholder Management

Managing Stakeholders is crucial for the successful completion of the project, even if the Project manager
manages all other management knowledge areas and fails to manage the stakeholders they have the
power to even suspend the project. In the scenario I have explained in my report if the company had failed

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to manage the stakeholders in the event where power house is constructed near the church, people would
have protest against it and we would have to bear a massive cost for relocation of the powerhouse but with
the proper management of the stakeholders we have saved a massive cost and in the same time we have
developed the community and satisfied the Stakeholders. Therefore if I am asked what is the most
important project knowledge area to be managed, I would definitely choose management of the
stakeholders, because whatever the management strategy level the project manager applies and succeeds
on other knowledge areas will be a total waste if the project Manager is not able to manage the
stakeholders properly.

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 References

Books
A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK GUIDE), FIFTH
EDITION
A guide to the Project Management Body of Knowledge (PMBOK guide), fifth edition. (2013). 1st ed.
Newtown Square, Pa.: Project Management Institute.

Electronic

BONNIE COOPER, P.
What You Must Know About Stakeholder Management
Bonnie Cooper, P. (2017). What You Must Know About Stakeholder Management. [online]
Corpedgroup.com. Available at:
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STAKEHOLDER MANAGEMENT | PROJECT MANAGEMENT

Stakeholder Management | Project Management. [online] Available at:
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10 KEY PRINCIPLES OF STAKEHOLDER ENGAGEMENT | APM

10 key principles of stakeholder engagement | APM. [online] Available at:
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Apr. 2017].

THE TEN KNOWLEDGE AREAS OF PMBOK

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WHAT IS PROJECT MANAGEMENT | PMI

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THE 9 PROJECT MANAGEMENT KNOWLEDGE AREAS

The 9 Project Management Knowledge Areas. [online] Available at: http://pmpcertificationhelp.com/project-
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PMBOK Knowledge Areas for Project Management Guide 5th Edition - Process Groups and Processes -
The Complete Guide
PMBOK Knowledge Areas for Project Management Guide 5th Edition - Process Groups and Processes -
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DEMYSTIFYING THE 5 PHASES OF PROJECT MANAGEMENT
Demystifying the 5 Phases of Project Management. [online] Available at:
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PROJECT MANAGEMENT PROCESSES

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Projectinsight.net
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