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Chapter 16 Project planning and control 487
which are relying on the same resource. Finally, integrated EPM systems can help to communicate,
both within a project and to outside organizations which may be contributing
to the project. Much of this communication facility is web-based. Project portals can allow
all stakeholders to transact activities and gain a clear view of the current status of a project.
Automatic notification of significant milestones can be made by e-mail. At a very basic level,
the various documents that specify parts of the project can be stored in an online library.
Some people argue that it is this last element of communication capabilities that is the most
useful part of EPM systems.
Summary answers to key questions
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➤ What is a project?
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A project is a set of activities with a defined start point and a defined end state, which pursues
a defined goal and uses a defined set of resources.
All projects can be characterized by their degree of complexity and the inherent uncertainty in
the project.
Project management has five stages, four of which are relevant to project planning and control:
understanding the project environments, defining the project, planning the project, technical
execution of the project (not part of project planning and control) and project control.
➤ Why is it important to understand the environment in which a project
takes place?
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It is important for two reasons. First, the environment influences the way a project is carried
out, often through stakeholder activity. Second, the nature of the environment in which a project
takes place is the main determinant of the uncertainty surrounding it.
➤ How are projects planned and controlled?
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Projects can be defined in terms of their objectives (the end state which project management
is trying to achieve), scope (the exact range of the responsibilities taken on by project
management), and strategy (how project management is going to meet the project objectives).
➤ What is project planning and why is it important?
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Project planning involves five stages.
– Identifying the activities within a project;
– Estimating times and resources for the activities;
– Identifying the relationship and dependencies between the activities;
– Identifying the schedule constraints;
– Fixing the schedule. ➔