Project Management Manual

Project Management Manual PM01 Introduction to the Project Management Manual Ref: PM01 (V7.01) - Uncontrolled once Printed Issued on 20 th December 2006 Manual Owner: James Couper Head of Project Management Governance MP&I PM01(V7.01) Page 1 of 23

Change Log Change Description Owner of Change Date of Change PM01(V7.01) Page 2 of 23

Table of Contents About This Document...4 1. Introduction to the Guide to Railway Investment Projects (GRIP)...5 2. About the Project Management Manual...8 3. Structure of the Project Management Manual... 12 4. Application of GRIP in a multi-project Environment... 15 4.1 Introduction... 15 4.2 Definitions... 16 4.3 Application of GRIP to Workbanks... 20 4.4 Managing Major Projects... 23 PM01(V7.01) Page 3 of 23

About This Document In this document This document is the introduction to the Project Management Manual. Its contents are as follows: Section 1 provides an introduction to the entire Guide to Railway Investment Projects (GRIP) Section 2 provides a specific introduction to the Project Management Manual and its contents Section 3 defines the format for each of the documents within the Project Management Manual Section 4 provides general guidance on the management of projects, portfolios and programmes within the GRIP environment. PM01(V7.01) Page 4 of 23

1. Introduction to the Guide to Railway Investment Projects (GRIP) Structure of the Guide The diagram below shows the structure of the Guide to Railway Investment Projects: Policy Manual (POL) Enhancements Development Manual (ENH) The Delivery Manual (DEL) Investment Regulations (IR) Renewals Development Manual (RDM) Third Party Delivery (TPD) Project Management Manual (PM) The Manuals The Guide to Railway Investment Projects consists of the following manuals: Policy Manual Title Project Management Manual Investment Regulations Enhancements Development Manual Purpose Describes the overarching policies that must be applied to all investment projects and provides an overview of Network Rail s approach to managing and controlling these projects. Describes the underpinning project management approach and principles that must be applied to all investment projects, across all stages of the investment lifecycle. Describes the principles that apply to investment project funding and the procedures that must be followed in order to obtain funding authority. Describes what must be produced by an investment project if its scope includes any element of network enhancement. Continued on next page PM01(V7.01) Page 5 of 23

1. Introduction to the Guide to Railway Investment Projects (GRIP), Continued The Manuals (continued) Title Renewals Development Manual The Delivery Manual Third Party Delivery Manual Purpose Describes what must be produced by an investment project if its scope includes any element of network renewal. Describes what must be produced by an investment project if Network Rail delivers the asset change in full, or in part. Describes what must be produced by an investment project for Network Rail to discharge its asset protection role if a third party delivers the asset change in full, or in part. Each manual contains separate manual documents that provide details on a specific subject, for example Project Engineering, Track Renewals or Value Management. Products The key components in each of these separated documents are the Products that are required at each stage of the Investment Lifecycle. These products represent the output, or deliverable, from a piece of work, for example a Remit, Budget (Cost) Estimate or Functional Specification. The Guide to Railway Investment Projects ensures consistency by specifying the required outputs in terms of format and content, but not how they should be developed. This approach gives maximum flexibility to the development process. Continued on next page PM01(V7.01) Page 6 of 23

1. Introduction to the Guide to Railway Investment Projects (GRIP), Continued The Investment Lifecycle The Basic Lifecycle Diagram is shown below: Phases A Strategic Requirements B Feasibility & Development C/D EFA Procurement E Delivery Stages 1 2 3 4 Output Option Single Option Pre-Feasibility Definition Selection Development 5 6 7 8 Construction, Detailed Scheme Project Close Test & Design Handback Out Commission The lifecycle defines the eight stages through which an investment project progresses from Output Definition to Close Out. The eight stages are grouped into three phases which are linked to the Strategic Rail Authority s investment process (Phases C and D are the SRA s Tender Documentation and Procurement stages, which map across several Network Rail stages depending on the chosen procurement route). Product Matrix A Product Matrix has been developed to give an overview of all the products that should be produced within each stage of the Investment Lifecycle. The products have been grouped together in the Quality Plan/Stage Gate Review Checklists on a stage-by-stage basis, thereby forming a definitive list of outputs from each stage. PM01(V7.01) Page 7 of 23

2. About the Project Management Manual Aims The aims of the Project Management Manual are to: Provide a framework for managing projects that can be applied consistently across Network Rail Define the products required at various stages of the project lifecycle Provide guidance and, where applicable, templates to enable the efficient development of the products. Provide guidance on the management of major projects and programmes. Content of the Project Management Manual The table below lists the sections within the Project Management Manual and the purpose of the products within each section: Section No Section Name Purpose PM01 PM02 Introduction to the Project Management Manual Sponsor s and Project Manager s Remits Introduction to the content and format of the Project Management Manual. Also describes the contents of the Guide to Railway Investment Projects. Defines the format and content of the Sponsor s and Project Manager s Remits at each stage of the investment lifecycle. PM03 Project Planning Defines the format and content of the Project Planning products at each stage of the investment lifecycle. PM04 Cost Estimating Defines the format and content of the Cost Estimating products at each stage of the investment lifecycle. PM05 The Management Plan Defines the format and content of the Management Plan products at each stage of the investment lifecycle. PM06 Contract Planning and Procurement Defines the format and content of the Contract Planning and Procurement products at each stage of the investment lifecycle. PM01(V7.01) Page 8 of 23

PM07 Controls Change Management Defines the format and content of the change management products at each stage of the investment lifecycle. 2. About the Project Management Manual, Continued Continued on next page Content of the Project Management Manual (continued) Section No Section Name Purpose PM08 Controls Cost Management Defines the format and content of the Cost Management products at each stage of the investment lifecycle. PM09 Controls - Reporting Defines the format and content of the Reporting products at each stage of the investment lifecycle. PM10 Risk and Opportunity Management Defines the format and content of the Risk and Opportunity Management products at each stage of the investment lifecycle. PM11 Value Management Defines the format and content of the Value Management products at each stage of the investment lifecycle. PM12 Contract Management Defines the format and content of the Contract Management products at each stage of the investment lifecycle. PM13 Stage Gate Review Defines the format and content of the Stage Gate Review at each stage of the investment lifecycle. PM14 Project Close Out Defines the format and content of the Project Close Out products at each stage of the investment lifecycle. PM15 Roles and Responsibilities Defines the general roles and responsibilities of the key personnel who have an input to the production of the products defined in the Guide to Railway Investment Projects. PM01(V7.01) Page 9 of 23

PM16 Product and Template Glossary This document lists all of the products within the Guide to Railway Investment Projects alphabetically and gives a high-level purpose for each one. Products with templates available are also indicated. PM17 Project Communications Defines the content and processes to be used in managing a Project s Communications Plan. Continued on next page PM01(V7.01) Page 10 of 23

2. About the Project Management Manual, Continued Staged Approach Within each stage of the investment lifecycle we adopt a plan do review approach which is shown in the following diagram: Plan Previous Stage Do Review A Stage Next Stage Plan Do Review Plan Do Review The Project Management Manual The elements of the Project Management Manual we use to undertake this plan do review approach within each stage are shown in the following diagram: Plan Do Review PM02 Remits PM07 Controls - Change Management PM03 Project Planning PM08 Controls - Cost Management PM04 Cost Estimating PM09 Controls - Reporting PM05 The Management Plan PM10 Risk Threats and Opportunities Management PM06 Contract Planning and Procurement PM11 Value Management PM12 Contract Management PM14 Project Close Out PM13 Stage Gate Review IR01 Investment Regulations PM01(V7.01) Page 11 of 23

3. Structure of the Project Management Manual Introduction The contents of each document within the Project Management Manual is based on the same template and organised in the same way. Each document is organised as follows: Section 1. Roles and Responsibilities Section 2. Products Section 3. Guidance Section 4. Templates The content of each section is described below. 1. Roles and Responsibilities Identifies the roles that encompass specific responsibilities linked to the production of products defined in the appropriate section of the Project Management Manual. More general guidance on roles and responsibilities is given in PM15 - Roles and Responsibilities. The role definitions are not intended to be job specifications; rather, their purpose is to describe a function to be fulfilled to meet the requirements of the Guide to Railway Investment Projects. 2. Products Defines the Products that may be required at each stage of the project lifecycle. The following table describes the common format that is followed: Purpose Topic Input Dependencies Format and Content - Minimum Requirements Description The purpose of this product. Specific products that must be completed before this product can be started. May include specific quality criteria. The format and minimum requirements of this product. Continued on next page PM01(V7.01) Page 12 of 23

3. Structure of the Project Management Manual, Continued 2. Products (continued) Responsibility Topic Description The RACI for the product. Note: RACIs are an organisational tool used by Network Rail to understand and define how individual job roles are involved in, and contribute to, organisational processes. The RACI analyses responsibility for producing the product under the following headings: Responsible - The job role that is responsible for producing the product but not ultimately accountable. Responsibility can be delegated. Accountable - The job role that is ultimately responsible for the product. Accountability cannot be delegated. Consult - Job roles that must be consulted during the production of the product. Evidence must be provided that consultation has taken place. Inform - Job roles that must be informed about the product. Evidence must be provided that the required information has been disseminated. 3. Guidance Provides additional non - mandatory information to assist in the preparation of the Products detailed in Section 2. 4. Templates Wherever possible templates for the products will be placed here to enable practitioners to construct the products quickly. Continued on next page PM01(V7.01) Page 13 of 23

3. Structure of the Project Management Manual, Continued Version Control The Project Management Manual was originally published as part of the Guide to Railway Investment Projects as an uncontrolled document in both paper and CD - ROM formats. The latest version of the manual is available on Network Rail s Connect. This version should be used at all times. A CD version is available for those without access to Connect via the Director, Programme Controls, MP&I. Document ownership and revision The Project Management Manual, as part of the Guide to Railway Investment Projects, is formally owned by the Director, Programme Controls, MP&I, who will revise the manual at appropriate intervals. PM01(V7.01) Page 14 of 23

4. Application of GRIP in a multi-project Environment 4.1 Introduction Introduction This section provides further guidance on projects and programmes and their management in the Network Rail context. Specifically it addresses: Context of projects and programmes Definitions of a project, programme, portfolio, workbank and major project Guidance on managing programmes Guidance on how GRIP should be applied on major projects Context Network Rail renews and enhances assets through a variety of project related mechanisms. This section describes how this work is packaged and managed. GRIP is presently tailored to the delivery of infrastructure works. IT and Business change projects and programmes are not specifically covered by this release of GRIP. PM01(V7.01) Page 15 of 23

4.2 Definitions Definitions To enable a common understanding of key terms this section provides definitions for the following: Workbank Project Portfolio Programme Major project Workbank The Workbank is a listing of worksites which the Asset Engineer has identified for completion. It is usually developed after discussion with the maintainers and with due regard to sponsored enhancements and regulatory change. It is usually defined over a number of years so that the development process and resourcing profile can be planned. Project A project is any planned work resulting in a material change to Network Rail s assets including new construction, relocation or alteration, renewal, refurbishment, decommissioning and recovery, and demolition. Portfolio Portfolios are a grouping of not necessarily related projects, which are packaged together to manage their development and delivery, normally in order to allow more effective resource management. Programme A programme is a set of discrete but inter-dependent projects which all lead to the achievement of a common business benefit, e.g. increase in line speed on a section of track to achieve increased revenue. Programmes connect projects and integrate delivery of incremental business benefits. They provide the processes and organisational framework for managing the delivery of strategic business initiatives. These are delivered by a number of projects, (and potentially by line management activity) which Programme Management integrates to obtain and optimise the required business benefits. Continued on next page PM01(V7.01) Page 16 of 23

4.2 Definitions, Continued Major Project A bespoke project, programme or portfolio characterised by its complexity, level of investment and stakeholder involvement. Such a project is likely to have its own project control office established and have a dedicated project team under the direct control of a nominated person. For example, West Coast Route Modernisation is a major project. Characteristics of a Programme Programmes are characterised by: high value with potentially severe impact on business performance and reputation high impact on operations - during implementation and at completion implementation in busy operating units, whilst minimising disruption to existing services competing requirements between current and future business, and capital investment the need for cultural and/or behavioural change in order to realise benefits highly complex - managerially and technically - with diverse multi-disciplinary systems, often extending over wide geography involving development and application of new technology long time periods - typically several years. A programme will generally reflect a number, but not necessarily all of these characteristics. Whilst many of these characteristics also apply to projects, the degree of complexity and ambiguity will be higher with programmes. Benefits of a Programme of Projects The benefits of a programme of projects are: Only projects determined as necessary will be run. This aids the process of prioritisation and ensures unnecessary work does not take place. Increased efficiency by sharing well managed resources and adopting common procedures Reduction of risk by the management of interfaces and interdependencies between projects Delivery of benefits in controlled tranches, ensuring earlier and safer business return on capital More flexibility in the overall route taken to achieve the programme objective. PM01(V7.01) Page 17 of 23

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4.2 Definitions, Continued Comparison of Key Aspects of Projects and Programmes The following list compares key aspects of projects and programmes. Programme Scope, cost and schedule are flexible and subject to change An organisational and management framework which integrates the changes delivered by projects to obtain cumulative business benefits May have a less defined and flexible time horizon Objectives may evolve during definition phase and subsequent delivery in line with evolving business needs Flexible to changes in the business environment Definition of constituent projects evolves during the programme lifecycle Project Clearly defined scope, cost and schedule Discrete management framework with focus on delivering specific changes to assets and/or operations and discrete benefits Fixed time horizon Objectives fixed at the outset that are focused on delivery of an asset and/or change in operations Relatively inflexible to change Clarity of definition at start of each project is vital for success PM01(V7.01) Page 19 of 23

4.3 Application of GRIP to Workbanks Introduction This section of the Manual supplements the guidance given within the Policy Manual of GRIP when managing stage gate reviews (SGRs) for programmes of work. Workbanks are typically managed as Portfolios. However, some components of the Workbank may be managed as part of a Programme, as a Major Project or as a stand-alone Project. Policy Manual Guidance Page 8 of the GRIP Policy manual gives the following guidance: Is it recognised that a renewals workbank can contain a large number of low value, low risk projects for which the preparation of a set of individual GRIP products and stage gate reviews would produce little additional value when compared to the large level of work required to produce them. The GRIP process can therefore be simplified by: 1. Work items can be aggregated for Stage gate Review It is not necessary to review all work items in a workbank separately. Work items may be aggregated for a stage gate review when the following criteria all apply: The work items are of a similar nature and are to be delivered by similar supply arrangements The value of the individual work items are not significantly different from others in the workbank The commercial and technical risks associated with the work items are not significantly different from others in the workbank 2. Decision to aggregate these work items It is envisaged that the proposal to aggregate similar items will be made by the Programme Manager/Project Manager at the regular quarterly or period review meeting of the Workbank with the Sponsor. The Project Manager and Sponsor must agree that this approach will still maintain adequate control of project risks. In these circumstances it is acceptable for a single product to apply to a number of similar work items in the Workbank. 3. All work items must have at least an annual Stage Gate Review All elements of the workbank should be reviewed through a stage gate review at least once at some point during the year. The timing of this review should be at the best time for the individual work item, i.e. at a natural stage gate review point, rather than being immediately prior to the Investment Authorisation paper. PM01(V7.01) Page 20 of 23

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4.3 Application of GRIP to Workbanks, Continued 4. Whole portfolio should be reviewed prior to investment authorisation Immediately prior to the Investment Authorisation submission the whole portfolio should be reviewed to ensure its acceptability. All items for which authorisation is sought must be capable of meeting the appropriate stage gate criteria for the particular authority. 5. It is recommended to review all packages each period It is recommended that packages of works be formally reviewed by the Sponsor/Project Manager at least once in each period and the development stage for each project / site is determined and then reviewed against the planned products for that stage. Grouping Projects Projects within a portfolio of workbank items may be grouped together for management control and stage gate review if the Sponsor and Programme Manager agree that this would enable a more efficient management process. Projects would normally be grouped together for two reasons: Projects will impact the same, or very similar, products e.g. plain line track renewal Projects will go through the same investment authorisation process, e.g. they are all part of an annualised workbank The aim of this grouping is to improve the efficiency of the delivery of projects by removing unnecessary management control processes. It is the Sponsor s decision to aggregate projects in this way. Using Common Products Groups of projects may use common products where the Sponsor deems that this is acceptable and will remove unnecessary management controls. Examples of this could be the use of a common Management Plan or Value Management Study across a Programme or Portfolio of similar projects. PM01(V7.01) Page 22 of 23

4.4 Managing Major Projects Introduction This section of the manual provides further guidance on the management of stage gate reviews (SGR) specifically for major projects. Reviews at Major Project and Work Package/ sub project level In certain circumstances it may be appropriate to undertake stage gate reviews at both the project level and also at the individual work package/sub project level. This may be appropriate where a major project has, for instance, a number of individual discrete projects, which have their own delivery schedule within the overall project schedule. Some major projects, for example the Southern Region Power Upgrade project, have found this of value as undertaking reviews only at the major project level does not identify areas of concern at the work instruction level. The overall project review therefore becomes much more strategic and does not adequately control the actual delivery of changed assets. In this case, both levels of stage gate review should be applied. Projects and Work Instructions at different stages Experience has shown that a major project can be at a certain stage within the investment lifecycle but that individual projects within it may be at different stages. For example as the major project develops new projects will begin which have to start at a lower stage whilst the major project is ongoing at a later stage. In this case the major project is effectively being treated as a programme with individual tranches of projects progressing at independent pace. This approach is only acceptable provided that the business benefits are capable of being realised independently in tranches and with the express approval of the authorising body. In these circumstances, particular attention will need to be given to managing any interdependencies between projects/activities, and these should be highlighted within the Management Plan and reviewed at Stage Gate Reviews. Stage Gate Reviews will be needed at both the Programme and project level. Bespoke SGR forms Major projects may find it advantageous to produce generic stage gate review forms to assist their individual project teams in undertaking stage gate reviews. This may be particularly useful where a project has for example, a number of similar activities undertaken in a number of different geographical locations, e.g. new transformers on a power upgrade project or bridge re-gauging works on a freight-upgrade scheme. PM01(V7.01) Page 23 of 23