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4.1.1 Setting the project plan

Project plans need to set parameters that are to be managed. These usually involve three major factors and establishing objectives that stipulate targets and compliance requirements. When delivered in full and on time this suggests the project has conformed to all aspects of quality, cost and time.

Compliance factors include:

1. Scope
The context and the range of variables involved in the project.

2. Quality- Free from variance in performance, standards or specifications
The end result of the project must be fit for the purpose for which it was intended: that is, the specification must be satisfied. This involves Total Quality Management and Total Quality Service in which responsibility for quality is shared by all staff from top management downwards.

3. Cost or Budget
The project must be completed without exceeding the authorised expenditure. Even when a project is undertaken where there is no real profit motive, proper attention to cost budgets and financial management is essential.

4. Time to Completion
Actual progress must match planned progress so that all significant stages of the project occur no later than their specified dates so that final completion occurs on or before the planned date. Time constraints include:

A project costs money every day of its existence (working or non-working, weekday or weekend) from day one to the final payment. Therefore time and cost are interdependent (Lock, 1988:12).

5. Risk
Risk involves the potential harm that may arise from specified options or actions and the current or future consequences relating to the project. Management of risk guides how the project is controlled and how the above variables or compliance factors are managed (see the related topic on risk management).

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