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Project Management A Tool For ATO Success

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Project Management - the Application of Knowledge, Skills, Tools, and Techniques ... Project Management Terms II. Program - A group of related projects managed ... – PowerPoint PPT presentation

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Title: Project Management A Tool For ATO Success


1
Project ManagementA Tool For ATO Success
Presented by Pat A. Eigbe, PMP Office of
Innovations and Solutions, ATO-P February 18, 2004
2
Briefing Outline
  • Project Management (PM) as a Tool
  • Project Management Terminology
  • PM Relationship to other Disciplines
  • Project Management Processes
  • Project Management Tools Techniques
  • Summary/Conclusion
  • Questions

3
Project Management as a Tool
  • Minimize Fire Drills
  • Efficient Use of Resources
  • Develop Better Metrics
  • On-time and On-budget Product Delivery
  • Apply Lessons Learned
  • Better Communications Between Stakeholders
  • Make Proactive Decisions

4
Communications
Understanding our Environment
Tell the Marine to secure a building
they will kill everybody and point guns at the
building.
Tell the Air Force to secure a building
they will drive everybody out and lease the
building to the highest bidder.
Tell the Army to secure a building
they will surround the building and point guns at
the house.
Tell the Navy to secure a building
they will turn off all the lights, lock up the
house, and go home.
5
Project Management (PM) Terms
  • Project - A temporary endeavor undertaken to
    create a unique product or service.
  • ATOP or VSCS - Project has a specific purpose
    with a start and an end date.
  • Project Management - the Application of
    Knowledge, Skills, Tools, and Techniques to
    Project Activities to Meet Project Requirements.

6
Project Management Terms II
  • Program - A group of related projects managed in
    a coordinated way. Programs usually include an
    element of ongoing activity.
  • CPDLC, SMA, URET CCLD, pFAST,as FFP1
  • PM Tools Development as part of Program
    Management
  • A Project/Program Manager (PM) - The Individual
    Responsible for Managing a Project/Program.

7
Project Management Terms III
  • Work Breakdown Structure (WBS) - A
    deliverable-oriented grouping of project elements
    that organizes and defines the total scope of the
    project. Each descending level represents an
    increasingly detailed definition of a project
    work.

8
Project Management Terms IV
  • FAA standard wbs1-0.ppt
  • WBS Dictionary 3.1
  • Requirement to use FAA Standard WBS Mandatory

9
Project Management Terms V
  • Deliverable Tangible, verifiable work
    product/service.
  • Work Package A deliverable at the lowest level
    of the work breakdown structure. A work package
    may be divided into activities.
  • Activity - Work elements with expected duration,
    cost, resources that may be subdivided into
    tasks.

10
Project Management Terms VI
  • Stakeholder Individuals or Organizations that
    will be Impacted by the Outcome of a Project.
  • OBS An Organizational Chart Relating Work
    Packages to Organization Units.
  • Responsibility Matrix Relates Organization
    Structure to WBS Ensures that each Element of
    the Projects Scope is Assigned to a Responsible
    Individual(s).

11
Project Management Relationship to Others
Disciplines
The PMBOK
Project Management Knowledge and Practice
General Management Knowledge and Practice
Application Area Knowledge and Practice
Figure is conceptual and overlaps are NOT
proportional
12
Systems Engineering/PM Relationship I
  • PM Needs SE for
  • Integrated PM System Design Implementation
  • Requirements for HW and SW Tools
  • SE Needs PM for
  • Planning and tracking
  • Managing Resources
  • PM System Designer Must Understand both
  • SE Not Necessary for PM Practitioners

13
Systems Engineering/PM Relationship - II
  • Risk Management
  • PM - Schedule, Cost Technical/Quality
  • SE Compatibility of Components of a System or
    Sub-System
  • Quality Management
  • PM - Process for Producing the Product
  • SE - Ensure Product Meets the Technical or
    Quality Specifications

14
Systems Engineering/PM Relationship - III
  • Configuration Management
  • PM - Ensure Integrity of Schedule and System for
    Schedule Management
  • SE - Ensure Integrity of the System as Designed
  • Change Management
  • PM - Changes to Project Scope
  • SE - Changes to System Requirement
  • Measurement
  • PM Program cost schedule performance
  • SE Technical Performance

15
PMI Certification
  • What is PMP
  • What PMP is not
  • PMP Value to Holder Employer
  • PMP Certification Process link visit
  • http//pm.act.faa.gov

16
PM Process Groups
Project Information Flow
17
PM Process Flow
18
Initiation Processes
  • Identify project and sponsor
  • Appoint Project Manager
  • Train team on
  • Project Management Process
  • Project Plan (PMIP)
  • Develop Program Directive to Include
  • WBS that Covers the Scope
  • High-level Milestones
  • Budget resources

19
Planning Processes I
  • Identify Life Cycle approach
  • Evolutionary (AMS 6101, Section 2.2)
  • Incremental
  • Waterfall
  • Risk Management plan

20
Planning Processes II
  • Get approval for Program Directive
  • Identify quality standards - use specs, IEEE,
    ISO, PMBOK
  • Organizational structure
  • Communications - who needs, what
  • Acquire human resources for projects

21
Planning Processes III (Schedule Development)
  • Update Decompose WBS
  • Identify activities
  • Sequence
  • Estimate duration
  • Estimate cost
  • Allocate resources to work packages
  • Baseline schedule

22
Planning Processes IV
  • Risk management detail
  • Identification
  • Analysis
  • Response
  • Procurement

23
Implementation/Execution Processes
  • Use the PMIP to execute project activities
  • Assess Technical Performance to assure product
    acceptance
  • Distribute project information
  • Make purchases
  • Develop team skills/competencies
  • Develop a Configuration Management plan

24
Performance Measurement
  • Variances
  • Performance Indices
  • Schedule performance Index (SPI)
  • Cost performance Index (CPI)
  • Earned Value Management System (EVMS)

25
Earned Value Management System Highlights
  • What is EVMS
  • Planning for EVMS
  • Tracking Analysis
  • Elements of EV Analysis
  • Project Cost Schedule Forecasting
  • EV Reporting

26
Earned Value Management System (EVMS) - I
  • EV - Tool for Measuring Project Performance
  • Integrates Cost, Scope Schedule measurements
  • Compares work actually accomplished to work
    planned
  • EV is an Early Warning System
  • Helps management make proactive decisions to keep
    projects on course

27
Earned Value Management System (EVMS) - II
  • Involves Calculating 3 key Elements
  • Budget - BCWS
  • Actual Cost - ACWP
  • Earned Value/Physical Progress - BCWP
  • Basis for variance analysis

28
Planning for EVMS - I
  • Create a work breakdown structure
  • Organize work into discrete work packages and
    activities
  • Allocate a budget to each of the activities
  • Develop a schedule and Assign resources
  • Must include all project work in the schedule
  • Establish the Project Baseline

29
Planning for EVMS - II
  • Award performance credit for physical complete
  • 0-100
  • Short duration tasks lt 160 hours
  • EV is Zero until activity is complete
  • 50-100
  • Duration less than 600 hours
  • 50 at start of activity 50 at completion

30
Planning for EVMS - III
  • Interim milestone
  • Duration less than 600 hours
  • Based on completed milestone for task
  • Level of Effort (LOE)
  • Long duration consistent tasks
  • Difficult to measure - no deliverables
  • Measured by duration of time used e.g. 10 weeks
    support is 50 complete at 5 weeks

31
Tracking Analysis
  • Each update cycle/Reporting Period
  • Obtain physical complete for each task
  • Calculate EV for each task
  • Sum up EV for all tasks as project EV
  • Calculate actual expenditure for actual work
    completed during the period
  • Compare the Cumulative EV to Actual expenditure

32
Elements of EV Analysis - I
  • Performance indices relate value of work
    performed to dollar spent. e.g. CPI 0.65 means
    that for every dollar spent, actual value of the
    work performed is 0.65.
  • Cumulative CPI used to forecast project cost at
    completion
  • Cumulative SPI used to forecast project
    completion date

33
Elements of EV Analysis - II
  • Cost Variance - Difference between budgeted cost
    an activity actual cost of that activity
  • CV EV - ACWP
  • Schedule Variance - Difference between scheduled
    completion actual completion of an activity
  • SV EV - BCWS

34
Elements of EV Analysis - III
  • SPI EV/Planned Value
  • SPI gt 1.0, Project Schedule performing as
    planned or better
  • SPI lt 1.0, Project not performing as planned -
    needs help

35
Elements of EV Analysis - IV
  • CPI EV/Actual Cost
  • CPI gt 1.0, Project Cost performing as planned or
    better
  • CPI lt 1.0, Project Cost not performing as planned
    - needs help
  • Over/Under Budget CAC - BCWS

36
Tracking Analysis
  • Each update cycle/Reporting Period
  • Obtain physical complete for each task
  • Calculate EV for each task
  • Sum up EV for all tasks as project EV
  • Calculate actual expenditure for actual work
    completed during the period
  • Compare the Cumulative EV to Actual expenditure

37
Project Cost Schedule Forecast Methods
  • Estimate at Completion (EAC) is total cost to
    complete an activity, work package, or a project
    expressed as
  • EAC Actuals-to-date Estimate to complete
    (ETC)
  • Cost EAC BAC/CPI

38
EV Reporting
  • Interpret the output of EV calculations
  • Take corrective action as necessary
  • Recommend corrective action as necessary

39
Control Processes I
  • Coordinate and control changes to project
  • scope/requirements
  • schedule
  • budget
  • Monitor and manage product quality
  • Measure progress and report performance

40
Control Processes II
  • Monitor and control risks
  • keep track of identified risks
  • monitor residual risks
  • identify new risks
  • ensure execution of risk plans
  • assess effectiveness in reducing risk

41
Closing Processes
  • Close out contracts
  • Resolve any outstanding issues
  • Document lessons learned
  • Evaluate project
  • Archive all project documents

42
Conclusion
  • Defined Frequently used PM Terminologies
  • Discussed Objectives of Adopting Project
    Management Principles.
  • Discussed PM Processes, Tools Techniques
  • Discussed EVMS Overview
  • Questions

43
References
  • Project Management Institute (PMI), 2000. A Guide
    to the Project Management Body of Knowledge (the
    PMBOK Guide)
  • Stratton R. W., 1999. Improving SPI and CPI
    Calculations on LOE Heavy Programs, Proceedings
    of the 30th Annual PMI Seminars Symposium
  • Fleming and Koppeman, 1996. Earned Value Project
    Management.
  • Ibbs W Reginato J., 2002. Quantifying the Value
    of Project Management
  • Kerzner H, 2003. Project Management A Systems
    Approach to Planning, Scheduling, and
    Controlling.
  • FAST _at_ http//fast.faa.gov/wbs/wbssec.htm

44
Questions/Need Help?http//pm.act.faa.gov
  • Pat A. Eigbe, PMP
  • Ext. 5-7857
  • patrick.eigbe_at_faa.gov
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