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Principles of Project Management

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Title: Principles of Project Management


1
Principles of Project Management
  • How to help make your projects more successful

2
Why Project Management?
  • Learn from lessons, success, and mistakes of
    others
  • Better understanding of financial, physical, and
    human resources
  • Successful Project Management Contributes to
  • Improved customer relations
  • Shorter development times
  • Lower costs
  • Higher quality and increased reliability
  • Improved productivity
  • Project Management Generally Provides
  • Better internal coordination
  • Higher worker morale

3
Why Projects Fail
  • Communications
  • Misunderstandings
  • Not Talking, Emailing etc.
  • Scope Creep
  • Poor planning
  • Weak business case
  • Lack of management direction involvement
  • Lack of Resources
  • Talking and Not Building
  • Incomplete specifications
  • Excessive Specifications
  • Mismanagement of expectations

4
Project Management Benefits for the Individual
  • Develops leaders in organization with a detailed
    understanding of multiple areas of the
    organization
  • Cross departmental communication and networking
  • Benefits not limited to just the Project
  • Manager, Team members get same exposure
  • Attention from executive management team
  • Reputation of being a team player, problem
    solver, and a get things done person

5
Organization
  • Lectures
  • Presentations
  • Book Chapters
  • And Discussions!
  • Sample Projects
  • Plan, Schedule and Allocate Resources
  • Review
  • Practice Tests
  • Joint Attempt At Questions
  • http//www.yancy.org/research/project_management.h
    tml

6
Lectures
  • 1 - Introduction to Project Management
  • 2 - Project Management Context
  • 2- Project Management for Dummies - Summary
  • 3 - Project Management Integration
  • 4 - Project Scope Management
  • 5 - Project Time Management
  • 6 - Project Cost Management
  • 7 - Project Quality Management
  • 8 - Project Human Resource Management
  • 9 - Project Communications Management
  • 10 - Project Risk Management
  • 11 - Project Procurement Management
  • 12 - Project Management as a Profession

7
Sources Use the Web
  • Project Management Institute www.pmi.org
  • Project World www.projectworld.com
  • Software Program Managers Network www.spmn.com
  • PM forum www.allpm.com
  • ESI International www.esi-intl.com
  • Project Bailout www.ProjectBailout.com
  • Project Management for Dummies
  • Project Planning Scheduling Control, James P.
    Lewis
  • A Hands-on Guide to Bringing Projects in on time
    and On Budget

8
Why are you here?
  • Who are you
  • What is your background?
  • Why
  • What do you want to learn?
  • How much effort?
  • Me
  • Jim Bullough-Latsch, jbl_at_ProjectBailout.com
  • 20 years managing projects, 818-993-3722
  • All material will be provided on a CD!
  • Sign In, Email Addresses etc.
  • Exchange Business Cards

9
Mapping Lectures and Lewis Book
  • Introduction to Project Management
  • Chapter 1 Introduction to PM
  • Project Management Context
  • Chapter 5 Headless Chicken
  • Project Management Integration
  • Chapter 6 Project Strategy
  • Chapter 7 Implementation Plan
  • Project Scope Management
  • Chapter 9 Scheduling
  • Project Time Management
  • Project Cost Management
  • Project Quality Management
  • Project Human Resource Management
  • Project Communications Management
  • Project Risk Management
  • Chapter 8
  • Project Procurement Management
  • Project Management as a Profession
  • Chapter 3

10
CHAPTER 1
  • Introduction to Project Management

11
PM is used in all industries, at all levels
12
Why Project Management?
  • Better control of financial, physical, and human
    resources
  • Accountability
  • Learn from mistakes of others!
  • Improved customer relations
  • More Managed Outcomes
  • Lower costs
  • Higher quality and increased reliability
  • Higher profit margins
  • Improved productivity
  • Better internal coordination
  • Higher worker morale

13
Why Projects Fail
  • Poor communications
  • Scope Creep
  • Poor planning
  • Weak business case
  • Lack of management direction involvement
  • Incomplete specifications
  • Mismanagement of expectations

14
Project versus Program
  • What is a project?
  • Temporary and unique
  • Definite beginning and end
  • Unique purpose
  • Require resources, often from various areas
    involve uncertainty
  • Note temporary does not mean short in duration
  • What is a program?
  • A group of projects managed in a coordinated way
    to obtain benefits not available to managing them
    individually
  • Long Term for a collection of projects
  • Same Techniques Work for Projects, Products,
    Programs!
  • Use them where they work!

15
Triple Constraints Theory
  • Every project is constrained in different ways by
    its
  • Scope goals What is the project trying to
    accomplish?
  • Time goals How long should it take to complete?
  • Cost goals What should it cost?
  • It is the project managers duty to balance these
    three often competing goals

16
Project Management Framework
17
Project Stakeholders
  • Stakeholders are the people involved in or
    affected by project activities
  • Stakeholders include
  • the project sponsor and project team
  • support staff
  • customers
  • users
  • Suppliers and vendors
  • opponents to the project

18
PM Knowledge Areas
  • Knowledge areas describe the key competencies
    that project managers must develop
  • core knowledge areas lead to specific project
    objectives (scope, time, cost, and quality)
  • facilitating knowledge areas are the means
    through which the project objectives are achieved
    (human resources, communication, risk, and
    procurement management
  • knowledge area (project integration management)
    affects and is affected by all of the other
    knowledge areas

19
Relationship to other disciplines
20
PM Tools Techniques
  • Project management tools and techniques assist
    project managers and their teams in various
    aspects of project management
  • 1 communicating with people!!
  • Some specific ones include
  • Project Charter and Work Breakdown Structure
    (WBS) (scope)
  • Gantt charts, network diagrams, critical path
    analysis, critical chain scheduling (time)
  • Cost estimates and earned value management (cost)

21
Sample GANTT Chart
22
Sample Network Diagram
23
Sample Earned Value Chart
24
Points From Lewis Chapter 1
  • A project is a one-time job, as opposed to a
    repetitive activity
  • Disagree, can make repetitive into a series of
    projects
  • Project management is facilitation of the
    planning, scheduling, and controlling of all
    activities that must be done to meet project
    objectives.
  • ???????????
  • Principle Can assign values to only three of the
    PCTS constraints
  • Performance, Cost, Time, Scope
  • Disagree - There are relationship, but it is not
    magic
  • Principle To reduce both cost and time in a
    project, must change the process by which you do
    work.
  • Maybe Understand and control is better than
    change

25
Lewis Principles Chapter 1
  • Principle Improving quality reduces costs.
  • Partially Agree
  • Controlling quality contributes to controlling
    cost
  • Bugs / Errors Cost Money
  • Formal QA Organizations can be negative
  • Good Project Management includes tools, people,
    and systems
  • Tools are not very important!
  • The people who must do the work should develop
    the plan
  • Disagree The people who do the work should
    contribute to the plan, but some project
    management is needed to focus the effort.
  • The Thought process can be applied to any project
    regardless o type or size
  • Agree

26
Lewis Method Five Phases
  • Definition
  • Planning Strategy
  • Implementation Planning
  • Execution and Control
  • Lessons Learned
  • I have only worked at one company that practiced
    this, TRW called it a debriefing or post mortem
  • Usually everyone is gone prior to the completion!

27
Projects for Homework
  • Sample Project
  • Plan, Schedule, and Presentation
  • Develop a brief project plan and top-level
    schedule (MS Project is preferred).
  • Effort at Each Session
  • Discuss Concepts
  • Assign Teams, Choose Subject, Divide work
  • You can do home work to make it better
  • Plan and Document
  • Schedule
  • Coordinate
  • Keep it simple
  • Present for Review
  • Criticize Others
  • Update
  • Project Can Be Anything
  • Suggested Projects - Defaults

28
CHAPTER 2
  • Project Management Context

29
Projects are not Isolated
  • Projects must operate in a broad organizational
    environment
  • Project managers need to take a holistic or
    systems view of a project and understand how it
    is situated within the larger organization
  • Systems View to Project Management
  • Systems philosophy View things as systems,
    interacting components working within an
    environment to fulfill some purpose
  • Systems analysis problem-solving approach
  • Systems management Address business,
    technological, and organizational issues before
    making changes to systems

30
Project Phases
  • Projects are divided up into phases, collectively
    project phases are known as the project lifecycle
  • The Phases often overlap!!!
  • Project phases are marked by completion of one or
    more deliverables
  • Deliverable is a tangible, verifiable work
    product
  • Questions at the end of each phase (known as
    phase exits, kill points, or stage gates)
  • Determine if the project should continue
  • Detect and correct errors cost effectively
  • Deliverables from the preceding phase are usually
    approved before work exceeds 20 of the next
    phases budget
  • IE Overlapping work is done at cost risk to meet
    schedule
  • FAST TRACKING projects that have overlapping
    phases

31
Project Lifecycle
  • Most project lifecycles have common
    characteristics
  • Phases Concept, Development, Implementation,
    Support
  • Cost and staffing levels are low to start and
    higher toward the end and drop rapidly as the
    project draws to conclusion
  • Stakeholders have more influence in the early
    phases of the project
  • Cost of changes and error correction often
    increases as the project continues
  • Some changes can be deferred until after delivery

32
Phases of the Project Life Cycle
33
Project Life Cycle
  • Determination of Mission Needends with Concept
    Studies Approval
  • Concept Exploration and Definitionends with
    Concept Demonstration Approval
  • Demonstration and Validation ends with
    Development Approval
  • Engineering and Manufacturing ends with
    Production Approval
  • Production and Deployment overlaps with
    Operations and Support

34
Systems Development Life Cycles
  • Waterfall model has well-defined, linear stages
    of systems development and support
  • Spiral model shows that software is developed
    using an iterative or spiral approach rather than
    a linear approach
  • Incremental release model provides for
    progressive development of operational software
  • RAD model used to produce systems quickly
    without sacrificing quality
  • Prototyping model used for developing prototypes
    to clarify user requirements

35
The Waterfall Model of the Software Life Cycle

36
Spiral
37
Fast Tracking / Overlap of Processes
38
Extreme Programming- Focuses on customer driven
changes
39
Organizational Structures
40
Critical Success Factors
  • Critical Success Factors According to the
    Standish Groups report CHAOS 2001 A Recipe for
    Success, the following items help IT projects
    succeed, in order of importance
  • Executive support
  • User involvement
  • Experience project manager
  • Clear business objectives
  • Minimized scope
  • Standard software infrastructure
  • Firm basic requirements
  • Formal methodology
  • Reliable estimates

41
Headless Chicken (Lewis)
  • Software Projects 1990s
  • 17 Succeeded
  • 33 Failed
  • 50 Revised
  • Headless Chick is about a bird dying
  • Body keeps moving after head is cut off!

42
More on The Lewis Method
  • Projects often fail at the beginning, not at the
    end.
  • Agree
  • The false consensus effect is a failure to manage
    disagreement, because no knows it exists.
  • Not that important .
  • I think this is also the blind leading the blind
  • Process will always affect task performance.
  • Agree

43
Lewis
  • Write the Mission Statement
  • Write something would be better
  • The first objective for a project manager is to
    achieve a shared understanding of the teams
    mission.
  • Disagree, it is important, but and convincing
    yourself are more important
  • The way a problem is defined determines how we
    attempt to solve it.
  • ???

44
Lewis and Strategy
  • Strategy is an overall approach to a project.
  • Game plan
  • It is best not to employ cutting-edge technology
    in a project that has very tight deadline.
  • It is usually best to use proven technology.
    (period!)
  • It is best to separate discovery from
    development.
  • Agree

45
Project Management For Dummies Chapter 2
  • Project Management For DummiesBy Stanley E.
    PortnyISBN 0-7645-5283-XFormat PaperPages
    384 PagesPub. Date October 2000

46
PART I Defining Your Project and Developing Your
Game Plan.
  • Chapter 1 What Is Project Management? (And Do I
    Get Paid Extra to Do It?).
  • Chapter 2 Defining What You're Trying to
    Accomplish and Why.
  • Chapter 3 Getting from Here to There.
  • Chapter 4 You Want This Done When?
  • Chapter 5 Estimating Resource Requirements.

47
PART II Organizing the Troops.
  • Chapter 6 The Who and the How of Project
    Management.
  • Chapter 7 Involving the Right People in Your
    Project.
  • Chapter 8 Defining Team Members' Roles and
    Responsibilities.

48
PART III Steering the Ship.
  • Chapter 9 Starting Off on the Right Foot.
  • Chapter 10 Tracking Progress and Maintaining
    Control.
  • Chapter 11 Keeping Everyone Informed.
  • Chapter 12 Encouraging Peak Performance.
  • Chapter 13 Bringing Your Project to a Close.

49
PART IV Getting Better and Better.
  • Chapter 14 Dealing with Risk and Uncertainty.
  • Chapter 15 Using the Experience You've Gained.
  • Chapter 16 With All the Great New Technology,
    What's Left for You to Do?

50
PART V The Part of Tens.
  • Chapter 17 Ten Questions to Help You Plan Your
    Project.
  • Chapter 18 Ten Ways to Hold People Accountable.
  • Chapter 19 Ten Steps to Getting Your Project
    Back on Track.
  • Chapter 20 Ten Tips for Being a Better Project
    Manager.

51
Chapter 17 Ten Questions to Help You Plan Your
Project.
  • Why is your project being Done?
  • Who will you need to Involve?
  • What results will you Produce
  • What Constraints Must you Satisfy?
  • What assumptions are you Making
  • What work must be done?
  • When will you start and end each activity?
  • Wholl perform the project Work?
  • What other Resources will you need?
  • What could go wrong?

52
Chapter 18 Ten Ways to Hold People Accountable.
  • Involve People who really have authority
  • Be Specific
  • Get a Commitment
  • Put it in writing.
  • Emphasize the Urgency and Importance of the
    assignment
  • Tell others about the persons commitment
  • Agree on a plan for monitoring the persons work.
  • Monitor the persons work.
  • Always Acknowledge Good Performance
  • Act as if you have the authority

53
Chapter 19 Ten Steps to Getting Your Project
Back on Track.
  • Determine why project got off track
  • Reaffirm key drivers
  • Reaffirm Project Objectives
  • Reaffirm activities remaining to be done.
  • Reaffirm Roles and Responsibilities
  • Develop a viable schedule
  • Reaffirm Personnel assignments
  • Develop a Risk-Management Plan
  • Hold a midcourse Kick-off Session
  • Closely Monitor Performance

54
Chapter 20 Ten Tips for Being a Better Project
Manager
  • Be a why person
  • Be a Can Do person
  • Dont Assume
  • Say what you mean Mean what you say
  • View people as allies, not adversaries
  • Respect other people
  • Think big Picture
  • Think Detail
  • Acknowledge good performance
  • Be both a manager and a leader

55
Rest
  • Appendix A Glossary
  • Appendix B Earned Value Analysis.
  • Index.

56
CHAPTER 3
  • Project Management Integration

57
Project Integration Management
58
Planning and Control
  • Project Plan Development taking the results of
    other planning processes and putting them into a
    consistent, coherent documentthe project plan
  • Project Plan Execution carrying out the project
    plan
  • Integrated Change Control coordinating changes
    across the entire project
  • Influence the factors that create changes to
    ensure they are beneficial
  • Determine that a change has occurred
  • Manage actual changes when and as they occur

59
Project Plan Development
  • A project plan is a document used to coordinate
    all project planning documents
  • Its main purpose is to guide project execution
  • Also helps the Project Management to Express
    their vision
  • Project plans assist the project manager in
    leading the project team and assessing project
    status
  • Project performance should be measured against a
    baseline project plan

60
What is a Project Plan?
  • Common misunderstanding Project Schedule
  • Introduction or overview of the project
  • Description of how the project is organized
  • Management and technical processes used on the
    project
  • Work to be done, schedule, and budget information

61
Chapter 17 Ten Questions to Help You Plan Your
Project.
  • Why is your project being Done?
  • Who will you need to Involve?
  • What results will you Produce
  • What Constraints Must you Satisfy?
  • What assumptions are you Making
  • What work must be done?
  • When will you start and end each activity?
  • Wholl perform the project Work?
  • What other Resources will you need?
  • What could go wrong? (Project Management for
    Dummies)

62
Sample Project Plan Security Audits
1. Information Security - Introduction Why an
Information Security Audit? Referenced Documents
and Web Sites Customer Support to Audit Audit
Results 2. Tasks and Sub Tasks Preparation Technic
al Review End User Sample Discussion with
Responsible Management Final report (Hardcopy,
Executive Briefing, 2 CDs, Destroy Working
Notes) 3. Project Controls Confidentiality Need-to
-know Certification Secure Storage of
Results Progress reporting Security Quality
Assurance
63
More on Project Plan
  • First Page needs to Sell the Project!
  • Plan addresses what, how, which organizations,
    order of magnitude
  • but generally does not whom, when, and exact

64
Stakeholder Analysis
  • A stakeholder analysis documents important (often
    sensitive) information about stakeholders such as
  • stakeholders names and organizations
  • roles on the project
  • unique facts about stakeholders
  • level of influence and interest in the project
  • suggestions for managing relationships
  • Budget and Other Money!

65
Project Plan Execution
  • Project plan execution involves managing
    performing the work described in the project plan
  • Work Authorization System a method ensuring that
    qualified people do work at right time and in the
    proper sequence
  • Common in Aerospace
  • Status Review Meetings regularly scheduled
    meetings used to exchange project information
  • Project Management Software special software to
    assist in managing projects

66
Integrated Change Control
Integrated change control involves identifying,
evaluating, and managing changes throughout the
project life cycle Three main objectives of
change control Influence the factors that
create changes to ensure they are beneficial
Determine that a change has occurred Manage
actual changes when and as they occur
67
Establish Change Control System
  • A formal, documented process that describes when
    and how official project documents and work may
    be changed
  • Describes who is authorized to make changes and
    how to make them
  • Often includes a change control board (CCB),
    configuration management, and a process for
    communicating changes
  • A formal group of people responsible for
    approving or rejecting changes on a project
  • Provides guidelines for preparing change
    requests, evaluates them, and manages the
    implementation of approved changes
  • Includes stakeholders from the entire
    organization

68
Lewis Developing an Implementation Plan
  • The more important a project deadline, the more
    important the plan becomes.
  • Planning versus Plan versus Work
  • Never plan in more detail than control.
  • Agree
  • To ignore probable risk is not a can-do
    attitude but a fool hardy approach to project
    management.
  • Yes/No Need to present positive face to extent
    feasible

69
More Lewis Points Chapter 7
  • You dont worry about the sequence of tasks while
    constructing the WBS.
  • Agree
  • A work breakdown structure does not show the
    sequence in which work is performed!
  • A WBS is a list activities.
  • Parkinsons Law Work will expand to take the
    time allowed

70
CHAPTER 4
  • Project Scope Management

71
What is Scope Management?
  • Scope refers to all the work involved in creating
    the products of the project and processes used to
    create them
  • Project scope management includes the processes
    involved in defining and controlling what is or
    is not included in the project
  • The project team and stakeholders must have the
    same understanding of what products be produces
    as a result of a project and what processes will
    be used in producing them

72
Defining Scope The Process
  • Initiation beginning a project or continuing to
    the next phase
  • Scope planning developing documents to provide
    the basis for future project decisions
  • Scope definition subdividing the major project
    deliverables into smaller, more manageable
    components
  • Scope verification formalizing acceptance of the
    project scope
  • Scope change control controlling changes to
    project scope

73
Project Organization Alignment
74
Project Organization Alignment - 2
  • Stages / Results
  • Ties technology strategy to mission and vision
  • Key Business Processes
  • Scope, Benefits, constraints
  • Allocates People and

75
Project Financial Analysis
  • Financial considerations are often an important
    consideration in selecting projects
  • Three primary methods for determining the
  • projected financial value of projects
  • Net present value (NPV) analysis
  • Return on investment (ROI)
  • Payback analysis

76
Net Present Value (NPV)
  • Net present value (NPV) analysis is a method of
    calculating the expected net monetary gain or
    loss from a project by discounting all expected
    future cash inflows and outflows to the present
    point in time
  • Projects with a positive NPV should be considered
    if financial value is a key criterion
  • The higher the NPV, the better

77
NPV Sample
78
Return on Investment
  • Return on investment (ROI) is income divided by
    investment ROI (total discounted benefits -
    total discounted costs) / discounted costs
  • The higher the realized ROI, the better
  • Too Often, it is hyped
  • Many organizations have a required rate of return
    or minimum acceptable rate of return on
    investment for projects

79
Sample NPV, ROI, Payback
80
Payback Analysis
  • The payback period is the amount of time it will
    take to recoup, in the form of net cash inflows,
    the net dollars invested in a project
  • Payback occurs when the cumulative discounted
    benefits and costs are greater than zero
  • Many organizations want projects to have a fairly
    short payback period

81
Project Selection Tool Weighted Scoring
82
Project Charter
  • After deciding what project to work on, it is
    important to formalize projects
  • A project charter is a document that formally
    recognizes the existence of a project and
    provides direction on the projects objectives
    and management
  • Key project stakeholders should sign a project
    charter to acknowledge agreement on the need and
    intent of the project
  • Defines projects purpose, products, scope,
    objectives, constraints, assumptions, risks,
    organization, reporting structure, priority and
    completion criteria

83
Sample Project Charter
Project Title Information Technology (IT)
Upgrade Project Project Start Date March 4, 200
Projected Finish Date December 4, 2002 Project
Manager Kim Nguyen, 691-2784, knguyen_at_abc.com Pro
ject Objectives Upgrade hardware and software
for all employees (approximately 2,000) within 9
months based on new corporate standards. See
attached sheet describing the new standards.
Upgrades may affect servers and midrange
computers as well as network hardware and
software. Budgeted 1,000,000 for hardware and
software costs and 500,000 for labor
costs. Approach Update the IT inventory
database to determine upgrade needs Develop
detailed cost estimate for project and report to
CIO Issue a request for quotes to obtain
hardware and software Use internal staff as
much as possible to do the planning, analysis,
and installation
84
More
Name Role Responsibility Walter Schmidt, CEO
Project Sponsor Monitor project Mike Zwack CIO
Monitor project, provide staff Kim Nguyen Project
Manager Plan and execute project Jeff Johnson
Director of IT Operations Mentor Nancy Reynolds
VP, Human Resources Provide staff, issue memo to
all employees about project Steve McCann Director
of Purchasing Assist in purchasing hardware and
software Sign-off (Signatures of all above
stakeholders) Comments (Handwritten comments
from above stakeholders, if applicable) This
project must be done within ten months at the
absolute latest. Mike Zwack, CIO We are assuming
that adequate staff will be available and
committed to supporting this project. Some work
must be done after hours to avoid work
disruptions, and overtime will be provided. Jeff
Johnson and Kim Nguyen, Information Technology
Department
85
Scope Statement Planning
  • A scope statement is a document used to develop
    and confirm a common understanding of the
    project.
  • a project justification
  • a brief description of the projects products
  • a summary of all project deliverables
  • a statement of what determines project success
  • helps improve the accuracy of time, cost, and
    resource estimates
  • defines a baseline for performance measurement
    and project control
  • aids in communicating clear work responsibilities

86
Work Breakdown Structure (WBS)
  • After completing scope planning, the next step is
    to further define the work by breaking it into
    manageable pieces
  • A work breakdown structure (WBS) is an
    outcome-oriented analysis of the work involved in
    a project that defines the total scope of the
    project
  • It is a foundation document in project management
    because it provides the basis for planning and
    managing project schedules, costs, and changes

87
Approaches to developing WBS
  • 1. A unit of work should appear at only one place
    in the WBS.
  • 2. The work content of a WBS item is the sum of
    the WBS items below it.
  • 3. A WBS item is the responsibility of only one
    individual, even though many people may be
    working on it.
  • 4. The WBS must be consistent with the way in
    which work is actually going to be performed it
    should serve the project team first and other
    purposes only if practical.
  • 5. Project team members should be involved in
    developing the WBS to ensure consistency and
    buy-in.
  • 6. Each WBS item must be documented to ensure
    accurate understanding of the scope of work
    included and not included in that item.
  • 7. The WBS must be a flexible tool to accommodate
    inevitable changes while properly maintaining
    control of the work content in the project
    according to the scope statement.
  • Cleland, David I. Project Management Strategic
    Design and Implementation, 1994

88
Sample WBS by product
89
Sample WBS by phase
90
Sample WBS tabular form
1.0 Concept 1.1 Evaluate current systems 1.2
Define Requirements 1.2.1 Define user
requirements 1.2.2 Define content
requirements 1.2.3 Define system
requirements 1.2.4 Define server owner
requirements 1.3 Define specific
functionality 1.4 Define risks and risk
management approach 1.5 Develop project plan 1.6
Brief web development team 2.0 Web Site
Design 3.0 Web Site Development 4.0 Roll Out 5.0
Support
91
WBS and GANTT in Project 2000
92
CHAPTER 5
  • Project Time Management

93
Developing a project schedule
  • Project schedules grow out of the WBS
  • Activity definition
  • developing a more detailed WBS to complete all
    the work to be done
  • Activity sequencing
  • Involves reviewing activities and determining
    dependencies
  • Mandatory dependencies inherent in the nature of
    the work hard logic
  • Discretionary dependencies defined by the
    project team soft logic
  • External dependencies involve relationships
    between project and non-project activities
  • You must determine dependencies in order to use
    critical path analysis

94
Project Network Diagrams
  • Project network diagram is one technique to show
    activity sequencing, relationships among
    activities, including dependencies.
  • Sample Activity-on-Arrow (AOA) Network Diagram
    Also called activity-on-arrow

95
Project Network Diagram
96
Precedence Diagramming Method (PDM)
  • Activities are represented by boxes
  • Arrows show relationships between activities
  • Used by most PM software

97
Sample PDM
98
Activity Duration Estimating
  • After defining activities and determining their
    sequence, the next step in time management is
    duration estimating
  • Duration includes the actual amount of time
    worked on an activity plus elapsed time
  • People doing the work should help create
    estimates, and an expert should review them
  • Estimates should be
  • Based on a set of assumptions and collected data
  • Based on the current approved scope and project
    specifications
  • Changed when the scope of the project changes
    significantly
  • Changed when there are authorized changes in
    resources, materials, services, and so forth
  • Budgets are only estimates

99
Schedule Development
  • Schedule development uses results of the other
    time management processes to determine the start
    and end date of the project and its activities
  • Ultimate goal is to create a realistic project
    schedule that provides a basis for monitoring
    project progress for the time dimension of the
    project

100
GANTT Charts
  • Gantt charts provide a standard format for
    displaying project schedule information by
    listing project activities and their
    corresponding start and finish dates in a
    calendar format
  • Symbols include
  • A black diamond milestones or significant events
    on a project with zero duration
  • Thick black bars summary tasks
  • Lighter horizontal bars tasks
  • Arrows dependencies between tasks

101
Tracking using GANTT charts
102
Tracking versus Planning
  • Real world is never the same as the clean paper
  • Too detailed and miss the bigger picture
  • Too high level and are late to respond to
    problems
  • People do not always tell the truth!

103
Critical Path Method
  • CPM is a project network analysis technique used
    to predict total project duration
  • A critical path for a project is the series of
    activities that determines the earliest time by
    which the project can be completed
  • The critical path is the longest path through the
    network diagram and has the least amount of slack
    or float
  • Finding the Critical Path
  • First develop a good project network diagram
  • Add the durations for all activities on each path
    through the project network diagram
  • The longest path is the critical path

104
Program Evaluation and Review Technique PERT
  • PERT is a network analysis technique used to
    estimate project duration when there is a high
    degree of uncertainty about the individual
    activity duration estimates
  • PERT uses probabilistic time estimates based on
    using optimistic, most likely, and pessimistic
    estimates of activity durations
  • PERT weighted average formula
  • (optimistic time 4X most likely time
    pessimistic time)/W
  • (8 workdays 4 X 10 workdays 24 workdays)/6
    12 days

105
CHAPTER 6
  • Project Cost Management

106
Project Cost Management
  • Costs are usually measured in monetary units like
    dollars
  • Project cost management includes the processes
    required to ensure that the project is completed
    within an approved budget
  • Resource planning determining what resources and
    quantities of them should be used
  • Cost estimating developing an estimate of the
    costs and resources needed to complete a project
  • Cost budgeting allocating the overall cost
    estimate to individual work items to establish a
    baseline for measuring performance
  • Cost control controlling changes to the project
    budget

107
Basic Principles of Cost Management
  • Profits are revenues minus expenses
  • Life cycle costing is estimating the cost of a
    project over its entire life
  • Cash flow analysis is determining the estimated
    annual costs and benefits for a project
  • Benefits and costs can be tangible or intangible,
    direct or indirect
  • Sunk cost should not be a criteria in project
    selection

108
Resource Planning
  • The nature of the project and the organization
    will affect resource planning. Some questions to
    consider
  • How difficult will it be to do specific tasks on
    the project?
  • Is there anything unique in this projects scope
    statement that will affect resources?
  • What is the organizations history in doing
    similar tasks?
  • Does the organization have or can they acquire
    the people, equipment, and materials that are
    capable and available for performing the work?

109
Cost Estimating
  • An important output of project cost management is
    a cost estimate
  • It is also important to develop a cost management
    plan that describes how cost variances will be
    managed on the project
  • 3 basic tools and techniques for cost estimates
  • analogous or top-down use the actual cost of a
    previous, similar project as the basis the new
    estimate
  • bottom-up estimate individual work items and sum
    them to get a total estimate
  • parametric use project characteristics in a
    mathematical model to estimate costs

110
Type of Estimate
  • WAG (Wild Ass Guess)
  • Rough Order of Magnitude (ROM)
  • Budgetary
  • Definitive

111
Earned Value Management Terms
  • The planned value (PV), formerly called the
    budgeted cost of work scheduled (BCWS), also
    called the budget, is that portion of the
    approved total cost estimate planned to be spent
    on an activity during a given period
  • Actual cost (AC), formerly called actual cost of
    work performed (ACWP), is the total of direct and
    indirect costs incurred in accomplishing work on
    an activity during a given period
  • The earned value (EV), formerly called the
    budgeted cost of work performed (BCWP), is the
    percentage of work actually completed multiplied
    by the planned value

112
Earned Value Calculations 1 wk
113
Formulas
114
Earned Value Formulas
To estimate what it will cost to complete a
project or how long it will take based on
performance to date, divide the budgeted cost or
time by the appropriate index.
115
CHAPTER 7
  • Project Quality Management

116
What is quality management?
  • The International Organization for
    Standardization (ISO) defines quality as the
    totality of characteristics of an entity that
    bear on its ability to satisfy stated or implied
    needs
  • Other experts define quality based on
  • conformance to requirements meeting written
    specifications
  • Has the problem that specifications are not 100
    complete or correct
  • fitness for use ensuring a product can be used
    as it was intended

117
Quality Management Processes
  • Quality planning identifying which quality
    standards are relevant to the project and how to
    satisfy them
  • Quality assurance evaluating overall project
    performance to ensure the project will satisfy
    the relevant quality standards
  • Quality control monitoring specific project
    results to ensure that they comply with the
    relevant quality standards while identifying ways
    to improve overall quality
  • Modern quality management
  • SIX SIGMA
  • requires customer satisfaction
  • prefers prevention to inspection
  • recognizes management responsibility for quality
  • Noteworthy quality experts include Deming, Juran,
    Crosby, Ishikawa, Taguchi, and Feigenbaum

118
Sample Fishbone or Ishikawa Diagram
119
Pareto Analysis
  • Pareto analysis involves identifying the vital
    few contributors that account for the most
    quality problems in a system
  • Also called the 80-20 rule, meaning that 80 of
    problems are often due to 20 of the causes
  • Pareto diagrams are histograms that help identify
    and prioritize problem areas

120
Standard Deviation
  • Standard deviation measures how much variation
    exists in a distribution of data
  • A small standard deviation means that data
    cluster closely around the middle of a
    distribution and there is little variability
    among the data
  • A normal distribution is a bell-shaped curve that
    is symmetrical about the mean or average value of
    a population

121
QCC, Six Sigma, Rule of 7
  • A control chart is a graphic display of data that
    illustrates the results of a process over time.
    It helps prevent defects and allows you to
    determine whether a process is in control or out
    of control
  • Operating at a higher sigma value, like 6 sigma,
    means the product tolerance or control limits
    have less variability
  • The seven run rule states that if seven data
    points in a row are all below the mean, above,
    the mean, or increasing or decreasing, then the
    process needs to be examined for non-random
    problems

122
Sample Quality Control Chart
123
Reducing Defects with Six Sigma
124
Cost of Quality
  • The cost of quality is
  • the cost of conformance or delivering products
    requirements and fitness for use
  • the cost of nonconformance or taking
    responsibility failures or not meeting quality
    expectations
  • Business Cost per Hour Downtime
  • Automated teller machines (medium-sized bank)
  • Package shipping service
  • Telephone ticket sales
  • Catalog sales center
  • Airline reservation center (small airline)

125
Five Cost Categories Related to Quality
  • Prevention cost the cost of planning and
    executing a project so it is error-free or within
    an acceptable error range
  • Appraisal cost the cost of evaluating processes
    and outputs to ensure quality
  • Internal failure cost cost incurred to correct
    an identified defect before the customer receives
    the product
  • External failure cost cost that relates to all
    errors not detected and corrected before delivery
    to the customer
  • Measurement and test equipment costs capital
    cost equipment used to perform prevention and
    appraisal activities

126
Quality, Security, etc
  • Quality Assurance can often be another tool for
    uncovering cost, schedule, and other project
    problems.
  • When QA says they can not evaluate because there
    is not enough detail, it is a red flag!

127
CHAPTER 8
  • Project Human Resource
  • Management

128
Start With Good People
  • 1 Get Good People Assigned to your project
  • Know who the good people are!
  • 2 You usually get less than your pay for.
  • Cheap people may cost a lot!
  • Expensive consultants usually do not build things

129
Projects and HR?
  • Project human resource management includes the
    processes required to make the most effective use
    of the people involved with a project. Processes
    include
  • Organizational planning
  • Staff acquisition
  • Team development
  • Keys to managing people
  • Psychologists and management theorists have
    devoted much research and thought to the field of
    managing people at work
  • Important areas related to project management
    include
  • motivation
  • influence and power
  • effectiveness

130
Maslows Hierarchy of Needs
131
McGregors Theory X and Y
  • Douglas McGregor popularized the human relations
    approach to management in the 1960s
  • Theory X assumes workers dislike and avoid work,
    so managers must use coercion, threats and
    various control schemes to get workers to meet
    objectives
  • Theory Y assumes individuals consider work as
    natural as play or rest and enjoy the
    satisfaction of esteem and self-actualization
    needs
  • Theory Z introduced in 1981 by William Ouchi and
    is based on the Japanese approach to motivating
    workers, emphasizing trust, quality, collective
    decision making, and cultural values

132
Thamhain and Wilemons Influence on Projects
  • Authority the legitimate hierarchical right to
    issue orders
  • Assignment the project manager's perceived
    ability to influence a worker's later work
    assignments
  • Budget the project manager's perceived ability
    to authorize others' use of discretionary funds
  • Promotion the ability to improve a worker's
    position
  • Money the ability to increase a worker's pay and
    benefits
  • Penalty the project manager's ability to cause
    punishment
  • Work challenge the ability to assign work that
    capitalizes on a worker's enjoyment of doing a
    particular task
  • Expertise the project manager's perceived
    special knowledge that others deem important
  • Friendship the ability to establish friendly
    personal relationships between the project
    manager and others

133
Power
  • Power is the potential ability to influence
    behavior to get people to do things they would
    not otherwise do
  • Types of power include
  • Coercive
  • Legitimate
  • Expert
  • Reward
  • Referent

134
Improving Effectiveness - Coveys 7 Habits
  • Project managers can apply Coveys 7 habits to
    improve effectiveness on projects
  • Be proactive
  • Begin with the end in mind
  • Put first things first
  • Think win/win
  • Seek first to understand, then to be understood
  • Synergies
  • Sharpen the saw

135
Empathic Listening and Rapport
  • Good project managers are empathic listeners
    they listen with the intent to understand
  • Before you can communicate with others, you have
    to have rapport
  • Mirroring is a technique to help establish
    rapport
  • IT professionals often need to develop empathic
    listening and other people skills to improve
    relationships with users and other stakeholders

136
Organizational Planning
  • Organizational planning involves identifying,
    documenting, and assigning project roles,
    responsibilities, and reporting relationships
  • Outputs and processes include
  • project organizational charts
  • work definition and assignment process
  • responsibility assignment matrixes
  • resource histograms

137
Sample Responsibility Assignment Matrix (RAM)
138
Staff Acquisition
  • Staffing plans and good hiring procedures are
    important in staff acquisition, as are incentives
    for recruiting and retention
  • Some companies give their employees one dollar
    for every hour a new person they helped hire
    works
  • Some organizations allow people to work from home
    as an incentive
  • Research shows that people leave their jobs
    because they dont make a difference, dont get
    proper recognition, arent learning anything new,
    dont like their coworkers, and want to earn more
    money

139
Resource Loading
  • Resource loading refers to the amount of
    individual resources an existing project schedule
    requires during specific time periods
  • Resource histograms show resource loading
  • Over-allocation means more resources than are
    available are assigned to perform work at a given
    time

140
Resource Leveling
  • Resource leveling is a technique for resolving
    resource conflicts by delaying tasks
  • The main purpose of resource leveling is to
    create a smoother distribution of resource usage
    and reduce over allocation

141
Team Development MBTI
  • Meyers-Briggs Type Indicator (MBTI) is a popular
    tool for determining personality preferences and
    helping teammates understand each other
  • Four dimensions include
  • Extrovert/Introvert (E/I)
  • Sensation/Intuition (S/N)
  • Thinking/Feeling (T/F)
  • Judgment/Perception (J/P)

142
Social Styles Profiles
  • People are perceived as behaving primarily in one
    of four zones, based on their assertiveness and
    responsiveness
  • Drive
  • Expressive
  • Analytical
  • Amiable
  • People on opposite corners (drive and amiable,
    analytical and expressive) may have difficulties
    getting along

143
Reward and Recognition Systems
  • Team-based reward and recognition systems can
    promote teamwork
  • Focus on rewarding teams for achieving specific
    goals
  • Allow time for team members to mentor and help
    each other to meet project goals and develop
    human resources

144
Organizational Systems
  • Project based Operations consist primarily of
    projects. Two categories
  • Organizations that derive their revenue primarily
    from performing projects for others
    (architectural firms, engineering firms,
    consultants, construction contractors, government
    contractors, etc.)
  • Organizations that have adopted management by
    projects
  • Have management systems such as accounting,
    financial, reporting and tracking in place to
    facilitate project management
  • Non-project based
  • Absence of project-oriented systems generally
    makes project management more difficult.
  • Examples include manufacturing companies,
    financial service firms, etc.

145
Organizational Cultures and Style
  • Culture is reflected in shared values, beliefs,
    norms, expectations, policies, procedures, view
    of authority relationships, etc.
  • Organizational cultures often have a direct
    influence on the project.
  • A team proposing an unusual or high-risk approach
    is more likely to secure approval in an
    aggressive or entrepreneurial organization.
  • A project manager with a highly participative
    style may encounter problems in a rigidly
    hierarchical organization while a project manager
    with an authoritarian style may be equally
    challenged in a participative organization.
  • Project managers need to be aware of the
    organization's cultures and style.

146
Organizational Structure types
  • Functional
  • A hierarchy where each employee has one clear
    superior.
  • Staff are grouped by specialty, such as
    production, marketing, engineering, and
    accounting.
  • Project work is done independently within each
    department.
  • Project Expeditor (PE)
  • The project expeditor acts as a staff assistant
    to the executive who has ultimate responsibility
    for the project.
  • The workers remain in their functional
    organizations and provide assistance as needed.
  • The PE has little formal authority. The PE's
    primary responsibility is to communicate
    information between the executive and the
    workers.
  • Most useful in the traditional functional
    organization where the project's worth and costs
    are relatively low.
  • Project Coordinator (PC)
  • Project expeditor is moved out of facilitator
    position into a staff position reporting to a
    much higher level in the hierarchy.
  • The project coordinator has more authority and
    responsibility than a PE.
  • The PC has the authority to assign work to
    individuals within the functional organization.
  • The functional manager is forced to share
    resources and authority with the PC.
  • The size of projects in terms of dollars is
    relatively small compared to the rest of the
    organization.

147
Matrix
  • Maintains the functional (vertical) lines of
    authority while establishing a relatively
    permanent horizontal structure to interact with
    all functional units supporting the projects.
  • One result of the matrix is that workers
    frequently find themselves caught between the
    project manager and their functional manager.
  • Advantages Improved PM control over resources,
    rapid response to contingencies, improved
    coordination effort across functional lines,
    people have a "home" after the project is over,
    etc. (See Principles of PM, pg. 18)
  • Disadvantages Not cost effective due to excess
    administrative personnel, workers report to
    multiple bosses, more complex structure to
    monitor and control, higher potential for
    conflicts due to differing priorities, power
    struggles, and competition for resources, etc.
    (See Principles of PM, pg. 19)

148
Matrix Staffing!
149
Matrix Types
  • Weak matrix Maintains many of the
    characteristics of a functional organization. The
    project manager's role is more like that of a
    project coordinator or project expeditor.
  • Balanced matrix In-between weak and strong. The
    project manager has more authority than in a weak
    matrix. The PM is more likely to be full-time
    than part-time as in a weak matrix.
  • Strong matrix Similar in characteristics to a
    projectized organization. There is likely to be a
    department of project managers which are
    full-time.

150
Projectized
  • Team members are often collocated.
  • Most of the organization's resources are involved
    in project work.
  • Project managers have a great deal of
    independence and authority.
  • Departments either report directly to the project
    manager or provide services to the various
    projects.

151
Project Manager Roles and Responsibilities
  • Integrator
  • PM is the most likely person who can view both
    the project and the way it fits into the overall
    plan for the organization.
  • Must coordinate the efforts of all the units of
    the project team.
  • Communicator
  • Communicates to upper management, the project
    team, and other stakeholders.
  • The PM who fails to decipher and pass on
    appropriate information to the appropriate people
    can become a bottleneck in the project.
  • The PM has the responsibility of knowing what
    kind of messages to send, who to send them to,
    and translating the messages into a language
    understood by all recipients.
  • Team Leader
  • Must be able to solve problems
  • Guide people from different functional areas
  • Coordinate the project to show leadership
    capabilities
  • Decision Maker
  • Makes key decisions such as allocation of
    resources, costs of performance and schedule
    tradeoffs, changing the scope, direction or
    characteristics of the project.
  • This is an important role with significant
    consequences for the project as a whole.
  • Climate Creator or Builder
  • The PM should attempt to build a supportive
    atmosphere so that project team members work
    together and not against one another.
  • Seek to avoid unrest and negative forms of
    conflict by building supportive atmosphere early.

152
General Advice on Teams
  • Focus on meeting project objectives and producing
    positive results
  • Make sure everyone understands the goals
  • Fix the problem instead of blaming people
  • Establish regular, effective meetings
  • Use PM tools and reports to help focus
  • Remember the product is important, not the paper
  • Nurture team members and encourage them to help
    each other
  • Acknowledge individual and group accomplishments
  • Free Lunch etc.
  • Establish accountability

153
Project Meals
  • Can be very effective method for team building
  • Lunches where management pays
  • Friday at 400 for Beer and Pizza
  • Bagels with Loxs
  • Can be a hassle and negative
  • Christmas Dinners
  • Upper Management plus/minus
  • Tailored to Team / Location
  • Pot Luck , Hotdogs/Sandwiches at the Park,
    Expensive Lunch

154
More Advice
  • Project managers should
  • Treat people with consideration and respect
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