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Fundamentals of Project Management

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Title: Project Management: The Players and the Ground Rules Author: kam jugdev Last modified by: FALCON Created Date: 1/15/2001 3:45:02 AM Document presentation format – PowerPoint PPT presentation

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Title: Fundamentals of Project Management


1
Fundamentals of Project Management
  • Dr. George F. Jergeas
  • Project Management Specialization
  • University of Calgary

2
Schedule
  • Day 1
  • Game
  • Introduction
  • PMI stuff
  • Step 1 - Define phase
  • Step 2 - Plan phase
  • Sequence activities
  • Time estimate
  • Day 2
  • Cost estimate
  • Step 3 - Organize phase
  • Select team and PM
  • Step 4 - Control phase
  • Step 5 - Close out phase

3
References
  • This section is based on
  • The 5-Phased Project Management- A Practical
    Planning and Implementation Guide by Joseph Weiss
    and Robert K. Wysocki
  • Construction Project Administration by Edward R.
    Fisk
  • Project Management Institute PMBOK Guide,
    http//www.pmi.org
  • Instructors notes
  • Note Some material is presented in several
    different formats to exemplify ways of
    approaching the tools and techniques

4
Game
  • Your company is to build a single span bridge
    using Lego bricks. The span of the bridge is 90
    cm and the centre point must be at least 10 cm
    higher than the base
  • Bridge must be self-standing and stable enough to
    be measured
  • Time is of the essence to the client and to your
    company

5
(No Transcript)
6
The Blind Men/Women and the Elephant
  • Strong opinions
  • Each is partly right
  • All were wrong
  • Not one of them saw the elephant
  • The moral of the story from a project management
    perspective
  • Many experience or read about an aspect or
    element of project management and think they know
    it ALL
  • Accidental Project Managers are out there in
    great numbers

7
Learning Objectives
Your job!
  • Project Management Basics
  • 9 Knowledge areas
  • Tools and technique
  • When and why you use them
  • Business and social aspects of project management
  • Avoid becoming an Accidental Project Manager
  • The session will not turn you into instant
    project managers
  • Begin to see more of the PM elephant

8
Agenda
  • PART 1 Basic concepts
  • What is project and project management
  • Key terms and concepts
  • Reasons for project failure/success
  • PART 2 Technical aspects
  • 9 project management knowledge areas
  • Inputs, processes, outputs
  • Sample tools and techniques

9
What is a project?
  • A specific, finite task to be accomplished
  • Can be of a long or short term duration
  • Can be large or small task

10
Projects Vary in Size and Scope
  • NASA shuttle launch
  • Building a boat
  • Building a hospital
  • Building renovation and space modification
  • Planning a party or wedding
  • Organizing the Olympic games
  • Developing a new software program
  • Getting a university degree
  • Company mergers

11
Project Characteristics
  • Constant communication across organizational
    boundaries
  • Many people involved, across several functional
    areas
  • Sequenced events
  • Goal oriented
  • Has an end product or service
  • Multiple priorities
  • Complex and numerous activities
  • Unique, one-time set of events
  • Deadlines
  • Start and end dates
  • Identifiable stakeholders
  • Limited resources and budget

12
When is a Project a Project?
  • A task or set of work assignments may be done by
    one or more persons using a simple to do list
  • A task become a project when the characteristics
    of a project begin to dominate and overwhelm
    individuals
  • Unable to meet deadlines, budgets and corporate
    expectations

13
Project Management
  • Project management is a method and/or set of
    techniques based on the accepted principles of
    management used for planning, estimating and
    controlling work activities to reach a desired
    result on time, within budget, and according to
    the project specifications

14
Slack
Monte Carlo Analysis
PCR
EAC
Network diagram
Scope creep
Variance reports
Charter
MSProject
CPM
BCWP, ACWP, ACWS, BCWS
Float
S-Curve
MS Project
Control charts
WBS
OBS, RAM
CPI, SPI
Gantt Chart
Earned value
PERT Chart
RACI
PMP
ABT Workbench
15
What is Project Management?
  • Tools/techniques
  • Processes and methodology
  • More than time, cost and scope
  • Hard and soft skills
  • A discipline evolving towards a profession

16
Business and Social Aspects of Project Management
  • Hard and soft skills
  • Technical aspects of project management
  • Interpersonal skills
  • Influence
  • Politicking
  • Negotiation

17
Project Management
  • Projects and project management are about people
    and teamwork
  • Who does what?
  • Who takes what risk?
  • Who else is involved or interested/affected?

18
Project Management Challenges
  • Lack of a common understanding on the question
    What is project management???
  • Managing stakeholders, expectations, teams,
    projects, uncertainty
  • Measuring project management results
  • Methodology issues

19
Value of Project Management (Why are we doing
this?)
  • Improve project/program/firm performance as
    measured by efficiency, effectiveness
  • Competitive advantage through competency
  • Be more Successful

Because management said so
20
Value of Project Management (Why are we doing
this?)
  • Proactive vs. reactive
  • Root out ill-conceived, directionless projects
  • Increase visibility by providing roadmaps

Because of what marketing/sales promised the
client
21
Project Management Team
  • Project Sponsor(s)
  • Decision maker, funder, champion
  • Project Manager
  • Manages the big picture
  • Project Leads
  • Manage parts of a project

22
Project Management Team
  • Project Team
  • Work on specific tasks
  • Stakeholders
  • Vested interests
  • Many of them
  • Keep them happy

23
Major Causes of Project Failure
  • Projects fail for the following reasons
  • The project is a solution in search of a problem
  • Only the project team is interested in the result
  • No one is in charge
  • There is no project structure
  • The plan lacks detail

24
Major Causes of Project Failure
  • Projects fail for the following reasons
  • The project has insufficient budget and/or
    resources
  • Lack of team communication
  • Straying from original goal
  • The project is not tracked against the plan

25
Major Causes of Project Success
  • Stakeholders are identified
  • Stakeholders expectations are known and met
  • Senior Management support
  • There is a clearly stated purpose and a sound
    plan
  • Goal and objectives are understood and
    communicated

26
Major Causes of Project Success
  • A constructive goal-oriented culture
  • Technically competent team
  • Effective (and committed) team
  • Excellent communication
  • Trust

27
Introduction
Tools techniques are interchangeable between
phases
  • PART 1 Basic concepts
  • What is project management
  • Key terms and concepts
  • Reasons for project failure/success
  • PART 2 Technical aspects
  • 9 project management knowledge areas
  • Inputs, processes, outputs
  • Sample tools and techniques

Use them early often in the project
28
Project Management Knowledge Areas
  • Scope
  • Time
  • Cost
  • Human Resources
  • Communication
  • Procurement
  • Quality
  • Risk Management
  • Integration

INTEGRATION
29
Knowledge Areas and Key Terms
  • A project manager juggles 9 balls (knowledge
    areas) and many tools and techniques

30
Scope Management
KA1
  • Initiate the project
  • Feasibility, market, customer or business need
  • Environmental analysis, business case
  • Project selection practices and management
    decision practices
  • Project link to the firms strategy or corporate
    goals

31
Scope Management
KA1
  • Initiate the project
  • Identify the project manager
  • Develop a charter
  • Formally recognize the existence of the project
  • Include the business need and product
    description, constraints and assumptions
  • Approval to proceed
  • Funding, authority, sponsor

32
Charter links
  • http//web.mit.edu/pm/devcharter.html
  • http//www.cio-dpi.gc.ca/emf/solutions/ProjectChar
    terGuide/CharterGuide e.html
  • http//csintranet.csd.sc.edu/smartstreampro/sschar
    tr.html

33
Charter links
  • http//www.pmi.org/standards/wbscharter.htm
  • http//www.virginia.edu/iscat/PROJECT20CHARTER.h
    tml
  • http//www.stanford.edu/group/AIS-proj/projectchar
    ter.html

34
Scope Management
  • Plan and define the scope in detail
  • Conduct a cost/benefit analysis, consider
    alternatives, get expert opinion and review
    historical databases, brainstorm
  • What is in scope? What is out of scope? What are
    the criteria for completing phases?

35
Scope Management
  • Plan and define the scope in detail
  • Develop a work breakdown structure (WBS)
  • Create a scope statement with assumptions and
    constraints
  • Project justification, product description,
    deliverables, success criteria, scope management
    plan
  • Use for future project decisions

36
Scope Management
  • Verify the scope
  • What is the process and criteria for accepting
    the scope of work delivered?
  • Work results and documents
  • Inspection
  • Acceptance form
  • Control the scope
  • Performance reports, change requests, issues
    management form, scope management plan,
    corrective action, lessons learned

37
Scope Tips
  • Be inclusive involve stakeholders
  • Work on securing and maintaining their commitment
    to the project
  • Commitment funding, approvals
  • Spend more time planning the projectthen follow
    it (with updates of course)

38
Scope Tips
  • Define project success and communicate it
  • Steering committee with authority and decision
    making power
  • Supportive and decisive sponsor

39
Time Management
KA2
  • Purpose Create a realistic schedule with the
    team
  • Identify the activities (tasks)
  • Activities are action steps (HOW) and different
    from deliverables that are tangible results
    (WHAT)
  • Use the WBS and scope statement
  • Develop activity lists and revise the WBS
  • Sequence activities
  • Consider dependencies

40
Time Management
  • Estimate durations (time)
  • Top down, bottom up estimates, Monte Carlo
    simulations
  • Estimating formulae (PERT estimates)
  • Expert opinion
  • Consider resource capabilities
  • Look at similar projects
  • Develop the schedule (Gantt chart)
  • Document assumptions and decisions
  • Use project management scheduling software e.g.
    MS Project

41
Estimating formulae
  • PERT Estimate (weighted average)
  • Pessimistic (4 x Likely) Optimistic/6
  • Pessimistic time to get to work 30 min
  • Optimistic time to get to work 10 min
  • Likely time to get to work 15 minutes
  • PERT Estimate 30 (4x15) 10/6
  • 100/616.6 17 min

42
MS Project HELP
  • Http//www.officeupdate.microsoft.com/welcome/proj
    ect.asp
  • Http//support.microsoft.com/directory/
  • Http//www.woodyswatch.com
  • Http//www.msproject.com

43
Planning Scheduling Software
  • http//www.sea.net.au/project_management/schedulin
    g_tools/
  • http//www.projectkickstart.com/html/psoftware.htm
  • http//www.comp.glam.ac.uk/pages/staff/dwfarthi/pr
    ojman.htm

44
Time Management
  • Control the schedule
  • Performance reports, change requests, time
    management plan, corrective action, lessons
    learned
  • E.g. baseline Gantt chart and then update
  • Frequency
  • Roles and responsibilities
  • Control techniques e.g. meetings, 11

45
Cost Management
KA3
  • Plan resources (people, equipment, materials)
  • Consider WBS, scope statement, organizational
    policies, staff pool
  • Identify resource requirements
  • Cost centers at Your company?
  • Time is money

46
Cost Management
  • Cost budgeting
  • Resource leveling
  • Cost baseline
  • Control costs
  • Performance reports, change requests, cost
    management plan, corrective action, lessons
    learned
  • e.g. budgeted, actual, variance (with explanation)

47
Time and Cost Tips
Measure twice, cut once
  • Its OK to ask. Talk to subject matter experts
  • Avoid single point estimates, use validated range
    estimates
  • Factor in the learning curve, resource
    productivity, experience level etc.

48
Time and Cost Tips
  • Use the appropriate tools, techniques, rules of
    thumb
  • Document assumptions for estimates
  • Negotiate

49
Quality Management
KA4
  • Plan for quality
  • Quality product and quality project management
    practices
  • Quality standards
  • Conform to specifications (project produces what
    it said it would)
  • Fitness for use (satisfy needs)
  • Prevention vs. inspection
  • Plan, do, check, act
  • Benchmark, checklists, flow charts, cause/effect
    diagrams

50
Quality Management
  • Quality management plan
  • Organizational structure, processes, resources,
    procedures, responsibilities to ensure quality
    plan is implemented
  • Quality metrics
  • Checklists
  • Quality Assurance
  • Follow the quality management plan, audits,
    improvements

51
Quality Management
  • Quality control
  • Process and product results
  • Control charts, Pareto diagrams, trend analysis

52
Quality Tips
  • Start with a clear view of quality in mind
  • What is quality?
  • Implications for ALL knowledge areas

53
Human Resources Management
KA5
  • Organizational plan
  • Organizational chart, roles and responsibilities
  • Linkages between project and functional areas,
    and other business units.
  • Staffing needs
  • Unions, human resources department/practices,
    constraints
  • RACI
  • Staffing plan (training, orientation, job
    descriptions, performance evaluations,
    redeployment), project organizational chart

54
RACI Chart
Task Responsible party Accountable to Coordinate with Inform
1
2
55
Human Resources Management
  • Get staff
  • Assess experience, interests, personal
    characteristics, availability
  • Negotiate
  • Beg and borrow but dont steal
  • Develop the team
  • Team building, reward and recognition program,
    support practices
  • Dont control people
  • Managerial control is different from micromanaging

56
Human Resources Management Tips
  • Listen to understand
  • Be responsive
  • Provide positive feedback
  • Act on problems in a timely manner
  • Deal with problems
  • They wont go away, but will get BIGGER
  • Provide constructive criticism
  • Document appropriately
  • Take time to have FUN

57
Communications Management
KA6
  • Develop the project communication plan
  • Stakeholder analysis
  • Information to be shared (to who, what, how,
    when, why)
  • Technology
  • Distribute information
  • Project databases, filing system, software /
    hardware
  • Report up, down and across the firm

Common vocabulary
58
Communications Management
  • Report performance
  • Project plan, work results
  • Project performance reports
  • Variance reports, trend analysis, change requests
  • Report the Good, Bad Ugly
  • Administrative closure
  • Knowledge management
  • Archives
  • Acceptance forms
  • Lessons learned

Hiding things makes it worse!
59
Sample communication formats
  • Status reports
  • Team meetings
  • Project files
  • PR initiatives
  • Newsletters
  • E-mail
  • Databases
  • Website
  • RACI
  • Posters
  • Coffee room chats
  • Milestone celebrations
  • Kickoff meeting
  • Close out meeting
  • Lessons learned sessions
  • Paraphrase Validate
  • Drawings
  • Schedule update

Use what works and fits the situation - but use
them...often
60
Communications Management Tips
  • If you think you have communicated enoughgo back
    and do it again
  • Use different formats
  • Frequently use modes of communication that allow
    you to see the whites of their eyes

61
Risk Management
KA7
  • Identify risks
  • What could go wrong (harm, loss, opportunities
    and threats)
  • Consider ALL knowledge areas
  • Internal and external risks
  • Sources of risk product technology, people
    (misunderstandings, skills), project management
    etc.

Risk management is a process
62
Risk Management
  • Quantify risks
  • Risk interactions, risk tolerance
  • High, Medium, Low (HML) - qualitative
  • Expected Monetary Value (EMV) - quantitative

63
Risk Quantification Technique High, Medium, Low
(HML)
  • Probability of occurrence and impact
  • High, Medium, Low grid
  • Focus on HHs and less on LLs
  • Keep it simple

64
Risk Quantification Technique Expected Monetary
Value (EMV)
  • EMVrisk event probability X risk event value
  • 25 chance of rain X 1,000 impact of damage to
    convertible car interior EMV of 250
  • 75 chance of rain X 1,000 impact of damage to
    convertible car interior EMV of 750

65
Risk Management
  • Develop risk response plan
  • Opportunities and threats to respond to and
    opportunities and threats to accept
  • Avoid eliminate cause
  • Mitigate reduce risk occurrence
  • Accept contingency plans, accept losses
  • Its OK to do any of these
  • Insurance, contingency plans, procurement,
    alternative strategies, contracts
  • Risk management template

66
Risk Management
  • Control risk responses
  • Workarounds (defined as when it hits the fan
    unexpectedly and you need to deal with it then
    and there)
  • Ongoing process of risk management
  • Corrective action
  • Update risk management plan

67
Risk Management Tips
  • Start Risk Management at the beginning of the
    project
  • Review risks throughout the project (e.g. weekly,
    monthly)
  • Update and project schedules, budget, staffing
    etc. as risk management plans are changed

68
Procurement Management
KA8
  • Plan procurement needs (goods and services
    external to the firm that you need to deliver the
    product)
  • Make or buy decisions
  • Contract type options (risk sharing)
  • Solicitation
  • Procurement management plan
  • Vendor selection process and criteria
  • Proposals, contracts, legal issues

69
Procurement Management
  • Select and manage sources (vendors, partners)
  • Negotiations
  • Manage contracts
  • Close contracts
  • Formal acceptance and closure

70
Procurement Tips
  • Develop charters with vendors and partners
  • Rules of the game, conflict management
    guidelines, escalation process
  • Take lead times into account
  • Do risk management on procurement (and all other
    knowledge areas)

71
Integration Management
KA9
  • Pulling all the knowledge areas together
  • As you go through the various project phases,
    consider the links between knowledge areas
  • Plan the plan
  • Execute the plan
  • Project deliverables and project management
    outputs
  • Control the plan

72
5-Step Project Management
73
5 Step Project Management PLANNING
IMPLEMENTATION
CONTROL

ORGANIZE
DEFINE
PLAN
CLOSE
Identify project activities
Determine Personnel Needs
Define Management Style
Obtain Client Acceptance Install
Deliverables Document the Project Issue Final
Report Conduct Post- Implementation Audit
State the Problem
Identify Project Goals
Estimate time and cost
Recruit Project Manger
Establish Control Tools
Recruit Project Team
Prepare Status Reports Review
Project Schedule Issue Change Orders
Sequence Project Activities
List the Objectives
Determine Preliminary Resources
Identify Critical Activities
Organize Project Team
Write Project Proposal
Identify Assumptions and Risks
Assign Work Packages
Project overview WBS
Recruit Criteria Variance
Reports Final Report
Project network
Define Work packages Status Reports
Audit Reports
Critical Path Assign Work
Packages Staff Allocation Reports
74
Step 1- Define the Project
75
Agenda
  • State the problem
  • Develop project goal
  • Develop project objectives
  • Identify assumptions and risks
  • Identify stakeholders
  • Criteria for project success
  • Project Charter/overview document

76
5 Step Project Management PLANNING
IMPLEMENTATION
CONTROL

ORGANIZE
DEFINE
PLAN
CLOSE
Identify project activities
Determine Personnel Needs
Define Management Style
Obtain Client Acceptance Install
Deliverables Document the Project Issue Final
Report Conduct Post- Implementation Audit
State the Problem
Identify Project Goals
Estimate time and cost
Recruit Project Manger
Establish Control Tools
Recruit Project Team
Prepare Status Reports Review
Project Schedule Issue Change Orders
Sequence Project Activities
List the Objectives
Determine Preliminary Resources
Identify Critical Activities
Organize Project Team
Write Project Proposal
Identify Assumptions and Risks
Assign Work Packages
Project overview WBS
Recruit Criteria Variance
Reports Final Report
Project network
Define Work packages Status Reports
Audit Reports
Critical Path Assign Work
Packages Staff Allocation Reports
77
State the Problem/Opportunity
  • Specific questions must be asked before a project
    begins
  • What is the problem and what are the
    opportunities?
  • Do we really need the project?
  • If these questions can not be answered, then
  • Pick the wrong project
  • The project will probably not succeed

78
State the Problem/Opportunity
  • Document the need and the benefits to the
    organization for undertaking the project
  • Short, crisp and to the point
  • Descriptor for those who although not directly
    involved on the project team are indirectly
    involved in supporting the project
  • A need that must be addressed
  • New product, service, process, facility, or
    system
  • It may involve opening a new market

79
Example
  • Membership in PM Association has declined in the
    past four years and attendance at conference has
    declined in the past three years. The viability
    and financial stability of the Association
    depends on maintaining membership and successful
    annual conference.

80
State Project Goal
  • A statement of purpose and direction helps to
    direct the course of the project effort
  • Initiates the project
  • Serves as a point of reference for settling
    disputes and misunderstandings
  • Clarifies expectations
  • Helps in justifying requests for resources

81
Goal Statements
  • Action oriented
  • Short and simple
  • Understandable
  • Prepare and launch the International Space
    Station on April 21, 2000, from Cape Canaveral,
    Florida
  • Connect France and England via a covered tunnel
    and railway under the English Channel, facility
    to be opened to traffic no later than September,
    1996

82
Goal Statements
  • Design and complete pilot testing by March 2002,
    a product accounting software package that
    performs basic financial analyses for the company
  • Obtain a BSc degree in engineering from U of C by
    spring, 2004

83
Example
  • Reverse the downward trend in membership and
    annual conference attendance by organizing a
    highly successful conference

84
Develop Project Objectives
  • Objectives represent major components or
    milestones
  • Objectives are sub-goals
  • Roadmap to aid decision makers understand the
    purpose of the project
  • Basis for determining project time line and
    resource requirements
  • To achieve the goal all objectives must be
    realized

85
Example
  • Develop the Program
  • Set the Conference Site and Date
  • Design and Implement the Marketing Plan

86
Criteria for Evaluating Project Success
  • Project expectations
  • Project on time
  • Within budget
  • According to specifications
  • Happy client

87
Example
  • At least 200 of 450 PM Association membership
    will register to attend
  • At least 50 of previous years conferences
    attendees will attend
  • At least 1.5 of the non-members receiving
    conference brochure will attend
  • At least 5 of the non-member attendees will join
    PM Association

88
Identifying Assumptions and Risks
  • Each objective will have its own risks and
    assumptions
  • Helps think through the project process and
    issues associated with execution
  • Identifies resource needs and issues involving
    resource availability
  • Identifies potential delays and the impact of
    these delays
  • Potential cost overruns can be predicted and
    resolved

89
Example
  • Interest in PM Association can be renewed through
    the annual conference
  • A quality professional program will attract
    members and non-members
  • Key speaker(s) fail to show up or submit written
    paper

90
Risk Management Template
91
Stakeholders
  • Individual or organisations actively involved in
    the project or directly or indirectly affected by
    its execution or results
  • Roles must be identified at the start of the
    project
  • Needs and expectations must be communicated and
    influenced in a positive and constructive manner
    so that the project will be success for all

92
Who are the People Involved?
  • Owner, Contractor, Consultant (in-house and
    outside)
  • Sub-consultants, Subcontractors
  • Suppliers (Vendors)
  • Trade unions
  • End users
  • Operators

93
External Issues
  • Factors within a Project Managers sphere of
    responsibility, but which he or she has no formal
    control or authority over
  • Corporate interests
  • Operating priorities
  • Financial interests
  • Government interests and actions
  • Public interests
  • Economic conditions
  • Social priorities

94
Stakeholders
  • How to find them?
  • Ask who will decide on the success of your
    project
  • How to involve them?
  • Ask for (appropriate) advice
  • Get their buy-in to project plans

95
Stakeholders
  • How to work with them?
  • Active listening
  • Understand their interests and needs
  • Keep everyone informed
  • How to keep them on side?
  • Respond to concerns
  • Manage expectations and make adjustments

96
Common Concerns
  • Political fallout
  • Social, cultural, economic impacts
  • Benefits
  • Training
  • Employment
  • Business opportunity
  • Way of life Just go away!

97
Common Concerns
  • Public Involvement - Right to know
  • Environmental protection and conservation
  • Loss of control
  • Fear of change
  • Power and influence
  • Native land claims

98
Stakeholder Management Process
  • Monitoring
  • Analysis
  • Assessment
  • Applications
  • Educate and communicate
  • Mitigate
  • Compensate
  • Appraisal and feedback

99
Stakeholder Analysis
STAKEHOLDER
Their Objective/Purpose
Their Strategy
Their Potential Impact on the project
How They Operate
Where they gain Support
How to Manage them and your plan for mitigation
Fundamentals of Project Management
Tool Kit
100
Summary
  • Understand the role of the various stakeholders
  • Identify the real nature of each stakeholder and
    their interest in the project
  • Understand their motivation and behaviour

101
Summary
  • Issues external to the project that can impact
    the outcome of a project
  • Project manager should
  • Understand what they are
  • Consider them early
  • Analyze their potential impact
  • Decide which to mitigate and have a plan

102
Summary
  • Assess how they will react to various approaches
  • Remember that projects managed in ignorance of
    External Influences
  • Never get off the ground
  • Mid-flight crash
  • Technical success but commercial failure

103
Charter/Overview Document
  • The define phase focuses on producing a project
    Charter/Overview document which is used as
  • A tool in the initial go/no go decision by
    management
  • A general information document for other managers
  • An early statement of the project goal and
    direction
  • A statement of the problems and opportunities to
    be addressed by the project

104
Charter/Overview Document
  • Once the project is approved for go ahead, the
    Project Charter/Overview becomes the foundation
    for the detailed planning activities which follow
    and
  • Provides a control point for reporting project
    progress and an audit point
  • Reference base for addressing questions and
    conflicts
  • Tool for building the team

105
Project overview Project Name
- PM Conference Project
Manager
Problem/Opportunity Membership in PM
Association has declined in the past four years
and attendance at conference has declined in
past three years. The viability and financial
stability of the organization depends on
maintaining membership and successful annual
conference.
Goal Reverse the downward trend in membership
and annual conference attendance
Objectives 1. Develop the Program 2. Set the
Conference Site and Date 3. Design and Implement
the Marketing Plan
Success Criteria 1. At least 50 of previous
years conferences attendees will attend 2. At
least 150 of 450 members will attend 3. At
least 1.5 of the non-members receiving
conference brochure will attend 4. At least 5
of the non-member attendees will join PM
Assumptions and Risks 1. Interest in PM can be
renewed through the annual conference 2. A
quality professional program will attract members
and non-members 3. Key speaker(s) fail to show
up or submit written paper.
Prepared by Date Approved
by Date
106
Summary
  • When defining a project you should be able to
  • Describe what is expected
  • Define the project characteristics
  • Develop a project Charter/overview
  • Problem statement
  • Project goal and objectives
  • State the risks and assumptions
  • State success criteria

107
Exercise
  • In groups develop a Project Charter/Overview
    document for a project you currently involved
    with
  • Please use Tool Kit attached at the conclusion
    of this book

108
Step 2 - Plan the Project
109
Agenda
  • Work Breakdown Structures (WBS)
  • Estimate Time and Cost

110
5 Step Project Management PLANNING
IMPLEMENTATION
CONTROL
DEFINE
ORGANIZE
PLAN
CLOSE
Identify project activities
Determine Personnel Needs
Obtain Client Acceptance Install
Deliverables Document the Project Issue
Final Report Conduct Post- Implementation Audit
Define Management Style
State the Problem
Identify Project Goals
Estimate time and cost
Recruit Project Manger
Establish Control Tools
Recruit Project Team
Prepare Status Reports Review
Project Schedule Issue Change Orders
Sequence Project Activities
List the Objectives
Identify Critical activities
Determine Preliminary Resources
Organise Project Team
Write Project Proposal
Identify Assumptions and Risks
Assign Work Packages
Project overview WBS
Recruit Criteria Variance
Reports Final Report
Project network
Define Work packages Status Reports
Audit Reports
Critical Path Assign Work
Packages Staff Allocation Reports
111
Work Breakdown Structure (WBS)
  • Reduces complex projects to a series of tasks
    that can be planned
  • WBS represents the project in the form of a
    hierarchy of goal, objectives and activities
  • Identifies activities to be done from beginning
    to completion of the project
  • Foundation for the definition, planning,
    organising and controlling of the project

112
Composition of a Project WBS
Overall goal
Objective
Objective
Objective
Activities
Activities
Activities
113
WBS
  • Activities in the WBS are broken-down until the
    entire project is displayed as a network of
    separately identified activities
  • The breakdown of activities continues until there
    are no overlapping activities

114
WBS
  • Each activity should be
  • Status and completion are easily measured
  • Of a specific time duration with defined
    beginning and end
  • Easy to derive time and cost estimates
  • Of a single purpose and have clearly understood
    deliverables
  • Responsibility for completion clearly assigned

115
The 5-step procedure Example
  • 1. Partition the project into its major
    objectives
  • 1.1 Develop the Program
  • 1.2 Set the Conference Site and Date
  • 1.3 Design and Implement the Marketing Plan

116
The 5-step procedure Example
  • 2. Partition the objectives into activities
  • 1.1 Develop the Program
  • 1.1.1 Establish Theme and Topics
  • 1.1.2 Obtain Speakers
  • 1.1.3 Prepare Handout Materials
  • 1.2 Set the Conference Site and Date
  • 1.2.1 Set Conference Date
  • 1.2.2 Select and Commit Conference Site
  • 1.2.3 Confirm Arrangements
  • 1.3 Design and Implement the Marketing Plan
  • 1.3.1 Develop and Print Conference Brochure
  • 1.3.2 Obtain Label Sets for Direct Mail
  • 1.3.3 Mail Conference Brochures
  • 1.3.4 Receive and Acknowledge Registrations

117
The 5-step procedure Example
  • 3. Check each activity for compliance with
    activity characteristics and further partition
    any that do not comply
  • 1.1.3 Prepare Handouts
  • 1.1.3.1 Obtain Handout Materials from Speakers
  • 1.1.3.2 Prepare and Print Conference Notebook

118
WBS Worksheet -PM Conference
119
Hierarchical Representation
CONFERENCE PLANNING
SITE
MARKETING
PROGRAM
DATE
PLACE
THEME
MATERIALS
SPEAKERS
LISTS
BROCHURE
REGISTER
OBTAIN MATERIALS
PREPARE KITS
DESIGN BROCHURE
MAIL BROCHURE
120
Estimating Activity Time
  • Time to complete a task is random
  • Skill levels and knowledge of the individuals
  • Machine/equipment variations
  • Material availability
  • Unexpected events
  • Illness
  • Strikes
  • Employee turnover and accidents
  • Changed soil/site conditions

121
Estimating Activity Time
  • We know unexpected events and occurrences will
    happen but are unable to predict the likelihood
    with any confidence
  • We must however account for the possibility of
    the occurrence of these events

122
Estimating Activity Time
  • Use a statistical relationship if you can
    estimate
  • Optimistic completion
  • Pessimistic completion time
  • Most likely completion time
  • Can acquire this information from discussions
    with individuals that have first hand experience
    in projects

123
Estimating Activity Time
  • Optimistic Completion Time - is the time the
    activity will take if everything goes right
  • Pessimistic Completion Time - is the time the
    activity will take if everything that can go
    wrong does go wrong but the project is still
    completed
  • Most Likely Completion Time - is the time
    required under normal circumstances
  • It can also be the completion time that has
    occurred most frequently in similar circumstances

124
Estimating Activity Time
  • To compute the expected duration time the
    following formula is used
  • E (O4MP)/6
  • E Expected duration time
  • O Optimistic time
  • M Most likely time
  • P Pessimistic time

125
Estimated times for conference planning
  • ACTIVITY TIME IN WEEKS
  • (O) (M) (P) (E)
  • A Set conference date
  • 1.0 2.0 3.0 2.0
  • B Establish theme program
  • 2.0 5.0 8.0 5.0
  • C Select conference site
  • 4.0 5.0 6.0 5.0
  • D Obtain mailing labels
  • 4.0 6.0 8.0 6.0
  • E Develop brochure
  • 3.0 10.0 11.0 9.0

126
Estimated times for conference planning
  • ACTIVITY TIME IN WEEKS
  • (O) (M) (P) (E)
  • F Obtain mailing labels
  • 3.0 4.5 9.0 5.0
  • G Mail brochure
  • 1.0 2.0 3.0 2.0
  • H Obtain speaker materials
  • 3.0 3.5 7.0 4.0
  • I Receive registrations
  • 4.0 6.0 8.0 6.0
  • J Confirm arrangements
  • 0.5 1.0 1.5 1.0
  • K Prepare conference kits
  • 1.0 2.0 3.0 2.0

127
Sequencing Activities
  • Bar chart
  • Produce a Logical Network
  • Critical Path Method
  • Arrow Diagrams
  • Precedence Diagrams
  • Identify Critical Activities
  • Locate the Critical Path
  • Floats

128
5 Step Project Management PLANNING
IMPLEMENTATION
CONTROL
DEFINE
ORGANIZE
PLAN
CLOSE
Identify project activities
Determine Personnel Needs
Obtain Client Acceptance Install
Deliverables Document the Project Issue
Final Report Conduct Post- Implementation Audit
Define Management Style
State the Problem
Identify Project Goals
Estimate time and cost
Recruit Project Manger
Establish Control Tools
Recruit Project Team
Prepare Status Reports Review
Project Schedule Issue Change Orders
Sequence Project Activities
List the Objectives
Identify Critical activities
Determine Preliminary Resources
Organize Project Team
Write Project Proposal
Identify Assumptions and Risks
Assign Work Packages
129
Bar Charts/Gantt Chart
  • Most projects, however complex, start by being
    depicted on a bar chart. The principles are very
    simple
  • Prepare list of project activities
  • Estimate the time and resources needed
  • Represent each activity by a bar
  • Plot activities on a chart with horizontal time
    scale showing start and end

130
Project Schedule - Sample
Project ____________________
Project Manager ____________________
Date _____________
Sample
131
RACI Charts
  • Responsibility - Action - Coordination -
    Information
  • Identify the roles of participants in each
    element of a project
  • Effective communications road map
  • 4 to 8 weeks look ahead

132
RACI Charts
  • Update weekly to
  • Reset expectations
  • Ensure right people involved in detailed planning
  • Ensure everyone knows what needs to be done by
    whom

133
RACI Charts (F. T. Hartman, 2000)
2.4.5 Major Element Amelia
Drover Fred 2-5
Deliverable_____________________
Manager___________________ Project_________
DATES
A C G C F M J W B D M H F W L
S W E
Budget Actual Budget Actual W/Hrs.
W/Hrs. Cost Cost
ACTION
Activity Another activity Build something
R A A C I I - I C 120
400 - R C I A A I
A - 50
50 R - A C I I - C -
345 1,500 - R C I A
A I A - 127
- R A A C I I - I C
90 9,000 R - A C I
I - C - 55
1,700
Another Item Yet another Design a bit
Design more Sneeze Gesundheit
- A R I C C A I I 455
875 R C A A I C I
- - 200
7,785 - R I I C - - - -
65 -
Another thing Wait for item More stuff Finish
A C R - C I C - - 20
100,000 - I C A A R
I A I 655
- R A - I C I A A A 80
- A I C I I A A
A R 12 100
134
Video The Power of Scheduling
  • How long it takes to build a house?

135
CPM Critical Path Method
  • Graphic network based scheduling technique
  • Arrow Diagrams
  • Precedence Diagrams
  • Use activities created by the WBS process
  • Analysis of timing and sequencing logic
  • Aids in identifying complex interrelationship of
    activities

136
CPM Critical Path Method
  • Allows for easy revision of schedule and
    simulation and evaluation of the impact of
    changes
  • Also used as a control tool during execution of
    the project

137
Producing a Logical Network
  • The sequencing identifies activities that must be
    completed before another activity can start and
    which activities can occur simultaneously.
    Different methods
  • 1. Low-tech approach use post-it labels
  • Each label has one activity written on it
  • Through iterative process the labels can be
    arranged and rearranged

138
Producing a Logical Network
  • 2. Ask yourself the following
  • Which activities must be completed before this
    activity starts?
  • Which activity cannot start until this activity
    is completed?
  • Which activities have no logical relationship
    with this activity and therefore take place at
    the same time (concurrent activities)?

139
Producing a Logical Network
  • 3. Identify immediate predecessor activities,
    which are activities that must be completed
    before another activity can begin

140
Steps in Producing a Networks
  • List the activities
  • Produce a logical network of activities
  • Assess the duration of each activity
  • Produce a schedule - determine the start and
    finish times and the float available for each
    activity

141
Steps in Producing a Networks
  • Determine the time required to complete a project
    and the the longest path on the network
  • The longest path is the Critical Path
  • Assess the resources required

142
Activity sequencing
  • ACTIVITY IMMED. TIME(WEEKS)
  • PRED. (E)
  • A Set conference date - 2.0
  • B Establish theme/program - 5.0
  • C Select conference site A 5.0
  • D Obtain speakers B 6.0
  • E Develop brochure C,D 9.0
  • F Obtain mailing labels C,D 5.0
  • G Mail brochure E,F 2.0
  • H Obtain speaker materials D 4.0
  • I Receive registrations G 6.0
  • J Confirm all arrangements H,I 1.0
  • K Prepare conference kits J 2.0

143
Sample Network
a
c
e
g
i
start
j
k
end
f
b
d
h
144
Activity Times/Critical Path
0
2 7 11 20
5 9 20 22 22
28

2 6 28 29 29
31
2
a 2
c
e
4 6 6 11 11 20
g
i
Start
11 16
20 22 22 28
j1
k2
End
f5
0 5 5 11
11 15
28 29 29 31
b5
d6
h4
15 20
0 5 5 11
24 28
145
Critical Path
  • Calculations for precedence diagrams and arrow
    diagrams are essentially the same
  • Critical path is where there is zero slack time
  • If an activity takes longer than estimated on the
    critical path then the project will be delayed
  • The critical path can change if there is a delay
    that make an alternative path longer

146
Float (Slack)
  • Slack or float time is amount of delay that could
    be tolerated in the start or completion time
    without causing a delay in completion of the
    project
  • Total float or calculations to determine how long
    each activity could be delayed without delaying
    the project
  • Total float LF - ES - duration

147
Summary
  • Critical path identifies the project time
    requirements
  • Slack or float time is amount of delay that could
    be tolerated in the start or completion time
    without causing a delay in completion of the
    project
  • Zero slack time equals the critical path
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