PROJECT MANAGEMENT

Fundamental Elements

Fundamental QuestionsWHATWHYWHENHOWWHEREWHO

I keep six wise serving men.

(They taught me all I knew).

There names are What & Why & When, and How & Where & Who

(Rudyard Kipling 1902)

Project Management, Business and CustomersBusiness today demands faster projects, decreased

delivery times.Customers want to know what is happening and are more

demanding as they too are under pressure to deliver faster.

This leads to an environment of increased competition. In competitive environments the rewards will go to those

organizations which are more flexible, more in tune with their customers' wants and focused on their main product or service,.

In order to do this all aspects of business (product delivery, profit, growth & market share) need to be optimised.

Why do we need Project Management?

Project management enables organisations to Identifying problems with the project and

enable issues to be escalated which allowsTasks to be done more efficiently by

identifying issues earlier which results in Getting things done more cost-effectively andDelivering projects on time, in budget and to

the right quality.

Which means thatProblems may be managed in a timely manner

so products are delivered to deadlines.Organisations have an opportunity to mitigate

possible cost overrunsCustomers expectations and requirements are

metOrganisations & individuals gain a reputation

for successful delivery which often equates to PROFITS & BONUSESGreater Market Share, less competition,

increased customer confidence etc

What is a Project?An activity of limited durationThe purpose of which is to create some

sort of outcome / deliverableThat has generally not been done before

in terms of client / team/ contract / environment, and

The achievement of which signals completion of the activity.

Typical Project

What is Project ManagementPM is a technique for ensuring that we do the following

systematically…

- scheduling tasks (time management)- defining the work and risks (scope & risk management)- budget specification (cost management) - assigning responsibility for tasks (quality and

organisation)

Plus recognising, analysing and implementing changes in a controlled manner

Project vs Technical ManagementManaging the project is similar for all types

of project,ButManaging the technical aspects can be

different for each project

Systematic Approach

PM Standards & PracticesInternational Bodies (Association of Project

Managers (UK); Project Management Institute (USA)

National / Statutory BodiesSocietiesCompanies

Project PhasesInitiatingPlanningExecutionMonitoring & ControlClose Out

PM Processes & AreasKNOWLEDGE AREAS INITIATING PLANNING EXECUTION

MONITORING & CONTROL

CLOSE OUT

INTEGRATION 1 1 2 2 1SCOPE 4 2TIME 6 1COST 3 1

QUALITY 1 1 1HUMAN RESOURCES 1 3

COMMUNICATION 1 1 1RISK 5 1

PROCUREMENT 1 1 1STAKEHOLDERS 1 1 1 1

2 24 9 11 1

PROCESS GROUP

Project Components – Triple ConstraintTo meet the scope of the project we work

within:Time – schedule, delivery datesC0st – cost of material, resource, servicesQuality – standard to be achieved

You can have it cheap, fast or good – choose any two

Change - Trade Off

Why Project Management

Fundamental PM ElementsRequirements Scope – Work / Product Breakdown StructureOrganisation / Individual Responsible for each

elementPrice / Cost per elementSchedule – Durations & DependenciesChange ControlReporting / CommunicatingDocumentation

Requirements (FACTS)FEASIBLE – able to be satisfied

AMBIGUITY FREE - not vague

COMPLETE – all information available

TESTABLE – able to be verified

SIMPLE – short, concise

If requirements are not defined the project plan is compromised, work can be abortive, work may need to be repeated, price/cost increases, resources are tied up, delivery is late, expectations not met.

Scopethe work that must be done in order to deliver a

product with the specified features and functions A work breakdown structure is a grouping of project

delivery elements that organizes and defines the total scope of the project: work not in the WBS is outside the scope of the project. 

It essential that the scope is defined rigorously or the project will have gaps from the outset. Scope is categorised into component parts which can be assessed for their risk, logical sequence, and who is responsible.

WBS – Marine Fire Systems

Requirements 3rd Party Materials Mechanical System Transport Clash Resolution Component TestsSpecifications Documents COTS Electrical System Insurance Site Attendence FATInterfacing Needs Approval Specialists Control System Storage SATConfiguration System Integration Spares Integrated T& CSystem Level Assembly AcceptanceDetailed Design Packaging ManualsDesign Review ManualsDesign CompleteDesign Verification

PLUS - Project Reports - Invoicing - Mandatory Meetings / Reviews - Other requirements

- Defects Liability

Fabrication Delivery Testing &

Commissioniong

Marine Fire Systems

Installation SupportDesign Approval Procurement

WBSProvides the basis for planning, scheduling, cost

estimating, configuring, monitoring, reporting, directing and controlling the project.

Identify risks associated with each element of the WBS so ‘uncertainties’ made visible.

Aids communication with vendors/team members / management

Essential to breaking down the project into manageable components and assigning risk, owner, duration, cost. Allows change and impact of change to be analysed.

Organisational AspectsOrganisational Breakdown Structure for

delivery/service– indicating responsible person / organisation (& point of contact)

SuppliersInternal Resource / DepartmentExternal Resources / SuppliersClient – yes the Client - as they need to make

decisions/pay and take time for meetings etc.If a delay/overrun/problem is occurring the responsible

party must be identifiable and made accountable to provide a workaround to resolve the problem…this includes the Client

CostEstimates for each element – Budgeted costActual Costs incurred – Payment ReceivedValue of Work DoneProportional costs aggregated for overall progressForecasting

Tracking of costs is essential in the performance of a project commercially. Deviation from forecast must be flagged/escalated so mitigation measures may be instigated in a timely manner.

PM Technique – Earned Value

ScheduleActivities required for project completionDurations of each taskDurations for Approvals / tests Lead timeRegular Milestones based on tangible and

objective events to demonstrate progress.

Essential to ensuring that all work is programmed and sequence is logical. Allows for dependencies to be shown and impacts of change/delays to be analysed.

Basic Project Plan

ChangeClient RequirementsCreeping ScopeCreeping eleganceLack of planningRisks realised

Change is inevitable be it from internal or external agencies. Change means that the original plan may not be valid and re-planning is required affecting cost/time/quality.

Scope CreepLack of clarity or detail in the original

description of scope, objectives, or workWillingness to modify a project without

formal review or approvalAllowing participants who do not do the work

associated with any change to decideFeeling that you should never say “NO” to a

ClientPersonal pride that makes you believe you

can accommodate anything

Reporting / CommunicatingProgress MeetingsRegular Project Reporting (Weekly)Meaningful Reports addressing:Schedule / TimeCostsResourcesChanges / Risks / IssuesProblems and Actions being taken/neededOverall Status

28% of projects fail due to poor communication– A recent research in 2012 conducted by PMI®

Reporting / CommunicatingUse predetermined metrics to measure work doneUse baselines to measure progressStatus reports identifying issues and actions to

resolve issuesEscalate issues when they occur rather than

‘ponder’ (“Contact-wait out” or interim SITREPs)‘No news’ does not mean ‘good news’ on a projectMeetings to ensure messages are communicated

and understood…“I sent an email” has never solved any project

problem

HidingYES YES

NO NO

YES

NO

NO

YES

A risk manifests itself

Problem Avoided

Conceal it before anybody finds out

Bury itGet in first with your

story

Sit tight and hope the risk goes away.

Will it show? Can you hide it?

Can you blame somebody else, circumstances,

client?

Could admission damage your career?

LearningNO YES

YES

NO

A risk manifests itself

Take ownership & assess possible consequences

Take corrective action & inform those affected

Tell somebody in authority

immediately

Cooperate fully to correct risk and

review procedures

Risk Managed

Investigate why mistake occurred

Try to learn from mistakes

Share discovery & improve process

Could admission damage your

career/company?

Is it a flaw in the process /

system?

Project DocumentationProject Plan stating the scope (WBS), how

work will be undertaken and by whom, programme and milestones, quality requirements, risks identified.

Baseline ProgrammeBaseline BudgetBaseline ResourcesProgress Reports measuring progress against

baselinesChange AuthorisationsContract Correspondence

SummaryProject management is a management technique

forGetting things done efficiently /fasterGetting things done right, more cost-effectively.Identifying problems with the project and

escalating issuesProject Management allows for the systematic

planning, organising and controlling of the Project Components of TIME, COST, QUALITY & SCOPE and communicating the status of a project to the participants.

SummaryScope is established from the Requirements and

developed into a WBSWork is allocated to resources and every element of work

has an owner which carries a cost/budgetWork is planned to be carried out in a logical sequence

and a schedule is developedChanges are inevitable and their impact on time, cost

and resources can be analysed against the baseline plan.Reporting against the original plan is essential to

ensuring that the right actions are taken in a timely manner.

Routine and escalation reporting gives visibility on a project

Documentation of the plan and changes ensures that there is visibility and accountability in the management of the project.

What, why, when, how and whereWHO?

Just because there is no ‘project’ in your title does not mean you are not part of a project.

Everybody contributes and plays a part

AfterwordsGood Project Management cannot guarantee

project success, but…Bad or Absent Project Management will

usually result in project failure.People make (or break) projects.

Questions