Project Management - Project Bailout -

Project Management - Project Bailout - www.ProjectBailout.com 1

Principles of Project Management

How to help make your projects more successful

Project Management - Project Bailout - www.ProjectBailout.com

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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


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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

$


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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


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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.html


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Lectures1 - Introduction to Project Management2 - Project Management Context2’- Project Management for Dummies - Summary3 - Project Management Integration4 - Project Scope Management5 - Project Time Management6 - Project Cost Management7 - Project Quality Management8 - Project Human Resource Management9 - Project Communications Management10 - Project Risk Management11 - Project Procurement Management12 - Project Management as a Profession


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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


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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, [email protected] 20 years managing projects, 818-993-3722 All material will be provided on a CD!

Sign In, Email Addresses etc. Exchange Business Cards


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Mapping Lectures and Lewis Book

1. Introduction to Project Management• Chapter 1 – Introduction to PM

2. Project Management Context• Chapter 5 – Headless Chicken

3. Project Management Integration• Chapter 6 – Project Strategy• Chapter 7 – Implementation Plan

4. Project Scope Management• Chapter 9 – Scheduling

5. Project Time Management6. Project Cost Management7. Project Quality Management8. Project Human Resource Management9. Project Communications Management10. Project Risk Management

• Chapter 811. Project Procurement Management12. Project Management as a Profession

• Chapter 3


CHAPTER 1

Introduction to Project Management


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PM is used in all industries, at all levels


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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


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Why Projects Fail

Poor communications Scope Creep Poor planning Weak business case Lack of management direction &

involvement Incomplete specifications Mismanagement of expectations


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Project versus Program

What is a project? Temporary and unique Definite beginning and end Unique purpose Require resources, often from various areas involve

uncertaintyNote: 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!


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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 manager’s duty to balance these three often competing goals


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Project Management Framework


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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


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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


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Relationship to other disciplines


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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)


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Sample GANTT Chart

ID Task Name

1 Capture Existing

2 Structure

3 Company

4 Case Management

5 P Matters

6 Ramesh

7 User

8 Naming

9 Clean Up

10 Name

11 Normalize

Week -1 Week 1 Week 2 Week 3


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Sample Network Diagram


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Sample Earned Value Chart


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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


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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


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“Lewis Method” Five Phases

1. Definition2. Planning Strategy3. Implementation Planning4. Execution and Control5. 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!


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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


CHAPTER 2

Project Management Context


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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


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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 phase’s budget

IE Overlapping work is done at cost risk to meet schedule FAST TRACKING: projects that have overlapping phases


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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


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Phases of the Project Life Cycle

Phase

Deliverables

Concept Development Implementation Close-Out

Planning Management Plan Project Plan Work Package Completed Work

Financial Preliminary Cost Estimate

Budgetary Cost Estimate

Costs and Over Runs Lessons Learned

Reporting / Decomposition

3-level WBS 6+ level WBS Performance Reports Customer Acceptance


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Project Life Cycle

Determination of Mission Need—ends with Concept Studies Approval

Concept Exploration and Definition—ends 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


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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


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RequirementsProcess

SystemAllocationProcess

ProjectInitiationProcess

ConceptExploration

Process

DesignProcess

ImplementationProcess

InstallationProcess

Operation &Support Process

Verification& Validation

Process

The Waterfall Model of the Software Life

Cycle


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Determine objectiv es,alternatives, & constr aints

Evaluate alter natives,identify & resolv e r isks

Develop & ver ifynext level productPlan next phase

Requirements

Development

Integration

plan

plan

plan

Requirements

Design

validation

validation

SoftwareSystem

Product

Riskanalysis

Riskanalysis

Prototype1Prototype2

Prototype3

Riskanalysis

Concept ofoperation

RequirementsDesign

Code

Unit Test

Integration & TestAcceptance

DetailedDesign

P1

P2

Test

Spiral


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Fast Tracking / Overlap of Processes


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Extreme Programming- Focuses on customer driven changes


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Organizational Structures

TOP?

Bottom


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Critical Success Factors

Critical Success Factors According to the Standish Group’s 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


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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!


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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


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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 team’s 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. ???


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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


Project Management For Dummies – Chapter 2’

Project Management For Dummies

By Stanley E. Portny

ISBN: 0-7645-5283-XFormat: Paper

Pages: 384 PagesPub. Date: October 2000


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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.


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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.


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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.


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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?


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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.


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Why is your project being Done?Who will you need to Involve?What results will you ProduceWhat Constraints Must you Satisfy?What assumptions are you MakingWhat work must be done?When will you start and end each activity?Who’ll perform the project Work?What other Resources will you need?What could go wrong?


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Chapter 18: Ten Ways to Hold People Accountable.

Involve People who really have authorityBe SpecificGet a CommitmentPut it in writing.Emphasize the Urgency and Importance of the

assignmentTell others about the person’s commitmentAgree on a plan for monitoring the person’s work.Monitor the persons work.Always Acknowledge Good PerformanceAct as if you have the authority


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Chapter 19: Ten Steps to Getting Your Project Back on Track.

Determine why project got off trackReaffirm key driversReaffirm Project ObjectivesReaffirm activities remaining to be done.Reaffirm Roles and ResponsibilitiesDevelop a viable scheduleReaffirm Personnel assignmentsDevelop a Risk-Management PlanHold a midcourse Kick-off SessionClosely Monitor Performance


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Chapter 20: Ten Tips for Being a Better Project Manager

Be a “why” personBe a “Can Do” personDon’t AssumeSay what you mean; Mean what you sayView people as allies, not adversariesRespect other peopleThink “big Picture”Think DetailAcknowledge good performanceBe both a manager and a leader


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Rest

Appendix A: Glossary Appendix B: Earned Value Analysis. Index.


CHAPTER 3

Project Management Integration


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Project Integration Management


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Planning and Control Project Plan Development: taking the results of

other planning processes and putting them into a consistent, coherent document—the 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


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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


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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


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Why is your project being Done?Who will you need to Involve?What results will you ProduceWhat Constraints Must you Satisfy?What assumptions are you MakingWhat work must be done?When will you start and end each activity?Who’ll perform the project Work?What other Resources will you need?What could go wrong? (Project Management for Dummies)


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1. Information Security - IntroductionWhy an Information Security Audit?Referenced Documents and Web SitesCustomer Support to AuditAudit Results

2. Tasks and Sub TasksPreparationTechnical ReviewEnd User SampleDiscussion with Responsible ManagementFinal report (Hardcopy, Executive Briefing, 2 CDs, Destroy Working Notes)

3. Project ControlsConfidentialityNeed-to-knowCertificationSecure Storage of ResultsProgress reportingSecurityQuality Assurance

Sample Project Plan – Security Audits


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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 $


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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!


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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


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Integrated Change Control

Integrated change controlinvolves identifying, evaluating, and managing changes throughout the project life cycle Three main objectives of changecontrol:– 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


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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


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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


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More Lewis Points Chapter 7 You don’t 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. Parkinson’s Law: Work will expand to

take the time allowed


CHAPTER 4

Project Scope Management


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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


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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


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Project & Organization Alignment


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Project & Organization Alignment - 2

Stages / Results Ties technology

strategy to mission and vision

Key Business Processes

Scope, Benefits, constraints

Allocates People and $

Strategy

Business Area

Analysis

Project Planning

Resource Allocation


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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


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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


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NPV Sample


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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


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Sample: NPV, ROI, & Payback


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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


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Project Selection Tool: Weighted Scoring


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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 project’s objectives and management

Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project

Defines project’s purpose, products, scope, objectives, constraints, assumptions, risks, organization, reporting structure, priority and completion criteria


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Sample Project CharterProject Title: Information Technology (IT) Upgrade ProjectProject Start Date: March 4, 200 Projected Finish Date: December 4, 2002Project Manager: Kim Nguyen, 691-2784, [email protected] 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


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MoreName Role ResponsibilityWalter Schmidt, CEO Project Sponsor Monitor projectMike Zwack CIO Monitor project, provide staffKim Nguyen Project Manager Plan and execute projectJeff Johnson Director of IT Operations MentorNancy Reynolds VP, Human Resources Provide staff, issue memoto all employees about projectSteve McCann Director of Purchasing Assist in purchasing hardware and softwareSign-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, CIOWe are assuming that adequate staff will be available and committed to supporting thisproject. Some work must be done after hours to avoid work disruptions, and overtimewill be provided. Jeff Johnson and Kim Nguyen, Information Technology Department


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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 project’s 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


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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


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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


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Sample WBS: by product


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Sample WBS: by phase


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Sample WBS: tabular form

1.0 Concept1.1 Evaluate current systems1.2 Define Requirements1.2.1 Define user requirements1.2.2 Define content requirements1.2.3 Define system requirements1.2.4 Define server owner requirements1.3 Define specific functionality1.4 Define risks and risk management approach1.5 Develop project plan1.6 Brief web development team2.0 Web Site Design3.0 Web Site Development4.0 Roll Out5.0 Support


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WBS and GANTT in Project 2000

ID Task Name

1 Start

2 Understand System

3 Collect Existing

4 New Features

5 Feature List

6 Software Requirements

7 Baseline

8 New

9 Version 1.1

10 Review rework

11 Bugs & Problem

12 Web Tool

13 Add

14

11/14

12/24

Nov 9, '03 Nov 16, '03 Nov 23, '03 Nov 30, '03 Dec 7, '03 Dec 14, '03 Dec 21, '03 Dec 28, '03 Jan 4, '04


CHAPTER 5

Project Time Management


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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


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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


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Project Network DiagramCollect Existing

Start: 11/17/03 ID: 3

Fin ish: 11/18/03 Dur: 2 days

Res:

New Features

Start: 11/19/03 ID: 4


Res:

Feature List

Start: 11/21/03 ID: 5

Fin ish: 11/21/03 Dur: 1 day?

Res:

Software Requirements

Start: 11/24/03 ID: 6


Comp: 0%

Baseline

Start: 11/24/03 ID: 7


Res:

New

Start: 12/2/03 ID: 8


Res:

Bugs & Problem

Start: 11/24/03 ID: 11


Comp: 0%

Web Tool

Start: 11/24/03 ID: 12


Res:

Add

Start: 11/26/03 ID: 13


Res:

Start: 11/25/03 ID: 14


Comp: 0%

Understand System

Start: 11/17/03 ID: 2

Fin ish: 11/21/03 Dur: 5 days?

Comp: 0%

Start

Milestone Date: Fri 11/14/03

ID: 1


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Precedence Diagramming Method (PDM)

Activities are represented by boxes Arrows show relationships between

activities Used by most PM software


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Sample PDM

ID

1

2

3

4

5

6

7

8

9

10

11

12

13

14

11/14

12/24

Nov 2, '03 Nov 9, '03 Nov 16, '03 Nov 23, '03 Nov 30, '03 Dec 7, '03 Dec 14, '03 Dec 21, '03 Dec 28, '03 Jan 4, '04 Jan 11, '04


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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


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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


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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


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Tracking using GANTT charts


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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!


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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


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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


CHAPTER 6

Project Cost Management


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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


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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


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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 project’s scope statement that will affect resources?

What is the organization’s 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?


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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


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Type of Estimate

WAG (Wild Ass Guess) Rough Order of Magnitude

(ROM) Budgetary Definitive


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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 orhow long it will take based on performance to date,divide the budgeted cost or time by the appropriateindex.


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)


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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


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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!


CHAPTER 8

Project Human ResourceManagement


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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


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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

Maslow’s Hierarchy of Needs


131

McGregor’s 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 Wilemon’s Influence on Projects

1. Authority: the legitimate hierarchical right to issue orders2. Assignment: the project manager's perceived ability to

influence a worker's later work assignments3. Budget: the project manager's perceived ability to

authorize others' use of discretionary funds4. Promotion: the ability to improve a worker's position5. Money: the ability to increase a worker's pay and benefits6. Penalty: the project manager's ability to cause

punishment7. Work challenge: the ability to assign work that capitalizes

on a worker's enjoyment of doing a particular task8. Expertise: the project manager's perceived special

knowledge that others deem important9. Friendship: the ability to establish friendly personal

relationships between the project manager and others


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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 - Covey’s 7 Habits

Project managers can apply Covey’s 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 don’t make a difference, don’t get proper recognition, aren’t learning anything new, don’t 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


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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)


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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.


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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!Functions

Project A

Project B

Project C

Project K

Project Z

QA 2 5 1 1/2 ½

Software

2 1 ½ ½

3 2 5 ½ 1 ½ 2 1/2

4 2 5 1 6

5 ½ 1 5


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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.


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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


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Project Meals Can be very effective method for team

building Lunches where management pays Friday at 4:00 for Beer and Pizza Bagels with Lox’s

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


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More Advice Project managers should

Treat people with consideration and respect Understand what motivates them Communicate carefully with them

Never confuse people Goal is to enable project team members

to deliver their best work Motivation and morale helps meet

schedules Use Accountability to your benefit

SOMETIMES FIRING A TURKEY HELPS


CHAPTER 9

Project CommunicationsManagement


156

Communications Planning

Communications planning: determining the information and communications needs of the stakeholders

Information distribution: making needed information available in a timely manner

Performance reporting: collecting and disseminating performance information

Administrative closure: generating, gathering, and disseminating information to formalize phase or project completion

Every project should include some type of communications management plan, a document that guides project communications

Creating a stakeholder analysis for project communications also aids in communications planning


157

Communications Management Concept

A description of a collection and filing structure for gathering and storing various types of information

A distribution structure describing what information goes to whom, when, and how

A format for communicating key project information

A project schedule for producing the information Access methods for obtaining the information A method for updating the communications

management plans as the project progresses and develops

A stakeholder communications analysis


158

Communication Interception

Lack of Clear Communications Channels Physical or temporal (time) distance between the

communicator and receiver Difficulties with Technical Language Distracting Environmental Factors (noise) Detrimental Attitudes (hostility, disbelief)


159

Conflict Handling Modes

Withdrawal - retreat or withdraw from an actual or potential disagreement

Forcing - the win-lose approach Smoothing - de-emphasize areas of differences and

emphasize areas of agreement Compromise- use a give-and-take approach Confrontation problem-solving - directly face a

conflict Conflict often produces important results, such as new

ideas, better alternatives, and motivation to work harder and more collaboratively

Groupthink can develop if there are no conflicting viewpoints


160

Running Effective Meetings

Determine if a meeting can be avoided Define the purpose and intended outcome of the

meeting Determine who should attend the meeting

Allow who should, but will not! Provide an agenda to participants before the

meeting Prepare handouts, visual aids, and make

logistical arrangements ahead of time Run the meeting professionally

Use the Agenda to keep it focused Build relationships Follow UP!!!!!!!!!!!!!!!!!!


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Follow Up To A Meeting

Minutes Agreements! Action Items Attendees

Contact Information I prefer minutes within 24 hours and

to Status the Action Items within 7 days


162

Sample Stakeholder Analysis for Project Communications

Stakeholders Customer Management Customer Business Staff Customer Technical Staff Internal Management Internal Business and Technical Staff Training Subcontractor Software Subcontractor


163

Number of Communication Channels = n(n-1)/2


164

Communication Methods


165

Communications Channels


166

Communication Role of the PM


167

Interpersonal Communication

To ensure messages are received and understood, two-way communication is necessary.

Interpersonal communication is the process of sharing information with others.

Three basic elements of interpersonal communication: The sender (or encoder) of the message. The signal or the message. The receiver (or decoder) of the message.

Process of interpersonal communication: Sender determines what information to share and with whom and

encodes the message. Sender transmits the message as a signal to the receiver. The receiver receives the message. The receiver decodes the message to determine its meaning and

then responds accordingly. Communication is successful if the decoded message is the same

as the sender intended.


168

Methods of Communication

Verbal: Advantages:

Timely exchange of information Rapid feedback Immediate synthesis of message Timely closure

Disadvantages: technical jargon especially in complex projects may make verbal communication difficult for non-technical people and other stakeholders.

Three stages of effective verbal communication and presentation: The introduction: Tell them what you're going to tell them. The explanation: Tell them. The summary: Tell them what you just told them.

Non-verbal: Encoding a message without using words. Usually done through body language. Total Message Impact = Words (7%) + Vocal tones (38%) + Facial expressions (55%) PM's may combine vocal and nonverbal factors but must be careful that the two do not

present contradictory messages. Written communication:

The main aim of business writing is that it should be understood clearly when read quickly. The message should be well planned, simple, clear, and direct. Major steps to writing:

Establish the basic purpose of the message. Collect and organize material. Prepare draft. Check the overall structure. Send the message.


169

Macro-Barriers to Successful Communication

Information overload: Keep messages simple and direct. Provide sufficient information but not too much.

Lack of subject knowledge: Must have sufficient knowledge to send message. Must know level of understanding of receiver.

Cultural differences: Meanings and interpretations may vary among different cultures. Encourage team members to learn each other's cultures.

Organizational climate: Minimize the differences associated with status and ego within the

organization. Encourage open and trusting atmosphere.

Number of links: Reduce the number of transmission links. The more links, the more opportunity for distortion. Be aware of entropy. 23-27% of message is lost in upward communication.


170

Perceptions: Sender's view of the receiver: how sender perceives the

receiver's level of knowledge and ability to understand the message.

Receiver's view of the sender: How the receiver personally feels about the sender may influence how carefully the receiver listens.

Message competition: Communicate only when you have the total attention of

the recipient. Try to minimize noise or other factors contributing to

message interference. Project jargon and terminology:

Define project terminology used in messages. Be aware of the use of project terminology and the

intended audience.

Micro-Barriers to Successful Communication


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Types of Project Communications

Interpersonal communication. Communication with public and

community. Formal communication. Informal communication.


172

Communication Channels and Links

The PM must recognize and understand the project's formal communication channels.

Three basic channels of communication: Upward communication (vertically or

diagonally) Downward communication (vertically or

diagonally) Lateral communication (horizontally)


173

Effective Listening

Effective listening is one of the most important skills for a PM to acquire and practice.

It helps develop mutual respect, rapport, and trust among project participants.

Verbal listening behaviors: Asking questions to clarify and gather more information. Paraphrasing what the speaker has said. Summarizing at intervals what the speaker has said to confirm what you have

understood. Asking the speaker for examples. Ascertaining the speaker's feelings and acknowledging them. ("You seem

angry.") Directing the speaker to the most appropriate listener. ("George can best help

you with that.") Non-verbal listening behaviors:

Making eye contact. Being expressive and alert. Moving closer to the speaker. Listening for the intention behind the speaker's communication. Facial expressions, touching, use of space, use of time.


174

Barriers to Effective Listening

The mismatch between our speed of talking (100-400 words per minute) and our speed of thinking (approx. 600 words per minute) makes effective listening tough.

Some of the personal and environmental barriers that influence the overall effectiveness of communication include:

Poor listeners: People do not talk freely when they know the audience isn't listening.

Resistance to the message: People don't like to listen to something that is contrary to their preconceived ideas.

Physical distractions: telephone calls, people coming in and out of office / meetings, etc.


175

Guidelines for Active Listening

Stop talking! Show the speaker you are ready to

listen: Silence: signals you are ready to listen. Few distractions: shut the door, put the

phone on hold, etc. A receptive attitude: empathize with

the speaker's point of view.


176

Performance / Status Reports

Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives Status reports describe where the project

stands at a specific point in time Progress reports describe what the project

team has accomplished during a certain period of time

Project forecasting predicts future project status and progress based on past information and trends

Status review meetings often include performance reporting


177

Developing a Communications Infrastructure

A communications infrastructure is a set of tools, techniques, and principles that provide a foundation for the effective transfer of information

Tools include e-mail, project management software, groupware, fax machines, telephones, teleconferencing systems, document management systems, and word processors

Techniques include reporting guidelines and templates, meeting ground rules and procedures, decision-making processes, problem-solving approaches, and conflict resolution and negotiation techniques

Principles include using open dialog and an agreed upon work ethic


178

Project Portal / Website

What Useful Documents Contact Information Propaganda Test Versions

Why Not Maintenance Cost!


179

Final Project Report

A project or phase of a project requires closure

Administrative closure produces – project archives – formal acceptance – lessons learned Final Free Lunch!


CHAPTER 10

Project Risk Management


181

What is Risk?

A dictionary definition of risk is “the possibility of loss or injury”

Project risk involves understanding potential problems that might occur on the project and how they might impede project success

Risk management is like a form of insurance it is an investment


182

Risk Utility

Risk utility or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff

Utility rises at a decreasing rate for a person who is risk-averse Those who are risk-seeking have a higher tolerance for risk and

their satisfaction increases when more payoff is at stake The risk neutral approach achieves a balance between risk and

payoff


183

Project Risk Management

The goal of project risk management is to minimize potential risks while maximizing potential opportunities. Major processes include

Risk management planning: deciding how to approach and plan the risk management activities for the project

Risk identification: determining which risks are likely to affect a project and documenting their characteristics

Qualitative risk analysis: characterizing and analyzing risks and prioritizing their effects on project objectives

Quantitative risk analysis: measuring the probability and consequences of risks

Risk response planning: taking steps to enhance opportunities and reduce threats to meeting project objectives

Risk monitoring and control: monitoring known risks, identifying new risks, reducing risks, and evaluating the effectiveness of risk reduction


184

Questions in a Risk Management Plan

The risk questions: Why? What? How? When? How Much?


185

Other Types of Risk

Market Risk: Will the new product be useful to the organization or marketable to others? Will users accept and use the product or service?

Financial Risk: Can the organization afford to undertake the project? Is this project the best way to use the company’s financial resources?

Technology Risk: Is the project technically feasible? Could the technology be obsolete before a useful product can be produced?


186

Risk Identification

Risk identification is the process of understanding what potential unsatisfactory outcomes are associated with a particular project

Several risk identification tools and techniques include Brainstorming The Delphi technique Interviewing SWOT analysis


187

Knowledge Area

Integration Scope Time Cost Quality Human Resources Communications Risk Procurement


188

Quantitative Risk Management

Assess the likelihood and impact of identified risks to determine their magnitude and priority Common in Hardware System

Risk quantification tools and techniques include Probability/Impact matrixes The Top 10 Risk Item Tracking Expert judgment


189

Graphical View of Risk


190

Decision Tree and EMV

A decision tree is a diagramming method used to help you select the best course of action in situations in which future outcomes are uncertain

EMV is a type of decision tree where you calculate the expected monetary value of a decision based on its risk event probability and monetary value


191

Simulation

Simulation uses a representation or model of a system to analyze the expected behavior or performance of the system

Monte Carlo analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results

To use a Monte Carlo simulation, you must have three estimates (most likely, pessimistic, and optimistic) plus an estimate of the likelihood of the estimate between the optimistic and most likely values


192

Results


193

Risk Response Planning

After identifying and quantifying risk, you must decide how to respond to them

Four main strategies: Risk avoidance: eliminating a specific threat or risk,

usually by eliminating its causes Risk acceptance: accepting the consequences should

a risk occur Risk transference: shifting the consequence of a risk

and responsibility for its management to a third party

Risk mitigation: reducing the impact of a risk event by reducing the probability of its occurrence


194

Risk Monitoring & Control

Monitoring risks involves knowing their status Controlling risks involves carrying out the risk

management plans as risks occur Workarounds are unplanned responses to risk events that

must be done when there are no contingency plans The main outputs of risk monitoring and control are

corrective action, project change requests, and updates to other plans

Risk response control involves executing the risk management processes and the risk management plan to respond to risk events

Risks must be monitored based on defined milestones and decisions made regarding risks and mitigation strategies

Sometimes workarounds or unplanned responses to risk events are needed when there are no contingency plans


CHAPTER 11

Project ProcurementManagement


196

Project Procurement Management

Procurement planning: determining what, when, and how much to procure

Solicitation planning: documenting product requirements and identifying potential sources

Solicitation: obtaining quotations, bids, offers, or proposals as appropriate

Source selection: choosing from among potential vendors Contract administration: managing the relationship with

the vendor Contract close-out: completion and settlement of the

contract Make-or-buy analysis: determining whether a particular

product or service should be made or performed inside the organization or purchased from someone else.

Often involves financial analysis


197

Types of Contracts

Unit price contracts Time and material contracts Cost reimbursable Fixed price or lump sum


198

Statement of Work SOW

A statement of work is a description of the work required for the procurement

Many contracts, mutually binding agreements, include SOWs

A good SOW gives bidders a better understanding of the buyer’s desires


199

SOW Scope of Work: Describe the work to be done to detail. Specify the

hardware and software involved and the exact nature of the work. Location of Work: Describe where the work must be performed.

Specify the location of hardware and software and where the people must perform the work

Period of Performance: Specify when the work is expected to start and end, working hours, number of hours that can be billed per week, where the work must be performed, and related schedule information.

Deliverables Schedule: List specific deliverables, describe them in detail, and specify when they are due.

Applicable Standards: Specify any company or industry-specific standards that are relevant to performing the work.

Acceptance Criteria: Describe how the buyer organization will determine if the work is acceptable.

Special Requirements: Specify any special requirements such as hardware or software certifications, minimum degree or experience level of personnel, travel requirements, and so on.


200

Solicitation Planning

Solicitation planning involves preparing several documents: Request for Proposals: used to solicit proposals from prospective

sellers where there are several ways to meet the sellers’ needs Requests for Quotes: used to solicit quotes for well-defined

procurements Invitations for bid or negotiation and initial contractor responses

are also part of solicitation planning Request For Qualification: used to get a set of interested vendors

Solicitation involves obtaining proposals or bids from prospective sellers

Organizations can advertise to procure goods and services in several ways

approaching the preferred vendor approaching several potential vendors advertising to anyone interested

A bidders’ conference can help clarify the buyer’s expectations


201

Source Selection

Source selection involves evaluating bidders’ proposals choosing the best one negotiating the contract awarding the contract

It is helpful to prepare formal evaluation procedures for selecting vendors

Buyers often create a “short list”


202

Contract Administration

Contract administration ensures that the seller’s performance meets contractual requirements

Contracts are legal relationships, so it is important that legal and contracting professionals be involved in writing and administering contracts

Many project managers ignore contractual issues, which can result in serious problems


203

Contract Close Out

Contract close-out includes product verification to determine if all

work was completed correctly and satisfactorily

administrative activities to update records to reflect final results

archiving information for future use Procurement audits identify lessons

learned in the procurement process


204

Cost Reimbursable Contracts

Cost plus incentive fee (CPIF): the buyer pays the seller for allowable performance costs plus a predetermined fee and an incentive bonus

Cost plus fixed fee (CPFF): the buyer pays the seller for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs

Cost plus percentage of costs (CPPC): the buyer pays the seller for allowable performance costs plus a predetermined percentage based on total costs


Chapter 12

Project Managementas a Profession


206

PM Career Development Path


207

Project Management Institute (PMI)

Project Management Institute (PMI®) Not-for-profit professional association Over 80,000 members worldwide Established 1969 Global Organization Headquartered in:

Newtown Square, Pennsylvania USA


208

PMP Certification Requirements

Four main requirements for earning PMP certification Having experience working in the field of

project management. You need 4,500 hours with a baccalaureate degree and 7,500 without a degree

Signing a PMP Certificate and Candidate Agreement and Release form

completing the PMP Certification Exam Application and paying a fee of $555 for non-PMI members and $405 for members

Passing the PMP exam


209

PMP Certification (by industry)


210

PM Needs Some Domain Knowledge

No one understands everything well! It helps to be effective project

management if you understand (or once understood) one the domains well! Software Quality etc..

People Skills are required!


211

Discussion

???