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1 © The Delos Partnership 2004
Welcome to the Project Management Foundation Course
Based on the Project Management Body of Knowledge (PMBOKTM) from the
Project Management Institute (PMI®).
2 © The Delos Partnership 2004
The Project Management Institute (PMI®) is project
management’s leading global professional
association, and as such, it administers a
globally accepted and recognised, rigorous,
examination-based, professional certification
programme of the highest calibre.
3 © The Delos Partnership 2004
The course is designed to support both the
immediate practical challenges you face
implementing projects within your organisation
and also to provide you with a solid foundation in
recognised good project management practice
for all your future endeavours.
4 © The Delos Partnership 2004
Expectations!
5 © The Delos Partnership 2004
Course ObjectivesCourse Objectives
• To provide you with a strong foundation in good project management practices
• To improve the management of the current projects you are working on for the benefit of the company
• To fulfil the eligibility criteria (and prepare students) for the PMI’s® Certified Associate in Project Management (CAPM®) Exam
6 © The Delos Partnership 200418/04/23
Active Learning Approach – Active Learning Approach – The Project Management Life CycleThe Project Management Life Cycle
• Presentation on Key Concepts/Techniques
• Case Study to reinforce key learnings
• Case Study Feedback with interactive Q&A
• Learning Review
Theory&
Practice
7 © The Delos Partnership 2004
IntroductionIntroduction
• At the end of this session you will have an understanding of the following:-
• The definition of a project
• Projects versus Programmes
• The PMI lifecycle and knowledge areas
8 © The Delos Partnership 2004
The Project Life CycleThe Project Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
9 © The Delos Partnership 2004
And The PMI® Project And The PMI® Project Management Knowledge AreasManagement Knowledge Areas
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. Project4. ProjectIntegration Integration
ManagementManagement
4. Project4. ProjectIntegration Integration
ManagementManagement
5. Project5. ProjectScopeScope
ManagementManagement
5. Project5. ProjectScopeScope
ManagementManagement
6. Project6. ProjectTimeTime
ManagementManagement
6. Project6. ProjectTimeTime
ManagementManagement
7. Project7. ProjectCostCost
ManagementManagement
7. Project7. ProjectCostCost
ManagementManagement
8. Project8. ProjectQualityQuality
ManagementManagement
8. Project8. ProjectQualityQuality
ManagementManagement
9. Project9. ProjectHuman ResourceHuman Resource
ManagementManagement
9. Project9. ProjectHuman ResourceHuman Resource
ManagementManagement
10. Project10. ProjectCommunicationsCommunications
ManagementManagement
10. Project10. ProjectCommunicationsCommunications
ManagementManagement
11. Project11. ProjectRiskRisk
ManagementManagement
11. Project11. ProjectRiskRisk
ManagementManagement
12. Project12. ProjectProcurementProcurementManagementManagement
12. Project12. ProjectProcurementProcurementManagementManagement
10 © The Delos Partnership 200418/04/23
What is a Project?What is a Project?
A project is a group of related work activities, organized under the direction of a project manager, which when carried out, will achieve certain objectives. A project has stated scope, deliverables, work steps, duration, and budget.
11 © The Delos Partnership 200418/04/23
What is a Project?What is a Project?
A project:– Is unique– Has a beginning and an end– Is defined by specific objectives– Is conducted by a well-defined organization– Has a single project manager who is
responsible for its success– Is defined by identifying the starting point
and the goal and the route between them
12 © The Delos Partnership 200418/04/23
What is Project What is Project Management?Management?Project Management is the application of knowledge,
skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Meeting or exceeding needs invariably involves balancing competing demands among:– Scope, time, cost, and quality– Stakeholders with differing needs and
expectations– Identified requirements (needs) and unidentified
requirements (expectations)Source:Project Management Institute 1996
© The Delos Partnership 200418/04/23
Programme vs ProjectsProgramme vs Projects
– A programme is a group of projects managed in a coordinated way
– A programme is a set of activities / initiatives that need to come together to achieve a major business change
© The Delos Partnership 200418/04/23
Without a Programme MgmtFramework
•Strategic Imperatives
•Mergers & Acquisitions
•Business Process Changes
•Regulatory Changes
•Market Driven Changes
Change Drivers
?
Many projects, little alignment
Organisation Goal
Past Future
© The Delos Partnership 200418/04/23
With a Programme MgmtWith a Programme Mgmt Framework Framework
Past Future
•Strategic Imperatives
•Mergers & Acquisitions
•Business Process Changes
•Regulatory Changes
•Market Driven Changes
Change Drivers
?
Programme Mgmt
Focus on closinggap and seekingother improvementopportunities
Programme co-ordination
Organisation Goal
16 © The Delos Partnership 2004
Project InitiationProject Initiation
At the end of this session you will have an understanding of the following:-
• 4 Stages within Project Initiation
• The Business Filters
• Project Charter(s)
17 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
18 © The Delos Partnership 2004
PMI® Initiating ProcessesPMI® Initiating Processes
5.1 Initiation
5.1 Initiation
Business Case
Business Case CharterCharterInitial
Invest.
Initial Invest.IdeaIdea
19 © The Delos Partnership 2004
Ideas - Pick the WinnersIdeas - Pick the Winners
BIs
UIs
GIs
(Business Imperatives)
(Good Ideas)
(Useless Ideas)
20 © The Delos Partnership 2004
Potential for Potential for GlobalisationGlobalisation
Supports Supports Regional Regional customer basecustomer base
Supports Supports country country customer customer basebase
LLocal ocal customerscustomers
Geographic Geographic ScopeScope
Significantly Significantly enhances enhances skillsskills
Builds on Builds on current skills current skills to growto grow
Contributes Contributes to strategic to strategic planplan
Does not Does not enhance enhance skillsskills
Competency Competency ImproveImprove`̀tt
Could be Could be applied widely applied widely across the across the businessbusiness
Could be Could be adapted adapted to to several several programmesprogrammes
CCould be ould be applied to applied to another another programmeprogramme
SSingle ingle progprog..
Synergy Synergy with Other with Other ProgsProgs
Opens up new Opens up new OpportunityOpportunity
Potential for Potential for diversificationdiversification
OOpportunity pportunity for business for business extensionextension
Dead-end, Dead-end, Platform for Platform for GrowthGrowth
StrongStrongGoodGoodModestModestPPeripheraleripheralFit to Fit to StrategyStrategy
RATINRATINGG STRATEGIC FITSTRATEGIC FIT 1 1 4 4 7 7 1 100
KEY KEY FACTORSFACTORS
21 © The Delos Partnership 2004
Uses Uses existing existing sales & sales & distribdistrib..
EExisting sales xisting sales operationsoperations
Existing skills Existing skills in new in new channelchannel
SSkills kills needed, needed, in new in new channelchannel
Sales & Sales & DistributionDistribution
Positive Positive impactimpact
FavourableFavourableNeutralNeutralNegativeNegativeCommunity Community RelationsRelations
Large Large margins; margins; large large marketmarket
Large Large margins; margins; small marketsmall market
Small Small margins; large margins; large marketmarket
Small Small margins; margins; small small marketmarket
Target Target Market Market OpportunityOpportunity
LowLowModerate/LowModerate/LowModerate/HighModerate/HighHighHighCompetitive Competitive IntensityIntensity
High High Growth Growth expectedexpected
Modest Modest growthgrowth
Mature or Mature or EmbryonicEmbryonic
DecliningDecliningMarket Market MaturityMaturity
AAhead of head of marketmarket
‘ ‘me too’me too’Need must be Need must be highlightedhighlighted..
LLittle ittle apparent apparent needneed
Market NeedMarket Need
RATINGRATING MARKET ATTRACTIVENESSMARKET ATTRACTIVENESS 1 1 4 4 7 7 1010
KEY KEY FACTORSFACTORS
22 © The Delos Partnership 2004
Widely Widely practised in practised in the companythe company
Selectively Selectively practised in practised in the the companycompany
Some Some experienceexperience
Technology Technology new to new to businessbusiness
Technology Technology Skill BaseSkill Base
Available Available and readyand ready
Available, Available, need need advance advance planningplanning
Current Current systems systems require require mods.mods.
No No appropriate appropriate systems/systems/
facilitiesfacilities
Availability Availability of of Systems/Systems/
FacilitiesFacilities
People People immediately immediately availableavailable
People People availableavailable
Shortage in Shortage in key areaskey areas
No No appropriate appropriate peoplepeople
Availability Availability of Peopleof People
Straight Straight ForwardForward
Challenge, Challenge, but do-ablebut do-able
Easy to Easy to definedefine
Difficult to Difficult to definedefine
Project Project ComplexityComplexity
Incremental Incremental ImproveImprove`t`t
Step Step changechange
Major step Major step changechange
Large gapLarge gapTechnical Technical GapGap
RATINGRATINGTTECHNOLOGY FITECHNOLOGY FIT 1 1 4 4 7 7 1010
KEY KEY FACTORSFACTORS
23 © The Delos Partnership 2004
No No detrimental detrimental effect. effect.
Rescheduling Rescheduling requiredrequired
Disruption.Disruption.
InconvenientInconvenient
Major Major disruptiondisruption
Effect on Other Effect on Other Company Company ProgrammesProgrammes
Resouces Resouces immediately immediately available.available.
Could be Could be rescheduledrescheduled
Some Some resource resource availableavailable
No No ResourceResource
Availability of Availability of PeoplePeople
Clear Clear Focused Focused Commit.Commit.
Functional Functional commitment.commitment.
Lukewarm. Lukewarm. Little Little Business Business CommitmentCommitment
Detached Detached from Prog.from Prog.
Stakeholder Stakeholder Commitment & Commitment & Buy-InBuy-In
Quantifiable Quantifiable Attractive Attractive BenefitsBenefits
Quantifiable in Quantifiable in specific areasspecific areas
Difficult to Difficult to substantiatesubstantiate
Cannot be Cannot be substant-substant-iatediated
Benefits to the Benefits to the CompanyCompany
AvailableAvailableCould be Could be made made availableavailable
Partially Partially AvailableAvailable
Not Not AvailableAvailable
Availability of Availability of FundingFunding
RATINRATINGG BUSINESS IMPACTBUSINESS IMPACT
1 1 4 4 7 7 1 100
KEY KEY FACTORSFACTORS
24 © The Delos Partnership 2004
Self Self SustainingSustaining
From From Compliance to Compliance to CommitmentCommitment
PartialPartialNot Not availableavailable
Cultural FitCultural Fit
Competent Competent team up and team up and runningrunning
Team in place Team in place but skills need but skills need to be to be developeddeveloped
PartialPartialNo No resources resources availableavailable
Sponsorship Sponsorship CommitmentCommitment
Aligned Aligned approachapproach
Can do but Can do but resource resource conflicts not conflicts not dealt withdealt with
Difficult to Difficult to predictpredict
Mission Mission impossibleimpossible
Effort of Effort of TransitionTransition
Both Top Both Top Down and Down and Bottom up Bottom up desiredesire
Benefits Benefits agreed but not agreed but not measurablemeasurable
Uncertainty Uncertainty about final about final outcomeoutcome
No fit with No fit with values of values of companycompany
Attractiveness Attractiveness of Futureof Future
Burning Burning platformplatform
Recognition of Recognition of need to need to changechange
Partial Partial recognition of recognition of problemproblem
It aint It aint broke broke
don’t fixdon’t fix it it
Dissatisfaction Dissatisfaction with presentwith present
RATINRATINGG CHANGE ORIENTATIONCHANGE ORIENTATION
1 4 7 10
KEY KEY FACTORSFACTORS
25 © The Delos Partnership 2004
First Cut Priority CheckFirst Cut Priority Check
3.43.4773322332299
55445555556688
5.65.6885544447777
6.26.2556699883366
6.66.6559988774455
7.27.2997777667744
7.67.6888855889933
885510107788101022
10101010101010101010101011
Overall Overall AverageAverage
Change Change Orient.Orient.
Bus. Bus. ImpactImpact
Tech Fit Tech Fit Market Market Attract.Attract.
Strategic Strategic FitFit
ProgProg
26 © The Delos Partnership 2004
The PMI Project The PMI Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
Business Case
Business Case CharterCharterInitial
Invest.
Initial Invest.IdeaIdea
27 © The Delos Partnership 2004
Tech. Feasibility Study
• Refine Scope of Activity– Prepare Statement of Work.
• Make or Buy– Rationale and Options– Do we have or can we acquire the skills?
• Do we have a solution?– Technical Issues & Risks– Commercial Issues & Risks– Rough Cut Costs
• Background & Experience
28 © The Delos Partnership 2004
Business Attractiveness
87.587.5100100
2525112525PositioningPositioning
3030113030GrowthGrowth
7.57.50.50.51515Route to MarketRoute to Market
550.50.51010CompetitionCompetition
2020112020Market SizeMarket Size
ScoreScoreRating*Rating*WeightWeightFactorFactor
* High = 1.0; Medium = 0.5; Low = 0.0
29 © The Delos Partnership 2004
Operational Capability
3030100100
660.30.32020MarketingMarketing
7.57.50.50.51515InfrastructureInfrastructure
4.54.50.30.31515SystemsSystems
660.30.32020CapabilityCapability
660.20.23030CapacityCapacity
ScoreScoreRating*Rating*WeightWeightFactorFactor
* Strong = 1.0; Average = 0.5; Weak = 0.0
30 © The Delos Partnership 2004
Resource Allocation
NoNo2.22.20.40.4202015157.27.244
NoNo1.81.80.20.2202045455588
NoNo1.61.60.40.4505040405.65.677
NoNo1.21.20.20.2202020206.26.266
YesYes1.01.0nilnil808018183.43.499
YesYes1.01.00.10.1808058586.66.655
YesYes0.90.90.10.1424266667.67.633
YesYes0.80.80.30.3808070708822
YesYes0.50.50.50.530308787101011
CommitCommitAccum.Accum.
ResourceResource
CriticalCritical
ResourceResource
Oper.Oper.
CapabilityCapability
Business Business Attract.Attract.
OverallOverallAverageAverage
ProgProg
31 © The Delos Partnership 2004
Prog.Portfolio Mgmt
Weak
Average
Strong
Op
erat
ion
al C
apab
ilit
y
High Medium Low
Business Attractiveness
P1
P3
P8
P2
P4P6
P7
P5 P9
32 © The Delos Partnership 2004
The PMI Project The PMI Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
Business Case
Business Case CharterCharterInitial
Invest.
Initial Invest.IdeaIdea
33 © The Delos Partnership 2004
Tech. Feasibility StudyTech. Feasibility Study
• Refine Scope of Activity– Prepare Statement of Work.
• Make or Buy– Need for control, Intellectual Property– Do we have or can we/do we want to acquire the skills?
• Do we have a solution?– Technical Issues & Risks– Commercial Issues & Risks– Rough Cut Costs
• Background & Experience
34 © The Delos Partnership 2004
Developing the Business CaseDeveloping the Business Case
BenefitsBenefits
ObjectivesObjectives
Critical Success Critical Success FactorsFactors
DeliverableDeliverable
CostsCosts
•What will be the Business Benefit?
• Benefits Mgmt Process
•What must be achieved?
•Strategic / Tactical / Operational
•What must go right ?
•Pertaining to Overall Success
•What must we do at Deliverable Level ? •High Level Work plan
•What will it cost? •Cost +/- 10% / Risks/ Assumptions
What ? ? How ?
35 © The Delos Partnership 2004
Benefit Analysis TypesBenefit Analysis Types
Discounted Cash Flow Types
Net Present Value (NPV)
Return on Investment (ROI)
Non Discounted Case Flow Types
Benefit Cost Analysis (BCA)
Payback Period
36 © The Delos Partnership 2004
The PMI Project The PMI Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
Business Case
Business Case CharterCharterInitial
Invest.
Initial Invest.IdeaIdea
37 © The Delos Partnership 200418/04/23
Initiating the ProjectInitiating the Project
Develop goals and objectives Define project deliverables Define high level scope Identify high-level activities Document project assumptions Secure project sponsorship Obtain approval to proceed
Input OutputProcess
InitialProjectCharter
Initial Project Charter Major Constraints Identified Major Assumptions Listed Project Manager Assigned Authority to Proceed
BusinessCase
38 © The Delos Partnership 2004
What is a Project Charter?What is a Project Charter?
The Project Charter provides authority for the project to proceed.
The Charter documents the agreement between the Sponsor, the Programme Manager (if appropriate) and the Project Manager and provides a blueprint for the project
Makes the project visible from “start”
39 © The Delos Partnership 2004
The Charter Should The Charter Should ContainContainA clear statement of the project’s objectives,
High Level Scope and deliverables;
The rationale for the project (headlines from the business case)
Defining the project roles & responsibilities;
Outlining the High Level Plan;
Documenting related projects.
Roles and Responsibilities
40 © The Delos Partnership 2004
Initiating the ProjectInitiating the ProjectKey Project Manager ActivitiesKey Project Manager Activities
• Define Project Objectives & Major Deliverables;
• Define Project Structure & Resource Plan;
• Prepare High Level Project Budget;
• Prepare Business Case
• Compile Project Charter;
41 © The Delos Partnership 2004
What is an Objective?What is an Objective?
Specific (What is it we are trying to do?)
Measurable (How will we know we have achieved it?)
Achievable (Can we do it?)
Relevant (Is it the right thing to do?)
Time-related (When will we do it?)
A statement of a particular desired outcome supporting the Goal that is:
42 © The Delos Partnership 2004
Case StudyCase Study
Breakout Session 1
43 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
44 © The Delos Partnership 2004
PlanningPlanning
At the end of this session you will have an understanding of the following:-
• The Planning Process
• The Planning Hierarchy
• WBS
• Plans
• Schedules
Up, Down and Acrossthe Company
45 © The Delos Partnership 2004
Planning ProcessesPlanning Processes
6.3 Activity Duration
Estimating
6.3 Activity Duration
Estimating
5.2 Scope
Planning
5.2 Scope
Planning
5.3 Scope
Definition
5.3 Scope
Definition
6.1 Activity
Definition
6.1 Activity
Definition
7.1Resource Planning
7.1Resource Planning
6.2Activity
Sequencing
6.2Activity
Sequencing
7.2Cost
Estimating
7.2Cost
Estimating
6.4Schedule
Development
6.4Schedule
Development
7.3Cost
Budgeting
7.3Cost
Budgeting
4.1Project Plan Development
4.1Project Plan Development
N.B. All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
46 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Phases
Objectives
Deliverables
Acceptance Criteria
Scope PlanningScope Planning
CharterProjectCharter Scope
Plan
Wave 1 Wave 2
47 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Decomposition
Scope DefinitionScope Definition
Objective
Work Breakdown Structure
Charter
ScopePlan
Charter
Scope Plan
WBS
48 © The Delos Partnership 2004
Why Define the Why Define the Work Breakdown Work Breakdown Structure?Structure?
To manage a project successfully, you must first have a clear understanding of the amount of work you are required to complete
Only then can the cost and schedule of your project be estimated and controlled with any confidence
The WBS identifies all the work to be performed I.e. the Scope of the Project. If it is not in the WBS it is not part of the project
It can often be as important to say what is not within scope
49 © The Delos Partnership 2004
GoalGoal
Objective 1Objective 1 Objective 2Objective 2 Objective 3Objective 3
Deliverable 1Deliverable 1 Deliverable 2Deliverable 2 Deliverable 3Deliverable 3
Defining the WBSDefining the WBS
TaskSub Tasks
Task Sub Task
TaskSub Tasks
Task Sub Task
TaskSub Tasks
Task Sub Task
50 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Activity Lists
Activity DefinitionActivity Definition
Charter
Scope Plan
WBS
Charter
Scope Plan
WBS
Project Task List
51 © The Delos Partnership 2004
Case StudyCase Study
Breakout Session 2
52 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Dependencies
Activity SequencingActivity Sequencing
Project Visual (Network Diagram)
Charter
Scope Plan
WBS
Charter
Scope Plan
WBS
Project Task List Project Task List
NetworkDiagram
53 © The Delos Partnership 200418/04/23
Creating the Project VisualCreating the Project Visual(The Network Diagram)(The Network Diagram)
• 3 Types of Dependencies– Mandatory
• No choice e.g. the walls must go up before the roof can go on
– Discretionary• Preferred by stakeholders e.g. like the kitchen done before
the lounge
– External• Legally required e.g. planning permission before you start
54 © The Delos Partnership 2004
Creating the Project VisualCreating the Project Visual(The Network Diagram)(The Network Diagram)Facilitates engaging the project team and
other stakeholders
Sanity Check
Helps determine the critical path
A
D
B C
E
G
F
H I
Critical Path = A:D:E:F:H:I= 2+6+2+2+2 = 16 (weeks)
2
2 6
11 2
1 1
2
2
55 © The Delos Partnership 2004
Critical Path MethodCritical Path Method
The focus on CPM is to determine float in order to determine which tasks have the most and the least scheduling flexibility
A
D
B C
E
G
F
H I
Critical Path = A:D:E:F:H:I= 2+6+2+2+2 = 16 (weeks)
2
2 6
11 2
1 1
2
2
56 © The Delos Partnership 200418/04/23
Critical Path MethodCritical Path Method
• What is the critical path? (no scheduling flexibility)
• Where is the float/slack? (some scheduling flexibility)
Start Finish
A=1
F=1
B=4
P=3
M=3
I=3
D=2
O=2
G=1
N=1
Dummy
C= 2
Q=3
L=6H=2
57 © The Delos Partnership 200418/04/23
Creating the Project VisualCreating the Project Visual(The Network Diagram)(The Network Diagram)
• Network Diagram (AON, AOA)– Shows interdependencies of all tasks– Used for planning the project– Used for crashing and fast tracking the
project
58 © The Delos Partnership 200418/04/23
Network Diagrams Aid Network Diagrams Aid Planning Planning
• Crashing– Adding more resources to critical path tasks while maintaining scope
• E.g. move resources from non-critical tasks which have float or adding extra resources
• Fast Tracking– Doing critical path tasks in parallel that were originally planned in
series
• Resource Levelling– Plans out time of tasks (and costs) in favour of a stable number of
resources used consistently in full
59 © The Delos Partnership 2004
Case StudyCase Study
Breakout Session 3
60 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Activity Duration EstimatingActivity Duration Estimating
Top Down (Analogous) Estimating
Expert Judgement
Monte Carlo Analysis
Heuristic (Rule of Thumb
Historical Information (Benchmarking)
PERT
a combination of the above….
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
61 © The Delos Partnership 200418/04/23
EstimatingEstimating
• Estimating– Should be done by people doing the work not just by project
managers• Estimating Methods
– CPM• Has one task per estimate• Emphasis on controlling costs and leaving time line flexible• Can only be drawn on AOA• Can have dummies
– PERT• Has 3 estimates per activity
– Optimistic, pessimistic, most likely– Can be used for time and cost– Emphasis on time with flexibility on cost
© The Delos Partnership 200418/04/23
PERTPERT(Program Evaluation and Review Technique)(Program Evaluation and Review Technique)
1. Estimate for 3 separate scenarios:Best Case (B), Most Likely (ML) and Worst Case (W)
2. Calculate Weighted average estimate by:(B + 4 ML + W ) / 6
© The Delos Partnership 200418/04/23
Pert AnalysisPert Analysis - Example - Example
1. Best Case estimate = 10 hours,
Most Likely estimate = 15 hours,
Worst Case estimate = 25 hours.
2. Average estimate = (10 + 4*15 + 25) / 6
= 16 hours.
N.B.Standard Deviation = (Best Case + Worse Case) / 6Variance = [(Best Case + Worse Case) / 6] 2
64 © The Delos Partnership 200418/04/23
PERT PERT
• PERT– Estimate = (P+4M+O)/6– Standard Deviation = (P-O)/6– Variance = [(P-O)/6]2
Task
A
B
C
D
O
3
2
5
7
M
6
3
12
8
P
8
4
20
8
DurationStandardDeviation
Variance
65 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
PERT (Project Evaluation and Review Technique)
CPM (Critical Path Method)
Resource Levelling
Schedule DevelopmentSchedule Development
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Project Schedule
66 © The Delos Partnership 2004
Project ScheduleProject Schedule
Project PlansProject Plans
Activity ListActivity List
• A multi page document (not a Gantt chart)
• Down to the level that you are going to control at
• Rolling Weekly schedule of tasks (<4 weeks out)
The Planning HierarchyThe Planning HierarchyWBS
© The Delos Partnership 200418/04/23
Designed to reduce overhead associated with maintenance of more detailed project plan on a weekly basis
Activity List is a detailed picture of the work assignments and schedule of activities over the coming weeks ( <4 weeks)
It specifies tasks, resource assignments and the expected start and end dates
It is updated on a weekly basis, based on actual performance during the preceding week
Changes in the project work plan are reflected in the activity lists and vice-versa
99
1212
33
66
Activity ListsActivity Lists
68 © The Delos Partnership 2004
What is required?...………………...
by when?…………………………….
What must be done?………………….
in what order?………………………….
and by whom?……………………….
How long will each activity (and therefore the whole project) take?...
So how do I make it fit ?…………...
Objectives and deliverables
High level estimates/external milestones
Activities
Dependencies
Resourcing
Detailed work estimates
Reconcile
Scheduling SummaryScheduling Summary
69 © The Delos Partnership 2004
ReconcilingReconciling
More resources
De-scope
Further breakdown - focus on what’s actually required
Critical path analysis
Re-time
Levelling - better utilisation of existing resources
Overtime!
Crash
Fast Track
70 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
What type of resources are required?
How many?
For how long?
What % of time
Resource PlanningResource Planning
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Project Schedule
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Project Schedule
ResourceRequirements
71 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Top Down (Analogous) Estimating
Bottom Up Estimating
Parametric Estimating
Cost EstimatingCost Estimating
Resource RatesChart of Accounts
Historical Information
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Project Schedule
ResourceRequirements
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Project Schedule
ResourceRequirements
Cost Estimates
72 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Grouping of estimates
Cost BudgetingCost Budgeting
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Project Schedule
ResourceRequirements
Cost Estimates
Charter
Scope Plan
WBS
Project Task List
NetworkDiagram
Duration Estimates
&Assumptions
Project Schedule
ResourceRequirements
Cost Estimates
Baseline Budget
73 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Project Management Information System
Project Plan DevelopmentProject Plan Development
C h a r t e rS c o p e P l a n
W B SP r o j e c t T a s kL i s tN e t w o r k
D i a g r a mD u r a t i o n E s t i m a t e s
&A s s u m p t i o n sP r o j e c t
S c h e d u l eR e s o u r c e
R e q u i r e m e n t s
C o s t E s t i m a t e s
B a s e l i n e B u d g e t
74 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Quality PlanOrganisational PlanCommunication Plan
External Resource PlanProcurement Plan
Risk Management Plan
Project Plan DevelopmentProject Plan Development
InitialProjectCharter
InitialProjectCharter
Project Management Information System
Project Standards
Stakeholder know how
75 © The Delos Partnership 2004
Quality PlanQuality Plan
Standards
What requirements do you need to meet?
Assurance
how will you assure the requirements will be met?
Control
How will you verify that the requirements have been met?
76 © The Delos Partnership 2004
Organisation PlanOrganisation Plan
Responsibility Breakdown Structure
Who does what?
Staffing Management Plan
When and how human resources will be taken on and off the project
Organisational Chart
77 © The Delos Partnership 2004
Communication PlanCommunication Plan
Themes
Objectives, Scope
Agree “What” to Communicate
Channels, Media
Principles
Agree “How” to Communicate
People
Materials
Develop CapabilityTo Communicate
Escalate Major Issues
Adjust Approach
Review EffectivenessAddress Issues
Listen & Document
Immediate Response
Gather Feedback
Check Understanding
Open Environment
Deliver Communication
78 © The Delos Partnership 2004
Communication PlanCommunication Plan
Channel /Vehicle
Description Frequency Potential Audience
Project Plan Microsoft Project Plan withdeliverables by stage
Ongoing Steering Committee, Key Stakeholders
Status Reports Progress against deliverablesand identification of issuesand risks
Weekly Project Office
UpdatePresentations
Monthly summary of statusreports
Monthly All staff (via Key ProcessOwners)
Info letter Update on schedule, benefitsof Project One
Every Quarter All Staff
79 © The Delos Partnership 2004
Case StudyCase Study
Breakout Session 4
80 © The Delos Partnership 2004
Procurement Procurement Management PlanManagement PlanProcurement Planning
Solicitation Planning
Solicitation
Source Selection
Contract Administration
Contract Close Out
81 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Make or Buy
Expert Judgement (internal capability / internal capacity / need
for control/ Protection of Intellectual Property / Cost)
Contract Type Selection (Fixed Cost / Cost Reimbursable / Unit Price
Contract)
Procurement PlanningProcurement Planning
Scope Statement
Market Conditions
Procurement Management Plan
e.g. What type of contracts will be used?
How will multiple suppliers be managed?
Statement of Work
82 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Standard Forms
Expert Judgement
Solicitation PlanningSolicitation Planning
Procurement Management Plan e.g. What type of contracts will be used? How will multiple suppliers be
managed?
Statement of Work
Bid Documents
Evaluation Criteria
83 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Advertising
Bidders Conference
Agencies
Internet
SolicitationSolicitation
Bid Documents
Evaluation Criteria
Proposal
84 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Screening System
Weighting System
Contract Negotiation
Source SelectionSource Selection
ContractProposal
Evaluation Criteria
Organisational Policies
85 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Change Control
Performance Measurement
Payment
Contract AdministrationContract Administration
Contract
Work Results
Invoices
Change Requests
Contract Changes
Payment Requests
86 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Procurement Audit
Contract Close OutContract Close Out
Contract Documentation
Contract File
Formal Acceptance and Closure
© The Delos Partnership 200418/04/23
Risk Management PlanRisk Management Plan
Risk Identification
Risk Quantification
Risk Response Development
Risk Response Control
© The Delos Partnership 200418/04/23
EVERY project carries a number of risks...
• How likely is it to happen?
• How severe will the impact be if it does happen?
• How do we reduce the likelihood (mitigation)?
• How do we deal with the consequences if it occurs (contingency)?
What is a RiskWhat is a Risk??
A condition or circumstance which may occur which could a negative affect on the success of your project at some point IN THE FUTURE
89 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Check Lists
Interviewing
Feedback
Risk IdentificationRisk Identification
Contract Documentation
Sources of Risk
Potential Risk Events
Risk Symptoms
90 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Judgement
Decision Trees
Statistical Sums
Risk QuantificationRisk Quantification
Stakeholder Tolerance
Potential Risk Events
Cost Estimates
Duration Estimates
Risks to Accept
Risks to Pursue
91 © The Delos Partnership 2004
Statistical SumsStatistical Sums
PERT
Standard Deviation = (Worse Case - Best Case)/6
Variance = [(Worse Case - Best Case)/6]2
The higher the variance the greater the risk...
92 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Mitigating Approach
Contingency Planning
Insurance
Procurement
Risk Response DevelopmentRisk Response Development
Risk Management Plan
Contingency Plans
Reserves
Risks to Accept
Risks to Pursue
93 © The Delos Partnership 200418/04/23
InputInput OutputOutputProcessProcess
Work Arounds
Risk Response ControlRisk Response Control
Corrective ActionRisk Management Plan
Actual Risks
© The Delos Partnership 200418/04/23
Some Common Risk Some Common Risk FactorsFactors
Project size and/or complexity
External environment influences
Technology (experience, reliability, etc)
Availability of experienced resources
Project sponsorship
Clarity of project direction
95 © The Delos Partnership 2004
During the life of the project, the project manager should strive to reduce the:–impact, and–probability
of all risks facing the project. Regular (at least monthly) review meetings should re-assess the probability and impact of all risks and the risk management plan should be updated accordingly.
Severe risks should have a robust contingency plan and a comprehensive mitigation strategy, although a ‘wait and see’ policy may be appropriate in some circumstances.
Risk Management Plan Risk Management Plan (continued)(continued)
96 © The Delos Partnership 2004
Rate Risks based on probability x Impact
Risk Probability x Impact = RatingMitigating ContingencyApproach Plan
a 1 1 = 1
b 3 3 = 9
c 2 3 = 6
Tips:
Avoid probability ratings of 2 (make a decision is it high or low)
Convert low probability risks to assumptions based on mitigating approach
Place mitigating approach to high probability risks into action plans
Escalate risks to steering committee based on severity and/or lack of contingency plan
Risk Management Plan Risk Management Plan (continued(continued))
97 © The Delos Partnership 2004
Case StudyCase Study
Breakout Session 5
98 © The Delos Partnership 2004
Planning the ProjectPlanning the ProjectKey Project Manager ActivitiesKey Project Manager Activities
• Review / Establish Project Standards & Procedures;
• Develop Project Management Information System
• Develop Project Plans
99 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
100 © The Delos Partnership 2004
Executing The ProjectExecuting The Project
At the end of this session you will have an understanding of the following:-
• Status Reporting
• Issue Management
• Technical Change Management
• Knowledge Management
• Project Mgrs Responsibilities
101 © The Delos Partnership 2004
PMI® Executing ProcessesPMI® Executing Processes
4.2 Project PlanExecution
4.2 Project PlanExecution
N.B. All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
102 © The Delos Partnership 200418/04/23
Project Plan ExecutionProject Plan Execution
Work Authorisation to Perform activities in plan
For all issues, complete an issue report, including:
Issue description Project impact Proposed resolution
Develop mitigating approach and contingency plan for risks
Review and approve resolution Assess change Develop team skills / knowledge Communicate for commitment Manage 3rd party relationships Manage Knowledge
Input OutputProcess
Maintained Project Work plan
Work Results
Status
Reports
Change
Requests
Issues
Risks
Changes
© The Delos Partnership 200418/04/23
Communicate status and expectations to the Programme/ Project Office and therefore Management
Inform team members and other Project Managers
Communicate changes, issues, variances
Facilitate coordination across the programme
Share good news (as well as bad)
Demonstrate that you are in control
Why report project status?
Status ReportingStatus Reporting
© The Delos Partnership 200418/04/23
Syn
thes
ise
Issues
Progress Achieved
Risks
Activities Planned
Status Report
Make reports comprehensiveStatus Reporting (contd)Status Reporting (contd)
Time / Effort
105 © The Delos Partnership 200418/04/23
Report Project StatusReport Project StatusGuiding PrinciplesGuiding PrinciplesBe careful what you ask for -- if you are only
concerned with task starts and completions, you will very likely get tasks that start and finish on time… but possibly at the expense of quality.
If you ask for information, use it.
Make sure your reporting periods are realistic.
Be creative in designing your reports.
Make use of exception reporting.
106 © The Delos Partnership 2004
An ISSUE is anything that is CURRENTLY or will SHORTLY affect the progress of a project or its ability to produce its stated deliverables, and about which no agreement has yet been reached.
As the Project Manager you own the issues and must address them early and drive them to resolution
Issue ManagementIssue Management
For example:• Limited availability of resources• Problems with technology• Ambiguous business requirements
© The Delos Partnership 200418/04/23
Are issues being raised?
Are the issues raised being rated appropriately?
Are issues being assigned to appropriate people for resolution?
Do all accepted issues have a reasonable resolution due date?
Are any resolution due dates about to be missed?
Are there any concerns with implementing the approved resolutions?
Are there any issues you need to raise now before they become a change request?
Issue Management (contd)Issue Management (contd)
108 © The Delos Partnership 2004
Knowledge ManagementKnowledge Management
Knowledge should be centrally managedA repository should be developed for all the information gathered and produced over the life of the programme. Its purpose is to ensure that all information is:
• Readily accessible;• Consistently presented;• Protected from damage or loss;• Coordinated and reused;
• Status Reports• Correspondence• Budgets• Deliverables• Project Plans• Project Charters• Working Papers• Contracts• Timesheets• Expense Records
109 © The Delos Partnership 2004
Knowledge ManagementKnowledge Management
What are we trying to avoid?
• Lost Information• Duplicated Information• Inconsistent Information• Wasted Effort• Lost Time
110 © The Delos Partnership 2004
Manage changes to:
Scope: more; less; different
Time: elapsed; actual effort
Approach: sign-off/consultation; prototype/big bang
Resource:team size; skill set
Cost: budget
Technical Technical Change ManagementChange Management
111 © The Delos Partnership 200418/04/23
Technical Technical Change ManagementChange Management
Complete change request form– Description of proposed change– Benefits of change– Implications of not making the change
Log change request
Assign change request and due date
Investigate request and determine resolution
Review resolution
Approve resolution
Update budget, scope and work plan
Communicate
112 © The Delos Partnership 200418/04/23
Assess ChangeAssess ChangeGuiding PrinciplesGuiding Principles
Shift happens -- the project world is dynamic
Set a tolerance level -- determine the amount of change you can safely accept without formal user approval.
When you exceed your tolerance level, use the formal change request process
Manage expectations as well as scope.
113 © The Delos Partnership 2004
Executing the ProjectExecuting the ProjectKey Project Manager ActivitiesKey Project Manager Activities
Periodically (weekly) assess and report the
following project status:
• Schedule -- planned, current & forecast;
• Budget -- planned, current & forecast;
• Issues -- number, progress & age;
• Risk -- severity, likelihood & strategy;
• Deliverable -- completeness, quality;
• Change Request -- number, progress, impact
114 © The Delos Partnership 2004
Executing the ProjectExecuting the ProjectKey Project Manager ActivitiesKey Project Manager Activities
• Identify variations in agreed project scope
(deliverable, functional, organisational, etc);
• Analyse impact on project schedule, resource
requirements and budget;
• Revise project schedule, budget and resource
plan if change accepted;
115 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
116 © The Delos Partnership 2004
Controlling The ProjectControlling The Project
At the end of this session you will have an understanding of the following:-
• Earned Value Management
• Quality Management
• Stage and Gate Process
• Project Managers Responsibilities
117 © The Delos Partnership 2004
PMI® Controlling PMI® Controlling ProcessesProcesses
10.3 Performance
Reporting
10.3 Performance
Reporting
4.3 Overall Change Control
4.3 Overall Change Control
N.B. All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
118 © The Delos Partnership 200418/04/23
Controlling the ProjectControlling the Project
Capture actuals Evaluate actuals versus
plan Manage Change Requests Stage and Gate review Update project scope, as
required Update project work plan
Input OutputProcess
ProjectActuals
PerformanceMeasures
ChangeRequestsMaintained Project Work
plan
119 © The Delos Partnership 2004
Detailed project plan &Project charter
Deliverables &Achievedobjectives
• Is the project progressing on schedule?
• Do actuals support estimates?
• How is the risk profile changing over the life of the project?
• Has contingency been used?
• What issues are hampering progress?
• Are deliverables being produced to the required levels of quality?
• Are changes being identified and how are these being managed?
What are we ControllingWhat are we Controlling??
120 © The Delos Partnership 2004
You only control three dimensions...
Time
CostQuality
Dimensions of ControlDimensions of Control
Scope
© The Delos Partnership 200418/04/23
Collect and verify project actuals
Compare project actuals against plan
Determine variances
Update plan to reflect actuals
Anticipate future impacts
Progress ManagementProgress Management
122 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• Is a control mechanism to allow a contractor and client to monitor progress in terms of – Cost– Schedule– Technical Performance
• Normally created and owned by the prime contractor• Traditional project mgmt practice tends to compare
actual costs with planned expenditure and confuses actual costs with actual progress. – EVM provides a third reference point; an objective view of
the status of the contract
123 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• It works by tracking 3 parameters– Planned Value (PV): the budgeted costs of work scheduled
– Actual Costs (AC): the actual cost of work performed (ACWP)
– Earned Vale (EV): the budgeted cost of work performed
• It relies on the Work Breakdown Structure (WBS) establishing all the goods and services to be supplied…the deliverables!
• The WBS should go down to the level that earned value will be reported against (the more levels the more heavier the burden of reporting…3/4 levels should meet the needs of most reasonably complex projects)
124 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• Each deliverable/activity in the WBS can have a value (money/hours) estimated to it
• Value is “earned” by the completion of those deliverables or activities
• Estimate vs actual variances can then be generated• Simple Example Project x
– 3 Stages• 1 deliverables per stage
– 2 activities per deliverable
What is the WBS?
125 © The Delos Partnership 2004
Earned Value ManagementEarned Value ManagementTimeNow
PlannedCompletion
Date
Original estimated project budget
Actual cost o
f work perfo
rmed (A
C)(P
V)
(EV)
Cost Variance
Schedule Variance (Cost)
Schedule Variance (Time)
Budget at completion (BAC)
Forecast Cost Overrun
126 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• Backward looking measures– Cost Performance Index = Earned Value / Actual Cost
• CPI = EV/AC
– Schedule Performance Index = Earned Value / Planned Value• SPI = EV / PV
– Cost Variance = Earned Value - Actual Cost• Cost Variance = EV - AC
– Schedule Variance = Earned Value - Budget• Schedule variance = EV - PV
• Forward Looking Measures– Final Cost = Budgeted Cost / CPI– Final Project Duration = Planned Project Duration / SPI (time based)
© The Delos Partnership 200418/04/23
Quality management should not be something which starts ‘at the end’ - when a deliverable has been produced…rather a “stage and gate” approach should be taken over the entire live cycle
Quality ManagementQuality Management
11 22 65 74
Idea BusinessCase
Go/No-Go?
3
ProgPlanning
Go/No Go?
Implement Handover/Launch
Close
Agreed? To Plan? Changes? Review?Go/No Go?
InitialInvest
InitiateInitiate PlanPlan ExecuteExecute ControlControl CloseClose
© The Delos Partnership 200418/04/23
Quality ManagementQuality Management
Prevention
Have quality criteria been defined for each
stage/deliverable?
Has the training, coaching and knowledge transfer
prepared team members for their work?
Are the estimates of effort and planned duration sufficient
to produce acceptable quality work?
Have standards and procedures been developed and are
they being followed?
© The Delos Partnership 200418/04/23
Inspection
Is time being made for the assessment of deliverables
against agreed quality criteria?
Are team reviews working?
Are both the project team and independent quality
reviewers involved in assessment/sign off of deliverables?
Are approvals of deliverables going smoothly?
Have there been any change requests regarding defects in
approved deliverables?
Quality Management Quality Management (contd(contd))
© The Delos Partnership 200418/04/23
Key Components
Quality Management Quality Management (contd)(contd)
Cross functional review of deliverables by stage (Stage and Gate)
Enforcement of formal standards and procedures
Consistent application of PM processes and techniques
Continuous improvement through training and skills transfer
Provision of appropriately skilled people
131 © The Delos Partnership 2004
• STAGES– Gather information– Multi-functional with
parallel activities– Drive uncertainty down– Where work is done
Stage and GateStage and Gate
•GATES– Decision points for next stage
- Go/ No Go,etc (‘GO’ authorises resources for next Stage)
– Serve as quality & prioritisation control
– Are predefined & specify a set of deliverables
11 22 65 74
Idea BusinessCase
Go/No-Go?
3
ProgPlanning
Go/No Go?
Implement Handover/Launch
Close
Agreed? To Plan? Changes? Review?Go/No Go?
InitialInvest
InitiateInitiate PlanPlan ExecuteExecute ControlControl CloseClose
132 © The Delos Partnership 2004
11 22 65 74
11 22 44 55 66
3
33 77
Stage and Gate (contd)Stage and Gate (contd)
133 © The Delos Partnership 2004
Stage and GateStage and Gate(Functional Buy-In)(Functional Buy-In)
1 2 65 74
Idea Initial Invest.1 2 4 5 6
3
3 7Business
CasePlan
Devel.Risk
Assess.Produce Post Project
Eval.
R & D / MedicalR & D / Medical
Sales & Marketing/ OperationsSales & Marketing/ Operations
Finance / CommercialFinance / Commercial
InitiateInitiate PlanPlan ExecuteExecute ControlControl CloseClose
134 © The Delos Partnership 2004
Case StudyCase Study
Breakout Session 6
135 © The Delos Partnership 200418/04/23
Control the ProjectControl the ProjectGuiding PrinciplesGuiding PrinciplesControl the outcomes more than the
process.
Recognise the balance between formal and informal control.
Project management software is not a replacement for a full-time project manager.
136 © The Delos Partnership 2004
Controlling the ProjectControlling the ProjectKey Project Manager ActivitiesKey Project Manager Activities
• Monitor & evaluate progress (schedule, budget);
• Make adjustments (schedule, resourcing, activity) necessary to achieve time, cost & quality targets;
• Identify and resolve all project issues
137 © The Delos Partnership 2004
Controlling the ProjectControlling the ProjectKey Project Manager ActivitiesKey Project Manager Activities
• Identify and manage project risks;
• Monitor status and impact of all related projects;
• Co-ordinate allocation of project resource;
• Review & approve quality of all deliverables;
138 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Life CycleManagement Life Cycle
InitiatingProcesses
InitiatingProcesses
PlanningProcesses
PlanningProcesses
ControllingProcesses
ControllingProcesses
ClosingProcesses
ClosingProcesses
ExecutingProcesses
ExecutingProcesses
139 © The Delos Partnership 2004
Closing The ProjectClosing The Project
At the end of this session you will understand the importance of :-
• Post-Project Evaluation
• Evaluation of Team & Individual Performance
• Project Managers Responsibilities
140 © The Delos Partnership 2004
PMI® Closing ProcessesPMI® Closing Processes
12.6 Contract Close Out
12.6 Contract Close Out
10.4 Administrative
Closure
10.4 Administrative
Closure
N.B. All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
141 © The Delos Partnership 200418/04/23
Closing the ProjectClosing the Project
Objective Review and Scope Verifications
Procurement Audit Update & Archive documentation Identify lessons learned and define
future improvements Review team members
Input OutputProcess
Contracts
ProjectCharter
ProjectAssessment
IndividualPerformanceAssessment
FutureImprovements
Contract Files
PerformanceMeasures
142 © The Delos Partnership 200418/04/23
Conclude the ProjectConclude the ProjectGuiding PrinciplesGuiding Principles
This project management process provides the basis for continuous improvement.
Get some input from outside the project team.
This should not be your first attempt to document project information.
Debrief before parting.
143 © The Delos Partnership 2004
Closing the ProjectClosing the ProjectKey Project Manager ActivitiesKey Project Manager Activities
• Obtain final review and approval of project deliverables;
• Assess performance against project schedule,
and budget;
• Archive project information;
• Compile closure report;
144 © The Delos Partnership 2004
Project Management Project Management Framework &Framework &Organisation – Key Organisation – Key ConceptsConcepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
145 © The Delos Partnership 2004
Role of the SponsorRole of the Sponsor
•The Sponsor is the customer. The one who will pay for the product the project is going to deliver
•Must be visible and lead from the Top• Own the Business Case
• Belief and energy to “Stay the course”• Balance Priorities with Business-As-Usual• Budget Holder
• Commitment to new ways of working• Manage and Influence Stakeholders• Ensure Resources are committed
146 © The Delos Partnership 2004
Planning &Control
Prog Office
Role of the ProRole of the Project ject ManaManagerger.
Business Review
SystemInterface
Leadership
ChangeManagement
TeamBuilding
BenefitsManagement
Financial Well-Being
147 © The Delos Partnership 200418/04/23
Functional OrganiFunctional Organissationation
FunctionalManager
ChiefExec.
FunctionalManager
FunctionalManager
• Part-time programme manager
• Direct reporting of team members to functional mgrs
• Project manager has little or no authority
• Virtually none of the team assigned full-time
ProProgrammegramme coordination coordination
148 © The Delos Partnership 2004
Functional OrganisationsFunctional Organisations
Easier management of specialists
Team members report to only one supervisor
Similar resources are centralised, companies are grouped by specialisation
People place more emphasis on their functional speciality to the detriment of project
No career path in project management
Project manager has no authority
Advantages Disadvantages
149 © The Delos Partnership 200418/04/23
Matrix OrganizationMatrix Organization
ProjectManager
Project
Manager
Prog.Manager
ProjectManager
ProjectManager
FunctionManager
FunctionManager
FunctionManager
TLTL
TLTL
TLTL
TLTL
TLTL
TLTL
TLTL
TLTL
TLTL
150 © The Delos Partnership 2004
Matrix OrganisationsMatrix Organisations
Highly visible project objectives
Improved project manage control over resources
More support from functional organisations
Better coordination
Better horizontal and vertical dissemination of information than functional
Team members maintain a “home”
Not cost effective because of extra administrative personnel
More than one boss for project teams
More complex to monitor and control
Tougher problems with resource allocation
Need extensive policies and procedures
Functional managers may have different priorities than project managers
Higher potential for conflict and duplication of effort
Advantages Disadvantages
151 © The Delos Partnership 200418/04/23
ProProjectised jectised OrganiOrganissationation
• Full-time project manager
• Direct reporting of team members to PM
• Project manager has high or total authority
• 85-100% of team assigned full-time
Prog.Manager
Prog.Manager
Project coordinationProject coordination
152 © The Delos Partnership 2004
Projectised OrganisationsProjectised Organisations
Efficient project organisation
Loyalty to project
More effective communications that functional
No “home” when project complete
Lack of professionalism in disciplines
Duplication of facilities and job functions
Less efficient use of resources
Advantages Disadvantages
153 © The Delos Partnership 2004
Organisational Structure Organisational Structure Influences on ProjectsInfluences on Projects
Project Manager’s Authority
% of Performing Organisation’s Personnel
Assigned Full Time to Project Work
Project Manager’s Role
Common Title for Project Manager’s Role
Project Management Administrative Staff
OrganisationType
Part-time
Project Coordinator/
Project Leader
Part-time
Virtually None
Little or None
Functional
Part-time Part-time Full-time Full-time
Part-time Full-time Full-time Full-time
Project Coordinator/
Project Leader
Project Manager/
Project Officer
Project / Program Manager
Project / Program Manager
0-25% 15-60% 50-95% 85-100%
LimitedLow to
ModerateModerate to
HighHigh to Almost
Total
ProjectisedMatrix
Weak MatrixBalanced
MatrixStrong Matrix
ProjectCharacteristics
Source: PMI® Project Management Body of Knowledge
154 © The Delos Partnership 200418/04/23
ProProject ject OrganiOrganissationation
• No one “best” structure
• Major considerations are:
– Control
– Responsibility & Accountability
– Integration & Decision Making
– Communication & Visibility
– Priority & Trade-off
– Stakeholder Management
155 © The Delos Partnership 2004
There are Two Life CyclesThere are Two Life Cycles
• Project Management Life Cycle– This describes what you need to do to manage the
project (Initiating, Planning, Executing, Controlling, Closing)
– You are concerned about this life cycle
• Product Life Cycle– The deliverable of a project that will be used by
the customer– The project team is not responsible for the
product life cycle
156 © The Delos Partnership 2004
The Triple ConstraintThe Triple Constraint
•The three are so intertwined that a change in one will in most cases lead to a change in at least one of the others
•Management sets the priority of each constraint
Time
CostQuality
Scope
157 © The Delos Partnership 200418/04/23
Project Integration Project Integration ManagementManagement
During execution…
The Project Team focus on completing tasks
The sponsor and senior management protect the project from changes and loss of resources
The project manager integrates all the pieces of the projects
158 © The Delos Partnership 200418/04/23
Project Integration Project Integration ManagementManagement
• Constraints– Factors that limit the teams options– Financial, time, human, technical, other
• Historical Information– Can include tasks, WBS, Reports, Estimates, Plans, lessons
learned, benchmarks, correspondence
• Lessons Learned– Technical aspects– Project Management Life Cycle
159 © The Delos Partnership 200418/04/23
Project Integration Project Integration ManagementManagement
• Project Management Methodology– Organisations set of standards, templates for managing projects
• Project Management Information System– The system set up in advance where the project manager goes
to find all project related information, to know the status of the project etc
• Baseline– The original plan plus any approved changes. Used to compare
actuals with original to monitor variances to budget
160 © The Delos Partnership 200418/04/23
Project Integration Project Integration ManagementManagement
• Kick Off Meeting– A communications and coordination meeting of all parties to ensure all are
familiar with the details of the project and who will be responsible for what– Includes team, sponsor, customers, sellers, senior management, functional
managers)
• Work Authorisation System– A formal procedure for sanctioning work
• Change Requests– Formal changes to the project after it has been approved (during execution)
by integrated change control– The project plan is a formal document that needs to be controlled
161 © The Delos Partnership 200418/04/23
Project Integration Project Integration ManagementManagement
• Change Control System– A collection of formal documented procedures and
supporting organisation detailing how changes will be managed, approved, and implemented
• Corrective Action– The project manager proactively looks for deviations
rather than just waiting for them to be brought to their attention
– Corrective action may involve cause and effect analysis, changes to schedule, costs, quality and risks
162 © The Delos Partnership 200418/04/23
Project Integration Project Integration ManagementManagement
• Scope change control– Measure performance– Replanning– Making changes and adjusting the baseline– Taking corrective action– Documenting lessons learned
• Schedule Control• Cost Control• Quality Control• Performance Measurement• Risk Monitoring
163 © The Delos Partnership 200418/04/23
Project Integration Project Integration ManagementManagement
• Managing Changes– Influencing the factors that affect change– Ensuring that change is beneficial– Determining that a change has occurred– Looking for alternatives to change– Minimising the negative impact of change– Notifying stakeholders affected by change– Managing changes as they occur
• Configuration Management– Managing the scope of the project so that the project delivers the
product required by the customer
164 © The Delos Partnership 2004
Thank-you
165 © The Delos Partnership 2004
Back-Up SlidesBack-Up Slides
Optional slides to be used as required to support the Q&A session following the case
study breakout sessions of to flex the course to meet a
clients particular focus area
166 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge Areas – Areas – Key ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
167 © The Delos Partnership 200418/04/23
Scope ManagementScope Management
• “Includes the processes required to ensure that the project includes all the work and only the work required to complete the project successfully. It is primarily concerned with controlling what is and what is not in the project”
• Check you are completing all the work• Say no to additional work• Prevent extra work or gold plating
168 © The Delos Partnership 200418/04/23
Scope ManagementScope Management
• Project Selection– Murder Board– Peer Review– Scoring Models– Benefit compared to cost
• NPV, IRR, Payback, BCA
169 © The Delos Partnership 200418/04/23
Scope ManagementScope Management
• Management by Objectives– Establish objectives– Periodically review– Take corrective action
• Delphi Technique– Obtain estimates from independent experts anonymously– Used to reduce bias and build consensus
170 © The Delos Partnership 200418/04/23
Scope ManagementScope Management
• Work Breakdown Structure– The foundation of the project. All planning and controlling is
based on the WBS– Defines the scope of the project.– If it is not in the WBS the team should not be working on it
• WBS Dictionary– Created with the team to increase understanding of each task, who
is going to do what, – what they will need, – what they will deliver
171 © The Delos Partnership 2004
172 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge Areas –Areas –Key ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
173 © The Delos Partnership 200418/04/23
Time ManagementTime Management
• Activity on Node (AON)– Four types of relationship
• Finish to start• Finish to finish• Start to Start• Start to finish
Activity A Activity B
174 © The Delos Partnership 200418/04/23
Time ManagementTime Management
• Activity on Arrow (AOA)– One type of relationship
• Finish to start
– Can use dummies to show dependencies between tasks
– PERT and CPM can only be drawn on AOA
Activity A
175 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge Areas – Areas – Key ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
176 © The Delos Partnership 200418/04/23
Cost ManagementCost Management
• Cost Estimating– Should be done by the person doing the
work– Should be based on the WBS to improve
accuracy– Historical information is key to improving
accuracy
177 © The Delos Partnership 200418/04/23
Cost ManagementCost Management
• Cost Estimating– Analogous Estimating
• Top down expert judgement• Quick and cheap to do• Less accurate
– Bottom Up estimating• Estimates based on WBS are rolled up to get a project total• Takes time and more costly to do• More Accurate
– Parametric Testing (Uses a mathematical model e.g.x hours per test)
• Regression analysis (Scatter Diagram)• Learning Curve
– The 100th test will be quicker than the 1st
178 © The Delos Partnership 200418/04/23
Cost ManagementCost Management
• Progress Reporting– 50/50 Rule
• A task is considered 50% complete when it begins and only gets remaining 50% when task complete
– 20/80 Rule• A task is considered 20% complete when it begins and only gets
remaining 80% when task complete
– 0/100 Rule• A task only gets credit when completed
•
179 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• Is a control mechanism to allow a contractor and client to monitor progress in terms of – Cost– Schedule– Technical Performance
• Normally created and owned by the prime contractor• Traditional project mgmt practice tends to compare
actual costs with planned expenditure and confuses actual costs with actual progress. – EVM provides a third reference point; an objective view of
the status of the contract
180 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• It works by tracking 3 parameters– Planned Value (PV): the budgeted costs of work scheduled
– Actual Costs (AC): the actual cost of work performed (ACWP)
– Earned Vale (EV): the budgeted cost of work performed
• It relies on the Work Breakdown Structure (WBS) establishing all the goods and services to be supplied…the deliverables!
• The WBS should go down to the level that earned value will be reported against (the more levels the more heavier the burden of reporting…3/4 levels should meet the needs of most reasonably complex projects)
181 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• Each deliverable/activity in the WBS can have a value (money/hours) estimated to it
• Value is “earned” by the completion of those deliverables or activities
• Estimate vs actual variances can then be generated• Simple Example Project x
– 3 Stages• 1 deliverables per stage
– 2 activities per deliverable
What is the WBS?
182 © The Delos Partnership 2004
Earned Value ManagementEarned Value ManagementTimeNow
PlannedCompletion
Date
Original estimated project budget
Actual cost o
f work perfo
rmed (A
C)(P
V)
(EV)
Cost Variance
Schedule Variance (Cost)
Schedule Variance (Time)
Budget at completion (BAC)
Forecast Cost Overrun
183 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
Acronym Term Meaning
PV Planned ValueWhat is the estimated vale of the work planned to be done?
EV Earned Value What is the estimated vale of the work actually done?
AC Actual Cost What is the actual cost incurred?
BACBudget at
CompletionWhat was the budget for the total job?
EACEstimate at completion
What is now expected to be the total cost of the project?
ETCEstimate to complete
From today, how much more is the project expected to cost?
VACVariance at Completion
How much under or over budget is the project now expected to be?
184 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
Acronym Term Meaning
Cost Variance CV EV-ACNegative is over budgetPositive is under budget
Schedule Variance SV EV-PVNegative is behind schedulePositive is ahead of schedule
Cost Performance Index CPI
EV/AC The project is achieving $_ out of every $1spent
Schedule Performance Index SPI
EV/PVThe project is progressing at _% of the rate originally planned
Estimate at Completion EAC
BAC/CPIWhat is now expected to be the total cost of the project?
Estimate to Complete ETC
EAC-ACFrom today, how much more is the project expected to cost?
Variance at Completion VAC
BAC-EACHow much under or over budget is the project now expected to be?
185 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• Each deliverable/activity in the WBS can have a value (money/hours) estimated to it
• Value is “earned” by the completion of those deliverables or activities
• Estimate vs actual variances can then be generated• Simple Example Project x
– 3 Stages• 1 deliverables per stage
– 2 activities per deliverable
What is the WBS?
186 © The Delos Partnership 2004
Earned Value ManagementEarned Value Management
• Tips– EV comes at the beginning of every formula– If it is a “variance” it is EV minus something– If it is an “index” it is EV divided by something– If the formula relates to cost use AC– If the formula relates to schedule us PV– Negative is bad; positive is good– Greater than one is good; less than one is bad
187 © The Delos Partnership 200418/04/23
Cost ManagementCost Management
PV
AC ETCEAC
BAC
TodayOriginal Plan
188 © The Delos Partnership 2004
Project SelectionProject Selection
Project A Which Project To Pick?
Net Present Value $85,000
Project B
$75,000
IRR 14% 18%
Payback Period 20 Months 25 Months
Benefit Cost Ratio 2.43 1.23
189 © The Delos Partnership 2004
Project Cost ManagementProject Cost Management
• Sunk Costs– A project with a budget of £300,000 is halfway
through and has spent £600,000. Do you consider the £300,000 when deciding to continue?
– Accounting standards require that sunk costs are not considered when deciding whether to continue with a troubled project
190 © The Delos Partnership 2004
Project Cost ManagementProject Cost Management
• Variable Costs– Any cost that varies with the amount of work e.g. team wages,
consultancy fees
• Fixed Cost– Any cost that do not change, e.g. insurance
• Direct Costs– Costs directly attributable to the work on the project
• Indirect Costs– Overhead costs that are shared e.g. HR support
191 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge Areas – Areas – Key ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
192 © The Delos Partnership 200418/04/23
Quality ManagementQuality Management
• Pareto Analysis
• Cause and Effect / Fishbone / Ishikawa Diagram
• Statistical Sampling– Studying the whole population would take too long,
cost too much, be destructive
193 © The Delos Partnership 200418/04/23
Quality ManagementQuality Management
• Find the following on the charts following– Upper control Limit– Lower Control Limit– The process is out of control– Assignable cause– Normal and expected variation– Rule of Seven– Specification limits– Three Sigma– Six Sigma– Normal Distribution Curve
194 © The Delos Partnership 2004
Quality ManagementQuality Management
195 © The Delos Partnership 2004
Quality ManagementQuality Management
196 © The Delos Partnership 2004
197 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge Areas Areas Key ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
198 © The Delos Partnership 200418/04/23
Human Resource Human Resource ManagementManagement
• Responsibility Exercise Handout
• Halo Effect– Thinking someone will be good at everything
just because they are very good at one thing
• MCGregor’s Theory X and Yx x
X Y
199 © The Delos Partnership 2004
Maslow’s Hierarchy of Maslow’s Hierarchy of NeedsNeeds
SelfActualisation
Esteem
Social
Safety
Physiological
• Growth, learning
• Accomplishment, appreciation
• Love, affection, friends, approval
• Security, stability, freedom
• Food, water, shelter
200 © The Delos Partnership 2004
Sources of ConflictSources of Conflictwithin Projectswithin Projects
Schedules
Competing priorities
Resources
Technical Opinions
Administrative procedures
Cost
Personality
Frequency as cause of conflict
Low
High
Source: PMI Project Management Body of Knowledge
201 © The Delos Partnership 2004
Effectiveness in Project Situations
Low
High
Conflict Resolving Conflict Resolving TechniquesTechniquesConfronting (Problem Solving)
Working a shared problem
Smoothing
Emphasizing common ground
Compromising
Bringing some degree of satisfaction to both sides
Withdrawal (avoidance)
Postponing/waiting for better timing
ForcingPush your viewpoint at expense of others
202 © The Delos Partnership 2004
Power TypesPower Types
Expert
Power based on knowledge/skills/experience
Reward
Power based on ability to reward
Formal
Power based on position
Referent
Power based on association with someone in a higher position
Penalty
Power based on ability to penalise
Effectiveness in Project Situations
Low
High
203 © The Delos Partnership 2004
Hertzberg's Motivation Hertzberg's Motivation TheoryTheory
Hygiene factors cannot motivate but lack of them will de-motivate
Working conditions, Salary, Personal life, Relationships at work, Security, Status
Motivating agents motivate people
Responsibility, Self Actualisation, Professional Growth, Recognition
Design Jobs with right balanceStretch vs Comfort Zone vs Grunge
“If you want people to do a good job give them a good job to do” (Hertzberg)
204 © The Delos Partnership 2004
205 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge AreasAreasKey ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
206 © The Delos Partnership 2004
Project CommunicationsProject CommunicationsManagementManagement• Can the project manager control all
communications
– No
• Should the project manager try to control communications
– Yes, otherwise rumours and speculations and mis-understanding fill the vacuum
• 90% of a project managers time is spent communicating– Communication is the single most important skill in
project management
207 © The Delos Partnership 200418/04/23
Project CommunicationsProject CommunicationsManagementManagement
• Communication Channels– # Channels = (N2-N)/2
• Where N is the number of people
• How many communication channels are there when there are 5 stakeholders involved in a project?
• How many are there when there 10?
208 © The Delos Partnership 2004
Project CommunicationsProject CommunicationsManagementManagement• Communications Planning
– Determining the information needs of the stakeholders
• Communications Management Plan
– What information do you need to send to who, when, how etc
• Information Distribution
– Implementing the communications management plan
209 © The Delos Partnership 2004
Project CommunicationsProject CommunicationsManagementManagement• Non-Verbal
– 55% of all communication is non-verbal
• Para lingual
– The pitch and tone of your voice which often conveys your real message
• Active Listening
– Confirming you are listening, paraphrasing back, asking for clarification
• Effective Listening
– Watching the speaker for body language, thinking about what you are going to say before responding, asking questions, providing feedback
• Feedback
– Checking understanding of the message
210 © The Delos Partnership 2004
Project CommunicationsProject CommunicationsManagementManagement• Performance Reporting
– Reports are communication tools and may include
• Status reports• Progress reports• Trend reports• Variance reports• Earned value reports• Forecasting reports
211 © The Delos Partnership 2004
Project CommunicationsProject CommunicationsManagementManagement• Administrative Closure is part of communications
– All projects must be closed out• At end of project• At end of each phase• When contract is terminated
– Administrative Closure includes• Product Verification• Financial closure• Lessons Learned• Update records• Final project performance reporting• Project Archives
212 © The Delos Partnership 2004
213 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge Areas – Areas – Key ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
214 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Is there more risk at the start or the end of a project?
• Risk Management Involves– Risk management planning– Risk Identification– Qualitative Risk Analysis– Quantitative Risk Analysis– Risk Response Planning
215 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Step 1 – Risk Management Planning– Formal or informal dependent on perceived risk of
project• Formal risk management plans may include
– Methodology– Roles and Responsibilities– Budget for risk– Timing– Risks thresholds– Risk Tracking
216 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Step 2 – Risk Identification– Brainstorming– Delphi Technique– Interviewing stakeholders / experts– SWOT– During team meetings (status meetings)
• Outputs from Risk Identification– Risks– Risk triggers
• what will be the symptom or early warning sign
217 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Step 3 – Qualitative Risk Analysis– Probability and impact– Assumption testing
• Too many guesses make the data unreliable
– Data Precision Ranking• How reliable is our information
• Output from Risk Analysis– Risk Rating Matrix
218 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Step 4 – Quantitative Risk Analysis– Expected value
• Which risks warrant a response• Determine overall project risk• Determine cost and schedule reserves
219 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Step 4 – Quantitative Risk AnalysisDecision Tree
Would you volume test?Do Volume Test$100,000
Do Not doVolume Test$0
Failure: 30% probability and $140,000 impact
Pass: No impact
Pass: No impact
Failure: 75% probability and $440,000 impact
220 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Step 4 – Quantitative Risk Analysis– Monte Carlo Simulation
• Evaluates the project not the task
• Provides the probability of completing the project on any specific day for any specific cost
• Determines probability of any given task being on the critical path
• Can be used to assess cost and schedule impacts
221 © The Delos Partnership 200418/04/23
Project Risk ManagementProject Risk Management
• Step 5 – Risk Response Planning– Assign Owner– Decide risk response strategy
• Avoid– Eliminate cause of risk
• Mitigate– Reduce probability or impact
• Accept– Do nothing and live with consequences if it happens
• Transfer– Insure against
222 © The Delos Partnership 2004
223 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge AreasAreasKey ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
224 © The Delos Partnership 2004
Procurement ManagementProcurement Management
Step What happens Output
1 Procurement Planning Make or Buy?Do it yourself or outsource. Select Contract Type. Draft scope of work
2 Solicitation Planning RFP created RFP
3 Solicitation Questions and Answers Proposal Created
4 Source Selection Pick One Contract Signed
5 Contract administration Make or Buy? Work completed
1 Procurement Planning Finish Done
225 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• 1 Procurement Planning• Make vs Buy• Main reason to buy is to reduce
risk (cost, performance, scope of work)• Main reason to make is to utilise
own resources, retain control, protect Intellectual Property
226 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• 2 Solicitation Planning– Evaluation Criteria
• Understanding or need
• Life cycle cost
• Technical ability
• Management approach
• Project Management ability
• Contract Type Selection• 4 Main Contract Types
– Cost Reimbursable
– Time & Material
– Fixed Price
– Purchase Order
227 © The Delos Partnership 2004
Procurement ManagementProcurement Management
A contract is a formal agreement
All requirements should be specifically stated in the contract
All contract requirements must be met
Changes must be in writing and formally documented
228 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• Contract Types– Cost Reimbursable (risk mostly with the buyer)
• Cost plus fixed fee (CPFF)– Most common form of fixed fee as seller incentivised to
control project as extra work does not result in extra profit
• Cost plus percentage of costs (CPPC)– Illegal in most governments. Why?
• Cost plus incentive/award fee (CPIF/CPAF)
229 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• Contract Types– Time & Material (risk mostly with the
buyer)• Quick to arrange• Suitable for low cost/short term contracts• Simple to administer
230 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• Contract Types– Fixed Price (Risk mostly with the seller)
• Fixed Price Incentive Fee (FPIF)– E.g. Fixed fee plus $X for every month you finish
early
• Fixed Price Economic Price Adjustment– E.g. Annual adjustment based on inflation for
long term contracts
231 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• Contract Types– Purchase Order
• Unilateral (signed by one party only)• Used for simple commodity items
232 © The Delos Partnership 2004
Procurement ManagementProcurement Management
SituationType of Contract
to Use
You need work to start right away ?
You want to buy expertise in determining what needs to be done ?
You know exactly what needs to be done ?
You are buying the services of a programmer to augment your staff ?
You need work done but you do not have time to audit invoices on this work
?
233 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• 3 Solicitation– Bidders conference– Qualified sellers list– Advertising
234 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• 4 Source Selection– Presentations by sellers– Negotiations with short listed sellers
• Main items to negotiate on a contract are– Responsibilities– Authority– Applicable law– Technical and management approaches– Contract financing– Price
235 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• 5 Contract Administration– FP
• Check to make sure work in scope is being done• Watch for overpriced change orders• Check for scope mis-understandings
– T&M• Provide day to day direction• Focus on deliverables and project schedule• Decide if alternative contract type better
– CPFF• Audit sellers costs• Watch for seller adding resources that do not add value
or part of scope
236 © The Delos Partnership 2004
Procurement ManagementProcurement Management
• 6 Contract Closeout (When a contract ends or when terminated before work completed– Product Verification– Financial closure
• make final payments
– Contract performance reporting• Assess effectiveness of contract type chosen
– Contract File• Archive documents
– Procurement Audits• A structured review of the procurement process to capture
lessons learned
237 © The Delos Partnership 2004
The PMI® Project The PMI® Project Management Knowledge Management Knowledge AreasAreasKey ConceptsKey Concepts
All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas
4. ProjectIntegration
Management
4. ProjectIntegration
Management
5. ProjectScope
Management
5. ProjectScope
Management
6. ProjectTime
Management
6. ProjectTime
Management
7. ProjectCost
Management
7. ProjectCost
Management
8. ProjectQuality
Management
8. ProjectQuality
Management
9. ProjectHuman Resource
Management
9. ProjectHuman Resource
Management
10. ProjectCommunications
Management
10. ProjectCommunications
Management
11. ProjectRisk
Management
11. ProjectRisk
Management
12. ProjectProcurementManagement
12. ProjectProcurementManagement
Professional ResponsibilityProfessional Responsibility
238 © The Delos Partnership 2004
Professional ResponsibilityProfessional Responsibility
• In a broad sense professional responsibility means– Do the right thing– Follow the right process– Act ethically, fairly and professionally– Watch for conflicts of interest– Report violations– Increase knowledge and practice– Deal with problems