L6 11 Advanced Project Management

8/13/2019 L6 11 Advanced Project Management

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Session 1

Advanced Project Management

Project management in a strategiccontext


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Learning objectivesAt the end of this session candidates will be able to:

Assess the various definitions and characteristics ofa project

Explore why organisations in different sectors needto engage in projects and consider different types of

ro ect


Evaluate the implications of the iron triangle (QCT)concept

Demonstrate an understanding of external businessenvironmental factors and how they may affect aproject

Appreciate the difference between hard and softsuccess factors

Examine critical success factors and ways in whichprojects may fail


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Definitions of project management

A project is a set of activities with adefined start point and a defined end state,which pursues a defined goal and uses adefined set of resources. (Slack et al)


Project management is the application ofknowledge, skills, tools, and techniques toa broad range of activities in order to meetthe requirements of a particular project.A Guide to the Project Management Body ofKnowledge(PMBOK Guide 2000)


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What differentiates a project frombusiness as usual

Characteristics which distinguish a project from

a regular job or business A project has a specific purpose which can be

clearly identified

Has a defined beginning and end


Cuts across organisational and functional lines Is unique, intended to be done only once (not

repeated)

A plan towards a clear intended result

Has resources allocated specifically to it; is notroutine

Has cost constraints

Is focused on the customer and customerexpectations


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Reasons that organisationsundertake projects

Change in:

The external environment

Markets and customer needs

Technology

Products and services


Processes Globalisation

Impatient customers

Increasing demand for unique and customised

solutions Change within organisations initiated by senior

managers


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The iron triangle

Quality

Achieving an outcome withinthe three parameters is never

easy

The business environment willinfluence the priority of eacharameter


Cost Time

Trade off between the threeoften occur as the projectprogresses for examplespending more to catch up

lost time


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Measures of success hard

Hard measures of performance are (usually)

straightforward to develop and quantify Project iron triangle measures:

Deadlines being met

Pro ect s end within bud et


Project products to specification and fit forpurpose

Business impact of project outputs:

Business benefits achieved

Financial savings produced


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Measures of success soft Soft measures of performance are typically much

more difficult to quantify for example

Customer impact/satisfaction complex to define andevaluate

Future potential again, somewhat difficult andnebulous to ascertain

User satisfaction with a new com uter s stem


Soft measures are good at measuring perceivedchanges and often will provide a more completepicture of the success of a project compared tonarrowly-focussed hard measures

Soft measures are sometimes difficult - but notimpossible - to define and measure. For example; asurvey via a questionnaire could be used to assessseveral aspects of user satisfaction, on a 1-10 scale


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Critical success factors in projects

Clearly defined goals

Competent projectmanager

Top management

Control mechanisms

Feedbackcapabilities

Responsiveness to


Competent projectteam members

Sufficient resourcesallocated

Adequatecommunications

Troubleshootingmechanisms

Project staffcontinuity

Pinto & Slevin (1987) inSlack, Chambers & Johnston


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Ten ways projects may fail

1. Failure to appreciate theimpact of a multi-projectenvironment on singleproject success

2. Irrational promises madedue to a failure to take intoaccount the variablenature of task

6. Reliance on due-date andwasting of any safetyincluded in the project

7. Wasting of resourcesthrough sub-optimalutilisation

8. Wasting of the best-


performance3. Irrational promises madedue to a failure to take intoaccount the statisticalnature of project networks

4. Insufficient identification ofdependencies

5. Focus on, and activemanagement of, only aportion of what should bethe full project

use, multi-tasking andburn-out9. Delivering original scope

when conditions/needschange OR acceptingchanges to scope withoutsufficient impact analysis

10. Multi-tasking

Greer (1999)


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Session 2


Organisational structures and projectstrategy


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Learning objectives

At the end of this session candidates will be able to:

Critically evaluate the key characteristics of thevarious forms of organisation structure and cultureand their consequences for project management


ssess e op ons open o a pro ec managerwhen deciding on internal structures for a project

Explore the various management and contractingoptions and strategies to be considered whenapproaching a project


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The mixed structure(autonomous project teams run alongside functions)

Advantages

Project manager hasauthority over the projectwith senior managementbacking

Grouping necessary

Disadvantages

Secondment toprojects may disturbfunctional priorities

Staff may experienceconflicting loyalty

The project


resources in the projectensures rapid decisionmaking

Relevant expertise isdrawn from various parts

of the business Projects disband when

complete and team returnto permanent functions

between theirfunction and atemporary projectassignment

No development of

an experienced poolof project managerswithin theorganisation


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The matrix structure(projects operate as cross-functional teams)

Advantages

A dedicated projectmanager takesresponsibility for aparticular project

Disadvantages

Decision-making powermay still reside outsidethe project team

Members are likely to be

Project A

Project B

Project C


ross unc onaworking is facilitated

Multiple projectassignments arepossible

Staff retain strong linksto functional groups

wor ng on y par - meon the project and haveat least two managers,which may causeanxiety and conflictingloyalties

There may be a highlevel of competition andin-fighting for resources


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Projectmanager

Projectsu ort

Organisation structureoption 1

The functional

project structure


Designmanager

Constructionmanager

Financemanager

Servicesmanager


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Project

manager

Project

su ort


The work based

project structure


Structures

manager

Drilling module

manager

Process module

manager

Accommodation unit

manager


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Project

manager

Project

su ort


The time based

project structure


Phase 1

manager

Phase 2

manager

Phase 3

manager

Infrastructure

manager


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The work breakdown structure(WBS)

A grouping of project elements or

components into a logical hierarchy whichdefines the total project scope

A WBS is deliverable-oriented and each


descending level within the hierarchyrepresents an increasingly detaileddefinition of a WBS component

Essentially a to-do list of all the

deliverables (not time sequenced activities)


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Why use a WBS?

A WBS ensures all the deliverables of theproject are identified at the outset and

unnecessary work is excluded

It is a valuable precursor to the planningstage


PM can understand linked dependencieswithin the WBS

It provides a solid foundation for high levelestimates

Can serve as a tool for assigningmanagement responsibilities for specificwork packages


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WBS levels within the

hierarchy Level 1 Project level

(single node)

Level 2 Key deliverableelements of the project,when combined meet theobjectives


Level 3 - Sub deliverable -

component deliverablesthat in their totality formdeliverables

Level 4 - Work packages -lower-level deliverable thatmay be assigned to a singleperson/team to plan andexecute


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Contractors, partners and theoptimal project approach

Finding the optimal approach to a project is critically

important

Organisations should explore the balance between-


open market the make or buy decision

Clearly there are advantages and disadvantages foreach option

Carefully analysing the options is necessary toarrive at the optional solution/approach


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Projectmana ement

External

resource

Freelance

project managersupervising

in-house staff

Fixed price

turnkeysolution

Management and execution options


Projectexecution

Externalresource

In-houseresource

In-houseresource

100% in-house

project

In-house projectmanager

supervisingcontract (agency)

staff


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Option 1100% in-house project

Advantages

All project human resources are a known quantity Flexible working between projects and business as usual are

easier to manage

Staff bring existing knowledge of the business


Staff may have good relationships with end users

Disadvantages Projects can only access a limited knowledge base

Staff may be distracted and not focused 100% on the project

Staff may have divided loyalties between managers Project manager may lack experience


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Option 2freelance PM supervising in-house staff

Advantages

Access to proven project management expertise PM is a highly visible asset

Focused solely on project

No political agenda leaves when project complete


Disadvantages

Potential lack of real commitment to long term objectives

PM has limited knowledge of organisation

Questionable commitment to deadlines if hired on day

rates? Cost may be high?


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Option 3In-house PM supervising contract staff

Advantages

PM knows organisational culture and should have good

contacts in the business Familiarity with the project in the context of the business

Can hand-pick project staff (expertise, personality, loyalty)

Contract staff focused solely on project


Disadvantages

Staff may need very assertive supervision by experiencedPM

Costs can spiral if the project is delayed

Completion difficulties may occur if not managedassertively


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Option 4Fixed price turnkey project

Advantages

Risks are transferred to contractor Minimal in-house resources necessary

PM/team focused on the project without any otherdistractions


Disadvantages Need for a crystal clear project definition to be written

Supplier evaluation and procurement activity

No direct executive control over project

Project must be monitored properly

No knowledge development/transfer to in-house staff


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Session 3


Project management methodologies


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Prince2 definition/background

Prince2 is a methodology for managing projectssuch as a logical set of methods

It was originally developed from a method calledPROMPTII in 1975. This was adopted by the CCTA(part of the UK civil service) in 1979

In 1989, Prince was created from PROMPTII and


replaced it as the default method. In 1996, a newversion, Prince2, was published

Prince2's key philosophy is that a business casemust exist to drive the project. The business case isdeveloped before the project is approved, and is

thereafter maintained throughout the project lifecycle The business case is a description of the reasons for

the project and the specific justification forundertaking it


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Prince2: the 8 process modelCorporate/programme management

Directing a project (DP)

Starting up Initiating a Controlling Managing stage Closing a


a project

(SU)

a project

(IP)

a stage

(CS)

boundaries

(SB)

project

(CP)

Managingproduct delivery

(MP)

Planning (PL)


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Prince2 process 1-starting up a project (SU)

This first process in PRINCE is a pre-project process

and should be fairly short. It checks that a project isworthwhile. The process produces 5 managementproducts by:


1. Designing/appointing a project management team2. Converting the project mandate into a project brief3. Creating a risk log4. Defining the project approach5. Planning the project initiation stage


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Prince2 process 2 -initiating a project (IP)

This process is about planning the project in detail. The keyproduct output is the Project Initiation Document (PID).

The process addresses the following issues:

1. A suitable business case must exist to justify proceedingwith the ro ect


2. Production of a project quality plan3. Key resources (money, time and people) are made

available4. The remaining Prince components, namely controls, risk

management, quality, configuration management andchange control, are thought through and documented

Other outputs from this process include blank products inreadiness for use - the quality log, the issue log and thelessons learned log


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Prince2 process 3 planning (PL)

The planning process begins as soon as the project mandate

arrives and is followed whenever project and team managersneed to do further planning. Prince2 uses a product-based

planning technique that can be applied to any type ofproject.


1. Establishing what products are needed - a productbreakdown structure2. Defining the form and content of each product - a product

description3. Determining the sequence in which each product should

be produced - a product flow diagram

Plus the use of other techniques and charts as necessary


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Prince2 process 4 directing a project (DP)

This process runs from the end of the start-up of the project

until its closure. It involves the project board monitoring viareports and controlling through a number of decision points.

Authorising initiation - agreeing the project looks worthwhile -


Stage boundaries - checking results so far to commit moreresourcesAd hoc direction - providing advice and guidance

Project closure - confirming project outcome is as desired

This process does not cover the day to day activities of theproject manager


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Prince2 process 7-managing stage boundaries (SB)

This process provides the project board with key decision

points on whether to continue with the project or not. The keyobjectives are:

1. To assure the ro ect board that all roducts lanned in


the current stage have been satisfactorily completed

2. To provide the information needed for the project board toassess the continuing viability of the project

3. To provide the project board with an end stage report onthe current stage and a detailed next stage plan forapproval


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Prince2 process 8 closing a project (CP)

The purpose of this process is to execute a controlled close to

the project, either at the planned end or premature closure.The key features are:

1. To check the extent to which the objectives set out in


2. To confirm the customer's acceptance of the specialistproducts3. To confirm that product maintenance arrangements are

in place

4. To make recommendations for follow-on actions

5. Archive the project files6. Plan a post project review if relevant7. Notify relevant personnel that the project has closed


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Prince2 - the 8 components

Components are

planning tools andissues that areaddressed as theproject is planned and


Not to be confusedwith Prince2processes which areactivities to complete

the project


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Typical Prince2 organisation

The project board

ExecutiveSenior user Senior supplier


Project manager

Team manager/s(optional)

Project support Configuration librarian


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The executiveThe executive Senior member of the project board

Not involved in day to day tasks Ultimate decision maker

Must ensure that project meets business case

Allocates project assurance responsibilities

Prince2 - key roles andresponsibilities


The project managerThe project manager A key role (together with executive) Person responsible to ensure that the project produces the

required products to the required quality Authority to run the project on a day to day basis, although not

directly responsible for the success of the project Responsible for day to day management and ensuring that project

remains focused on its objectives, within the allocated tolerances


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Prince2 key roles andresponsibilities

Member of the project board

Represents the interest of those supplying the project's products

Responsible for the quality of the products

Authority to commit or acquire supplier resources

Makin sure that the constraints to roduce the roducts are

The senior supplierThe senior supplier


realistic

The senior userThe senior user

Member of the project board

Represents the users needs and expectations

Must ensure that the user needs are specified correctly and that

the project's products meet these needs. Monitoring a project's products is an important project assurance

function of this role

Prince2 key roles and


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Prince2 - key roles and

responsibilitiesProject supportProject support

Administrative help for the project manager and possibly theproject as a whole

Expertise for particular software packages (for example MicrosoftProject, Primavera)

Knowledge and guidance in methodologies (for example Prince2) Filing expertise


,

Team managerTeam manager

Optional role, according to scale of project Reporting to project manager with delegated authority Responsible for producing certain products and managing a team

of specialists to do it Monitors and tracks products outlined in work packages, to their

required quality standards and within the costs agreed with theproject manager

Key process that the team manager is involved with is managingproduct delivery


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Prince2 - key roles and

responsibilitiesConfiguration librarianConfiguration librarian

Custodian of all master copies of the projects products

These can be physical outputs and/or internal products such askey documents and plans Assists the project manager in creating the configuration

management plan Provides status information about each product


Quality review rolesQuality review roles Key emphasis in Prince2 ensuring products are fit for purpose QR roles: chairperson, reviewer, producer and scribe Chair involved in the project quality review procedures and

ensures they are all run correctly Reviewer delivers specialist knowledge

Producer represents (or is) the creator(s) of the product andensures actions are carried out that find solutions for any reportederrors

Scribe records the notes of the quality review including details ofwhose responsibility it is to find solutions and whose to checkthese are implemented


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Background to critical chaintheory

Traditional project estimation techniques are usually

ineffective: Time and resource constraints frequently

violated, for example,

-


Student syndrome (last minute) PMs rely on excessive padding of schedules

and budgets to provide slack

Unknown nature of event interaction

Maylor, 2003Meredith & Mantel, 2005


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Why do projects fail?

Goldratts explanation - a combination of:

Parkinsons law work fills the time available; why makeadded effort to complete a task today that isnt due untiltomorrow?

Self-protection if we finish early this time then we may beiven less time next time


Dropped baton an early finish may not lead to an early

start of the next activity if people arent ready to start (ordont received the signal to start) the next activity

Excessive multitasking individuals trying to do too muchand delays become inevitable

Resource bottlenecks activities held up when keyindividuals required

Student syndrome delay the start of tasks until youabsolutely have to (!)


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The critical chain approach seeks to identify key

resource constraints and plan accordingly It considers the size and rationale of all buffers on

project activities are they excessive?

Can activit buffers be a re ated to an overall

Critical chain theory(Eli Goldratt)


project buffer and reduced?

Challenges student syndrome (why start anactivity at the last possible moment?)

Better to start and finish each activity as soonas possible

Tackles all the above concepts to seek out anoptimal solution for the project


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What is a critical chain?

Two types of dependencies

Technical or task dependency for example youcannot paint walls until the plastering work iscomplete


start any electrical work until Mike is available The critical chain is the longest string (or

chain) of dependencies

Critical chain is the resource-constrained

critical path


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Critical chain: PMBOK definition

Critical chain

Schedule network analysis technique thatmodifies the schedule to account for limitedresources


techniques Build schedule based on non-conservative

estimates for activity durations

Focus is on managing buffer activity durationsinstead of slack


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Session 4


Problem solving, knowledgemanagement and computer tools


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Evaluate, select and apply a variety of problem

solving approaches to a project Brainstorming Ishikawa Fishbone analysis - -


Decision trees Critically evaluate and apply the principles of

knowledge management, knowledge communities,and organisational learning to projects

Assess and critically evaluate the benefits ofvarious electronic and computer-based toolsavailable to a project manager


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Evaluating PM tools andtechniques

Appropriateness Show that you can pick the right tool for the task

Selection


,

well as its capabilities Implementation

Show that you can use the tool/s correctly andwork through to a successful result


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Systematic problem-solving modelProblem

identification

Seekalternative

Selectsolution


Selectdefinition

Evaluate

possiblesolutions

Implement

Check and

amend

Source: Adapted from Maylor


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BrainstormingPurpose

To generate a large number of ideas

To stimulate creativity

Technique

The problem to be solved is described orstated


Everyone participates, either in turn or simply

by calling out in an orderly way A team member captures everything as said on

paper/whiteboard

No judgement or criticism of others suggestionsis allowed when first voiced: the key is toidentify original/innovative ideas in a safeatmosphere

Solutions are then developed by building onothers ideas -piggybacking


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Ishikawa Fishbone analysisPurpose

To visually represent in specific categories the

probable causes of a problem To help people visualise a problem and structure its

analysis

Process


Identify the problem and place it in the effect box

Trace the process through all stages to identify allpossible contributory causes. Use the brainstormingtechnique to consider all the possible causes thatmay result in the effect

Group possible causes under headings (for example,

the 4Ms: methods, manpower, materials, machines;or steps in the process being analysed)


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Example of Fishbone diagram

MACHINERY MANPOWER

Insufficient spaceat locations

Incorrect

Incorrectquantityat location

CountingMixed or mis-laced stock


Error in itemstock control

METHODSMATERIALS

pattern Labelling on

lowest rack

Poor quality

staff training

Poorprocedures

Returns

Excessive

movements

Consecutiverack

numbering

No stockstickers

Loosecomponents

Uneventubelengths

Looseend stops


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Cause-effect-cause analysisPurpose

To overcome stagnation in solving problems thatare complex and difficult to structure

To identify the root cause of a problem

Technique Best results emer e when a skilled facilitator is


available

State the problem and identify the effects Explore how the effects relate to one another

Use why and how successively to explore thecauses of the observed effects

Form a cause-effect diagram on which actioncan be taken


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Decision treesPurpose

To identify likely outcomes and probabilities in a

particular scenario To calculate the expected value of possible

outcomes


ec n que Identify the scope of the decision to be taken

Identify sub-decision points

Identify the outcomes and probabilities possiblefrom each decision point

Calculate the expected values for specificroutes through the tree

Decision tree example


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Decision tree example


Source: Adapted fromGreenwood 1969


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Knowledge management andproject management

How to capture knowledge from past projects (internal

and external) and make it available to managers toimprove performance on new projects?


os comp e on rev ews an repor s

External project audits

Lessons learned information

Rotation of staff

Coaching and mentoring

Careful use of IT tools

Knowledge creation and


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Knowledge creation andmanagement


Source: Adapted from Maylor

Knowledge management and IT


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Knowledge management and ITtools


Project management software and


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Project management software andcommunication tools

Computer tools have become more and moreimportant in modern businesses

Project managers expected to be competent withsuch tools


are dispersed

Stakeholders expect communication to be of a highstandard

Critical for project managers to make the most of allcomputer tools available


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Session 5


The project life cycle and projectdefinition


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Learning objectives


Consider and assess different approaches to theproject life cycle concept

Identify the different stages of the project life cycle


,problems most likely to be encountered at each

stage Appreciate the importance of the project definition

phase Be familiar with the concept of a project initiation

document (PID)


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The project life cycle The PLC is a general concept that every project

goes through a similar life cycle categorised into

different stages (phases) Understanding the cycle, and knowing the current

and succeeding stage aids effective project


Doing the right things at the right time prioritisingand planning effectively

The basic PLC concept is widely acknowledged asuseful by academics and practitioners

Any disagreements are over the precise model to beadopted (such as how many stages?)


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Three-stage project S curve


Mantel, 2003


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Four-stage project life cycle

D1: Define the project

D2: Design the project process

The brief


Source: Maylor

D3: Deliver

the project

D4: Develop

the process

The proposal/PID

The outcomes

Process &product

knowledge


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Maylors four-phase approach

Phase Key issues Key questions

Define the project Organisational & projectstrategy; goal definition

What is to be done?

Why is it to be done?

Design the project Modelling & planning;estimatin resource

How will it be done?Who will be involved in


analysis; conflictresolution; businesscase

each part?When can it start andfinish?

Deliver the project Organisation; control;leadership; decision-making; problem-solving

How should the projectbe managed?

Develop theprocess

Assessment of process& outcomes; evaluation;changes for the future

How can the process becontinually improved?


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Developing a project strategy

Gettingstarted

Movingforward

Bringingit in

Handingit on


AnalysisCommitmentConsultation

PreparationFeasibility

trials

Doing

the workMaking the

change

HandoverSupportReview

Source: CIPS


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Th i f j d fi i i


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The importance of project definition Before undertaking a project, a project manager must

have a clear definition of the clients requirements andexpectations to be fulfilled during the project

Project definition is a process that starts when thecustomer, client or investor first conceives the idea of theproject


This process does not end until all the necessary

information has been gathered and configured in such amanner as to describe the project in its finished condition

If the project is not defined accurately before planning andexecution, the risk of failure is extremely high

Without a clear definition the project manager will not be

able to deliver an outcome that is fit for purpose

F ibilit t di


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Feasibility studies If a potential project is surrounded by uncertainty it may be

rational to start by commissioning a feasibility study prior

to any green light for the actual project

Typically there are three main tests of feasibility:

Technical (can the project be delivered with thetechnology available?)


Financial (will the actual costs of executing the

project be significantly outweighed by the resultantbenefits? cost/benefit analysis)

Organisational (will the deliverables of the projectactually work successfully within the business cultureof our organisation?)

Also there may be logistical and environmental feasibilityissues to consider depending on the project


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Session 6


Planning a project using critical pathanalysis

L i bj ti


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Learning objectives


Draw a network diagram based on informationsupplied

Determine the critical ath of a ro ect


From the critical path calculate the planned project

duration Identify the non-critical tasks and the amount of

float (free slack)

Develop a Gantt chart based on the project

information

Network analysis and critical pathl i (CPA)


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analysis (CPA) Network analysis is used by project managers to plan and

allocate resources to minimise total project duration andproject costs

Critical path analysis is a complementary technique toidentify tasks which must be executed on time in order forthe project to complete on schedule

If carried out roficientl CPA will inform the ro ect mana er


of:

the planned duration of the project which tasks must be carried out exactly to plan

and which have a permissible delay

planned start and finish dates of the project

planned start and finish dates of every project task

This information can then be used as the basis for resourceallocation, costing, tracking and controlling

Basic planning terminology


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Basic planning terminology Task

A specific piece of work which comprises part of theproject work scope. A project is broken down into manytasks. Sometimes called an activity

MilestoneA zero duration task which does not involve any work but

which is nonetheless important as a key projectachievement for exam le contract award ro ect


completion

CriticalTasks which, if delayed, will delay the completion of theentire project. A projects critical path is understood tomean the longest sequence of tasks from start to finish

Non-CriticalAny task which may be delayed for a certain period

(float/slack) without impacting the completion of theentire project

The CPA process


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The CPA processThere are five basic steps in CPA:

1. Identify all the separate tasks that need to beundertaken as part of the project (normally provided

when working through exam questions)

2. Estimate the time it will take to complete each taskalso rovided


3. Identify the logical order in which each task must becompleted (also provided)

4. Construct a network diagram

5. Calculate the planned project duration and otherpieces of useful management information


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A simple house building example


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Task Description Duration Predecessor/s

1 Design house 20d -

2 Lay foundation 12d 1

Consider the following project planning information:


3 Erect walls 20d 2

4 Build roof 18d 3

5 Electrical work 15d 3

6 Plumbing 12d 3

7 Painting 14d 5

8 Fit carpets 5d 4, 6, 7

Note: task durations are in working days not elapsed time so for example 15dequals 3 weeks


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8

F it carpets

5 days

4

Build roof

18 day s

1

Design house

20 day s

2

Lay Foundation

12 day s

3

Erect w alls

20 day s


Electrical work

15 day s

Painting

14 day s

6

Plumbing

12 day s

The longest way from start to

finish is identified as thecritical path marked in red

The planned duration is

therefore 86 days

Float on non-criticaltasks can becalculated:

11 days on Task 4and

3 days on Task 6



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5 7

8

Fit carpets

Tue 27 A pr

Mon 03 May

4

Build roof

Wed 17 M ar

Fri 09 Apr

3

Erect walls

Wed 18 F eb

Tue 16 Mar

2

Lay Foundatio

Mon 02 F eb

Tue 17 Feb

1

Design house

Mon 05 Jan

Fri 30 Jan



Electrical work

Wed 17 M ar

Tue 06 A pr

Painting

Wed 07 A pr

Mon 26 A pr

6

Plumbing

Wed 17 M ar

Thu 01 A pr

Project startdate known

Project enddate calculated

Once a start date is defined (Mon5 Jan) then all subsequentplanned start and finish datescan be calculated

The exact same project as a Gantt(bar) chart


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(bar) chart

ID Task Name

1 Design house

2 Lay Foundations

22 29 05 12 19 26 02 09 16 23 01 08 15 22 29 05 12 19 26 03 10 17 24 31

Jan Feb Mar Apr May Jun


4 Build roof

5 Elec tric al work

6 Plumbing

7 Painting

8 Fit carpets

Network analysis main points


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Network analysis main points A network chart will always give valuable insight into

how the project will be executed. Project staff will be able to plan ahead using this

information: they will have the planned start andfinish times for each activity (usually converted intodates)

Critical tasks will receive the close attention they


eserve t ey s p, t e ent re pro ect w s p -

unless the delay can be recovered) The amount of float on non-critical tasks will be

calculated - also very useful to know This information will aid the development of project

controls Overall, the project will stand a much greater

chance of finishing on schedule


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Session 7


Resourcing and optimising a project

Learning objectives


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Learning objectives

At the end of this session candidates will beable to:

Appreciate how once task based planning has


up) can logically follow

Explain and implement resource smoothing(levelling)

Understand the concept of crashing in projectmanagement

Project resourcing and relatedtechniques


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techniques Once a project plan has been drafted (but not

finalised), resources can be estimated and

attached to the plan This is a valuable exercise evaluating at an early

stage the potential impact of any resource


and facilitate resource-based budgeting to

develop a detailed bottom up budget for the entireproject

Complimentary techniques include resourcelevelling

And a consideration of Goldratts critical chaintheory

Resource based budgeting


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First, identify all significant resources required for theproject

Generally four resource categories on every project:

People (human resources) Construction materials

Equipment


Go through the project task by task and allocate the

resources required for each task Estimate the quantities required for each resource on

each task (consider whether fixed or time-related thismatters)

Determine the cost of each resource (fixed or time-

related?) Calculate total resource costs by task

Aggregate for overall project budget

Simple single task example


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IT Training 10 days duration

2 Trainers

IT services:Total cost

p g p


equ re@ 1,800/day

each

Training materialsRequired: total cost 1,200

Room hire in localHotel: 300/day

Total budget cost for this task? 40,700

Project resourcing and budgets


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j g g

Once the resources have been estimated andquantified for each task a complete project budget

can be developed Costings for each task have been calculated based

on trans arent estimates these can be revised


later and serve as a basis for useful comparisons

with actual values It also facilitates the analysis of each resource

across the project enabling the project manager toplan the mobilisation of resources effectively

Resource histograms can be developed to aid thisprocess

The resource histogram


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g


Week by week analysis


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Resource levelling or smoothingC id h f ll i j l


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g gConsider the following project example


Note that Task 2 (16w) is twice as long as Tasks 3 and 4 (8 weeks)

Consider the resulting resource histogram for Site Engineers

Resource levelling or smoothing


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What is this profile indicating?The peaks andtroughs may be evidence of potential staffingproblems

Levelling within permissible float


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If the site facilities task is now rescheduled to followpumping services there is no effect on the overallproject duration but there is an improvement to the resourceschedule

Levelling within permissible float


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The resource profile for site engineers is now muchsmoother - and much easier to manage

Resource levelling outsidepermissible float


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p

Occasionally genuine resource constraints willimpose real restrictions on the original project plan

For example, a maximum of no more than FOURsite engineers are available whatever the plan


In such circumstances the plan must be changed

to accommodate such realities often involving anecessary delay

These frequently happens when the plan calls forscarce resources such as named professionals


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Crashing techniques and issues


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Crashing may take place during the planningstage in the search of an improved solution

before the project commences or during the project when it has become clear

unacce table dela s are set to occur


In either event, applying resources to shorten

critical tasks should be the first consideration asthe critical tasks determine the project duration

But any unforeseen impact on non-critical tasksshould also be checked in case the critical path

has changed


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Session 8


Controlling and closing a project



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Understand the importance of monitoring

progress on a project and compare it to the plan Appreciate the need for control and interventions

to ensure the project performance (time andbud et is accordin to the lan


or at least within permitted tolerances

Understand the various metrics and methods forassessing project performance

Explain the importance of closing out a project ina well controlled manner

Explain what is involved in the review and

evaluation of a project and the learning stemmingfrom it

Tracking progress and project control is a critical partProject monitoring and control


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of the project management process

Planning and controlling are interlinked: control isthe act of reducing the difference between the baselineplan and what actually happens in practice


Project plans can never be perfect so tracking and

control activity is inevitable

Tracking and monitoring without control (such asintervention) is pointless?

Deciding exactly what information to collect, and atwhat intervals, is a key pre-project decision

Control step 1 - establish baselinesA baseline is a specific version of the plan and budgetifi ll f th ffi i l i i t hi h


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specifically frozen as the official version against whichactual events can be compared

Typical baselines include:Time (schedules)


Scope (WBS)

Changes to baselines should only be made after carefulreview and approval using formal change control system

Re-baselining generally regarded as a regrettable event

All appropriate stakeholders must be notified of authorisedchanges

Control step 2 - monitorperformance


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Project progress must be measured regularly toidentify variances from the plan - early

Collate accurate information related to baselines, forexam le


Percentage completion

Cost expended

Quality tests

Scope change reports

Timely collection (and review) of this information is

critical and will be an ongoing activity throughout theduration of the project lifecycle

Contrast actual project performance against planned

Control step 3 - compare with

baselines


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p j p g pperformance - variance analysis

Tools - earned value, cash flow analysis, scheduleappraisal.


Causes and effects analysed and understood

Key information for regular progress reports

Enables forecasts to completion for example final

completion date based on progress to date andprojected total spend


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Example project scenario


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above

This becomes the schedule baseline plan againstwhich actual progress will be compared

Railway track is to be laid in three consecutive phases

20 week planned project duration

Project commences at start of January

Example with progress added


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The actual progress depicted can be compared with


time now (current date) to give a simple comparison

For example, if the current date is 1 March, it can beeasily observed that the project is running behindschedule

The actual deviation from the plan can be calculatedfor example Phase 2 should have been approximately

35% NOT 20%. Overall actual project progress based on duration

(time) is 36% - but it should have been 45%

Example with work scope added


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Now the amount of track laid is shown - a simple


n ca on o e ac ua wor scope or eac p ase

This can impact the progress measured if the work

scope rather than duration is used as the basis forassessing progress

such as 100 miles of track have been laid out of atotal of 150 66% complete

But clearly the track laying in Phase 3 is moredifficult and time consuming arguably distorting the% progress figure?

Example with costs shown


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If the costs of each task are known then progresstracking can be based on this measure the basisof earned value analysis (EVA)


In the example above the entire project has a totalcost (value) of 520,000

The value earned to date is 200,000 (Phase 1) +60,000 (Phase 2) = 260,000

In other words the project could be said to be 50%complete in terms of earned value

Tracking summary

Different projects will use different means of tracking

The actual metric to be used should have been


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The actual metric to be used should have beendetermined in advance in the interests ofconsistency to avoid contradictory figures as shownon previous slides

When in doubt, the simplest measure is usually best


following questions:

Have we achieved the progress we expected toat this time?

and

Are we spending more or less than anticipatedat this point?

If necessary, decisive action can then be triggered

Quality:

Typical problems requiring

intervention


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Qua ty

Unexpected technical problems

Client requires changes in specifications Inter-functional complications

Costs


Reporting was poor or untimely

Budgeting was inadequate Resource price changes occurred

Time

Initial time estimates unrealistic

task sequencing incorrect

Delays occur outside the control of the project for

example bad weather

Successful project closure

Closing a project successfully can be a verydemanding task Common obstacles ma incl de


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demanding task. Common obstacles may include:

Demobilising staff in a controlled manner: team

may be unwilling to see the project end

Inadequate communications with client contacts


Resistance from end users for example the

deliverables are not as expected

Unforeseen technical teething problems

Dynamic set of project deliverables noagreement that project is actually complete (!)

Changes in the business environment/case

Successful project closure

(completion)The following tasks should be planned as part of the


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The following tasks should be planned as part of theclosure process:

The controlled demobilisation of project staff Conducting an internal project review and


Learning lessons (from successes and failures)

Communicating the review, evaluation and learning Project audit (by independent, external parties)

Settlement of all outstanding invoices, and return ofany funds to source of funding

Documentation filing/archiving

Signing of completion certificates if appropriate


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Session 9


Project stakeholders and riskmanagement



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Critically evaluate the concept of power andinfluence in respect of projects

Identify the key stakeholders for a project and


appreciate how their power and influence changethroughout the life of the project

Apply this knowledge to the effective managementof stakeholder groups over the life of the project

Understand the importance of risk management aspart of best project management practice

Apply a structured, professional approach to therisk management process


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Stakeholder analysis and mapping

High interestLow interest


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NegligibleEffort

required

Keep informedLow Power &Influence


Key Player(Keep on-

board)

Keep satisfiedHigh Power &

Influence

Source: adapted from Mendelow (1991)


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Routine Complex

Type of change:

Overly rich

Communication tools for key players


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Face-to-face

Interactive

Overly-richcommunication


Personal memo

General bulletin

Type of media to use:

Too impersonal

& too high-level

EFFECTIVECOMMUNICATION

Source: Adapted from Lengel and Daft, 1998

Stakeholder management process1. Carefully analyse and segment all the


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stakeholders on the project

2. Develop a communication and consultation planfor each group


.plan who, what, when

4. Implement the plan5. Revisit at regular intervals in the (likely) event that

some stakeholders have changed in terms of theirpower and interest in the project

Engaging key players

Never under-estimate the power of 1-1 consultation


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focus on positives and avoid negative factors

(which often arise as the result of insufficientcommunications)

Ke rinci les:


Understand the power balance and its sources

Establish the basis for relationship Develop friendly rapport

Adopt good practice influencing techniques

Use all forms of communication as appropriate

When in doubt consult!

Risk management on projects All projects face risks of some nature

M t i k i t th j t ti l b t


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Most risks may impact the project negatively but a

few may be positive (for example the risk of beingable to buy computer hardware at a lower price inthe future than available today)


anag ng ose r s s n a pro ess ona manner s akey part of project management

Finding the balance is key Not being completely risk averse and avoiding

acceptable risks

but not being unnecessarily reckless andignoring real risks that could jeopardise thesuccess of the project

The risk management process

1. Identify all potential risks faced by the project andd t ( i k i t )


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document (risk register)

2. Assess the potential consequences of each risk the impact of the risk should it occur


.occur?

4. Develop a risk assessment matrix and decidewhere each risk should be placed

5. Formulate an appropriate and decisive response toeach risk document, and assign to staff memberfor action

6. Monitor through periodic review

Risk aRisk assessment metricsssessment metrics Needs careful thought to achieve balance between

simplicity and effectiveness


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simplicity and effectiveness

Assessment of potential impact of risk: Simple H/M/L or a 5 point scale


Assessment of likelihood of risk: H/M/L or 5 point scale

The granularity chosen determines the number ofcells in matrix

The following slide shows a 5 x 5 matrix with 25cells


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Possible courses of action

Responses to managing risks cangenerally be categorised as follows:


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generally be categorised as follows:

Tolerate accept the risk without anyimmediate action

Treat im lement actions to reduce the im act


and/or probability of risk occuring

Terminate completely cease any project

activities that could result in the risk Transfer transfer the risk to another party for

example insurance policies, contractors

Take the risk implies a positive risk where the

rewards are considered to be worth the risk


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Session 10


Project leadership and teamwork

Learning objectives



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Analyse the difference between leadership andmanagement relating to projects

Appreciate the roles and characteristics of


Evaluate the importance and relationship of

project and people management in achieving

project goals. Understand the importance of teamwork on

projects, and be able to evaluate and apply team-building and development models

Distinctions between leadership and

management

Leadership is the lifting of a persons vision to highersights the raising of performance to a higher


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sights, the raising of performance to a higher

standard, the building of personality beyond itsnormal limitations.

Nothin better re ares the round for such


leadership than a spirit of management thatconfirms in the day-to-day practices of the

organisation strict principles of conduct andresponsibility, high standards of performance andrespect for the individual and his work.

Drucker: The Practice of Management

What do managers do?

Plan

Organise

Establishing overallpurpose or policy


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Organise

Coordinate Control

purpose or policy

Forecasting andplanning


ea

Fayol

allocating work

Giving instructions Checking

performance

Coordinating the

work of othersBuchanan

What do leaders do?

Enable people andgroups to achieve theirbj ti

Administer rewards andpunishments


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objectives

Set and communicateobjectives

Monitor erformance

Provide information,

advice and expertise Provide social and

emotional su ort


and give feedback

Establish basic values

Clarify and solveproblems for others

Organise resources

Make decisions onbehalf of others

Represent the group toothers

Arbitrate in disputes

Act as a father figure

Become a scapegoat

An important distinction

Management involves theclarification of objectives,

planning organising directing

Leadership involves motivating,involving and communicatingwith other people in order for


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planning, organising, directing

and controlling other peopleswork. The emphasis is uponensuring the completion of a

them to achieve specific goals.

The emphasis is uponmarshalling resources toachieve a stated goal or


g ven se o ac v es or as s

by employing, controlling and

monitoring the appropriateresources in an effective andefficient manner.

ambition by leading, directingand/or motivating people to

follow a specific path of action.

Successful project managers will develop a balanceof knowledge and experience in both aspects

Key roles for project managers

Leadership the vision and style

Management making it happen


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Management making it happen

Motivation managing expectations andrewards


Team building skills mix and cooperation

between members Communication different aspects and

different stakeholders

Delegation empowering subordinates to

deliver

Contingent approaches

Developed during the 1990s to overcome weaknesses inthe previous one best way for all circumstancesapproach


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Emphasise and cater for: Strategic context of projects with their wide range of

stakeholders


eve opmen s n ec no ogy New management methods, for example, virtual

teams Development of more capable software

This means selecting and applying one approach (ormore) appropriate to the circumstances(contingencies)

Factors affecting the project

managers role and style

Nature of the project task


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p j

Organisational structure Organisational culture


n v ua mo va ons o e eam mem ers

Style: Cooperation Coercion

Maylor

Responsibilities of a project

manager

Responsibility to the parent organisation


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Responsibility to the client Responsibility to the team members


Above all, the PM must never allow senior

management to be surprised Being prepared to give bad news

Meredith & Mantel, 2005

Managing in four directions

Manage Up


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Manage the Team

Manage the Staff

Manage Across

Source: Buchanan & Boddy, 1998

Belbins team theory

An effective team needs a balance of personality

roles

Belbin identified nine distinctive team roles


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If there is an imbalance (too many of one type, toofew of another) then team performance will be


compromised

Personality roles can be assessed using a

questionnaire

but experienced project managers may apply this

general theory based purely on common sense?

What is needed is not well balanced individuals,but individuals who balance well with

each other. Dr Meredith Belbin


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Tuckmans team development

model Every team will go through four similar stages in

their development the orming model

Forming


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Forming

Storming


Performing

It is in the interest of the project manager to facilitatethis process with the objective of reaching the

performing stage as soon as practicable

and not letting a team become stuck in an earlier

stage

Team development - forming

PERFORMING

Teamperformance


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NORMING

Project manager needs todefine roles and responsibilities;clarify objectives; set goals and


FORMING

STORMING

Elapsed time

targets; develop project plan;allocate resources; initiate

action.

Team development - storming

PERFORMING

Teamperformance

Project manager needs toresolve conflict; clarify roles and

responsibilities; reaffirmobjectives, goals and targets;


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NORMING

objectives, goals and targets;

ensure sufficient resources;motivate; manage politics; urge


FORMING

STORMING

Elapsed time

.

Team development - norming

PERFORMING

Teamperformance


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NORMING


FORMING

STORMING

Elapsed time

Project manager needs toencourage progress; continueto motivate; provide feedback;

communicate; coach and

support; drive performance.

Team development - performing

PERFORMING

Teamperformance


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NORMING


FORMING

STORMING

Elapsed time

continue to encourage andmotivate; provide positivefeedback; communicate;

celebrate success.

Effective delegation in project

management1. Review and specify the task(s)

2. Select appropriate delegate


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3. Set parameters, deadlines, authority, etc


.

5. Monitor progress and provide feedback

6. Evaluate performance

7. Apply lessons learnt

Documents

L6 11 Advanced Project Management