PPMTCE-408T

Engr. Faisal ur RehmanCEDN-W.F.P UET P

Presentation Outline

• Project Processes

• Project Management Integration and its Components

• Project Scope Management

• Project Time Management

• Tools and Techniques for Project Cost Management

Project Processes

A process is a set of interrelated actions and activities that are performed to achieve a pre - specified set of products, results, or services.

Processes Performed by project team falls under two types:

1. The project management processes are grouped by their performance for an integrated purpose.

– (The purpose is to initiate, plan, execute, monitor and control, and close a Project)

2. Product-oriented processes specify and create the project's product. Product-oriented processes are typically defined by the project life cycle

Project Processes

Project Process group are:

Initiating Process Group

Planning Process Group

Executing Process Group

Monitoring and Controlling Process Group

Closing Process Group

Project Processes

Project Integration Management

• In the project management context, integration includes characteristics of unification, consolidation, articulation, and integrative actions that are crucial to project completion, successfully meeting customer and other stakeholder requirements.

• Integration, in the context of managing a project, is making choices about where to concentrate resources and effort on any given day, anticipating potential issues, dealing with these is sues before they become critical, and coordinating work for the overall project good.

Project Integration Management

The integrative project management processes include:

1. Develop Project Charter _ developing the project charter that formally authorizes a project or a project phase.

2. Develop Preliminary Project Scope Statement _ developing the preliminary project scope statement that provides a high-level scope narrative.

3. Develop Project Management Plan _ documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into a project management plan

4. Direct and Manage Project Execution _ executing the work defined in the project management plan to achieve the project' s requirements defined in the project scope statement.

5. Monitor and Control Project Work _ monitoring and controlling the processes used to initiate, plan, execute, and close a project to meet the performance objectives defined in the project management plan.

Project Integration Management

1. Integrated Change Control _ reviewing all change requests, approving changes, and controlling changes to the deliverables and organizational process assets.

2. Close Project _ finalizing all activities across all of the Project Management Process Groups to formally close the project or a project phase.

1. Develop Project Charter

• The project charter is the document that formally authorizes a project.

• The project charter provides the project manager with the authority to apply organizational resources to project activities.

1. Develop Project Charter

Projects are usually chartered and authorized external to the project organization by an enterprise, a government agency , a company, a program organization, or a portfolio organization, as a result of one or more of the following:

1. A market demand

2. A business need

3. A customer request

4. A technological advance

5. A legal requirement

6. A social need

2. Develop Preliminary Project Scope Statement

The project scope statement is the definition of the project-what needs to be accomplished.

The Develop Preliminary Project Scope Statement process addresses and documents the characteristics and boundaries of the project and its associated products and services, as well as the methods of acceptance and scope control.

2. Develop Preliminary Project Scope Statement

A project scope statement includes:

1. Project and product objectives

2. Product acceptance criteria

3. Project requirements and deliverables

4. Project constraints

5. Initial defined risks

6. Schedule milestones

7. Initial WBS

8. Order of magnitude cost estimate

9. Project configuration management requirements

10. Approval Requirement

3. Develop Project Management Plan

The Develop Project Management Plan process includes the actions necessary to define, integrate, and coordinate all subsidiary plans into a project management plan.

3. Develop Project Management Plan

1. The project management processes selected by the project management team

2. The descriptions of the tools and techniques to b e used for accomplishing those processes

3. How work will be execute d to accomplish the project objectives

4. How changes will be monitored and controlled

5. How configuration management will b e performed

6. The need and techniques for communication among stakeholders

4 Direct and Manage Project Execution

The Direct and Manage Project Execution process requires the project manager and the project team to perform multiple actions to execute the project management plan to accomplish the work defined in the project scope statement.

1. Obtain quotations, bids, offers, or proposals as appropriate

2. Create, control, verify, and validate project deliverables

3. Manage risks and implement risk response activities

4. Manage sellers

5. Adapt approved changes into the project ' s scope, plans, and environment

6. Establish and manage project communication channels, both external an d internal to the project team

7. Collect project data and report

8. Collect and document lessons learned, and implement

5 Monitor and Control Project Work

1. Comparing actual project performance against the project management plan

2. Assessing performance to determine whether any corrective or preventive actions are indicated, and then recommending those actions

3. Analyzing, tracking, and monitoring project risks

4. Monitoring implementation of approved changes when and as they occur.

6 Integrated Change Control

Change control is necessary because projects seldom run exactly according to the project management plan.

1. Identifying that a change needs to occur or has occurred.

2. Influencing the factors that circumvent integrated change control so that only approved changes are implemented.

3. Reviewing and approving requested changes.

4. Managing the approved changes

5. Reviewing and approving all recommended corrective and preventive actions.

7 Close Project

The Close Project process involves performing the project closure portion of the project management plan.

In multi-phase projects, the Close Project process closes out the portion of the project scope and associated activities applicable to a given phase.

Administrative closure procedure: This procedure details all the activities, interactions, and related roles and responsibilities of the project team members and other stakeholders.

Contract closure procedure: Includes all activities and interactions needed to settle and close any contract agreement established for the project

Project Scope Management

• Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully

• Scope Planning _ creating a project scope management plan that documents how the project scope will be defined, verified, controlled

• Scope Definition _ developing a detailed project scope

• Create WBS _ subdividing the major project deliverables and project work into smaller, more manageable components.

• Scope Verification _ formalizing acceptance of the completed project deliverables.

• Scope Control_ controlling changes to the project scope.

Project Scope Management

• Product scope. The features and functions that characterize a product, service, or result

• Project scope. The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions.

Project Time Management

• Project Time Management includes the pro cesses required to accomplish timely completion of the project.

• Activity Definition

• Activity Sequencing

• Activity Resource Estimating

• Activity Duration Estimating

• Schedule Development

• Schedule Control

Project Cost Management

• Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.

• Cost Estimating

• Cost Budgeting _ aggregating the estimated costs of individual activities or work packages to establish a cost baseline.

• Cost Control _ influencing the factors that create cost variances and controlling changes to the project budget.

Cost Estimating : Tools and Techniques

• Analogous Estimating Analogous cost estimating means using the actual cost of previous, similar projects.

• Determine Resource Cost Rates must know the unit cost rates, such as staff cost per hour and bulk material cost per cubic yard, for each.

• Bottom-up Estimating This technique involves estimating the cost of individual work packages or individual schedule activities with the lowest level of detail.

Cost Estimating : Tools and Techniques

• Parametric Estimating _a statistical relationship between historical data and other variables

• Project Management Software _cost estimating software applications, computerized spreadsheets, and simulation and statistical tools

• Vendor Bid Analysis

• Reserved Analysis (Contingency Plan)

Cost Budgeting : Tools and Techniques

• Cost Budgeting is aggregating the cost of individual activities to establish a common baseline

• Cost Aggregation: Calculate WBS cost and sum all WBS costs

• Reserve Analysis:

• Parametric Estimating:

• Funding Limit Reconciliation:

– Large variations in the periodic expenditure of funds are usually undesirable for organizational operations.

– Funds is reconciled with the funding limits set by the customer or performing organization

Cost Control: Tools and Techniques

• Cost Change Control System:

– Documented in the cost management plan

– Defines the procedures by which the cost baseline can be changed.

Cost Control: Tools and Techniques

Performance Measurement Analysis Assess the magnitude of any variances Earned value technique (EVT)

Planned value (PV). PV is the budgeted cost up to a given point in time.

Earned value (EV). EV is the budgeted amount for the work actually

completed Actual cost (AC). AC is the total cost incurred in

accomplishing work on the schedule activity or WBS

Cost Control: Tools and Techniques

Estimate to complete (ETC) and estimate at completion (EAC).

Cost variance (CV). CV equals earned value (EV) minus actual cost (AC). CV= EV – AC

Schedule variance (SV). SV equals earned value (EV) minus planned value (PV). SV = EV – PV

Cost performance index (CPI). A CPI value less than 1.0 indicates a cost

overrun of the estimates. CPI = EV/AC Schedule performance index (SPI). to predict the

completion date SPI = EV/PV

Cost Control: Tools and Techniques

• Forecasting: Forecasting includes making estimates or predictions of conditions in the project. Helps to estimate ETC and EAC

• Project Performance Reviews

– Performance reviews compare cost performance over time, schedule activities or work packages overrunning and underrunning budget

– Variance analysis.

– Trend analysis.

– Earned value technique