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Project Delivery

Baumgartner Axel Hofer Daniel

Pölzleitner Anton

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Introduction •  After Project planned and initiated, manager has to ensure

remaining on track •  Plan reveals what needs to be done and by whom •  Management Team must know how well the team is

performing (time, cost, quality, benefit expectations) •  Reports needed for corrective action where necessary •  Only on completion of control step the plan can be updated

with the step taken and the cycle repeated •  Anyone who has to manage an aspect of the project has to

know this cycle and follow it to keep control

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Control Cycle

Control

Report Monitor

Delegate

Plan

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Plan

• Road map •  Identifies the deliverables •  Shows to whom the work will be delegated

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Delegate

•  Portfolio management team delegates to project steering group – Commercially or strategically beneficial

outcome •  Project steering group delegates to project

manager – Products on time, on budget and specification

•  Project manager delegates to teams working on the project

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Delegate •  When delegating both sides have to know what

is required and in which constraints •  To ensure that, both parties have to agree on:

– Product description – Planned start/finish – Planned effort/cost – Dependencies – Prerequisite products

•  Focus on outcome expected from delegatee

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Delegate

•  Further set of terms for controlling the delegated work: – Timesheet code – Skills/experience required – Roles – Reporting arrangements – Escalation conditions – Techniques, processes, procedures

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Monitor and Report

• Monitoring: observation and supervision to know the condition of the project

•  Tool: Reports – Show current completion expectations,

Reforecast of originally expectations – Satisfy each tier of management for timely

and accurate information for decision making or corrective action

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Portfolio management team

• Meets every month •  Also process for dealing with exceptional

matter in short term •  Agenda at regular meetings:

– Prospects – Initiated projects – Notifications – Completions – Realizations

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Project First Project Second Project Background ID 1 2 Last assessment date Jan 12th 06 Assessor Pete Robbins Maggie Jones Project start date Dec 10th 05 Sep 10th 05 PSG Sponsor Brad Somerville Mark Knowles Customer representative(s) Kevin Quinn Helen Smith Developer representative(s) Mark Johnson Bupinda Patel PM Project manager Will Stevens Harry King Time Baseline end date May 31st 06 Jun 10th 06 Forecast end date May 31st 06 Sep 30th 06 Variance (weeks) 0 -16 Escalation conditions (weeks) 2 2 Within escalation conditions? Yes No Cost Baseline budget $2,026,971 $101,923 Forecast budget $2,026,971 $115,000 Variance $0 -$13,077 Escalation conditions % 10 10 Within escalation conditions? Yes No Benefits Baseline benefits $2,703,836 $200,101 Forecast benefits $2,703,836 $200,101 Variance $0 $0 Escalation conditions % 10 10 Within escalation conditions? Yes Yes Business case Baseline profit $676,865 $98,178 Forecast profit $676,865 $85,101 Variance $0 -$13,077 Escalation conditions % 10 10 Within escalation conditions? Yes No

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Corporate Dashboard •  Detail of the project register can be summarized

to a corporate dashboard •  Giving an overview of the portfolio •  Indicating where escalation conditions have

been breached –  further information in project register

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Project steering group •  Each group directs individual project •  Ensure something exceptional happens the

project manager alerts PSG •  PSG can intervene trough:

– Project initiation and closure – Holding meetings at the different stages of the

project – Holding unscheduled meetings – Holding scheduled meetings – Project forecast reports

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Stage meetings

•  At the beginning of every stage •  To confirm the project remains viable (cost

– benefits) • Consider performance of the previous

stage • Review and approve plan for the next

stage

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Stage meetings

•  Agenda: – Review of previous stage – Review of project plan – Review of business case – Review of next stage plan – Approval of controls – Approval of proceed

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Unscheduled meetings

• Necessary only if a breach of escalation condition is forecast

•  Agenda: – What has happened to require notifying PSG – The effect on the plan – The options available to correct or

accommodate the matter – The recommended solution and its effect on

plan

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Scheduled meetings

•  Some managers are uncomfortable with management by exception

•  Solution: regular PSG meetings •  Frequency depends on duration of the

project •  Agenda:

– Review and approval of the latest project forecast report from the project manager

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Monitoring and reporting: Project manager

•  Plans, monitors and controls: – Time – Cost – Quality

• Has to: – live up to stakeholders’ expectations – identify risks and problems – motivate team

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Monitoring and reporting: Essential tools

•  Progress meetings •  Project forecast reports:

– Time forecast – Budget forecast – Quality forecast – Product quality log – Benefits forecast – Risk register

•  Timesheet •  Earned value analysis

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Project team progress meetings

• Weekly meetings to assess progress data from team

• Required for reporting to the project steering group

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Progress meetings: Agenda

• Delivery highlights: identify products started or completed, in previous or next period

•  Scrutinise progress and identify variances and their reasons: – Timescales – Budgets – Quality

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Progress meetings: Agenda

• Risks and issues: – Dependencies with other projects – Risk mitigation progress: monitor mitigations – Risk closure: low risks may be considered

closed – New risks

•  Actions and decisions: review and assign

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Project forecast report •  Communication tools between project manager

and: – Stakeholders – Project steering group – Portfolio management

•  Regular and frequent snapshots of the project status

•  Summary PFR: overview for project steering group

•  Detailed PFR: fine granularity, base for summary

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Project forecast report: Terms •  Baseline:

– Data agreed by a recognised authority at project initiation stage

– used to track variances •  Actual to date (ATD): range of measures that

increase over time •  Estimate to complete (ETC): what is expected •  Forecast at completion (FAC): ATD + FAC •  Variance: difference between baseline and

forecast

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Project forecast report: time forecast

•  Lists all products or milestones •  Shows progress made in achieving

targets

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Project forecast report: cost forecast

•  Lists all resource types or milestones •  Shows cost

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Project forecast report: cost forecast

•  Lists all resource types or milestones •  Shows cost •  Required for earned value analysis

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Project forecast report: project quality forecast

•  Lists the intended success criteria •  Shows whether the project meets

expectations

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Project forecast report: product quality log

•  Lists key deliverables or milestones •  Shows status

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Project forecast report: benefits forecast

•  Although benefits cannot be delivered before project completion, benefit forecasts can be helpful if the benefits: – change (under- / overestimation) – have already been delivered – have to be compared

•  Lists benefits •  Shows completion as percentage

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Project forecast report: risk register

•  Lists risks •  Shows:

– Likelihood (0-10) – Impact (0-10) – Factor (likelihood * impact) – Mitigation

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Timesheet

• Delegates report status (timescale, cost) of milestones / products: – Actual to date – Estimate to complete

• Base data for project forecasts

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Earned value analysis

• Measures a project’s accomplishment against the time, cost and quality targets

•  Tracks: – Planned value: budgeted cost of work

scheduled – Earned value: budgeted cost of work

completed – Actual cost: actual cost of work performed

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Earned value analysis

• Measures a project’s accomplishment against the time, cost and quality targets

Cost variance (under budget)

Schedule variance (behind schedule)

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Quality reviews

• Compare draft product and product description

• Different forms of quality reviews: – Testing – Inspection – Demonstration – Formal quality review – Informal quality review

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Quality review process Describe the product's quality criteria

Product description

Build or rework the draft product

Draft product

Does product meet quality criteria? Quality review (prepare, review, follow-up)

Yes No

Baselined product

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Quality review: preparation

• Roles in the review group: – Chair – Scribe – Author – Reviewers – Project manager

• What they need: error list, product description, draft product

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Quality review: review

• Conducting a review: – participants should be prepared – product should be reviewed, not the author – compare product with product description – identify errors, not solutions – annotate trivial errors – avoid irrelevant debate

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Quality review: review

• Conclusion of a review: –  approved – revise and reschedule

  product not ready   product needs significant change   insufficient reviewers   unqualified reviewers   unprepared reviewers

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Quality review: follow up •  Enough time and budget for necessary

changes? •  Release revised version to reviewers

Informal Quality Review:

•  Via mail or email → cheaper, (faster), quality

•  Set deadline

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Control

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Control

• Change request or issue: Anyone

•  Analysis: What are the reasons for the issue or CR?

•  Impact assessment: –  What are the time and money implications oft the issue or CR? –  How will this issue or CR affect the robustness of the design –  How will this issue or CR affect the operability of the solution

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Control •  Solution proposal: •  Any solution will be a compromise •  Fixed deadline   - more resources   - faster resources

•  Fixed budget   - cheaper resources   - fewer resources

•  Original quality   - more resources   - “better” resources

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Control

• Decision:

• Who should decide

• Red amber and green escalation conditions •  Amend plan:

• Change significant – additional changes to project plan and/or business case

• Change requests earlier or more often

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Control

•  Importance of effective control: • Many small changes – significant effect on

project •  Effective control mitigates the risk of a

project failing.

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Danke