Project ManagementEMBAStrategy Implementation1OverviewMorningIntroduction to project managementWork Breakdown StructureBuilding the Project PlanImplementing the Project PlanAfternoonTwo advanced exercises2What is a project?A project is a temporary endeavor undertaken to create a unique resultProjects have a beginning and endA project has specific deliverablesTeams are usually disbanded at the endOperations are repetitive and on-goingProjects are an increasingly important means of implementing strategyProject goals can be progressively elaborated over time

3What is PM?Project management is the application of knowledge, skills, tools, and techniques to meet project requirements. Now an IEEE Standard (IEEE1490)Project Management InstituteGuide to the Project Management Body of Knowledge (PMBOK)PM is seen in a broad contextManagement of team, risk, quality & external stakeholders as well as cost and time4Why adopt PM?Most projects are over time and over budget (often significantly)On average only 25% of projects meet all of their goals, around 25% fail completelyAccording to the CHAOS report the average project in 2001 was:163% over time145% over budget5BenefitsPM can:Justify work and changesImprove tracking of critical variablesIdentify tasks at differing levels of complexityDecrease project costsLet everyone know how they fit inImprove client reportingDecrease development time/costs and increase productivity and reusability

If you fail to plan then plan to fail

6Critical VariablesScopeTimeCostQuality/Risk7Stages of PMInitiatingPlanningExecutingControllingClosing

8Initiating: Scope and CharterProject scope managementDefining and controlling what is, or is not, included in the project deliverablesProject charterA written statement of project scope that is formally agreed with stakeholders and shared with the team9Project CharterProblem/opportunityProject name, sponsor, managerSingular Project GoalObjectives that are Specific, Measurable, Assignable, Realistic, Time based (SMART)Work Breakdown Structure (WBS)Success criteriaAssumptions, risks, obstacles

10Issues in Scope MgtScope VerificationA process should be defined for how the stakeholder will formally accept that deliverables have been achievedCan verify at various stages or phasesVerification may be conditionalScope ChangeA process should also be defined for how scope can be adjusted and the resulting impacts on cost, time, and risk quantified.11Work Breakdown StructureA WBS is a categorization and decomposition of project deliverablesWork packages are the lowest level of the structureThey are the smallest deliverables 8-80 hours of work (1 day-2 weeks per person/team)Can be further decomposed into activities or tasksThe WBS is the input to all other project plansWork that is not in the WBS is not in the project !12WBS ProcessIdeally a team-based activity (offline with whiteboard)Break the project into phasesBy lifecycle, milestones, or obligationsDecompose the phases into discrete deliverablesDecompose the deliverables into work packages using the 8/80 ruleMust be able to assign time and resourcesCreate WBS diagram13WBS by Output Screen clipping taken: 10/29/2007, 12:43 PM

14WBS by Phase Screen clipping taken: 10/29/2007, 12:56 PM

15WBS Process ctd.Next stepsInclude milestones to mark end of each phaseConvert WBS to MS Project to create timeline (see Donaldson example)Present to project sponsor and key project stakeholdersGet formal approval16Gantt Chart of WBS

17Geoff Choo on WBSBegins with a lifecycle of major phasesI work the WBS in iterative cyclesStart with high level activitiesAdd sub-activities (note that activities are not really part of WBS)Decompose as deeply as you needDown to one individual working 1-10 daysThe lowest level should have one individualA list of assignments and accountabilitiesLet the team fill in low-level activitiesLength of time predicted from personal experience, historical data and team18ExerciseIn your teams, create a WBS for the EMBA trip next yearUse MS Project to determine how early the planning needs to start if the trip must start no later than December 4, 2008MS Project SkillsEnter phases, tasks, and durationsLink phases (create dependencies)Set milestonesSet start date19Building the Project PlanBy now, we have the project charter, scope, and WBSWe need to add:Schedule and cost estimatesPerformance measurement baselinesMilestones and target datesRequired staffExtrasRisk, quality, staffing, communications20Note on ActivitiesTechnically, the WBS contains only deliverables not activitiesThe work packages need to be decomposed into activities (even sub-activities)Choos advice is useful 1 person for 1 to 10 days21Activity Sequencing 1Once the activities have been defined they need to be sequenced

22Activity Sequencing 2Constraints (see advanced tab)Do what? Start/Finish When? No earlier than/ No later than/ On this date / As Soon as Possible /As Late as PossibleLag time is also possibleDouble click on a task to set all task information

23Activity DurationOnce sequencing has been done, the work required for each activity has to be estimatedEstimates based on experience/historyTime units m, h, d, w, moWork is the total number of actual, physical, hands-on time required to complete an activity or task24MS ProjectBy default, One day equals 8 hours, one week equals 40 hours, and one month equals 20 working days. 8:00 A.M. to 5:00 P.M. is the default work day.Change Tools:Options:ScheduleDefault task type: Fixed workShow assignment units as: DecimalChange Gantt chart/entry tableHide start/finish dates, add Work columnWindow: Split, View: Task Details Form

25Calculating DurationDuration = Work/Resource UnitsIf a resources workday is eight hours and he or she is assigned to work on a task at 100% Units (for eight hours of work), then the Duration is eight hours (one day by default).

Now lets say you change the Units to 50%. Then the Duration becomes 16 hours or two days, because if a person is working half of an eight-hour day on this task, then it will take them 16 hours (two days) to complete eight hours of work.We can fix duration, work or units I prefer fixed work so duration and resources float26Network DiagramsWorking with units of time rather than specific dates allows more flexibilityWe have used Gantt charts, a project network diagram is an alternative way of representing a project.Establishes the critical pathContingency planningAllows the team to tinker with alternate dependencies and constraintsNetwork Diagram Example27Critical Path AnalysisThe critical path is the longest duration from project start to finishIf any activity on the critical path is delayed the project is going to be lateSlack is the limit an activity not on the critical path can be delayedFree slack the time a single activity can be delayed without delaying successorsTotal slack the time an activity can be delayed without delaying the entire projectProject slack the time the project can be delayed before missing the customer deadline28Adjusting the critical pathFast trackingParallel rather than sequential (FS to SS)Can add some lag to second task to create a partial overlapCan be risky if first task delayedCrashingMore resources but not all tasks can be shortened with more resources

29Management ReserveAlways reflect the accurate amount of time it should take to complete a taskDont inflate time to allow for mistakes, rework, and late activitiesParkinsons law work will expand to fill the time availableA management reserve is an artificial task at the end of a project10-15% of total timeOverruns are applied to the reserve30Assigning ResourcesA resource is defined as any people, equipment, or materialsView Resource Sheet, Table: EntryKey variablesType work (per hour), material (per unit), or cost (per activity) Max Units: 50% or 3 engineersRates per time period (m, d, mo, y) or per useDouble click for resource informationFlexible availability, costs, calendarAccrual methods start, prorated, end31Interview with Niral ModiInsightsIncludes 12-15% variance for unknownsAssessing time required and assigning resources with no slack (or over-allocation) are the toughest tasksConsult team members so you dont create a schedule you cant deliverDont be too generous thoughOn going deliverables and communication with client can make a difficult project easier32ExerciseTake your WBS from the first exercise and convert it to a project schedule by adding activities using the 8/80 ruleAssign resources Keong, Dean Jarley, Jan, Bob, Travel Agent, Other Internal & External PartiesFind the critical path and then try shorteningWhat risks does this entail?33Implementing the Project PlanTeam has to be motivated and monitoredProject status meetings (usually weekly)Reporting, Generating a sense of responsibility & ownership (peer pressure helps the former)Acknowledgements and thank yousReview of status and risksRemediation (if necessary)34TrackingTools to track include:E-mail, spreadsheets, web forms, MS project direct, MS project serverEach report should include costs and % of total work completedIf work is getting off scheduleAdd additional resourcesInvoke the management reserve (reduce the reserve and add time to late task)Reassign the work unit35Tracking FinancesTermDefinitionSample ValueBudget at Completion (BAC)Estimated total cost of project$100,000Percent actual complete (%A)Actual reported amount of work completed20%Percent planned complete (%P)Planned proportion of work that should have been completed25%Earned Value (EV)%A x BAC$20,000Planned Value (PV)%P x BAC$25,000Actual Costs (AC)Funds actually expended$15,00036Tracking FinancesTermDefinitionSample ValueCost VarianceEV-AC+$5000Schedule VarianceEV-PV-$5000Cost performance index (CPI)EV/AC20/15 = 1.33Schedule performance index (SPI)EV/PV20/25=0.8Estimate at completion (EAC)BAC/CPI100/1.33=75.19Estimated timeTotal Est time/SPI6 mths/.8=7.5mths37Interview with Jason DuigouLack of supervision is fatalComing in on time and budget is bloody difficultTry using dynamic digital dashboards for feedback (especially when team is dispersed)Throttle resources up and down as neededOngoing reward and recognitionCommunication and feedback is the keyLearn from lessons learned after action38ExerciseComplete Exercise 3b on page 31039AFTERNOON ACTIVITIESIn your teams, completethe Blue Zuma Project Parts 1-5The Conveyor Belt ProjectYou are free to leave when the exercises are completed!I will for consultation on all issues (except the answers)Baseline, tracking, leveling40