Project Management ME LID 8-10-10

8/8/2019 Project Management ME LID 8-10-10

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Understand the growing need for better

Project Management.

Define the term Project; provide

examples, list various project attributes, and

describe the triple constraint of projects.

Learning Objectives


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Describe project management and discusskey elements of the project management

framework, including project stakeholders,

the project management knowledge areas,common tools and techniques and project

success factors.

Understand the role of the Project Managerby describing what project managers do,

what skills they need and the career field.

Learning Objectives


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Describe the project management profession,

including its history, the role of professional

organizations such as the ProjectManagement Institute, the importance of

certification , ethics, and the growth of

project management software.

Learning Objectives


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A project is a temporary endeavorundertaken to create a unique product,

service, or result.

A project ends when its objectives have been

reached, or the project has been terminated.

Projects can be large or small and take a shortor long time to complete.

What is a Project?


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The Project

An activity which has

Definitestarting point.

Definite ending point.

Designed to achieve aspecific objective

A project may refer to an investment onwhich resources are used to create assets

that will produce benefits over an

expanded period of time.


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Project Attributes

A project:

Has a unique purpose.

Is temporary. Is developed using progressive elaboration.

Requires resources, often from various areas.

Should have a primary customer or sponsor.

The project sponsor usually provides the direction and

funding for the project.

Involves uncertainty.


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Project Cycle

Evaluation

Monitoring

Implementation

Preparation

Identification

Approval

Appraisal


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Project Stakeholders

Stakeholders are the people involved in oraffected by project activities.

Stakeholders include:

Project sponsor

Project manager

Project team

Support staff

Customers Users

Suppliers

Opponents to the project


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A project life cycle is a collection of projectphases that defines:

What work will be performed in each phase. What deliverables will be produced and when.

Who is involved in each phase.

How management will control and approve work

produced in each phase. A deliverable is a product or service

produced or provided as part of a project.

Project Phases & the Life Cycle


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More on Project Phases

In the early phases of a project life cycle:

Resource needs are usually lowest.

The level of uncertainty (risk) is highest.

Project stakeholders have the greatest opportunityto influence the project.

In the middle phases of a project life cycle:

The certainty of completing a project increases.

More resources are needed.

In the final phase of a project life cycle: The focus is on ensuring that project requirements

were met.

The sponsor approves completion of the project.


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The Project Cycle


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What is ProjectManagement?

Project management is the application of

knowledge, skills, tools and techniques to

project activities to meet project

requirements.*

*PMI, A Guide to the Project Management Body of Knowledge

(PMBOK Guide)(2004), p. 8.


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History of ProjectManagement

Some people argue that building the Egyptian

pyramids was a project, as was building the

Great Wall of China.

Most people consider the Manhattan Project

to be the first project to use modern project

management.


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Introduction

Many organizations today have a new or

renewed interest in project management.

Computer hardware, software, networks, and the

use of interdisciplinary and global work teams

have radically changed the work environment.

The U.S. spends $2.3 trillion on projects every

year, or one-quarter its gross domestic product,

and the world as a whole spends nearly $10trillion of its $40.7 gross product on projects of

all kinds.*

*PMI, The PMI Project Management Fact Book, Second Edition, 2001.


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DoWe Need ProjectManagement ?

Is the job large or complex ? Are the constraints tight ?

Does the job require integration of

several activities ?

How many boundaries must becrossed ?

Are there any importantenvironmental considerations?


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Better control of financial, physical, andhuman resources.

Improved customer relations.

Shorter development times. Lower costs.

Higher quality and increased reliability.

Higher profit margins. Improved productivity.

Better internal coordination.

Higher worker morale (less stress).

Advantages of Using Formal

ProjectManagement


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A process is a series of actions directed toward a

particular result.

Project management can be viewed as a number of

interlinked processes.

The project management process groups include:

Initiating processes

Planning processes

Executing processes

Monitoring and controlling processes

Closing processes

ProjectManagement Process Groups


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The Cycle of Operations


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Level of Activity and Overlap of Process

Groups Over Time


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Project and Program Managers

Project managers work with project sponsors,

project teams, and other people involved in

projects to meet project goals.

Program: A group of related projects managed

in a coordinated way to obtain benefits and

control not available from managing them

individually.

Program managers oversee programs and often

act as bosses for project managers.


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The Triple Constraint

Every project is constrained in different ways byits:

Scope goals: What work will be done?

Time goals: How long should it take to complete?

Cost goals: What should it cost?

It is the project managers duty to balance these

three often-competing goals.


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The Triple Constraint of Project

Management

Successful projectmanagement means

meeting all three

goals (scope, time,

and cost) and

satisfying the

projects sponsor!


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ProjectManagement Framework


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Relationships Among Process Groups

and Knowledge Areas (contd)


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Relationships Among Process Groups

and Knowledge Areas


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Sample Enterprise ProjectManagementTool


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Nine ProjectManagement

Knowledge Areas

Knowledge areas describe the key competenciesthat project managers must develop.

Four core knowledge areas lead to specific projectobjectives (scope, time, cost, and quality).

Four facilitating knowledge areas are the meansthrough which the project objectives are achieved(human resources, communication, risk, andprocurement management).

One knowledge area (project integrationmanagement) affects and is affected by all of theother knowledge areas.

All knowledge areas are important!


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ProjectManagementTools and

Techniques

Project management tools and techniques assist

project managers and their teams in various

aspects of project management.

Specific tools and techniques include:

Project charters, scope statements, and WBS

(scope).

Gantt charts, network diagrams, critical pathanalyses, critical chain scheduling (time).

Cost estimates and earned value management (cost).


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SAMPLE GANTT CHART

WBS (Work Break Down Structures)


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Why the Improvements?

The reasons for the increase in successful

projects vary. First, the average cost of a project

has been more than cut in half. Better tools

have been created to monitor and control

progress and better skilled project managerswith better management processes are being

used. The fact that there are processes is

significant in itself.*

*The Standish Group, CHAOS 2001: A Recipe for Success (2001).


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Project Success Factors

1. Executive support

2. User involvement

3. Experienced project

manager

4. Clear business objectives

5. Minimized scope

6. Standard softwareinfrastructure

7. Firm basic requirements

8. Formal methodology

9. Reliable estimates

10. Other criteria, such as

small milestones, proper

planning, competent

staff, and ownership


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The Role of the ProjectManager

Job descriptions vary, but most include

responsibilities such as planning,

scheduling, coordinating, and working with

people to achieve project goals.

Remember that 97 percent of successful

projects were led by experienced project

managers.


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Define scope of project.

Identify stakeholders,

decision-makers, and

escalation procedures. Develop detailed task list

(work breakdown structures).

Estimate time requirements.

Develop initial projectmanagement flow chart.

Identify required resources

and budget.

Evaluate project requirements.

Identify and evaluate risks.

Prepare contingency plan.

Identify interdependencies. Identify and track critical

milestones.

Participate in project phasereview.

Secure needed resources.

Manage the change controlprocess.

Report project status.

Fifteen ProjectManagement Job Functions


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Suggested Skills for ProjectManagers

Project managers need a wide variety of skills.

They should:

Be comfortable with change.

Understand the organizations they work in and with.

Lead teams to accomplish project goals.


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Project managers need both hard and soft

skills.

Hard skills include product knowledge andknowing how to use various project management

tools and techniques.

Soft skills include being able to work withvarious types of people.


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Communication skills: Listens, persuades.

Organizational skills: Plans, sets goals, analyzes.

Team-building skills

: Shows empathy, motivates,

promotes esprit de corps.

Leadership skills: Sets examples, provides vision

(big picture), delegates, positive, energetic.

Coping skills: Flexible, creative, patient, persistent. Technology skills: Experience, project knowledge.


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Media Snapshot Good ProjectManagement

Skills from The Apprentice

Leadership and

professionalism are crucial.

Know what your sponsor

expects from the project,

and learn from your

mistakes.

Trust your team and

delegate decisions. Know the business.

Stand up for yourself.

Be a team player.

Stay organized and dont be

overly emotional.

Work on projects and for

people you believe in.

Think outside the box.

There is some luck involved

in project management, and

you should always aim high.


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Most Significant Characteristics of Effective

and Ineffective ProjectManagers


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Importance of Leadership Skills

Effective project managers provideleadership by example.

A leader focuses on long-term goals and

big-picture objectives while inspiringpeople to reach those goals.

A manager deals with the day-to-day details

of meeting specific goals.

Project managers often take on both leader

and manager roles.


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ProjectManagement Office (PMO)

A PMO is an organizational group responsible for coordinating

the project management function throughout an organization. Possible goals include:

Collect, organize, and integrate project data for the entire

organization.

Develop and maintain templates for project documents. Develop or coordinate training in various project

management topics.

Develop and provide a formal career path for project

managers. Provide project management consulting services.

Provide a structure to house project managers while they are

acting in those roles or are between projects.


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The ProjectManagement Profession

Professional societies such as the Project

Management Institute (PMI) have grown

significantly. There are specific interest groups in many

areas, such as engineering, financial services,

health care, and IT.

Project management research and certification

programs continue to grow.


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ProjectManagement Certification

PMI provides certification as a ProjectManagement Professional (PMP).

A PMP has documented sufficient project

experience, agreed to follow a code ofethics, and passed the PMP exam.

The number of people earning PMP

certification is increasing quickly. PMI and other organizations are offering

new certification programs


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Information

Technology Project

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Growth in PMP Certification, 1993-2003

1,000 1,9002,800

4,4006,415

10,086

18,184

27,052

40,343

52,443

76,550

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1 993 19 94 1995 1996 19 97 199 8 1999 2000 200 1 200 2 20 03

Year

#PMPs


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Project Execution

Project execution usually takes the most time and

resources.

Project managers must use their leadership skills to

handle the many challenges that occur during project

execution.

Many project sponsors and customers focus on

deliverables related to providing the products,

services, or results desired from the project.

A milestone report can keep the focus on completing

major milestones.


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ProjectMonitoring and Controlling

Involves measuring progress toward projectobjectives, monitoring deviation from the plan,

and taking corrective action to match progress

with the plan.

Affects all other process groups and occurs

during all phases of the project life cycle.

Outputs include performance reports, requested

changes, and updates to various plans.

CONCEPTUAL DIFFERENCE


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Monitoring (M)

- Checks progress

towards output targets

- Stresses conversion of

inputs to outputs

- Reports on current

progress at short

intervals for immediate

corrective action

Evaluation (E)

- Measures performance

in terms of objectives

- Emphasizes achievement

of overall objectives

- Provides in depth

assessment of

performance for future

feedback

CONCEPTUAL DIFFERENCE

PRACTICAL DIFFERENCE


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Monitoring (M)

- Keeps track of daily

activities

a continuousfunction

- Accepts objectives,targets and norms

stipulated in the

project documents

Evaluation (E)

- Takes long range view

through in depth study

one time function

- Questions pertinence &validity of project

objectives / targets

PRACTICAL DIFFERENCE


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i) Sorting out various problems which

hinder or might hinder the progress

of the project.ii) Devising ways and means to monitor

the progress of the project.

iii) Co-ordination with outside agencies.

BENEFITS OF INTERNAL MONITORING


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Programme Evaluation and ReviewTechnique (PERT)

Critical Path Analysis (CPA)

Critical Path Method (CMP)

Critical Path Planning (CPP)

Use of Gantt Bart Charts

Methods / Techniques of Internal Monitoring


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A comparison should be made of theplanned progress with the actual

progress.

Charts and diagrams should be used for

such a comparison where it is possible.

Physical and Financial Progress

RELEASE TREND


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RELEASE TREND

Typical Project

0

20

40

60

80

100

1 2 3 4 5 6 7 8 9 10 11 12

Time

Release

Requirement Release

RELEASE TREND


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RELEASE TREND

Project Requiring Upfront Releases

0

20

40

60

80

100

1 2 3 4 5 6 7 8 9 10 11 12

Time

Release

Requirement Release


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Project Closing

Involves gaining stakeholder and customer

acceptance of the final products and services. Even if projects are not completed, they should

be formally closed in order to reflect on what

can be learned to improve future projects. Outputs include project archives and lessons

learned, which are part of organizational process

assets. Most projects also include a final report and

presentation to the sponsor or senior

management.

IMPLEMENTATION ISSUES


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Unclear or inadequate definition of requirements

Weak Conceptual Planning & Preparation of PC-I

Poor initial appraisal, Scrutiny & Evaluation

NoIntegration between P

hysical

Targets andFinancial Phasing

Confusion & lack of responsibility

Non Synchronized Coordination

Capacity of Utilization

Physical Targets not properly prepared

IMPLEMENTATION ISSUES

GENERAL EXECUTIONAL PROBLEMS


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GENERAL EXECUTIONAL PROBLEMS

Appointment of suitably qualified PDs

Poor planning, management & implementation.

Failure to use available techniques (because of

lack of skill, resources etc.)

Inadequate information flow /

Reporting

Failure of Consultants & Contractors.

Faulty Designs , equipments, material and

workmanship.

Payment Procedure

Improper Supervision by Consultant/PD/Works

Labour Troubles

Accident and bad weather


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Standard Guidelines for

Implementation ofDevelopment Projects

Step I Appointment of Project Director


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For successful implementation, the Project

Director is a key position to be filled in theorganizational set-up.

As per decisions of National Economic Council(NEC) of July 04, 1988, further endorsed by the

CDWP on March 01, 2008 that a suitably qualified

Project Director should be appointedin each

project (CDWP Level) who should not normallybe transferred during the currency of the project.

Step I Appointment of ProjectDirector

Contd

Step I Appointment of Project Director


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The Project Director should be delegated fullAdministrative and Financial powers commensurate

with the level of his/her responsibility and size of the

project given to him/her for implementation.

For efficient technical and administrative control, the

Project Director ought to be well-versed in the specific

field with long and rich experience gained on similar

projects executed in the past under similar conditions.

Step I Appointment of ProjectDirector

Step II Review of PC I


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Step II Review of PC-I

Checking of administrative approval in letter andspirit especially check financial allocation and

arithmetics.

Review and assessment of the PC-I allocations v/sfacilities proposed.

Preparation of list of infrastructural development

requirements and estimation as per PC-I proposedrates.

Step III Scheduling


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Step III Scheduling

Preparation of physical schedule ofactivities (The scheduling of activities

and availability of physical facilities are

interlinked with thecompletion periodand Implementation Schedule should be

based on Bar Charts/PERT/CPM.)

Step IV Hiring of Consultants for Design & Construction


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Supervision

Advertisement for Pre-qualification of Consultants, approval

and press appearance Receipt of Applications

Scrutiny and Evaluation of Applications

Pre-qualification Evaluation by the Committee (Works /Building / Campus)

Approval ofPrequalified Consultants by CompetentAuthority

Formulization of ToRs for the Consultants to be hired forPlanning, Designing and Construction Supervision.

Finalization of TOR's & Approval by the Competentauthority

Issuance of TOR's to Pre-qualified Consultants Contd



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Receipt of Technical and Financial Proposals

Opening of Technical Proposals

Scrutiny & Evaluation of Technical Proposals

Opening ofFinancial Proposals

Final Evaluation Report (Technical & Financial)

Approval by the Competent Authority

Letter ofIntent & Draft Agreement

Contract Negotiations (if applicable)

Audit & Legal Vetting

Contract Signing & Commencement ofServices


Supervision

Step V Design Development


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Survey & Investigations (Topographic Survey & Geo-TechInvestigations)

Master Planning if required including Zoning Plan, Schematic /Line Plan

Approval ofMaster Plan by Competent Authority

Preparation of conceptual design based on reviewed PC-I & asper step -II

Preparation ofPreliminary Architectural Design options

Presentation in the End User Meeting and Building/CampusCommittee

Finalization of Architectural Design

Preparation of Detail Designs and Technical specifications

Contd



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Preparation of Engineers Estimates / BoQ by adaptingeither Present Market Survey or a pre-tender quotation or in

vogue updated schedule of rates of the respective province.(Refer 4.14 k of Manual for Development Plan Planningand Development Division, Government ofPakistan.)

Approval from the University / Institute

F

inalization of Tender documents(Planning & DevelopmentDivision, GoP, has issued an SRO bearing No.

8(60)WR/PC/2008 dated February 12, 2008 regardingImplementation of Revised PEC Standard Bidding/ContractDocuments)

Review and approvals

N.B. The project implementation agencies/departmentsshould seek the approval of the competent authority as soonas they consider change either in cost and scope of work was

imminent


Step VI Tendering and Award


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Step VI Tendering and Award

Advertisement for Prequalification

Receipt of Applications Scrutiny / Evaluation of Applications

Approval of Prequalification

Issuance of Tender Documents Receipt of Tenders

Opening & Scrutiny

Evaluation by the Committee(Works/Building/Campus)

Award & Contract

Approval by Competent Authority

Step VII Construction Supervision


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Step VII Construction Supervision Submission of Bid Bond, Performance Guaranty etc.

Mobilization, Site Clearance & Layout of Designs

Utility Connections

Excavation in Foundation

Structural Works

Sanitary Works Electrical Works

Plastering

Wood Works

Finishing Works

External Development & Landscape

Handing Over, Defect List

Rectifications

Project Coordination


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Completion of the project is dependent upon

completion of some other facilities which are to beprovided by the organizations like;

Provision of electricity,

roads, Sanitation & sewerage, and

Telephone & Internet

Completion of all these activities, even if these are

not critical, needs better coordination for the

success of the project.

Project Coordination

PROJECT EVALUATION


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Means to identify, analyze and assess

projects costs and benefits on completion ofthe project.

The basic objective of evaluation is toascertain the real worth of a project and to

assess the effects/impacts and benefits being

achieved. The examination of differentaspects of the project can provide important

lessons of experience for new projects.

PROJECT EVALUATION

TYPES OF EVALUATIONS


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TYPES OF EVALUATIONS

Situation Analysis

Effect Analysis

Efficiency Analysis

Impact Analysis

Situation Analysis


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Situation Analysis is the simplest form of

analysis where all additional benefits areassumed to results from the investment.

Effect Analysis is required to isolate thespecific contribution of the investment. Such

an exercise will require the projection of

benefits over the life of the project under'without' project conditions but taking into

account other factors. In summary a

Situation Analysis is ' before and after

Situation Analysis

Effect Analysis


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Effect Analysis is under "with and without"project conditions.

Efficiency Analysis is an integral part of

evaluation exercise where the actual and

anticipated costs and benefits are compared

with one another and in relation to the actual

and anticipated benefits and cost.

Effect Analysis

Efficiency Analysis


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