Project management methodology

Project Cycle Management-----

A short training course in project cycle management for subdivisions of MFAR in Sri Lanka

MFAR, ICEIDA and UNU-FTP

Icelandic International Development Agency (ICEIDA)

Iceland

United Nations University Fisheries Training Programme (UNU-FTP)

Iceland

Ministry of Fisheries and Aquatic Resources (DFAR)

Sri Lanka

Contents

• Introduction to project management methodology

• Project framework

• Project progress monitoring and controlling

Learning objectives

• After this lecture participants will understand the methodology behind project management and get introduced to tools used to plan and schedules to manage projects

Project management questions

• What activities are required to complete a project and in what sequence should they be carried out?

• When should each activity be scheduled to begin and end?

• Which activities are critical to completing the project on time?

• What is the probability of meeting the project completion due date?

• How should resources be allocated to activities?

Project Management

Integration Management

ScopeManagement

TimeManagement

Cost Management

Quality Management

Human Resource

Management

Communications Management

Risk Management

Procurement Management

The technical and socio-cultural dimensions of the project management process

Project framework

Risk & Issue Management

Donor/Sponsor ManagementCommunication Management

Execute & Control

Planning and

Resource Allocation

Planning and

Resource Allocation

Track & Control

Track & Control

ReportingReporting

ReviewReview

Prepare

Definition / Scope /

Requirements

Definition / Scope /

Requirements

Close

Completion &Assessment

Completion &Assessment

• Scope Management

• Workplan Management

• Resources Management (Time, Cost, People)

• Deliverables Mgmt

• Quality Management

Initiate

StartupStartup

Project Plan Development Workflow

• Initial Project Information

• Create Project WBS• List Major Milestones• Develop Sequence of

Activities• Create Resource

Pool• Develop Initial

Budget and Schedule

• Review Schedule• Review Budgets• Submit to Finance• Fine Tune Budget and

Schedule• Generate Reports and

Graphics• Submit Proposal to

Key stakeholders/Client

A proposal form

• Project information• Problem definition• Goal definition• Objective definition

– Performance, cost, schedule

• Risk analysis– What are the major risks, probabilities and impacts

• Resource availability.• Start date and closing date

Project selection criteria can be:

• Financial– Net present value, benefit/cost, return on

investment, payback period, etc

• Non-financial– Requires other criteria beyond financial returns– Developing and maintaining core competencies– Builds image and social responsibility

A weighted selection matrix

Weight: 0 low to 3 high Relative contribution/value added: 0 low to 10 high

Criteria Acc

ord

ance

wit

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Str

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it

Urg

ency

Imp

rove

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sto

mer

lo

yalt

y

RO

I of

18%

+

Wei

gh

ted

to

tal

Weight 2 3 2 1 2 ____

Project 1 1 8 2 6 7 50Project 2 3 3 6 4 6 43Project 3 5 4 2 6 8 48Project 4 6 8 5 3 6 61Project 5 2 3 6 6 5 41Project 6 8 6 5 7 8 67

So

cia

l dev

elo

pm

en

t

Acc

ord

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ma

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ate

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Su

sta

inab

ility

of

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Project definition

• Project goal & objectives

• Sponsor• Stakeholders• Timeline• Resources required• Deliverables

• Decision making• Assumptions• Risks• Business process

changes• Project manager• Project team• Budget• Signatures

Project definition

• Who• What • Where • Why• When

Outputs from planning

• Initial project information

• Project WBS• List major milestones• Sequence of

activities• List of resource pool• Initial budget and

schedule

• Reviewed schedule• Reviewed budgets• Stakeholders’

responses

Work breakdown structure

• Subdividing project into smaller and smaller working elements– Hierarchical work breakdown structure– A map of the project (Gantt)– Assures that all products and work elements are

identified– Integrates the project with the organization– Establishes a basis for control– The WBS is a chart or outline which breaks down

work that must be done to achieve project goal

Work breakdown structure

1.0 Move the hospital (Project)1.1 Move patients (Task)

1.1.1 Arrange for ambulance (Subtask)1.1.1.1 Prepare patients for move1.1.1.2 Box patients personal

effects1.2 Move furniture

1.2.1. Contract with moving company•••

Responsibility matrix

The work package• Defines work (what)• Identifies time to complete the work package (how

long)• Identifies a time phased budget to complete a

work package (cost)• Identifies resources needed to complete the work

package (how much)• Identifies a single person responsible for units of

work (who)• Identifies monitoring points for measuring

progress

Schedules

• The project schedules provides a basis for monitoring project progress

• Important techniques include

– Gantt charts

– Critical path analysis

– Critical chain scheduling

– PERT analysis

Project schedule tools

• Many tools available

– Microsoft Project– FileMaker– Sharepoint– www.dotproject.net– Excel– Mind Manager

Project schedule

Project schedule

Milestones

• Indicator for short and medium-term objectives, which facilitate measurement of achievements throughout a project rather than just at the end

• They also indicate times when decisions should be made or action should be finished

Earned value management

• Earned Value Management (EVM) is a project management technique that measures forward progress objectively within a single integrated methodology

• EVM has the unique ability to combine measurements of:

• Technical performance (i.e., accomplishment of planned work)• Schedule performance (i.e., behind/ahead of schedule) • Cost performance (i.e., under/over budget)

Resources(Budget, Labour)

Time (Schedule, Deadlines) Performance

(Quality)

Success

We also noted that successful projects require skillful management of the Triple constraints of all projects

The Stage Gate Review Process

• Performed at the end of key project stages

• Objective is to review activities and

deliverables and approve advancement to

next stage

Project Management Methodology Stages and Gates

StartupGate

Initial InvestigationGate

Define & ConfirmGate

InitialInvestigation

5%

Definition&

Confirmation 30%

DevelopmentImplementation

Validation 57%

Startup Close

5%

StartupInitial

Investigation5%

StartupInitial

Investigation5%

Definition&

Confirmation 30%

StartupInitial

Investigation5%

Definition&

Confirmation 30%

DevelopmentImplementation

Validation 57%

Startup

D / I / VGate

Post ImplementReview

Project success factors

Success usually comes to those who are too busy to be looking for it.

Henry David Thoreau (1817 - 1862)

References•European Commission (2004). Project Cycle Management Guidelines. Downloaded 1st March from: http://ec.europa.eu/europeaid/qsm/documents/pcm_manual_2004_en.pdf

•Clifford E. Gray and Erik W. Larson, Project Management Process: The managerial Process(Second Edition) Mc Graw Hill, 2003.

•Rory Burke, Project Management: Planning and Control Techniques (Fourth Edition), John Wiley & Sons, 2003

•Harvey Maylor, Project Management (Third Edition), Pearson Education Ltd, Third Impression 2007

•Louis J. Goodman and Ralph N. Love, Project Planning and Management: An integrated Approach, Pergaman Press, 1980.

•Erling S Anderson, Kristoffer V Grude and Tor Haug, Goal Directed Project Management: Effective Techniques and Strategies (edited by Mike Katagiri and Rodney Turner),Kogen Page India Private Ltd, 2006