Stamford Essentials of PM v4.3_PDF

8/8/2019 Stamford Essentials of PM v4.3_PDF

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Projec t Managem entEssent ia ls

Proudly presented by:

Stamford Global

&

Mr. Roger WildProject Associates Ltd, United Kingdom


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Welcome

Orientation

Who is Stamford?

Organize premium professional workshop in Central

and Eastern Europe Working with internationally recognized experts from

the Global Marketplace

Wide range of exclusive events across several verticals


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3

Your Tra iner

Email : [email protected]

Mr Roger Wild Managing Director of Project Associates UK

PMP

MCIOB

PRINCE2 Practitioner

Over 25 years experience managing projects


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Agenda

5


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Introductions

6

Please introduce yourself addressing the following points:Please introduce yourself addressing the following points:

Your name, company and project role

What is a typical project for you?

Key issues for this course?

What do you do for fun?


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Unit 1 ~ Project Management Concepts

7

Objectives:

Defining what is Project Management

What helps to make projects successful?

Reference sources for good practice tips

Benefits of a project methodology

The project lifecycle


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Project Definitions

8

A project is: A unique set of coordinated activities, with definite

starting and finishing points, undertaken by an individual or

organisation to meet specific objectives within defined schedule,

cost and performance parameters.(Source: BS 6079)

A project is: a temporary endeavour undertaken to create a

unique product, service or result."(Source: PMBOK Guide Third Edition ~ PMI)


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Projects vs Programs

9

Business as usualor operational work

PROJECT 3

PROJECT

PROJECT 2PROJECT 1

Start Finish

Handover to operations

Program A Portfolio is a collection of projectsor programs and other workgrouped together to facilitateeffective management of that work tomeet strategic business objectives.


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Project vs Product Life Cycle

10

BusinessStrategy

Operations

Product Life Cycle

Project Life Cycle

TerminationConception

Feasibility

Implementation

Operation


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What is Project Management?

11

Tools

People Processes

Project management is the application of knowledge, skills, tools and techniques

to project activities to meet project requirements.

(Source: PMBOK Guide Third Edition ~ PMI)


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Program Management

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A programme is: a portfolio of projects and activities that are co-ordinated

and managed as a unit such that they achieve outcomes and realise benefits .

(Sourc e: SDT ~ OGC)

Managing Successful Programmes

by OGC ~ ISBN 0113300166

A program is: a group of related projects, managed in a coordinated way

to obtain benefits and control not available from managing them individually.

Programs may include an element of related work outside of the project scope.(Source: PMBOK Third Ed ition)

Due 2006 ~ PMI Practice Standard for:

Program and Portfolio Management


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The Triple Constraints

15

Stakeholders

Scope

TimeCost

/ Quality

Resources /

Effec tive projec t management is ba lanc ing the expec ted sc op e, costs and time

in a way whic h fulfils and sa tisfies c ustomer s requirements


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Areas of Expertise

Project life cycle definition

Five project management process groups

Nine knowledge areas References other areas of expertise

Effective project management requires the use of skills from

at least five areas of expertise

PMIs PMBOK Guide describes knowledgeunique to the project management field

consisting of:

The PMBOK Guide is a sub set o f the la rger Projec t Mana gementBody of Knowledge whic h overlaps other management d isc ip lines

Project Management

Body of Knowledge

PMBOK Guide

Application AreaKnowledge,Standards

& Regulations

Understandingthe Project

Environment

GeneralManagementKnowledge

& Skills

InterpersonalSkills


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Project Life Cycles

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Typically a project will move through at least three phases

Directing a Project ~ Stakeholders

Initiating aProject

Managing aProject

Closing aProject

Initial Phase Intermediate Phase(s) Final Phase


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Phases & Gate Reviews

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Gate reviews provide Go/NoGate reviews provide Go/No--Go decision pointsGo decision points

Directing a Project ~ Stakeholders

Initiating a

Project

Managing a

Project

Closing a

Project

Project Charter,Preliminary

Scope Statement

Idea? ProjectFinish?

GateReview

GateReview

ProjecClosurDocs.

Project Briefor

Business Case


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Process Group Triangle

21

Process groups are linked by the objectives they produce, the output of one process

generally becomes an input to another process or is a project deliverable.

When a p rojec t is d ivided into phases, the Proc ess Groups

a re norma lly repea ted within ea c h phase throughout the p rojec t s life


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PM Knowledge Areas

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Source: PMBOK Guide Third Edition p11

Summary in Appendix F p 337


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Three Major Documents

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Formally authorises the project

States what work is to be accomplished

States how the work will be preformed

(Source: PMBOK Guide Third Edition ~p75)


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Project Integration Management

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(Source: PMBOK Guide Third Edition p80)

4.1 Develop Project Charter

4.2 Develop Preliminary Scope Statement

4.3 Develop Project Management Plan

4.4 Direct and Manage Project Execution

4.5 Monitor and Control Project Work

4.6 Integrated Change Control

4.7 Close Project

Integration is primarily concerned with effectively integrating the appropriateprocesses, from the five Project Management Process Groups

C 2


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PRINCE2

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PRINCE covers management of the project and management

of the resources involved in carrying out the activities of the project.

PRojectsIN

Controlled

Environments

PRINCE is a proven Project Management Methodology

PRINCE is meant to be TAILORED to suit your business

PRINCE is suitable for all types and sizes of Project

Hi t f PRINCE2


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History of PRINCE2

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Originally based on PROMPT, a project management method

created by Simpact Systems Ltd in 1975

PROMPT II adopted in 1979 by CCTA(Central Government & Telecommunications Agency)

Enhanced and re-launched as PRINCE in 1989

Fully revised as PRINCE 2 in 1996 by OGC

(Office of Government Commerce)

PRINCE2 Updated (Version 3) in 2005

Ei ht M j P f PRINCE2


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Eight Major Processes of PRINCE2

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Planning

Directing a Project

Starting upa Project

Initiatinga Project

Controllinga Stage

ManagingStage

Boundaries

Managing

ProductDelivery

Closing aProject

C t f PRINCE2


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Components of PRINCE2

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Business CaseBusiness Case

OrganisationOrganisationConfigurationConfiguration

ManagementManagement

Quality in aQuality in a

projectproject

EnvironmentEnvironment

Management ofManagement of

RiskRiskControlsControls

PlansPlans

Change ControlChange Control

B fit f i PRINCE2


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Benefits of using PRINCE2

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It focuses on business justification ~ The Business Case

Defines the organisation structure for the project management team

Uses product-based planning approach (Deliverables)

Emphasis on manageable and controllable stages (Gated Reviews)

Flexibility of detail at a level appropriate to the project (Scaleable)

Includes checklists for less experienced Project Managers


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Project Human Resource Management


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Project Human Resource Management

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Rolesand

Responsibilities

StaffingManagement

Plan

(Source: PMBOK Guide Third Edition ~ p201)

Cross functional project teams


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Cross-functional project teams

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FunctionalOrganisation

ProjectizedOrganisation

MatrixedOrganisation

Black boxes represent

staff engaged in projects

Weak Matrix Organisation

Project Coordination ?

Strong Matrix Organisation

Stakeholders


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Stakeholders

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Individuals and organisations that are actively involved in the project,

or whose interests may be positively or negatively affected

by execution or completion of the project

Customers / end users

Team members / sponsors

Performing organisations / partners

Special interest groups (positively or negatively affected)

Regulators

Key stakeholders include:


Project Relationships


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Project Relationships

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The project management team must identify stakeholders, determine their

requirements / expectations and manage their influence to ensure a successful project


ProjectSponsor

ProjectManager

Project ManagementTeam

Project Team

Project Stakeholders

Project Manager as an Influencer


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Project Manager as an Influencer

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Example is not the main thing in influencing others. It is the only thing.~ Albert Schweitzer

SeniorManagement

PMO

Customer/ User

Project

Sponsor

ProjectTeam

OtherStakeholders

PROJECTMANAGER

There are two things people want more than sex and money recognition and praise~ Mary Kay Ash

Stakeholder Map


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Stakeholder Map

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StakeholderPower /

Influence Motivation / Desires Actions to be taken Status

Effective Communications


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Effective Communications

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What are the most effective forms of communication?

One to ones

Telephone

Meetings / Special Events

Teleconferencing / Videoconferencing

E-mail / Net-meetings / Team Webspace

Project Management Information System (PMIS)

MBWA

Management reports

Fax, Letters, Newsletters..

Project Communications Management


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Project Communications Management

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ChangeRequest

IssuesLog

CommunicationsManagement

Plan

PerformanceReports

Communications Management Plan


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Communications Management Plan

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Often contained in, or is a subsidiary part of the Project Management Plan


Stakeholder communications requirements

Information to be communicated, including format, content & level of detail

Person responsible for communicating the information

Persons receiving the information

Methods / technologies used to convey the information

Frequency of the communications

Escalation process, identifying the management chain

Method for updating and refining these processes

Glossary of common terminology

The Project File


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The Project File

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Business Case / S.O.W.

Project Charter

Project Scope Statement

Project Management Plan

Risk Register & Issue Logs

Project Schedules

Status/Progress Reports

Change Requests

Daily Log (Diary)

Effec tive c ommunic a tions a re essentia l for suc c essful p ro jec t mana gement

Energizer


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Energizer

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What is a team?

A group of individuals with a common goal?

The project team is comprised of the people who have assigned rolesand responsibilities for completing the project


Discuss these statements with your team

Identify the key characteristics of a High Performing Team

What is a Team?


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What is a Team?

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A group of individuals with a common goal?

A team is a small number of people with complementary skills

who are committed to a common purpose, performance goals,

and approach for which they hold themselves mutually accountable

The Wisdom of Teams ~ Katzenbach & Smith

ISBN 0-06-052200-3

Small number (generally fewer than twelve)

Complementary skills

Committed to a common purpose and performance goals

Committed to a common approach

Mutual accountability

Stages of Team Development


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g p

43

Norming

Issues:Affection and

Intimacy

Stage 3

Storming

Issues:Power, control,and influence

Stage 2

Performing

Issues:No major issues

Stage 4

Forming

Issues:Inclusion and

trust

Stage 1

Adjourning

Issues:Loss and

separation

Stage 5

B.W. Tuckman and M.A.C. Jensen. Stages of Small Group Development. Group and Organizational Studies, Volume 2.

Copyright 1977 by Sage Publications.

Roles & Responsibilities


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p

44

The following should be addressed when defining roles and responsibilities

needed to complete the project:

Role ~ label describing the portion of a project for which you are accountable

Authority ~ right to apply project resources, make decisions and sign approvals

Responsibility ~ work that a team member is expected to perform

Competency ~ skill and capacity required to complete project activities


Projec t Organisa tion Cha rts d isp lay team members reporting rela tionships

Project Roles


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45

Project Manager

Project Sponsor

Team Member Team LeaderTeam Member

Project ownership

Team MemberTeam Member

OtherStakeholdersProject Management

Office (PMO)

Manages on aday to day basis

The project management team is a subset of the project team,

responsible for project management activities such as planning, controlling and closing

Responsibility Assignment Matrix (RAM)


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p y g ( )

46

Maps the work to be done against the project team

can be developed at various levels of detail

Resource Skills or Groups?

RA I I

Phases or WPs?

Example RACI Chart : R = Responsible A = Accountable C = Consult I = Inform


Energizer


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47

The Project Manager must fill several roles in the completion of a project.

Discuss this statement with your team

Identify the key activities you expect the Project Manager to perform.

Indicate the % of time allocated to each topic.

Role of the Project Manager


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Project Manager (PM) ~ The person responsible for managing the project(Source: PMBOK Guide Third Edition ~ p26)

Integrator ~ interface and coordinate efforts of team members towards objectives

Communicator ~ to senior management, the team and other stakeholders

Decision maker ~ key decisions throughout the project lifecycle

Team leader ~ guide people from different functional areas

Climate creator ~ build a supportive environment to encourage participation

Conflict manager ~ deal with conflicts as they arise

Ref: Principles of Project Management by J.R.Adams

ISBN: 1-880410-30-3

Project Sponsor Role


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Sponsor ~ The person or group that provides the financial resources, in cashor in kind, for the project


Overall project delivery ownership of the business case

Appointment and responsibilities of the project manager

Signing off completion at each gate review

Arbitrating on conflicts

Charm, Charisma and Clout!

Project Management Office (PMO)


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The PMO is an organisational unit to centralise and coordinatethe management of projects under its domain.

May oversee the management of projects, programs or a combination of both.

Most common in Projectized Organisations

May simply provide support for PMs or in some cases

takes management responsibility for achieving project objectives

May be involved in the deployment of shared project personnel

Manage the Project Management System including

methodologies, procedures and software tools.


Staffing Management Plan


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A subset of the Project Management Plan

describes when and how human resource requirements will be met.


Staff acquisition ~ internal or external, and how will you get them

Timetable ~ when do you need them and for how long

Release criteria ~ method and timing for releasing team members

Training needs ~ will you need to train staff

Recognition & rewards ~ clear criteria to help reinforce desired behaviors

Compliance ~ with government and other relevant regulations

Safety ~ policies and procedures that protect team members

Acquire the Project Team


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The process of obtaining the human resources

needed to complete the project


Pre-Assignment ~ identified in the Project Charter, promised in a proposal

or provide specific expertise

Negotiation ~ with functional managers for example, to get the competent

person the team desires

Acquisition ~ hiring individuals if the in-house staff are unavailable

Virtual Teams ~ groups of people with a shared goal, who fulfill their roles

with little or no time spent meeting face to face.

Develop Project Team


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Improving the competencies and interaction of team members to

enhance project performance:


General Management Skills ~ empathy, creativity, group facilitation

Training ~ formal or informal coaching

Team-Building Activities ~ look to increase team cohesiveness

Ground Rules ~ clear guidelines decreases misunderstandings

Co-Location ~ same physical location or simply a meeting room

Recognition and Rewards ~ consider cultural differences

Conflict Management


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Successful conflict management results in greater productivity and

positive working relationships.

When managed properly, differences of opinion are healthy

and can lead to increased creativity and better decision making.


Confronting (Problem Solving) ~ parties working together to solve the real problem

Compromising ~ involves some give and take, some degree of satisfaction

Withdrawal ~ retreating or postponing a decision, using a cooling off period

Smoothing ~ de-emphasising differences and emphasising agreements

Forcing ~ pushing one viewpoint at the expense of others

Unit 3 ~ Project Initiation


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Stimuli for new projects

Project Initiation Processes

Project selection

Collating project requirements

Formalising the Project Charter

Compiling the Preliminary Scope Statement

PRINCE2 approach to Project Initiation

Objectives:

Energizer


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You have been asked to lead a new project that shows great promise for

your business unit, it aligns well with corporate strategy!

Discuss this situation with your team

Identify the key elements that you are typically concerned about

as you get the project started

Where do projects originate?


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Market demand

Business needs or strategic expansion

Customer request (RFP)

Technological advance

Legal or regulatory requirement

Product obsolescence

?

Cha rtering a p rojec t, links the p rojec t to the ongoing work of the o rganisa tion

often p roc eeded by needs assessment, fea sib ility stud y

Understanding the Enterprise Environment


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Time to market urgencies affect strategies

DevelopmentTime

Useful life of product

Foods

Financial Services

Fashion & Textiles

Aircraft

IT & Telecommunication

Pharmaceuticals

Military weapons

If everything seems under control, you're just not going fast enough - Mario Andretti

Scope Definition


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Sometimes called WH analysis

When ? - can the project be completed ?

What ? - are the deliverables in the project ?

Why ? - should we do this project ?

Who ? - are the people that will do the work ?

How ? - will we do the work ?

Finding Requirements


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NeedsSeparate real NEEDS from WANTS

TechnicalRequirements

FunctionalRequirements

Team ContributionHOW

Objectives

Customer ContributionWHAT

You need to und ersta nd the ir rea l PAIN!

A requirement is a verifiab le, trac eab le

and testab le need

Wheres the Business Case


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If a sa tisfac to ry Business Case does not exist, a p rojec t should not b e sta rted

Business Needs


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A good Business Case is a pre-requisite for success!Defines why the project is being undertaken & benefits that should be derived from i

Business Needs WHY?

Business Benefits WHAT?

Business Risks

Target Costs and Timescale

Investment Appraisal (NPV, BCR, ROI)

These may be sections in the Project Charter, or documented separately.

Helps you understa nd why your p rojec t was selec ted !

Project Selection

S


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Benefit/cost ratios (BCR)

Net present value (NPV)

Return on investment (ROI)

Internal rate of return (IRR)

Payback period

Risk analysis

Organisational fit

Stakeholder bias and intuition

Although b est p rac tic e enc ourages ob jec tivity,

don t rely purely on a numb er, ra ther log ic supported by numb ers!

Selection practices are unique to every organisation,

often documented in a Business Case

BCR ~ Benefits Cost Ratio


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Comparative analysis of project benefits divided by project cost

The higher the ratio the better the deal

Two projects under consideration:

Project A : Subcontractor costs are $1,000to generate project benefits of $3,000

Project B : Development teams costs are $2,000to generate project benefits of $4,000

3,000 / 1,0003 : 1

4,000 / 2,0002 : 1

Limitation ~ the ratio does not take into consideration the effect of timescale

PV ~ Present Value


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Present value is the value today of a future cash flow

PV = FV / ( 1 + i ) n

Where:

PV = Present value of moneyFV = Future value

i = interest rate or cost of capital

n = number of time periods from today

Whats the value of $4,000 revenue due in two years at interest rate of 15%?

PV = $4,000 / (1 + 0.15)2

PV = $3,025


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Project Priority List


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Project Name Primary Objectives Current StatusSponsor

Consider organising projectsConsider organising projectsinto categories: A, B, C,into categories: A, B, C,

Project Manager

Effective time management?


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Project Charter


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Business case justifying the project

Requirements that satisfy customer / business needs

The project managers responsibilities and authority

Functional organisations and their participation

Summary budget and schedule

The document should be issued by a senior management, or a project sponsor

and should provide authority to apply organisational resources to project activities

A document that formally authorises a project.It should address either directly or by reference to other documents:


Preliminary Project Scope Statement


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Project and product objectives

Product acceptance criteria

Project boundaries

Project requirements and deliverables

Constraints and assumptions

Initial project organisation

Initial defined risks

Is developed from information provided by the sponsor and is further refined

by the project management team in the Project Scope Statement

Is the definition of the project what needs to be accomplished:



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PRINCE2 Approach


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ProjectMandate

Starting up a Project (SU)

Planning anInitiation

Stage(SU6)

Appointing aPM team(SU3)

Appointing anExecutiveand PM(SU1)

Designing aPM Team

(SU2)

Preparing aProject Brief

(SU4)

DefiningProject

Approach(SU5)

Input Approval

AuthorisingInitiation

(DP1)

Initiation Stage PlanTeam StructureJob Descriptions

Project Brief

Risk Log

PRINCE2 ~ Initiating a Project


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Input Approval

Authorising

Initiation(DP1)

PlanningQuality(IP1)

Planning aProject(IP2)

Refining theBusiness Case

and Risks(IP3)

Setting upProjectControls

(IP4) Setting upProject Files

(IP5)

Assemblinga ProjectInitiationDocument

(IP6)

Initiating a Project (IP)

Authorisinga Project

(DP2)

ProjectInitiationDocument

(PID)

Case Study


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Holiday Villa ProjectHoliday Villa ProjectTeam exercise to plan the building of a new holiday villa!

Preparing a first draft of the Project Management Plan

To get started address the following sections from the Project Scope Statement

1. Write a SMART Project Objective

2. List key Project Deliverables to be produced3. Describe the Project Boundaries

Unit 4 ~ Successful Project Planning

Objectives:


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Scope Planning

Work Breakdown Structures (WBS)

Estimating techniques

Network diagrams

Gantt & Milestone Charts

Schedule Development

Cost & Quality Management

The Project Management Plan

Objectives:

What is Planning?


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Sir John Harvey-Jones

It is much more fun to do something

and the nicest thing about not planning

is that failure comes as a complete surprise,

rather than being preceded by a period of worry and depression.

Planning is an unnatural process:

Planning Process Group(Source: PMBOK Guide Third Edition ~ p47)


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WorkBreakdownStructure(WBS)

ProjectScope

Statement

Sc op e andthe WBS is keyfor effec ting p lanning

ScopePlanning

ScheduleDevelopment

Scope Planning


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The key output from Scope Planning is the Scope Management Plan,this should define how scope will be defined, verified and controlled.

Process for preparing a detailed Project Scope Statement

Process for developing the WBS and how it will be maintained & approved

How formal verification and acceptance of deliverables will be done

How Change Requests will be managed

A Scope Management Plan should address:

When you beg in a p rojec t be sure to have a c lea r exit stra teg y!

Project Scope Management

Scope Work


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Primarily concerned with

defining & controlling

what is and what is not

included in the project

ScopeManagement

Plan

Project

ScopeStatement

WorkBreakdownStructure

Example WBS


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ProjectInitiation

Building alterations

Produce office design

Negotiate with contrc.

Procure materials

Building complete

Unpack

Setup equipment

Organise Open Day

Staffing

Announce move

Discuss with staff

Select project team

Select removal company

Negotiate staff contracts

Produce Proposal

Negotiate lease

Sign lease

Public announcement

Board review prop.

Office MoveProject

NewOffices


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WBS Good Practice Tips


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Does the WBS define the whole project?

Organise the structure for effective management reporting

and to represent your own level of control

Do Work Packages allow assignment to an individual or small team?

Work Packages start with a verb e.g. Produce design, or Review design

Document your assumptions, use a WBS Dictionary

Project Time Management


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NetworkDiagrams

ScheduleManagement

Plan

ActivityResourceEstimates

Activitiesand

Milestones

ActivityDuration

Estimates

ProjectSchedule

(Source: PMBOK GuideThird Edition ~ p125)

Accuracy in Estimates


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RoughOrder ofMagnitude

+ 100%- 50%

BudgetEstimate

+ 25%- 10%

DefinitiveEstimate

+ 10%- 5%

Initiation Development Implementation

Source: PMI surveyof past projects

Class 1 Class 2 Class 3

Top Down or Bottom Up

What reserve or c ontingenc y a llowanc es a re app ropria te for your p rojec t?

Three-Point Estimates ~ PERT


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Program Evaluation and Review Technique:PERT is a useful estimating technique

for dealing with uncertainty in cost and schedule estimates

Estimated Time = Optimistic + ( 4 x Most Likely ) + Pessimistic

6

Example : Optimistic 7 weeks, Most Likely 10 weeks, Pessimistic 19 weeks

Et = 7 + ( 4 x 10 ) + 19

6

= 11 weeks


Estimating Guidelines

Top down or Bottom up?


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Estimates produced from a WBS are most accurate

Express the level of accuracy ~ honesty is the best policy

Involve the project team and SMEs

Base estimates on documented history

Dont rely on a single source

Dont pad the estimate ~ you can track performance against real numbers

Document your assumptions

Top down or Bottom up?

The ESTIMATE should be used to determine or refine the BUDGET

Milestone Plan

Project Title : Kerbside Coaching Manual


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Version : 1.3Date Issued : 25/01/2005

Deliverables Scheduled Finish

Project CharterIssued

Project Start

Design Brief Issued

Investigation

Report Issued

1st Draft Issued

1st Draft Approved

Approved training

Programme issued

Project Finish

Issue Project Review Doc

21/06/2005

08/02/2005

26/02/2005

20/03/2005

03/04/2005

15/04/2005

26/04/2005

17/05/2005

30/07/2005

08/02/2005

26/02/2005

20/03/2005

03/04/2005

15/04/2005

26/04/2005

17/05/2005

30/07/2005

21/06/2005

Baseline Finish Actual Finish Finish Variance Notes

Gantt Chart


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Dependency Links (FS)

10 100


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Task A10

Task B100

5Task A

10

Task B

105Lag

Mandatory ~ inherent in the nature of the tasks

Discretionary ~ defined by best practices or the team

External ~ relationships with non-project activities


Critical Path Method (CPM)

78 135 13 20


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Task Name

Early Start Early Finish

Duration

Task A

5

Task F

5

Task E7

Task D

Task C

Task B

5

20

8

Forward Pass = Early Dates (ASAP)

0 10

13

5

5

5

5 25

25 30

13 20


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Critical Path Method (CPM)

78 135 13 20


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Task Name

Early Start Early Finish

Duration

Task A

5

Task F

5

Task E7

Task D

Task C

Task B

5

20

8

0 10

13

5

5

5

5 25

25 30

13 20

Late Start Late Finish

0 5

255

20 25

10 18 18 25

25 30

Total Slack

0 15

0

5 5

0

Total Slack = LF - EF

Gantt Chart showing Critical Path

0 5 10 15 20 25 30


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Task A

Task C

Task B

Task D

Task E

Task F

Total Slack

Case Study

Holiday Villa ProjectHoliday Villa Project


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You have been tasked with arranging an official Opening Ceremony

Produce a Network Diagram using the WBS information provided

Use Post-its to construct a Network Diagram, encourage debate between

your team members on discretionary dependencies

When you have completed the dependency links,

use (CPM) to determine overall duration and total slack

Schedule Development

An iterative process for determining start and finish dates for activities.

Schedule development can require that duration and resource estimates


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Schedule development can require that duration and resource estimates

are revised to create an approved schedule

Activity resource requirements

Resource availability, capabilities and skills

Imposed date constraints on activity starts or finishes

Milestone constraints imposed by stakeholders

Risk responses

Reserve analysis

Considerations include:


Task Constraints

Total Slack


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As Soon As Possible (Default)Total Slack

As Late As PossibleDelay

Start No Earlier Than

Date

Microsoft Project converts the Network Diagram into a Gantt Chart

by referring to each tasks constraint

Resource Conflicts


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Resource Levelling


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Project Cost Management


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Budgeting &Cost

Baseline

PerformanceMeasurement

CostEstimates

Cost Estimating

Consider all components that add cost to a project


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p p j

Direct Costs Indirect Costs

Labour ( Internal & Contactors)

Materials

Equipment

Travel

General & administrative overheads

~ Office space

~ Depreciation

~ Staff benefits

Marketing costs...

Tip : Ind irec t c osts a re often overlooked c omp lete ly, wa tc h out for them!


The project management plan can be either summary level

or detailed and can include subsidiary plans.


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Project Management Methodology

Project Management Information System (PIMS)

Configuration Management System

Change Control System

y p

Content will vary depending upon the application area

and complexity of the project.

Considerations include:

Quality Management Processes


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QualityManagement

Plan

ValidatedDeliverables

QualityControl

Measurements

QualityAudits

What is Quality?

The degree to which a set of inherent characteristics fulfils requirements
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Quality Planning ~ identifying which quality standards are relevant to the

project and determining how to satisfy them

Quality Assurance ~ applying the planned, systematic quality activities to

ensure that the project employs all processes needed to meet requirements

Quality Control ~ monitoring specific results to determine whether they comply

and identifying ways to eliminate causes of unsatisfactory performance

Qua lity is p lanned into a p rojec t, NOT inspec ted in!


Unit 5 ~ Risk Management

Objectives:

Ri k t i l


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Risk terminology

Issue Log

Risk Management Processes

Risk identification techniques

Risk Register

Risk response planning

Terminology

RISK An uncertain event or condition that, if it occurs


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PROBLEM

ISSUE

has a positive or negative effect on a projects objectives

An event has happened

A point or matter in question,

or is not settled and is under discussion or dispute.

Often something that needs escalating

Effec tive risk mana gement reduc es p rob lems & issues!

Issue LogProject Title:Date Issued:

No IssueType

Description of Issue Author DateIdentified

PriorityH,M,L

Decision Status


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yp

Page of

Risk Management Processes

RiskManagement
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RiskRegister

ManagementPlan

ResponsePlanning

Risk Management is an iterative process

11.1 Risk Management Planning
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11.2 Risk Identification

11.3 Qualitative Risk Analysis

11.5 Risk Response Planning

11.4 Quantitative Risk Analysis

includes Monte Carlo Simulation

11.6 Risk Monitoring and Control

Risk Identification

An iterative process for determining which risks might effect the project

and documenting their characteristics


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Involve subject matter experts & other stakeholders

Review Project Scope Statement and WBS Risk categories and historical information

Information gathering techniques:

Brainstorming

Delphi technique ~ questionnaires

Interviewing

Strengths, weaknesses, opportunities and threats (SWOT) analysis

Cause & effect diagrams



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Risk Register

7, 3, 13, 2, 1Project Title:

Date Issued:

No Details of Risk Probabilityof occurring

Impact onproject

Priority Action/Counter measures Risk Status


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21-1Xof occurring

H,M,Lproject

H,M,LOwner

Page of

A id li i h h f b li i i h

Developing options and determining actions to enhance opportunities

and reduce threats to the projects objectives

Risk Response Planning


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Avoid ~ eliminate the threat, often by eliminating the cause

Transfer ~ pass all or part of the threat to a third party

Mitigate ~ reduce the expected significance of an adverse risk to an

acceptable threshold

Acceptance ~ accept the minor consequences, active acceptanceincludes establishing a contingency reserve

Exploit ~ ensure that the opportunity is realised

Share ~ allocating ownership to a third party to realise opportunities

Enhance ~ modify size of opportunities by increasing probability / impact


Case Study



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What risks might threaten the construction of the Villa?

Produce a Risk Register with approximately ten threats

Assign probability & impact scores and prioritise your risks

Identify suitable responses for three major risks

Unit 6 ~ Procurement Management

Objectives:

What is Procurement Management


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g

Project Procurement Management Processes

What is a Contract?

Selecting an appropriate contract

Energizer

You have decided to use professional caterers for the forthcoming

Opening Ceremony buffet lunch. Management have warned you to be


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p g y g y

careful with your choice of supplier, they want a high quality event!


Identify the key elements that you are typically concerned about

when procuring services.

What are the key processes appropriate in this situation?

What is Procurement Management?

The processes to purchase or acquire the products, services or results

needed from outside the project team.


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Contract management and change control processes required to administer

contracts or purchase orders issued by authorised project team members

The organisation can be either buyer or seller of products under a contract

Administering any contract issued by an outside organisation (the buyer)

that is acquiring the project from the performing organisation (the seller)

PerformingOrganisation ContractorSupplier

Customer

Seller SellerBuyer Buyer

Seller Seller BuyerBuyer

The a rt and sc ienc e of manag ing c ontrac tual agreements

Procurement Management Processes

ProcurementDocuments


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EvaluationCriteria

ProcurementManagement

Plan

Contract

Procurement Process Flow

12 1 Plan P rchases & Acq isitions


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12.1 Plan Purchases & Acquisitions

12.2 Plan Contracting

12.3 Request Seller Responses

12.4 Select Sellers

12.5 Contract Administration

12.6 Contract Closure


Procurement Management Plan

Describes how the procurement process will be managed

from developing procurement documentation through to contract closure.

Th l i l d


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The plan can include:

Type of contracts to be used

Involvement & responsibilities of contract management department

Standardised documentation if needed

Development of qualified sellers list

Constraints and assumptions

Scheduling and co-ordination issues

Procurement metrics to manage contracts and evaluate sellers


What is a Contract?

A mutually binding agreement that obligates the buyer

to provide specified products, services or results

d bli t th ll t id t th l bl id ti


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and obligates the seller to provide monetary or other valuable consideration.

An offer

Acceptance ~ written, conduct or spoken words

Consideration ~ some value, need not be money

Legal capacity ~ competent parties

Legal purpose ~ cannot have a contract for illegal products

A c ontrac t is a lega l rela tionship sub jec t to remedy in the c ourts

Contract Types

Contracts generally fall into one of three broad categories:


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Generally less

price risky for Buyer

Generally more

price risky for Buyer

Fixed-priceLump-sum Time and Material

(T&M)

Cost-reimbursableCost-plus

Cost-Plus-Fee (CPF)

Cost-Plus-Percentage of Cost (CPPC)

Cost-Plus-Fixed-Fee (CPFF)

Cost-Plus-Incentive-Fee (CPIF)


Purc ha se orders a re a lso a form of c ontrac t, a lthough less c omp lex to use

Factors effecting Contracts

Uncertainties effect the decision to use a particular form of contract:

Is the scope of work well defined


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Contrac ts should be struc tured and managed to d istribute and c ontro l risk

in an eq uitab le way

Is the scope of work well defined

Likelihood of changes in requirements

Capability of sellers accounting systems

Administration costs for both parties

Market forces and competition

Size and value of the contract

more

Procurement Documents

Procurement documents are used to seek proposals from prospective sellers.Common names include:


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Request for proposal (RFP) ~ detailing how contract will be accomplished

Invitation for bid (IFB) ~ one price for Contract statement of work

Request for quotation (RFQ) ~ a quotation as opposed to an offer


The c omp lexity and level of deta il should be c onsistent with the va lue of

and risk assoc ia ted with the p lanned ac quisition.

Selecting Sellers

Price is often the primary consideration, however what other criteria

might be considered when evaluating competitive bids?


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Understanding of need

Overall or life-cycle cost

Technical approach & capability

Financial capability & production capacity

References

Management (Project Management) approach

The seller can be viewed during the contract lifecycle, first as a bidder,

then as the selected source, and then as the contracted supplier or vendor

Terms and Conditions

The primary purpose of contracting is to mitigate risk and uncertainties,

therefore Project Managers should consider :


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Inspection ~ who has the right to inspect work

Invoicing ~ what supporting documents required

Payment terms ~ when, reasons for non-payment

Reporting ~ what is required, frequency, format

Changes ~ documentation requirements

Incentives ~ any special considerations

Liquidated damages ~ estimated damages for specific defaults

Material breach ~ reason for terminating the contract

Case Study

You are preparing the Procurement Management PlanHoliday Villa ProjectHoliday Villa Project


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Recommend a contract type and any specialterms and conditions you feel are appropriate in

procuring the building construction contractor

Produce a list of issues you should consider

p p g g

The Opening Event has been approved and you now have

a critical deadline to meet, you do NOT want construction to overrun!


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Unit 7 ~ Controlling Projects

Objectives:

Project Baselines


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Project Baselines

Project Control Process

Monitoring & Progress Reporting

Understanding EVM

Change Management Process

Variance Analysis

Energizer

How do you control projects?

What data do you generally collect / analyse / report?


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What data do you generally collect / analyse / report?


List the type of data you generally collect

What type and frequency of reporting is generally required

Project Execution

Your strategy should include managing, monitoring & controlling project work,

and also managing stakeholders expectations.


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Stakeholders

Initiating a

Project

Managing a

Project

Closing a

Project

ProjectManagementPlan

ProjectFinishGateReview GateReview

ProjecClosurDocs.

Project Integration Management


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4.4 Direct and Manage Project Execution

4.5 Monitor and Control Project Work

4.6 Integrated Change Control


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Performance Measurement Baselines

Scope/Quality


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Scope/Quality Baseline ~ WBS, Scope Statement

Cost Baseline ~ Project Budget, Cumulative Cost Curve

Schedule Baseline ~ Gantt Chart, Milestone Plan

TimeCost

An approved p lan for the p rojec t work aga inst whic h p rojec t exec ution

is c ompared and devia tions a re mea sured for management c ontrol.

Kickoff Meeting

Objectives for this process should include:


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Help stakeholders get to know each other

Obtaining commitment for the project - focus on objectives

Review roles and responsibilities

Get people enthusiastic about making things happen

Agree operating procedures ~ review the communications plan

Documentation & Reports

Business Case / Project Charter

P j t M t Pl


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Status and Progress Reports

Project Risks & Issues

Change Management Documentation

Update relevant data as new information becomes availableUpdate relevant data as new information becomes available

Review the Communications PlanReview the Communications Plan

Controls

Continual monitoring (eg. cost and schedule)

Monitoring ~ What have we done?


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Focus on achievement of individual tasks

Each act of control is relatively cheap

Periodic review of the project status

Focus on achievement against project objectives

Can be costly both in terms of time and money

Evaluating ~ Where are we now?

Status Reporting

Content should be concise and include the following:

Deliverables completed during reporting period


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Cost & schedule status

Deliverables to be completed during the next period

Status of major project issues

Status of major project risks

Tip : Don t delay bad news!

Milestone Plan

Project Title : Kerbside Coaching Manual

Version : 2.5Date Issued : 25/03/2005

Deliverables Scheduled Finish Baseline Finish Actual Finish Finish Variance Notes


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Deliverables Scheduled Finish Baseline Finish Actual Finish Finish Variance Notes

08/02/2005

26/02/2005

20/03/2005

08/02/2005

26/02/2005

15/03/2005

29/03/2005

12/04/2005

26/04/2005

17/05/2005

21/06/2005

30/07/2005

08/02/2005

26/02/2005

20/03/2005

0 Days

0 Days

+5 DaysAdditional requirementsadded, see Change No 15

03/04/2005

15/04/2005

26/04/2005

17/05/2005

21/06/2005

30/07/2005

+5 Days

+3 Days

0 Days

0 Days

0 Days

0 Days

Project Charter

IssuedProject Start

Design Brief Issued

Investigation

Report Issued

1st Draft Issued

1st Draft Approved

Approved training

Programme issuedProject Finish

Issue Project Review Doc

Variance Analysis

The difference between what you have accomplished

and what you planned to accomplish


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Use graphical indicators with defined objective measures of variance:

Greatly behind schedule i.e. > +10 days

Behind schedule i.e. +5 to +10 days

On schedule or ahead of time i.e. < +5 days

Ind ic a tors c an a lso be designed for c ost & resourc e va rianc es

Progress Gantt Chart

%Complete 5 10 15 20 25 30

Task A 100%


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Schedule Progress

Current Date

Task C

Task B

Task D

Task E

Task F

25%

50%

25%

Earned Value Concepts

Project AProject A Project BProject B


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Cost

CostEarned

Value

ActualCost

Planned

Value

EarnedValue

Earned Value Management (EVM)

A management methodology for integrating scope, schedule and resources

for objectively measuring project performance and progress.



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Integrates multiple assessments into a single reporting structure

Simply based on just three numbers:

Planned Value (PV) ~ Planned cost of a task as of today

Actual Cost (AC) ~ Actual cost incurred for work done

Earned Value (EV) ~ Budgeted amount of the work done

(% complete X total cost estimate)

EVM Example

Our plan is to build 10 boxes in a two day schedule, cost estimate of $1000

Planned Value Cost estimate$1000

Status afterone day


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Earned Value

Actual Cost

$1000

Bills to date

$600

$500

$600

$400

= (% complete x total cost estimate)

40% x $1000

What is the value of work done?Task reported40% complete

Earned Value Formulas

Cost Variance

CV = EV - AC

Schedule Variance

SV = EV - PV

P iti l d ( t d t h d f h d l )


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Positive values are good (cost under spent or ahead of schedule)

Negative values are bad (cost over spent or behind schedule)

Cost Performance Index

CPI = EVAC

Schedule Performance Index

SPI = EVPV

Ratios greater than 1 are good (cost under spent or ahead of schedule)

Ratios less than 1 are bad (cost over spent or behind schedule)

Energizer

Where do changes come from?


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Identify the key sources of change, that might typically

occur on your projects

Do you consider these changes Favourable or

Unfavourable for your projects?

Integrated Change Control

Performed from inception to completion, because projects seldom run to plan!

Anticipate changes, include your strategy in the Project Management Plan


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Have the right attitude be positive and try and protect your team

Review and approve requested changes consider a documented approach

Co-ordinate required support

Review and document impact of change requests

Maintain integrity of baselines

Configuration Management System

The configuration management system with change control provides a

standardised, effective and efficient process to centrally manage changes within

a project. Effectively a subsystem of the overall project management system.


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The term has various definitions according to the application area.

It generally includes the following activities:

Configuration Identification ~ Products are defined and verified

Configuration Status Accounting ~ Capturing changes to manage product delivery

Configuration Verification & Auditing ~ Establishing that the performance and

functional requirements defined have been met.

Change Request

Change No: Date:

Author:

Description of Proposed Change:


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Benefits of Proposed Change:

Impact of Change: (Time, Cost, Scope)

Decision:

Sign-off

Change Control System

Change

Request

AssessCh ?

Small Change AcceptedNo


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Change?

ImplementChange

CancelChange Request

Escalate toProject Sponsor

Project SponsorSign-off?

No Yes

Unit 8 ~ Project Closeout

Objectives:

Project closure processes


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Indicators & performance measurement

Lessons learned reporting

Post project reviews

Energizer

What should be done to close out a project?



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Identify a list of good practice ideas

Mark on the list how many in your group

regularly perform each of the items you have listed

Close ProjectIncludes the processes used to formally terminate all activities of the project or phase

hand off the completed product to others or close a cancelled project


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4.7 Close Project


Close Project

Stakeholder approval of all deliverables

Facilitate the transfer of products / services to business as usual

Closure event, celebration / party?

Administrative closure


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Contract closure


Final Product, Service or Result

Organisational Process Assets (Updates)

Close all contracts associated with the project, check T&Cs

Make final payments / send invoices

Formal acceptance documentation and handover of the final product

Collect historical information / lessons learned

Project Closure documentation, plan for Post Project Review

Archive the Project Files

Documenting Lessons Learned

Conduct a review meeting to address four critical questions:

What was done right?


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g

What was done wrong?

What future recommendations can be made?

How, when, and to whom

should this information be disseminated?

Performance AnalysisWhilst project objectives are established from the top down

Evaluating the projects metrics or measures goes in reverse order

StrategyProject

Objectives


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gy

CustomerSatisfaction

BusinessOpportunity

FunctionalSupport

Methodology ExecutiveSupport

Time Cost Scope Quality

j

ProjectMeasures

DeliverablesCSFs

ProcessesKPIs

Business EvaluationThe Future

Post Project Reviews

TeamPerformance

IndividualPerformance


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Process

Review

Product

Review

Unit 9 ~ Learning review

Objectives:

Review lessons learned


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Course feedback form

PMI Membership

PMP Certification

Software Tools

General Reporting Tools

Microsoft Office ~ Word, Excel & PowerPointMicrosoft Visio ~ Charts & Presentations

E-mail ~ Communications


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Timesheet Reporting ~ see scheduling tools

Risk Management Tools

@ Risk for Project ~ www.palisade.com

Risk+ ~ www.cs-solutions.com

Scheduling & Control Tools

OpenPlan ~ www.welcom.comPrimavera ~ www.primavera.com

Microsoft Project ~ www.microsoft.com/office/project

Project Management Institute

PMI membership (individual member fee $129)

Free copy of the latest edition of the PMBOK Guide CD ROM

PM Network Project Management Journal and PMI Today


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PM Network, Project Management Journal and PMI Today

Access the members area of the website

Join PMIs Chapters, Specific Interest Groups (SIGs) and Colleges

Project Management Professional

PMP examination fee $405 (non-members $555)

Complete online application for PMP certification examination

Category 1 Baccalaureate or University Degree equivalent


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Within past 6 years at least 3 years PM experience Verified 4,500 hours experience across PMI 5 process groups

35 contact hours of project management education

Within one year of application acceptance, take PMP exam

Pass multiple choice exam, 200 questions in 4 hours

Category 2 Within past 8 years at least 5 years PM experience Verified 7,500 hours experience across PMI 5 process groups

35 contact hours of project management education

Whats Next?

Complete a personal action plan

Complete the course feedback


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Final questions

Bon voyage