07 - apmp study notes

8/10/2019 07 - APMP Study Notes

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APMP STUDY NOTES


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Project

Project

Project

BAU

Inter-related

PMPM

PM

COORDINATED MANAGEMENTCOMMON

STRATEGIC GOAL

1.2 PROGRAMMEMANAGEMENT

PMPM PM

Programme

Manager

Strategic

Tool

Corporate

Management

Project

Projects

Contribute


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1.2 PROGRAMMEMANAGEMENT

Irreckon

IInterdependencies

RResources

R - Risks

E - Economies of Scale

C - Communication Routes

BENEFITSRESPONSIBILITIES

SBStrategic Benefits

BiRD Benefits to achieve

Requirements to be met

Deliverables to be produced

IIntegration of projects + Interdependencies

RPCResources, Priorities, Conflicts

RIC - Risks, Issues, Changes


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Project

Project

Project

BAU

SELECTION & MANAGEMENT off ALL

1.3 PORTFOLIOMANAGEMENT

ProgrammeProgramme

Management of Resources

May NOT be inter-relatedAnd When

R RvR ITR

RResources

R - Risks vs Returns BAU profit or project

I - Improvementslessons leant, feedback

TTechnologysame throughout

R- Responsivenesscloser to customers, market,

react quicker


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1.3 PORTFOLIOMANAGEMENT

Portfolio management is the selection and management of all of an organisations projects, programmes

and related business-as-usual activities, which may not be interrelated. If defines when they take place

and is particularly interested in the management of resources

A portfolio is a group of projects and programmes carried out under the sponsorship of an organisation.

4 Commom Aspects

Screening, analysis and financial appraisal of project and programme characteristics in relation to the

organisation strategy;

Prioritisation and/or selection of projects or programmes, given the resources available, and likely

returns and risks;

Continued monitoring as projects and programmes develop;

Adjustment of the portfolio in the light of developing circumstances around the portfolio.

Portfolio management is particularly concerned with the interdependencies between projects and

programmes in terms of:

scarce or limited resources;

balance within the portfolio between risks and return;

Timing;

capacity bottlenecks.


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1.4 PROJECT CONTEXT

PPolitical

EEconomic

SSociological

TTechnological

L - Legal / Regulatory

E - Ethical/Environmental

Government Policies

TAXation

Credit Crunch

Exchange Rates/ Interest Rates

Fashion

Population changes

New, obsolescence,

eCommerce

Pollution

Job losses

3rdWorld exploitation

new laws,

employment laws and restrictions

Other factors to consider are :

organisational capability andmaturity,

structure and processes ,

individual resource

capability and availability.


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Sponsor is Primary Risk taker, acting on behalf of the project stakeholders

Owns Business Case, responsible for its completeness and thoroughness so

the board can sign it off.

Ensures Benefits are achieved & ensures obstacles are dealt with

Authorises Phases and Changes

Provide strategic Link to Corporate management

1.5 PROJECT SPONSOR

Is an active Senior Management role. Responsible for indentifying the business need.

Ensure project remains viable & benefits are realised, resolving issues outside the control

of the PM.

BLARBBusiness leader and decision maker who is able to work

across functional boundaries within an organisation;

Advocate for the project and the change it brings about;

Commits sufficient time and support to undertake the role;

Experienced in project management to be able to judge

whether the project is being managed effectively.

Business Case

Link to Corp

Authorises

Risk TakerBenefits Realised


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1.6 Project Office

A project office serves the organisations project management needs. A projectoffice can range from simple support functions for the project manager to

being responsible for linking corporate strategy to project execution.

Allocates PM resources to projects and is responsible for the development of

the PMs

Provide expertise to projects on tools, techniques and provides information

Enables / Drives lessons learnt and improvements

Provides support to enable the Sponsor to focus on business decisions & to

concentrate on exception management.

Develops and maintains standards, processed & methods


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2.1 Project Success & Benefit Management

Success factors is the project a success ? Met Time

To Quality

To Cost

elements of context that increase likelihood of success

Benefits Does it benefit the Business, make a profit ?

normally comes later after project finished,e.g. market share, improving security, increasing staff satisfaction

Success Criteria is the Qualitative or Quantitative measures by which the success of

the project is judged.

Benefitis the measurable improvement resulting from project

KPI Measures of success that can be used throughout project to ensure it is

progressing successfully.


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2.1 Project Success & Benefit Management - 5 uses of Success Criteria & KPIs

Success Criteria are developed during

the Concept phase and support the

Business case.

They are agreed with by Stakeholdersand represent what constitutes success.

They support project Authorisation.

They provide focus for the planning of

the project and setting realistic

objectives.

They aid the flow down of objectives

During stage reviews they are used to

determine/measure how the project is

performing against its objectives,

providing feedback to Upper

Management & Stakeholders.

Support go/no go checks

Concept

Planning

ReviewsHandover

& Closeout

Changes

They can be used for change

evaluation, the impact of a change

must be established & understood by

all stakeholders. If accepted a formal

change control process must be

followed

During Handover & Closeout they can

be used to demonstrate success. And

to achieve progress sign off.

They can be used later to ascertain

whether planned benefits were

achieved.


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2.2 Stakeholder Management

5 Elements of a Stakeholder Analysis Process

1) Identify Identify Stakeholders with an interest in the project. May be internal or external to the

business.Brainstorm & research

2) Levels Establish levels of interest & influence/power on the project.

3) Priorities The various interests and power levels need to be evaluated to establish their potential

impact on the project.

Establish blockers and backers and prioritise those who have the greatest power & interest (

whether +ve orve.

4) Action Plans Develop an action plan and implement it to deal with each stakeholder appropiately.

5) Monitor These plans are monitored and controlled to ensure effectiveness.

The process is continuously applied, especially at phase boundaries where stakeholders

interest & power can change

Against For

- Interest +

high

Power

low


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2.2 Stakeholder Management

Stakeholder management is the systematic identification, analysis and planning of

actions to communicate with,

negotiate with andinfluence stakeholders.

Stakeholders are all those who have an interest or role in the project or are impacted by

the project.

Potential stakeholders may identify:resources needed for the project;

organisations or people who will be affected by the project;

organisations or people on the sidelines of the project who will influence

attitudes and behaviours;

statutory and regulatory bodies.

Questions to consider are as follows:

Do they have an interest in the project succeeding?

Will they be openly supportive of the project as it progresses?

Is the stakeholder ambivalent about the project?

Could the stakeholder have a negative view about what the project will deliver?What are their expectations and how can these be managed


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2.4 Project Management Plan

The PMP provides a baseline definition of how a project will be managed. The PMP

contains various plans on how the project will be implemented, success criteria, role &

responsibilities and many more factors.

It is owned by the PM, authorised by the Sponsor and developed with the project team,

aiding their buy in.

It is the Why, What, How, Who, When, Where and How Much

4 policies Change Control

Project Plan

Communications Plan

Procurement

5 actions a PM takes to prepare a PMP

1. Why. To understand business case and why the project is needed2. What. To define What has to be achieved, Scope, success criteria, KPIs, deliverables

3. How. Develop the strategy of How the project is to be undertaken, WBS,PBS, Tools &

techniques, project control, plans.

4. How Much. To produce estimates and budgets.

5. Who. Define Roles and Responsibilities


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2.4 Project Management Plan

The PMP provides a baseline definition of how a project will be managed. The PMP

contains various plans on how the project will be implemented, success criteria, role &

responsibilities and many more factors, and is a reference document for the project.

It is owned by the PM, authorised by the Sponsor and developed with the project team,

aiding their buy in.

It is the Why, What, How, Who, When, Where and How Much

4 policies Change Control

Project Plan

Communications Plan

Procurement

5 actions a PM takes to prepare a PMP

1. Why. To understand business case and why the project is needed2. What. To define What has to be achieved, Scope, success criteria, KPIs, deliverables

3. How. Develop the strategy of How the project is to be undertaken, WBS,PBS, Tools &

techniques, project control, plans.

4. How Much. To produce estimates and budgets.

5. Who. Define Roles and Responsibilities


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2.5 Risk Management

INITIATE

IDENTIFY

ASSESS

PLAN

RESPONSES

IMPLEMENT

RESPONSES

M

AN

A

G

E

PR

O

C

E

S

S

Reviews,

Audits,

learning,

Improvements

Initiation step to define scope & objectives

Identification to identify all significant risks that may

impact the project objectives and gather information

for analysis

Analysis

Response

Appropriate responses are considered and selected onthe basis of overall benefit. Responses aim to Avoid,

Reduce, Transfer, Accept the risks with a contingency

action.

Execute agreed responses.

Is an Iterative process

Qualitative

methods to

determineprobability &

impact of each

risk. Can

prioritise them.

Quantitative

methods to

determinecombined effects

of uncertainties

and risk


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2.5 Risk Management

5 Techniques for Identification

Workshops

Post Project Reviews

Check lists & Prompt list

Brainstorming

Assumptions analysis

SWOT analysisInterviews

Cause & Effect

WorkshopsUseful for integrating inputs

from different stakeholders & experts.

Deals with complex situations with

interdependencies between risks

BrainstormingThis is an open forum where

group members identify risks and then

rank them.

Useful for similar situations, and good

for team building

SWOTThis is a specific brainstorming

activity using Strength,

Weaknesses, Threats andOpportunities as main focal

points. This technique

encourages big picture view.

Check listsTeam go through checklists to

identify risks. The lists consist of

structured questions and is useful for

gathering information.

Reduces the need for experts.

Interviewswith stakeholders & experts to

identify risks and possible responses.

This is relatively quick and

inexpensive and often provides

information on preventative actions


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2.5 Risk Management

4 Responses to Top Priority Risks

Avoid - An alternative approach is taken to avoid the risk

Transfer - Assign contractual responsibility to another stakeholder who is

better place to manage the risk.

Reduction - Proactive measures to reduce likelyhood, impact or both. Ideally

reduction measures should be taken for high level risks.

Acceptance - Where the risk impact is low or the cost of mitigation is too high.

NOT FOR TOP PRIORITY RISKS !

Contingency - A fallback plan that will be implemented if the risk occurs.

Additionally we can add an allowance in estimates for events that

cannot be predicted.


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2.5 Risk Management

4 Actions of a PM in Preparing Responses to Top Priority Risks

1. Involve team and experts to generate responses to risks

2. Cost out the actions and analyse the benefits

3. Apply resources & establish ownership of actions

4. Obtain authorisation if necessary

All projects are inherently risky, because they are unique, constrained, complex, based

on assumptions and performed by people.

Exploit, enhance, share or accept opportunities,


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2.6 Project Quality Management

Is the discipline that is applied to ensure that both the outputs of the project and the

processes by which the outputs are delivered meet the stakeholders needs.

Project Outputs & Processes thereof meet stakeholder needs

Quality Planning Identifying which Q standards are relevant and how to

apply them to ensure required quality is achieved.

Output is Q Plan ( part of PMP ), provides guidance

to stakeholders on how Q management will be performed.

Includes :- Stakeholder expectations

Success Criteria

Standards

How Q will be Assured

Quality AssuranceVerifies work is being done in accordance to procedures

Preplanned Reviews and Audits

Provides confidence to stakeholders that project will satisfy Q

requirements & standards

Provides valuable information for lessons learnt & improvements.


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Quality Control. Checks projects results comply with standards & specifications.

Take corrective action to eliminate causes or address unsatisfactory

performance.

Conforms to spec, fit for purpose and meet stakeholder needs.

Inspection, testing, trials - verify deliverables fir for purpose, meets

stakeholder needs.

Continuous ImprovementThe process of improving Q by incremental changes, from

lessons learnt.

Focus is on specifying requirements tightly and meeting them

effectively & efficiently as possible.

Approaches include TQM, 6 Sigma.

Quality is broadly defined as fitness for purpose

Quality management : Outputs of Project and process by which the outputs were

delivered meet stakeholder needs.

3 Tools to help :- risk management, modelling and testing , and configuration

management


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How a PM ensures Q Requirements are met

1. Standards Ensure team know standards, specifications

2. Procedures Ensure team know procedures, train them

3. Roles & Responsibilities Make team aware of their roles & responsibilities for

carrying out Q Management actions.

4. Monitoring and Control To ensure product quality is being adhered to as per Q

Plan.

Ensure outcomes of audits are acted upon

5. Change Control in place


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2.7 Health & Safety & Environmental Management

Health, safety and environmental management is the process of determining and

applying appropriate standards and methods to minimise the likelihood of accidents,

injuries or environmental impact both during the project and during the operation of

its deliverables.

5 PM actions to comply with Health & Safety Legislation

1. Training Awareness of safe working practices & safety information

2. Safety Equipment Staff awareness & training on using safety equipment

3. Tools & Equipment Regularly checked and safe to operate

4. Risk Assessments Identification, analysis & responses to hazards

5. Accident Book Accidents & Incidents involving safety are

Documented,

Reported,

Evaluated &

Acted upon


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2.7 Health & Safety at Work Act 1974

AIMS

To secure

HealthSafety

Welfare of

People at Work

To protect OTHERs from risk

arising from activities of

People at Work

To Control emissions

into atmosphere of

noxious or offensivesubstances

To Control the Use &

Storage of Dangerous

Substances


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2.7 Health & Safety & Environmental Management

4 Specific Duties of Care

1. Training Staff given adequate training to do their job

2. Safety Equipment Staff aware of after

equipped with & extra

trained to time

use appropriate safety & protective equipment

3. Tools & Equipment Regularly checked and safe to operate

4. Risk Assessments Are conducted Identification, analysis & responses to

hazards


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3.1 Scope Management

Scope Management involves the identification and definition of the deliverables and

work to produce them.

IN / NOT IN

The scope must define what is included and what is not included

Scope management is continually applied throughout the project life cycle.

4 Actions a PM takes to produce Scope

1. Define deliverables -> PBS

2. Establish WBS to achieve above. Define inputs & outputs, determine resource3. Cost up each WP, with team.

4. Identify and evaluate assumptions made
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3.1 Scope Management

PBS Product Breakdown Structure Hierarchical breakdown of products

produced by project

WBS Work Breakdown Structure Hierarchical structure showing tasks to

be undertaken by project.

Lowest elements are called work

packages.

OBS Organisation Breakdown Structure Shows role titles

RAM Responsibility Assignment Matrix Accountability, role,

responsibility of team

CBS Cost Breakdown Structure

PM

TL TL

TMSL

TM TM

TM TMTM


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Diagram of WBS

Work Packages are lowest

level of any branch

Benefits of Structures in Planning and Controlling Projects

1. Helps define Schedule on which whole project is built

2. Defines objectives and maintain focus

3. Assigning Resource & responsibility

4. Managing Cost

5. Monitoring Progress


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3.2 Scheduling

Process to determine overall project duration and when activities and events

are planned to happen.

2 Methods :- Gantt Chart

Network Diagram

PERT - Programme Evaluation Review Techniqueuses 3pt estimates

3.3 Resource Management

Resource Levelling :- Schedule work not to exceed resource limit, may extend

duration

Two Types of Resource:- Replenishablefresh supplies, eg. Raw materials

Re-usableWhen finished, become available, eg. People

Resource Allocation Mapping resources to tasks

Resource Smoothing Resources used efficiently, does not affect duration

Resource Aggregation Summation of resources against time


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3.4 Budgeting & Cost Management

Estimate Cost, Agreeing budget, management of actual vs forecast

Commitment:- Value of orders placed for work to be doneAccrual:- Work done, payment is due

Actual Expenditure: Actual costs, money paid

Forecast out-turn cost:-

CAC = Total of Actuals + Accruals + Committed + Estimated CTC

Phase budget over time used in project financing and funding: allows cash

flow forecast & drawdown of funds to be agreed.

Concept Definition Implementation

InitialEstimate

Business Case

Investment

Appraisal

Estimate

refined (=BAF )Risks &

Contingency

added

Estimate

agreed by

SponsorBudget Set

Allocated to

WPs

MonitoredEVA


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3.5 Change Control

Is the process that ensures all changes made to a projects baselined Scope T,Q,C or agreed

benefits are Identified

Evaluated

Approved, Rejected or Deferred5 Features of a Change Control Process

1. Request Come form any stakeholder

Entered in a log

Changes may be External stakeholders, may be subject to

contract conditions

2. Initial Evaluation Reviewed to consider if it is worth while evaluating in detail

Evaluation of change as a deviation itself from project plan.

Change may be rejected.

3. Detailed Evaluation Consider impact on Scope, T, Q,C, agreed benefits.

4. Recommendation To Approved, Reject or Defer

Sponsor has authority, Communicate outcome

5. Update Plans If change approved, all plans are updated to reflect the change

6. Implement Necessary actions to implement change are undertaken

T

Q C


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3.6 Earned Value Management

Prerequisites

1. A work breakdown structure (WBS) to define the work.

2. Responsibilities for work defined in an organisational breakdown structure (OBS)3. The budget distributed in the WBS.

4. All authorised work scheduled.

5. A method of measuring achievement.

6. The budget phased over time against the schedule to provide a profile of

expenditure.

7. Baselined plans

8. Costs Recorded , coast identified as either direct or indirect costs, and all direct costs

recorded.

9. Performance data collected and analysed on a periodic basis.

10. Forecasts for the remaining work produced.

11. Changes to the baseline managed through a change control process


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3.6 Earned Value Management

Five Benefits from using Earned Value Analysis in projects

1. Performance Measurement Provides ongoing performance measurement.

Useful for PM to focus attention.Can compare with other projects

2. Variance and trend analysis Shows deviations from baseline, in terms of cost

and schedule ( good and bad )

Can plot SPI & CPI and others to show trends in

performance

3. Predicts CAC & End date Gives advance notice of possible over/

under spenduseful for financial management

Gives a predicted end date, useful for resource

management

4. Improves Estimates History of actual spend on tasks helps improve

estimating accuracy of current and future tasks

5. Provides triggers for escalating problems & highlighting successes. Upward Feedback

Could use trend lines.6. Information to assess whether corrective actions are required.


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3.8 Issue Management

Is the process by which concerns that threaten the project objectives

and cannot be resolved by the project manager are identified and removed.

Escalate to sponsor or higher. If not project may fail or effect objectives.

4 Actions

Capture

Impact on

Escalate

Monitor

T

Q C

Two Common Failings:

1. Wrongly identifying project problems as issues that

are the responsibility of the project manager. This

diverts attention away from handling genuine

issues;

2. Failing to FURTHER escalate an issue when not

resolved.

Issue = Threat to project objectives that cannot beresolved by PM

Issue resolution -> Project Steering group


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4.1 Requirements Management

Process of capturing, analysing and testing the stakeholder and user wants and needs.

Requirements should be comprehensive, clear, well structured, traceable and testable.

The primary factors:

Value Size of the benefit associated with each requirement.

PriorityStakeholders agree the priority ordering of requirements.

Time Time imperatives drive the ordering of the requirements.

ProcessHow the solution is to be built, particularly important where subcontractors

will be used to build some components

CADET

Capture needs

Analyse value, priority, time, process

Define, resolved conflict, document

Evaluate design meets requirements

Test meets requirements


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4.3 Estimating Techniques

Bottom Up Estimating

This method is based on the WBS. All the individual lower level tasks in the WBS are

estimated independently and then rolled up to produce the project estimates. Timeconsuming. Accurate. Best done in definition phase when information more accurate.

Comparative Estimating

It takes the overall costs and timescales for similar projects and adjusts them for size and

complexity simply involves using experience. Needs historic data. E.g. time taken to lay

pipe. The danger is that previous projects may have been inefficient, badly managed, or

circumstances may be different e.g. laying pipe in different terrains.

Parametric Estimating

Parametric estimating uses a mathematical model or formulae to produce project

estimates based on input parameters. It is usually based on historical data. Quick to

produce once set up.


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4.3 Estimating Techniques

How estimates vary through project lifecycle.

Concept

DefinitionImplementation

Handover

Accurate

estimatesdifficultdue

to lack of

information

Better

estimateswhen

planning

takes place

Estimates

refined byperformance

feedback

Estimates

almost

certainsince

mainly based

on actual /

known

information

An Estimate is an approximation of time and cost

3pt estimates allow for variation in estimates


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5.1 Business Case

Provides justification for undertaking a project, in terms of evaluating the benefit, cost

and risk of alternative options and rationale for the preferred solution.

Its purpose is to obtain sign off ( management commitment and approval for investmentin the project). Owned by the sponsor.

JCBDIG

J Justification for project, explains link to corporate strategy. Used to optain

authorisationC Criteriadetails project success factor, used to judge success by stakeholders

B Benefitsdetails the benefits anticipated as a result of the project

D Deliverablesdetails a schedule of key deliverables, their purpose and a high

level description of project scope

I Investment Appraisalanalysis of different options, including do nothing.

Provides financial benefits, costs, payback.

Schedule

Risks

Assumptions

Constraints;

Dependencies;


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5.1 Business CaseInvestment Appraisal

Payback Time taken to recover initial investment. Longer Payback, increased

risk. Shows cash flow situation. Useful for comparing options

where levels of initial investment and time taken to recover areimportant. Can compare projects with different paypack.

NPV Net Present ValueProvides a realistic estimate for future returns

and profit using discounted future values to bring them into present

day values. Can compare projects or options with different levels of

Investment,Cash flow profiles

Timescales

IRR Internal Rate of ReturnDiscounted Rate that produces an NPV of

Zero.

Used to compare value of project with alternative returns oninvestment, such as bonds.

Needs adjustment to allow for different levels of risk in projects.


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5.1 Business Case

Why Sponsor must own business case

The project manager will usually hand over responsibility for the project when thedeliverables have been formally accepted. At this stage the business benefits, defined in

the business case, have yet to be realised. As the sponsor owns the benefits realisation

he should also be responsible for making the business case for the project

The sponsor provides the link between the project and corporate management who

determine corporate objectives. Every project must be aligned to corporate objectiveshence the sponsor is best placed to ensure that the business case supports corporate

objectives.


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5.1 Business CaseInvestment Appraisal

5 limitations of Investment Appraisal techniques

Financial methods will not address:-

1. Operational Survival - a project may be needed for operational survival, e.g.

cheaper manufacturing costs, millennium bug.

2. Competitive Survivalmay need to defend or improve competitive edge to survive,

regardless of financial benefit. Or an new opportunity may arise, = life tag.

3. Quality of Estimates. The investment appraisal techniques are based on estimates of

future in terms of sales, revenue, savings etc. These are a judgement of people and

may not reflect actual outcome.

4. Environmental Factors - Financial methods cannot determine factors in theenvironment that may change. PESTLE, legislations, obsolete technology.

5. Stakeholder influencenot all stakeholders may be interested in financial aspects,

for instance a new hospital.


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6.1 PROJECT LIFE CYCLES


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6.1 PROJECT LIFE CYCLES

Benefits MMERR

Manageable Chunks

Major Review Points

Estimating Accuracy

Rolling Wave Planning

Risk

MMERR


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6.5 Handover and Closeout

Explain the Handover Process

1. Marks the end of the Implementation stage, where the project enters into itsoperations environment. The process of handover starts with defining a plan which

will state the process, objectives and may include training, support.

2. The achievement of deliverables are demonstrated, making sure they match

acceptance criteria and that they are accepted.

3. The sponsor formally accepts responsibility for the project and must then ensure

business benefits are achieved.

4. Deliverables are physically delivered to operations and users, including

documentation and are accepted.

5. Training and Support Infrastructure are set up and provided. Ensure product start up

and commissioning.


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6.5 Closeout

Finalising all project matters.

Carry out Post Project Reviews.Re-deploy team

PM Should:

Surplus material should be disposed of

All contract and Purchased orders are finalisedAll project accounts are finalised

All documentation archived

Carry out Post Project Reviews.

Performance appraisal of team.


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6.6 Project Review

Checks likely or actual achievement of objectives specified in the PMP and benefits in

business case.

Reviews include : Gate Reviews, Post Project Reviews, Benefits Realisation Review

Post Project Review - Independent facilitator chairs

HELPP

History - what went well, what went wrong

EstimatesHow did actuals compare with plan, how good were estimates

Lessons LearntDraw up lessons learnt, recommendations for improvements

Performanceagainst success criteria and

how well did team performrecognition

Performance of PM - Risk, change control, quality, co-ordination

T

Q C


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6.7 Organisation Structure

Functional Organisations

Advantages


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Project Organisations

Advantages


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Matrix Organisations

Advantages


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Strong Matrix Organisations

Advantages


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6.8 Organisational Roles

5 ROLES IN PROJECTS

Corporate Management

Sponsor

PM

Users

Team

Authorisation

Risk Exposure check

Strategic Overview

Owns Business Case

Delivering Benefits

Link to Corporate management

Controls & Coordinates

Produces deliverables

Achieving TQC

Requirements & DefinitionProduct Review

Does the work

Help plans the workfeas report.


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6.10 Governance

Ensures that an organisations project portfolio is :-

aligned to organisations objectives

delivered efficientlysustainable

Governance of Project Management is a subset of Corporate governance

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