1 © the delos partnership 2003 welcome to the project management foundation course based on the...

1 © The Delos Partnership 2003

Welcome to the Project Management Foundation

Course

Based on the Project Management Body of Knowledge (PMBOKTM) from the Project Management Institute (PMI®).


The Project Management Institute (PMI®) is project

management’s leading global professional

association, and as such, it administers a

globally accepted and recognised, rigorous,

examination-based, professional certification

programme of the highest calibre.


The course is designed to support both the

immediate practical challenges you face

implementing projects within your organisation

and also to provide you with a solid foundation in

recognised good project management practice

for all your future endeavours.


Course ObjectivesCourse Objectives

To provide you with a strong foundation in good project management practices

To improve the management of the current projects you are working on for the benefit of the company

To enable you to become Certified Associates in Project Management


Expectations!


Course OutlineCourse Outline

MondayIntroduction

Project Initiation

Project Planning

Tuesday Wednesday Thursday Friday

am

pm

Project Execution

Project Control

Project Closure

Project Framework & Organisation

Project Integration

Scope Mgmt

Time Mgmt

Cost Mgmt

Quality Mgmt

HR Mgmt

Communication

Risk Mgmt

Procurement Mgmt

Revision

Exam


This Course Covers The PMI® This Course Covers The PMI® Project Management Life CycleProject Management Life Cycle

InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses

ControllingProcesses


ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses


And The PMI® Project And The PMI® Project Management Knowledge AreasManagement Knowledge Areas

All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas

4. ProjectIntegration

Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management

9. ProjectHuman Resource

Management


Management

10. ProjectCommunications

Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management

12. ProjectProcurementManagement


9 © The Delos Partnership 200304/21/23

Active Learning Approach – Active Learning Approach – The Project Management Life CycleThe Project Management Life Cycle

Presentation on Key Concepts/PMIisms

Case Study

Report out

Learning Review

Theory&

Practice


Active Learning Approach – Active Learning Approach – The Nine Knowledge AreasThe Nine Knowledge Areas

Presentation on Key Concepts/PMIisms

Create a Knowledge Area Map – Group work

Practice Exam Questions Individual Work

Answers & Group Discussion

Theory&

Practice


What is a Project?What is a Project?

A project is a group of related work activities, organized under the direction of a project manager, which when carried out, will achieve certain objectives. A project has stated scope, deliverables, work steps, duration, and budget.


What is a Project?What is a Project?

A project:– Is unique– Has a beginning and an end– Is defined by specific objectives– Is conducted by a well-defined organization– Has a single project manager who is responsible for its

success– Is defined by identifying the starting point and the goal and

the route between them


What is Project Management?What is Project Management?

Project Management is the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Meeting or exceeding needs invariably involves balancing competing demands among:– Scope, time, cost, and quality– Stakeholders with differing needs and expectations– Identified requirements (needs) and unidentified

requirements (expectations)

Source:Project Management Institute 1996

© The Delos Partnership 200304/21/23

Programme vs ProjectsProgramme vs Projects

– A programme is a group of projects managed in a coordinated way

– A programme is a set of activities / initiatives that need to come together to achieve a major business change


The PMI® Project The PMI® Project Management Life CycleManagement Life Cycle

InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses


Project InitiationProject Initiation

At the end of this session you will have an understanding of the following:-

• 4 Stages within Project Initiation

• The Business Filters

• Project Charter(s)


PMI® Initiating ProcessesPMI® Initiating Processes

5.1 Initiation

5.1 Initiation

Business Case

Business Case CharterCharterInitial

Invest.

Initial Invest.IdeaIdea


The aspiration or aim of the project ….

What is a Goal?What is a Goal?

There can be only ONE goal

Acts as ‘mission statement’ for the Project


What is an Objective?What is an Objective?

Specific (What is it we are trying to do?)

Measurable (How will we know we have achieved it?)

Achievable (Can we do it?)

Relevant (Is it the right thing to do?)

Time-related (When will we do it?)

A statement of a particular desired outcome supporting the Goal that is:


Ideas - Pick the WinnersIdeas - Pick the Winners

BIs

UIs

GIs

(Business Imperatives)

(Good Ideas)

(Useless Ideas)


The PMI Project The PMI Project Management Life CycleManagement Life Cycle

InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses

Business Case


Invest.




InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses

Business Case


Invest.



Tech. Feasibility StudyTech. Feasibility Study

• Refine Scope of Activity– Prepare Statement of Work.

• Make or Buy– Need for control, Intellectual Property– Do we have or can we/do we want to acquire the skills?

• Do we have a solution?– Technical Issues & Risks– Commercial Issues & Risks– Rough Cut Costs

• Background & Experience


Developing the Business CaseDeveloping the Business Case

BenefitsBenefits

ObjectivesObjectives

Critical Success Critical Success FactorsFactors

DeliverableDeliverable

CostsCosts

•What will be the Business Benefit?

• Benefits Mgmt Process

•What must be achieved?

•Strategic / Tactical / Operational

•What must go right ?

•Pertaining to Overall Success

•What must we do at Deliverable Level ? •High Level Work plan

•What will it cost? •Cost +/- 10% / Risks/ Assumptions

What ? ? How ?


Benefit Analysis TypesBenefit Analysis Types

Discounted Cash Flow Types

Net Present Value (NPV)

Return on Investment (ROI)

Non Discounted Case Flow Types

Benefit Cost Analysis (BCA)

Payback Period



InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses

Business Case


Invest.



Initiating the ProjectInitiating the Project

Develop goals and objectives Define project deliverables Define high level scope Identify high-level activities Document project assumptions Secure project sponsorship Obtain approval to proceed

Input OutputProcess

InitialProjectCharter

Initial Project Charter Major Constraints Identified Major Assumptions Listed Project Manager Assigned Authority to Proceed

BusinessCase


What is a Project Charter?What is a Project Charter?

The Project Charter provides authority for the project to proceed.

The Charter documents the agreement between the Sponsor, the Programme Manager (if appropriate) and the Project Manager and provides a blueprint for the project

Makes the project visible from “start”


The Charter Should ContainThe Charter Should Contain

A clear statement of the project’s objectives,

High Level Scope and deliverables;

The rationale for the project (headlines from the business case)

Defining the project roles & responsibilities;

Outlining the High Level Plan;

Documenting related projects.

Roles and Responsibilities


Initiating the ProjectInitiating the ProjectKey Project Manager ActivitiesKey Project Manager Activities

• Define Project Objectives & Major Deliverables;

• Define Project Structure & Resource Plan;

• Prepare High Level Project Budget;

• Prepare Business Case

• Compile Project Charter;



InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses


PlanningPlanning


• The Planning Process

• The Planning Hierarchy

• WBS

• Plans

• Schedules

Up, Down and Acrossthe Company


Planning ProcessesPlanning Processes

6.3 Activity Duration

Estimating

6.3 Activity Duration

Estimating

5.2 Scope

Planning

5.2 Scope

Planning

5.3 Scope

Definition

5.3 Scope

Definition

6.1 Activity

Definition

6.1 Activity

Definition

7.1Resource Planning

7.1Resource Planning

6.2Activity

Sequencing

6.2Activity

Sequencing

7.2Cost

Estimating

7.2Cost

Estimating

6.4Schedule

Development

6.4Schedule

Development

7.3Cost

Budgeting

7.3Cost

Budgeting

4.1Project Plan Development

4.1Project Plan Development

N.B. All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas


InputInput OutputOutputProcessProcess

Phases

Objectives

Deliverables

Acceptance Criteria

Scope PlanningScope Planning

CharterProjectCharter Scope

Plan

Wave 1 Wave 2



Decomposition

Scope DefinitionScope Definition

Objective

Work Breakdown Structure

Charter

ScopePlan

Charter

Scope Plan

WBS


Why Define the Why Define the Work Breakdown Structure?Work Breakdown Structure?

To manage a project successfully, you must first have a clear understanding of the amount of work you are required to complete

Only then can the cost and schedule of your project be estimated and controlled with any confidence

The WBS identifies all the work to be performed I.e. the Scope of the Project. If it is not in the WBS it is not part of the project

It can often be as important to say what is not within scope


GoalGoal

Objective 1Objective 1 Objective 2Objective 2 Objective 3Objective 3

Deliverable 1Deliverable 1 Deliverable 2Deliverable 2 Deliverable 3Deliverable 3

Defining the WBSDefining the WBS

TaskSub Tasks

Task Sub Task

TaskSub Tasks

Task Sub Task

TaskSub Tasks

Task Sub Task



Activity Lists

Activity DefinitionActivity Definition

Charter

Scope Plan

WBS

Charter

Scope Plan

WBS

Project Task List



Dependencies

Activity SequencingActivity Sequencing

Project Visual (Network Diagram)

Charter

Scope Plan

WBS

Charter

Scope Plan

WBS

Project Task List Project Task List

NetworkDiagram


Creating the Project VisualCreating the Project Visual(The Network Diagram)(The Network Diagram)

Facilitates engaging the project team and other stakeholders

Sanity Check

Helps determine the critical path

A

D

B C

E

G

F

H I

Critical Path = A:D:E:F:H:I= 2+6+2+2+2 = 16 (weeks)

2

2 6

11 2

1 1

2

2



Activity Duration EstimatingActivity Duration Estimating

Top Down (Analogous) Estimating

Expert Judgement

Monte Carlo Analysis

Heuristic (Rule of Thumb

Historical Information (Benchmarking)

PERT

a combination of the above….

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions



PERT (Project Evaluation and Review Technique)

CPM (Critical Path Method)

Resource Levelling

Schedule DevelopmentSchedule Development

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


PERTPERT

(Program Evaluation and Review Technique)(Program Evaluation and Review Technique)

1. Estimate for 3 separate scenarios:Best Case (B), Most Likely (ML) and Worst Case (W)

2. Calculate Weighted average estimate by:(B + 4 ML + W ) / 6


Pert AnalysisPert Analysis

- Example - Example

1. Best Case estimate = 10 hours,

Most Likely estimate = 15 hours,

Worst Case estimate = 25 hours.

2. Average estimate = (10 + 4*15 + 25) / 6

= 16 hours.

N.B.Standard Deviation = (Best Case + Worse Case) / 6Variance = [(Best Case + Worse Case) / 6] 2


Critical Path MethodCritical Path Method

The focus on CPM is to determine float in order to determine which tasks have the most and the least scheduling flexibility

A

D

B C

E

G

F

H I

Critical Path = A:D:E:F:H:I= 2+6+2+2+2 = 16 (weeks)

2

2 6

11 2

1 1

2

2


Project ScheduleProject Schedule

Project PlansProject Plans

Activity ListActivity List

• A multi page document (not a Gantt chart)

• Down to the level that you are going to control at

• Rolling Weekly schedule of tasks (<4 weeks out)

The Planning HierarchyThe Planning Hierarchy

WBS


Designed to reduce overhead associated with maintenance of more detailed project plan on a weekly basis

Activity List is a detailed picture of the work assignments and schedule of activities over the coming weeks ( <4 weeks)

It specifies tasks, resource assignments and the expected start and end dates

It is updated on a weekly basis, based on actual performance during the preceding week

Changes in the project work plan are reflected in the activity lists and vice-versa

99

1212

33

66

Activity ListsActivity Lists


What is required?...………………...

by when?…………………………….

What must be done?………………….

in what order?………………………….

and by whom?……………………….

How long will each activity (and therefore the whole project) take?...

So how do I make it fit ?…………...

Objectives and deliverables

High level estimates/external milestones

Activities

Dependencies

Resourcing

Detailed work estimates

Reconcile

Scheduling SummaryScheduling Summary


ReconcilingReconciling

More resources

De-scope

Further breakdown - focus on what’s actually required

Critical path analysis

Re-time

Levelling - better utilisation of existing resources

Overtime!

Crash

Fast Track



What type of resources are required?

How many?

For how long?

What % of time

Resource PlanningResource Planning

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule

ResourceRequirements



Top Down (Analogous) Estimating

Bottom Up Estimating

Parametric Estimating

Cost EstimatingCost Estimating

Resource RatesChart of Accounts

Historical Information

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Cost Estimates



Grouping of estimates

Cost BudgetingCost Budgeting

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Cost Estimates

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Cost Estimates

Baseline Budget



Project Management Information System

Project Plan DevelopmentProject Plan Development

C h a r t e rS c o p e P l a n

W B SP r o j e c t T a s kL i s tN e t w o r k

D i a g r a mD u r a t i o n E s t i m a t e s

&A s s u m p t i o n sP r o j e c t

S c h e d u l eR e s o u r c e

R e q u i r e m e n t s

C o s t E s t i m a t e s

B a s e l i n e B u d g e t



Quality PlanOrganisational PlanCommunication Plan

External Resource PlanProcurement Plan

Risk Management Plan

Project Plan DevelopmentProject Plan Development



Project Management Information System

Project Standards

Stakeholder know how


Quality PlanQuality Plan

Standards

What requirements do you need to meet?

Assurance

how will you assure the requirements will be met?

Control

How will you verify that the requirements have been met?


Organisation PlanOrganisation Plan

Responsibility Breakdown Structure

Who does what?

Staffing Management Plan

When and how human resources will be taken on and off the project

Organisational Chart


Communication PlanCommunication Plan

Themes

Objectives, Scope

Agree “What” to Communicate

Channels, Media

Principles

Agree “How” to Communicate

People

Materials

Develop CapabilityTo Communicate

Escalate Major Issues

Adjust Approach

Review EffectivenessAddress Issues

Listen & Document

Immediate Response

Gather Feedback

Check Understanding

Open Environment

Deliver Communication


Communication PlanCommunication Plan

Channel /Vehicle

Description Frequency Potential Audience

Project Plan Microsoft Project Plan withdeliverables by stage

Ongoing Steering Committee, Key Stakeholders

Status Reports Progress against deliverablesand identification of issuesand risks

Weekly Project Office

UpdatePresentations

Monthly summary of statusreports

Monthly All staff (via Key ProcessOwners)

Info letter Update on schedule, benefitsof Project One

Every Quarter All Staff


Procurement Procurement Management PlanManagement Plan

Procurement Planning

Solicitation Planning

Solicitation

Source Selection

Contract Administration

Contract Close Out



Make or Buy

Expert Judgement (internal capability / internal capacity / need

for control/ Protection of Intellectual Property / Cost)

Contract Type Selection (Fixed Cost / Cost Reimbursable / Unit Price

Contract)

Procurement PlanningProcurement Planning

Scope Statement

Market Conditions

Procurement Management Plan

e.g. What type of contracts will be used?

How will multiple suppliers be managed?

Statement of Work



Standard Forms

Expert Judgement

Solicitation PlanningSolicitation Planning

Procurement Management Plan e.g. What type of contracts will be used? How will multiple suppliers be

managed?

Statement of Work

Bid Documents

Evaluation Criteria



Advertising

Bidders Conference

Agencies

Internet

SolicitationSolicitation

Bid Documents

Evaluation Criteria

Proposal



Screening System

Weighting System

Contract Negotiation

Source SelectionSource Selection

ContractProposal

Evaluation Criteria

Organisational Policies



Change Control

Performance Measurement

Payment

Contract AdministrationContract Administration

Contract

Work Results

Invoices

Change Requests

Contract Changes

Payment Requests



Procurement Audit

Contract Close OutContract Close Out

Contract Documentation

Contract File

Formal Acceptance and Closure


Risk Management PlanRisk Management Plan

Risk Identification

Risk Quantification

Risk Response Development

Risk Response Control


EVERY project carries a number of risks...

• How likely is it to happen?

• How severe will the impact be if it does happen?

• How do we reduce the likelihood (mitigation)?

• How do we deal with the consequences if it occurs (contingency)?

What is a RiskWhat is a Risk??

A condition or circumstance which may occur which could a negative affect on the success of your project at some point IN THE FUTURE



Check Lists

Interviewing

Feedback

Risk IdentificationRisk Identification

Contract Documentation

Sources of Risk

Potential Risk Events

Risk Symptoms



Judgement

Decision Trees

Statistical Sums

Risk QuantificationRisk Quantification

Stakeholder Tolerance

Potential Risk Events

Cost Estimates

Duration Estimates

Risks to Accept

Risks to Pursue


Statistical SumsStatistical Sums

PERT

Standard Deviation = (Worse Case - Best Case)/6

Variance = [(Worse Case - Best Case)/6]2

The higher the variance the greater the risk...



Mitigating Approach

Contingency Planning

Insurance

Procurement

Risk Response DevelopmentRisk Response Development

Risk Management Plan

Contingency Plans

Reserves

Risks to Accept

Risks to Pursue



Work Arounds

Risk Response ControlRisk Response Control

Corrective ActionRisk Management Plan

Actual Risks


Some Common Risk FactorsSome Common Risk Factors

Project size and/or complexity

External environment influences

Technology (experience, reliability, etc)

Availability of experienced resources

Project sponsorship

Clarity of project direction


During the life of the project, the project manager should strive to reduce the:

– impact, and– probability

of all risks facing the project. Regular (at least monthly) review meetings should re-assess the probability and impact of all risks and the risk management plan should be updated accordingly.

Severe risks should have a robust contingency plan and a comprehensive mitigation strategy, although a ‘wait and see’ policy may be appropriate in some circumstances.

Risk Management Plan Risk Management Plan (continued)(continued)


Rate Risks based on probability x Impact

Risk Probability x Impact = Rating Mitigating ContingencyApproach Plan

a 1 1 = 1

b 3 3 = 9

c 2 3 = 6

Tips:

Avoid probability ratings of 2 (make a decision is it high or low)

Convert low probability risks to assumptions based on mitigating approach

Place mitigating approach to high probability risks into action plans

Escalate risks to steering committee based on severity and/or lack of contingency plan

Risk Management Plan Risk Management Plan (continued(continued))


Planning the ProjectPlanning the ProjectKey Project Manager ActivitiesKey Project Manager Activities

• Review / Establish Project Standards & Procedures; • Develop Project Management Information System• Develop Project Plans



InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses


Executing The ProjectExecuting The Project


• Status Reporting

• Issue Management

• Technical Change Management

• Knowledge Management

• Project Mgrs Responsibilities


PMI® Executing ProcessesPMI® Executing Processes

4.2 Project PlanExecution

4.2 Project PlanExecution



Project Plan ExecutionProject Plan Execution

Work Authorisation to Perform activities in plan

For all issues, complete an issue report, including:

Issue description Project impact Proposed resolution

Develop mitigating approach and contingency plan for risks

Review and approve resolution Assess change Develop team skills / knowledge Communicate for commitment Manage 3rd party relationships Manage Knowledge

Input OutputProcess

Maintained Project Work plan

Work Results

Status

Reports

Change

Requests

Issues

Risks

Changes


Communicate status and expectations to the Programme/ Project Office and therefore Management

Inform team members and other Project Managers

Communicate changes, issues, variances

Facilitate coordination across the programme

Share good news (as well as bad)

Demonstrate that you are in control

Why report project status?

Status ReportingStatus Reporting


Syn

thes

ise

Issues

Progress Achieved

Risks

Activities Planned

Status Report

Make reports comprehensive

Status Reporting (contd)Status Reporting (contd)

Time / Effort


Report Project StatusReport Project StatusGuiding PrinciplesGuiding Principles

Be careful what you ask for -- if you are only concerned with task starts and completions, you will very likely get tasks that start and finish on time… but possibly at the expense of quality.

If you ask for information, use it.

Make sure your reporting periods are realistic.

Be creative in designing your reports.

Make use of exception reporting.


An ISSUE is anything that is CURRENTLY or will SHORTLY affect the progress of a project or its ability to produce its stated deliverables, and about which no agreement has yet been reached.

As the Project Manager you own the issues and must address them early and drive them to resolution

Issue ManagementIssue Management

For example:• Limited availability of resources• Problems with technology• Ambiguous business requirements


Are issues being raised?

Are the issues raised being rated appropriately?

Are issues being assigned to appropriate people for resolution?

Do all accepted issues have a reasonable resolution due date?

Are any resolution due dates about to be missed?

Are there any concerns with implementing the approved resolutions?

Are there any issues you need to raise now before they become a change request?

Issue Management (contd)Issue Management (contd)


Knowledge ManagementKnowledge Management

Knowledge should be centrally managedA repository should be developed for all the information gathered and produced over the life of the programme. Its purpose is to ensure that all information is:

• Readily accessible;• Consistently presented;• Protected from damage or loss;• Coordinated and reused;

• Status Reports• Correspondence• Budgets• Deliverables• Project Plans• Project Charters• Working Papers• Contracts• Timesheets• Expense Records


Knowledge ManagementKnowledge Management

What are we trying to avoid?

• Lost Information• Duplicated Information• Inconsistent Information• Wasted Effort• Lost Time


Manage changes to:

Scope: more; less; different

Time: elapsed; actual effort

Approach: sign-off/consultation; prototype/big bang

Resource: team size; skill set

Cost: budget

Technical Technical Change ManagementChange Management


Technical Technical Change ManagementChange Management

Complete change request form– Description of proposed change

– Benefits of change

– Implications of not making the change

Log change request

Assign change request and due date

Investigate request and determine resolution

Review resolution

Approve resolution

Update budget, scope and work plan

Communicate


Assess ChangeAssess ChangeGuiding PrinciplesGuiding Principles

Shift happens -- the project world is dynamic

Set a tolerance level -- determine the amount of change you can safely accept without formal user approval.

When you exceed your tolerance level, use the formal change request process

Manage expectations as well as scope.


Executing the ProjectExecuting the ProjectKey Project Manager ActivitiesKey Project Manager Activities

Periodically (weekly) assess and report the

following project status:

• Schedule -- planned, current & forecast;

• Budget -- planned, current & forecast;

• Issues -- number, progress & age;

• Risk -- severity, likelihood & strategy;

• Deliverable -- completeness, quality;

• Change Request -- number, progress, impact


Executing the ProjectExecuting the ProjectKey Project Manager ActivitiesKey Project Manager Activities

• Identify variations in agreed project scope

(deliverable, functional, organisational, etc);

• Analyse impact on project schedule, resource

requirements and budget;

• Revise project schedule, budget and resource

plan if change accepted;



InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses


Controlling The ProjectControlling The Project


• Earned Value Management

• Quality Management

• Stage and Gate Process

• Project Managers Responsibilities


PMI® Controlling ProcessesPMI® Controlling Processes

10.3 Performance

Reporting

10.3 Performance

Reporting

4.3 Overall Change Control

4.3 Overall Change Control



Controlling the ProjectControlling the Project

Capture actuals Evaluate actuals versus

plan Manage Change Requests Stage and Gate review Update project scope, as

required Update project work plan

Input OutputProcess

ProjectActuals

PerformanceMeasures

ChangeRequestsMaintained Project Work

plan


Detailed project plan &Project charter

Deliverables &Achievedobjectives

• Is the project progressing on schedule?

• Do actuals support estimates?

• How is the risk profile changing over the life of the project?

• Has contingency been used?

• What issues are hampering progress?

• Are deliverables being produced to the required levels of quality?

• Are changes being identified and how are these being managed?

What are we ControllingWhat are we Controlling??


You only control three dimensions...

Time

CostQuality

Dimensions of ControlDimensions of Control

Scope


Collect and verify project actuals

Compare project actuals against plan

Determine variances

Update plan to reflect actuals

Anticipate future impacts

Progress ManagementProgress Management


Earned Value ManagementEarned Value Management

• Is a control mechanism to allow a contractor and client to monitor progress in terms of – Cost

– Schedule

– Technical Performance

• Normally created and owned by the prime contractor• Traditional project mgmt practice tends to compare actual costs

with planned expenditure and confuses actual costs with actual progress. – EVM provides a third reference point; an objective view of the

status of the contract



• It works by tracking 3 parameters– Planned Value (PV): the budgeted costs of work scheduled

– Actual Costs (AC): the actual cost of work performed (ACWP)

– Earned Vale (EV): the budgeted cost of work performed

• It relies on the Work Breakdown Structure (WBS) establishing all the goods and services to be supplied…the deliverables!

• The WBS should go down to the level that earned value will be reported against (the more levels the more heavier the burden of reporting…3/4 levels should meet the needs of most reasonably complex projects)



• Each deliverable/activity in the WBS can have a value (money/hours) estimated to it

• Value is “earned” by the completion of those deliverables or activities

• Estimate vs actual variances can then be generated• Simple Example Project x

– 3 Stages• 1 deliverables per stage

– 2 activities per deliverable

What is the WBS?



TimeNow

PlannedCompletion

Date

Original estimated project budget

Actual cost o

f work perfo

rmed (A

C)(P

V)

(EV)

Cost Variance

Schedule Variance (Cost)

Schedule Variance (Time)

Budget at completion (BAC)

Forecast Cost Overrun



• Backward looking measures– Cost Performance Index = Earned Value / Actual Cost

• CPI = EV/AC

– Schedule Performance Index = Earned Value / Planned Value• SPI = EV / PV

– Cost Variance = Earned Value - Actual Cost• Cost Variance = EV - AC

– Schedule Variance = Earned Value - Budget• Schedule variance = EV - PV

• Forward Looking Measures– Final Cost = Budgeted Cost / CPI

– Final Project Duration = Planned Project Duration / SPI (time based)


Quality management should not be something which starts ‘at the end’ - when a deliverable has been produced…rather a “stage and gate” approach should be taken over the entire live cycle

Quality ManagementQuality Management

11 22 65 74

Idea BusinessCase

Go/No-Go?

3

ProgPlanning

Go/No Go?

Implement Handover/Launch

Close

Agreed? To Plan? Changes? Review?Go/No Go?

InitialInvest

InitiateInitiate PlanPlan ExecuteExecute ControlControl CloseClose



Prevention

Have quality criteria been defined for each stage/deliverable?

Has the training, coaching and knowledge transfer prepared

team members for their work?

Are the estimates of effort and planned duration sufficient to

produce acceptable quality work?

Have standards and procedures been developed and are they

being followed?


Inspection

Is time being made for the assessment of deliverables against

agreed quality criteria?

Are team reviews working?

Are both the project team and independent quality reviewers

involved in assessment/sign off of deliverables?

Are approvals of deliverables going smoothly?

Have there been any change requests regarding defects in

approved deliverables?

Quality Management (contdQuality Management (contd))


Key Components

Quality Management (contd)Quality Management (contd)

Cross functional review of deliverables by stage (Stage and Gate)

Enforcement of formal standards and procedures

Consistent application of PM processes and techniques

Continuous improvement through training and skills transfer

Provision of appropriately skilled people


• STAGES– Gather information– Multi-functional with parallel

activities– Drive uncertainty down– Where work is done

Stage and GateStage and Gate

•GATES– Decision points for next stage - Go/ No

Go,etc (‘GO’ authorises resources for next Stage)

– Serve as quality & prioritisation control– Are predefined & specify a set of

deliverables

11 22 65 74

Idea BusinessCase

Go/No-Go?

3

ProgPlanning

Go/No Go?

Implement Handover/Launch

Close

Agreed? To Plan? Changes? Review?Go/No Go?

InitialInvest



11 22 65 74

11 22 44 55 66

3

33 77

Stage and Gate (contd)Stage and Gate (contd)


Stage and GateStage and Gate(Functional Buy-In)(Functional Buy-In)

1 2 65 74

Idea Initial Invest.1 2 4 5 6

3

3 7Business

CasePlan

Devel.Risk

Assess.Produce Post Project

Eval.

R & D / MedicalR & D / Medical

Sales & Marketing/ OperationsSales & Marketing/ Operations

Finance / CommercialFinance / Commercial



Control the ProjectControl the ProjectGuiding PrinciplesGuiding Principles

Control the outcomes more than the process.

Recognise the balance between formal and informal control.

Project management software is not a replacement for a full-time project manager.


Controlling the ProjectControlling the ProjectKey Project Manager ActivitiesKey Project Manager Activities

• Monitor & evaluate progress (schedule, budget);

• Make adjustments (schedule, resourcing, activity) necessary to achieve time, cost & quality targets;

• Identify and resolve all project issues


Controlling the ProjectControlling the ProjectKey Project Manager ActivitiesKey Project Manager Activities

• Identify and manage project risks;

• Monitor status and impact of all related projects;

• Co-ordinate allocation of project resource;

• Review & approve quality of all deliverables;



InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses



ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses


Closing The ProjectClosing The Project

At the end of this session you will understand the importance of :-

• Post-Project Evaluation

• Evaluation of Team & Individual Performance

• Project Managers Responsibilities


PMI® Closing ProcessesPMI® Closing Processes

12.6 Contract Close Out

12.6 Contract Close Out

10.4 Administrative

Closure

10.4 Administrative

Closure



Closing the ProjectClosing the Project

Objective Review and Scope Verifications

Procurement Audit Update & Archive documentation Identify lessons learned and define

future improvements Review team members

Input OutputProcess

Contracts

ProjectCharter

ProjectAssessment

IndividualPerformanceAssessment

FutureImprovements

Contract Files

PerformanceMeasures


Conclude the ProjectConclude the ProjectGuiding PrinciplesGuiding Principles

This project management process provides the basis for continuous improvement.

Get some input from outside the project team.

This should not be your first attempt to document project information.

Debrief before parting.


Closing the ProjectClosing the ProjectKey Project Manager ActivitiesKey Project Manager Activities

• Obtain final review and approval of project deliverables;

• Assess performance against project schedule,

and budget;

• Archive project information;

• Compile closure report;


Project Management Framework &Project Management Framework &Organisation – Key ConceptsOrganisation – Key Concepts



Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Role of the SponsorRole of the Sponsor

•The Sponsor is the customer. The one who will pay for the product the project is going to deliver

•Must be visible and lead from the Top• Own the Business Case

• Belief and energy to “Stay the course”• Balance Priorities with Business-As-Usual• Budget Holder

• Commitment to new ways of working• Manage and Influence Stakeholders• Ensure Resources are committed


Planning &Control

Prog Office

Role of the ProRole of the Project ject ManaManagerger.

Business Review

SystemInterface

Leadership

ChangeManagement

TeamBuilding

BenefitsManagement

Financial Well-Being


Functional OrganiFunctional Organissationation

FunctionalManager

ChiefExec.

FunctionalManager

FunctionalManager

• Part-time programme manager

• Direct reporting of team members to functional mgrs

• Project manager has little or no authority

• Virtually none of the team assigned full-time

ProProgrammegramme coordination coordination


Functional OrganisationsFunctional Organisations

Easier management of specialists

Team members report to only one supervisor

Similar resources are centralised, companies are grouped by specialisation

People place more emphasis on their functional speciality to the detriment of project

No career path in project management

Project manager has no authority

Advantages Disadvantages


Matrix OrganizationMatrix Organization

ProjectManager

Project

Manager

Prog.Manager

ProjectManager

ProjectManager

FunctionManager

FunctionManager

FunctionManager

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL


Matrix OrganisationsMatrix Organisations

Highly visible project objectives

Improved project manage control over resources

More support from functional organisations

Better coordination

Better horizontal and vertical dissemination of information than functional

Team members maintain a “home”

Not cost effective because of extra administrative personnel

More than one boss for project teams

More complex to monitor and control

Tougher problems with resource allocation

Need extensive policies and procedures

Functional managers may have different priorities than project managers

Higher potential for conflict and duplication of effort



ProProjectised jectised OrganiOrganissationation

• Full-time project manager

• Direct reporting of team members to PM

• Project manager has high or total authority

• 85-100% of team assigned full-time

Prog.Manager

Prog.Manager

Project coordinationProject coordination


Projectised OrganisationsProjectised Organisations

Efficient project organisation

Loyalty to project

More effective communications that functional

No “home” when project complete

Lack of professionalism in disciplines

Duplication of facilities and job functions

Less efficient use of resources



Organisational Structure Organisational Structure Influences on ProjectsInfluences on Projects

Project Manager’s Authority

% of Performing Organisation’s Personnel

Assigned Full Time to Project Work

Project Manager’s Role

Common Title for Project Manager’s Role

Project Management Administrative Staff

OrganisationType

Part-time

Project Coordinator/

Project Leader

Part-time

Virtually None

Little or None

Functional

Part-time Part-time Full-time Full-time

Part-time Full-time Full-time Full-time

Project Coordinator/

Project Leader

Project Manager/

Project Officer

Project / Program Manager

Project / Program Manager

0-25% 15-60% 50-95% 85-100%

LimitedLow to

ModerateModerate to

HighHigh to Almost

Total

ProjectisedMatrix

Weak MatrixBalanced

MatrixStrong Matrix

ProjectCharacteristics

Source: PMI® Project Management Body of Knowledge


ProProject ject OrganiOrganissationation

• No one “best” structure

• Major considerations are:

– Control

– Responsibility & Accountability

– Integration & Decision Making

– Communication & Visibility

– Priority & Trade-off

– Stakeholder Management


There are Two Life CyclesThere are Two Life Cycles

• Project Management Life Cycle– This describes what you need to do to manage the project

(Initiating, Planning, Executing, Controlling, Closing)

– You are concerned about this life cycle

• Product Life Cycle– The deliverable of a project that will be used by the customer

– The project team is not responsible for the product life cycle


The Triple ConstraintThe Triple Constraint

•The three are so intertwined that a change in one will in most cases lead to a change in at least one of the others

•Management sets the priority of each constraint

Time

CostQuality

Scope


The PMI® defines Stakeholders asThe PMI® defines Stakeholders as

• Project Manager• Customer (the organisation that will use the product at the

end of the project)• Sponsor• Team• End Users• Society• Others e.g. Funders, Owners


The PMI® Project The PMI® Project Management Knowledge Areas – Management Knowledge Areas – Key ConceptsKey Concepts



Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Project Integration ManagementProject Integration Management

During execution…

The Project Team focus on completing tasks

The sponsor and senior management protect the project from changes and loss of resources

The project manager integrates all the pieces of the projects


Project Integration Project Integration ManagementManagement

• Constraints– Factors that limit the teams options– Financial, time, human, technical, other

• Historical Information– Can include tasks, WBS, Reports, Estimates, Plans, lessons

learned, benchmarks, correspondence

• Lessons Learned– Technical aspects– Project Management Life Cycle



• Project Management Methodology– Organisations set of standards, templates for managing

projects

• Project Management Information System– The system set up in advance where the project manager goes

to find all project related information, to know the status of the project etc

• Baseline– The original plan plus any approved changes. Used to

compare actuals with original to monitor variances to budget



• Kick Off Meeting– A communications and coordination meeting of all parties to ensure all are

familiar with the details of the project and who will be responsible for what– Includes team, sponsor, customers, sellers, senior management,

functional managers)

• Work Authorisation System– A formal procedure for sanctioning work

• Change Requests– Formal changes to the project after it has been approved (during

execution) by integrated change control– The project plan is a formal document that needs to be controlled



• Change Control System– A collection of formal documented procedures and supporting

organisation detailing how changes will be managed, approved, and implemented

• Corrective Action– The project manager proactively looks for deviations rather

than just waiting for them to be brought to their attention– Corrective action may involve cause and effect analysis,

changes to schedule, costs, quality and risks



• Scope change control– Measure performance– Replanning– Making changes and adjusting the baseline– Taking corrective action– Documenting lessons learned

• Schedule Control• Cost Control• Quality Control• Performance Measurement• Risk Monitoring



• Managing Changes– Influencing the factors that affect change– Ensuring that change is beneficial– Determining that a change has occurred– Looking for alternatives to change– Minimising the negative impact of change– Notifying stakeholders affected by change– Managing changes as they occur

• Configuration Management– Managing the scope of the project so that the project delivers the

product required by the customer





Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Scope ManagementScope Management

• “Includes the processes required to ensure that the project includes all the work and only the work required to complete the project successfully. It is primarily concerned with controlling what is and what is not in the project”

• Check you are completing all the work• Say no to additional work• Prevent extra work or gold plating



• Project Selection– Murder Board

– Peer Review

– Scoring Models

– Benefit compared to cost• NPV, IRR, Payback, BCA



• Management by Objectives– Establish objectives

– Periodically review

– Take corrective action

• Delphi Technique– Obtain estimates from independent experts anonymously

– Used to reduce bias and build consensus



• Work Breakdown Structure– The foundation of the project. All planning and controlling is based on

the WBS– Defines the scope of the project.– If it is not in the WBS the team should not be working on it

• WBS Dictionary– Created with the team to increase understanding of each task, who is

going to do what, – what they will need, – what they will deliver


The PMI® Project The PMI® Project Management Knowledge Areas –Management Knowledge Areas –Key ConceptsKey Concepts



Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Time ManagementTime Management

• Network Diagram (AON, AOA)– Shows interdependencies of all tasks

– Used for planning the project

– Used for crashing and fast tracking the project



• Activity on Node (AON)– Four types of relationship

• Finish to start• Finish to finish• Start to Start• Start to finish

Activity A Activity B



• Activity on Arrow (AOA)– One type of relationship

• Finish to start

– Can use dummies to show dependencies between tasks

– PERT and CPM can only be drawn on AOA

Activity A



• 3 Types of Dependencies– Mandatory

• No choice e.g. the walls must go up before the roof can go on

– Discretionary• Preferred by stakeholders e.g. like the kitchen done before the

lounge

– External• Legally required e.g. planning permission before you start



• Estimating– Should be done by people doing the work not just by project managers

• Estimating Methods– CPM

• Has one task per estimate• Emphasis on controlling costs and leaving time line flexible• Can only be drawn on AOA• Can have dummies

– PERT• Has 3 estimates per activity

– Optimistic, pessimistic, most likely– Can be used for time and cost– Emphasis on time with flexibility on cost



• CPM – What is the critical path?

Start Finish

A=1

F=1

B=4

P=3

M=3

I=3

D=2

O=2

G=1

N=1

Dummy

C= 2

Q=3

L=6H=2



• PERT– Estimate = (P+4M+O)/6

– Standard Deviation = (P-O)/6

– Variance = [(P-O)/6]2

Task

A

B

C

D

O

3

2

5

7

M

6

3

12

8

P

8

4

20

8

DurationStandardDeviation

Variance



• Crashing– Adding more resources to critical path tasks while maintaining scope

• E.g. move resources from non-critical tasks which have float or adding extra resources

• Fast Tracking– Doing critical path tasks in parallel that were originally planned in series

• Resource Levelling– Plans out time of tasks (and costs) in favour of a stable number of resources

used consistently in full

• Heuristics– Means rule of thumb e.g. we normally allow one day per test



Network Diagram (ADM, PDM)

Estimating

Schedule Development (PERT, CPM, Monte Carlo Simulation)





Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Cost ManagementCost Management

• Cost Estimating– Should be done by the person doing the work

– Should be based on the WBS to improve accuracy

– Historical information is key to improving accuracy



• Cost Estimating– Analogous Estimating

• Top down expert judgement• Quick and cheap to do• Less accurate

– Bottom Up estimating• Estimates based on WBS are rolled up to get a project total• Takes time and more costly to do• More Accurate

– Parametric Testing (Uses a mathematical model e.g.x hours per test)• Regression analysis (Scatter Diagram)• Learning Curve

– The 100th test will be quicker than the 1st



• Progress Reporting– 50/50 Rule

• A task is considered 50% complete when it begins and only gets remaining 50% when task complete

– 20/80 Rule• A task is considered 20% complete when it begins and only gets

remaining 80% when task complete

– 0/100 Rule• A task only gets credit when completed

•



• Is a control mechanism to allow a contractor and client to monitor progress in terms of – Cost

– Schedule

– Technical Performance

• Normally created and owned by the prime contractor• Traditional project mgmt practice tends to compare actual costs

with planned expenditure and confuses actual costs with actual progress. – EVM provides a third reference point; an objective view of the

status of the contract



• It works by tracking 3 parameters– Planned Value (PV): the budgeted costs of work scheduled

– Actual Costs (AC): the actual cost of work performed (ACWP)

– Earned Vale (EV): the budgeted cost of work performed

• It relies on the Work Breakdown Structure (WBS) establishing all the goods and services to be supplied…the deliverables!

• The WBS should go down to the level that earned value will be reported against (the more levels the more heavier the burden of reporting…3/4 levels should meet the needs of most reasonably complex projects)








What is the WBS?



TimeNow

PlannedCompletion

Date

Original estimated project budget

Actual cost o

f work perfo

rmed (A

C)(P

V)

(EV)

Cost Variance

Schedule Variance (Cost)

Schedule Variance (Time)

Budget at completion (BAC)

Forecast Cost Overrun



Acronym Term Meaning

PV Planned ValueWhat is the estimated vale of the work planned to be done?

EV Earned Value What is the estimated vale of the work actually done?

AC Actual Cost What is the actual cost incurred?

BACBudget at

CompletionWhat was the budget for the total job?

EACEstimate at completion

What is now expected to be the total cost of the project?

ETCEstimate to complete

From today, how much more is the project expected to cost?

VACVariance at Completion

How much under or over budget is the project now expected to be?



Acronym Term Meaning

Cost Variance CV EV-ACNegative is over budgetPositive is under budget

Schedule Variance SV EV-PVNegative is behind schedulePositive is ahead of schedule

Cost Performance Index CPI

EV/AC The project is achieving $_ out of every $1spent

Schedule Performance Index SPI

EV/PVThe project is progressing at _% of the rate originally planned

Estimate at Completion EAC

BAC/CPIWhat is now expected to be the total cost of the project?

Estimate to Complete ETC

EAC-ACFrom today, how much more is the project expected to cost?

Variance at Completion VAC

BAC-EACHow much under or over budget is the project now expected to be?








What is the WBS?



• Tips– EV comes at the beginning of every formula

– If it is a “variance” it is EV minus something

– If it is an “index” it is EV divided by something

– If the formula relates to cost use AC

– If the formula relates to schedule us PV

– Negative is bad; positive is good

– Greater than one is good; less than one is bad



PV

AC ETCEAC

BAC

TodayOriginal Plan


Project SelectionProject Selection

Project A Which Project To Pick?

Net Present Value $85,000

Project B

$75,000

IRR 14% 18%

Payback Period 20 Months 25 Months

Benefit Cost Ratio 2.43 1.23


Project Cost ManagementProject Cost Management

• Sunk Costs– A project with a budget of £300,000 is halfway through and has spent

£600,000. Do you consider the £300,000 when deciding to continue?

– Accounting standards require that sunk costs are not considered when deciding whether to continue with a troubled project


Project Cost ManagementProject Cost Management

• Variable Costs– Any cost that varies with the amount of work e.g. team wages,

consultancy fees

• Fixed Cost– Any cost that do not change, e.g. insurance

• Direct Costs– Costs directly attributable to the work on the project

• Indirect Costs– Overhead costs that are shared e.g. HR support





Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management





• Pareto Analysis

• Cause and Effect / Fishbone / Ishikawa Diagram

• Statistical Sampling– Studying the whole population would take too long, cost too

much, be destructive



• Find the following on the charts following– Upper control Limit– Lower Control Limit– The process is out of control– Assignable cause– Normal and expected variation– Rule of Seven– Specification limits– Three Sigma– Six Sigma– Normal Distribution Curve


The PMI® Project The PMI® Project Management Knowledge Areas Management Knowledge Areas Key ConceptsKey Concepts



Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Human Resource ManagementHuman Resource Management

• Responsibility Exercise Handout• Halo Effect

– Thinking someone will be good at everything just because they are very good at one thing

• MCGregor’s Theory X and Y

x x

X Y


Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

SelfActualisation

Esteem

Social

Safety

Physiological

• Growth, learning

• Accomplishment, appreciation

• Love, affection, friends, approval

• Security, stability, freedom

• Food, water, shelter


Sources of ConflictSources of Conflictwithin Projectswithin Projects

Schedules

Competing priorities

Resources

Technical Opinions

Administrative procedures

Cost

Personality

Frequency as cause of conflict

Low

High

Source: PMI Project Management Body of Knowledge


Effectiveness in Project Situations

Low

High

Conflict Resolving TechniquesConflict Resolving Techniques

Confronting (Problem Solving)

Working a shared problem

Smoothing

Emphasizing common ground

Compromising

Bringing some degree of satisfaction to both sides

Withdrawal (avoidance)

Postponing/waiting for better timing

ForcingPush your viewpoint at expense of others


Power TypesPower Types

Expert

Power based on knowledge/skills/experience

Reward

Power based on ability to reward

Formal

Power based on position

Referent

Power based on association with someone in a higher position

Penalty

Power based on ability to penalise

Effectiveness in Project Situations

Low

High


Hertzberg's Motivation TheoryHertzberg's Motivation Theory

Hygiene factors cannot motivate but lack of them will de-motivate

Working conditions, Salary, Personal life, Relationships at work, Security, Status

Motivating agents motivate people

Responsibility, Self Actualisation, Professional Growth, Recognition

Design Jobs with right balanceStretch vs Comfort Zone vs Grunge

“If you want people to do a good job give them a good job to do” (Hertzberg)


The PMI® Project The PMI® Project Management Knowledge AreasManagement Knowledge AreasKey ConceptsKey Concepts



Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Project CommunicationsProject CommunicationsManagementManagement

• Can the project manager control all communications

– No

• Should the project manager try to control communications

– Yes, otherwise rumours and speculations and mis-understanding fill the vacuum

• 90% of a project managers time is spent communicating– Communication is the single most important skill in project

management



• Communication Channels– # Channels = (N2-N)/2

• Where N is the number of people

• How many communication channels are there when there are 5 stakeholders involved in a project?

• How many are there when there 10?



• Communications Planning

– Determining the information needs of the stakeholders

• Communications Management Plan

– What information do you need to send to who, when, how etc

• Information Distribution

– Implementing the communications management plan



• Non-Verbal

– 55% of all communication is non-verbal

• Para lingual

– The pitch and tone of your voice which often conveys your real message

• Active Listening

– Confirming you are listening, paraphrasing back, asking for clarification

• Effective Listening

– Watching the speaker for body language, thinking about what you are going to say before responding, asking questions, providing feedback

• Feedback

– Checking understanding of the message



• Performance Reporting– Reports are communication tools and may include

• Status reports• Progress reports• Trend reports• Variance reports• Earned value reports• Forecasting reports



• Administrative Closure is part of communications– All projects must be closed out

• At end of project• At end of each phase• When contract is terminated

– Administrative Closure includes• Product Verification• Financial closure• Lessons Learned• Update records• Final project performance reporting• Project Archives





Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Project Risk ManagementProject Risk Management

• Is there more risk at the start or the end of a project?

• Risk Management Involves– Risk management planning

– Risk Identification

– Qualitative Risk Analysis

– Quantitative Risk Analysis

– Risk Response Planning



• Step 1 – Risk Management Planning– Formal or informal dependent on perceived risk of project

• Formal risk management plans may include– Methodology

– Roles and Responsibilities

– Budget for risk

– Timing

– Risks thresholds

– Risk Tracking



• Step 2 – Risk Identification– Brainstorming– Delphi Technique– Interviewing stakeholders / experts– SWOT– During team meetings (status meetings)

• Outputs from Risk Identification– Risks– Risk triggers

• what will be the symptom or early warning sign



• Step 3 – Qualitative Risk Analysis– Probability and impact

– Assumption testing• Too many guesses make the data unreliable

– Data Precision Ranking• How reliable is our information

• Output from Risk Analysis– Risk Rating Matrix



• Step 4 – Quantitative Risk Analysis– Expected value

• Which risks warrant a response• Determine overall project risk• Determine cost and schedule reserves



• Step 4 – Quantitative Risk AnalysisDecision Tree

Would you volume test?

Do Volume Test$100,000

Do Not doVolume Test$0

Failure: 30% probability and $140,000 impact

Pass: No impact

Pass: No impact

Failure: 75% probability and $440,000 impact



• Step 4 – Quantitative Risk Analysis– Monte Carlo Simulation

• Evaluates the project not the task• Provides the probability of completing the project on any specific

day for any specific cost• Determines probability of any given task being on the critical path• Can be used to assess cost and schedule impacts



• Step 5 – Risk Response Planning– Assign Owner– Decide risk response strategy

• Avoid– Eliminate cause of risk

• Mitigate– Reduce probability or impact

• Accept– Do nothing and live with consequences if it happens

• Transfer– Insure against





Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management




Procurement ManagementProcurement Management

Step What happens Output

1 Procurement Planning Make or Buy?Do it yourself or outsource. Select Contract Type. Draft scope of work

2 Solicitation Planning RFP created RFP

3 Solicitation Questions and Answers Proposal Created

4 Source Selection Pick One Contract Signed

5 Contract administration Make or Buy? Work completed

1 Procurement Planning Finish Done



• 1 Procurement Planning• Make vs Buy

• Main reason to buy is to reduce risk (cost, performance, scope of work)

• Main reason to make is to utilise own resources, retain control, protect Intellectual Property



• 2 Solicitation Planning– Evaluation Criteria

• Understanding or need• Life cycle cost• Technical ability• Management approach• Project Management ability

• Contract Type Selection• 4 Main Contract Types

– Cost Reimbursable

– Time & Material

– Fixed Price

– Purchase Order



A contract is a formal agreement

All requirements should be specifically stated in the contract

All contract requirements must be met

Changes must be in writing and formally documented



• Contract Types– Cost Reimbursable (risk mostly with the buyer)

• Cost plus fixed fee (CPFF)– Most common form of fixed fee as seller incentivised to control

project as extra work does not result in extra profit

• Cost plus percentage of costs (CPPC)– Illegal in most governments. Why?

• Cost plus incentive/award fee (CPIF/CPAF)



• Contract Types– Time & Material (risk mostly with the buyer)

• Quick to arrange• Suitable for low cost/short term contracts• Simple to administer



• Contract Types– Fixed Price (Risk mostly with the seller)

• Fixed Price Incentive Fee (FPIF)– E.g. Fixed fee plus $X for every month you finish early

• Fixed Price Economic Price Adjustment– E.g. Annual adjustment based on inflation for long term contracts



• Contract Types– Purchase Order

• Unilateral (signed by one party only)• Used for simple commodity items



SituationType of Contract

to Use

You need work to start right away ?

You want to buy expertise in determining what needs to be done ?

You know exactly what needs to be done ?

You are buying the services of a programmer to augment your staff ?

You need work done but you do not have time to audit invoices on this work

?



• 3 Solicitation– Bidders conference

– Qualified sellers list

– Advertising



• 4 Source Selection– Presentations by sellers

– Negotiations with short listed sellers• Main items to negotiate on a contract are

– Responsibilities

– Authority

– Applicable law

– Technical and management approaches

– Contract financing

– Price



• 5 Contract Administration– FP

• Check to make sure work in scope is being done• Watch for overpriced change orders• Check for scope mis-understandings

– T&M• Provide day to day direction• Focus on deliverables and project schedule• Decide if alternative contract type better

– CPFF• Audit sellers costs• Watch for seller adding resources that do not add value or part of

scope



• 6 Contract Closeout (When a contract ends or when terminated before work completed– Product Verification

– Financial closure • make final payments

– Contract performance reporting• Assess effectiveness of contract type chosen

– Contract File• Archive documents

– Procurement Audits• A structured review of the procurement process to capture

lessons learned





Management


Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management


Management


Management


Management


Management

11. ProjectRisk

Management

11. ProjectRisk

Management



Professional ResponsibilityProfessional Responsibility


Professional ResponsibilityProfessional Responsibility

• In a broad sense professional responsibility means– Do the right thing

– Follow the right process

– Act ethically, fairly and professionally

– Watch for conflicts of interest

– Report violations

– Increase knowledge and practice

– Deal with problems

1 © the delos partnership 2003 welcome to the project management foundation course based on the...

Documents

project activities

project managementexpectations

project managements

single project manager

knowledge areaspresentation

application of knowledge

group of projects

course objectivesto