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Initial Project Coordination and the Project Charter
Early meetings are used to decide on participating in the project
Used to “flesh out” the nature of the project
Outcomes include:– Technical scope– Areas of responsibility– Delivery dates or budgets– Risk management group
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Outside Clients
When it is for outside clients, specifications cannot be changed without the client’s permission
Client may place budget constraints on the project
May be competing against other firms
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Project Charter Elements
PurposeObjectivesOverviewSchedulesResourcesPersonnelRisk management plansEvaluation methods
KnowledgeAreas
Project Management Process Groups
Initiating Planning Executing Monitoring & Controlling
Closing
Integration Develop Project Charter
Develop Project Management Plan
Direct & Manage Project Execution
Monitor & Control Project WorkPerform Integrated Change Control
Close Project or Phase
Scope Collect RequirementsDefine ScopeCreate WBS
Verify ScopeControl Scope
Time Define ActivitiesSequence ActivitiesEstimate Activity ResourcesEstimate Activity Durations Develop Schedule
Control Schedule
Cost Estimate CostDetermine Budget
Control Costs
Quality Plan Quality Perform Quality Assurance
Perform Quality Control
HR Develop HR Plan Acquire Project TeamDevelop Project Team
Manage Project Team
Communications
Identify Stakeholders
Plan Communications DistributeInformation
Manage Stakeholder ExpectationsReport Performance
Risk Plan Risk Management Identify RisksPerform Qualitative Risk AnalysisPerform Quantitative Risk AnalysisPlan Risk Responses
Monitor & Control Risks
Procurement Plan Procurements Conduct Procurements
Administer Procurements
Close Procurements
Develop Project CharterDevelop Project Management PlanDirect & Manage Project ExecutionMonitor & Control Project WorkPerform Integrated Change ControlClose Project or Phase
Integration Processes
• What goes into your Project Charter?– Title– Description– Who is the Project Manager? What is their authority?– What is the business need?– What is the justification?– What are the assigned resources?– Who are the stakeholders?– What are the known stakeholder requirements?– What are the deliverables?– What are the constraints?– What are the assumptions?
Project Charter
Where does all this information come from?
Primarily, the sponsor.Who is the sponsor? What is their role?
Project Charter
Inputs Tools & Techniques Outputs
Project Statement of Work
Expert Judgment Project Charter
Business Case
Contract
Enterprise Environmental Factors
Organizational Process Assets
Project Charter
Project Statement of Work– Created by the customer or sponsor– Gives the description of the project scope– Links the project to the strategic plan– Think of it as a high level “contract” between
the sponsor and the Project Manager
Project Charter
Business Case– Market demand– Organizational need– Customer request– Technological advance– Legal requirement– Ecological impact– Social need
Project Charter
Contract– Many projects begin because a contract has
been signed– The contract will give us many details of what
we need to know– If this is the case, then include a copy of the
contract with the Project Charter
Project Charter
Enterprise Environmental Factors– “Company culture and existing systems that
the project will have to deal with or can make use of.”
– Could be positive or negativeCompany organizationStakeholder tolerancesRelevant standards
– Think of as “the baggage”
Project Charter
Enterprise Environmental Factors– Examples:
Company culture Government or industry standards
– Regulations, quality standards, etc Existing HR skills Personnel administration
– Hiring & firing guidelines– Past performance reviews of employees– Union contacts
PM Info Systems– Company ordering and scheduling tools, etc
Project Charter
Organizational Process Assets– Processes, procedures, policies, corporate
knowledge bases and historical informationLessons learnedHistorical recordsTemplates
– Learning the organization has done in the past to help the projects of today
– Best practices
Project Charter
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Starting the Project Plan: The WBS
What is to be doneWhen it is to be started and finishedWho is going to do it
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Starting the Project Plan: The WBS Continued
Some activities must be done sequentially
Some activities may be done simultaneously
Many things must happen when and how they are supposed to happen
Each detail is uncertain and subjected to risk
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Hierarchical Planning
Major tasks are listedEach major task is broken down into
detailThis continues until all the activities to be
completed are listedNeed to know which activities “depend
on” other activities
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The Work Breakdown Structure (WBS)
A hierarchical planning processBreaks tasks down into successively finer
levels of detailContinues until all meaningful tasks or
work packages have been identifiedThese make tracking the work easierNeed separate budget/schedule for each
task or work package
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Steps to Create a WBS
1. List the task breakdown in successive levels
2. Identify data for each work package
3. Review work package information
4. Cost the work packages
5. Schedule the work packages
6. Continually examine actual resource use
7. Continually examine schedule
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Human Resources
Useful to create a table that shows staff needed to execute WBS tasks
One approach is an organizational breakdown structure– Organizational units responsible for each
WBS element– Who must approve changes of scope– Who must be notified of progress
WBS and OBS may not be identical
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The Responsibility (RACI) Matrix
Another approach is the Responsible, Accountable, Consult, Inform (RACI) matrix– Also known as a responsibility matrix, a
linear responsibility chart, an assignment matrix, a responsibility assignment matrix
Shows critical interfacesKeeps track of who must approve what
and who must be notified
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Agile Project Planning and Management
When scope cannot be determined in advance, traditional planning does not work
Agile project management was developed to deal with this problem in IT
Small teams are located at a single site Entire team collaborates Team deals with one requirement at-a-time with
the scope frozen
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Interface Coordination Through Integration Management
Managing a project requires a great deal of coordination
Projects typically draw from many parts of the organization as well as outsiders
All of these must be coordinatedThe RACI matrix helps the project
manager accomplish this
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Managing Projects by Phases and Phase-Gates
Break objectives into shorter term sub-objectives
Project life cycle is used for breaking a project up into component phases
Focus on specific, short-term outputLots of feedback between disciplines
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Risk Management
Projects are risky, uncertainty is highProject manager must manage this riskThis is called “risk management”Risk varies widely between projectsRisk also varies widely between
organizationsRisk management should be built on the
results of prior projects
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Parts to Risk Management
Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control The risk management register
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Risk Management Planning
Need to know the risk involved before selecting a project
Risk management plan must be carried out before the project can be formally selected
At first, focus is on externalities– Track and estimate project survival
Project risks take shape during planning Often handled by project office
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Risk Identification
Risk is dependent on technology and environmental factors
Delphi method is useful for identifying project risks
Other methods include brainstorming, nominal group techniques, checklists, and attribute listing
May also use cause-effect diagrams, flow charts, influence charts, SWOT analysis
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Qualitative Risk Analysis
Purpose is to prioritize risksA sense of the impact is also neededEach objective should be scaled and
weightedConstruct a risk matrixSame approach can be used for
opportunities
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Quantitative Risk Analysis
1. List ways a project can fail2. Evaluate severity3. Estimate likelihood4. Estimate the inability to detect5. Find the risk priority number (RPN)
(RPN = S L D)6. Consider ways to reduce the S, L, and
D for each cause of failure
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Risk Response Planning
Threats– Avoid– Transfer– Mitigate– Accept
Opportunities– Exploit– Share– Enhance– Accept
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Risk Monitoring and Control
Monitoring covered in detail in Chapter 10Control covered in Chapter 11