Essentials of Effective Project Management

Instructor : Rick Santos, MBA, PMPEssentials of Effective Project ManagementCenter for Productivity and Quality Improvement3081 Tulare Drive, San Jose, CA 95132(408)923-0404 clm@sbcglobal.net

Session Road Map22Part 1 Foundational Concepts3Learning Objectives

This course is intended to provide essential and effective concepts and processes associatedwith project management4Stakeholder SatisfactionWhat is a Project?Temporary endeavor undertaken to create a unique product, service or resultDeliverable aDeliverable dDeliverable n$$$$$

PrimaryObjectiveTime5Deliverable What & Why6PROJECT OUTPUTS ARE PRESCRIBED BY ITS DELIVERABLES!6Organizational Context of Project Management 7Why Project Management?Project Management (PMBOK Guide): The application of knowledge, skills, tools, and techniques to project activities to meet project requirements

8StakeholdersIndividual and organizations that are actively involved in the project, or whose interest may be affected as a result of the projectWHOUsually exert influence over the projects objectives and outcomesNeed to be identified, needs and expectations determined, managed and influenced to ensure a successful projectWHY9Stakeholder SatisfactionItems required by the stakeholder to successfully contribute to the project (ex.: resources, roles, information, ) What project success looks like to the stakeholder(ex.: Recognition, bonus, enhanced prestige, on-time, product feature, reports)Stakeholder satisfaction largely depends on managing their needs and expectations.101011Nature of Project ManagementWhich is harder?Which is skill more important to project success?Are you managing the project work or the people who are actually doing the project work?

1112Scientific Project Methodology Aspects1213Essence of Tactical Project ManagementProject management processes are for control and monitoring of product deliverables!1314Project Phase and Life CycleAlways keep objective/s for the phase clear1415Linear Project Life Cycle Model (PLCM)16Project Life Cycle ApproachesQ1: Linear ApproachLow complexityWell understood technologyLow riskCompleted similar project

Q2: Adaptive / Iterative ApproachProduct development and process improvementProduction prototype development

Q4: Unlikely Situation

Solution looking for a problemQ3: Extreme ApproachNothing about the project is certainProduct is accepted after some iterations or pulls plugR & DGOALSOLUTION / REQUIREMENTSUnclearClearClearUnclear17Life Cycle Approaches Uncertainty & ComplexityGOALSOLUTION & REQUIREMENTSUNCLEARUNCLEARCLEARExtremeIterative / AdaptiveLinearUNCERTAINTY & COMPLEXITY INCREASESCLEAR18Adaptive / Iterative Life Cycle ModelNext Cycle?19Project Manager Role20PMBOK Guide: Process Groups Knowing what the project is. Knowing where the project is.21Project & Product ProcessesAn inverse relationship exists between project and product process needs.22LPLCM & Project Process Groups Mapping

Knowing what the project is. Knowing where the project is.23Stakeholder Analysis Exercise TemplateStakeholderNeedsExpectationsDeliverablesTeam Work & Presentation

24Part 2 Knowing What The Project Is - Scope252526Project GenesisKnowing WHAT The Project Is27Project Approval (Initiation) ChallengesNo formal project approval (initiation) processUnrealistic expectations and assumptionsTiming of Project Manager engagementDegree of accuracy for project and product documentsSpeed vs Accuracy vs Change Control cultureFunctional Areas Concern: Spending precious resources time on projects that will be disapproved

28Project Approval Monitor & Control AspectsProject documentation intensity / rigor. Factors:DurationCostProject riskPriority / importanceProject classificationSmall, Medium, LargeStandard, Light, TrackingProject definitionProjects or investmentsProject approval processProject classificationStrategy alignmentFunctional groupOthers2829Knowing What the Project Is:Planning FundamentalsFailing to plan is planning to fail. - Harold Kerzner30Knowing What the Project Is:Project PlanningStakeholder ManagementKnowing What the Project Is:Scope Planning StepsObjective: Identify all the work required, and only the work required, to complete the project successfullyStakeholder RegisterProject CharterCollect RequirementsDefine ScopeCreate WBSValidate Scope

Product NeedsProject Mgmt NeedsScope StatementWork Breakdown StructureApproved Scope Documents31What should be the main concern in defining a project initially? Should we be too concerned about the schedule and cost when defining the project scope?Knowing What the Project Is:Project Scope StatementProduct scope descriptionCharacteristic of the product that the project will produceProject life cycle approachDeliverablesList of sub-products whose full and satisfactory delivery marks project completion. Usually includes milestone deliverables. Product acceptance criteriaSuccessful completion metricsProject exclusionsProject assumptions and constraintsSponsor approval3233Knowing What the Project Is:Assumptions, ConstraintsAssumptionsFactors that are considered to be true, real, or certain for planning purposesGenerally involves a degree of riskConstraintsFactors that limit the project teams options34Knowing What the Project Is:The Work Breakdown StructureCollect RequirementsDefine ScopeCreate WBSValidate Scope

35Knowing What the Project Is:DecompositionSubdivision of major project deliverables or sub-deliverables into smaller, more manageable components until the deliverables are defined in sufficient detail to support development of project activities (planning, executing, etc..)Identify major project deliverablesDecide if adequate cost and duration estimate can be made at this level of detail for each deliverableIdentify constituent components of the deliverable if necessaryVerify correctness of decomposition (necessity, definition, cost, duration, responsibility)Definition:Steps:36Knowing What the Project Is:Work Breakdown StructureA deliverable oriented grouping of project components that organizes and defines the total scope of the projectDefines products, not tasksCan be developed using a top-down or bottom-up approachCan be hardware-related, function-related, life cycle-related or a combinationFoundation of all planning!37Knowing What the Project Is:Work PackageLowest level deliverable in a WBSWork effort guideline - 80 to 150 hoursOwnership assigned at this levelTasks are identified under this levelTask size guideline - not to exceed 80 hours; less for high risk project38Knowing What the Project Is:WBS TemplateProject NamePhase 1Phase 2Phase nDeliverable 1Deliverable 2Deliverable N-1Deliverable NProduct ProcessProject Management Process39Knowing What the Project Is: Scope BaselineScope StatementWBSOther Reasons:No attempt made to systemize the planning processPlanning was performed by a planning groupNo one knows the ultimate objectivesNo one knows the major milestone datesProject estimates are best guesses and are not based on any standards, or historyNo one bothered to see if there would be personnel available with the necessary skillsPeople not working towards the same specsConstant shuffle of personnel in and out of the project with little regard for the scheduleChange of management and their objectives.Change(s) in the macro environment40Knowing What the Project Is:Requirements ChallengesMay not be fully known at the start of a projectMay come from multiple sources / groupsMay come at various levels of detailsSome stakeholders may not be known initiallyMay be wants and not needsWants - usually more associated with a solutionNeeds - usually more associated with the underlying problemMay conflict with each other May feed off each otherUsually requires iterations and trade-offs to finalizeMay change41Knowing What the Project Is:Scope Determination SummaryMake sure project stakeholders have all been identifiedFunctional groups that will have a deliverable on the project should be represented on the project teamWBS should represent only the work needed to complete the project successfullyValidate the Scope baseline documents with the project sponsor or approving authorityProcess iteration is the normTeam Work & Presentation (30 minutes)

42Part 2 Knowing What The Project Is Schedule and Cost434344Knowing What the Project Is:Schedule Planning StepsDefine the Tasks Comprising the Work PackageSequence the Tasks or / and DeliverablesEstimate the Tasks or Deliverable ResourceEstimate the Tasks or Deliverable DurationDevelop the Schedule

Objective: Determine the time required to meet the project needs45Knowing What the Project Is:Project ScheduleShould include planned start and finish dates for each deliverable / activity.Tabular form Graphical formBar / Gantt ChartMilestone chartNetwork diagrams46Knowing What the Project Is:Bar (Gantt) Charts

47Knowing What the Project Is:Milestone Chart

48Knowing What the Project Is:Task SequencingDefine the Tasks Comprising the Work PackageSequence the Tasks or / and DeliverablesEstimate the Tasks or Deliverable ResourceEstimate the Tasks or Deliverable DurationDevelop the Schedule

Objective: Identify interdependencies among tasks / deliverablesPrimary Deliverable: Project Schedule Network Diagram49Knowing What the Project Is:Activity DependencyMandatory inherent in the nature of the work being done, a.k.a. hard logicDiscretionary defined by the project team, a.k.a. preferred logic, preferential logic, soft logic External involve relationships between project activities and non-project activities50Knowing What the Project Is:Scheduling TechniquesGantt or bar chartsMilestone chartsNetworks (show interdependencies)Precedence Diagram Method (PDM)Arrow Diagram Method (ADM)51Knowing What the Project Is:Precedence Diagramming MethodMethod of constructing network diagram that uses boxes (nodes) to represent activities and connects them with arrows to show dependenciesa.k.a. Activity On Node (AON)Knowing What the Project Is:Main Precedence RelationshipsEqpt RcvdWall PreparationWallpaperingEqpt InspectedFINISH-TO-STARTSTART-TO-STARTFINISHSTARTSTARTSTART

5253Knowing What the Project Is:Node Activity InformationEARLY START01/06/12TIME DURATION2 WORK-WEEKSEARLY FINISH14/06/12ACTIVITY 4$250,000LATE START15/06/12COST/PROFIT CENTER 2810LATE FINISH28/06/12SLACK54Knowing What the Project Is:Precedence NetworkActivityPreceding ActivityABACADBEC, DFEEarly StartDurationEarly FinishALate StartSlackLate FinishEarly StartDurationEarly FinishBLate StartSlackLate FinishEarly StartDurationEarly FinishDLate StartSlackLate FinishEarly StartDurationEarly FinishELate StartSlackLate FinishEarly StartDurationEarly FinishFLate StartSlackLate FinishEarly StartDurationEarly FinishCLate StartSlackLate Finish55Knowing What the Project Is:Resource EstimatingDefine the Tasks Comprising the Work PackageSequence the Tasks or / and DeliverablesEstimate the Tasks or Deliverable ResourceEstimate the Tasks or Deliverable DurationDevelop the Schedule

Objective: Estimate the type and quantities of materials, people, equipment or supplies required to complete each task or deliverableTask / deliverable resource requirementsPrimary Deliverable: Project Schedule Network Diagram56Knowing What the Project Is:Resource ConsiderationsPeople, material, equipment, suppliesTime / Skill and other trade offsResource requirements including timing57Knowing What the Project Is:Duration EstimatingDefine the Tasks Comprising the Work PackageSequence the Tasks or / and DeliverablesEstimate the Tasks or Deliverables ResourceEstimate the Tasks or Deliverables DurationsDevelop the Schedule

Objective: Determine the work period required to complete the task or deliverable with the estimated resources Primary Deliverable: Project Schedule Network DiagramPrimary Deliverable: Task / deliverable duration estimate58Knowing What the Project Is:Duration Estimating TechniquesExpert judgmentAnalogous estimatingParametric estimatingThree-point estimatingReserve time (contingency)59Knowing What the Project Is:Analogous EstimatingUse actual duration of a previous similar activity as basis to estimate duration of the future activityApproximate (rule of thumb) estimateMade without any detailed engineering dataA.k.a Top-down estimating60Knowing What the Project Is:Parametric EstimatingQuantities to be performed for each work category defined by the engineering/design effort multiplied by the productivity unit rateExample: No. of drawings x no. of hours per drawing61Knowing What the Project Is:Three-Point EstimatingO - Optimistic completion time estimateM Most likely completion time estimateP Pessimistic completion time estimate

Task Duration = (O+4M+P)/662Knowing What the Project Is:Schedule DevelopmentDefine the Tasks Comprising the Work PackageSequence the Tasks or / and DeliverablesEstimate the Tasks or Deliverable ResourceEstimate the Tasks or Deliverable DurationDevelop the Schedule

Objective: Create project schedule based on activity/deliverable sequences, resource and duration estimates, and schedule constraintsPrimary Deliverable: Task / deliverable resource requirementsPrimary Deliverable: Project Schedule Network DiagramPrimary Deliverable: Task / deliverable duration estimatePrimary Deliverable: Project Schedule BaselineSecondary Deliverable: Milestone Schedule63Knowing What the Project Is:Critical Path and FloatCritical PathLongest time span through the total system of activities / eventsDelay in any activity / task in the critical path delays the whole projectImprovement in total project time means reducing time for activities / events in the critical pathSlack Time (Float) - Time differential between the scheduled completion date and the required date to meet critical path. 64Knowing What the Project Is:Critical Path CalculationDetermined by doing forward and backward pass calculations65Knowing What the Project Is:Forward PassThe first predecessor task(s) have an Early Start (ES) of zeroEarly Finish (EF) dates are calculated by adding the task duration (TD) to the earliest date (ES) a task can startThe EF date of the predecessor becomes the ES date for the successorWhen there are multiple predecessors, ES is the larger of the EFs for the task66Knowing What the Project Is:Backward PassLate Start (LS) and Late Finish (LF) dates are calculated starting from the end of the projectLS is calculated by subtracting the TD from the LF of the taskLS for the successor task becomes the LF for the predecessor taskWhen there are multiple successors, LF is the smaller of the LSs67Knowing What the Project Is:Critical Path and FloatTask Float = Late Finish Early FinishThose tasks with zero float are on the critical path68Critical Path Example

6869Knowing What the Project Is:Schedule Development ConsiderationsConstraintsImposed dates on activities (start/finish)Key events / major milestonesLeads and lags: dependency relationship among activitiesSchedule compressionCrashingFast TrackingKnowing What the Project Is:Cost Planning StepsObjective: Identify the funding needed to meet project goals / deliverables.WBSResource PlanProject ScheduleDetermine Budget

Work Package cost estimateProject budget estimateCost BaselineEstimate Cost7071Knowing What the Project Is:Cost Estimating TechniquesExpert judgmentAnalogous estimatingParametric estimatingThree-point estimatingBottom-Up EstimatingReserve Analysis (contingency)72Knowing What the Project Is: Analogous EstimatingUse actual cost of a previous similar project to estimate cost of current projectApproximate (rule of thumb) estimateMade without any detailed engineering dataTop-down estimatingAccuracy +- 15%73Knowing What the Project Is:Parametric ModelingUse project parameter in a mathematical model to predict project costMade without any detailed engineering dataOrder of magnitude estimateMay use past experienceAccuracy +- 35% within the scope of the projectExample: construction cost per square footExamples:Regression Analysis (Scatter diagram)Learning Curve74Knowing What the Project Is:Bottom-Up EstimatingCost estimate of WBS work packages rolled up to a project total Definitive/detailed estimatePrepared from well-defined engineering data, vendor quotes, unit prices, etc. Accuracy +- 5% 75Knowing What the Project Is:Cost BaselineTime-phased budget for measuring, monitoring and controlling overall project cost performance Cumulative AmountTimeQuestion: Should you accept project budget (and schedule) from management without the benefit of cost processes covered?76Knowing What the Project Is:Project Crashing Costs110,000120,000130,000140,000150,000160,000PROGRAM COST, $1012141618202224PROJECT COMPLETION TIME, WEEKSCRASH BCRASH FCRASH ACRASH ENORMAL OPERATIONSALL ACTIVITIES CRASHED77Knowing What the Project Is:Current Costing Practice Shows monthly cash flowIdentifies capitalized vs. operatingTeam Work & Presentation (20 minutes)

78Part 2 Knowing What The Project Is Communication Plan and Risk Management797980Knowing What the Project Is:Project PlanningStakeholder Management81Knowing What the Project Is:Communications Management PlanDistribution structure of the info what info goes to who, via what method, frequencyDescription of info to be provided format, content, level of detail, ownerCollection and filing structure that details methods for gathering and storing various types of infoMethods for accessing info between schedulesMethods for updating and refining communications management plan as the project moves onEscalation processObjective: Meet stakeholder communication needs.8182Knowing What the Project Is:Basic Risk ConceptProject risk is an uncertain event or condition, that if it occurs, has a positive or negative effect on the projectRisk management focuses on:Known unknownsProactive managementRisk management effort should be commensurate with the risk and importance of the projectTolerance for RiskAvoiderNeutralLover8283Knowing What the Project Is:Risk ManagementSystematic process of identifying, analyzing, and responding to project risks.Maximizes probability and consequence of positive events and minimizes probability and consequence of adverse eventsRisk and information are inversely related

8384Knowing What the Project Is:Project Risk Planning StepsPlan Risk ManagementIdentify RiskPerform Quantitative Risk AnalysisPerform Qualitative Risk AnalysisPlan Risk Responses

Objective: Understand project risks and develop options and actions to minimize threats and enhance opportunities to project success

85Knowing What the Project Is:Risk Management PlanningObjective: Determine conduct of risk management activities for the project Plan Risk ManagementIdentify RiskPerform Quantitative Risk AnalysisPerform Qualitative Risk AnalysisPlan Risk Responses

86Knowing What the Project Is:Risk Management Plan MethodologyRoles and ResponsibilitiesBudgetingTimingRisk TypesRisk assessment metric definitionsProbability and impact matrixReporting formatTrackingRisk management structure and performance for the project87Knowing What the Project Is:Risk TypesThe starting point for best practices in risk management is the development of a classification systems for the types of risks. Harold Kerzner88Knowing What the Project Is:Other Risk Types ExamplesBoeingFinancialMarketTechnicalProductionABBContracts and agreementsResponsibility and liabilityFinancialPoliticalWarrantyScheduleTechnicalResourcesSupply and demand chain managementCustomerConsortiaEnvironmental8889Knowing What the Project Is:Risk Assessment Metric ExampleAssessmentProbabilityImpactHigh> 50%Significant disruption of project requirements (schedule, cost, scope) even with close monitoringMedium25% - 50%Potential disruption of project requirements; close monitoring may overcome difficultiesLow< 25%Little potential to disrupt project constraints; normal monitoring should overcome difficulties8990Knowing What the Project Is:Risk IdentificationObjective: Identify project risks Process of determining risks that might affect the project and documenting their characteristicsIterative processOutputsRisks (risk register)TriggersPlan Risk ManagementIdentify RiskPerform Quantitative Risk AnalysisPerform Qualitative Risk AnalysisPlan Risk Responses

91Knowing What the Project Is:Qualitative Risk AnalysisObjective: Rank risks according to the probability of its occurrence and its impact to the project if it occursPlan Risk ManagementIdentify RiskPerform Quantitative Risk AnalysisPerform Qualitative Risk AnalysisPlan Risk Responses

92Knowing What the Project Is:Qualitative Risk Assessment ProbabilityImpactHighMediumLowMediumHighLow9293Knowing What the Project Is:Risk Response PlanObjective: Develop options and actions to minimize threats and enhance opportunities to project success Plan Risk ManagementIdentify RiskPerform Quantitative Risk AnalysisPerform Qualitative Risk AnalysisPlan Risk Responses

94Knowing What the Project Is:Risks Strategies9495Knowing What the Project Is:Risk Response Plan TemplateIDRisk TypeRisk DescriptionRisk TriggerImpacted AreasProbabilityImpactPriorityStrategyOwnerStatusI Impacted Area/s: Enter area of potential impact: Scope, Quality, Schedule, Cost2 Probability: Enter probability of occurrence: Low, Medium, High3 Impact: Enter severity of consequences: Low, Medium, High4 Strategies: Accept, Avoid, Mitigate, Transfer5 Status: Open (O) or Close (C)Team Work & Presentation (20 minutes)

9697Knowing What the Project Is:Balancing the PlanDo your end and milestone dates meet the expectations of the stakeholders?Are resources available to meet project requirements?Does your cost baseline meet the project requirements?Trade-Off AnalysisIterative ProcessTrade-offs between competing objectivesScopeTimeCost98Knowing What the Project Is:Planning Best Practices SummaryDetermine appropriate project life cycle approachUse Scope Statement / WBS to baseline project scopeDevelop a project schedule to baseline project timeDevelop a cost baseline Focus is more on knowing what the project isPartner with line managers to get agreement on scope, time and cost baselinesChange control process should be in place as soon as possibleValidate progressive elaboration outputsPart 3 Knowing Where The Project Is Execution and Control9999Project ExecutionKnowing What the Project Is100101

Knowing Where the Project Is:Why Metrics?To provide goal-centered feedback to detect and correct the courseMeasurements mated with analysis and action! 102Knowing Where the Project Is:Project Performance Data103MetricStatusTrendScheduleGreenGreenCostYellowRedScope / QualityGreenGreenOthersGreenYellowOverall HealthGreenRedKnowing Where the Project Is:Traffic Light ReportingNeed to define what the colors mean!104Knowing Where the Project Is:Sample Metric Status Definition ScopeGreenNo scope change.YellowChange within 10% of original scopeRedChange over 10% of original scope. Need re-baseline.ScheduleGreenOn track for scheduled completionYellowWithin 10% of scheduled completionRedOver 10% scheduled completion. Need re-baseline.CostGreenCompletion within budgetYellowCompletion within 10% of budgetRedCompletion over 10% of budget. Need re-baseline.105Knowing Where the Project Is:Sample Metric Trend DefinitionColorDefinitionGreenLess than 20% probability that a project risk that impacts a parameter target (scope, time, cost) will occurYellow20% to 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur.RedGreater than 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur106Knowing Where the Project Is:Project DashboardProjectMetricStatusTrendProblem StatementCorrective ActionScopeScheduleCostOverall HealthExecutive SummaryResultsNext StepsWorkingChallengesSignificant results for the reporting period. Significant work to be started for the next reporting period. Significant work in progress for the reporting period. Major issues, constraints, etc . 107Knowing Where the Project Is:Simplified Project DashboardProjectStatusTrendSignificant Results for the PeriodSignificant Work To Be Started or In-Progress for the PeriodChallenges and Corrective Actions108Knowing Where the Project Is:Multiple Project ReportingProj IDProject NameProject ManagerMajor IssuesSched StatusTech StatusBudgetSavingsStaffingCust Satis.Sched Comp.OverallDISRUPTED PROJECTSRRYYYYYRRYGYYGGGGYTOP INITIATIVES (TI)GGGGGGGGGGGGGGGGGGINFRASTRUCTURE IMPERATIVESGGGGGGGGGGGGGGGGGG109Knowing Where the Project Is:Project Change ControlObjectiveManage changes to project via an approved change control processDeliverableApproved / rejected change request documentUpdated project and product process deliverables

110Knowing Where the Project Is:Monitor & Control Best PracticesFormalized review process with participation from management on issue resolutionGate reviewStatus reviewCheck-in, stay in-touchMaintain an open environmentTracking intensity proportionate to project importance / priorityPart 4 Closure111111Project ClosureKnowing What the Project Is112The Last WordsProduct / Service Processes113Instructor : Rick Santos, MBA, PMPThank You!Center for Productivity and Quality Improvement3081 Tulare Drive, San Jose, CA 95132(408)923-0404 clm@sbcglobal.net

Sheet1Early Start (ES)Duration (D)Early Finish (EF)Task NameC.P. =A,B,D,E,FLate Start (LS)Slack (S)Late Finish (LF)3477512BD3077012

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