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Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins University, funded by the Department of Health and Human Services, Office of the National Coordinator for Health Information Technology under Award Number IU24OC000013.

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Page 1: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Introduction to Project Management

Managing Project Time, Cost, and Procurements

Lecture a

This material (Comp19_Unit6a) was developed by Johns Hopkins University, funded by the Department of Health and Human Services, Office of the National Coordinator for Health Information Technology under Award Number IU24OC000013.

Page 2: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Managing Project Time, Cost, and Procurements

Learning Objectives—Lecture a

• Define project management time activities.• Define project cost management activities.• Define project procurement activities.

2Health IT Workforce Curriculum Version 3.0/Spring 2012

Introduction to Project Management Managing Project Time, Cost, and Procurements

Lecture a

Page 3: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Introduction and Overview

5 Process Groups• Initiating • Planning• Executing• Monitoring and controlling• Closing

9 Knowledge Areas

42 Project Management Processes

3Health IT Workforce Curriculum Version 3.0/Spring 2012

Introduction to Project Management Managing Project Time, Cost, and Procurements

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Page 4: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Process Group Sequence

4Health IT Workforce Curriculum Version 3.0/Spring 2012

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Page 5: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Essential Planning Processes

• Collect requirements process• Define scope process • Create WBS process • Define activities process• Developing schedule, determining budget &

making procurement decisions

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Page 6: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Project Activities by Process Group

6Health IT Workforce Curriculum Version 3.0/Spring 2012

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Page 7: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Collect Requirements Process

7Health IT Workforce Curriculum Version 3.0/Spring 2012

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Page 8: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Define the Scope Process

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Page 9: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Create the WBS Process

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Lecture a

Page 10: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Work Breakdown Structure (WBS)

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Introduction to Project Management Managing Project Time, Cost, and Procurements

Lecture a

Page 11: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Work Breakdown Structure(WBS)

Health IT Workforce Curriculum Version 3.0/Spring 2012

Introduction to Project Management Managing Project Time, Cost, and Procurements

Lecture a

Page 12: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Define Activities Process

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Page 13: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Developing Schedule, Determining Budget, and Making

Procurement Decisions

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Page 14: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Schedule and Cost Constraints

Early in the project it is important for the project team to work with the key stakeholders to identify project constraints related to scope, time, cost, and other items (technical, legal, etc).

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Page 15: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Exercise

1. List project constraints inherent in your organization.

2. List unique constraints you have encountered on individual projects.

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Page 16: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Project Constraints

PROJECT MANAGER

Manages the Project Constraints

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Page 17: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Triple Constraint: Basic Foundation

of Project ManagementCompeting demands on projects:

1. Scope

2. Time

3. Cost

Consider all constraints equal unless otherwise stated

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Page 18: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Strategies to Manage Schedule and Cost Constraints

Questions to ask:•Importance of each constraint?•Is possible to prioritize the constraints (rank order)? •What is the flexibility of a constraint?•Can the deadline or budget be negotiated?•What is the customers’ risk tolerance?

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Page 19: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Time Management Process Sequence

• Define activities• Sequence activities• Estimate activity resources• Estimate activity durations• Develop a schedule• Control schedule

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Page 20: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Time Management Processes and Outputs

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Page 21: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Developing a Project Schedule

• Activities are sequenced (predecessors and successors are determined)

• Activity paths are determined • Duration of each path is calculated• Critical path is identified (longest path &

determines the soonest the project will complete)

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Page 22: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Managing Project Time, Cost, and Procurements

Summary—Lecture a• Work Breakdown Structure

– Work packages to list of activities• Project time and cost management activities

– Define, sequence, and estimate activities– Develop schedule – Develop budget– Control budget

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Page 23: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Managing Project Time, Cost, and Procurements

References—Lecture aReferences• Fleming Q, Koppelman J. (2006) Earned Value Project Management. 3rd ed. Newtown Square, Pennsylvania:

Project Management Institute (PMI). •  Fleming Q. (2003) Project procurement management: contracting, subcontracting, teaming. 1st ed. FMC Press;

2003. •  Houston S, Bove LA. (2010) Project Management for Healthcare Informatics. New York: Springer Science +

Business Media, LLC. • Kerzner H. (2009) Project Management: a Systems Approach to Planning, Scheduling, and Controlling . 10th ed.

Hoboken, NJ.:Wiley.   •  Project Management Institute, A Guide to the Project Management Body of Knowledge. 4th ed (2008).Newtown

Square, PA: PMI.• Scwalbe K. (2009) Information technology project management (with Microsoft Project 2007 CD-ROM). 6th ed.;

Boston: Cenage Learning. • Stackpole C. (2009). A Project Manager’s Book of Forms: A Companion to the PMBOK Guide. Hoboken,

N.J.:Wiley; • Wysocki, RK . (2009) Effective project management: traditional, agile, extreme. 5th Edition. New York: Wiley;

2009.

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Page 24: Introduction to Project Management Managing Project Time, Cost, and Procurements Lecture a This material (Comp19_Unit6a) was developed by Johns Hopkins

Managing Project Time, Cost, and Procurements

References—Lecture aCharts, Tables, Figures• Table 6.1. Project Activities by Process Groups. Courtesy of Theron Feist.• Table 6.2 Time Management Outputs and Processes. Courtesy of Theron Feist .

Images• Slide 4: Process Group Sequence. Courtesy of Theron Feist.• Slide 7: Collect Process Requirements. Courtesy of Theron Feist.• Slide 8: Define the Scope Process. Courtesy of Theron Feist.• Slide 9: Create the WBS Process. Courtesy of Theron Feist.• Slide 10: Work Breakdown Structure (WBS). Courtesy of Theron Feist.• Slide 11: Work Breakdown Structure. Courtesy of Theron Feist.• Slide 12: Define Activities Process. Courtesy of Theron Feist.• Slide 13: Developing Schedule. Courtesy of Theron Feist.• Slide 16: Henri Gannt. Creative commons: Wikipedia. Available from:

http://en.wikipedia.org/wiki/File:Henri_Gannt.jpg

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Lecture a