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Project Management - Project Bailout - www.ProjectBailout.com 1
Principles of Project Management
How to help make your projects more successful
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Why Project Management?
Learn from lessons, success, and mistakes of others
Better understanding of financial, physical, and human resources
Successful Project Management Contributes to Improved customer relations Shorter development times Lower costs Higher quality and increased reliability Improved productivity
Project Management Generally Provides Better internal coordination Higher worker morale
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Why Projects Fail
Communications Misunderstandings Not Talking, Emailing etc.
Scope Creep Poor planning Weak business case Lack of management direction
& involvement Lack of Resources Talking and Not Building
Incomplete specifications Excessive Specifications
Mismanagement of expectations
$
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Project Management Benefits for the Individual
Develops leaders in organization with a detailed understanding of multiple areas of the organization
Cross departmental communication and networking
Benefits not limited to just the Project
Manager, Team members get same exposure
Attention from executive management team
Reputation of being a team player, problem solver, and a get things done person
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Organization Lectures
Presentations Book Chapters
And Discussions!
Sample Projects Plan, Schedule and Allocate Resources Review
Practice Tests Joint Attempt At Questions http://www.yancy.org/research/project_management.html
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Lectures1 - Introduction to Project Management2 - Project Management Context2’- Project Management for Dummies - Summary3 - Project Management Integration4 - Project Scope Management5 - Project Time Management6 - Project Cost Management7 - Project Quality Management8 - Project Human Resource Management9 - Project Communications Management10 - Project Risk Management11 - Project Procurement Management12 - Project Management as a Profession
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Sources – Use the Web Project Management Institute: www.pmi.org Project World: www.projectworld.com Software Program Managers Network:
www.spmn.com PM forum: www.allpm.com ESI International: www.esi-intl.com Project Bailout – www.ProjectBailout.com “Project Management for Dummies” “Project Planning Scheduling & Control,” James
P. Lewis A Hands-on Guide to Bringing Projects in on time and
On Budget
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Why are you here? Who are you
What is your background? Why
What do you want to learn? How much effort?
Me Jim Bullough-Latsch, [email protected] 20 years managing projects, 818-993-3722 All material will be provided on a CD!
Sign In, Email Addresses etc. Exchange Business Cards
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Mapping Lectures and Lewis Book
1. Introduction to Project Management• Chapter 1 – Introduction to PM
2. Project Management Context• Chapter 5 – Headless Chicken
3. Project Management Integration• Chapter 6 – Project Strategy• Chapter 7 – Implementation Plan
4. Project Scope Management• Chapter 9 – Scheduling
5. Project Time Management6. Project Cost Management7. Project Quality Management8. Project Human Resource Management9. Project Communications Management10. Project Risk Management
• Chapter 811. Project Procurement Management12. Project Management as a Profession
• Chapter 3
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CHAPTER 1
Introduction to Project Management
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PM is used in all industries, at all levels
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Why Project Management?
Better control of financial, physical, and human resources
Accountability Learn from mistakes of others!
Improved customer relations More Managed Outcomes
Lower costs Higher quality and increased reliability Higher profit margins Improved productivity Better internal coordination Higher worker morale
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Why Projects Fail
Poor communications Scope Creep Poor planning Weak business case Lack of management direction &
involvement Incomplete specifications Mismanagement of expectations
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Project versus Program
What is a project? Temporary and unique Definite beginning and end Unique purpose Require resources, often from various areas involve
uncertaintyNote: temporary does not mean short in duration
What is a program? A group of projects managed in a coordinated way to
obtain benefits not available to managing them individually
Long Term for: a collection of projects
Same Techniques Work for Projects, Products, & Programs! Use them where they work!
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Triple Constraints Theory
Every project is constrained in different ways by its
Scope goals: What is the project trying to accomplish?
Time goals: How long should it take to complete?
Cost goals: What should it cost?
It is the project manager’s duty to balance these three often competing goals
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Project Stakeholders
Stakeholders are the people involved in or affected by project activities
Stakeholders include the project sponsor and project team support staff customers users Suppliers and vendors opponents to the project
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PM Knowledge Areas
Knowledge areas describe the key competencies that project managers must develop
core knowledge areas lead to specific project objectives (scope, time, cost, and quality)
facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management
knowledge area (project integration management) affects and is affected by all of the other knowledge areas
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PM Tools & Techniques
Project management tools and techniques assist project managers and their teams in various aspects of project management #1 communicating with people!!
Some specific ones include Project Charter and Work Breakdown Structure
(WBS) (scope) Gantt charts, network diagrams, critical path
analysis, critical chain scheduling (time) Cost estimates and earned value management
(cost)
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Sample GANTT Chart
ID Task Name
1 Capture Existing
2 Structure
3 Company
4 Case Management
5 P Matters
6 Ramesh
7 User
8 Naming
9 Clean Up
10 Name
11 Normalize
Week -1 Week 1 Week 2 Week 3
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Points From Lewis Chapter 1 A project is a one-time job, as opposed to a repetitive
activity Disagree, can make repetitive into a series of projects
Project management is facilitation of the planning, scheduling, and controlling of all activities that must be done to meet project objectives.
??????????? Principle: Can assign values to only three of the PCTS
constraints Performance, Cost, Time, Scope Disagree - There are relationship, but it is not magic
Principle: To reduce both cost and time in a project, must change the process by which you do work.
Maybe “Understand” and control is better than change
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Lewis Principles Chapter 1
Principle: Improving quality reduces costs. Partially Agree Controlling quality contributes to controlling cost Bugs / Errors Cost Money Formal QA Organizations can be negative
Good Project Management includes tools, people, and systems
Tools are not very important! The people who must do the work should develop the
plan Disagree – The people who do the work should contribute to
the plan, but some project management is needed to focus the effort.
The Thought process can be applied to any project regardless o type or size
Agree
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“Lewis Method” Five Phases
1. Definition2. Planning Strategy3. Implementation Planning4. Execution and Control5. Lessons Learned
I have only worked at one company that practiced this, TRW called it a debriefing or post mortem
Usually everyone is gone prior to the completion!
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Projects for Homework Sample Project Plan, Schedule, and Presentation
Develop a brief project plan and top-level schedule (MS Project is preferred).
Effort at Each Session Discuss Concepts Assign Teams, Choose Subject, Divide work
You can do home work to make it better Plan and Document Schedule Coordinate
Keep it simple Present for Review
Criticize Others Update
Project Can Be Anything
Suggested Projects - Defaults
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CHAPTER 2
Project Management Context
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Projects are not Isolated
Projects must operate in a broad organizational environment
Project managers need to take a holistic or systems view of a project and understand how it is situated within the larger organization
Systems View to Project Management Systems philosophy: View things as systems,
interacting components working within an environment to fulfill some purpose
Systems analysis: problem-solving approach Systems management: Address business,
technological, and organizational issues before making changes to systems
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Project Phases
Projects are divided up into phases, collectively project phases are known as the project lifecycle
The Phases often overlap!!! Project phases are marked by completion of one or
more deliverables Deliverable is a tangible, verifiable work product
Questions at the end of each phase (known as phase exits, kill points, or stage gates)
Determine if the project should continue Detect and correct errors cost effectively
Deliverables from the preceding phase are usually approved before work exceeds 20% of the next phase’s budget
IE Overlapping work is done at cost risk to meet schedule FAST TRACKING: projects that have overlapping phases
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Project Lifecycle
Most project lifecycles have common characteristics Phases: Concept, Development, Implementation, Support Cost and staffing levels are low to start and higher toward the end
and drop rapidly as the project draws to conclusion Stakeholders have more influence in the early phases of the
project Cost of changes and error correction often increases as the project
continues Some changes can be deferred until after delivery
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Phases of the Project Life Cycle
Phase
Deliverables
Concept Development Implementation Close-Out
Planning Management Plan Project Plan Work Package Completed Work
Financial Preliminary Cost Estimate
Budgetary Cost Estimate
Costs and Over Runs Lessons Learned
Reporting / Decomposition
3-level WBS 6+ level WBS Performance Reports Customer Acceptance
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Project Life Cycle
Determination of Mission Need—ends with Concept Studies Approval
Concept Exploration and Definition—ends with Concept Demonstration Approval
Demonstration and Validation –ends with Development Approval
Engineering and Manufacturing –ends with Production Approval
Production and Deployment –overlaps with Operations and Support
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Systems Development Life Cycles
•Waterfall model: has well-defined, linear stages of systems development and support•Spiral model: shows that software is developed using an iterative or spiral approach rather than a linear approach•Incremental release model: provides for progressive development of operational software•RAD model: used to produce systems quickly without sacrificing quality•Prototyping model: used for developing prototypes to clarify user requirements
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RequirementsProcess
SystemAllocationProcess
ProjectInitiationProcess
ConceptExploration
Process
DesignProcess
ImplementationProcess
InstallationProcess
Operation &Support Process
Verification& Validation
Process
The Waterfall Model of the Software Life
Cycle
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Determine objectiv es,alternatives, & constr aints
Evaluate alter natives,identify & resolv e r isks
Develop & ver ifynext level productPlan next phase
Requirements
Development
Integration
plan
plan
plan
Requirements
Design
validation
validation
SoftwareSystem
Product
Riskanalysis
Riskanalysis
Prototype1Prototype2
Prototype3
Riskanalysis
Concept ofoperation
RequirementsDesign
Code
Unit Test
Integration & TestAcceptance
DetailedDesign
P1
P2
Test
Spiral
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Fast Tracking / Overlap of Processes
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Extreme Programming- Focuses on customer driven changes
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Organizational Structures
TOP?
Bottom
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Critical Success Factors
Critical Success Factors According to the Standish Group’s report CHAOS 2001: A Recipe for Success, the following items help IT projects succeed, in order of importance:
Executive support User involvement Experience project manager Clear business objectives Minimized scope Standard software infrastructure Firm basic requirements Formal methodology Reliable estimates
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Headless Chicken (Lewis)
Software Projects – 1990s 17% Succeeded 33% Failed 50% Revised
Headless Chick is about a bird dying Body keeps moving after head is cut
off!
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More on The Lewis Method
Projects often fail at the beginning, not at the end. Agree
The false consensus effect is a failure to manage disagreement, because no knows it exists. Not that important …. I think this is also the blind leading the blind
Process will always affect task performance. Agree
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Lewis … Write the Mission Statement
Write something would be better The first objective for a project manager
is to achieve a shared understanding of the team’s mission. Disagree, it is important, but $ and
convincing yourself are more important The way a problem is defined
determines how we attempt to solve it. ???
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Lewis and Strategy Strategy is an overall approach to a
project. Game plan
It is best not to employ cutting-edge technology in a project that has very tight deadline. It is usually best to use proven technology.
(period!) It is best to separate discovery from
development. Agree
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Project Management For Dummies – Chapter 2’
Project Management For Dummies
By Stanley E. Portny
ISBN: 0-7645-5283-XFormat: Paper
Pages: 384 PagesPub. Date: October 2000
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PART I: Defining Your Project and Developing Your Game Plan.
Chapter 1: What Is Project Management? (And Do I Get Paid Extra to Do It?). Chapter 2: Defining What You're Trying to Accomplish — and Why. Chapter 3: Getting from Here to There. Chapter 4: You Want This Done When? Chapter 5: Estimating Resource Requirements.
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PART II: Organizing the Troops.
Chapter 6: The Who and the How of Project Management.
Chapter 7: Involving the Right People in Your Project.
Chapter 8: Defining Team Members' Roles and Responsibilities.
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PART III: Steering the Ship.
Chapter 9: Starting Off on the Right Foot. Chapter 10: Tracking Progress and
Maintaining Control. Chapter 11: Keeping Everyone Informed. Chapter 12: Encouraging Peak
Performance. Chapter 13: Bringing Your Project to a
Close.
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PART IV: Getting Better and Better.
Chapter 14: Dealing with Risk and Uncertainty.
Chapter 15: Using the Experience You've Gained.
Chapter 16: With All the Great New Technology, What's Left for You to Do?
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PART V: The Part of Tens.
Chapter 17: Ten Questions to Help You Plan Your Project.
Chapter 18: Ten Ways to Hold People Accountable.
Chapter 19: Ten Steps to Getting Your Project Back on Track.
Chapter 20: Ten Tips for Being a Better Project Manager.
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Chapter 17: Ten Questions to Help You Plan Your Project.
Why is your project being Done?Who will you need to Involve?What results will you ProduceWhat Constraints Must you Satisfy?What assumptions are you MakingWhat work must be done?When will you start and end each activity?Who’ll perform the project Work?What other Resources will you need?What could go wrong?
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Chapter 18: Ten Ways to Hold People Accountable.
Involve People who really have authorityBe SpecificGet a CommitmentPut it in writing.Emphasize the Urgency and Importance of the
assignmentTell others about the person’s commitmentAgree on a plan for monitoring the person’s work.Monitor the persons work.Always Acknowledge Good PerformanceAct as if you have the authority
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Chapter 19: Ten Steps to Getting Your Project Back on Track.
Determine why project got off trackReaffirm key driversReaffirm Project ObjectivesReaffirm activities remaining to be done.Reaffirm Roles and ResponsibilitiesDevelop a viable scheduleReaffirm Personnel assignmentsDevelop a Risk-Management PlanHold a midcourse Kick-off SessionClosely Monitor Performance
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Chapter 20: Ten Tips for Being a Better Project Manager
Be a “why” personBe a “Can Do” personDon’t AssumeSay what you mean; Mean what you sayView people as allies, not adversariesRespect other peopleThink “big Picture”Think DetailAcknowledge good performanceBe both a manager and a leader
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Rest
Appendix A: Glossary Appendix B: Earned Value Analysis. Index.
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CHAPTER 3
Project Management Integration
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Planning and Control Project Plan Development: taking the results of
other planning processes and putting them into a consistent, coherent document—the project plan
Project Plan Execution: carrying out the project plan
Integrated Change Control: coordinating changes across the entire project
Influence the factors that create changes to ensure they are beneficial
Determine that a change has occurred Manage actual changes when and as they occur
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Project Plan Development
A project plan is a document used to coordinate all project planning documents
Its main purpose is to guide project execution Also helps the Project Management to Express
their vision Project plans assist the project manager
in leading the project team and assessing project status
Project performance should be measured against a baseline project plan
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What is a Project Plan?
Common misunderstanding: Project Schedule
Introduction or overview of the project Description of how the project is
organized Management and technical processes
used on the project Work to be done, schedule, and budget
information
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Chapter 17: Ten Questions to Help You Plan Your Project.
Why is your project being Done?Who will you need to Involve?What results will you ProduceWhat Constraints Must you Satisfy?What assumptions are you MakingWhat work must be done?When will you start and end each activity?Who’ll perform the project Work?What other Resources will you need?What could go wrong? (Project Management for Dummies)
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1. Information Security - IntroductionWhy an Information Security Audit?Referenced Documents and Web SitesCustomer Support to AuditAudit Results
2. Tasks and Sub TasksPreparationTechnical ReviewEnd User SampleDiscussion with Responsible ManagementFinal report (Hardcopy, Executive Briefing, 2 CDs, Destroy Working Notes)
3. Project ControlsConfidentialityNeed-to-knowCertificationSecure Storage of ResultsProgress reportingSecurityQuality Assurance
Sample Project Plan – Security Audits
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More on Project Plan
First Page needs to Sell the Project!
Plan addresses what, how, which organizations, order of magnitude; but generally does not whom, when,
and exact $
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Stakeholder Analysis
A stakeholder analysis documents important (often sensitive) information about stakeholders such as stakeholders’ names and organizations roles on the project unique facts about stakeholders level of influence and interest in the project suggestions for managing relationships Budget and Other Money!
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Project Plan Execution
Project plan execution involves managing performing the work described in the project plan
Work Authorization System: a method ensuring that qualified people do work at right time and in the proper sequence
Common in Aerospace Status Review Meetings: regularly
scheduled meetings used to exchange project information
Project Management Software: special software to assist in managing projects
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Integrated Change Control
Integrated change controlinvolves identifying, evaluating, and managing changes throughout the project life cycle Three main objectives of changecontrol:– Influence the factors that create changes to ensure they are beneficial– Determine that a change has occurred– Manage actual changes when and as they occur
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Establish Change Control System
A formal, documented process that describes when and how official project documents and work may be changed
Describes who is authorized to make changes and how to make them
Often includes a change control board (CCB), configuration management, and a process for communicating changes
A formal group of people responsible for approving or rejecting changes on a project
Provides guidelines for preparing change requests, evaluates them, and manages the implementation of approved changes
Includes stakeholders from the entire organization
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Lewis – Developing an Implementation Plan The more important a project deadline,
the more important the plan becomes. “Planning” versus Plan versus Work
Never plan in more detail than control. Agree
To ignore probable risk is not a “can-do” attitude but a fool hardy approach to project management. Yes/No – Need to present positive face to
extent feasible
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More Lewis Points Chapter 7 You don’t worry about the sequence of
tasks while constructing the WBS. Agree
A work breakdown structure does not show the sequence in which work is performed!
A WBS is a list activities. Parkinson’s Law: Work will expand to
take the time allowed
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What is Scope Management?
Scope refers to all the work involved in creating the products of the project and processes used to create them
Project scope management includes the processes involved in defining and controlling what is or is not included in the project
The project team and stakeholders must have the same understanding of what products be produces as a result of a project and what processes will be used in producing them
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Defining Scope – The Process
Initiation: beginning a project or continuing to the next phase
Scope planning: developing documents to provide the basis for future project decisions
Scope definition: subdividing the major project deliverables into smaller, more manageable components
Scope verification: formalizing acceptance of the project scope
Scope change control: controlling changes to project scope
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Project & Organization Alignment - 2
Stages / Results Ties technology
strategy to mission and vision
Key Business Processes
Scope, Benefits, constraints
Allocates People and $
Strategy
Business Area
Analysis
Project Planning
Resource Allocation
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Project Financial Analysis
Financial considerations are often an important consideration in selecting projects
Three primary methods for determining the
projected financial value of projects: Net present value (NPV) analysis Return on investment (ROI) Payback analysis
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Net Present Value (NPV)
Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time
Projects with a positive NPV should be considered if financial value is a key criterion
The higher the NPV, the better
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Return on Investment
Return on investment (ROI) is income divided by investment ROI = (total discounted benefits - total discounted costs) / discounted costs The higher the realized ROI, the better Too Often, it is hyped
Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects
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Payback Analysis
The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project
Payback occurs when the cumulative discounted benefits and costs are greater than zero
Many organizations want projects to have a fairly short payback period
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Project Selection Tool: Weighted Scoring
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Project Charter
After deciding what project to work on, it is important to formalize projects
A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management
Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project
Defines project’s purpose, products, scope, objectives, constraints, assumptions, risks, organization, reporting structure, priority and completion criteria
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Sample Project CharterProject Title: Information Technology (IT) Upgrade ProjectProject Start Date: March 4, 200 Projected Finish Date: December 4, 2002Project Manager: Kim Nguyen, 691-2784, [email protected] Objectives: Upgrade hardware and software for all employees (approximately 2,000) within 9 months based on new corporate standards. See attached sheet describing the new standards. Upgrades may affect servers and midrange computers as well as network hardware and software. Budgeted $1,000,000 for hardware and software costs and $500,000 for labor costs.Approach:• Update the IT inventory database to determine upgrade needs• Develop detailed cost estimate for project and report to CIO• Issue a request for quotes to obtain hardware and software• Use internal staff as much as possible to do the planning, analysis, and installation
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MoreName Role ResponsibilityWalter Schmidt, CEO Project Sponsor Monitor projectMike Zwack CIO Monitor project, provide staffKim Nguyen Project Manager Plan and execute projectJeff Johnson Director of IT Operations MentorNancy Reynolds VP, Human Resources Provide staff, issue memoto all employees about projectSteve McCann Director of Purchasing Assist in purchasing hardware and softwareSign-off: (Signatures of all above stakeholders)Comments: (Handwritten comments from above stakeholders, if applicable)This project must be done within ten months at the absolute latest. Mike Zwack, CIOWe are assuming that adequate staff will be available and committed to supporting thisproject. Some work must be done after hours to avoid work disruptions, and overtimewill be provided. Jeff Johnson and Kim Nguyen, Information Technology Department
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Scope Statement & Planning
A scope statement is a document used to develop and confirm a common understanding of the project.
a project justification a brief description of the project’s products a summary of all project deliverables a statement of what determines project success helps improve the accuracy of time, cost, and
resource estimates defines a baseline for performance
measurement and project control aids in communicating clear work
responsibilities
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Work Breakdown Structure (WBS)
After completing scope planning, the next step is to further define the work by breaking it into manageable pieces
A work breakdown structure (WBS) is an outcome-oriented analysis of the work involved in a project that defines the total scope of the project
It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes
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Approaches to developing WBS
1. A unit of work should appear at only one place in the WBS.2. The work content of a WBS item is the sum of the WBS items
below it.3. A WBS item is the responsibility of only one individual, even
though many people may be working on it.4. The WBS must be consistent with the way in which work is
actually going to be performed; it should serve the project team first and other purposes only if practical.
5. Project team members should be involved in developing the WBS to ensure consistency and buy-in.
6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item.
7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement.
*Cleland, David I. Project Management: Strategic Design and Implementation, 1994
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Sample WBS: tabular form
1.0 Concept1.1 Evaluate current systems1.2 Define Requirements1.2.1 Define user requirements1.2.2 Define content requirements1.2.3 Define system requirements1.2.4 Define server owner requirements1.3 Define specific functionality1.4 Define risks and risk management approach1.5 Develop project plan1.6 Brief web development team2.0 Web Site Design3.0 Web Site Development4.0 Roll Out5.0 Support
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WBS and GANTT in Project 2000
ID Task Name
1 Start
2 Understand System
3 Collect Existing
4 New Features
5 Feature List
6 Software Requirements
7 Baseline
8 New
9 Version 1.1
10 Review rework
11 Bugs & Problem
12 Web Tool
13 Add
14
11/14
12/24
Nov 9, '03 Nov 16, '03 Nov 23, '03 Nov 30, '03 Dec 7, '03 Dec 14, '03 Dec 21, '03 Dec 28, '03 Jan 4, '04
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Developing a project schedule
Project schedules grow out of the WBS Activity definition
developing a more detailed WBS to complete all the work to be done
Activity sequencing Involves reviewing activities and determining
dependencies Mandatory dependencies: inherent in the nature of the
work; hard logic Discretionary dependencies: defined by the project
team; soft logic External dependencies: involve relationships between
project and non-project activities You must determine dependencies in order to use
critical path analysis
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Project Network Diagrams
Project network diagram is one technique to show activity sequencing, relationships among activities, including dependencies. Sample Activity-on-Arrow (AOA) Network
Diagram Also called activity-on-arrow
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Project Network DiagramCollect Existing
Start: 11/17/03 ID: 3
Fin ish: 11/18/03 Dur: 2 days
Res:
New Features
Start: 11/19/03 ID: 4
Fin ish: 11/20/03 Dur: 2 days
Res:
Feature List
Start: 11/21/03 ID: 5
Fin ish: 11/21/03 Dur: 1 day?
Res:
Software Requirements
Start: 11/24/03 ID: 6
Fin ish: 1/5/04 Dur: 31 days
Comp: 0%
Baseline
Start: 11/24/03 ID: 7
Fin ish: 12/1/03 Dur: 6 days
Res:
New
Start: 12/2/03 ID: 8
Fin ish: 12/24/03 Dur: 17 days
Res:
Bugs & Problem
Start: 11/24/03 ID: 11
Fin ish: 12/30/03 Dur: 27 days
Comp: 0%
Web Tool
Start: 11/24/03 ID: 12
Fin ish: 11/25/03 Dur: 2 days
Res:
Add
Start: 11/26/03 ID: 13
Fin ish: 11/28/03 Dur: 3 days
Res:
Start: 11/25/03 ID: 14
Fin ish: 12/30/03 Dur: 26 days
Comp: 0%
Understand System
Start: 11/17/03 ID: 2
Fin ish: 11/21/03 Dur: 5 days?
Comp: 0%
Start
Milestone Date: Fri 11/14/03
ID: 1
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Precedence Diagramming Method (PDM)
Activities are represented by boxes Arrows show relationships between
activities Used by most PM software
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Sample PDM
ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
11/14
12/24
Nov 2, '03 Nov 9, '03 Nov 16, '03 Nov 23, '03 Nov 30, '03 Dec 7, '03 Dec 14, '03 Dec 21, '03 Dec 28, '03 Jan 4, '04 Jan 11, '04
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Activity Duration Estimating
After defining activities and determining their sequence, the next step in time management is duration estimating
Duration includes the actual amount of time worked on an activity plus elapsed time
People doing the work should help create estimates, and an expert should review them
Estimates should be— Based on a set of assumptions and collected data Based on the current approved scope and project
specifications Changed when the scope of the project changes significantly Changed when there are authorized changes in resources,
materials, services, and so forth Budgets are only estimates
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Schedule Development
Schedule development uses results of the other time management processes to determine the start and end date of the project and its activities
Ultimate goal is to create a realistic project schedule that provides a basis for monitoring project progress for the time dimension of the project
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GANTT Charts
Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format
Symbols include: A black diamond: milestones or significant
events on a project with zero duration Thick black bars: summary tasks Lighter horizontal bars: tasks Arrows: dependencies between tasks
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Tracking versus Planning
Real world is never the same as the clean paper
Too detailed and miss the bigger picture
Too high level and are late to respond to problems
People do not always tell the truth!
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Critical Path Method
CPM is a project network analysis technique used to predict total project duration
A critical path for a project is the series of activities that determines the earliest time by which the project can be completed
The critical path is the longest path through the network diagram and has the least amount of slack or float
Finding the Critical Path First develop a good project network diagram Add the durations for all activities on each path
through the project network diagram The longest path is the critical path
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Program Evaluation and Review Technique PERT
PERT is a network analysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity duration estimates
PERT uses probabilistic time estimates based on using optimistic, most likely, and pessimistic estimates of activity durations
PERT weighted average formula: (optimistic time + 4X most likely time + pessimistic
time)/W (8 workdays + 4 X 10 workdays + 24 workdays)/6 =
12 days
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Project Cost Management
Costs are usually measured in monetary units like dollars
Project cost management includes the processes required to ensure that the project is completed within an approved budget
Resource planning: determining what resources and quantities of them should be used
Cost estimating: developing an estimate of the costs and resources needed to complete a project
Cost budgeting: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance
Cost control: controlling changes to the project budget
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Basic Principles of Cost Management Profits are revenues minus expenses Life cycle costing is estimating the cost
of a project over its entire life Cash flow analysis is determining the
estimated annual costs and benefits for a project
Benefits and costs can be tangible or intangible, direct or indirect
Sunk cost should not be a criteria in project selection
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Resource Planning
The nature of the project and the organization will affect resource planning. Some questions to consider:
How difficult will it be to do specific tasks on the project?
Is there anything unique in this project’s scope statement that will affect resources?
What is the organization’s history in doing similar tasks?
Does the organization have or can they acquire the people, equipment, and materials that are capable and available for performing the work?
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Cost Estimating
An important output of project cost management is a cost estimate
It is also important to develop a cost management plan that describes how cost variances will be managed on the project
3 basic tools and techniques for cost estimates: analogous or top-down: use the actual cost of a
previous, similar project as the basis the new estimate bottom-up: estimate individual work items and sum
them to get a total estimate parametric: use project characteristics in a
mathematical model to estimate costs
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Type of Estimate
WAG (Wild Ass Guess) Rough Order of Magnitude
(ROM) Budgetary Definitive
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Earned Value Management Terms
The planned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approved total cost estimate planned to be spent on an activity during a given period
Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period
The earned value (EV), formerly called the budgeted cost of work performed (BCWP), is the percentage of work actually completed multiplied by the planned value
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Earned Value Formulas
To estimate what it will cost to complete a project orhow long it will take based on performance to date,divide the budgeted cost or time by the appropriateindex.
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CHAPTER 7
Project Quality Management
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What is quality management?
The International Organization for Standardization (ISO) defines quality as the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs
Other experts define quality based on conformance to requirements: meeting
written specifications Has the problem that specifications are not 100%
complete or correct fitness for use: ensuring a product can be
used as it was intended
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Quality Management Processes
Quality planning: identifying which quality standards are relevant to the project and how to satisfy them
Quality assurance: evaluating overall project performance to ensure the project will satisfy the relevant quality standards
Quality control: monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality
Modern quality management SIX SIGMA requires customer satisfaction prefers prevention to inspection recognizes management responsibility for quality
Noteworthy quality experts include Deming, Juran, Crosby, Ishikawa, Taguchi, and Feigenbaum
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Sample Fishbone or Ishikawa Diagram
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Pareto Analysis
Pareto analysis involves identifying the vital few contributors that account for the most quality problems in a system
Also called the 80-20 rule, meaning that 80% of problems are often due to 20% of the causes
Pareto diagrams are histograms that help identify and prioritize problem areas
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Standard Deviation
Standard deviation measures how much variation exists in a distribution of data
A small standard deviation means that data cluster closely around the middle of a distribution and there is little variability among the data
A normal distribution is a bell-shaped curve that is symmetrical about the mean or average value of a population
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QCC, Six Sigma, Rule of 7
A control chart is a graphic display of data that illustrates the results of a process over time. It helps prevent defects and allows you to determine whether a process is in control or out of control
Operating at a higher sigma value, like 6 sigma, means the product tolerance or control limits have less variability
The seven run rule states that if seven data points in a row are all below the mean, above, the mean, or increasing or decreasing, then the process needs to be examined for non-random problems
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Cost of Quality
The cost of quality is the cost of conformance or delivering
products requirements and fitness for use the cost of nonconformance or taking
responsibility failures or not meeting quality expectations
Business Cost per Hour Downtime Automated teller machines (medium-sized bank) Package shipping service Telephone ticket sales Catalog sales center Airline reservation center (small airline)
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Five Cost Categories Related to Quality
Prevention cost: the cost of planning and executing a project so it is error-free or within an acceptable error range
Appraisal cost: the cost of evaluating processes and outputs to ensure quality
Internal failure cost: cost incurred to correct an identified defect before the customer receives the product
External failure cost: cost that relates to all errors not detected and corrected before delivery to the customer
Measurement and test equipment costs: capital cost equipment used to perform prevention and appraisal activities
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Quality, Security, etc
Quality Assurance can often be another tool for uncovering cost, schedule, and other project problems. When QA says they can not evaluate
because there is not enough detail, it is a red flag!
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CHAPTER 8
Project Human ResourceManagement
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Start With Good People
#1 Get Good People Assigned to your project Know who the good people are!
#2 You usually get less than your pay for. Cheap people may cost a lot! Expensive consultants usually do not
build things
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Projects and HR?
Project human resource management includes the processes required to make the most effective use of the people involved with a project. Processes include
Organizational planning Staff acquisition Team development
Keys to managing people Psychologists and management theorists have devoted
much research and thought to the field of managing people at work
Important areas related to project management include motivation influence and power effectiveness
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McGregor’s Theory X and Y
Douglas McGregor popularized the human relations approach to management in the 1960s
Theory X: assumes workers dislike and avoid work, so managers must use coercion, threats and various control schemes to get workers to meet objectives
Theory Y: assumes individuals consider work as natural as play or rest and enjoy the satisfaction of esteem and self-actualization needs
Theory Z: introduced in 1981 by William Ouchi and is based on the Japanese approach to motivating workers, emphasizing trust, quality, collective decision making, and cultural values
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Thamhain and Wilemon’s Influence on Projects
1. Authority: the legitimate hierarchical right to issue orders2. Assignment: the project manager's perceived ability to
influence a worker's later work assignments3. Budget: the project manager's perceived ability to
authorize others' use of discretionary funds4. Promotion: the ability to improve a worker's position5. Money: the ability to increase a worker's pay and benefits6. Penalty: the project manager's ability to cause
punishment7. Work challenge: the ability to assign work that capitalizes
on a worker's enjoyment of doing a particular task8. Expertise: the project manager's perceived special
knowledge that others deem important9. Friendship: the ability to establish friendly personal
relationships between the project manager and others
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Power
Power is the potential ability to influence behavior to get people to do things they would not otherwise do
Types of power include Coercive Legitimate Expert Reward Referent
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Improving Effectiveness - Covey’s 7 Habits
Project managers can apply Covey’s 7 habits to improve effectiveness on projects Be proactive Begin with the end in mind Put first things first Think win/win Seek first to understand, then to be understood Synergies Sharpen the saw
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Empathic Listening and Rapport
Good project managers are empathic listeners; they listen with the intent to understand
Before you can communicate with others, you have to have rapport
Mirroring is a technique to help establish rapport
IT professionals often need to develop empathic listening and other people skills to improve relationships with users and other stakeholders
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Organizational Planning
Organizational planning involves identifying, documenting, and assigning project roles, responsibilities, and reporting relationships
Outputs and processes include project organizational charts work definition and assignment process responsibility assignment matrixes resource histograms
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Sample Responsibility Assignment Matrix (RAM)
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Staff Acquisition
Staffing plans and good hiring procedures are important in staff acquisition, as are incentives for recruiting and retention
Some companies give their employees one dollar for every hour a new person they helped hire works
Some organizations allow people to work from home as an incentive
Research shows that people leave their jobs because they don’t make a difference, don’t get proper recognition, aren’t learning anything new, don’t like their coworkers, and want to earn more money
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Resource Loading
Resource loading refers to the amount of individual resources an existing project schedule requires during specific time periods
Resource histograms show resource loading Over-allocation means more resources than are
available are assigned to perform work at a given time
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Resource Leveling
Resource leveling is a technique for resolving resource conflicts by delaying tasks
The main purpose of resource leveling is to create a smoother distribution of resource usage and reduce over allocation
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Team Development: MBTI
Meyers-Briggs Type Indicator (MBTI) is a popular tool for determining personality preferences and helping teammates understand each other Four dimensions include:
Extrovert/Introvert (E/I) Sensation/Intuition (S/N) Thinking/Feeling (T/F) Judgment/Perception (J/P)
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Social Styles Profiles
People are perceived as behaving primarily in one of four zones, based on their assertiveness and responsiveness: Drive Expressive Analytical Amiable
People on opposite corners (drive and amiable, analytical and expressive) may have difficulties getting along
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Reward and Recognition Systems
Team-based reward and recognition systems can promote teamwork
Focus on rewarding teams for achieving specific goals
Allow time for team members to mentor and help each other to meet project goals and develop human resources
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Organizational Systems
Project based: Operations consist primarily of projects. Two categories:
Organizations that derive their revenue primarily from performing projects for others (architectural firms, engineering firms, consultants, construction contractors, government contractors, etc.)
Organizations that have adopted management by projects Have management systems such as accounting, financial,
reporting and tracking in place to facilitate project management Non-project based:
Absence of project-oriented systems generally makes project management more difficult.
Examples include: manufacturing companies, financial service firms, etc.
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Organizational Cultures and
Style
Culture is reflected in shared values, beliefs, norms, expectations, policies, procedures, view of authority relationships, etc.
Organizational cultures often have a direct influence on the project.
A team proposing an unusual or high-risk approach is more likely to secure approval in an aggressive or entrepreneurial organization.
A project manager with a highly participative style may encounter problems in a rigidly hierarchical organization while a project manager with an authoritarian style may be equally challenged in a participative organization.
Project managers need to be aware of the organization's cultures and style.
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Organizational Structure types:
Functional: A hierarchy where each employee has one clear superior. Staff are grouped by specialty, such as production, marketing, engineering, and accounting. Project work is done independently within each department.
Project Expeditor (PE): The project expeditor acts as a staff assistant to the executive who has ultimate responsibility for
the project. The workers remain in their functional organizations and provide assistance as needed. The PE has little formal authority. The PE's primary responsibility is to communicate information
between the executive and the workers. Most useful in the traditional functional organization where the project's worth and costs are
relatively low. Project Coordinator (PC):
Project expeditor is moved out of facilitator position into a staff position reporting to a much higher level in the hierarchy.
The project coordinator has more authority and responsibility than a PE. The PC has the authority to assign work to individuals within the functional organization. The functional manager is forced to share resources and authority with the PC. The size of projects in terms of dollars is relatively small compared to the rest of the organization.
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Matrix:
Maintains the functional (vertical) lines of authority while establishing a relatively permanent horizontal structure to interact with all functional units supporting the projects.
One result of the matrix is that workers frequently find themselves caught between the project manager and their functional manager.
Advantages: Improved PM control over resources, rapid response to contingencies, improved coordination effort across functional lines, people have a "home" after the project is over, etc. (See Principles of PM, pg. 18)
Disadvantages: Not cost effective due to excess administrative personnel, workers report to multiple bosses, more complex structure to monitor and control, higher potential for conflicts due to differing priorities, power struggles, and competition for resources, etc. (See Principles of PM, pg. 19)
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Matrix Staffing!Functions
Project A
Project B
Project C
Project K
Project Z
QA 2 5 1 1/2 ½
Software
2 1 ½ ½
3 2 5 ½ 1 ½ 2 1/2
4 2 5 1 6
5 ½ 1 5
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Matrix Types Weak matrix: Maintains many of the
characteristics of a functional organization. The project manager's role is more like that of a project coordinator or project expeditor.
Balanced matrix: In-between weak and strong. The project manager has more authority than in a weak matrix. The PM is more likely to be full-time than part-time as in a weak matrix.
Strong matrix: Similar in characteristics to a projectized organization. There is likely to be a department of project managers which are full-time.
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Projectized: Team members are often collocated. Most of the organization's resources
are involved in project work. Project managers have a great deal
of independence and authority. Departments either report directly
to the project manager or provide services to the various projects.
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Project Manager Roles and Responsibilities
Integrator PM is the most likely person who can view both the project and the way it fits into the
overall plan for the organization. Must coordinate the efforts of all the units of the project team.
Communicator Communicates to upper management, the project team, and other stakeholders.
The PM who fails to decipher and pass on appropriate information to the appropriate people can become a bottleneck in the project.
The PM has the responsibility of knowing what kind of messages to send, who to send them to, and translating the messages into a language understood by all recipients.
Team Leader Must be able to solve problems Guide people from different functional areas
Coordinate the project to show leadership capabilities Decision Maker
Makes key decisions such as allocation of resources, costs of performance and schedule tradeoffs, changing the scope, direction or characteristics of the project.
This is an important role with significant consequences for the project as a whole. Climate Creator or Builder
The PM should attempt to build a supportive atmosphere so that project team members work together and not against one another.
Seek to avoid unrest and negative forms of conflict by building supportive atmosphere early.
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General Advice on Teams
Focus on meeting project objectives and producing positive results
Make sure everyone understands the goals Fix the problem instead of blaming people Establish regular, effective meetings Use PM tools and reports to help focus
Remember the product is important, not the paper Nurture team members and encourage them to
help each other Acknowledge individual and group
accomplishments Free Lunch etc.
Establish accountability
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Project Meals Can be very effective method for team
building Lunches where management pays Friday at 4:00 for Beer and Pizza Bagels with Lox’s
Can be a hassle and negative Christmas Dinners Upper Management plus/minus
Tailored to Team / Location Pot Luck , Hotdogs/Sandwiches at the Park,
Expensive Lunch
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More Advice Project managers should
Treat people with consideration and respect Understand what motivates them Communicate carefully with them
Never confuse people Goal is to enable project team members
to deliver their best work Motivation and morale helps meet
schedules Use Accountability to your benefit
SOMETIMES FIRING A TURKEY HELPS
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CHAPTER 9
Project CommunicationsManagement
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Communications Planning
Communications planning: determining the information and communications needs of the stakeholders
Information distribution: making needed information available in a timely manner
Performance reporting: collecting and disseminating performance information
Administrative closure: generating, gathering, and disseminating information to formalize phase or project completion
Every project should include some type of communications management plan, a document that guides project communications
Creating a stakeholder analysis for project communications also aids in communications planning
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Communications Management Concept
A description of a collection and filing structure for gathering and storing various types of information
A distribution structure describing what information goes to whom, when, and how
A format for communicating key project information
A project schedule for producing the information Access methods for obtaining the information A method for updating the communications
management plans as the project progresses and develops
A stakeholder communications analysis
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Communication Interception
Lack of Clear Communications Channels Physical or temporal (time) distance between the
communicator and receiver Difficulties with Technical Language Distracting Environmental Factors (noise) Detrimental Attitudes (hostility, disbelief)
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Conflict Handling Modes
Withdrawal - retreat or withdraw from an actual or potential disagreement
Forcing - the win-lose approach Smoothing - de-emphasize areas of differences and
emphasize areas of agreement Compromise- use a give-and-take approach Confrontation problem-solving - directly face a
conflict Conflict often produces important results, such as new
ideas, better alternatives, and motivation to work harder and more collaboratively
Groupthink can develop if there are no conflicting viewpoints
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Running Effective Meetings
Determine if a meeting can be avoided Define the purpose and intended outcome of the
meeting Determine who should attend the meeting
Allow who should, but will not! Provide an agenda to participants before the
meeting Prepare handouts, visual aids, and make
logistical arrangements ahead of time Run the meeting professionally
Use the Agenda to keep it focused Build relationships Follow UP!!!!!!!!!!!!!!!!!!
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Follow Up To A Meeting
Minutes Agreements! Action Items Attendees
Contact Information I prefer minutes within 24 hours and
to Status the Action Items within 7 days
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Sample Stakeholder Analysis for Project Communications
Stakeholders Customer Management Customer Business Staff Customer Technical Staff Internal Management Internal Business and Technical Staff Training Subcontractor Software Subcontractor
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Number of Communication Channels = n(n-1)/2
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Interpersonal Communication
To ensure messages are received and understood, two-way communication is necessary.
Interpersonal communication is the process of sharing information with others.
Three basic elements of interpersonal communication: The sender (or encoder) of the message. The signal or the message. The receiver (or decoder) of the message.
Process of interpersonal communication: Sender determines what information to share and with whom and
encodes the message. Sender transmits the message as a signal to the receiver. The receiver receives the message. The receiver decodes the message to determine its meaning and
then responds accordingly. Communication is successful if the decoded message is the same
as the sender intended.
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Methods of Communication
Verbal: Advantages:
Timely exchange of information Rapid feedback Immediate synthesis of message Timely closure
Disadvantages: technical jargon especially in complex projects may make verbal communication difficult for non-technical people and other stakeholders.
Three stages of effective verbal communication and presentation: The introduction: Tell them what you're going to tell them. The explanation: Tell them. The summary: Tell them what you just told them.
Non-verbal: Encoding a message without using words. Usually done through body language. Total Message Impact = Words (7%) + Vocal tones (38%) + Facial expressions (55%) PM's may combine vocal and nonverbal factors but must be careful that the two do not
present contradictory messages. Written communication:
The main aim of business writing is that it should be understood clearly when read quickly. The message should be well planned, simple, clear, and direct. Major steps to writing:
Establish the basic purpose of the message. Collect and organize material. Prepare draft. Check the overall structure. Send the message.
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Macro-Barriers to Successful Communication
Information overload: Keep messages simple and direct. Provide sufficient information but not too much.
Lack of subject knowledge: Must have sufficient knowledge to send message. Must know level of understanding of receiver.
Cultural differences: Meanings and interpretations may vary among different cultures. Encourage team members to learn each other's cultures.
Organizational climate: Minimize the differences associated with status and ego within the
organization. Encourage open and trusting atmosphere.
Number of links: Reduce the number of transmission links. The more links, the more opportunity for distortion. Be aware of entropy. 23-27% of message is lost in upward communication.
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Perceptions: Sender's view of the receiver: how sender perceives the
receiver's level of knowledge and ability to understand the message.
Receiver's view of the sender: How the receiver personally feels about the sender may influence how carefully the receiver listens.
Message competition: Communicate only when you have the total attention of
the recipient. Try to minimize noise or other factors contributing to
message interference. Project jargon and terminology:
Define project terminology used in messages. Be aware of the use of project terminology and the
intended audience.
Micro-Barriers to Successful Communication
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Types of Project Communications
Interpersonal communication. Communication with public and
community. Formal communication. Informal communication.
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Communication Channels and Links
The PM must recognize and understand the project's formal communication channels.
Three basic channels of communication: Upward communication (vertically or
diagonally) Downward communication (vertically or
diagonally) Lateral communication (horizontally)
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Effective Listening
Effective listening is one of the most important skills for a PM to acquire and practice.
It helps develop mutual respect, rapport, and trust among project participants.
Verbal listening behaviors: Asking questions to clarify and gather more information. Paraphrasing what the speaker has said. Summarizing at intervals what the speaker has said to confirm what you have
understood. Asking the speaker for examples. Ascertaining the speaker's feelings and acknowledging them. ("You seem
angry.") Directing the speaker to the most appropriate listener. ("George can best help
you with that.") Non-verbal listening behaviors:
Making eye contact. Being expressive and alert. Moving closer to the speaker. Listening for the intention behind the speaker's communication. Facial expressions, touching, use of space, use of time.
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Barriers to Effective Listening
The mismatch between our speed of talking (100-400 words per minute) and our speed of thinking (approx. 600 words per minute) makes effective listening tough.
Some of the personal and environmental barriers that influence the overall effectiveness of communication include:
Poor listeners: People do not talk freely when they know the audience isn't listening.
Resistance to the message: People don't like to listen to something that is contrary to their preconceived ideas.
Physical distractions: telephone calls, people coming in and out of office / meetings, etc.
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Guidelines for Active Listening
Stop talking! Show the speaker you are ready to
listen: Silence: signals you are ready to listen. Few distractions: shut the door, put the
phone on hold, etc. A receptive attitude: empathize with
the speaker's point of view.
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Performance / Status Reports
Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives Status reports describe where the project
stands at a specific point in time Progress reports describe what the project
team has accomplished during a certain period of time
Project forecasting predicts future project status and progress based on past information and trends
Status review meetings often include performance reporting
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Developing a Communications Infrastructure
A communications infrastructure is a set of tools, techniques, and principles that provide a foundation for the effective transfer of information
Tools include e-mail, project management software, groupware, fax machines, telephones, teleconferencing systems, document management systems, and word processors
Techniques include reporting guidelines and templates, meeting ground rules and procedures, decision-making processes, problem-solving approaches, and conflict resolution and negotiation techniques
Principles include using open dialog and an agreed upon work ethic
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Project Portal / Website
What Useful Documents Contact Information Propaganda Test Versions
Why Not Maintenance Cost!
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Final Project Report
A project or phase of a project requires closure
Administrative closure produces – project archives – formal acceptance – lessons learned Final Free Lunch!
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CHAPTER 10
Project Risk Management
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What is Risk?
A dictionary definition of risk is “the possibility of loss or injury”
Project risk involves understanding potential problems that might occur on the project and how they might impede project success
Risk management is like a form of insurance it is an investment
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Risk Utility
Risk utility or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff
Utility rises at a decreasing rate for a person who is risk-averse Those who are risk-seeking have a higher tolerance for risk and
their satisfaction increases when more payoff is at stake The risk neutral approach achieves a balance between risk and
payoff
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Project Risk Management
The goal of project risk management is to minimize potential risks while maximizing potential opportunities. Major processes include
Risk management planning: deciding how to approach and plan the risk management activities for the project
Risk identification: determining which risks are likely to affect a project and documenting their characteristics
Qualitative risk analysis: characterizing and analyzing risks and prioritizing their effects on project objectives
Quantitative risk analysis: measuring the probability and consequences of risks
Risk response planning: taking steps to enhance opportunities and reduce threats to meeting project objectives
Risk monitoring and control: monitoring known risks, identifying new risks, reducing risks, and evaluating the effectiveness of risk reduction
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Questions in a Risk Management Plan
The risk questions: Why? What? How? When? How Much?
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Other Types of Risk
Market Risk: Will the new product be useful to the organization or marketable to others? Will users accept and use the product or service?
Financial Risk: Can the organization afford to undertake the project? Is this project the best way to use the company’s financial resources?
Technology Risk: Is the project technically feasible? Could the technology be obsolete before a useful product can be produced?
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Risk Identification
Risk identification is the process of understanding what potential unsatisfactory outcomes are associated with a particular project
Several risk identification tools and techniques include Brainstorming The Delphi technique Interviewing SWOT analysis
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Knowledge Area
Integration Scope Time Cost Quality Human Resources Communications Risk Procurement
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Quantitative Risk Management
Assess the likelihood and impact of identified risks to determine their magnitude and priority Common in Hardware System
Risk quantification tools and techniques include Probability/Impact matrixes The Top 10 Risk Item Tracking Expert judgment
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Decision Tree and EMV
A decision tree is a diagramming method used to help you select the best course of action in situations in which future outcomes are uncertain
EMV is a type of decision tree where you calculate the expected monetary value of a decision based on its risk event probability and monetary value
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Simulation
Simulation uses a representation or model of a system to analyze the expected behavior or performance of the system
Monte Carlo analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results
To use a Monte Carlo simulation, you must have three estimates (most likely, pessimistic, and optimistic) plus an estimate of the likelihood of the estimate between the optimistic and most likely values
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Risk Response Planning
After identifying and quantifying risk, you must decide how to respond to them
Four main strategies: Risk avoidance: eliminating a specific threat or risk,
usually by eliminating its causes Risk acceptance: accepting the consequences should
a risk occur Risk transference: shifting the consequence of a risk
and responsibility for its management to a third party
Risk mitigation: reducing the impact of a risk event by reducing the probability of its occurrence
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Risk Monitoring & Control
Monitoring risks involves knowing their status Controlling risks involves carrying out the risk
management plans as risks occur Workarounds are unplanned responses to risk events that
must be done when there are no contingency plans The main outputs of risk monitoring and control are
corrective action, project change requests, and updates to other plans
Risk response control involves executing the risk management processes and the risk management plan to respond to risk events
Risks must be monitored based on defined milestones and decisions made regarding risks and mitigation strategies
Sometimes workarounds or unplanned responses to risk events are needed when there are no contingency plans
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CHAPTER 11
Project ProcurementManagement
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Project Procurement Management
Procurement planning: determining what, when, and how much to procure
Solicitation planning: documenting product requirements and identifying potential sources
Solicitation: obtaining quotations, bids, offers, or proposals as appropriate
Source selection: choosing from among potential vendors Contract administration: managing the relationship with
the vendor Contract close-out: completion and settlement of the
contract Make-or-buy analysis: determining whether a particular
product or service should be made or performed inside the organization or purchased from someone else.
Often involves financial analysis
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Types of Contracts
Unit price contracts Time and material contracts Cost reimbursable Fixed price or lump sum
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Statement of Work SOW
A statement of work is a description of the work required for the procurement
Many contracts, mutually binding agreements, include SOWs
A good SOW gives bidders a better understanding of the buyer’s desires
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SOW Scope of Work: Describe the work to be done to detail. Specify the
hardware and software involved and the exact nature of the work. Location of Work: Describe where the work must be performed.
Specify the location of hardware and software and where the people must perform the work
Period of Performance: Specify when the work is expected to start and end, working hours, number of hours that can be billed per week, where the work must be performed, and related schedule information.
Deliverables Schedule: List specific deliverables, describe them in detail, and specify when they are due.
Applicable Standards: Specify any company or industry-specific standards that are relevant to performing the work.
Acceptance Criteria: Describe how the buyer organization will determine if the work is acceptable.
Special Requirements: Specify any special requirements such as hardware or software certifications, minimum degree or experience level of personnel, travel requirements, and so on.
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Solicitation Planning
Solicitation planning involves preparing several documents: Request for Proposals: used to solicit proposals from prospective
sellers where there are several ways to meet the sellers’ needs Requests for Quotes: used to solicit quotes for well-defined
procurements Invitations for bid or negotiation and initial contractor responses
are also part of solicitation planning Request For Qualification: used to get a set of interested vendors
Solicitation involves obtaining proposals or bids from prospective sellers
Organizations can advertise to procure goods and services in several ways
approaching the preferred vendor approaching several potential vendors advertising to anyone interested
A bidders’ conference can help clarify the buyer’s expectations
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Source Selection
Source selection involves evaluating bidders’ proposals choosing the best one negotiating the contract awarding the contract
It is helpful to prepare formal evaluation procedures for selecting vendors
Buyers often create a “short list”
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Contract Administration
Contract administration ensures that the seller’s performance meets contractual requirements
Contracts are legal relationships, so it is important that legal and contracting professionals be involved in writing and administering contracts
Many project managers ignore contractual issues, which can result in serious problems
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Contract Close Out
Contract close-out includes product verification to determine if all
work was completed correctly and satisfactorily
administrative activities to update records to reflect final results
archiving information for future use Procurement audits identify lessons
learned in the procurement process
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Cost Reimbursable Contracts
Cost plus incentive fee (CPIF): the buyer pays the seller for allowable performance costs plus a predetermined fee and an incentive bonus
Cost plus fixed fee (CPFF): the buyer pays the seller for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs
Cost plus percentage of costs (CPPC): the buyer pays the seller for allowable performance costs plus a predetermined percentage based on total costs
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Chapter 12
Project Managementas a Profession
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Project Management Institute (PMI)
Project Management Institute (PMI®) Not-for-profit professional association Over 80,000 members worldwide Established 1969 Global Organization Headquartered in:
Newtown Square, Pennsylvania USA
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PMP Certification Requirements
Four main requirements for earning PMP certification Having experience working in the field of
project management. You need 4,500 hours with a baccalaureate degree and 7,500 without a degree
Signing a PMP Certificate and Candidate Agreement and Release form
completing the PMP Certification Exam Application and paying a fee of $555 for non-PMI members and $405 for members
Passing the PMP exam
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PM Needs Some Domain Knowledge
No one understands everything well! It helps to be effective project
management if you understand (or once understood) one the domains well! Software Quality etc..
People Skills are required!