Transcript Project Management - Dedipurwana's Blog | Just another

Project
Management
Credit Hours : 3
Lecturer : Dedi Purwana E.S.
Email: [email protected]
Students Role
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Relax and enjoy yourself
Participate actively
Feel free to ask questions
Complete exercises
Please switch your hand phones to silent
mode
Do on time your individual and group
assignments
Keep maintaining your academic integrity
E.g. Don’t cheat on mid and final exam
THE PROJECT
MANAGEMENT FRAMEWORK
Introduction to Project
Management
Advantages of Using Formal
Project Management
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Better control of financial, physical, and human
resources
Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Better internal coordination
Higher worker morale
What Is a Project?
A project is a temporary endeavor
undertaken to accomplish a unique
purpose
 Attributes of projects

 unique
purpose
 temporary – definite beginning and ending
 require resources, often from various areas
 should have a primary sponsor and/or
customer
 involve uncertainty
RELATED ENDEAVORS
Programs.
Subprojects.
 is a group of projects
managed in a
coordinated way to
obtain benefits not
available from
managing them
individually
 Projects divided into more
manageable components or
subprojects.
 Subprojects are often
contracted out to an external
enterprise or to another
functional unit in the
performing organization.
The Triple Constraint

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?
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It is the project manager’s duty to balance
these three often competing goals
The Triple Constraint of Project
Management
What is Project
Management?
Project management is “the application of
knowledge, skills, tools, and techniques to
project activities in order to meet project
requirements” (PMI*, Project Management
Body of Knowledge (PMBOK Guide), 2000,
p. 6)
*The Project Management Institute (PMI) is an international
professional society – devoted to the advancement of project
management. Their web site is www.pmi.org.
Project Management Institute
www.pmi.org
Project Management
Framework
Project Stakeholders
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Stakeholders are the people involved in or affected by
project activities
Stakeholders include
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the project sponsor and project team
support staff
customers
users
suppliers
opponents to the project
Interview stakeholder to determine their expectation
for the project
Involves the client as much as possible in the project
activities
9 Project Management
Knowledge Areas
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Knowledge areas describe the key
competencies that project managers must
develop
4
core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
 4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management
 1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
Project Management Tools and
Techniques
Project management tools and techniques
assist project managers and their teams in
various aspects of project management
 Some specific ones include
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 Project
Charter and WBS (scope)
 Gantt charts, network diagrams, critical path
analysis, critical chain scheduling (time)
 Cost estimates and earned value
management (cost)
Sample WBS for Intranet
Project in Chart Form
Intranet Project
Concept
Web Site
Design
Web Site
Development
Design User Interface
Develop Pages
and Links
Design Server Setup
Develop
Functionality
Develop Server
Support Infrastructure
Content
Migration/Integration
Testing
Roll Out
Support
Sample Gantt Chart
The WBS is on the left, and each task’s start and finish date
are shown on the right using a calendar timescale.
Sample Network Diagram
Each box is a project task from the WBS. Arrows show dependencies
between tasks. The bolded tasks are on the critical path. If any tasks on the
critical path take longer than planned, the whole project will slip
unless something is done.
Sample Earned Value Chart
300
EAC
BAC
250
200
$
BCWS or Cumulative Plan
150
ACWP or Cumulative Actual
BCWP or Cumulative EV
BCWS
Cost Variance
100
ACWP
Schedule Variance
BWCP
50
0
1
2
3
4
5
6
7
Month
8
9
10
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12
More Advantages of Project
Management
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Bosses, customers, and other stakeholders do not like
surprises
Good project management (PM) provides assurance
and reduces risk
PM provides the tools and environment to plan,
monitor, track, and manage schedules, resources,
costs, and quality
PM provides a history or metrics base for future
planning as well as good documentation
Project members learn and grow by working in a
cross-functional team environment
How Project Management (PM)
Relates to Other Disciplines
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Much of the knowledge needed to manage
projects is unique to PM
However, project managers must also have
knowledge and experience in
 general
management
 the application area of the project
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Project managers must focus on meeting
specific project objectives. “SMART” – specific,
measurable, achievable, realistic and timelimited
Project Management and
Other Disciplines
PM Knowledge Continues to
Grow and Mature
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The PMBOK Guide – 2000 Edition is an ANSI
standard
PMI’s certification department earned ISO
9000 certification
Hundreds of new books, articles, and
presentations related to project management
have been written in recent years
Project Management
Certification
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PMI provides certification as a Project Management
Professional (PMP)
A PMP has documented sufficient project experience,
agreed to follow a code of ethics, and passed the PMP
exam
The number of people earning PMP certification is
increasing quickly
PMI and other organizations are offering new
certification programs
Tekmetric / Brainbench Project Management
Certification.
Project Management Software
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By 2005, there were tens of different products
to assist in performing project management.
Microsoft Project 2003 most popular.
Project Portal to promote good project
governance – transparency, participation and
accountability
Project Info is a project document keeper and
project reporting and monitoring online
system.
Microsoft Project
Project Portal – UIN Sunan Kalijaga
www.uin-suka.info/projectportal
Project Portal UIN Sultan Syarif Kasim
http://www.uin-suska.info/idb
Project Portal – Haluoleo University
http://www.idbunhalu.info/projectportal
The Project
Management Context
and Processes
Project Phases and the
Project Life Cycle
A project life cycle is a collection of
project phases
 Project phases vary by project or
industry, but some general phases
include
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 concept
 development
 implementation
 support
Phases of the Project Life
Cycle
Distinguishing Project Life
Cycles and Product Life Cycles
The project life cycle applies to all
projects, regardless of the products being
produced
 Product life cycle models vary
considerably based on the nature of the
product
 Most large products are developed as a
series of projects
 Project management is done in all of the
product life cycle phases
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Why Have Project Phases and
Management Reviews?
A project should successfully pass through
each of the project phases in order to
continue on to the next
 Management reviews (also called phase
exits or kill points) should occur after each
phase to evaluate the project’s progress,
likely success, and continued compatibility
with organizational goals
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Many Organizations Focus on
the Structural Frame
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Most people understand what organizational
charts are
Many new managers try to change
organizational structure when other changes
are needed
3 basic organization structures*
 functional
 Project
 Matrix
Functional Organization
Projectized Organization
Weak Matrix Organization
Balanced Matrix Organization
Strong Matrix Organization
Composite Organization
Organizational Structure
Recognize the Importance of
Project Stakeholders
Recall that project stakeholders are the
people involved in or affected by project
activities
 Project managers must take time to
identify, understand, and manage
relationships with all project stakeholders
 Senior executives are very important
stakeholders
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Need for Top Management
Commitment
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Several studies cite top management
commitment as one of the key factors
associated with project success
Top management can help project managers
secure adequate resources, get approval for
unique project needs in a timely manner, receive
cooperation from people throughout the
organization, and learn how to be better leaders
Need for Organizational
Standards
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Standards and guidelines help project managers
be more effective
Senior management can encourage
 the
use of standard forms and software for project
management
 the development and use of guidelines for writing
project plans or providing status information
 the creation of a project management office or
center of excellence
Project Manager Responsibilities
 Reporting to Senior Manager and the Steering
Committee
 Communication with Users
 Planning and Scheduling
 Obtaining and allocating resources
 Controlling Risk
 Delivering Results
 People Management
 Coordination
 Quality Assurance
 Budget Control
Fifteen Project Management Job
Functions*
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Define scope of project
Identify stakeholders,
decision-makers, and
escalation procedures
Develop detailed task list
(work breakdown
structures)
Estimate time
requirements
Develop initial project
management flow chart
Identify required
resources and budget
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Evaluate project
requirements
Identify and evaluate risks
Prepare contingency plan
Identify interdependencies
Identify and track critical
milestones
Participate in project phase
review
Secure needed resources
Manage the change control
process
Report project status
What do you need, to be
a good Project Manager?
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A communicator
A manager
An Innovator
Technically competent, respected, and aware
An Administrator
A Leader
Able to work well under pressures
Goal-oriented
Knowledgeable about the company
Senior
Suggested Skills for a
Project Manager
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Communication skills: listening, persuading
Organizational skills: planning, goal-setting, analyzing
Team Building skills: empathy, motivation, esprit de
corps
Leadership skills: sets example, energetic, vision (big
picture), delegates, positive
Coping skills: flexibility, creativity, patience,
persistence
Technological skills: experience, project knowledge
Project Management
Process Groups
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Project management can be viewed as a
number of interlinked processes
The project management process groups
include
 initiating
processes
 planning processes
 executing processes
 controlling processes
 closing processes
Overlap of Process Groups in a Phase
(PMBOK Guide, 2000, p. 31)
PM Knowledge Area
 Project Integration Management:
• project plan development,
• project plan execution, and
• overall change control.
 Project Scope Management:
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initiation,
scope planning,
scope definition,
scope verification, and
scope change control.
PM Knowledge Area
 Project Time Management:
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activity definition,
activity sequencing,
activity duration estimating,
schedule development, and
schedule control.
 Project Cost Management:
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resource planning,
cost estimating,
cost budgeting, and
cost control.
PM Knowledge Area
 Project Quality Management:
• quality planning,
• quality assurance, and
• quality control.
 Project Human Resource Management:
• organizational planning,
• staff acquisition, and
• team development.
PM Knowledge Area
 Project Communications Management:
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Communications planning,
information distribution,
performance reporting, and
administrative closure.
 Project Risk Management:
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risk identification,
risk quantification,
risk response development, and
risk response control.
PM Knowledge Area
 Project Procurement Management:
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procurement planning,
solicitation planning,
solicitation,
source selection,
contract administration, and
contract close-out.
PROCESS GROUPS
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Initiating processes
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Planning processes
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coordinating people and other resources to carry out the plan.
Controlling processes
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devising and maintaining a workable scheme to accomplish the business
need that the project was undertaken to address.
Executing processes
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recognizing that a project or phase should begin and committing to do so.
ensuring that project objectives are met by monitoring and measuring
progress and taking corrective action when necessary.
Closing processes
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formalizing acceptance of the project or phase and bringing it to an orderly
end.
PROCESS GROUPS
PROCESS GROUPS
PROCESS GROUPS
PROCESS INTERACTIONS
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Inputs
 documents
or documentable items that will
be acted upon.
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Tools and techniques
 mechanisms
applied to the inputs to create
the outputs.
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Outputs
 documents
or documentable items that are
a result of the process.
Project Scope
Management
What is Project Scope Management?
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Scope refers to all the work involved in
creating the products of the project and the
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 will
be produces as a result of a project and what
processes will be used in producing them
Project Scope Management Processes
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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
Project Initiation: Strategic Planning
and Project Selection
The first step in initiating projects is to look
at the big picture or strategic plan of an
organization
 Strategic planning involves determining
long-term business objectives
 Projects should support strategic and
financial business objectives
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Identifying Potential Projects
Many organizations follow a planning
process for selecting projects
 First develop an strategic plan based on
the organization’s overall strategic plan
 Then perform a business area analysis
 Then define potential projects
 Then select projects and assign
resources
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Methods for Selecting Projects
There are usually more projects than
available time and resources to implement
them
 It is important to follow a logical process
for selecting projects to work on
 Methods include focusing on broad needs,
categorizing projects, financial methods,
and weighted scoring models
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Focusing on Broad
Organizational Needs
It is often difficult to provide strong
justification for many projects, but
everyone agrees they have a high value
 Three important criteria for projects:
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 There
is a need for the project
 There are funds available
 There’s a strong will to make the project
succeed
Categorizing Projects
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One categorization is whether the project
addresses
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a problem
 an opportunity, or
 a directive
Another categorization is how long it will
take to do and when it is needed
 Another is the overall priority of the project
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Project Charters
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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
Provides the project manager with authority to apply
resources
Sample Project Charter
Project Title: Information Technology (IT) Upgrade Project
Project Start Date: March 4, 200
Projected Finish Date: December 4, 2002
Project Manager: Kim Nguyen, 691-2784, [email protected]
Project 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
Sample Project Charter (continued)
Roles and Responsibilities:
Name
Walter Schmidt, CEO
Mike Zwack
Role
Project Sponsor
CIO
Kim Nguyen
Jeff Johnson
Nancy Reynolds
Project Manager
Director of IT Operations
VP, Human Resources
Steve McCann
Director of Purchasing
Responsibility
Monitor project
Monitor project, provide
staff
Plan and execute project
Mentor Kim
Provide staff, issue memo
to all employees about
project
Assist in purchasing
hardware and software
Sign-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, CIO
We are assuming that adequate staff will be available and committed to supporting this
project. Some work must be done after hours to avoid work disruptions, and overtime
will be provided. Jeff Johnson and Kim Nguyen, Information Technology Department
Scope Planning and the
Scope Statement
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A scope statement is a document used to
develop and confirm a common understanding
of the project scope. It should include
a
project justification
 a brief description of the project’s products
 a summary of all project deliverables
 a statement of what determines project success
Scope Definition and the Work
Breakdown Structure
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After completing scope planning, the next step is
to further define the work by breaking it into
manageable pieces
Good scope definition
 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
The Work Breakdown
Structure
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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
A deliverable-oriented grouping of project
elements which organizes and defines total
scope of the project.
Sample Intranet WBS Organized
by Product
Sample Intranet WBS Organized
by Phase
Intranet WBS in Tabular Form
1.0 Concept
1.1 Evaluate current systems
1.2 Define Requirements
1.2.1 Define user requirements
1.2.2 Define content requirements
1.2.3 Define system requirements
1.2.4 Define server owner requirements
1.3 Define specific functionality
1.4 Define risks and risk management approach
1.5 Develop project plan
1.6 Brief web development team
2.0 Web Site Design
3.0 Web Site Development
4.0 Roll Out
5.0 Support
Intranet WBS and Gantt Chart in Project
2003
Project 98 file
Intranet WBS and Gantt Chart Organized
by Project Management Process Groups
Approaches to Developing WBSs
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Using guidelines: Some organizations,
provide guidelines for preparing WBSs
The analogy approach: It often helps to
review WBSs of similar projects
The top-down approach: Start with the largest
items of the project and keep breaking them
down
The bottoms-up approach: Start with the
detailed tasks and roll them up
Basic Principles for Creating WBSs*
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
Scope Verification and Scope
Change Control
It is very difficult to create a good scope
statement and WBS for a project
 It is even more difficult to verify project
scope and minimize scope changes
 Scope verification use work results and
product documentation as input.
 Scope controls requires a formal change
management process.
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Suggestions for Reducing Incomplete
and Changing Requirements
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Develop and follow a requirements management
process
Employ techniques such as prototyping, use case
modeling, and Joint Application Design to thoroughly
understand user requirements
Put all requirements in writing and current
Create a requirements management database
Provide adequate testing
Use a process for reviewing requested changes from a
systems perspective
Emphasize completion dates
Project Time
Management
Project Time Management
Processes

Project time management involves the
processes required to ensure timely
completion of a project. Processes
include:
 Activity
definition
 Activity sequencing
 Activity duration estimating
 Schedule development
 Schedule control
Where Do Schedules Come From?
Defining Activities

Project schedules grow out of the basic
document that initiate a project
 Project
charter includes start and end dates and
budget information
 Scope statement and WBS help define what will be
done

Activity definition involves developing a more
detailed WBS and supporting explanations to
understand all the work to be done
Activity Sequencing
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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
Project Network Diagrams
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Project network diagrams are the preferred
technique for showing activity sequencing
A project network diagram is a schematic
display of the logical relationships among, or
sequencing of, project activities
Precedence Diagramming
Method (PDM)
Activities are represented by boxes
 Arrows show relationships between
activities
 More popular than ADM method and used
by project management software
 Better at showing different types of
dependencies

Task Dependency Types
Sample Precedence Diagramming Method
(PDM) Network Diagram for Project X
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

Schedule Development
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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
Important tools and techniques include Gantt
charts, PERT analysis, critical path analysis,
and critical chain scheduling
Gantt Charts
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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
Gantt Chart for Software Launch Project
Critical Path Method (CPM)
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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

Simple Example of Determining
the Critical Path

Consider the following project network diagram.
Assume all times are in days.
C=2
start
1
A=2
2
B=5
4
E=1
3
6
D=7
5
F=2
a. How many paths are on this network diagram?
b. How long is each path?
c. Which is the critical path?
d. What is the shortest amount of time needed to complete
this project?
finish
Determining the Critical Path for
Project X
More on the Critical Path
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If one of more activities on the critical path
takes longer than planned, the whole project
schedule will slip unless corrective action is
taken
Misconceptions:
 The
critical path is not the one with all the critical
activities; it only accounts for time
 There can be more than one critical path if the
lengths of two or more paths are the same
 The critical path can change as the project
progresses
Using Critical Path Analysis to
Make Schedule Trade-offs
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Knowing the critical path helps you make
schedule trade-offs
Free slack or free float is the amount of time
an activity can be delayed without delaying
the early start of any immediately following
activities
Total slack or total float is the amount of time
an activity may be delayed from its early start
without delaying the planned project finish
date
Techniques for Shortening a
Project Schedule
Shortening durations of critical tasks for
adding more resources or changing their
scope
 Crashing tasks by obtaining the greatest
amount of schedule compression for the
least incremental cost
 Fast tracking tasks by doing them in
parallel or overlapping them

Importance of Updating
Critical Path Data
It is important to update project schedule
information
 The critical path may change as you
enter actual start and finish dates
 If you know the project completion date
will slip, negotiate with the project
sponsor

Program Evaluation and
Review Technique (PERT)
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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
Single and average duration estimates
PERT Formula and Example
 PERT weighted average formula:
optimistic time + 4X most likely time + pessimistic time
6
Example:
PERT weighted average =

8 workdays + 4 X 10 workdays + 24 workdays = 12 days
6
where 8 = optimistic time, 10 = most likely time, and 24 =
pessimistic time
Controlling Changes to the
Project Schedule
Perform reality checks on schedules
 Allow for contingencies
 Don’t plan for everyone to work at 100%
capacity all the time
 Hold progress meetings with stakeholders
and be clear and honest in communicating
schedule issues

Working with People Issues
Strong leadership helps projects succeed
more than good PERT charts
 Project managers should use

 empowerment
 incentives
 discipline
 negotiation
Using Software to Assist in Time
Management
Software for facilitating communications
helps people exchange schedule-related
information
 Decision support models help analyze
trade-offs that can be made
 Project management software can help
in various time management areas

Project Cost
Management
What is Cost and Project Cost
Management?
Cost is a resource sacrificed or fore-gone
to achieve a specific objective or
something given up in exchange
 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

Project Cost Management
Processes




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
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?
Cost Estimating
An important output of project cost
management is a cost estimate
 There are several types of cost estimates
and tools and techniques to help create
them
 It is also important to develop a cost
management plan that describes how cost
variances will be managed on the project

Types of Cost Estimates
Type of Estimate
Rough Order of
Magnitude (ROM)
Budgetary
Definitive
When Done
Very early in the
project life cycle,
often 3–5 years
before project
completion
Early, 1–2 years out
Why Done
How Accurate
Provides rough
ballpark of cost for
selection decisions
–25%, +75%
Puts dollars in the
budget plans
–10%, +25%
Later in the project, < Provides details for
1 year out
purchases, estimate
actual costs
–5%, +10%
Cost Estimation Tools and Techniques

3 basic tools and techniques for cost
estimates:
 analogous
or top-down: use the actual
cost of a previous, similar project as the
basis for 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
Typical Problems with Cost
Estimates




Developing an estimate for a large project is a complex
task requiring a significant amount of effort.
Remember that estimates are done at various stages
of the project
Many people doing estimates have little experience
doing them. Try to provide training and mentoring
People have a bias toward underestimation. Review
estimates and ask important questions to make sure
estimates are not biased
Management wants a number for a bid, not a real
estimate. Project managers must negotiate with
project sponsors to create realistic cost estimates
Cost Budgeting

Cost budget involves allocating the
project cost estimate to individual work
items and providing a cost baseline
Cost Control

Project cost control includes
 monitoring
cost performance
 ensuring that only appropriate project
changes are included in a revised cost
baseline
 informing project stakeholders of authorized
changes to the project that will affect costs

Earned value management is an
important tool for cost control
Earned Value Management (EVM)



EVM is a project performance measurement
technique that integrates scope, time, and cost
data
Given a baseline (original plan plus approved
changes), you can determine how well the
project is meeting its goals
You must enter actual information periodically
to use EVM. Figure below shows a sample
form for collecting information
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
Earned Value Formulas
BCWP - ACWP
BCWP - BCWS
BCWP/ACWP
BCWP/BCWS
To estimate what it will cost to complete a project or how
long it will take based on performance to date, divide the
budgeted cost or time by the appropriate index.
Earned Value Calculations for One Activity
After Week One
BCWP
PV * % Complete
BCWS
ACWP
BCWP - ACWP
BCWP - BCWS
BCWP/ACWP
BCWP/BCWS
Rules of Thumb for EVA
Numbers
Negative numbers for cost and schedule
variance indicate problems in those
areas. The project is costing more than
planned or taking longer than planned
 CPI and SPI less than 100% indicate
problems

Earned Value Chart for Project
After Five Months
BCWS
ACWP
BCWP
Using Software to Assist in Cost
Management
Spreadsheets are a common tool for
resource planning, cost estimating, cost
budgeting, and cost control
 Many companies use more sophisticated
and centralized financial applications
software for cost information
 Project management software has many
cost-related features

Project Quality
Management
What Is Project 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
fitness for use: ensuring a product can be used as it was
intended
Grade is a category or rank given to entities having the
same functional use but different requirements for
quality.
Project 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

Modern quality management
 requires
customer satisfaction
 prefers prevention to inspection
 recognizes management responsibility for
quality

Noteworthy quality experts include
Deming, Juran, Crosby, Ishikawa, Taguchi,
and Feigenbaum
Quality Experts






Deming was famous for his work in rebuilding Japan
and his 14 points
Juran wrote the Quality Control Handbook and 10
steps to quality improvement
Crosby wrote Quality is Free and suggested that
organizations strive for zero defects
Ishikawa developed the concept of quality circles and
using fishbone diagrams
Taguchi developed methods for optimizing the
process of engineering experimentation
Feigenbaum developed the concept of total quality
control
Sample Fishbone or Ishikawa
Diagram
Malcolm Baldrige Award and
ISO 9000



The Malcolm Baldrige Quality Award was
started in 1987 to recognize companies with
world-class quality
ISO 9000 provides minimum requirements for
an organization to meet their quality
certification standards
ISO 9000 is applicable to any product, service
or process anywhere in the world.
Quality Planning



It is important to design in quality and
communicate important factors that directly
contribute to meeting the customer’s
requirements
Design of experiments helps identify which
variable have the most influence on the overall
outcome of a process
Many scope aspects of IT projects affect
quality like functionality, features, system
outputs, performance, reliability, and
maintainability
Quality Assurance




Quality assurance includes all the activities
related to satisfying the relevant quality
standards for a project
Another goal of quality assurance is
continuous quality improvement
Benchmarking can be used to generate ideas
for quality improvements
Quality audits help identify lessons learned
that can improve performance on current or
future projects
Quality Control

The main outputs of quality control are
 acceptance
decisions
 rework
 process

adjustments
Some tools and techniques include
 pareto
analysis
 statistical sampling
 quality control charts
 testing
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
Sample Pareto Diagram
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
Normal Distribution and Standard
Deviation
Sample Quality Control
Chart
Testing
Many professionals think of testing as a
stage that comes near the end of product
development
 Testing should be done during almost
every phase of the product development
life cycle

Improving Project Quality

Several suggestions for improving quality for
projects include
 Leadership that promotes quality
 Understanding the cost of quality
 Focusing on organizational influences and
workplace factors that affect quality
 Following maturity models to improve quality
Leadership
“It is most important that top management
be quality-minded. In the absence of
sincere manifestation of interest at the top,
little will happen below.” (Juran, 1945)
 A large percentage of quality problems are
associated with management, not
technical issues

The Cost of Quality

The cost of quality is
 the
cost of conformance or delivering
products that meet requirements and fitness
for use
 the cost of nonconformance or taking
responsibility for failures or not meeting
quality expectations
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
their 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 after delivery to the customer
Measurement and test equipment costs: capital cost
of equipment used to perform prevention and
appraisal activities
Project Management Maturity Model
1. Ad-Hoc: The project management process is described as disorganized,
and occasionally even chaotic. The organization has not defined systems
and processes, and project success depends on individual effort. There are
chronic cost and schedule problems.
2. Abbreviated: There are some project management processes and systems
in place to track cost, schedule, and scope. Project success is largely
unpredictable and cost and schedule problems are common.
3. Organized: There are standardized, documented project management
processes and systems that are integrated into the rest of the organization.
Project success is more predictable, and cost and schedule performance is
improved.
4. Managed: Management collects and uses detailed measures of the
effectiveness of project management. Project success is more uniform, and
cost and schedule performance conforms to plan.
5. Adaptive: Feedback from the project management process and from piloting
innovative ideas and technologies enables continuous improvement.
Project success is the norm, and cost and schedule performance is
continuously improving.
Project Human Resource
Management
The Importance of Human
Resource Management

People determine the success and failure
of organizations and projects
What is Project Human Resource
Management?

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
Motivation
Abraham Maslow developed a hierarchy
of needs to illustrate his theory that
people’s behaviors are guided by a
sequence of needs
 Maslow argued that humans possess
unique qualities that enable them to
make independent choices, thus giving
them control of their destiny

Maslow’s Hierarchy of Needs
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
Thamhain and Wilemon’s Ways to
Have Influence on Projects
1. Authority: the legitimate hierarchical right to issue orders
2. Assignment: the project manager's perceived ability to influence a
worker's later work assignments
3. Budget: the project manager's perceived ability to authorize
others' use of discretionary funds
4. Promotion: the ability to improve a worker's position
5. Money: the ability to increase a worker's pay and benefits
6. Penalty: the project manager's ability to cause punishment
7. Work challenge: the ability to assign work that capitalizes on a
worker's enjoyment of doing a particular task
8. Expertise: the project manager's perceived special knowledge
that others deem important
9. Friendship: the ability to establish friendly personal relationships
between the project manager and others
Ways to Influence that Help and
Hurt Projects

Projects are more likely to succeed when
project managers influence with
 expertise
 work challenge

Projects are more likely to fail when project
managers rely too heavily on
 authority
 money
 penalty
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
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
 Synergize
 Sharpen the saw
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
Professionals often need to develop empathic
listening and other people skills to improve
relationships with users and other
stakeholders
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
Sample Organizational Chart for a
Large IT Project
Work Definition and Assignment
Process
Sample Responsibility Assignment
Matrix (RAM)
RAM Showing Stakeholder
Roles
Sample Resource Histogram for a
Large IT Project
12
Number of People
10
8
6
4
2
0
Jan
Feb
Mar
Apr
May
Java programmers
Managers
Testing specialists
Jun
Jul
Aug
Business analysts
Administrative staff
Sep
Oct
Nov
Technical writers
Database analysts
Dec
Staff Acquisition



Staffing plans and good hiring procedures
are important in staff acquisition, as are
incentives for recruiting and retention
Remote worker ? Internet based solution
for managing project.
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
Resource Loading and Leveling



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
Sample Resource Histogram for a
Large IT Project
Sample Histogram Showing an
Overallocated Individual
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
overallocation

Resource Leveling Example
Team Development
It takes teamwork to successfully complete
most projects
 Training can help people understand
themselves, each other, and how to work
better in teams
 Team building activities include

 physical
challenges
 psychological preference indicator tools
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
General Advice on Teams





Focus on meeting project objectives and
producing positive results
Fix the problem instead of blaming people
Establish regular, effective meetings
Nurture team members and encourage them to
help each other
Acknowledge individual and group
accomplishments
Project Resource Management Involves
Much More Than Using Software

Project managers must
 Treat
people with consideration and respect
 Understand what motivates them
 Communicate carefully with them

Goal is to enable project team members
to deliver their best work
Project Communications
Management
Importance of Good
Communications




The greatest threat to many projects is a failure
to communicate
Our culture does not portray PM professionals
as being good communicators
Research shows that PM professionals must
be able to communicate effectively to succeed
in their positions
Strong verbal skills are a key factor in career
advancement for PM professionals
Project Communications
Management Processes




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
Communications Planning


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
Communications Management Plan
Contents







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
Sample Stakeholder Analysis for Project
Communications
Stakeholders
Document Name Document Contact Person Due
Format
Customer
Management
Monthly Status
Report
Hard copy
Gail Feldman,
Tony Silva
First of month
Customer
Business Staff
Monthly Status
Report
Hard copy
Julie Grant,
First of month
Customer
Technical Staff
Monthly Status
Report
E-mail
Internal
Management
Monthly Status
Report
Hard copy
Bob Thomson
First of month
Internal
Business and
Technical Staff
Monthly Status
Report
Intranet
Angie Liu
First of month
Training
Subcontractor
Training Plan
Hard Copy
Jonathan Kraus
11/1/1999
Software
Subcontractor
Software
Implementation
Plan
E-mail
Barbara Gates
6/1/2000
Jeff Martin
Evan Dodge,
First of month
Nancy Michaels
Information Distribution


Getting the right information to the right people
at the right time and in a useful format is just
as important as developing the information in
the first place
Important considerations include
 using
technology to enhance information
distribution
 formal and informal methods for distributing
information
Media Choice Table
The Impact of the Number of People on
Communications Channels
Performance Reporting

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
Administrative Closure
A project or phase of a project requires
closure
 Administrative closure produces

 project
archives
 formal acceptance
 lessons learned
Suggestions for Improving Project
Communications




Manage conflicts effectively
Develop better communication skills
Run effective meetings
Use templates for project communications
Conflict Handling Modes, in Preference
Order





Confrontation or problem-solving: directly face a
conflict
Compromise: use a give-and-take approach
Smoothing: de-emphasize areas of differences
and emphasize areas of agreement
Forcing: the win-lose approach
Withdrawal: retreat or withdraw from an actual or
potential disagreement
Conflict Can Be Good



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
Research by Karen Jehn suggests that taskrelated conflict often improves team
performance, but emotional conflict often
depresses team performance
Developing Better
Communication Skills



As organizations become more global, they
realize they must invest in ways to improve
communication with people from different
countries and cultures
Companies and formal degree programs often
neglect the importance of developing
speaking, writing, and listening skills
It takes leadership to improve communication
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
Provide an agenda to participants before the
meeting
Prepare handouts, visual aids, and make
logistical arrangements ahead of time
Run the meeting professionally
Build relationships
Using Templates for Project
Communications
Many technical people are afraid to ask for
help
 Providing examples and templates for
project communications saves time and
money
 Organizations can develop their own
templates, use some provided by outside
organizations, or use samples from
textbooks

Sample Template for a Project Description
Sample Template for a Monthly Progress
Report
Outline for a Final Project Report
Gantt Chart Template for a Class Project
Sample Template for a Project
Web Site
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, website, 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
Using Software to Assist in Project
Communications




There are many software tools to aid in project
communications
Microsoft Project 2003 includes several
features to enhance communications
Project Portal – Good Project Governance –
transparency, participation and accountability
Project Info – Project Document Online
Repository – secure project document keeper.
Project Risk Management
Project Risk Management
Processes






Risk Management Planning : deciding how to approach and plan
the risk management activities for a project
Risk Identification : determining which risks might effect the project
and documenting their characteristics
Qualitative Risk Analysis : performing a qualitative analysis of risks
and condition to prioritize their effect for project objectives
Quantitative Risk Analysis : measuring the probability and
consequences of risks and estimating their implications for project
objectives
Risk Response Planning : developing procedures and techniques
to enhance opportunities and reduce threats to the project objectives
Risk Monitoring and Control : monitoring residual risks, identifying
new risks, executing risk reduction plans, and evaluating their
effectiveness throughout the project life cylce.
Project Risk Management




Risk management must be done during the
whole life of the project
All risks have a probability > 0 and < 100%
A risk event that has a probability = 100%
is not a risk
Anyone involved with the project should
have access the project risk management
plan
Risk Tolerance
Risks that may not be considered as important to
the project are :
 Risks that have very high probabilities and
very low impacts, and
 Risks that have very low probabilities and
very high impacts
Risks we need to worry about are those that have a
reasonably high probability and high impact
Steps in risk management
Practices
Risk Identification
Risk Analysis
Risk Assessment
Risk Exposure
Risk Prioritization
Risk Management
Risk Reduction
Risk Control
Contingency Planning
Risk Monitoring
Continuous Reassessment
How to Identify Risks


Start with a typical list of software risks
Review development plan
 Critical
Paths
 Critical Staff Members
 Critical Vendor Deliveries
 Critical Milestones



Review Requirements
Review Technical Design
Review Past Projects
How to Identify Risks
(Continued)

Conduct Risk Brainstorming Sessions with Staff,
Users, Vendors, Customers, and Management
 Try
to assess the direction of thinking by third parties
as they may give an indication of future requirements,
expectations, or vendor changes.
 If your dependent on vendors, try to understand their
business situation.

Get as much input as possible!
Risks Identification Techniques
 Documentation reviews
 Brainstorming
 Delphi technique
 Nominal group technique
 Crawford slip
 Expert interviews
 Analogy
Documentation review
 Reviewing lessons learned and risk
management plans from previous projects
 Reviewing WBS, contract obligations,
project baseline for scope, schedule and
budget, resource avaibilities, staffing plans,
suppliers
Brainstorming
 Meeting is called to make a comprehensive
list of risks
 participants : 10 to 15
 The meeting < 2 hours
 Participants can name risks
 No discussion
 Another participants give new ideas for
possible risks
Delphi Technique
 Similar to brainstorming but the participants do not
know one another (anonymous)
 useful if the participants are some distance away
(particularly using email)
 Process :
 Facilitator distributes quesionnaire to the
participants to submit risk ideas
 Facilitator catagorize and clarify the responses,
then circulate to the participant for comments or
addition
Nominal Group Technique
 The facilitator instructs each of the participants to
privately and silently list his or her idea on a piece of
paper
 The facilitator takes each piece of paper and lists the
ideas on a flip chart or blackboard, then make discussion
 Now ranks the ideas in order of importance, again in
secret
 This technique is faster and require less effort of the
facilitator than Delphi Tech.
Crawford Slip
 It does not require as strong a facilitator as the other
techniques
 It produces ideas very quickly < 1/2 hour
 Process :
 The facilitator asks question
 The participants write down the answer
 After one minute, the facilitator ask the same
question and the participants have to make different
answer
 This is repeated 10 times
Analysis, Exposure, &
Prioritization

For Each Risk:
 Determine Probability of Occurrence
 What is the likelyhood of occurrence?
 Determine Impact
 What is the impact if it occurres?
 Determine Exposure
 What will we lose if the risk occurs?

For All Risks:
 Prioritize
 Where should we put our limited resources?
Analysis, Exposure,
Prioritization: How?

Various Techniques Available But Key is
Experience
 Individual
 Organizational

Don’t Rely on Just Yourself - Get lots of
Inputs
Risk Assessment: A Simple
Classification & Tracking Method
Probability of
Occurrence vs Impact
Priorities
 Red
- High
 Yellow - Med
 Green - Low

Review/Present Chart
Periodically
Higher Impact

to 5 Scale
Risk #4
Risk #3
Risk #2
Lower Impact
1
Risk #1
Impact

Risk #5
Lower Probability
Higher Probability
Probability of Occurrance
Risk Assessment:
Probability Methods


Can we quantitize the risk?
For Each Risk:

For Each Possible Action:






Estimate Probability of an Given Outcome P(O)
Estimate $ Loss of an Given Outcome L(O)
Multiply the P(O) by L(O) to give $ exposure for the unwanted
outcome
Sum all $ exposures for each Possible Action
Compare the $ exposures
Calculate Risk Leverage

(Risk Exposure Before Reduction - Risk Exposure After Reduction) /
(Cost of Risk Reduction)
Example Risk Assessment
Using Probability Method
RISK
EXPOSURE
Find Critical Fault
P(O) = 0.75
Yes
L(O) = $0.5M
$0.375M
L(O) = $30M
$1.5M
No Critical Fault
P(O) = 0.20
L(O) = $0.5M
$0.10M
Find Critical Fault
P(O) = 0.25
L(O) = $0.5M
$0.125M
L(O) = $30M
$16.50M
L(O) = $0.5M
$0.10M
Don't Find Critical Fault
P(O) = 0.05
COMBINED
RISK
EXPOSURE
$1.975M
Do
Regression
Testing?
No
Don't Find Critical Fault
P(O) = 0.55
No Critical Fault
P(O) = 0.20
$16.75M
RISK LEVERAGE -> $14.775M
Risk Control
Risk Reduction
 Contingency Planning
 Monitoring

Risks Response
Planning
Risk Reduction

Avoiding Risk : Avoid the risk completely
 Modifying
project requirements
 Transferring the Risk : Move the impact of the risk
to some other party
 By allocation to other systems, Buying Insurance to
cover financial loses, Subcontracting
 Mitigating the Risk : reduce the probability or
impact of the risk
 adding additional tests, hiring duplicate suppliers,
adding more expert personnel, designing
prototypes
 performance bond, guarantees
Contingency Planning
Some risks cannot be reduced
 Plan for risk occurrence
 Why?

 Reduces
“Crisis” atmosphere
 Reduces chance of mistakes
 Reduces time to correct
Monitoring

Periodic Review of Risk Status
 Changes
in Probabilities or Impacts
 Changes in Avoidance/Mitigation/Contingency Plans



Periodic Review of Project to Identify New Risks
Implementation of Risk Avoidance or Mitigation
Plans
Keep Management and Customers Informed!!!
 Frequent
Risk Reviews
Project Procurement
Management
Project Procurement Management
Processes






Procurement Planning: determining what to procure
and when
Solicitation Planning : documenting product
requirements and identifying potential sources
Solicitation : obtaining quotations, bids, offer, or
proposals, as appropriate
Source Selection : choosing from among potential
sellers
Contract Administration : managing the relationship
with the seller
Contract Closeout : completion and settlement of the
contract, including resolution of any open items.
Risk sharing principles

Principles for allocating risk among the parties to
a project:
 which
party is the source of the particular risk and
hence best able to control the events that may lead to
it happening in the first place?
 which party can be best manage the risk, if it occurs?
 Is it or is it not preferable for the client to retain an
involvement in the management of the risk in
questions?
Risk sharing principles

Principles for allocating risk among the parties to
a project:
 if
it cannot be controlled, which party can or should
carry the risk?
 Will the cost incurred, or premium charged, by the
recipient of the risk be reasonable and cost-effective
 will the recipient be capable of sustaining the
consequences of the risk, if it occurs?
 Or will it lead to the possibility of the risk of a different
nature being transferred back again
Contract strategy considerations
Procurement strategy will depend upon:
 type of project
 particular emphasis in terms of scope
 quality
 time & cost
 degree of uncertainty
Risk sharing principles
Very little
Partial
Complete
Uncertainty
High
Moderate
Low
Degree of risk
High
Medium
low
Scope of work
information
0%
100%
Agency (Buyer)
Suggested risk
allocation
Seller (Contractor)
0%
Contract types
CPPF
100%
CPIF
CPFF
FPPI
FFP
Project Integration
Management
The Key to Overall Project Success:
Good Project Integration Management
Project managers must coordinate all of
the other knowledge areas throughout a
project’s life cycle
 Many new project managers have trouble
looking at the “big picture” and want to
focus on too many details

Project Integration Management
Processes
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

Framework for Project Integration
Management
Focus on pulling everything together to reach project success!
Project Plan Development




A project plan is a document used to
coordinate all project planning documents
Its main purpose is to guide project execution
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
Attributes of Project Plans
Just as projects are unique, so are project
plans
 Plans should be dynamic
 Plans should be flexible
 Plans should be updated as changes
occur
 Plans should first and foremost guide
project execution
Common Elements of a Project
Plan
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

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
Sample Stakeholder Analysis
Ahmed
Organization Internal
senior
management
Role on
project
Unique facts
Level of
interest
Level of
influence
Sponsor of
project and
one of the
company's
founders
Demanding,
likes details,
business
focus,
Stanford
MBA
Very high
Very high;
can call the
shots
Key Stakeholders
Susan
Erik
Project team Project team
Mark
Hardware
vendor
DNA
sequencing
expert
Lead
programmer
Supplies
some
instrument
hardware
Very smart,
Ph.D. in
biology,
easy to work
with, has a
toddler
Very high
Best
programmer
I know,
weird sense
of humor
Start-up
company, he
knows we
can make
him rich if
this works
Very high
Subject
matter
expert;
critical to
success
Suggestions Keep
Make sure
on managing informed, let she reviews
relationship him lead
specification
conversation s and leads
s ,do as he
testing; can
says and
do some
quickly
work from
home
High
High; hard
to replace
Low; other
vendors
available
Keep him
happy so he
stays;
emphasize
stock
options;
likes
Mexican
food
Give him
enough lead
time to
deliver
hardware
David
Project
manager for
other
internal
project
Competing
for company
resources
Nice guy,
one of oldest
people at
company,
has 3 kids in
college
Low to
medium
Low to
medium
He knows
his project
takes a back
seat to this
one, but I
can learn
from him
Project Plan Execution
Project plan execution involves managing
and performing the work described in the
project plan
 The majority of time and money is usually
spent on execution
 The application area or the project directly
affects project execution because the
products of the project are produced
during execution

Important Skills for Project
Execution
General management skills like
leadership, communication, and
political skills
 Product skills and knowledge
 Use of specialized tools and
techniques

Tools and Techniques for
Project Execution



Work Authorization System: a method for
ensuring that qualified people do work at
the right time and in the proper sequence
Status Review Meetings: regularly
scheduled meetings used to exchange
project information
Project Management Software: special
software to assist in managing projects
Integrated Change Control


Integrated change control involves identifying,
evaluating, and managing changes throughout
the project life cycle (Note: 1996 PMBOK
called this process “overall change control”)
Three main objectives of change control:
 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
Change Control on Projects




Former view: The project team should strive to
do exactly what was planned on time and within
budget
Problem: Stakeholders rarely agreed up-front on
the project scope, and time and cost estimates
were inaccurate
Modern view: Project management is a process
of constant communication and negotiation
Solution: Changes are often beneficial, and the
project team should plan for them
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

Change Control Boards (CCBs)
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

Making Timely Changes


Some CCBs only meet occasionally, so it may
take too long for changes to occur
Some organizations have policies in place for
time-sensitive changes
 “48
hour policy” allowed project team members to
make decisions, then they had 48 hours reverse the
decision pending senior management approval
 Delegate changes to the lowest level possible, but
keep everyone informed of changes
Configuration Management



Ensures that the products and their
descriptions are correct and complete
Concentrates on the management of
technology by identifying and controlling the
functional and physical design
characteristics of products
Configuration management specialists
identify and document configuration
requirements, control changes, record and
report changes, and audit the products to
verify conformance to requirements
Suggestions for Managing
Integrated Change Control







View project management as a process of constant
communications and negotiations
Plan for change
Establish a formal change control system, including a
Change Control Board (CCB)
Use good configuration management
Define procedures for making timely decisions on
smaller changes
Use written and oral performance reports to help
identify and manage change
Use project management and other software to help
manage and communicate changes
Total Review
Project Management Process
Output
Formal Acceptance
and Closure
Project Charter
Execution
Initiation
Closing
Planning
Project Plan & Supporting Details:
Project Stakeholders List, Project Team List, Statement
of Work , Statement of Work Deliverable Review Form ,
Scope Management Plan, Scope Change, Communications/Reporting Plan, Assessment Checklist, Concern List,
Heads-Up Report , Product Acceptance , Project Activity
Schedule , Project Planning Checklist , Project Reporting
Methods , Quality Review Checklist - Project Definition ,
Risk Management Plan , Project Risk Assessment ,
Generic Project Risk Factor , Tasklist and Timeline
Controlling
Post
Project
Review
Post Project
Review Report
Project Change Control Form , Problem and Change Record Form , Project
Change Request Form , Project Change Request Summary Sheet , Revision
Record , Project Details , Progress Report, Monthly Status Report , Project
Task Progress Report, Meeting Agenda and Minutes Meeting Action Items ,
Meeting Evaluation