Transcript No Slide Title

Fundamentals of Project
Management: Part 1a
APEGGA Annual Conference
April 24 & 25, 2003
Dr. George F. Jergeas PEng.
University of Calgary
1
Schedule
Day 1a
 Introduction
 5-Step PM
 Planning and
Definition
Day 2 c
 Project procurement
 Bidding process
 Building & sustaining project
team
 Contract administration
Day 1b
 Estimating cost and time
 Organize project team
 Selecting PM and team
 Effective teams
Day 2 d
 Schedule control
 Cost control
 Project Close-out
 Claims and disputes
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References
This section is based on:
The 5-Phased Project Management- A Practical
Planning and Implementation Guide by Joseph Weiss
and Robert K. Wysocki
Project Management Institute: PMBOK Guide,
http://www.pmi.org
Instructors’ notes
3
Introduction
4
What is a project?
A specific, finite task to be
accomplished
Can be of a long or short term duration
Can be large or small task
5
Projects Vary in Size and
Scope
NASA shuttle launch
Building a boat
Building a hospital
Building renovation and & space modification
Planning a party or wedding
Organizing the Olympic games
Developing a new software program
Getting a university degree
Company mergers
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Project Characteristics
Constant
communication across
organizational
boundaries
Many people
involved, across
several functional
areas
Sequenced events
Goal oriented
Has an end product
or service
Multiple priorities
Complex and
numerous activities
Unique, one-time set
of events
Deadlines
Start and end dates
Identifiable
stakeholders
Limited resources and
budget
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When is a Project a Project?
A task or set of work assignments may be done
by one or more persons using a simple “to do”
list.
A task become a project when the
characteristics of a project begin to dominate
and overwhelm individuals
Unable to meet deadlines, budgets and corporate
expectations
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Project Management
Project management is a method and/or
set of techniques based on the accepted
principles of management used for
planning, estimating and controlling work
activities to reach a desired result on time,
within budget, and according to the
project specifications.
9
What is Project Management?
Tools/techniques
Processes and methodology
More than time, cost and scope
Hard and soft skills
A discipline evolving towards a
profession
10
Project Management
Projects and project management
are about people and teamwork
Who does what?
Who takes what risk?
Who else is involved or
interested/affected?
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Subprojects
Projects are frequently divided into more
manageable components or subprojects
Subprojects are typically referred as
projects and managed as such
Subprojects may be contracted to an
external enterprise
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Program(me)
A program is a group of projects managed
in a coordinated way to obtain benefits not
available from managing them individually
(PMBOK p.10, Turner p.345)
Program management: Management of a
coherent group of projects to deliver
additional benefits
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Value of Project Management
(Why are we doing this?)
Improve project/program/firm performance
as measured by efficiency, effectiveness
Add competitive advantage
Be more “Successful”
Proactive vs. Reactive
Root out ill-conceived, directionless projects
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Major Causes of Project
Success
A constructive goal-oriented culture
Technically competent team
Effective (and committed) team
Excellent communication
Trust
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Major Causes of Project
Success
Stakeholders are identified
Stakeholders expectations are known and
met
Senior Management support
There is a clearly stated purpose and a
sound plan
Goal and objectives are understood and
communicated
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Major Causes of Project
Failure
Projects fail for the following reasons:
The project is a solution in search of a
problem
Only the project team is interested in the
result
No one is in charge
There is no project structure
The plan lacks detail
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Major Causes of Project
Failure
Projects fail for the following reasons:
The project has insufficient budget and/or
resources
Lack of team communication
Straying from original goal
The project is not tracked against the plan
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Project Lifecycle
Project management phases link the
project to the firm’s operations
A project is a subset of the product
lifecycle
The product lifecycle includes operation or
production, decommissioning or
closedown
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Sample Lifecycle (Conceive, Develop,
Execute, Finish – C, D, E, F)
http://www.maxwideman.com/papers/framew
ork/lifecycle.htm

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5-Step Project Management
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5-Step Project Management
PLANNING
IMPLEMENTATION
DEFINE
PLAN
ORGANIZE
CONTROL
State the
Problem
Identify
project
activities
Determine
Personnel
Needs
Define
Management
Style
Obtain
Client
Acceptance
Estimate
time and
cost
Recruit
Project
Manger
Recruit
Project Team
Establish
Control Tools
Install
Deliverables and
Commissioning
Organize
Project Team
Review
Project
Schedule, cost,
team reports
Identify
Project
Goal
List the
Objectives
Determine
Preliminary
Resources
Identify
Risks and
stakeholders
Success criteria
Project charter
Quality
and
Communic
ation
manageme
nt
Bidding
Assign Work
Packages
Write
Project
Proposal
Decision
Recruit Criteria
WBS
Project network
Project proposal
Define Work Packages
Assign Work Packages
Prepare
Status Reports
Issue Change
Orders
Variance Reports
Status Reports
CLOSE
Document the
Project
Issue Final
Report
Conduct PostImplementation
Audit
Final Report
Audit Reports
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Step 1- Define the Project
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Agenda
State the problem/need/opportunity
Develop project goal
Develop project objectives
Determine preliminary resources
Identify assumptions and risks
Identify stakeholders
Identify criteria for project success
Issue Project Charter
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State the Problem/Need/
Opportunity
A need that must be addressed or
opportunity to be explored
New product, service, process,
facility, system or technology
It may involve opening a new
market
Identify and define in detail the
investment opportunity, need or problem
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State the Problem/Need/
Opportunity
Define client requirements and needs
from the client’s original input
Review and enhance the client’s
statement of needs:
Identify appropriate policies, standards,
and jurisdictional requirements
Identify and assess feasible
alternatives of satisfying the client’s
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statements
State the Problem/Need/
Opportunity
Advise the client of potential technologyrelated constraints in areas such as ...
Establish consensus on the
requirements of the client
Assemble information including any
relevant designs, charts, or diagrams ...
27
State the Problem/Need/
Opportunity
Short, crisp and to the point
Descriptor for those who although
not directly involved on the project
team are indirectly involved in
supporting the project
28
State the Problem / Need /
Opportunity: Training Example
“Membership in PM Association has
declined in the past four years and
attendance at conference has declined in
the past three years. The viability and
financial stability of the Association
depends on maintaining membership and
successful annual conference.”
29
State Project Goal
A statement of purpose and direction
Initiates the project
Serves as a point of reference for settling
misunderstandings
Clarifies expectations
Helps in justifying requests for resources
Action oriented
Short and simple
Understandable
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Goal Statements
Prepare and launch the International
Space Station on April 21, 2000, from
Cape Canaveral, Florida
Connect France and England via a
covered tunnel and railway under the
English Channel, facility to be opened to
traffic no later than September, 1996
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Goal Statement: Examples
Design and complete pilot testing by
March 2002, a product accounting
software package that performs basic
financial analyses for the company
Obtain a BSc degree in engineering from
U of C by spring, 2004
32
Goal Statement: Training
Example
Reverse the downward trend in
membership and annual conference
attendance by organizing a highly
successful conference
33
Develop Project Objectives
Objectives represent major scope
components or milestones
Objectives are sub-goals
Roadmap to aid decision makers
understand the purpose of the project
Basis for determining project time line and
resource requirements
To achieve the goal all objectives must be
realized
34
Objectives: Training
Example
Develop the Program
Set the Conference Site and Date
Design and Implement the Marketing
Plan
35
Resourcing Strategy
For each objective:
Determine which internal resources are
available
Determine which external resources
will be required
Take any preliminary steps required to
engage external resources
Expression of interest
36
RACI Chart
Task
Responsible Accountable Consulted
Informed
1
2
37
Identify Criteria for Evaluating
Project Success
Project expectations:
Project on time
Within budget
According to specifications
Happy client
38
Success Criteria: Training
Example
At least 200 of 450 PM Association membership
will register to attend
At least 50 of previous years conferences
attendees will attend
At least 1.5% of the non-members receiving
conference brochure will attend
At least 5% of the non-member attendees will
join PM Association
39
Identify Assumptions and
Risks
Each objective will have its own risks and
assumptions
Helps think through the project process and
issues associated with execution
Identifies resource needs and issues involving
resource availability
Identifies potential delays and the impact of
these delays
Potential cost overruns can be predicted and
resolved
40
Risk Management
Identify risks
What could go wrong (harm, loss,
opportunities and threats)
Consider ALL knowledge areas
Internal and external risks
Sources of risk: product technology, people
(misunderstandings, skills), project management
etc.
41
Risk Management
Quantify risks
High, Medium, Low (HML) - qualitative
Expected Monetary Value (EMV) quantitative
42
Risk Quantification Technique:
High, Medium, Low (HML)
Probability of occurrence and impact
High, Medium, Low grid
Focus on HHs and less on LLs
Keep it simple
43
Risk Quantification Technique:
High, Medium, Low (HML)
H
HH
Impact
M
L
L
M
H
Probability
44
Risk Management
Develop risk response plan
Opportunities and threats to respond to and
opportunities and threats to accept
Avoid – eliminate cause
Mitigate – reduce risk occurrence
Accept – contingency plans, accept losses
Its OK to do any of these
Insurance, contingency plans, procurement,
alternative strategies, contracts
Risk management template
45
Risk Management
Template
Risk
Probability
Impact
Owner
of risk
Response
Plan
Monitoring
Schedule
46
Assumption and Risks:
Training Example
Interest in PM Association can be renewed
through the annual conference
A quality professional program will attract
members and non-members
Key speaker(s) fail to show up or submit
written paper
47
Identify Stakeholders
Individual or organisations actively
involved in the project or directly or
indirectly affected by its execution or
results. They can influence your success
or decision makers.
Roles must be identified at the start of the
project
Needs and expectations must be
communicated and influenced in a positive
and constructive manner so that the project
will be success for all
48
Identify Stakeholders
How to find them?
Ask who will decide on the success of
your project
How to involve them?
Ask for (appropriate) advice
Get their buy-in to project plans
49
Identify Stakeholders
How to work with them?
Active listening
Understand their interests and needs
Keep everyone informed
How to keep them on side?
Respond to concerns
Manage expectations and make
adjustments
50
Stakeholder Analysis
STAKEHOLDER
Objective
Potential Impact
How They Operate
Where they gain Support
How to Manage them
and plan for
mitigation
51
Stakeholders: Training
Example
Attendees
Speakers
Hotel
PM Association
Organizing team
52
Charter Document
The “define” phase focuses on producing
a Project Charter document which is used
as:
Formally recognize the existence of the
project
An early statement of the project goal and
direction
A statement of the problems and
opportunities to be addressed by the project
53
Charter Document
Include the business need and product
description, constraints and assumptions
A tool in the initial “go/no go” decision by
management
Approval to proceed
Funding, authority, sponsor
A general information document for other
managers
54
Charter Document
Once the project is approved for go
ahead, the Project Charter becomes the
foundation for the detailed planning
activities which follow and:
Provides a control point for reporting
project progress and an audit point
Reference base for addressing
questions and conflicts
Tool for building the team
55
Project Charter
Project Name - PM Conference
Project Manager:
Problem/Opportunity
Membership in PM Association has declined in the past four years and attendance at
conference has declined in past three years. The viability and financial stability of the
organization depends on maintaining membership and successful annual conference.
Goal
Reverse the downward trend in membership and annual conference attendance
Objectives
1.
2.
3.
Develop the Program
Set the Conference Site and Date
Design and Implement the Marketing Plan
Success Criteria
1.
At least 50 of previous years conferences attendees will attend
2.
At least 150 of 450 members will attend
3.
At least 1.5% of the non-members receiving conference brochure will attend
4.
At least 5% of the non-member attendees will join PM
Assumptions and Risks
1.
Interest in PM can be renewed through the annual conference
2.
A quality professional program will attract members and non-members
3.
Key speaker(s) fail to show up or submit written paper.
Stakeholders
Attendees, Speakers, Hotel, PM Association, Organizing team56
Step 2 - Plan the Project
57
Agenda
Work Breakdown Structures (WBS)
Estimate Time and Cost
58
5-Step Project Management
PLANNING
IMPLEMENTATION
DEFINE
PLAN
ORGANIZE
CONTROL
State the
Problem
Identify
project
activities
Determine
Personnel
Needs
Define
Management
Style
Obtain
Client
Acceptance
Estimate
time and
cost
Recruit
Project
Manger
Recruit
Project Team
Establish
Control Tools
Install
Deliverables and
Commissioning
Organize
Project Team
Review
Project
Schedule, cost,
team report
Identify
Project
Goal
List the
Objectives
Determine
Preliminary
Resources
Identify
Risks and
stakeholders
Success criteria
Project charter
Quality
and
Communic
ation
manageme
nt
Bidding
Assign Work
Packages
Write
Project
Proposal
Decision
Recruit Criteria
WBS
Project network
Project proposal
Define Work packages
Assign Work Packages
Prepare
Status Reports
Issue Change
Orders
Variance Reports
Status Reports
CLOSE
Document the
Project
Issue Final
Report
Conduct PostImplementation
Audit
Final Report
Audit Reports
59
Work Breakdown Structure
(WBS)
Reduces complex projects to a series of
tasks that can be planned
WBS represents the project in the form of
a hierarchy of goal, objectives and
activities
Identifies activities to be done from
beginning to completion of the project
60
Work Breakdown Structure
Goal
Objective
Objective
Objective
Activities and Deliverables
Activites and Deliverables
Activities and Deliverables
61
Work Breakdown Structure
Activities in the WBS are broken-down
until the entire project is displayed as
separately identified activities
The breakdown of activities continues
until there are no overlapping activities
62
Work Breakdown Structure
Each activity:
Status and completion are easily
measured
Of a specific time duration with defined
beginning and end
Easy to derive time and cost estimates
Of a single purpose and have clearly
understood deliverables
Responsibility for completion clearly
63
assigned
WBS Procedure: Training
Example
1. Partition the project into its
major objectives
1.1 Develop the Program
1.2 Set the Conference Site and Date
1.3 Design and Implement the
Marketing Plan
64
WBS Procedure: Training
Example
2. Partition the objectives into activities
1.1 Develop the Program
1.1.1 Establish Theme and Topics
1.1.2 Obtain Speakers
1.1.3 Prepare Handout Materials
1.2 Set the Conference Site and Date
1.2.1 Set Conference Date
1.2.2 Select and Commit Conference Site
1.2.3 Confirm Arrangements
1.3 Design and Implement the Marketing Plan
1.3.1 Develop and Print Conference Brochure
1.3.2 Obtain Label Sets for Direct Mail
1.3.3 Mail Conference Brochures
1.3.4 Receive and Acknowledge Registrations
65
WBS Procedure: Training
Example
3. Check each activity for compliance
with activity characteristics and
further partition any that do not
comply
1.1.3 Prepare Handouts
• 1.1.3.1 Obtain Handout Materials from
Speakers
• 1.1.3.2 Prepare and Print Conference
Notebook
66
WBS Worksheet -PM Conference
WBS WORKSHEET
Activity No.
Project Name
PPM Annual Conference
Activity Description
1.1.
1.2
1.3
1.1.1
1.1.2
1.1.3
1.1.3.1
1.1.3.2
1.2.1
1.2.2
1.2.3
1.3.1
1.3.2
1.3.3
1.3.4
Develop Program
Set Conference Date
Design and Implement Marketing Plan
Establish Theme and Topics
Obtain Speakers
Prepare Handout Materials
Obtain Handout Materials from Speakers
Prepare and Print Conference Notebook
Set Conference Date
Select and Commit Conference Site/Date
Confirm Arrangements
Develop and Print Conference Brochure
Obtain Label Sets for Direct Mail
Mail Conference Brochures
Receive and Acknowledge Registrations
Prepared by
Date
Approved by
Date
Sheet 1 of 1
Project Manager
Characteristics
1 2 3 4
Y N N N
Y Y Y N
Y N N N
Y Y Y Y
Y Y Y Y
Y Y Y N
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Activity Characteristics Legend
1
2
3
4
Status/completion measurable
Clearly defined start/end events
Time/cost easily estimated
Single purpose and responsibilty for
completion clearly assigned
67
Hierarchical Representation
CONFERENCE PLANNING
PROGRAM
THEME
MATERIALS
OBTAIN
MATERIALS
SITE
SPEAKERS
PREPARE
KITS
DATE
PLACE
MARKETING
LISTS
BROCHURE
DESIGN
BROCHURE
REGISTER
MAIL
BROCHURE
68