Transcript Slide 1

PROJECT MANAGEMENT FOR
PROCUREMENT
PROFESSIONALS
Dianne Hardison
March 21, 2013
DIANNE HARDISON
CEO, The Hardison Group—2003
American Management Assoc. Trainer—1983
Director Domestic Marketing, FCEDA
Director Technology Transfer, Virginia CIT
Director Business & Government Services, NVCC
Director Human Resources, Kaaren Johnson
Assoc.
 Consultant, DC Government
 Consultant, US Department Education
 Coordinator Financial Aid, GMU
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COURSE OBJECTIVES & AGENDA
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Provide common language and tools to manage
Procurement Projects efficiently and effectively.
Project Management Overview
Initiating the Project
Planning the Work
Working the Plan
That’s a Wrap
Resource—Project Management Institute’s
PMBOK (Project Management Book of
Knowledge)
PROJECT MANAGEMENT OVERVIEW
DEFINITIONS
 Project—A temporary endeavor undertaken to
create a unique product, service or result.
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Temporary—defined timeframe exists; a beginning and
an end.
Unique—project is different than previous activities.
Product, service or result is defined.
 Program—A group of projects managed together
as a unit.
 Operations—Day to day implementation of a unit’s
activities.
PROJECT MANAGEMENT FOR
PROCUREMENT PROFESSIONALS
 Project?
 Program?
 Operations?
PROJECT FRAMEWORK
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Define
Plan
Execute
Manage
Close
PROJECT FRAMEWORK—DEFINE
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Formally authorize project and define organizationlevel success criteria.
Stimulus
Event
Legislative Mandate
Requirement
Developed at the “sponsorship-stakeholder” level
(above Project Manager).
PROJECT FRAMEWORK--PLAN
 Develop detailed project goals, work plan,
resource plan, risk management and other plans
needed for successful project execution.
 Deliverable—Project Plan
PROJECT FRAMEWORK—MANAGE
 Project Manager (PM) and Project Management
Team (PMT) execute the Plan
 Deliverables include status reports, forecasts, etc.
 When the plans change, the PMT must revise plan
to keep up-to-date
PROJECT FRAMEWORK—CLOSE
 Conducting final lessons learned
 Updating internal processes and procedures to
incorporate new project outcomes
 Reassigning PMT to new projects
 Reporting on team performance
 Archiving actual time for each task
 Archiving documents
 Reporting the results
 Obtaining official closure on project
CLASSICAL ROLES & RESPONSIBILITIES
SENIOR MANAGEMENT
Two Roles
 Determine Project’s viability and define
organizational objectives. Accomplished through
Project Charter
 After Project is approved and sanctioned, maintain
support for Project through life line, ensuring
adequate resources.
ROLES & RESPONSIBILITIES
STEERING COMMITTEE*
 Determine resource needs
 Work with higher-level managers to balance
resource demands
 Select or reject projects
 Schedule projects to balance resources
 Review progress of all projects
 Handle problems: readjust project schedules,
authorize hiring of contractors, etc.
PROJECT MANAGEMENT CHARTER
Executive-level summary of the business case for
the project that contains at a minimum, the
essential items executive management needs to
make a decision on whether to proceed with the
project.
 One document that does not change
 Contract between executive management & PM
 Prevents “scope creep” (in Congress they’re called
“riders”)
PM CHARTER ELEMENTS
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Project mission or goal statement
Agency objectives
Deliverables
Scope: Inclusion and Exclusion
PM and level of authority
Agency resources
Approach
Risks, assumptions & other issues
Initial estimates
CHARTER—MISSION/GOAL STATEMENT
Describes key objectives:
 Concise
 Focused
 Wordsmithed
 Durable—Capable surviving entire project without
change
CHARTER—AGENCY OBJECTIVES
Lists key goals the agency wants from project:
 Relate to County/Municipality mission
 Strategic Alignment
CHARTER—DELIVERABLES
Briefly describes the key deliverables and any
characteristics important to senior management
and project success
CHARTER—SCOPE
Lists the activities or goals both included and
excluded in the project. The purpose of the
exclusions is to prevent clients and other
stakeholders from assuming that they’re getting
something they’re not.
CHARTER—PM & LEVEL OF AUTHORITY
Identifies the PM and what he/she is allowed to
do. This may include hiring staff, consultants or
vendors; conducting training; or authorizing capital
expenditures.
CHARTER—AGENCY RESOURCES
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Provides high-level estimates of resources needed
by the various departments
Funding
Equipment
PM
PMT
Skill set required
Records Management
???
CHARTER—APPROACH
Takes an agency-level approach to accomplishing
the project. List:
 Procedures
 Methodologies
 Templates
CHARTER—RISKS, ASSUMPTIONS &
OTHER ISSUES
Lists key project-level risks and assumptions
associated with the project. Use simple
risk/reward model to determine whether to
undertake the project.
CHARTER—INITIAL ESTIMATES
Uses appropriate SMEs and qualified PM to
provide initial estimates for time and cost. Early
estimates might include wide range of values ±
30%.
SAMPLE CHARTER (CORPORATE)
 www.AllyBusiness.com
 Charter Development Exercise—20 minutes
 Develop DRAFT Charter of current, past or
hypothetical Project
EXERCISE
Draft a Procurement Project Management Charter
PLANNING THE WORK
PROJECT SCOPE DEFINITION
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Once Charter has been executed by all required
stakeholders, Project Planning begins.
Identify ALL requirements & deliverables
Identify needs of ALL stakeholders: purchasing,
HR, finance functional managers, etc.
PMT must satisfy all stakeholders while satisfying
goals in Charter on limited budget and schedule
GBS—Goals Breakdown Structure: breaking down
high-level goals into smaller goals.(Gershenson,
Bender, Syme outline 1, A, 1, 2, 3., etc.
WORK DEFINITION
 WBS—Work Breakdown Structure
 Best-known construct in PM—Core of Project Plan
Project Title
1. Phase 1
A. Deliverable 1
1. work package a
2. work package b
3. work package c
B. Deliverable 2
2. Phase 2
SOLICIT PROPOSAL GOODS OR SERVICES
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Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
STRATEGIC ALIGNMENT
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Balanced & comprehensive objectives
Specific and durable objectives
Hierarchical framework
Measurable objectives
Stakeholder agreement
Environmental & organizational assumptions???
PROJECT LIFE CYCLE REQUIREMENTS
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Must establish and USE overriding structure for
Project execution.
Initiating
Planning
Executing
Monitoring
Controlling
Closing
LIFE CYCLES WITH SEQUENTIAL PHASES
 Linear succession of phases
 Connect concept to result
 Milestone decision points=phase reviews (stage or
review gates, etc.)
 Progression flows from step to step=waterfall life
cycle.
 Incorporate into WBS
 Synchronize life cycle decisions & review
milestones if part of multiple, dependent, projects.
 Thinking, doing, checking & delivery.
LIFE CYCLE
Project
Start
Release
Plan
Decision
Cycle 1
Cycles
2-N
Closure
Project
End
ASSIGNING TASK OWNERSHIP
1. For each activity from WBS, list owner and other
contributors committed to the work.
2. Responsibility Analysis Matrix—summarize
activity staffing for WBS activities.
3. List unmet skills; fill gaps
 Knowledge in specific areas
 Proficiency with tools & equipment
 Experience with applications & systems
 Communication & language skills
 Amount and level of experience in given field
MIND MAP OF RESOURCES NEEDED
RFP
SUCCESSFUL ESTIMATING
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Use SMEs to Establish Benchmarks
Reference Past Projects/Lessons Learned
Factor Assumptions
Assess Skill Level
ESTIMATING TIME
O = Optimistic
P = Pessimistic
M = Most Likely (based on experience)
E = Estimated Time
E = O + P + (4xM)
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RISK ASSESSMENT MATRIX
Probability
(Extreme Risk)
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Impact
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SUMMARY PLANNING FLOWCHART
Project
Initiation
Risk
Mgmt
Planning
Requirements
Collection
Scope
Definition
WBS
Activity
Definition
Cost
Estimating
Activity
Resource
Estimating
Activity
Duration
Estimating
Activity
Sequence
Cost
Budgeting
Resource
Leveling
Constraint
Mgmt. &
Plan Optimiz.
Risk
ID
Qualitative
Risk
Analysis
Schedule
Dev.
Quantitative
Risk
Analysis
Risk
Response
Planning
Project
Plan
Dev.
Project
Baseline
Setting
GANTT OR BAR CHART
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List all Activities
Chunk into Common Groups
Determine Sequence
Determine Due Dates, Deadlines, etc.
Predecessors
Determine Personnel Resources
Create Chart
GANTT OR BAR CHART
Advantages
Disadvantages
Easy to Read & Understand
Critical Path not Easy to See
Easy to Identify Task
Discrepancies
Difficult to see Impact of
Delays
Calendar or Time Based
Inhibits Ability to see resources
Simple to Update
Hard to Evaluate Effects of
Change
GANTT CHART
PROGRAM EVALUATION AND REVIEW
TECHNIQUE (PERT) CHART
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Critical Path Method
List all Activities on Note Cards
Determine Activity Sequences
Determine Predecessors
Draw Dependencies between Tasks
Determine Durations
Great Chart
PERT CHART
WORKING THE PLAN
TEAM DEVELOPMENT
 Start-up Workshop—develop trust & interpersonal
relationships
matrix & virtual teams*
 Align project objectives with individual goals
 Build motivation-WIIFM
 Employ “influence without authority”
 Honest, open communications
 Choose appropriate tools
 Coach & mentor
WORKING THE PLAN
TEAM MANAGEMENT
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Involve in user-needs assessments
Confirm understanding of objectives, vision, etc.
Involve in project plan development
Build buy-in & commitment
Delegate responsibility & ownership
Determine project infrastructure to facilitate
productivity & effective information flow
WORKING THE PLAN
COMMUNICATING INFORMALLY
 MBWA once/week (reinforces trust, builds
relationships
 One-on-one casual meetings
 Luncheon updates
WORKING THE PLAN
COMMUNICATIONS PLANNING
 Review project infrastructure decisions &
determine how formal communications will occur
 Define internal reporting for entire PM
 Plan external communications for stakeholders
 Schedule routine communications
Project definition docs, project reviews, status
reports, briefings, logs of project issues, approved
changes, project closure reports
 Determine plan for archiving project data (PMIS,
Project Management Information System)
WORKING THE PLAN
CONDUCTING PROJECT REVIEWS
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At project life cycle or phase transitions
At major milestones or checkpoints
Following significant Project changes
When Project staff members join or leave
After reorganizations
At the end of the fiscal quarter
WORKING THE PLAN
PROJECT REVIEW AGENDA ITEMS
 Recognition of significant accomplishments
 Reinforcement of team management
 Review of Project objective
 Revalidation of project constraints & assumptions
 New Activity definition & risk identification
 Revisions to activity duration estimating & activity
sequencing
 Review of procurement administration
 Adjustments to Project infrastructure
 Analysis of project trends & changes
 Collection of lessons learned & opportunities for
process improvement
WORKING THE PLAN
COMMUNICATIONS PLANNING
 Refine Communications plan to meet needs of
sponsor, stakeholder, team
 Online data storage—consider security
 Access control issues
 Document hardware needs in communications
plan
 For virtual teams, install teleconferencing
equipment, if necessary
 Update plan as needed to improve visibility and
information flow throughout project
WORKING THE PLAN
PROJECT MONITORING
 Project tracking & control processes start with
baseline
 4 stage cycle
– Status Collection, inbound communications
– Comparing status data to baseline, conduct project variance
analysis, evaluation of project metrics
– Project Control, responding to timing or resource problems
(cost control, schedule control, integrated change control)
– Outbound communications, inform stakeholders, sponsor of
what happened on the project (performance reporting,
information distribution, project presentations)
WORK THE PLAN
DOCUMENT, DOCUMENT, DOCUMENT
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List of Team Members & Contact Info
Project Definition and Objectives
Scope Definition
WBS
Meeting Reports
Project Status Reports
Issues Log
Change Orders
WORK THE PLAN
DOCUMENT, DOCUMENT, DOCUMENT
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Contingency Plans
Cost/Budget Info
Management Reports
Non Disclosure Agreements (NDA)
WORK THE PLAN
PROJECT NOTEBOOK
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Organized, central location
Latest info
Management gain info easily
Creates history
AVOIDING PITFALLS
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Lack of information
Time Constraints/Time Wasters
Reactive vs. Proactive
Personnel Changes
– Internal
– External
 Financial Constraints
 Over allocation or Unavailability of Critical
Resources
 Loss Team Member
AVOIDING PITFALLS
 Information Hoarding
 Unproductive Meetings
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Distribute Agenda in Advance 24-48 hours in advance
Timed Agenda
Start & Stop on time
Spinning Wheels
 Summarize Key Points
 Get Consensus
 Plan Course of Action
– Use Parking Lot
– Scribe—Summary or Notes, Not Minutes, 24 hours
 Actions, Responsible, Timeline
AVOIDING PITFALLS
– Manage Meetings
 Round Robin for Comprehension
THAT’S A WRAP
GENERATING LESSONS LEARNED
Scheduled Project Closing Meeting
 Positive results
 Desirable changes; process improvement;
replacement
 Prioritization of recommendations
 Final thoughts from ALL contributors—Round
Robin
THAT’S A WRAP
GENERATING LESSONS LEARNED
Prior to Closing Meeting:
 Collect accurate, up-to-date, Project
documents & make available
 Brief to Exceptions
 Provide access to:
Final Project Reports
Actual and planned schedule information
Project integrated change-control history
Issue-management history & problem
escalations
– Project metrics & performance reports
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