Transcript Project Management A Tool For ATO Success

Project Management
A Tool For ATO Success
Presented by: Pat A. Eigbe, PMP®
Office of Innovations and Solutions, ATO-P
February 18, 2004
Briefing Outline
Project Management (PM) as a Tool
 Project Management Terminology
 PM Relationship to other Disciplines
 Project Management Processes
 Project Management Tools & Techniques
 Summary/Conclusion
 Questions

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Project Management as a Tool
Minimize Fire Drills
 Efficient Use of Resources
 Develop Better Metrics
 On-time and On-budget Product Delivery
 Apply Lessons Learned
 Better Communications Between
Stakeholders
 Make Proactive Decisions

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Communications
Understanding our
Environment
Tell the Marine to secure a building:
they will kill everybody and point guns at the building.
Tell the Air Force to secure a building:
they will drive everybody out and lease the building to the
highest bidder.
Tell the Army to secure a building:
they will surround the building and point guns at the house.
Tell the Navy to secure a building:
they will turn off all the lights, lock up the house, and go
home.
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Project Management (PM) Terms
Project - A temporary endeavor undertaken
to create a unique product or service.
 ATOP or VSCS - Project has a specific
purpose with a start and an end date.
 Project Management - the Application of
Knowledge, Skills, Tools, and Techniques to
Project Activities to Meet Project
Requirements.

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Project Management Terms II

Program - A group of related projects
managed in a coordinated way. Programs
usually include an element of ongoing
activity.
CPDLC, SMA, URET CCLD, pFAST,as FFP1
 PM Tools Development as part of Program
Management


A Project/Program Manager (PM) - The
Individual Responsible for Managing a
Project/Program.
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Project Management Terms III
 Work
Breakdown Structure (WBS) “A deliverable-oriented grouping of
project elements that organizes and
defines the total scope of the project.
Each descending level represents an
increasingly detailed definition of a
project work.
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Project Management Terms IV
 FAA standard
wbs1-0.ppt
 WBS Dictionary 3.1
 Requirement to use FAA Standard
WBS – Mandatory
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Project Management Terms V



Deliverable – Tangible, verifiable work product/service.
Work Package – A deliverable at the lowest level of the
work breakdown structure. A work package may be
divided into activities.
Activity - Work elements with expected duration, cost, &
resources that may be subdivided into tasks.
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Project Management Terms – VI
Stakeholder – Individuals or Organizations
that will be Impacted by the Outcome of a
Project.
 OBS: An Organizational Chart Relating
Work Packages to Organization Units.
 Responsibility Matrix: Relates Organization
Structure to WBS & Ensures that each
Element of the Project’s Scope is Assigned
to a Responsible Individual(s).

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Project Management:
Relationship to Others Disciplines
The PMBOK™
Project Management
Knowledge and
Practice
General Management
Knowledge and
Practice
Application Area
Knowledge and
Practice
Figure is conceptual and overlaps are NOT proportional
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Systems Engineering/PM
Relationship – I

PM Needs SE for
Integrated PM System Design & Implementation
 Requirements for HW and SW Tools


SE Needs PM for
Planning and tracking
 Managing Resources



PM System Designer Must Understand both
SE Not Necessary for PM Practitioners
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Systems Engineering/PM
Relationship - II

Risk Management
PM - Schedule, Cost & Technical/Quality
 SE – Compatibility of Components of a System
or Sub-System


Quality Management
PM - Process for Producing the Product
 SE - Ensure Product Meets the Technical or
Quality Specifications

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Systems Engineering/PM
Relationship - III

Configuration Management
PM - Ensure Integrity of Schedule and System for
Schedule Management
 SE - Ensure Integrity of the System as Designed


Change Management
PM - Changes to Project Scope
 SE - Changes to System Requirement


Measurement
PM – Program cost & schedule performance
 SE – Technical Performance

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PMI Certification
What is PMP®
 What PMP® is not
 PMP® Value to Holder & Employer
 PMP® Certification Process link – visit
 http://pm.act.faa.gov

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PM Process Groups
Project Information Flow
Initiating
Processes
Planning
Processes
Executing
Processes
Control
Processes
Closing
Processes
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Create Project Agreement/PD/SLA
Identify Project & Sponsor
Initiation
PM Process Flow
Start
No
1.5.1.5
1.5.1.1
PD/SLA OK?
Create the Project Plan (PMIP)
1.5.1.6
1.5.2
Yes
Planning
Create Project Team & Team Contract
Review/ Revise Plan (PMIP)
No
1.5.2
Yes
Plan OK?
Yes
Execution
Execute Plan & Create Deliverables
Need Changes/
Corrective Action?
1.5.3
Control
Monitor/Review Progress & Deliver Products
1.5.4
No
No
Deliver Final Deliverables/
Deliverables
Accepted?
1.5.4.5
Yes
Closing
Perform Post Project Evaluation & Prepare Close-Out report
1.5.5
No
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Report
OK?
Yes
Project
Completed!!!
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Initiation Processes
Identify project and sponsor
 Appoint Project Manager
 Train team on

Project Management Process
 Project Plan (PMIP)


Develop Program Directive to Include
WBS that Covers the Scope
 High-level Milestones
 Budget resources

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Planning Processes I

Identify Life Cycle approach
Evolutionary (AMS 6101, Section 2.2)
 Incremental
 Waterfall


Risk Management plan
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Planning Processes II
Get approval for Program Directive
 Identify quality standards - use specs,
IEEE, ISO, PMBOK®
 Organizational structure
 Communications - who needs, what
 Acquire human resources for projects

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Planning Processes III (Schedule
Development)
Update & Decompose WBS
 Identify activities
 Sequence
 Estimate duration
 Estimate cost
 Allocate resources to work packages
 Baseline schedule

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Planning Processes IV

Risk management detail:
Identification
 Analysis
 Response
 Procurement

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Implementation/Execution
Processes
Use the PMIP to execute project activities
 Assess Technical Performance to assure
product acceptance
 Distribute project information
 Make purchases
 Develop team skills/competencies
 Develop a Configuration Management plan

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Performance Measurement
Variances
 Performance Indices

Schedule performance Index (SPI)
 Cost performance Index (CPI)


Earned Value Management System (EVMS)
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Earned Value Management System
Highlights
What is EVMS
 Planning for EVMS
 Tracking & Analysis
 Elements of EV Analysis
 Project Cost & Schedule Forecasting
 EV Reporting

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Earned Value Management
System (EVMS) - I
EV - Tool for Measuring Project
Performance
 Integrates Cost, Scope & Schedule
measurements
 Compares work actually accomplished to
work planned
 EV is an Early Warning System
 Helps management make proactive
decisions to keep projects on course

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Earned Value Management
System (EVMS) - II

Involves Calculating 3 key Elements
Budget - BCWS
 Actual Cost - ACWP
 Earned Value/Physical Progress - BCWP


Basis for variance analysis
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Planning for EVMS - I
Create a work breakdown structure
 Organize work into discrete work packages
and activities
 Allocate a budget to each of the activities
 Develop a schedule and Assign resources
 Must include all project work in the
schedule
 Establish the Project Baseline

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Planning for EVMS - II
Award performance credit for physical %
complete:
 0-100

Short duration tasks < 160 hours
 EV is Zero until activity is complete


50-100
Duration less than 600 hours
 50% at start of activity & 50% at completion

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Planning for EVMS - III

Interim milestone;
Duration less than 600 hours
 Based on completed milestone for task


Level of Effort (LOE)
Long duration & consistent tasks
 Difficult to measure - no deliverables
 Measured by duration of time used e.g. 10
weeks support is 50% complete at 5 weeks

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Tracking & Analysis

Each update cycle/Reporting Period:
Obtain physical % complete for each task
 Calculate EV for each task
 Sum up EV for all tasks as project EV
 Calculate actual expenditure for actual work
completed during the period
 Compare the Cumulative EV to Actual
expenditure

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Elements of EV Analysis - I
Performance indices relate value of work
performed to dollar spent. e.g. CPI = 0.65
means that for every dollar spent, actual
value of the work performed is $0.65.
 Cumulative CPI used to forecast project
cost at completion
 Cumulative SPI used to forecast project
completion date

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Elements of EV Analysis - II

Cost Variance - Difference between
budgeted cost an activity & actual cost of
that activity


CV = EV - ACWP
Schedule Variance - Difference between
scheduled completion & actual completion
of an activity

SV = EV - BCWS
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Elements of EV Analysis - III
SPI – EV/Planned Value
 SPI => 1.0, Project Schedule performing as
planned or better
 SPI < 1.0, Project not performing as
planned - needs help

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Elements of EV Analysis - IV
CPI – EV/Actual Cost
 CPI => 1.0, Project Cost performing as
planned or better
 CPI < 1.0, Project Cost not performing as
planned - needs help
 % Over/Under Budget = CAC - BCWS

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Tracking & Analysis

Each update cycle/Reporting Period:
Obtain physical % complete for each task
 Calculate EV for each task
 Sum up EV for all tasks as project EV
 Calculate actual expenditure for actual work
completed during the period
 Compare the Cumulative EV to Actual
expenditure

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Project Cost & Schedule Forecast
Methods

Estimate at Completion (EAC) is total cost
to complete an activity, work package, or a
project expressed as:


EAC = Actuals-to-date + Estimate to complete
(ETC)
Cost EAC = BAC/CPI
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EV Reporting
Interpret the output of EV calculations
 Take corrective action as necessary
 Recommend corrective action as necessary

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Control Processes I

Coordinate and control changes to project
scope/requirements
 schedule
 budget

Monitor and manage product quality
 Measure progress and report performance

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Control Processes II

Monitor and control risks
keep track of identified risks
 monitor residual risks
 identify new risks
 ensure execution of risk plans
 assess effectiveness in reducing risk

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Closing Processes
Close out contracts
 Resolve any outstanding issues
 Document lessons learned
 Evaluate project
 Archive all project documents

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Conclusion
Defined Frequently used PM Terminologies
 Discussed Objectives of Adopting Project
Management Principles.
 Discussed PM Processes, Tools &
Techniques
 Discussed EVMS Overview
 Questions

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References






Project Management Institute (PMI), 2000. A Guide to the
Project Management Body of Knowledge (the PMBOK®
Guide)
Stratton R. W., 1999. Improving SPI and CPI Calculations
on LOE Heavy Programs, Proceedings of the 30th Annual
PMI Seminars & Symposium
Fleming and Koppeman, 1996. Earned Value Project
Management.
Ibbs W & Reginato J., 2002. Quantifying the Value of
Project Management
Kerzner H, 2003. Project Management: A Systems
Approach to Planning, Scheduling, and Controlling.
FAST @ http://fast.faa.gov/wbs/wbssec.htm
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Questions/Need Help?
http://pm.act.faa.gov
Pat A. Eigbe, PMP®
Ext. 5-7857
[email protected]
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