Office of Innovations and Solution ACB-1 Project Management Principles and Practice for Managers
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Office of Innovations and Solution ACB-1 Project Management Principles and Practice for Managers Presented by: Pat A. Eigbe, PMP® Office of Innovations and Solutions, ATO-P February 17, 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 February 17, 2004 Pat A. Eigbe, PMP® 2 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 February 17, 2004 Pat A. Eigbe, PMP® 3 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. February 17, 2004 Pat A. Eigbe, PMP® 4 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. February 17, 2004 Pat A. Eigbe, PMP® 5 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. February 17, 2004 Pat A. Eigbe, PMP® 6 Project Management Terms IV FAA standard wbs1-0.ppt WBS Dictionary 3.1 Requirement to use FAA Standard WBS – Mandatory February 17, 2004 Pat A. Eigbe, PMP® 7 Project Management Terms V Deliverable – Tangible, verifiable work product or 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. February 17, 2004 Pat A. Eigbe, PMP® 8 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). February 17, 2004 Pat A. Eigbe, PMP® 9 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 February 17, 2004 Pat A. Eigbe, PMP® 10 Systems Engineering/PM Relationship – I PM Needs SE for Integrated PM System Design 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 February 17, 2004 Pat A. Eigbe, PMP® 11 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 Quality Specifications February 17, 2004 Pat A. Eigbe, PMP® 12 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 February 17, 2004 Pat A. Eigbe, PMP® 13 PMI Certification What is PMP® What PMP® is not PMP® Value to Holder & Employer PMP® Certification Process link – visit http://pm.act.faa.gov February 17, 2004 Pat A. Eigbe, PMP® 14 PM Process Groups Project Information Flow Initiating Processes Planning Processes Executing Processes Control Processes Closing Processes February 17, 2004 Pat A. Eigbe, PMP® 15 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 February 17, 2004 Report OK? Yes Project Completed!!! Pat A. Eigbe, PMP® 16 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 February 17, 2004 Pat A. Eigbe, PMP® 17 Planning Processes I Identify Life Cycle approach Evolutionary (AMS 6101, Section 2.2) Incremental Waterfall Risk Management plan February 17, 2004 Pat A. Eigbe, PMP® 18 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 February 17, 2004 Pat A. Eigbe, PMP® 19 Planning Processes III (Schedule Development) Update & Decompose WBS Identify activities Sequence Estimate duration Estimate cost Allocate resources to work packages Baseline schedule February 17, 2004 Pat A. Eigbe, PMP® 20 Planning Processes IV Risk management detail: Identification Analysis Response Procurement February 17, 2004 Pat A. Eigbe, PMP® 21 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 Change Management plan February 17, 2004 Pat A. Eigbe, PMP® 22 Performance Measurement Tools Variances Performance Indices Schedule performance Index (SPI) Cost performance Index (CPI) Earned Value Management System (EVMS) February 17, 2004 Pat A. Eigbe, PMP® 23 Earned Value Management System Highlights What is EVMS Planning for EVMS Tracking & Analysis Elements of EV Analysis Project Cost & Schedule Forecasting EV Reporting February 17, 2004 Pat A. Eigbe, PMP® 24 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 February 17, 2004 Pat A. Eigbe, PMP® 25 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 February 17, 2004 Pat A. Eigbe, PMP® 26 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 February 17, 2004 Pat A. Eigbe, PMP® 27 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 February 17, 2004 Pat A. Eigbe, PMP® 28 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 tangible deliverables Measured by duration of time used e.g. 10 weeks support is 50% complete at 5 weeks February 17, 2004 Pat A. Eigbe, PMP® 29 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 February 17, 2004 Pat A. Eigbe, PMP® 30 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 February 17, 2004 Pat A. Eigbe, PMP® 31 Elements of EV Analysis - II Cost Variance - Difference between budgeted cost of an activity & actual cost of that activity CV = EV - ACWP Schedule Variance - Difference between scheduled completion & actual completion of an activity SV = EV - BCWS February 17, 2004 Pat A. Eigbe, PMP® 32 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 February 17, 2004 Pat A. Eigbe, PMP® 33 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 February 17, 2004 Pat A. Eigbe, PMP® 34 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 February 17, 2004 Pat A. Eigbe, PMP® 35 EV Reporting Interpret the output of EV calculations Take corrective action as necessary Recommend or take corrective action as necessary February 17, 2004 Pat A. Eigbe, PMP® 36 Control Processes I Coordinate and control changes to project scope/requirements schedule budget Monitor and manage product quality Measure progress and report performance February 17, 2004 Pat A. Eigbe, PMP® 37 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 February 17, 2004 Pat A. Eigbe, PMP® 38 Closing Processes Close out contracts Resolve any outstanding issues Document lessons learned Evaluate project Archive all project documents February 17, 2004 Pat A. Eigbe, PMP® 39 Conclusion Defined Frequently used PM Terminologies Discussed Objectives of Adopting Project Management Principles. Discussed PM Processes, Tools & Techniques Discussed EVMS Overview Questions February 17, 2004 Pat A. Eigbe, PMP® 40 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 February 17, 2004 Pat A. Eigbe, PMP® 41 Questions/Need Help? http://pm.act.faa.gov Pat A. Eigbe, PMP® Ext. 5-7857 [email protected] February 17, 2004 Pat A. Eigbe, PMP® 42