Office of Innovations and Solution ACB-1 Project Management Principles and Practice for Managers
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Transcript Office of Innovations and Solution ACB-1 Project Management Principles and Practice for Managers
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
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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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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 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.
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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
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 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 Change Management plan
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Performance Measurement Tools
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 tangible 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 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
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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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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 or take 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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