Fundamentals of Project Management

Fundamentals of Project Management
April 2002 Fundamentals of Project Management Dr. George F. Jergeas Project Management Specialization University of Calgary University of Calgary/APEGGA

Schedule Day 1 Game Introduction PMI stuff Step 1 - Define phase
April 2002 Schedule Day 1 Game Introduction PMI stuff Step 1 - Define phase Step 2 - Plan phase Sequence activities Time estimate Day 2 Cost estimate Step 3 - Organize phase Select team and PM Step 4 - Control phase Step 5 - Close out phase University of Calgary/APEGGA

References This section is based on:
April 2002 References This section is based on: The 5-Phased Project Management- A Practical Planning and Implementation Guide by Joseph Weiss and Robert K. Wysocki Construction Project Administration by Edward R. Fisk Project Management Institute: PMBOK Guide, Instructors’ notes Note: Some material is presented in several different formats to exemplify ways of approaching the tools and techniques University of Calgary/APEGGA

April 2002 Game Your company is to build a single span bridge using Lego bricks. The span of the bridge is 90 cm and the centre point must be at least 10 cm higher than the base Bridge must be self-standing and stable enough to be measured Time is of the essence to the client and to your company University of Calgary/APEGGA

April 2002 University of Calgary/APEGGA

The Blind Men/Women and the Elephant
April 2002 The Blind Men/Women and the Elephant Strong opinions Each is partly right All were wrong Not one of them saw the elephant The moral of the story from a project management perspective… Many experience or read about an aspect or element of project management and think they know it ALL Accidental Project Managers are out there in great numbers University of Calgary/APEGGA

Learning Objectives Your job! Project Management Basics
April 2002 Your job! Learning Objectives Project Management Basics 9 Knowledge areas Tools and technique When and why you use them Business and social aspects of project management Avoid becoming an Accidental Project Manager The session will not turn you into instant project managers Begin to see more of the PM “elephant” University of Calgary/APEGGA

Agenda PART 1: Basic concepts PART 2: Technical aspects
April 2002 Agenda PART 1: Basic concepts What is project and project management Key terms and concepts Reasons for project failure/success PART 2: Technical aspects 9 project management knowledge areas Inputs, processes, outputs Sample tools and techniques University of Calgary/APEGGA

What is a project? A specific, finite task to be accomplished
April 2002 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 University of Calgary/APEGGA

Projects Vary in Size and Scope
April 2002 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 University of Calgary/APEGGA

Project Characteristics
April 2002 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 University of Calgary/APEGGA

When is a Project a Project?
April 2002 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 University of Calgary/APEGGA

April 2002 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 University of Calgary/APEGGA

Slack Monte Carlo Analysis PCR EAC Scope creep Network diagram Charter
April 2002 Slack Monte Carlo Analysis PCR EAC Scope creep Network diagram Charter Variance reports MSProject CPM BCWP, ACWP, ACWS, BCWS Float S-Curve MS Project Control charts CPI, SPI WBS OBS, RAM Gantt Chart PERT Chart Earned value RACI PMP ABT Workbench University of Calgary/APEGGA

What is Project Management?
April 2002 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 University of Calgary/APEGGA

Business and Social Aspects of Project Management
April 2002 Business and Social Aspects of Project Management Hard and soft skills Technical aspects of project management Interpersonal skills Influence Politicking Negotiation University of Calgary/APEGGA

April 2002 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? University of Calgary/APEGGA

Project Management Challenges
April 2002 Project Management Challenges Lack of a common understanding on the question “What is project management???” Managing stakeholders, expectations, teams, projects, uncertainty Measuring project management results Methodology issues University of Calgary/APEGGA

Value of Project Management (Why are we doing this?)
April 2002 Value of Project Management (Why are we doing this?) Improve project/program/firm performance as measured by efficiency, effectiveness Competitive advantage through competency Be more “Successful” Because management said so University of Calgary/APEGGA

Value of Project Management (Why are we doing this?)
April 2002 Value of Project Management (Why are we doing this?) Proactive vs. reactive Root out ill-conceived, directionless projects Increase visibility by providing roadmaps Because of what marketing/sales promised the client University of Calgary/APEGGA

Project Management Team
April 2002 Project Management Team Project Sponsor(s) Decision maker, funder, champion Project Manager Manages the big picture Project Leads Manage parts of a project University of Calgary/APEGGA

Project Management Team
April 2002 Project Management Team Project Team Work on specific tasks Stakeholders Vested interests Many of them Keep them happy University of Calgary/APEGGA

Major Causes of Project Failure
April 2002 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 University of Calgary/APEGGA

Major Causes of Project Failure
April 2002 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 University of Calgary/APEGGA

Major Causes of Project Success
April 2002 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 University of Calgary/APEGGA

Major Causes of Project Success
April 2002 Major Causes of Project Success A constructive goal-oriented culture Technically competent team Effective (and committed) team Excellent communication Trust University of Calgary/APEGGA

Introduction Tools & techniques are interchangeable between phases
April 2002 Tools & techniques are interchangeable between phases Introduction PART 1: Basic concepts What is project management Key terms and concepts Reasons for project failure/success PART 2: Technical aspects 9 project management knowledge areas Inputs, processes, outputs Sample tools and techniques Use them early & often in the project University of Calgary/APEGGA

Project Management Knowledge Areas
April 2002 Project Management Knowledge Areas Scope Time Cost Human Resources Communication Procurement Quality Risk Management Integration INTEGRATION University of Calgary/APEGGA

Knowledge Areas and Key Terms
April 2002 Knowledge Areas and Key Terms A project manager juggles 9 + balls (knowledge areas) and many tools and techniques University of Calgary/APEGGA

Scope Management KA1 Initiate the project
April 2002 KA1 Scope Management Initiate the project Feasibility, market, customer or business need Environmental analysis, business case Project selection practices and management decision practices Project link to the firm’s strategy or corporate goals University of Calgary/APEGGA

Scope Management KA1 Initiate the project Identify the project manager
April 2002 KA1 Scope Management Initiate the project Identify the project manager Develop a charter Formally recognize the existence of the project Include the business need and product description, constraints and assumptions Approval to proceed Funding, authority, sponsor University of Calgary/APEGGA

Charter links http://web.mit.edu/pm/devcharter.html
April 2002 Charter links e.html University of Calgary/APEGGA

Charter links http://www.pmi.org/standards/wbscharter.htm
April 2002 Charter links University of Calgary/APEGGA

Scope Management Plan and define the scope in detail
April 2002 Scope Management Plan and define the scope in detail Conduct a cost/benefit analysis, consider alternatives, get expert opinion and review historical databases, brainstorm What is in scope? What is out of scope? What are the criteria for completing phases? University of Calgary/APEGGA

Scope Management Plan and define the scope in detail
April 2002 Scope Management Plan and define the scope in detail Develop a work breakdown structure (WBS) Create a scope statement with assumptions and constraints Project justification, product description, deliverables, success criteria, scope management plan Use for future project decisions University of Calgary/APEGGA

Scope Management Verify the scope Control the scope
April 2002 Scope Management Verify the scope What is the process and criteria for accepting the scope of work delivered? Work results and documents Inspection Acceptance form Control the scope Performance reports, change requests, issues management form, scope management plan, corrective action, lessons learned University of Calgary/APEGGA

Scope Tips Be inclusive – involve stakeholders
April 2002 Scope Tips Be inclusive – involve stakeholders Work on securing and maintaining their commitment to the project Commitment: funding, approvals Spend more time planning the project…then follow it (with updates of course) University of Calgary/APEGGA

Scope Tips Define project success and communicate it
April 2002 Scope Tips Define project success and communicate it Steering committee with authority and decision making power Supportive and decisive sponsor University of Calgary/APEGGA

Time Management KA2 Purpose: Create a realistic schedule with the team
April 2002 KA2 Time Management Purpose: Create a realistic schedule with the team Identify the activities (tasks) Activities are action steps (HOW) and different from deliverables that are tangible results (WHAT) Use the WBS and scope statement Develop activity lists and revise the WBS Sequence activities Consider dependencies University of Calgary/APEGGA

Time Management Estimate durations (time)
April 2002 Time Management Estimate durations (time) Top down, bottom up estimates, Monte Carlo simulations Estimating formulae (PERT estimates) Expert opinion Consider resource capabilities Look at similar projects Develop the schedule (Gantt chart) Document assumptions and decisions Use project management scheduling software e.g. MS Project University of Calgary/APEGGA

Estimating formulae PERT Estimate (weighted average)
April 2002 Estimating formulae PERT Estimate (weighted average) [Pessimistic + (4 x Likely) + Optimistic]/6 Pessimistic time to get to work = 30 min Optimistic time to get to work = 10 min Likely time to get to work = 15 minutes PERT Estimate = 30 + (4x15) + 10/6 100/6=16.6 = 17 min University of Calgary/APEGGA

April 2002 MS Project HELP University of Calgary/APEGGA

Planning & Scheduling Software
April 2002 Planning & Scheduling Software University of Calgary/APEGGA

Time Management Control the schedule
April 2002 Time Management Control the schedule Performance reports, change requests, time management plan, corrective action, lessons learned E.g. baseline Gantt chart and then update Frequency Roles and responsibilities Control techniques e.g. meetings, 1:1 University of Calgary/APEGGA

Cost Management KA3 Plan resources (people, equipment, materials)
April 2002 KA3 Cost Management Plan resources (people, equipment, materials) Consider WBS, scope statement, organizational policies, staff pool Identify resource requirements Cost centers at Your company? Time is money University of Calgary/APEGGA

Cost Management Cost budgeting Control costs Resource leveling
April 2002 Cost Management Cost budgeting Resource leveling Cost baseline Control costs Performance reports, change requests, cost management plan, corrective action, lessons learned e.g. budgeted, actual, variance (with explanation) University of Calgary/APEGGA

Time and Cost Tips Measure twice, cut once
April 2002 Measure twice, cut once Time and Cost Tips Its OK to ask. Talk to subject matter experts Avoid single point estimates, use validated range estimates Factor in the learning curve, resource productivity, experience level etc. University of Calgary/APEGGA

April 2002 Time and Cost Tips Use the appropriate tools, techniques, rules of thumb Document assumptions for estimates Negotiate University of Calgary/APEGGA

Quality Management KA4 Plan for quality
April 2002 KA4 Quality Management Plan for quality Quality product and quality project management practices Quality standards Conform to specifications (project produces what it said it would) Fitness for use (satisfy needs) Prevention vs. inspection Plan, do, check, act Benchmark, checklists, flow charts, cause/effect diagrams University of Calgary/APEGGA

Quality Management Quality management plan Quality Assurance
April 2002 Quality Management Quality management plan Organizational structure, processes, resources, procedures, responsibilities to ensure quality plan is implemented Quality metrics Checklists Quality Assurance Follow the quality management plan, audits, improvements University of Calgary/APEGGA

Quality Management Quality control Process and product results
April 2002 Quality Management Quality control Process and product results Control charts, Pareto diagrams, trend analysis University of Calgary/APEGGA

Quality Tips Start with a clear view of quality in mind
April 2002 Quality Tips Start with a clear view of quality in mind What is quality? Implications for ALL knowledge areas University of Calgary/APEGGA

Human Resources Management
April 2002 KA5 Human Resources Management Organizational plan Organizational chart, roles and responsibilities Linkages between project and functional areas, and other business units. Staffing needs Unions, human resources department/practices, constraints RACI+ Staffing plan (training, orientation, job descriptions, performance evaluations, redeployment), project organizational chart University of Calgary/APEGGA

RACI Chart 1 2 Task Responsible party Accountable to Coordinate with
April 2002 RACI Chart Task Responsible party Accountable to Coordinate with Inform 1 2 University of Calgary/APEGGA

Human Resources Management
April 2002 Human Resources Management Get staff Assess experience, interests, personal characteristics, availability Negotiate Beg and borrow but don’t steal Develop the team Team building, reward and recognition program, support practices Don’t “control” people Managerial control is different from micromanaging University of Calgary/APEGGA

Human Resources Management Tips
April 2002 Human Resources Management Tips Listen to understand Be responsive Provide positive feedback Act on problems in a timely manner Deal with problems They won’t go away, but will get BIGGER Provide constructive criticism Document appropriately Take time to have FUN University of Calgary/APEGGA

Communications Management
April 2002 KA6 Communications Management Develop the project communication plan Stakeholder analysis Information to be shared (to who, what, how, when, why) Technology Distribute information Project databases, filing system, software / hardware Report up, down and across the firm Common vocabulary University of Calgary/APEGGA

Communications Management
April 2002 Communications Management Report performance Project plan, work results Project performance reports Variance reports, trend analysis, change requests Report the Good, Bad & Ugly Administrative closure Knowledge management Archives Acceptance forms Lessons learned Hiding things makes it worse! University of Calgary/APEGGA

Sample communication formats
April 2002 Sample communication formats Status reports Team meetings Project files PR initiatives Newsletters Databases Website RACI Posters Coffee room chats Milestone celebrations Kickoff meeting Close out meeting Lessons learned sessions Paraphrase & Validate Drawings Schedule update Use what works and fits the situation - but use them...often University of Calgary/APEGGA

Communications Management Tips
April 2002 Communications Management Tips If you think you have communicated enough…go back and do it again Use different formats Frequently use modes of communication that allow you to “see the whites of their eyes” University of Calgary/APEGGA

Risk management is a process
April 2002 KA7 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. Risk management is a process University of Calgary/APEGGA

Risk Management Quantify risks Risk interactions, risk tolerance
April 2002 Risk Management Quantify risks Risk interactions, risk tolerance High, Medium, Low (HML) - qualitative Expected Monetary Value (EMV) - quantitative University of Calgary/APEGGA

Risk Quantification Technique: High, Medium, Low (HML)
April 2002 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 University of Calgary/APEGGA

Risk Quantification Technique: Expected Monetary Value (EMV)
April 2002 Risk Quantification Technique: Expected Monetary Value (EMV) EMV=risk event probability X risk event value 25% chance of rain X $1,000 impact of damage to convertible car interior = EMV of $250 75% chance of rain X $1,000 impact of damage to convertible car interior = EMV of $750 University of Calgary/APEGGA

Risk Management Develop risk response plan
April 2002 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 University of Calgary/APEGGA

Risk Management Control risk responses
April 2002 Risk Management Control risk responses Workarounds (defined as – when it hits the fan unexpectedly and you need to deal with it then and there) Ongoing process of risk management Corrective action Update risk management plan University of Calgary/APEGGA

April 2002 Risk Management Tips Start Risk Management at the beginning of the project Review risks throughout the project (e.g. weekly, monthly) Update and project schedules, budget, staffing etc. as risk management plans are changed University of Calgary/APEGGA

Procurement Management
April 2002 KA8 Procurement Management Plan procurement needs (goods and services external to the firm that you need to deliver the product) Make or buy decisions Contract type options (risk sharing) Solicitation Procurement management plan Vendor selection process and criteria Proposals, contracts, legal issues University of Calgary/APEGGA

Procurement Management
April 2002 Procurement Management Select and manage sources (vendors, partners) Negotiations Manage contracts Close contracts Formal acceptance and closure University of Calgary/APEGGA

Procurement Tips Develop charters with vendors and partners
April 2002 Procurement Tips Develop charters with vendors and partners Rules of the game, conflict management guidelines, escalation process Take lead times into account Do risk management on procurement (and all other knowledge areas) University of Calgary/APEGGA

Integration Management
April 2002 KA9 Integration Management Pulling all the knowledge areas together As you go through the various project phases, consider the links between knowledge areas Plan the plan Execute the plan Project deliverables and project management outputs Control the plan University of Calgary/APEGGA

5-Step Project Management
April 2002 5-Step Project Management University of Calgary/APEGGA

5 Step Project Management PLANNING IMPLEMENTATION
April 2002 5 Step Project Management PLANNING IMPLEMENTATION CONTROL DEFINE PLAN ORGANIZE CLOSE Identify project activities Determine Personnel Needs Define Management Style Obtain Client Acceptance Install Deliverables Document the Project Issue Final Report Conduct Post- Implementation Audit State the Problem Identify Project Goals Estimate time and cost Recruit Project Manger Establish Control Tools Recruit Project Team Prepare Status Reports Review Project Schedule Issue Change Orders List the Objectives Sequence Project Activities Determine Preliminary Resources Identify Critical Activities Organize Project Team Identify Assumptions and Risks Write Project Proposal Assign Work Packages Project overview WBS Recruit Criteria Variance Reports Final Report Project network Define Work packages Status Reports Audit Reports Critical Path Assign Work Packages Staff Allocation Reports University of Calgary/APEGGA

Step 1- Define the Project
April 2002 Step 1- Define the Project University of Calgary/APEGGA

Agenda State the problem Develop project goal
April 2002 Agenda State the problem Develop project goal Develop project objectives Identify assumptions and risks Identify stakeholders Criteria for project success Project Charter/overview document University of Calgary/APEGGA

April 2002 5 Step Project Management PLANNING IMPLEMENTATION CONTROL DEFINE PLAN ORGANIZE CLOSE Identify project activities Determine Personnel Needs Define Management Style Obtain Client Acceptance Install Deliverables Document the Project Issue Final Report Conduct Post- Implementation Audit State the Problem Identify Project Goals Estimate time and cost Recruit Project Manger Establish Control Tools Recruit Project Team Prepare Status Reports Review Project Schedule Issue Change Orders List the Objectives Sequence Project Activities Determine Preliminary Resources Identify Critical Activities Organize Project Team Identify Assumptions and Risks Write Project Proposal Assign Work Packages Project overview WBS Recruit Criteria Variance Reports Final Report Project network Define Work packages Status Reports Audit Reports Critical Path Assign Work Packages Staff Allocation Reports University of Calgary/APEGGA

State the Problem/Opportunity
April 2002 State the Problem/Opportunity Specific questions must be asked before a project begins: What is the problem and what are the opportunities? Do we really need the project? If these questions can not be answered, then: Pick the wrong project The project will probably not succeed University of Calgary/APEGGA

State the Problem/Opportunity
April 2002 State the Problem/Opportunity Document the need and the benefits to the organization for undertaking the project 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 A need that must be addressed New product, service, process, facility, or system It may involve opening a new market University of Calgary/APEGGA

April 2002 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.” University of Calgary/APEGGA

April 2002 State Project Goal A statement of purpose and direction helps to direct the course of the project effort Initiates the project Serves as a point of reference for settling disputes and misunderstandings Clarifies expectations Helps in justifying requests for resources University of Calgary/APEGGA

Goal Statements Action oriented Short and simple Understandable
April 2002 Goal Statements Action oriented Short and simple Understandable 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 University of Calgary/APEGGA

April 2002 Goal Statements 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 University of Calgary/APEGGA

April 2002 Example Reverse the downward trend in membership and annual conference attendance by organizing a highly successful conference University of Calgary/APEGGA

Develop Project Objectives
April 2002 Develop Project Objectives Objectives represent major 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 University of Calgary/APEGGA

Example Develop the Program Set the Conference Site and Date
April 2002 Example Develop the Program Set the Conference Site and Date Design and Implement the Marketing Plan University of Calgary/APEGGA

Criteria for Evaluating Project Success
April 2002 Criteria for Evaluating Project Success Project expectations: Project on time Within budget According to specifications Happy client University of Calgary/APEGGA

April 2002 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 University of Calgary/APEGGA

Identifying Assumptions and Risks
April 2002 Identifying 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 University of Calgary/APEGGA

April 2002 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 University of Calgary/APEGGA

Risk Management Template
April 2002 Risk Management Template Monitoring Schedule Response Plan Owner Impact Probability Risk University of Calgary/APEGGA

April 2002 Stakeholders Individual or organisations actively involved in the project or directly or indirectly affected by its execution or results 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 University of Calgary/APEGGA

Who are the People Involved?
April 2002 Who are the People Involved? Owner, Contractor, Consultant (in-house and outside) Sub-consultants, Subcontractors Suppliers (Vendors) Trade unions End users Operators University of Calgary/APEGGA

April 2002 External Issues Factors within a Project Manager’s sphere of responsibility, but which he or she has no formal control or authority over: Corporate interests Operating priorities Financial interests Government interests and actions Public interests Economic conditions Social priorities University of Calgary/APEGGA

Stakeholders How to find them? How to involve them?
April 2002 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 University of Calgary/APEGGA

Stakeholders How to work with them? How to keep them on side?
April 2002 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 University of Calgary/APEGGA

Common Concerns Political fallout Social, cultural, economic impacts
April 2002 Common Concerns Political fallout Social, cultural, economic impacts Benefits: Training Employment Business opportunity “Way of life” Just go away! University of Calgary/APEGGA

Common Concerns Public Involvement - Right to know
April 2002 Common Concerns Public Involvement - Right to know Environmental protection and conservation Loss of control Fear of change Power and influence Native land claims University of Calgary/APEGGA

Stakeholder Management Process
April 2002 Stakeholder Management Process Monitoring Analysis Assessment Applications Educate and communicate Mitigate Compensate Appraisal and feedback University of Calgary/APEGGA

Fundamentals of Project Management
April 2002 Stakeholder Analysis STAKEHOLDER Their Objective/Purpose Their Strategy Their Potential Impact on the project How They Operate Where they gain Support How to Manage them and your plan for mitigation Fundamentals of Project Management Tool Kit University of Calgary/APEGGA

Summary Understand the role of the various stakeholders
April 2002 Summary Understand the role of the various stakeholders Identify the real nature of each stakeholder and their interest in the project Understand their motivation and behaviour University of Calgary/APEGGA

April 2002 Summary Issues external to the project that can impact the outcome of a project Project manager should: Understand what they are Consider them early Analyze their potential impact Decide which to mitigate and have a plan University of Calgary/APEGGA

Summary Assess how they will react to various approaches
April 2002 Summary Assess how they will react to various approaches Remember that projects managed in ignorance of External Influences: Never get off the ground Mid-flight crash Technical success but commercial failure University of Calgary/APEGGA

Charter/Overview Document
April 2002 Charter/Overview Document The “define” phase focuses on producing a project Charter/Overview document which is used as: A tool in the initial “go/no go” decision by management A general information document for other managers An early statement of the project goal and direction A statement of the problems and opportunities to be addressed by the project University of Calgary/APEGGA

Charter/Overview Document
April 2002 Charter/Overview Document Once the project is approved for go ahead, the Project Charter/Overview 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 University of Calgary/APEGGA

Project overview Project Name - PM Conference Project Manager
April 2002 Project overview 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. Develop the Program 2. Set the Conference Site and Date 3. 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. Prepared by Date Approved by Date University of Calgary/APEGGA

Summary When defining a project you should be able to:
April 2002 Summary When defining a project you should be able to: Describe what is expected Define the project characteristics Develop a project Charter/overview Problem statement Project goal and objectives State the risks and assumptions State success criteria University of Calgary/APEGGA

April 2002 Exercise In groups develop a Project Charter/Overview document” for a project you currently involved with Please use “Tool Kit” attached at the conclusion of this book University of Calgary/APEGGA

April 2002 Step 2 - Plan the Project University of Calgary/APEGGA

Agenda Work Breakdown Structures (WBS) Estimate Time and Cost
April 2002 Agenda Work Breakdown Structures (WBS) Estimate Time and Cost University of Calgary/APEGGA

April 2002 5 Step Project Management PLANNING IMPLEMENTATION DEFINE PLAN ORGANIZE CONTROL CLOSE Identify project activities Determine Personnel Needs Define Management Style Obtain Client Acceptance Install Deliverables Document the Project Issue Final Report Conduct Post- Implementation Audit State the Problem Identify Project Goals Estimate time and cost Recruit Project Manger Establish Control Tools List the Objectives Sequence Project Activities Recruit Project Team Prepare Status Reports Review Project Schedule Issue Change Orders Determine Preliminary Resources Identify Critical activities Organise Project Team Identify Assumptions and Risks Write Project Proposal Assign Work Packages Project overview WBS Recruit Criteria Variance Reports Final Report Project network Define Work packages Status Reports Audit Reports Critical Path Assign Work Packages Staff Allocation Reports University of Calgary/APEGGA

Work Breakdown Structure (WBS)
April 2002 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 Foundation for the definition, planning, organising and controlling of the project University of Calgary/APEGGA

Composition of a Project WBS
April 2002 Composition of a Project WBS Overall goal Objective Objective Objective Activities Activities Activities University of Calgary/APEGGA

April 2002 WBS Activities in the WBS are broken-down until the entire project is displayed as a network of separately identified activities The breakdown of activities continues until there are no overlapping activities University of Calgary/APEGGA

WBS Each activity should be: Status and completion are easily measured
April 2002 WBS Each activity should be: 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 assigned University of Calgary/APEGGA

The 5-step procedure: Example
April 2002 The 5-step procedure: 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 University of Calgary/APEGGA

April 2002 The 5-step procedure: 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 University of Calgary/APEGGA

April 2002 The 5-step procedure: Example 3. Check each activity for compliance with activity characteristics and further partition any that do not comply Prepare Handouts Obtain Handout Materials from Speakers Prepare and Print Conference Notebook University of Calgary/APEGGA

WBS Worksheet -PM Conference
April 2002 University of Calgary/APEGGA

Hierarchical Representation
April 2002 Hierarchical Representation CONFERENCE PLANNING PROGRAM SITE MARKETING THEME MATERIALS SPEAKERS DATE PLACE LISTS BROCHURE REGISTER OBTAIN MATERIALS PREPARE KITS DESIGN BROCHURE MAIL BROCHURE University of Calgary/APEGGA

Estimating Activity Time
April 2002 Estimating Activity Time Time to complete a task is random: Skill levels and knowledge of the individuals Machine/equipment variations Material availability Unexpected events Illness Strikes Employee turnover and accidents Changed soil/site conditions University of Calgary/APEGGA

April 2002 Estimating Activity Time We know unexpected events and occurrences will happen but are unable to predict the likelihood with any confidence We must however account for the possibility of the occurrence of these events University of Calgary/APEGGA

April 2002 Estimating Activity Time Use a statistical relationship if you can estimate Optimistic completion Pessimistic completion time Most likely completion time Can acquire this information from discussions with individuals that have first hand experience in projects University of Calgary/APEGGA

April 2002 Estimating Activity Time Optimistic Completion Time - is the time the activity will take if everything goes right Pessimistic Completion Time - is the time the activity will take if everything that can go wrong does go wrong but the project is still completed Most Likely Completion Time - is the time required under normal circumstances It can also be the completion time that has occurred most frequently in similar circumstances University of Calgary/APEGGA

April 2002 Estimating Activity Time To compute the expected duration time the following formula is used: E = (O+4M+P)/6 E = Expected duration time O = Optimistic time M = Most likely time P = Pessimistic time University of Calgary/APEGGA

Estimated times for conference planning
April 2002 Estimated times for conference planning ACTIVITY TIME IN WEEKS (O) (M) (P) (E) A Set conference date B Establish theme & program C Select conference site D Obtain mailing labels E Develop brochure University of Calgary/APEGGA

Estimated times for conference planning
April 2002 Estimated times for conference planning ACTIVITY TIME IN WEEKS (O) (M) (P) (E) F Obtain mailing labels G Mail brochure H Obtain speaker materials I Receive registrations J Confirm arrangements K Prepare conference kits University of Calgary/APEGGA

Sequencing Activities
April 2002 Sequencing Activities Bar chart Produce a Logical Network Critical Path Method Arrow Diagrams Precedence Diagrams Identify Critical Activities Locate the Critical Path Floats University of Calgary/APEGGA

April 2002 5 Step Project Management PLANNING IMPLEMENTATION DEFINE PLAN ORGANIZE CONTROL CLOSE Identify project activities Determine Personnel Needs Define Management Style Obtain Client Acceptance Install Deliverables Document the Project Issue Final Report Conduct Post- Implementation Audit State the Problem Identify Project Goals Estimate time and cost Recruit Project Manger Establish Control Tools List the Objectives Sequence Project Activities Recruit Project Team Prepare Status Reports Review Project Schedule Issue Change Orders Determine Preliminary Resources Identify Critical activities Organize Project Team Identify Assumptions and Risks Write Project Proposal Assign Work Packages University of Calgary/APEGGA

Bar Charts/Gantt Chart
April 2002 Bar Charts/Gantt Chart Most projects, however complex, start by being depicted on a bar chart. The principles are very simple: Prepare list of project activities Estimate the time and resources needed Represent each activity by a bar Plot activities on a chart with horizontal time scale showing start and end University of Calgary/APEGGA

Project Schedule - Sample
April 2002 Project Schedule - Sample Project: ____________________ Project Manager: ____________________ Date: _____________ Sample University of Calgary/APEGGA

RACI Charts Responsibility - Action - Coordination - Information
April 2002 RACI Charts Responsibility - Action - Coordination - Information Identify the roles of participants in each element of a project Effective communications road map 4 to 8 weeks look ahead University of Calgary/APEGGA

RACI Charts Update weekly to: Reset expectations
April 2002 RACI Charts Update weekly to: Reset expectations Ensure right people involved in detailed planning Ensure everyone knows what needs to be done by whom University of Calgary/APEGGA

RACI Charts (F. T. Hartman, 2000)
April 2002 RACI Charts (F. T. Hartman, 2000) 2.4.5 Major Element Amelia Drover Fred 2-5 Deliverable:_____________________ Manager:___________________ Project:_________ DATES A C G C F M J W B D M H F W L S W E ACTION Budget Actual Budget Actual W/Hrs. W/Hrs Cost Cost Activity Another activity Build something R A A C I I I C - R C I A A I A R A C I I C ,500 - R C I A A I A R A A C I I I C ,000 R A C I I C ,700 Another Item Yet another Design a bit Design more Sneeze Gesundheit - A R I C C A I I R C A A I C I ,785 - R I I C Another thing Wait for item More stuff Finish A C R C I C ,000 - I C A A R I A I R A I C I A A A A I C I I A A A R University of Calgary/APEGGA

Video: The Power of Scheduling
How long it takes to build a house?

CPM: Critical Path Method
April 2002 CPM: Critical Path Method Graphic network based scheduling technique Arrow Diagrams Precedence Diagrams Use activities created by the WBS process Analysis of timing and sequencing logic Aids in identifying complex interrelationship of activities University of Calgary/APEGGA

CPM: Critical Path Method
April 2002 CPM: Critical Path Method Allows for easy revision of schedule and simulation and evaluation of the impact of changes Also used as a control tool during execution of the project University of Calgary/APEGGA

Producing a Logical Network
April 2002 Producing a Logical Network The sequencing identifies activities that must be completed before another activity can start and which activities can occur simultaneously. Different methods: 1. “Low-tech” approach: use post-it labels Each label has one activity written on it Through iterative process the labels can be arranged and rearranged University of Calgary/APEGGA

April 2002 Producing a Logical Network 2. Ask yourself the following: Which activities must be completed before this activity starts? Which activity cannot start until this activity is completed? Which activities have no logical relationship with this activity and therefore take place at the same time (concurrent activities)? University of Calgary/APEGGA

April 2002 Producing a Logical Network 3. Identify immediate predecessor activities, which are activities that must be completed before another activity can begin University of Calgary/APEGGA

Steps in Producing a Networks
April 2002 Steps in Producing a Networks List the activities Produce a logical network of activities Assess the duration of each activity Produce a schedule - determine the start and finish times and the float available for each activity University of Calgary/APEGGA

Steps in Producing a Networks
April 2002 Steps in Producing a Networks Determine the time required to complete a project and the the longest path on the network The longest path is the Critical Path Assess the resources required University of Calgary/APEGGA

Activity sequencing ACTIVITY IMMED. TIME(WEEKS) PRED. (E)
April 2002 Activity sequencing ACTIVITY IMMED. TIME(WEEKS) PRED. (E) A Set conference date B Establish theme/program C Select conference site A 5.0 D Obtain speakers B 6.0 E Develop brochure C,D 9.0 F Obtain mailing labels C,D 5.0 G Mail brochure E,F 2.0 H Obtain speaker materials D 4.0 I Receive registrations G 6.0 J Confirm all arrangements H,I 1.0 K Prepare conference kits J 2.0 University of Calgary/APEGGA

Sample Network a c e g i start j k end f b d h April 2002
University of Calgary/APEGGA

Activity Times/Critical Path
April 2002 Activity Times/Critical Path 2 a 2 c e g i Start j1 k2 End f5 b5 d6 h4 University of Calgary/APEGGA

April 2002 Critical Path Calculations for precedence diagrams and arrow diagrams are essentially the same Critical path is where there is zero slack time If an activity takes longer than estimated on the critical path then the project will be delayed The critical path can change if there is a delay that make an alternative path longer University of Calgary/APEGGA

April 2002 Float (Slack) Slack or float time is amount of delay that could be tolerated in the start or completion time without causing a delay in completion of the project Total float or calculations to determine how long each activity could be delayed without delaying the project Total float = LF - ES - duration University of Calgary/APEGGA

Summary Critical path identifies the project time requirements
April 2002 Summary Critical path identifies the project time requirements Slack or float time is amount of delay that could be tolerated in the start or completion time without causing a delay in completion of the project Zero slack time equals the critical path University of Calgary/APEGGA

Fundamentals of Project Management

Similar presentations

Presentation on theme: "Fundamentals of Project Management"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Fundamentals of Project Management

Similar presentations

Presentation on theme: "Fundamentals of Project Management"— Presentation transcript:

Similar presentations

About project

Feedback