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Fundamentals of Project Management: Part 1a

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1 Fundamentals of Project Management: Part 1a
APEGGA Annual Conference April 24 & 25, 2003 Dr. George F. Jergeas PEng. University of Calgary

2 Schedule Day 1a Introduction 5-Step PM Planning and Definition Day 1b
Estimating cost and time Organize project team Selecting PM and team Effective teams Day 2 c Project procurement Bidding process Building & sustaining project team Contract administration Day 2 d Schedule control Cost control Project Close-out Claims and disputes

3 References This section is based on:
The 5-Phased Project Management- A Practical Planning and Implementation Guide by Joseph Weiss and Robert K. Wysocki Project Management Institute: PMBOK Guide, Instructors’ notes

4 Introduction

5 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

6 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

7 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

8 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

9 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.

10 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

11 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?

12 Subprojects Projects are frequently divided into more manageable components or subprojects Subprojects are typically referred as projects and managed as such Subprojects may be contracted to an external enterprise Examples of different ways of dividing into subprojects: Based on the project process, such as a single phase According to human resource skill requirements (installation of plumbing) Based on technology (automated testing of a computer program)

13 Program(me) A program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually Program management: Management of a coherent group of projects to deliver additional benefits (PMBOK p.10, Turner p.345) Can be illustrated in different ways. Program Project Project Project Project Program Project Project Project Project Time Program management is dealt with in Turner, ch. 14. It belongs to Net-Based session NB3.2

14 Value of Project Management (Why are we doing this?)
Improve project/program/firm performance as measured by efficiency, effectiveness Add competitive advantage Be more “Successful” Proactive vs. Reactive Root out ill-conceived, directionless projects

15 Major Causes of Project Success
A constructive goal-oriented culture Technically competent team Effective (and committed) team Excellent communication Trust

16 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

17 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

18 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

19 Project Lifecycle Project management phases link the project to the firm’s operations A project is a subset of the product lifecycle The product lifecycle includes operation or production, decommissioning or closedown

20 Sample Lifecycle (Conceive, Develop, Execute, Finish – C, D, E, F)

21 5-Step Project Management

22 5-Step Project Management PLANNING IMPLEMENTATION
CONTROL DEFINE PLAN ORGANIZE CLOSE Identify project activities State the Problem Determine Personnel Needs Define Management Style Obtain Client Acceptance Install Deliverables and Commissioning Document the Project Issue Final Report Conduct Post- Implementation Audit Identify Project Goal Estimate time and cost Recruit Project Manger Establish Control Tools List the Objectives Recruit Project Team Prepare Status Reports Review Project Schedule, cost, team reports Issue Change Orders Quality and Communication management Determine Preliminary Resources Organize Project Team Bidding Identify Risks and stakeholders Success criteria Write Project Proposal Assign Work Packages Decision Project charter WBS Recruit Criteria Variance Reports Final Report Project network Define Work Packages Status Reports Audit Reports Project proposal Assign Work Packages

23 Step 1- Define the Project

24 Agenda State the problem/need/opportunity Develop project goal
Develop project objectives Determine preliminary resources Identify assumptions and risks Identify stakeholders Identify criteria for project success Issue Project Charter

25 State the Problem/Need/ Opportunity
A need that must be addressed or opportunity to be explored New product, service, process, facility, system or technology It may involve opening a new market Identify and define in detail the investment opportunity, need or problem

26 State the Problem/Need/ Opportunity
Define client requirements and needs from the client’s original input Review and enhance the client’s statement of needs: Identify appropriate policies, standards, and jurisdictional requirements Identify and assess feasible alternatives of satisfying the client’s statements

27 State the Problem/Need/ Opportunity
Advise the client of potential technology-related constraints in areas such as ... Establish consensus on the requirements of the client Assemble information including any relevant designs, charts, or diagrams ...

28 State the Problem/Need/ Opportunity
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

29 State the Problem / Need / Opportunity: Training 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.”

30 State Project Goal A statement of purpose and direction
Initiates the project Serves as a point of reference for settling misunderstandings Clarifies expectations Helps in justifying requests for resources Action oriented Short and simple Understandable

31 Goal Statements 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

32 Goal Statement: Examples
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

33 Goal Statement: Training Example
Reverse the downward trend in membership and annual conference attendance by organizing a highly successful conference

34 Develop Project Objectives
Objectives represent major scope 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

35 Objectives: Training Example
Develop the Program Set the Conference Site and Date Design and Implement the Marketing Plan

36 Resourcing Strategy For each objective:
Determine which internal resources are available Determine which external resources will be required Take any preliminary steps required to engage external resources Expression of interest

37 RACI Chart 2 1 Informed Consulted Accountable Responsible Task

38 Identify Criteria for Evaluating Project Success
Project expectations: Project on time Within budget According to specifications Happy client

39 Success Criteria: Training 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

40 Identify 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

41 Risk management is a process
KA7 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

42 Risk Management Quantify risks High, Medium, Low (HML) - qualitative
Expected Monetary Value (EMV) - quantitative

43 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

44 Risk Quantification Technique: High, Medium, Low (HML)
HH M Impact L L M H Probability

45 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

46 Risk Management Template
Monitoring Schedule Response Plan Owner of risk Impact Probability Risk

47 Assumption and Risks: Training 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

48 Identify Stakeholders
Individual or organisations actively involved in the project or directly or indirectly affected by its execution or results. They can influence your success or decision makers. 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

49 Identify 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

50 Identify 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

51 Fundamentals of Project Management
Stakeholder Analysis STAKEHOLDER Objective Potential Impact How They Operate Where they gain Support How to Manage them and plan for mitigation Fundamentals of Project Management Tool Kit

52 Stakeholders: Training Example
Attendees Speakers Hotel PM Association Organizing team

53 Charter Document The “define” phase focuses on producing a Project Charter document which is used as: Formally recognize the existence of the project An early statement of the project goal and direction A statement of the problems and opportunities to be addressed by the project

54 Charter Document Include the business need and product description, constraints and assumptions A tool in the initial “go/no go” decision by management Approval to proceed Funding, authority, sponsor A general information document for other managers

55 Charter Document Once the project is approved for go ahead, the Project Charter 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

56 Attendees, Speakers, Hotel, PM Association, Organizing team
Project Charter 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. Stakeholders Attendees, Speakers, Hotel, PM Association, Organizing team

57 Step 2 - Plan the Project

58 Agenda Work Breakdown Structures (WBS) Estimate Time and Cost

59 5-Step Project Management PLANNING IMPLEMENTATION
CONTROL DEFINE PLAN ORGANIZE CLOSE Identify project activities State the Problem Determine Personnel Needs Define Management Style Obtain Client Acceptance Install Deliverables and Commissioning Document the Project Issue Final Report Conduct Post- Implementation Audit Identify Project Goal Estimate time and cost Recruit Project Manger Establish Control Tools List the Objectives Recruit Project Team Prepare Status Reports Review Project Schedule, cost, team report Issue Change Orders Quality and Communication management Determine Preliminary Resources Organize Project Team Bidding Identify Risks and stakeholders Success criteria Write Project Proposal Assign Work Packages Decision Project charter WBS Recruit Criteria Variance Reports Final Report Project network Define Work packages Status Reports Audit Reports Project proposal Assign Work Packages

60 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

61 Work Breakdown Structure

62 Work Breakdown Structure
Activities in the WBS are broken-down until the entire project is displayed as separately identified activities The breakdown of activities continues until there are no overlapping activities

63 Work Breakdown Structure
Each activity: 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

64 WBS Procedure: Training 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

65 WBS Procedure: Training 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

66 WBS Procedure: Training Example
3. Check each activity for compliance with activity characteristics and further partition any that do not comply 1.1.3 Prepare Handouts Obtain Handout Materials from Speakers Prepare and Print Conference Notebook

67 WBS Worksheet -PM Conference

68 Hierarchical Representation
CONFERENCE PLANNING PROGRAM SITE MARKETING THEME MATERIALS SPEAKERS DATE PLACE LISTS BROCHURE REGISTER OBTAIN MATERIALS PREPARE KITS DESIGN BROCHURE MAIL BROCHURE


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