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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.

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

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2 1 Fundamentals of Project Management: Part 1a APEGGA Annual Conference April 24 & 25, 2003 Dr. George F. Jergeas PEng. University of Calgary

3 2 Schedule Day 1a zIntroduction z5-Step PM zPlanning and Definition Day 1b zEstimating cost and time zOrganize project team zSelecting PM and team zEffective teams Day 2 c z Project procurement z Bidding process z Building & sustaining project team z Contract administration Day 2 d z Schedule control z Cost control z Project Close-out z Claims and disputes

4 3 References zThis section is based on: yThe 5-Phased Project Management- A Practical Planning and Implementation Guide by Joseph Weiss and Robert K. Wysocki yProject Management Institute: PMBOK Guide, yInstructors notes

5 4 Introduction

6 5 What is a project? zA specific, finite task to be accomplished yCan be of a long or short term duration yCan be large or small task

7 6 Projects Vary in Size and Scope zNASA shuttle launch zBuilding a boat zBuilding a hospital zBuilding renovation and & space modification zPlanning a party or wedding zOrganizing the Olympic games zDeveloping a new software program zGetting a university degree zCompany mergers

8 7 Project Characteristics zConstant communication across organizational boundaries zMany people involved, across several functional areas zSequenced events zGoal oriented zHas an end product or service z Multiple priorities z Complex and numerous activities z Unique, one-time set of events z Deadlines z Start and end dates z Identifiable stakeholders z Limited resources and budget

9 8 When is a Project a Project? zA task or set of work assignments may be done by one or more persons using a simple to do list. zA task become a project when the characteristics of a project begin to dominate and overwhelm individuals yUnable to meet deadlines, budgets and corporate expectations

10 9 Project Management zProject 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.

11 10 What is Project Management? zTools/techniques yProcesses and methodology zMore than time, cost and scope yHard and soft skills zA discipline evolving towards a profession

12 11 Project Management zProjects and project management are about people and teamwork yWho does what? yWho takes what risk? yWho else is involved or interested/affected?

13 12 Subprojects zProjects are frequently divided into more manageable components or subprojects zSubprojects are typically referred as projects and managed as such zSubprojects may be contracted to an external enterprise

14 13 Program(me) zA program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually zProgram management: Management of a coherent group of projects to deliver additional benefits (PMBOK p.10, Turner p.345)

15 14 Value of Project Management (Why are we doing this?) zImprove project/program/firm performance as measured by efficiency, effectiveness yAdd competitive advantage yBe more Successful zProactive vs. Reactive zRoot out ill-conceived, directionless projects

16 15 Major Causes of Project Success zA constructive goal-oriented culture zTechnically competent team zEffective (and committed) team zExcellent communication zTrust

17 16 Major Causes of Project Success zStakeholders are identified zStakeholders expectations are known and met zSenior Management support zThere is a clearly stated purpose and a sound plan yGoal and objectives are understood and communicated

18 17 Major Causes of Project Failure zProjects fail for the following reasons: yThe project is a solution in search of a problem yOnly the project team is interested in the result yNo one is in charge yThere is no project structure yThe plan lacks detail

19 18 Major Causes of Project Failure zProjects fail for the following reasons: yThe project has insufficient budget and/or resources yLack of team communication yStraying from original goal yThe project is not tracked against the plan

20 19 Project Lifecycle zProject management phases link the project to the firms operations zA project is a subset of the product lifecycle zThe product lifecycle includes operation or production, decommissioning or closedown

21 20 Sample Lifecycle (Conceive, Develop, Execute, Finish – C, D, E, F) ork/lifecycle.htm ork/lifecycle.htm z

22 21 5-Step Project Management

23 22 5-Step Project Management PLANNING IMPLEMENTATION DEFINE Identify project activities Estimate time and cost Quality and Communic ation manageme nt Write Project Proposal ORGANIZE CONTROL PLANCLOSE State the Problem Identify Project Goal List the Objectives Determine Preliminary Resources Identify Risks and stakeholders Success criteria Determine Personnel Needs Recruit Project Manger Recruit Project Team Organize Project Team Bidding Assign Work Packages Define Management Style Establish Control Tools Prepare Status Reports Review Project Schedule, cost, team reports Issue Change Orders Obtain Client Acceptance Install Deliverables and Commissioning Document the Project Issue Final Report Conduct Post- Implementation Audit Project charter WBS Recruit Criteria Variance Reports Final Report Project network Define Work Packages Status Reports Audit Reports Project proposal Assign Work Packages Decision

24 23 Step 1- Define the Project

25 24 Agenda zState the problem/need/opportunity zDevelop project goal zDevelop project objectives zDetermine preliminary resources zIdentify assumptions and risks zIdentify stakeholders zIdentify criteria for project success zIssue Project Charter

26 25 State the Problem/Need/ Opportunity zA need that must be addressed or opportunity to be explored xNew product, service, process, facility, system or technology xIt may involve opening a new market zIdentify and define in detail the investment opportunity, need or problem

27 26 State the Problem/Need/ Opportunity zDefine client requirements and needs from the clients original input zReview and enhance the clients statement of needs: yIdentify appropriate policies, standards, and jurisdictional requirements yIdentify and assess feasible alternatives of satisfying the clients statements

28 27 State the Problem/Need/ Opportunity yAdvise the client of potential technology- related constraints in areas such as... zEstablish consensus on the requirements of the client zAssemble information including any relevant designs, charts, or diagrams...

29 28 State the Problem/Need/ Opportunity zShort, crisp and to the point zDescriptor for those who although not directly involved on the project team are indirectly involved in supporting the project

30 29 State the Problem / Need / Opportunity: Training Example zMembership 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.

31 30 State Project Goal zA statement of purpose and direction yInitiates the project yServes as a point of reference for settling misunderstandings yClarifies expectations yHelps in justifying requests for resources zAction oriented zShort and simple zUnderstandable

32 31 Goal Statements zPrepare and launch the International Space Station on April 21, 2000, from Cape Canaveral, Florida zConnect France and England via a covered tunnel and railway under the English Channel, facility to be opened to traffic no later than September, 1996

33 32 Goal Statement: Examples zDesign and complete pilot testing by March 2002, a product accounting software package that performs basic financial analyses for the company zObtain a BSc degree in engineering from U of C by spring, 2004

34 33 Goal Statement: Training Example zReverse the downward trend in membership and annual conference attendance by organizing a highly successful conference

35 34 Develop Project Objectives zObjectives represent major scope components or milestones yObjectives are sub-goals zRoadmap to aid decision makers understand the purpose of the project zBasis for determining project time line and resource requirements zTo achieve the goal all objectives must be realized

36 35 Objectives: Training Example zDevelop the Program zSet the Conference Site and Date zDesign and Implement the Marketing Plan

37 36 Resourcing Strategy For each objective: zDetermine which internal resources are available zDetermine which external resources will be required zTake any preliminary steps required to engage external resources yExpression of interest

38 37 RACI Chart 2 1 Informed ConsultedAccountableResponsibleTask

39 38 Identify Criteria for Evaluating Project Success Project expectations: zProject on time zWithin budget zAccording to specifications zHappy client

40 39 Success Criteria: Training Example zAt least 200 of 450 PM Association membership will register to attend zAt least 50 of previous years conferences attendees will attend zAt least 1.5% of the non-members receiving conference brochure will attend zAt least 5% of the non-member attendees will join PM Association

41 40 Identify Assumptions and Risks zEach objective will have its own risks and assumptions zHelps think through the project process and issues associated with execution zIdentifies resource needs and issues involving resource availability zIdentifies potential delays and the impact of these delays zPotential cost overruns can be predicted and resolved

42 41 Risk Management zIdentify risks yWhat could go wrong (harm, loss, opportunities and threats) yConsider ALL knowledge areas xInternal and external risks xSources of risk: product technology, people (misunderstandings, skills), project management etc.

43 42 Risk Management zQuantify risks yHigh, Medium, Low (HML) - qualitative yExpected Monetary Value (EMV) - quantitative

44 43 Risk Quantification Technique: High, Medium, Low (HML) zProbability of occurrence and impact zHigh, Medium, Low grid zFocus on HHs and less on LLs zKeep it simple

45 44 Risk Quantification Technique: High, Medium, Low (HML) zH HH zM Impact zL L M H Probability

46 45 Risk Management zDevelop risk response plan yOpportunities and threats to respond to and opportunities and threats to accept xAvoid – eliminate cause xMitigate – reduce risk occurrence xAccept – contingency plans, accept losses yIts OK to do any of these yInsurance, contingency plans, procurement, alternative strategies, contracts yRisk management template

47 46 Risk Management Template Monitoring Schedule Response Plan Owner of risk ImpactProbabilityRisk

48 47 Assumption and Risks: Training Example zInterest in PM Association can be renewed through the annual conference zA quality professional program will attract members and non-members zKey speaker(s) fail to show up or submit written paper

49 48 Identify Stakeholders zIndividual 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. yRoles must be identified at the start of the project yNeeds and expectations must be communicated and influenced in a positive and constructive manner so that the project will be success for all

50 49 Identify Stakeholders zHow to find them? yAsk who will decide on the success of your project zHow to involve them? yAsk for (appropriate) advice yGet their buy-in to project plans

51 50 Identify Stakeholders zHow to work with them? yActive listening yUnderstand their interests and needs yKeep everyone informed zHow to keep them on side? yRespond to concerns yManage expectations and make adjustments

52 51 STAKEHOLDER Objective How They Operate Where they gain Support Potential Impact How to Manage them and plan for mitigation Stakeholder Analysis

53 52 Stakeholders: Training Example zAttendees zSpeakers zHotel zPM Association zOrganizing team

54 53 Charter Document zThe define phase focuses on producing a Project Charter document which is used as: yFormally recognize the existence of the project yAn early statement of the project goal and direction yA statement of the problems and opportunities to be addressed by the project

55 54 Charter Document zInclude the business need and product description, constraints and assumptions zA tool in the initial go/no go decision by management zApproval to proceed yFunding, authority, sponsor zA general information document for other managers

56 55 Charter Document zOnce the project is approved for go ahead, the Project Charter becomes the foundation for the detailed planning activities which follow and: yProvides a control point for reporting project progress and an audit point yReference base for addressing questions and conflicts yTool for building the team

57 56 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

58 57 Step 2 - Plan the Project

59 58 Agenda zWork Breakdown Structures (WBS) zEstimate Time and Cost

60 59 5-Step Project Management PLANNING IMPLEMENTATION DEFINE Identify project activities Estimate time and cost Quality and Communic ation manageme nt Write Project Proposal ORGANIZE CONTROL PLANCLOSE State the Problem Identify Project Goal List the Objectives Determine Preliminary Resources Identify Risks and stakeholders Success criteria Determine Personnel Needs Recruit Project Manger Recruit Project Team Organize Project Team Bidding Assign Work Packages Define Management Style Establish Control Tools Prepare Status Reports Review Project Schedule, cost, team report Issue Change Orders Obtain Client Acceptance Install Deliverables and Commissioning Document the Project Issue Final Report Conduct Post- Implementation Audit Project charter WBS Recruit Criteria Variance Reports Final Report Project network Define Work packages Status Reports Audit Reports Project proposal Assign Work Packages Decision

61 60 Work Breakdown Structure (WBS) zReduces complex projects to a series of tasks that can be planned zWBS represents the project in the form of a hierarchy of goal, objectives and activities yIdentifies activities to be done from beginning to completion of the project

62 61 Work Breakdown Structure

63 62 Work Breakdown Structure zActivities in the WBS are broken-down until the entire project is displayed as separately identified activities zThe breakdown of activities continues until there are no overlapping activities

64 63 Work Breakdown Structure zEach activity: yStatus and completion are easily measured yOf a specific time duration with defined beginning and end yEasy to derive time and cost estimates yOf a single purpose and have clearly understood deliverables yResponsibility for completion clearly assigned

65 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

66 65 WBS Procedure: Training Example 2. Partition the objectives into activities y1.1 Develop the Program x1.1.1Establish Theme and Topics x1.1.2Obtain Speakers x1.1.3Prepare Handout Materials y1.2 Set the Conference Site and Date x1.2.1Set Conference Date x1.2.2Select and Commit Conference Site x1.2.3Confirm Arrangements y1.3 Design and Implement the Marketing Plan x1.3.1Develop and Print Conference Brochure x1.3.2Obtain Label Sets for Direct Mail x1.3.3Mail Conference Brochures x1.3.4Receive and Acknowledge Registrations

67 66 WBS Procedure: Training Example 3. Check each activity for compliance with activity characteristics and further partition any that do not comply y1.1.3 Prepare Handouts Obtain Handout Materials from Speakers Prepare and Print Conference Notebook

68 67 WBS Worksheet -PM Conference

69 68 Hierarchical Representation CONFERENCE PLANNING SITEMARKETINGPROGRAM DATEPLACETHEMEMATERIALSSPEAKERSLISTSBROCHUREREGISTER OBTAIN MATERIALS PREPARE KITS DESIGN BROCHURE MAIL BROCHURE


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