Presentation is loading. Please wait.

Presentation is loading. Please wait.

Module 1 - Introduction1 PROJECT MANAGEMENT Presented by: John Rakos, MSc, PMP President, John J. Rakos & Associates Consultants Ltd. John J. Rakos is.

Similar presentations

Presentation on theme: "Module 1 - Introduction1 PROJECT MANAGEMENT Presented by: John Rakos, MSc, PMP President, John J. Rakos & Associates Consultants Ltd. John J. Rakos is."— Presentation transcript:

1 Module 1 - Introduction1 PROJECT MANAGEMENT Presented by: John Rakos, MSc, PMP President, John J. Rakos & Associates Consultants Ltd. John J. Rakos is available to teach or consult in any topic presented in this seminar.

2 Module 1 - Introduction2 INTRODUCTION Reference sources A Guide to the Project Management Body of Knowledge (2003). The Project Management Institute. Rakos, John J. et al, A Practical Guide to Project Management Documentation, Wiley, 2004 Kerzner, Harold. Project Management: A Systems Approach to Planning, Scheduling and Controlling. 6 th ed. John Wiley & Sons, Rakos, John J. Software Project Management for Small to Medium Sized Projects. Prentice-Hall, 1990.

3 Module 1 - Introduction3 INTRODUCTION The Value of Project Management Allows for excellent organization and tracking Better control and use of resources Reduces complexity of inter-related tasks Allows measurement of outcome versus plans Early identification of problems and quick correction

4 Module 1 - Introduction4 INTRODUCTION PMBOK TM Knowledge Areas Based on the Project Management Institute’s Project Management Body of Knowledge: PMBOK 1 Nine knowledge areas: –This webinar: Scope, Time, Cost, Risk, Integration -- Next webinar: Quality, Procurement, Communications, Human Resources, Integration

5 Module 1 - Introduction5 INTRODUCTION PMP Certification Internationally accepted accreditation Get certification 3 (5 without degree) years experience 35 hours training 4 hour, 200 questions, multiple choice exam! Have to be re-certified every 3 years 60 PDUs  Attending a conference  Attending course  PMI membership  Publications  PM work

6 Module 1 - Introduction6 INTRODUCTION What is a Project? A project is a temporary endeavor undertaken to create a unique product or service - A Guide to the Project Management Body of Knowledge (PMBOK™), Project Management Institute, 2003  One time  Limited funds/time  Specific resources utilized  Performed by people - Single or multi-person team  Planned, controlled  Specific Deliverables

7 Module 1 - Introduction7 INTRODUCTION The Triple Constraint of Projects On Time, Budget, Quality = Required Scope Time CostQuality Integration Trade – Off’s

8 Module 1 - Introduction8 Project Life Cycle INTRODUCTION 5% 20%60% 15% ConceptPlanningExecution/ControlClosing Percentages and graph refer to the amount of effort (people) In IT projects = 90-95% of cost! Definition | Analysis |Design|Build|Test|Accept| Implement| Operation

9 Module 1 - Introduction9 Write a Plan Containing 1.Steps required to accomplish the project objectives 2.Tasks needed to be done at each step (using Work Breakdown Structures) 3.Estimate of how much effort each task requires 4.The resources required for each task 5.(Given 3. and 4.) Calculation of how long each task/step will take 6.(Given 4. and 5.) Calculation of task, step and project costs 7.The inter-dependencies of tasks 8.The schedule for each task and the whole project (Milstones, Deliverables, payments ) Project Planning

10 Module 1 - Introduction10 Stakeholders Project Sponsor Project Leader Project Manager Finance Procure- ment Systems Engineering Support SalesMaintenance IM/ IT Users Contractors Project Planning: set expectations of Stakeholders

11 Module 1 - Introduction11 Project Planning: Time and Cost Estimate Iterative Accuracy –Estimates become more accurate Preliminary PlanFinal Plan 0 +25% - 75% Initiation Planning Execution Closing Definition Analysis Design Proposal PlanRevised Plan

12 Module 1 - Introduction12 Project Management Module 2: Scope Management

13 Module 1 - Introduction13 Project Scope Planning Scope Management Ensuring that the project includes all the work required, only the work required. Dividing the work into major pieces, then subdividing into smaller, more manageable pieces.

14 Module 1 - Introduction14 Work Breakdown Structure - Formats 1. Organization Chart Method 0. Title 1. Major Phase Section 1 of Phase 1 2. Major Phase 2 3. Major Phase Section 2 of Phase Section 3 of Phase 1

15 Module 1 - Introduction15 2. Outline Method 0.TITLE 1.MAJOR PHASE 1 1.1S1 OF PHASE1 1.2S2 OF PHASE1 1.3S3 OF PHASE1 2.MAJOR PHASE 2... etc. Work Breakdown Structure - Formats

16 Module 1 - Introduction16 WBS - Typical Tasks Detailed WBS Example for procuring an Equipment System

17 Module 1 - Introduction17 Summary (Top Level) WBS Work Breakdown Structure Summary and Detail tasks, or Parent and Child tasks (Work Package)

18 Module 1 - Introduction18 Using the Work Breakdown Structure 1. Estimate and schedule the work (Durations, precedences on WBS) 2. Organize and schedule resources (resource allocated WBS) 3. Assign responsibilities – (Resource ramp-up, resource allocated WBS) 4. Estimate and allocate costs and budgets (costed WBS) 5. Add up costs to different levels –Task –Levels on the WBS (phase, account/contract) –Cost account –Total project 6. Get resource commitments 7. Schedule start end dates 8. Track expenditures, schedules and performance Work Breakdown Structure

19 Module 1 - Introduction19 Project Management Module 3: Project Time Planning

20 Module 1 - Introduction20 Project Time Planning Estimating Effort: 3 Methods 1. Professional Judgment –“Expert” picks a number (out of the air!) –Requires an expert –Requires experience –Good memory –May ignore people –VERY RELIABLE FOR THEMSELVES

21 Module 1 - Introduction21 Estimating Efforts (cont’d) 2. History –Look at tables of past actuals on major tasks –Interpolate –Requires professional judgment –Requires good history (which changes!) 3. Formula 3.1 Variables –Determine major variable factors (task, person) –Using measurement determine formula of factors –Interview and plug into formula Project Time Planning

22 Module 1 - Introduction22 Estimating Efforts (cont’d) 3.2 Function Points –Determine smallest pieces (function points) of project. –Using measurement establish time for each one. –For new project, break into function points; add up times, then multiply for worker productivity. (Possibly: Junior x 2, Average x 1, Senior x 0.5) FORMULA IS BEST (IN THEORY). IN REALITY,____________ BEST. Project Time Planning


24 Module 1 - Introduction24 If Estimate was Effort, must convert it to Duration Duration = Effort/Resources (sometimes) Taking into account: Resource availability Desire Skill Productivity Scheduling

25 Module 1 - Introduction25 Scheduling: Requires Duration and Precedents Two Graphical tools for Scheduling: 1. PERT Chart Plan (from WBS) TaskPrecedentDuration A- 7d BA3d C -10d DC5d E -4d FE6d GF3d

26 Module 1 - Introduction26 Ordering the Activities: PERT Chart Arrow Diagramming Method (ADM) Scheduling

27 Module 1 - Introduction27 Scheduling - Gantt Chart Order of building the Gantt Chart: Work Breakdown Estimates (duration) Dependencies Resource use Gantt shows: Critical Path Non Critical Path(s) Early Start/Finish Late Start/Finish Slack

28 Module 1 - Introduction28 Scheduling - Gantt Chart

29 Module 1 - Introduction29 Gantt (Schedule) Drives 1. Milestones Clear, concrete, binary events implying progress For example: Review (with approval), Sign off of a deliverable, Funds approved Shown as 0 length task –Try for even frequency Not too close Not more than months apart –Major Point to communicate with Client Outside world Management Scheduling - Gantt Chart

30 Module 1 - Introduction30 Gantt (Schedule) Drives Training Meetings Reviews Reports Site preparation Delivery dates (date to order) for external items Payment Scheduling - Gantt Chart

31 Module 1 - Introduction31 Project Management Module 4: Resource Assignment and Cost Planning

32 Module 1 - Introduction32  Availability  Skills More experienced people Less experienced people  Desire  Similar tasks to one person to use learning curve  Assign critical tasks to most reliable people  Tasks that need interaction or are similar Same person Two who communicate  Personality and team communication does matter  and again, Availability Assigning Resources

33 Module 1 - Introduction33 Resource Loading and Optimizing Gantt with Resource Histogram

34 Module 1 - Introduction34 Resource leveling - possible rescheduling Gantt with Resource Histogram Manual resource leveling: fast vs good vs cheap Automatic resource leveling: use only as ‘suggestion’

35 Module 1 - Introduction35 Cost Estimating Similar to Time Estimating (usually done by the same person/group that does the Time Estimates) Calculation of Cost for each WP:Example: If estimate was duration10 days Assign human resources2 people Need Effort = Duration x ResourcesE=2x10=20pd e.g., Resource Cost (RC) = Effort x Rate(includes overhead) RC=20x$1,000=$20,000 (Possible) Plus Fixed Cost (FC) e.g., FC = $5,000 Total cost (TC) = Resource cost + Fixed Cost TC=20, ,000 = 25,000

36 Module 1 - Introduction36 Costed WBS Use Software to roll costs up the WBS

37 Module 1 - Introduction37 Cost Ramp-Up Use Software to report cash flow

38 Module 1 - Introduction38 Cost - Sanity checks Cost Estimate Error Range – same as Time Estimate 0 +75% -25% Indicative PPA Init Plan Budget EPA Final Plan Definitive PDR Design PPA - Preliminary Project Approval EPA - Effective PDR - Preliminary Design Review

39 Module 1 - Introduction39 Project Management Module 5: Risk Management

40 Module 1 - Introduction40 Risk Management Planning and Control Processes Risk: anything not in the project plan that may occur and cause your project to be late, cost more or compromise its quality/performance. Risk is an opportunity as well as a threat: “You don’t put power brakes on a car to slow it down - you do so to allow it to go faster.” -Mark Davies, KPMG We will concentrate on the threat.

41 Module 1 - Introduction41 Four Steps of Risk Management 1. Identification –Anticipate the risk –List the risks, event triggers, symptoms 2. Analysis –Evaluate probability, impact –Qualitative vs Quantitative 3. Risk Response –Strategy Development to mitigate the risk: Eliminate the risk or reduce impact Contingency planning 4. Risk Control –Monitor –Update lists, strategies –Action the contingency plan –Fight the fires Which is most important??

42 Module 1 - Introduction42 Step 1: Risk Identification Anticipate the Risk Risk Checklist at Preliminary Planning Time (Risk Taxonomy)  Are we proposing the right solution?  Any risk in technical components?  Performance expectations reasonable?  Is the hardware standard?  How much experience do we have with it?  Is the operating software standard? Well documented?  How much experience do we have with it?  Is the development method standard? Well documented?  How much experience do we have with it?  Any component availability risks?

43 Module 1 - Introduction43 Step 1: Risk Identification Risk Checklist at Preliminary Planning Time (Risk Taxonomy) (cont’d)  Does failure of this application affect the customer’s business?  Is the project over 6 months? 12 months? 24 months?  Does it need over 5 people?  Are we dependent on third party resources? Internal? External?  Who is the project manager?  Who is the project leader/architect?  Are the resources available when needed?  Who is the client?  Have we worked with this client? How is our relationship?  Is client available when needed?


45 Module 1 - Introduction45 Step 2: Risk Analysis Evaluate Probability and Impact into three levels: Low, Medium, High: Probability Criteria: Probability Rank Description High Medium Low Greater than 66% probability of occurring 34 to 65% probability of occurring Less than 33% probability of occurring

46 Module 1 - Introduction46 Step 2: Risk Analysis Impact Criteria: Impact RankDescription High Medium Low Could add more than 25% to the project budget Could add between 10 and 25% to the project budget Could add less than 10% to the project budget High Medium Low Schedule Cost Quality Could add over 25% delay to the completion of the project Could add over 10% delay to the completion of the project Could add less than 10% delay to the completion of the project, or delays a non critical deliverable Determine a combined impact level based on which constraint is most affected.

47 Module 1 - Introduction47 Step 2: Risk Analysis Draw a Risk Table to Summarize Wonderful Management Tool/Report Prob. Impact High Medium Low HighMediumLow 3. Lack of skilled staff, organization slow to hire adequate staff; may delay implementation. 2. Time estimate and funds inadequate for the scope of this project; may be late and over budget. 1. Lack of commitment. Headquarters may have to assume more responsibility; will result in project delay, cost overruns. 6. Cannot get office space for staff; may cause communication problems, delaying the execution phase. 5. Expecting major scope changes from clients; may cause delay and cost escalation. 4. Not enough time spent planning, lack of understanding of problem; may take longer/ cost more than anticipated.

48 Module 1 - Introduction48 Step 3: Risk Response Strategy Development: Reduce the Probability and/or Impact of the Risk Risk Mitigation: Reducing the probability and/or impact Take immediate action. Can be risk avoidance (if eliminated) or risk reduction (still there, but probability or impact is reduced). Contingency Plans Take action only when the risk is imminent or has occurred Or Acceptance (do nothing), depends on Risk Tolerance

49 Module 1 - Introduction49 Risk as a Monetary Value Tempering the Estimate Estimate range is –ESTIMATE ESTIMATE + RISK –Try to work within the range, depending on how crucial the accuracy has to be. If you can get several estimates –Use the Standard Deviations to give you confidence levels: Expected estimate +/- 1 SD gives you 68% confidence Expected estimate +/- 2 SD gives you 95% confidence Expected estimate +/- 3 SD gives you 99% confidence

50 Module 1 - Introduction50 Project Management Module 6: Scope/ Time/ Cost Control

51 Module 1 - Introduction51 Project Control – Scope Control Scope Change Control Formal change control Evaluate cost/time impact –Renegotiate, set expectations –Implement or defer to next release Configuration Management Keep track of what changes were made to which modules Versioning Interoperability of modules

52 Module 1 - Introduction52 Project Control – Schedule and Cost Step 1 - Take a baseline. Baseline plan: a copy of the plan (WBS with all dates, assignments, costs). Used to report progress against the baseline. Taken at a mutually agreed upon planning point: Proposal or Analysis completion +25% to -10% stage Baseline is (theoretically) not alterable Unless major scope change occurs.

53 Module 1 - Introduction53 Project Control – Reporting Schedule using a Tracking Gantt Double Gantt: Shows Project Schedule Progress vs baseline

54 Module 1 - Introduction54 Project Control – Cost Control/Reporting Financial Report vs Baseline

55 Module 1 - Introduction55 Project Management Module 7: Conclusions

56 Module 1 - Introduction56 Resources Available To help you Manage your Projects Training & Learning –Universities Project Management courses Major/Masters in Project Others – public Project Management Institute (PMI) PMP Certification courses PMI conferences 250,000 members worldwide Your own Subject Matter Experts

57 Module 1 - Introduction57 Resources Available To help you Manage your Projects Training & Learning –Internet Many sites: search on Project Management NASA Software Engineering Institute Software Productivity Center DOD/Pentagon Project Management Software (WBS, Schedule, Cost, Resource usage, Multiple project roll-up, Internet reporting,...) –Microsoft Project –Primavera –Open source: OpenProj John J. Rakos is available to teach or consult in any topic presented in this seminar.

58 Module 1 - Introduction58 Final Details Can you be a good project manager? Ask yourself: Can I say 'NO'? –Can I attack problems as soon as/even before they arise? Can I live unloved? If you do your job well, people will wonder what you do!

Download ppt "Module 1 - Introduction1 PROJECT MANAGEMENT Presented by: John Rakos, MSc, PMP President, John J. Rakos & Associates Consultants Ltd. John J. Rakos is."

Similar presentations

Ads by Google