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CEU Power Tools for Managing Projects.

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Presentation on theme: "CEU Power Tools for Managing Projects."— Presentation transcript:

1 CEU Power Tools for Managing Projects

2 What You Need to Know Some Basics
Project Management What You Need to Know Some Basics

3 Project Defined as “a temporary endeavor undertaken to create a unique product, service, or result” Characteristics include: Time limited with a definite beginning and end End is achieved when one of the following occurs Project objectives are met Project is terminated Need for the project no longer exists Undertaken for a purpose (to create a unique product, service or result) Often involves “progressive elaboration” Because you may not know everything about the product initially, you may have to plan and develop it in steps Often called “rolling wave planning” First definition to memorize – project. Progressive elaboration – used to define or plan a project. Example – project scope starts out being defined at a high level, without much detail. As team gains better understanding of objectives and deliverables, incrementally refine the scope.

4 Operations vs. Projects
Operations management differs from project management Operations Ongoing endeavor Produces repetitive output(s) Supports the business environment where projects are executed Interaction with projects is common Does not end when objectives are met New objectives are set to support organizational needs Projects Temporary endeavor Produces unique output(s) Can intersect with operations at various points of product life cycle Purpose of ongoing operations – keep the business going Purpose of project – accomplish its objective and then stop Projects require project management while operations require business process management or operations management Projects can intersect with operations at various points of product life cycle At each closeout phase When developing a new product, upgrading a product or expanding outputs Improvement of operations or the product development process Until the divestment of the operations at the end of the product life cycle

5 Product vs. Project Life Cycle Comparison
Product Life Cycle Phases are generally sequential, non-overlapping, and determined by organization’s control need Last phase is generally the product’s retirement Facets of the product life cycle are often run as a project Product may have many projects associated with it Project Life Cycle Occur in one or more phases of the product life cycle When project output is related to a product, there are many possible relationships

6 Project Life Cycle Characteristics
Cost and Staffing Level No matter how small or large, simple or complex, all projects can be mapped to a life cycle structure. Starting the project Organizing and preparing Carrying out the work Closing the project This generic life cycle structure provides a common frame of reference for communicating with others who aren’t as familiar with the details of the project. It also can be used to compare projects, even if they are different.

7 Project Life Cycle Characteristics
The generic life cycle structure generally displays certain characteristics: Cost and staffing are low at beginning, increase as the project progresses, and drop off rapidly at the end Stakeholder influences, risk, and uncertainty are greatest at the start but all decrease over the life of the project Ability to influence the final product—without significantly impacting cost—is highest at the start of the project and decreases toward the end of the project A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fourth Edition, Figure 2-2

8 Product Life Cycle Product life cycle describes phases in the life of a product, typically ending in product retirement Product life cycle describes phases in the life of a product, typically ending in product retirement Name and number of phases are determined by the manufacturing and control needs of the organization Example of a Product Life Cycle

9 Projects vs. Operational Work
Projects and operations share characteristics Work is performed by individuals Work is limited by constraints Work is planned, executed, monitored and controlled Work is performed to achieve organizational objectives Projects and operations differ Operations are ongoing; produce repetitive products, services, or results Projects are temporary endeavors; produce a unique product, service, or result Operations and projects interact Operations supplies resources to projects Projects may produce deliverables that support operations

10 Types of Organizations and Their Characteristics
Matrix Project Characteristics Functional Weak Matrix Balanced Matrix Strong Matrix Projectized Project Manager’s Authority Little or None Limited Low to Moderate Moderate to High High to Almost Total Resource Availability Who controls the project budget Functional Manager Mixed Project Manager Project Manager’s Role Part-time Full Time Project Management Administrative Staff

11 Project Management Processes
Project manager—along with project team—is responsible for determining: Which processes are appropriate for the project Whether processes should be tailored Appropriate degree of rigor for each process Must understand that project management is an integrative undertaking Requires each process to be aligned and connected with the other processes to facilitate coordination Must also understand that processes are iterative—many are repeated during the project Project Managers are responsible for determining which processes are appropriate, and the appropriate degree of rigor for each process. Most experienced project managers recognize that there is more than one way to manage a project.

12 This is not a Project Management Plan
For the exam: remember the project plan is formal and approved, remember who creates the plan, (Project Manager) remember the components that make up the project management plan: Change management plan, communication management plan, configuration management plan, cost management plan, cost performance baseline, human resource plan, process improvement plan, procurement management plan, quality management plan, requirements management plan, risk management plan, schedule baseline, schedule management plan, scope baseline, scope management plan PMBOK page 82 Project management plan will consist of the outputs of the other planning processes

13 NO PLAN IS EVER EXECUTED AS WRITTEN; YOURS WON’T BE THE FIRST
Change…It Happens Manages changes to the project management plan, project scope statement, and other deliverables Assures that only approved changes are incorporated into a revised baseline NO PLAN IS EVER EXECUTED AS WRITTEN; Take Heart!! YOURS WON’T BE THE FIRST

14 Processes…They Are Iterative
Plan Do Check Act Deming Cycle Change control, and project management is an iterative act.  PMBOK refers to the Deming Cycle (Although Deming never referred to this as such). I included this slide as reinforcement of a critical concept that is required throughout the program.

15 2 Kinds of Scope Project Scope Product Scope
Work that needs to be accomplished to deliver a product, service, or result with the specified features and functions Measured against project management plan Product Scope Features and functions that characterize a product, service, or result Measured against product requirements Glossary Definitions Project (PMBOK pg 442) – A temporary endeavor undertaken to create a unique product, service or result. Product (PMBOK pg 442) – An artifact that is produced, is quantifiable, and can be either an end item in itself or a component item. Additional words for products are materials and goods. Contrast with result and service. See also deliverable.

16 Decomposition WBS structure can be created using different methods
Using phases of the project life cycle as the first level of decomposition; second level consists of the product and project deliverables Using major deliverables as the first level of decomposition Using subprojects that may be developed by organizations outside the project team (e.g., contracted work); seller develops the supporting contract work breakdown structure WBS components represent verifiable products, services, or results WBS can be structured as an outline, organizational chart, fishbone diagram, etc. Decomposition may not be possible for a deliverable or subproject to be accomplished far into the future Point to page 119 – Figure 5-9 Sample Work Breakdown Structure Organized by Phase (1st bullet) Point to page 120 – Figure 5-10 Sample Work Breakdown Structure with Major Deliverables (2nd bullet) Glossary: page 449: Definition of Seller: a provider or supplier of products, services, or results to an organization

17 Time Management

18 Project Cost Management
Cost management work follows planning (Develop PM Plan) Planning process produces a cost management plan that : Documents cost management processes, tools and techniques Can establish: Level of accuracy Units of measure Organizational procedures links Control thresholds Rules of performance measurement Reporting formats Process descriptions May be formal or informal, highly detailed or broadly framed, based on project needs The work involved in performing the three processes of Project Cost Management is preceded by a planning effort of the project management team. This planning effort is part of the Develop Project Management Plan process which produces a cost management plan that sets out the format and establishes the criteria for planning, structuring, estimating, budgeting and controlling project costs. The cost management processes and their associated tools and techniques are usually selected during the project life cycle definition and are documented in the cost management plan. Cost management plan can establish: Level of accuracy - rounding to a prescribed level of precision ($100, $1,000); may include an amount for contingencies Units of measure - staff hours, staff days, weeks, lump sump; defined for each resource Organizational procedures links – WBS is framework of the cost management plan; WBS used for project cost accounting is called the control account; each control account is assigned a unique code/account number that links to the organization’s accounting system Control thresholds – variance thresholds that are indicate an agreed upon amount of variation that can occur before action needs to be taken; usually expressed as percentage deviations from the baseline plan Rules of performance measurement – EVM rules of performance measurement are set Reporting formats –formats and frequency Process descriptions

19 Budget Estimating Budget Estimates
Bottom-Up Estimating Top-Down Estimating (Rough Estimate) Rough Order of Magnitude (ROM) -50% to +100% Completed during initiation (not very accurate) Preliminary -20% to +30% Definitive - 15% to +20% Budget Estimates Most Accurate Conceptual -30% to +50% Less Accurate Control -10% to +15%

20 Cost Performance Baseline
Authorized, time-phased budget at completion (BAC) used to measure, monitor, and control over all cost performance on the project Summation of the approved budgets by time period In EVM, referred to as the performance measurement baseline (PMB) Often displayed in the form of an S-Curve Cost Performance Baseline

21 Project Quality Management
Recognizes the distinction between “precision” and “accuracy” Precision means that values of repeated measures are clustered and have little scatter Accuracy means that the measured value is very close to the true value Precise measurements are not necessarily accurate Very accurate measurements are not necessarily precise The project management team must determine appropriate levels of precision and accuracy and then control the project to those measures of quality.

22 Cost of Nonconformance
Cost of Quality Cost of Conformance Prevention Costs (Build quality product) Training Document processes Equipment Time to do it right Appraisal Costs (Assess the quality) Testing Destructive testing loss Inspections Cost of Nonconformance Internal Failure Costs (Failures funded by the project) Rework Scrap External Failure Costs (Failures found by the customer) Liabilities Warranty work Lost business Loss of customers! Refer students to PMBOK p. 195, figure Cost of Quality Money spent during the project to avoid failures Money spent during and after the project because of failures

23 Project Human Resource Management
Human resource management includes processes that organize, manage, and lead the project team Project team is comprised of individuals assigned/acquired to the roles and responsibilities for completing the project Type and number of project team members can change frequently Project team may also be referred to as the project’s staff Early involvement of all team members in project planning and decision making can be beneficial The earlier, the better Project Human Resource Management includes the processes that organize, manage, and lead the project team. The project team is comprised of the people with assigned roles and responsibilities for completing the project. The type and number of project team members can change frequently as the project progresses. Project team members may also be referred to as the project’s staff. While specific roles and responsibilities for the project team members are assigned, the involvement of all team members in project planning and decision making can be beneficial. In this section we’ll be discussing the Project Human Resource Management processes.

24 Project Communications Management
Requires most of the project manager’s time Covers tasks related to producing, compiling, sending, storing, distributing, and managing project records/information Determines what to communicate, to whom, how often and when to reevaluate the plan Has many potential dimensions, including: Internal and external Formal and informal Vertical and horizontal Official and unofficial Written and oral Verbal and non-verbal Includes the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. Project managers spend the majority of their time (approximately 90%) communicating with team members and other project stakeholders (internal/external). Communication activity has many potential dimensions, including: Internal (project) and external (customer, other projects, media, public) Formal (reports, memos, briefings) and informal ( s, ad-hoc discussions) Vertical (up/down organization) and horizontal (peers) Official (newsletters, annual report) and unofficial (off-the-record communications) Written and oral Verbal and non-verbal (voice inflections, body language)

25 Communication Model Encode Noise Message Sender Receiver Medium Decode
Memorize Encode Modifying a message so that it can be sent Noise Something that interferes with the message Message Sender Medium Receiver Responsible for making the information clear and complete so that the receiver can receive it correctly, and confirming that it is properly understood Responsible for making sure that the information is received in its entirety and understood correctly Decode Modifying a message that has been sent so that it can be understood…. ”if I understand you correctly, you are saying…. Basic Communication Model Encode: translate thoughts or ideas into a language that is understood by others Bug Exercise – If I had given my instructions in Chinese, how many would have understood the message? Message and feedback message Medium (method used to convey the message) Noise: anything that interferes with the transmission and understanding of the message (distance, unfamiliar technology, lack of background information) Was there any Noise in the bug exercise? What were they? Decode: translate the message back into meaningful thoughts or ideas. Components of the communication model must be taken into account when discussing project communications. Sender is responsible for making the information clear and complete so that the receiver can receive it correctly and for confirming that it is understood. Receiver is responsible for making sure that the information is received in its entirety, understood correctly and acknowledged. Must also consider the communication challenges due to highly technical projects, multinational project teams, etc. NOTE: A communication failure can negatively impact the project. Feedback loop and potential barriers to communication What was missing in the Bug Drawing exercise? The Feedback step was not available so the Receiver could not make sure that the information was understood correctly Feedback

26 Project Risk Management
Project risk is always in the future Risk is an uncertain event or condition that, if it occurs, has an effect on at least one project objective (e.g., scope, schedule, cost, quality) Risk may have one or more causes Requirement Assumption Constraint Condition Risk may have one or more impacts/outcomes Risk impact/outcome may be negative or positive Negative event = threat Positive event = opportunity Some common risk conditions include: Immature project management practices Project environment or your company’s environment (organizational) Lack of an integrated management system Concurrent multiple projects Dependency on external participants who cannot be controlled Threats and Opportunities PMI views risk not only as just a threat (negative event) but also as an opportunity (positive event) With proper planning, risk can be effectively managed to substantially reduce the impact to the project Effective risk management requires Thinking and talking about risks Planning Training Being proactive about managing risk The objectives of Project Risk Management are to: INCREASE the probability and impact of positive events (opportunities) DECREASE the probability and impact of negative events (threats)

27 Project Procurement Management
Procurement Management consists of four processes: Plan Procurements Conduct Procurements Administer Procurements Close Procurements Processes interact with each other and with processes from other Knowledge Areas Each process can involve effort from a group or person, based on project requirements Each process occurs at least once in every project and occurs in one or more of the project phases, if the project is divided into phases Procurement management processes involve contracts that are legal documents between a buyer and a seller In this section, we’ll be discussing the processes in the Project Procurement Management knowledge area. Plan Procurements Conduct Procurements Administer Procurements Close Procurements The processes in this section interact with each other and with the processes in the other Knowledge Areas. Each process can involve effort from a group or person, based on the requirements of the project. Each process occurs at least once in every project and occurs in one or more of the project phases, if the project is divided into phases. The project procurement management processes involve contracts that are legal documents between a buyer and a seller.

28 Finally, the Project Manager….
The Project Manager—responsible for everything required to make project a success Not like typical hierarchical line management role Project Manager center of everything relating to project Example, Controlling the contributions of seniors and peers is just as important as managing the work of the team Project Manager needs to manage Project Manager—main focal point for liaison with other departments, projects and initiatives Project Manager—main point of contact for aspects requiring co-operation and co-ordination with external parties—making sure everything is in place to guarantee success Project Manager—direct responsibility for activities of all project participants, all project tasks and all deliverables Important!.... Project Manager needs to achieve this without direct control over participants Project Manager has no power over the leadership, nor the internal and external contributors

29 Summary Proper understanding of the tools and knowing how and when to use them is the key to effectively managing your projects. OMB requirements are going to be strongly focused on Project Management and Performance Measurement But Earned Value makes sense without OMB’s motivation OMB’s requirement applies specifically to contractors.

30 Earned Value Analysis


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