MDE PROJECT MANAGEMENT

MDE 2583 - PROJECT MANAGEMENT
By Syuhaida Ismail, Ph.D, C.Eng. Mohammad Gholamzadeh, M.Eng. syuhaidaismail.com

ICE-BREAKING

AGENDA Saturday (1 March 2014) Slot Activity 9.00 am – 10.45 am
2-way lecture 10.45 am – am Break 11.00 am – pm Group assignment I 2.00 pm – 3.00 pm Industrial Talk by IEM PMTD Chairman 3.00 pm – 3.30 pm Q&A 3.30 pm – 3.45 pm 3.45 pm – 6.00 pm Group assignment II

AGENDA Sunday (2 March 2014) Slot Activity 9.00 am – 10.45 am
Group presentation 10.45 am – am Break 11.00 am – 1.00 pm Group assignment III 2.00 pm – 3.00 pm Industrial Talk by IEM PMTD Committee 3.00 pm – 3.30 pm Q&A 3.30 – 3.45 pm 3.45 pm – 6.00 pm

ASSESSMENT 1 Individual Assignment 2 x 20% 40 % 2
Case Study Group Assignment 2 x 10% 20 % 3 Post Module Assignment 1 x 40% Total 100 %

References/Bibliography
PMBOK (2008) MS Project 2013 Kerzner, R. (2013). Project Management: Systems Approach to Planning, Scheduling and Controlling. John Wiley & Sons Inc. Gray, C.F. and Larson, E.W. (2006). Project Management: The Managerial Process. New York: McGraw-Hill International Edition. Meredith, J.R. and Mantel, S.J. (2009). Project Management: A Managerial Approach. John Wiley & Sons Inc.

IMPORTANCE OF PROJECT MANAGEMENT
Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among: * Scope, time, cost and quality. * Stakeholders with differing needs and expectations. * Identified requirements (needs) and * Unidentified requirements (expectations) 7

WHAT IS PROJECT MANAGEMENT?
Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project” (PMI*, Project Management Body of Knowledge (PMBOK Guide), 1996, p. 6)

OPERATION VS PROJECT Operation Existing systems Repetitive work
Efficiency and effectiveness Reliance on standard procedures Line management Focus on “maintaining” Project One-time resource configuration Unique and separate work Cohesion and direction End-product driven Stakeholder driven Project orientation Focus on “change” Projects may involve a single person or many thousands. They may involve a single unit of the organization or may cross organizational boundaries. Projects operate in an environment broader than that of the project. The project team must understand its relation in the context of the greater business environment such as life cycles, stakeholders, organizational influence, management skills and socio-economic influences. Project management overlaps with general management and application knowledge. However, much of the knowledge needed to manage projects is unique, or nearly unique, to project management. 6

CHARACTERISTICS OF A PROJECT
Specific objectives- Time, Cost & Performance Multi-Disciplinary – different disciplines, companies and countries Temporary undertakings- definite start and end date; therefore of finite duration Consume and compete for scarce resources Produce unique and one-off outcomes Phases - Project has a number of phases/schedule Usually have own budgets One leader assigned overall responsibility Projects are subject to a lot of changes Subject to conflicts

PROJECT OBJECTIVES Performance and quality standards
Safety and reliability Timescales and timing of events Costs: budgets and rates of spend Use of resources Value and cost benefits/effectiveness Management requirements and contract agreements

PROJECT STAKEHOLDERS Stakeholders are the people involved in or affected by project activities Stakeholders include the project sponsor and project team support staff customers users suppliers opponents to the project

WHEN IS A PROJECT A PROJECT?
Stewart (1965) uses four criteria Scope- definable in terms of a single, specified end result Unfamiliarity-unique, infrequent, more uncertainty Complexity- greater degree on interdependency amongst tasks Stake (risk)- Outcome affects company’s stake

TRIPLE CONSTRAINTS OF PROJECT MANAGEMENT
Solutions must not exceed boundaries

NORMAL MEASURES OF SUCCESS
New Products New Markets New Facilities New Organisational Forms Etc Subject to the triple constraints of satisfying Time, Cost and Performance criteria

TORRE DAVID Is Torre David a failure or a success? Discuss.
How do you measure the success/failure What are the factors that most influence a successful/failed project outcome? What are the causes that lead to under-performing of projects? How do they arise?

OTHER MEASURES OF PROJECT SUCCESS
National pride or security Learning and experience Improved status and visibility Training and development Opportunities for authority and responsibility Improved ability/skills

SYDNEY OPERA HOUSE- PROJECT MANAGEMENT FAILURE?
"The construction of the beautiful freestanding, sculptural tripartite Opera House was one of the longest contractual sagas of the century. Sadly, architect Jorn Utzon became the scapegoat of a scandalous political affair and in 1966 withdrew from his project. Originally, the winner of an international open competition in 1957, it was a scheme that broke most of the rules. It was finally completed in August 1973 by other hands under the direction of Peter Hall."

IRONIC ISN’T IT? Despite its failure as a PM exercise, the Sydney Opera House is considered a world-class venue for opera and a tourist attraction. It is one of the 20th century's most distinctive buildings and one of the most famous performing arts centres in the world. So, are we confusing between the project exercise and the result of a project?

CONCORDE-FAILURE ? Conceived in The first prototype (aircraft 001 F-WTSS) was rolled out on 11 December 1967, but extensive ground testing meant that it didn't fly until 2 March In December 1971, the first pre-production aircraft (101) made its maiden flight. However, the oil crisis sparked by the 'Yom Kippur' war of 1973 had a most devastating affect on sales. The soaring cost of fuel rendered Concorde completely uneconomic for all but state-subsidised airlines.

SUCCESS IN FAILURE Although the Concorde was a commercial failure, it was a marvellous engineering success and flew for almost thirty years until its retirement in 2003.

MARS POLAR LANDER’S FAILURE OF SIMPLE NASA SYSTEM ENGINEERING ERROR

PROJECT MANAGEMENT FRAMEWORK
9 Knowledge Areas Core Functions Scope Mgt. Time Mgt. Cost Mgt. Quality Mgt. Tools and techniques Project Success Project Management Integration Stakeholder needs and expectations HR Mgt. Comm. Mgt. Risk Mgt. Procure. Mgt. Facilitating Functions

Project Management Process Groups
Knowledge Areas Project Management Process Groups Initiating Planning Executing Monitoring and Controlling Closing Project Integration Management Develop project charter Develop project management plan Direct and manage project execution - Monitor and control project work - Perform integrated change control Close project or phase Project Scope Management - Collect requirements - Define scope - Create work breakdown structure (WBS) - Verify scope - Control scope Project Time Management - Define activities - Sequence activities - Estimate activity resources - Estimate activity durations - Develop schedule Control schedule Project Cost Management - Estimate costs - Determine budget Control costs Project Quality Management Plan quality Perform quality assurance Perform quality control Project Human Resource Management Develop human resource plan - Acquire project team - Develop project team - Manage project team Project Communications Management Identify stakeholders Plan communications - Distribute information - Manage stakeholder expectations Report performance Project Risk Management - Plan risk management - Identify risks - Perform qualitative risk analysis - Perform quantitative risk analysis - Plan risk responses Monitor and control risks Project Procurement Management Plan procurements Conduct procurements Administer procurements Close procurements

PROJECT INTEGRATION MANAGEMENT
Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle Many new project managers have trouble looking at the “big picture” and want to focus on too many details

RESPONSIBILITY AND AUTHORITY
Senior management commitment to Project Management concept is vital Project Manager must clear authority and responsibility over personnel -50% of the battle for project success Leadership is crucial-in all cases, these can only be one responsible project leader

KEY TO SUCCESS People processes of Teamwork and Leadership as well as Tools and Techniques Blending of Hard & Soft Methods and Techniques are important in Project Management

Tools in Project Management
Microsoft Project (MSP) Primavera Project Planner (P3) Primavera Professional Project Management (P6)

Project Management Structures
Enterprise Project Structure (EPS) Work Break Down Structure (WBS) Water Sewage Company Operation & Logistic Water Abadan Ahwaz Project1 Project 2 Project 3 Sewage Human Resource Marketing Project1 Office Building Design Construct Civil &Structural Mechanical and electrical equipment Exterior Interior Oxidation Ponds Transformation Software

PROJECT LIFE CYCLE Time Distribution of Project Effort
Conception Selection Planning, scheduling, monitoring, control Evolution and termination

Project Management Process
Process Groups Interact in a Phase or Project

PROJECT LIFE-CYCLE

FACTORS AFFECTING PROJECT OUTCOME
Project manager Project team Stakeholder Scope, goals and objectives Communication Risks Early Project phase work Important matters Alternatives Planning Control Outsourcing Documentation

PROJECT CATEGORIES BY TIME SCALES
Long Term (over 10 years) Electrification / Water pipes replacement Defence Upgrading Medium Term (3 to 10 years) Construction of a Dam Computerisation of schools Short term (0.5 to 3 years) Organisation of conferences/ new consumer products Hotel construction Special small scale Emergency evacuation JE vaccination

(Multi Media Super Corridor)
TYPES OF PROJECTS Project Results Well Defined Poorly Defined TYPE 1 (KLIA) TYPE 3 (Software) TYPE 2 (A380 Airbus) TYPE 4 (Multi Media Super Corridor) Project methods

DISCUSSIONS Give examples of project types in your organisation and reason out why you assign them into the above categories TYPE 1- ……………………………. TYPE 2- ……………………………. TYPE 3- ……………………………. TYPE 4- …………………………….

Unrealistic schedules Unrealistic budgets Unrealistic objective
PROJECT CONSTRAINTS Inadequate resources Unrealistic schedules Unrealistic budgets Unrealistic objective Conflicts

PROJECT MANAGEMENT PROBLEMS
1. Inadequate resources. 2. Unrealistic deadlines. 3. Unclear goals or direction. 4. Team members uncommitted. 5. Insufficient planning. 6. Communication breakdown. 7. Changes in goals and/or resources. 8. Conflicts between functions or departments. 9. Underestimation of the technical difficulty 10. Problems with software projects. 11. Inability to control contractors work and failure to use specialist staff. 12. Weakness in contract arrangements. 13. Lack of effective planning and control. 14. Interruptions in funding (escalation to escalation). 15. Non-compliance with procedures

Scope Management

Project Scope Management
Organisation scope – defining scopes amongst organisations involved Project scope – defining scopes of the project itself Activity scope – determining how detailed you want to cover the activity

Project Time Management
Create project calendar Define WBS Define the activities Determine sequence of activities Estimate activities duration Estimate activities resources Determine constraints and limitation Develop schedule Control

WORK BREAKDOWN STRUCTURE
A work breakdown structure (WBS) is an outcome-oriented analysis of the work involved in a project that defines the total scope of the project A graphical display of the project that shows division of work in a multilevel system The concept of the WBS is simple: in order to manage a whole project, one must manage/control each of its part It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes

WBS defines: Work to be performed The needed expertise, Selection of the project team, Base for project scheduling and control The development of WBS is a continuing process: Starts when the project is first assigned to the project manager Continues until all work packages have been defined

Figure 4-6a. Sample of Intranet WBS Organized by Product
Copyright Course Technology 1999

Figure 4-6b. Sample Intranet WBS Organized by Phase
Copyright Course Technology 1999

Table 4-3. Intranet WBS in Tabular Form
1.0 Concept 1.1 Evaluate current systems 1.2 Define Requirements 1.2.1 Define user requirements 1.2.2 Define content requirements 1.2.3 Define system requirements 1.2.4 Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team 2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support

Figure 4-7. Intranet WBS and Gantt Chart in Microsoft Project 98

APPROACHES TO DEVELOP WBS
Using guidelines: Some organizations, like the DOD, provide guidelines for preparing WBSs The analogy approach: It often helps to review WBSs of similar projects The top-down approach: Start with the largest items of the project and keep breaking them down The bottoms-up approach: Start with the detailed tasks and roll them up

BASIC PRINCIPLES FOR CREATING WBS
1. A unit of work should appear at only one place in the WBS. 2. The work content of a WBS item is the sum of the WBS items below it. 3. A WBS item is the responsibility of only one individual, even though many people may be working on it. 4. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical. 5. Project team members should be involved in developing the WBS to ensure consistency and buy-in. 6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item. 7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement. *Cleland, David I. Project Management: Strategic Design and Implementation, 1994

Sample of Activity Definition Form
WBS: Date: Activity Code Activity Name Duration Predecessor Lag Constraint/ Limitation Resource Cost Project Manager Signature: Supervisor Signature: Provider Signature:

CREATE A WBS FOR SATAY BARBEQUE
Assumptions Vegetables are uncut Nasi impit is uncut Kuah is unheated Satay is raw Satay Grill ready but no fire Arang/coal ready Fire lighter available Lighter available Plates are available Activity ends when satay is served as shown

Serve Satay Veggies & Nasi Impit Prepare Satay Grill Barbeque & Serve 1.1 Cut nasi impit 1.2 Cut onions 1.3 Cut cucumbers 1.4 Warm up sauce 2.1 Put charcoal in grill 2.2 Light Fire 2.3 Spread charcoal 3.1 Put Satay on Grill 3.2 Grill & Serve 1 2 3

Heat up Kuah Cut Nasi Impit Cut Cucumber Cut Onions Light fire
Spread coals Cook Satay Serve Satay on plate

WHY ARE PROJECTS HARD? Resources Planning People, materials
What needs to be done? How long will it take? What sequence? Keeping track of who is supposedly doing what, and getting them to do it

IT PROJECTS Half finish late and over budget
Nearly a third are abandoned before completion The Standish Group, in Infoworld Get & keep users involved & informed Watch for scope creep / feature creep

PROJECT SCHEDULING Establishing objectives
Determining available resources Sequencing activities Identifying precedence relationships Determining activity times & costs Estimating material & worker requirements Determining critical activities

Hierarchy of what needs to be done, in what order For me, the hardest part I’ve never done this before. How do I know what I’ll do when and how long it’ll take? I think in phases The farther ahead in time, the less detailed Figure out the tricky issues, the rest is details A lot will happen between now and then It works not badly with no deadline

MUDROOM REMODEL Big-picture sequence easy: Hard: can a sink fit?
Demolition Framing Plumbing Electrical Drywall, tape & texture Slate flooring Cabinets, lights, paint Hard: can a sink fit? W D W

PROJECT SCHEDULING TECHNIQUES
Gantt chart Critical Path Method (CPM) Program Evaluation & Review Technique (PERT)

GANTT CHART

PERT & CPM Network techniques/analysis system
Consider precedence relationships & interdependencies Each uses a different estimate of activity times

CRITICAL PATH METHOD (CPM)
Developed in 1956 – by the DuPont Company with Remington Rand as consultants, as a deterministic approach to scheduling. Commonly used in the engineering and construction industry.

PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)
Program Evaluation and Review Technique (PERT) -Similar method Developed in 1957 – by the US Navy, with Booz, Allen & Hamilton Management Consultants, as a probabilistic approach to scheduling for Polaris missile Commonly used by the manufacturing industry Both methods are often referred to as a network analysis system.

CRITICAL PATH METHOD (CPM)
The purpose of CPM is Plan the work Guide the progress of a project Provide a baseline for project control

PERT & CPM STEPS Identify activities Determine sequence Create network
Determine activity times Find critical path Earliest & latest start times Earliest & latest finish times Slack

TERMINOLOGY Activity Event A specific task or set of tasks
Use resources and take time to complete e.g. concreting Event The result of completing one or more activities Use no resources Chapter 8-9

TERMINOLOGY Network Combination of all activities and events
Define the project and the activity precedence relationships Chapter 8-9

TERMINOLOGY Path Critical
Series of connected activities (or intermediate events) between any two events in a network Critical Activities, events, or paths which, if delayed, will delay the completion of the project A sequence of critical activities that connect the project’s start event to its finish event Chapter 8-10

TERMINOLOGY An activity can be in any of these conditions:
It may have a successor(s) but no predecessor(s) - starts a network It may have a predecessor(s) but no successor(s) - ends a network It may have both predecessor(s) and successor(s) - in the middle of a network Chapter 8-11

3 1 2 Activity on Node (AoN) Project: Obtain a Master’s Degree
Attend class, study etc. Receive Master Enroll 3 1 2 1 month 2? Years 1 day

Activity on Arrow (AoA)
Project: Obtain a Master’s Degree Attend class, study, etc. Receive Master Enroll 1 2 3 4 1 month 2 ? Years 1 day

1 2 3 4 AoA Nodes Have Meaning Project: Obtain a Master’s Degree
Applicant Student Graduating Alumni

Terminology event activity Indicator b = concreting Chapter 8-9

We’ll use Activity on Node
3 2 1 4 1-2 must be done before 2-3 or 3-4 can start

Activity Relationships
2-3 must be done before 3-4 or 3-5 can start 3 5 2 1 4

2-4 and 3-4 must be done before 4-5 can start 3 5 2 1 4

When 5-6 is done, project is complete. 3 5 6 2 1 4

NETWORK EXAMPLE You’re a project manager for Bechtel. Construct the network. Activity Predecessors A -- B A C A D B E B F C G D H E, F

NETWORK EXAMPLE - AON D G B A E Z C H F

NETWORK EXAMPLE - AON

NETWORK EXAMPLE - AOA D G 3 6 8 B E A 1 2 5 H 7 9 C F 4

AOA DIAGRAMS A precedes B and C, B and C precede D B A 1 2 3 D 4 C 3 B A 1 2 C 4 D 5 Add a phantom arc for clarity.

LET’S TRY THIS! Activity Predecessor A - B C D A,B

DUMMY An activity with zero duration
Links together activities whose sequence would otherwise not be shown Indicated by a dashed arrow Show the sequence between activities e.g. activity A and D without the problem of linking Activity B with Activity C Is determined by looking at the activity list and find those activities that share some, but not the entire set of prior activities.

CRITICAL PATH ANALYSIS
Provides activity information Earliest (ES) & latest (LS) start Earliest (EF) & latest (LF) finish Slack (S): Allowable delay Identifies critical path Longest path in network Shortest time project can be completed Any delay on activities delays project Activities have 0 slack or float *Critical activities = Activities in critical path. Have no float i.e. ES = EF and/or LS = LF. Indicated with double line.

CRITICAL PATH ANALYSIS

SLACK/FLOAT

SLACK/FLOAT Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION TF = LF – EF = LS - ES Free float: Amount of time that an activity’s start can be delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY FF = ES NEXT ACTIVITY – EF THAT ACTIVITY

COMPUTE SLACK/FLOAT

Activity on arrow network – Figure 1.0
3 7 6 4 5 2 A D G B E L H F C J M K

The duration (in weeks) of the activities in the network are given as listed below:-
J – 8 K – 17 L – 4 M – 12

EXAMPLE 1 Find The minimum project time
The earliest and latest times for each event The critical path

CRITICAL PATH ANALYSIS EXAMPLE 2

NETWORK SOLUTION B D E A G 2 6 3 1 1 C F 3 4

EARLIEST START & FINISH STEPS
Begin at starting event & work forward ES = 0 for starting activities ES is earliest start EF = ES + Activity time EF is earliest finish ES = Maximum EF of all predecessors for non-starting activities

ACTIVITY A EARLIEST START SOLUTION
D B C F G 1 6 2 3 4 For starting activities, ES = 0.

EARLIEST START SOLUTION
D B C F G 1 6 2 3 4

LATEST START & FINISH STEPS
Begin at ending event & work backward LF = Maximum EF for ending activities LF is latest finish; EF is earliest finish LS = LF - Activity time LS is latest start LF = Minimum LS of all successors for non-ending activities

EARLIEST START SOLUTION
D B C F G 1 6 2 3 4

LATEST FINISH SOLUTION
D B C F G 1 6 2 3 4

SLACK/FLOAT

SLACK/FLOAT Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION Free float: Property of an activity and not the network path that an activity is part of. It is the amount of time that an activity’s start can be delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY

COMPUTE SLACK/FLOAT

CRITICAL PATH A E D B C F G 1 6 2 3 4

NEW NOTATION C 7 Compute ES, EF for each activity, Left to Right
LS LF Compute ES, EF for each activity, Left to Right Compute, LF, LS, Right to Left

EXHIBIT 2.6, P.35 C 7 F 8 A 21 G 2 B 5 D 2 E 5

EXHIBIT 2.6, P.35 21 28 28 36 C 7 F 8 0 21 36 38 A 21 G 2 28 33 21 26 26 28 B 5 D 2 E 5 F cannot start until C and D are done. G cannot start until both E and F are done.

EXHIBIT 2.6, P.35 21 28 28 36 C 7 F 8 21 28 28 36 0 21 36 38 A 21 G 2 0 21 36 38 28 33 21 26 26 28 B 5 D 2 E 5 21 26 26 28 31 36 E just has to be done in time for G to start at 36, so it has slack. D has to be done in time for F to go at 28, so it has no slack.

EXHIBIT 2.6, P.35 21 28 28 36 C 7 F 8 21 28 28 36 0 21 36 38 A 21 G 2 0 21 36 38 28 33 21 26 26 28 B 5 D 2 E 5 21 26 26 28 31 36

GANTT CHART - ES A C B D E F G

CAN WE GO FASTER?

TIME-COST MODELS 1. Identify the critical path
2. Find cost per day to expedite each node on critical path. 3. For cheapest node to expedite, reduce it as much as possible, or until critical path changes. 4. Repeat 1-3 until no feasible savings exist.

What about Uncertainty?

 PERT ACTIVITY TIMES 3 time estimates Follow beta distribution
Optimistic times (a) Most-likely time (m) Pessimistic time (b) Follow beta distribution Expected time: t = (a + 4m + b)/6 Variance of times: v = (b - a)2/36 

PROJECT TIMES Expected project time (T) Project variance (V)
Sum of critical path activity times, t Project variance (V) Sum of critical path activity variances, v

C B A EXAMPLE Activity a m b E[T] variance A 2 4 8 4.33 1
6.48 7.67 Activity a m b E[T] variance A B C Project

BENEFITS OF PERT/CPM Useful at many stages of project management
Mathematically simple Use graphical displays Give critical path & slack time Provide project documentation Useful in monitoring costs

LIMITATIONS OF PERT/CPM
Clearly defined, independent & stable activities Specified precedence relationships Activity times (PERT) follow beta distribution Subjective time estimates Over emphasis on critical path

Risk Management

WHAT IS RISK? A risk is a potential problem characterised by: (a) A likelihood of occurrence (b) A potential impact

SOURCES OF RISK 1. Use of new or untried technology
2. Inexperienced team 3. Poor Project management structure Lack of resource or resource conflicts 5. Work takes longer than planned 6. Deliveries from supplier late 7. Insufficient production facilities 8. Placing of subcontract and purchase orders 10. Replace key, sick or holidaying personnel 11. Weather may delay work 12. Labour disputes may delay work 13. Poor cost estimates 14. Currency conversion rates may changes Interfaces with other people, departments and companies. Pressure from NGOs, Politicians, Crooks Global Weather Changes Natural Disasters

RISK ASSESSMENT MAP Impact Probability Low Medium High ?

Management Structure

FUNCTIONAL, PROJECT AND MATRIX ORGANIZATIONAL STRUCTURES

ORGANIZATION STRUCTURE INFLUENCES ON PROJECTS
PMBOK Guide, 1996, p. 18 The organizational structure influences the project manager’s authority, but remember to address the human resources, political, and symbolic frames, too.

DISTINCTIONS BETWEEN PROJECT AND FUNCTIONAL MANAGEMENT
Job of functional managers go on forever They operate and optimise the use of resources of overall company basis Job of project managers is over once project is finished They optimise resources of a project Different definitions of optimisation may lead to conflicts

ADVANTAGES OF PROJECT MANAGEMENT ORGANISATIONAL APPROACH
Teamwork- better motivation & Communication Synergism- high performing team Cross-Border management- diff cultures, functions and boundaries Forward Looking- what else needs doing Clent Relations- one point of contact Results – more effective

Project Measurement

EARNED VALUE MANAGEMENT SYSTEMS (EVMS)
BASIC CONCEPTS Presented By Sean Alexander (703) or (888)

EVMS OBJECTIVES Plan all work prior to beginning it
Measure performance based on an objective set of technical criteria Analyze schedule status and projections using a time phased CPM network Analyze the expenditure of funds in light of the work accomplished (not work scheduled)

EVMS OBJECTIVES Isolate problems:
Quantify technical problems within the context of cost and schedule parameters; Not aimed at replacing or changing the process for technical problem detection; Forecast completion date and final cost; Take corrective action; Maintain disciplined control of the performance measurement baseline.

BUDGET STRUCTURE Profit/Fee Negotiated Changes
Written Change Authorization, Not Negotiated Contract Authorized, Unpriced Work Contract Cost Management Reserve Undistributed Budget Contract Budget Base (CBB) Performance Measurement Baseline (PMB) Distributed Budget [S of all CAs]

EARNED VALUE TERMINOLOGY
Data Element Term Acronym Scheduled Work Budgeted Cost for Work Scheduled BCWS Earned Value Budgeted Cost for Work Performed BCWP Actuals Actual Cost of Work Performed ACWP Authorized Work Budget At Completion BAC Forecasted Cost Estimate At Completion EAC Work Variance Schedule Variance SV Cost Variance CV Completion Variance Variance At Completion VAC

EARNED VALUE DATA ELEMENTS
T/N EAC ETC VAC CBB MR BAC (PMB) Projected Program Delay BCWS ACWP BCWP Schedule Variance Cost Variance Schedule Slip

CWBS/OBS INTEGRATION SELECTED PSWBS ELEMENTS SELECTED REPORTING
SOFTWARE INTEGRATION PROGRAM SELECTED PSWBS ELEMENTS Product Development Master Planning SELECTED REPORTING ELEMENTS Ada Products Software Tools Standards Ada Study Ada Conversion Ada Approach CWBS EXTENSION FUNCTIONAL ORGANIZATION CPCI #1 MOS CPCI #2 MOLE CPCI #3 MAC WBS DATA SUMMAR I ZAT ON Marketing Ada Applications Control Account Control Account Control Account VP/GM Engineering Software Engineering Secure Systems Control Account Work Packages Operations Hardware Engineering LAN Applications Control Account Control Account BCWS BCWP ACWP BAC EAC Planning Packages OBS DATA SUMMARIZATION

CONTROL ACCOUNT ELEMENTS
Work Packages Detailed, short-span tasks, or material items, required to accomplish the CA objectives, typically in the near term Planning Packages Future work that has not been detail planned as work packages. They are always scheduled to occur in the future. Task 1 Work Packages Task 2 Task 3 Task 4 Planning Packages Task 5

EARNED VALUE TECHNIQUES
A predetermined amount of value, i.e. budget, that is claimed, or earned, when the corresponding work is accomplished. The budget value is earned in one of the following ways: 0/100 X/Y Percent 25/75 40/60 50/50 Milestone Weights Milestone Weights with Percent Complete % Complete Subjective Estimate Objective Indicators Apportioned Effort Level of Effort

Budgets vs Funds

BCWS vs ETC Budgeted Cost for Work Scheduled (BCWS)
Time phased budget spread of required resources for the entire task. Forms the Performance Measurement Baseline (PMB). Estimate To Complete (ETC) Funding required to complete remaining work. When added to ACWP, it results in the EAC.

THE PLAN (BCWS) AND THE ETC
The BCWS & BAC represent the work. The ETC & EAC represent the funds (i.e., money) required for that work. BAC/ EAC BCWS ETC

BAC vs EAC Budget At Completion (BAC) Estimate At Completion (EAC)
Budgetary number representing ALL authorized work (i.e., the SOW). Cannot change without a change to the SOW, or appropriate approval. Estimate At Completion (EAC) Funding number representing ALL the money that will be spent. Can change without a commensurate change to the SOW.

BUDGET VS FUNDS Budget Funds A number written on a piece of paper
Cannot be spent BCWS BCWP BAC Actuals Expenditures & estimates of future spending ETC ACWP EAC

DATA ANALYSIS RELATIONSHIPS
Term Symbol Formula Checklist Actions Percent Complete % Done BCWP Ratio of work accomplished in terms of the total amount of work to do. BAC Cost Performance Index CPI or PF BCWP Ratio of work accomplished against money spent (an efficiency rating: Work or Performance Factor ACWP Done for Resources Expended) To Complete TCPI or VF BAC - BCWP Ratio of work remaining against money remaining (Efficiency which must be Performance Index EAC - ACWP achieved to complete the remaining work with the expected remaining money) or Verification Factor Schedule Performance Index SPI BCWP Ratio of work accomplished against what should have been done (Efficiency BCWS Rating: Work done as compared to what should have been done) Ratio of Schedule Variance (SV) in terms of average amount of work Schedule Correlation SC or S/C P CUM accomplished (in weeks or months). It indicates a correlation to program true SV schedule condition 1) BAC Calculation of a projected Estimate At Completion to compare with the CAM's Estimate At Completion: Independent Estimate IEAC PF At Completion 2) 1) Ration of total work to be done against experienced cost efficiency BAC - BCWP 2) Sunk costs added to a ratio of remaining work against weighted cost and ACWP + .8CPI + .2SPI schedule efficiencies BCWPcum Average Performance P Duration (wks or mos) Average rate at which work has been accomplished since work began CUM Since ACWP Began BCWPcum Duration (wks or mos) Average Expected Performance To Finish P From Time Now to Average rate at which work must be accomplished in the future to finish on the TO GO Manager's Stated date the CAM has forecasted for completion of the work. Completion Date

BENEFITS OF EVMS Clear definition of work prior to beginning that work
Helps the line manager credibly request appropriate resources Provides the basis for a realistic plan against which to measure performance

BENEFITS OF EVMS Objective measurement of work accomplishment
Helps the line manager develop plans that are rooted in reality If the task can be done within scope, schedule, budget; confidence in a successful outcome is increased If the task cannot be done within scope, schedule, budget; that problem can be defined and resolved at a time when the resolution will be reasonably inexpensive Assists the line manager to request needed help Assists program and functional management to identify areas requiring additional management attention

BENEFITS OF EVMS Provides true cost condition
Side-steps false cost variances Encourages realistic projections of final cost Enhances accuracy of funding forecasts

BENEFITS OF EVMS Reduces propensity of customer/boss to add work without adding budget Ties budget directly to work Requires all work transfers to include associated budget Requires all budget transfers to include associated work Fosters management decisions within a framework of reality, rather than latent unease

EARNED VALUE DATA ELEMENTS
Time Now Estimate at Completion (EAC) ETC Variance at Completion (VAC) Project Budget Base Management Reserve Budget at Completion (BAC) Projected Project Delay BCWS ACWP BCWP Schedule Variance Cost Variance Schedule Slip

EARNED VALUE TERMINOLOGY
Data Element Term Acronym Scheduled Work Budgeted Cost for Work Scheduled BCWS Earned Value Budgeted Cost for Work Performed BCWP Actuals Actual Cost of Work Performed ACWP Authorized Work Budget At Completion BAC Forecasted Cost Estimate At Completion EAC Work Variance Schedule Variance SV Cost Variance CV Completion Variance Variance At Completion VAC

EARNED VALUE EXERCISE – FENCE PROJECT
Calculation of Earned Value

Project Communications Management

IMPORTANCE OF GOOD COMMUNICATIONS
The greatest threat to many projects is a failure to communicate Strong verbal skills are a key factor in career advancement for Project Managers

PROJECT COMMUNICATIONS MANAGEMENT PROCESSES
Communications planning: determining the information and communications needs of the stakeholders Information distribution: making needed information available in a timely manner Performance reporting: collecting and disseminating performance information Administrative closure: generating, gathering, and disseminating information to formalize phase or project completion

COMMUNICATIONS PLANNING
Every project should include some type of communications management plan, a document that guides project communications Creating a stakeholder analysis for project communications also aids in communications planning

COMMUNICATIONS MANAGEMENT PLAN CONTENTS
A description of a collection and filing structure for gathering and storing various types of information A distribution structure describing what information goes to whom, when, and how A format for communicating key project information A project schedule for producing the information Access methods for obtaining the information A method for updating the communications management plans as the project progresses and develops A stakeholder communications analysis

INFORMATION DISTRIBUTION
Getting the right information to the right people at the right time and in a useful format is just as important as developing the information in the first place Important considerations include using technology to enhance information distribution formal and informal methods for distributing information

PERFORMANCE REPORTING
Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives Status reports describe where the project stands at a specific point in time Progress reports describe what the project team has accomplished during a certain period of time Project forecasting predicts future project status and progress based on past information and trends Status review meetings often include performance reporting

CASE-STUDY LYNAS - WHAT ARE THE ISSUES?

LYNAS CASE-STUDY – GROUP WORK
Use the internet to get all the information Identify project stakeholders What are the issues? What are project benefits? What are the project risks? (major & minor) Why are there conflicts? How to resolve conflicts? How can management inform the public?

ADMINISTRATIVE CLOSURE
A project or phase of a project requires closure Administrative closure produces project archives formal acceptance lessons learned

SUGGESTIONS FOR IMPROVING PROJECT COMMUNICATIONS
Resolve conflicts effectively Develop better communication skills Run effective meetings Use templates for project communications

CONFLICT HANDLING MODES IN ORDER OF PREFERENCE
Confrontation or problem-solving: directly face a conflict Compromise: use a give-and-take approach Smoothing: de-emphasize areas of differences and emphasize areas of agreement Forcing: the win-lose approach Withdrawal: retreat or withdraw from an actual or potential disagreement

Project Closure

WHAT IS INVOLVED IN CLOSING PROJECTS?
Closing processes include gaining stakeholder acceptance of the final product and bringing the project or phase to an orderly end Closing verifies that all of the deliverables have been completed A project audit is often done

TRANSITION PLANNING It is important to plan for and execute a smooth transition of the project into the normal operations of the company Most projects produce results that are integrated into the existing organizational structure Some projects require the addition of new organizational structures Some projects end by extinction or starvation

ADMINISTRATIVE CLOSURE
Administrative closure involves verifying and documenting project results to formalize acceptance of the products produced collecting project records ensuring products meet specifications analyzing whether the project was successful and effective archiving project information for future use

FINAL REPORT OUTLINE Cover page
Table of contents and executive summary (for a long report) Need for the project Project description and letter of agreement Overall outcome of the project and reasons for success or failure Project management tools and techniques used and assessment of them Project team recommendations and future considerations Final project Gantt chart Attachments with all deliverables

Closing Remarks

CURRENT & FUTURE OF PM (- Pinto and Kharbanda 1995)
PM approach will replace functional line management Globalisation needs PM approach Trend towards flat, flexible organisation PM used as competitive weapon PM concept changes from decision maker, boss director to leader, coach & facilitator

THE END

PETRONAS TWIN TOWERS Identify the PETRONAS Twin Towers’ stakeholders, their roles and interests. Discuss the risks faced during the project management processes of the PETRONAS Twin Towers. Appraise the mitigation to the above risks in terms of innovations.

BOSCH POWER TOOLS: THE DELTA-SANDER PROJECT (A)
What are the problems facing the Bosch Delta-Sander project? What are the steps required by Mr. Klaus Huttelmaier in order to rectify the problems? Should the Bosch Delta-Sander be exhibited in Cologne? Give your opinions.

INDIVIDUAL ASSIGNMENT
“When management does not speak with one voice, then it becomes a peripheral opponent to the team’s mission”. Discuss. Why do you think SC still implemented Construction Management approach although the SC management team was facing various issues throughout the SC project?

MDE PROJECT MANAGEMENT

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