3 AGENDA Saturday (1 March 2014) Slot Activity 9.00 am – 10.45 am 2-way lecture10.45 am – amBreak11.00 am – pmGroup assignment I2.00 pm – 3.00 pmIndustrial Talk by IEM PMTD Chairman3.00 pm – 3.30 pmQ&A3.30 pm – 3.45 pm3.45 pm – 6.00 pmGroup assignment II
4 AGENDA Sunday (2 March 2014) Slot Activity 9.00 am – 10.45 am Group presentation10.45 am – amBreak11.00 am – 1.00 pmGroup assignment III2.00 pm – 3.00 pmIndustrial Talk by IEM PMTD Committee3.00 pm – 3.30 pmQ&A3.30 – 3.45 pm3.45 pm – 6.00 pm
5 ASSESSMENT 1 Individual Assignment 2 x 20% 40 % 2 Case Study Group Assignment2 x 10%20 %3Post Module Assignment1 x 40%Total100 %
6 References/Bibliography PMBOK (2008)MS Project 2013Kerzner, 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.
7 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
9 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)
10 OPERATION VS PROJECT Operation Existing systems Repetitive work Efficiency and effectivenessReliance on standard proceduresLine managementFocus on “maintaining”ProjectOne-time resource configurationUnique and separate workCohesion and directionEnd-product drivenStakeholder drivenProject orientationFocus 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
11 CHARACTERISTICS OF A PROJECT Specific objectives- Time, Cost & PerformanceMulti-Disciplinary – different disciplines, companies and countriesTemporary undertakings- definite start and end date; therefore of finite durationConsume and compete for scarce resourcesProduce unique and one-off outcomesPhases - Project has a number of phases/scheduleUsually have own budgetsOne leader assigned overall responsibilityProjects are subject to a lot of changesSubject to conflicts
13 PROJECT OBJECTIVES Performance and quality standards Safety and reliabilityTimescales and timing of eventsCosts: budgets and rates of spendUse of resourcesValue and cost benefits/effectivenessManagement requirements and contract agreements
14 PROJECT STAKEHOLDERSStakeholders are the people involved in or affected by project activitiesStakeholders includethe project sponsor and project teamsupport staffcustomersuserssuppliersopponents to the project
15 WHEN IS A PROJECT A PROJECT? Stewart (1965) uses four criteriaScope- definable in terms of a single, specified end resultUnfamiliarity-unique, infrequent, more uncertaintyComplexity- greater degree on interdependency amongst tasksStake (risk)- Outcome affects company’s stake
16 TRIPLE CONSTRAINTS OF PROJECT MANAGEMENT Solutions must not exceed boundaries
17 NORMAL MEASURES OF SUCCESS New ProductsNew MarketsNew FacilitiesNew Organisational FormsEtcSubject to the triple constraints of satisfying Time, Cost and Performance criteria
22 TORRE DAVID Is Torre David a failure or a success? Discuss. How do you measure the success/failureWhat 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?
23 OTHER MEASURES OF PROJECT SUCCESS National pride or securityLearning and experienceImproved status and visibilityTraining and developmentOpportunities for authority and responsibilityImproved ability/skills
24 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."
25 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?
26 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.
27 SUCCESS IN FAILUREAlthough the Concorde was a commercial failure, it was a marvellous engineering success and flew for almost thirty years until its retirement in 2003.
28 MARS POLAR LANDER’S FAILURE OF SIMPLE NASA SYSTEM ENGINEERING ERROR
29 PROJECT MANAGEMENT FRAMEWORK 9 Knowledge Areas Core FunctionsScopeMgt.TimeMgt.CostMgt.QualityMgt.Tools andtechniquesProjectSuccessProject Management IntegrationStakeholderneeds and expectationsHRMgt.Comm.Mgt.RiskMgt.Procure.Mgt.Facilitating Functions
30 Project Management Process Groups Knowledge AreasProject Management Process GroupsInitiatingPlanningExecutingMonitoring and ControllingClosingProject Integration ManagementDevelop project charterDevelop project management planDirect and manage project execution- Monitor and control project work- Perform integrated change controlClose project or phaseProject Scope Management- Collect requirements- Define scope- Create work breakdown structure (WBS)- Verify scope- Control scopeProject Time Management- Define activities- Sequence activities- Estimate activity resources- Estimate activity durations- Develop scheduleControl scheduleProject Cost Management- Estimate costs- Determine budgetControl costsProject Quality ManagementPlan qualityPerform quality assurancePerform quality controlProject Human Resource ManagementDevelop human resource plan- Acquire project team- Develop project team- Manage project teamProject Communications ManagementIdentify stakeholdersPlan communications- Distribute information- Manage stakeholder expectationsReport performanceProject Risk Management- Plan risk management- Identify risks- Perform qualitative risk analysis- Perform quantitative risk analysis- Plan risk responsesMonitor and control risksProject Procurement ManagementPlan procurementsConduct procurementsAdminister procurementsClose procurements
31 PROJECT INTEGRATION MANAGEMENT Project managers must coordinate all of the other knowledge areas throughout a project’s life cycleMany new project managers have trouble looking at the “big picture” and want to focus on too many details
32 RESPONSIBILITY AND AUTHORITY Senior management commitment to Project Management concept is vitalProject Manager must clear authority and responsibility over personnel -50% of the battle for project successLeadership is crucial-in all cases, these can only be one responsible project leader
33 KEY TO SUCCESSPeople processes of Teamwork and Leadership as well as Tools and TechniquesBlending of Hard & Soft Methods and Techniques are important in Project Management
34 Tools in Project Management Microsoft Project (MSP)Primavera Project Planner (P3)Primavera Professional Project Management (P6)
40 PROJECT CATEGORIES BY TIME SCALES Long Term (over 10 years)Electrification / Water pipes replacementDefence UpgradingMedium Term (3 to 10 years)Construction of a DamComputerisation of schoolsShort term (0.5 to 3 years)Organisation of conferences/ new consumer productsHotel constructionSpecial small scaleEmergency evacuationJE vaccination
41 (Multi Media Super Corridor) TYPES OF PROJECTSProject ResultsWell DefinedPoorly DefinedTYPE 1(KLIA)TYPE 3(Software)TYPE 2(A380 Airbus)TYPE 4(Multi Media Super Corridor)Project methods
42 DISCUSSIONSGive examples of project types in your organisation and reason out why you assign them into the above categoriesTYPE 1- …………………………….TYPE 2- …………………………….TYPE 3- …………………………….TYPE 4- …………………………….
44 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 difficulty10. 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
46 Project Scope Management Organisation scope – defining scopes amongst organisations involvedProject scope – defining scopes of the project itselfActivity scope – determining how detailed you want to cover the activity
47 Project Time Management Create project calendarDefine WBSDefine the activitiesDetermine sequence of activitiesEstimate activities durationEstimate activities resourcesDetermine constraints and limitationDevelop scheduleControl
48 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 projectA graphical display of the project that shows division of work in a multilevel systemThe concept of the WBS is simple: in order to manage a whole project, one must manage/control each of its partIt is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes
49 WORK BREAKDOWN STRUCTURE WBS defines:Work to be performedThe needed expertise,Selection of the project team,Base for project scheduling and controlThe development of WBS is a continuing process:Starts when the project is first assigned to the project managerContinues until all work packages have been defined
50 Figure 4-6a. Sample of Intranet WBS Organized by Product Copyright Course Technology 1999
52 Table 4-3. Intranet WBS in Tabular Form 1.0 Concept1.1 Evaluate current systems1.2 Define Requirements1.2.1 Define user requirements1.2.2 Define content requirements1.2.3 Define system requirements1.2.4 Define server owner requirements1.3 Define specific functionality1.4 Define risks and risk management approach1.5 Develop project plan1.6 Brief web development team2.0 Web Site Design3.0 Web Site Development4.0 Roll Out5.0 Support
53 Figure 4-7. Intranet WBS and Gantt Chart in Microsoft Project 98
54 APPROACHES TO DEVELOP WBS Using guidelines: Some organizations, like the DOD, provide guidelines for preparing WBSsThe analogy approach: It often helps to review WBSs of similar projectsThe top-down approach: Start with the largest items of the project and keep breaking them downThe bottoms-up approach: Start with the detailed tasks and roll them up
55 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
56 Sample of Activity Definition Form WBS:Date:Activity CodeActivity NameDurationPredecessorLagConstraint/ LimitationResourceCostProject Manager Signature:Supervisor Signature:Provider Signature:
59 CREATE A WBS FOR SATAY BARBEQUE AssumptionsVegetables are uncutNasi impit is uncutKuah is unheatedSatay is rawSatay Grill ready but no fireArang/coal readyFire lighter availableLighter availablePlates are availableActivity ends when satay is served asshown
60 WORK BREAKDOWN STRUCTURE Serve SatayVeggies & Nasi ImpitPrepare Satay GrillBarbeque & Serve1.1 Cut nasi impit1.2 Cut onions1.3 Cut cucumbers1.4 Warm up sauce2.1 Put charcoal in grill2.2 Light Fire2.3 Spread charcoal3.1 Put Satay on Grill3.2 Grill & Serve123
61 Heat up Kuah Cut Nasi Impit Cut Cucumber Cut Onions Light fire Spread coalsCook SatayServe Satay on plate
62 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
63 IT PROJECTS Half finish late and over budget Nearly a third are abandoned before completionThe Standish Group, in InfoworldGet & keep users involved & informedWatch for scope creep / feature creep
64 PROJECT SCHEDULING Establishing objectives Determining available resourcesSequencing activitiesIdentifying precedence relationshipsDetermining activity times & costsEstimating material & worker requirementsDetermining critical activities
65 WORK BREAKDOWN STRUCTURE Hierarchy of what needs to be done, in what orderFor me, the hardest partI’ve never done this before. How do I know what I’ll do when and how long it’ll take?I think in phasesThe farther ahead in time, the less detailedFigure out the tricky issues, the rest is detailsA lot will happen between now and thenIt works not badly with no deadline
66 MUDROOM REMODEL Big-picture sequence easy: Hard: can a sink fit? DemolitionFramingPlumbingElectricalDrywall, tape & textureSlate flooringCabinets, lights, paintHard: can a sink fit?WDW
69 PERT & CPM Network techniques/analysis system Consider precedence relationships & interdependenciesEach uses a different estimate of activity times
70 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.
71 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) Program Evaluation and Review Technique (PERT) -Similar methodDeveloped in 1957 – by the US Navy, with Booz, Allen & Hamilton Management Consultants, as a probabilistic approach to scheduling for Polaris missileCommonly used by the manufacturing industryBoth methods are often referred to as a network analysis system.
72 CRITICAL PATH METHOD (CPM) The purpose of CPM isPlan the workGuide the progress of a projectProvide a baseline for project control
77 TERMINOLOGY Activity Event A specific task or set of tasks Use resources and take time to completee.g. concretingEventThe result of completing one or more activitiesUse no resourcesChapter 8-9
78 TERMINOLOGY Network Combination of all activities and events Define the project and the activity precedence relationshipsChapter 8-9
79 TERMINOLOGY Path Critical Series of connected activities (or intermediate events) between any two events in a networkCriticalActivities, events, or paths which, if delayed, will delay the completion of the projectA sequence of critical activities that connect the project’s start event to its finish eventChapter 8-10
80 TERMINOLOGY An activity can be in any of these conditions: It may have a successor(s) but no predecessor(s) - starts a networkIt may have a predecessor(s) but no successor(s) - ends a networkIt may have both predecessor(s) and successor(s) - in the middle of a networkChapter 8-11
81 3 1 2 Activity on Node (AoN) Project: Obtain a Master’s Degree Attend class, study etc.Receive MasterEnroll3121 month2? Years1 day
82 Activity on Arrow (AoA) Project: Obtain a Master’s DegreeAttend class, study, etc.Receive MasterEnroll12341 month2 ? Years1 day
83 1 2 3 4 AoA Nodes Have Meaning Project: Obtain a Master’s Degree ApplicantStudentGraduatingAlumni
97 DUMMY An activity with zero duration Links together activities whose sequence would otherwise not be shownIndicated by a dashed arrowShow the sequence between activities e.g. activity A and D without the problem of linking Activity B with Activity CIs determined by looking at the activity list and find those activities that share some, but not the entire set of prior activities.
98 CRITICAL PATH ANALYSIS Provides activity informationEarliest (ES) & latest (LS) startEarliest (EF) & latest (LF) finishSlack (S): Allowable delayIdentifies critical pathLongest path in networkShortest time project can be completedAny delay on activities delays projectActivities 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.
101 SLACK/FLOATTotal 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 DURATIONTF = LF – EF = LS - ESFree 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 ACTIVITYFF = ES NEXT ACTIVITY – EF THAT ACTIVITY
108 EARLIEST START & FINISH STEPS Begin at starting event & work forwardES = 0 for starting activitiesES is earliest startEF = ES + Activity timeEF is earliest finishES = Maximum EF of all predecessors for non-starting activities
109 ACTIVITY A EARLIEST START SOLUTION DBCFG16234For starting activities, ES = 0.
111 LATEST START & FINISH STEPS Begin at ending event & work backwardLF = Maximum EF for ending activitiesLF is latest finish; EF is earliest finishLS = LF - Activity timeLS is latest startLF = Minimum LS of all successors for non-ending activities
115 SLACK/FLOATTotal 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 DURATIONFree 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
121 EXHIBIT 2.6, P.3521 2828 36C 7F 80 2136 38A 21G 228 3321 2626 28B 5D 2E 5F cannot start until C and D are done.G cannot start until both E and F are done.
122 EXHIBIT 2.6, P.3521 2828 36C 7F 821 2828 360 2136 38A 21G 20 2136 3828 3321 2626 28B 5D 2E 521 2626 2831 36E 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.
126 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.
128 PERT ACTIVITY TIMES 3 time estimates Follow beta distribution Optimistic times (a)Most-likely time (m)Pessimistic time (b)Follow beta distributionExpected time: t = (a + 4m + b)/6Variance of times: v = (b - a)2/36
129 PROJECT TIMES Expected project time (T) Project variance (V) Sum of critical path activity times, tProject variance (V)Sum of critical path activity variances, v
130 C B A EXAMPLE Activity a m b E[T] variance A 2 4 8 4.33 1 6.487.67Activity a m b E[T] varianceABCProject
131 BENEFITS OF PERT/CPM Useful at many stages of project management Mathematically simpleUse graphical displaysGive critical path & slack timeProvide project documentationUseful in monitoring costs
132 LIMITATIONS OF PERT/CPM Clearly defined, independent & stable activitiesSpecified precedence relationshipsActivity times (PERT) follow beta distributionSubjective time estimatesOver emphasis on critical path
134 WHAT IS RISK?A risk is a potential problem characterised by: (a) A likelihood of occurrence (b) A potential impact
135 SOURCES OF RISK 1. Use of new or untried technology 2. Inexperienced team3. Poor Project management structureLack of resource or resource conflicts5. Work takes longer than planned6. Deliveries from supplier late7. Insufficient production facilities8. Placing of subcontract and purchase orders10. Replace key, sick or holidaying personnel11. Weather may delay work12. Labour disputes may delay work13. Poor cost estimates14. Currency conversion rates may changesInterfaces with other people, departments and companies.Pressure from NGOs, Politicians, CrooksGlobal Weather ChangesNatural Disasters
138 FUNCTIONAL, PROJECT AND MATRIX ORGANIZATIONAL STRUCTURES
139 ORGANIZATION STRUCTURE INFLUENCES ON PROJECTS PMBOK Guide, 1996, p. 18The organizational structure influences the project manager’s authority, but remember to address the human resources, political, and symbolic frames, too.
140 DISTINCTIONS BETWEEN PROJECT AND FUNCTIONAL MANAGEMENT Job of functional managers go on foreverThey operate and optimise the use of resources of overall company basisJob of project managers is over once project is finishedThey optimise resources of a projectDifferent definitions of optimisation may lead to conflicts
141 ADVANTAGES OF PROJECT MANAGEMENT ORGANISATIONAL APPROACH Teamwork- better motivation & CommunicationSynergism- high performing teamCross-Border management- diff cultures, functions and boundariesForward Looking- what else needs doingClent Relations- one point of contactResults – more effective
143 EARNED VALUE MANAGEMENT SYSTEMS (EVMS) BASIC CONCEPTSPresented BySean Alexander(703) or (888)
144 EVMS OBJECTIVES Plan all work prior to beginning it Measure performance based on an objective set of technical criteriaAnalyze schedule status and projections using a time phased CPM networkAnalyze the expenditure of funds in light of the work accomplished (not work scheduled)
145 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.
146 BUDGET STRUCTURE Profit/Fee Negotiated Changes Written Change Authorization, Not NegotiatedContractAuthorized, Unpriced WorkContract CostManagement ReserveUndistributed BudgetContract Budget Base(CBB)Performance Measurement Baseline (PMB)Distributed Budget[S of all CAs]
147 EARNED VALUE TERMINOLOGY Data ElementTermAcronymScheduled WorkBudgeted Cost for Work ScheduledBCWSEarned ValueBudgeted Cost for Work PerformedBCWPActualsActual Cost of Work PerformedACWPAuthorized WorkBudget At CompletionBACForecasted CostEstimate At CompletionEACWork VarianceSchedule VarianceSVCost VarianceCVCompletion VarianceVariance At CompletionVAC
148 EARNED VALUE DATA ELEMENTS T/NEACETCVACCBBMRBAC (PMB)ProjectedProgramDelayBCWSACWPBCWPSchedule VarianceCost VarianceSchedule Slip
150 CONTROL ACCOUNT ELEMENTS Work PackagesDetailed, short-span tasks, or material items, required to accomplish the CA objectives, typically in the near termPlanning PackagesFuture work that has not been detail planned as work packages. They are always scheduled to occur in the future.Task 1Work PackagesTask 2Task 3Task 4Planning PackagesTask 5
151 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:0/100X/Y Percent25/7540/6050/50Milestone WeightsMilestone Weights with Percent Complete% CompleteSubjective EstimateObjective IndicatorsApportioned EffortLevel of Effort
153 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.
154 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/EACBCWSETC
155 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.
156 BUDGET VS FUNDS Budget Funds A number written on a piece of paper Cannot be spentBCWSBCWPBACActualsExpenditures & estimates of future spendingETCACWPEAC
157 DATA ANALYSIS RELATIONSHIPS TermSymbolFormulaChecklist ActionsPercent Complete% DoneBCWPRatio of work accomplished in terms of the total amount of work to do.BACCost Performance IndexCPI or PFBCWPRatio of work accomplished against money spent (an efficiency rating: Workor Performance FactorACWPDone for Resources Expended)To CompleteTCPI or VFBAC - BCWPRatio of work remaining against money remaining (Efficiency which must bePerformance IndexEAC - ACWPachieved to complete the remaining work with the expected remaining money)or Verification FactorSchedule Performance IndexSPIBCWPRatio of work accomplished against what should have been done (EfficiencyBCWSRating: Work done as compared to what should have been done)Ratio of Schedule Variance (SV) in terms of average amount of workSchedule CorrelationSC or S/CPCUMaccomplished (in weeks or months). It indicates a correlation to program trueSVschedule condition1)BACCalculation of a projected Estimate At Completion to compare with the CAM'sEstimate At Completion:Independent EstimateIEACPFAt Completion2)1) Ration of total work to be done against experienced cost efficiencyBAC - BCWP2) Sunk costs added to a ratio of remaining work against weighted cost andACWP +.8CPI + .2SPIschedule efficienciesBCWPcumAverage PerformancePDuration (wks or mos)Average rate at which work has been accomplished since work beganCUMSince ACWP BeganBCWPcumDuration (wks or mos)Average ExpectedPerformance To FinishPFrom Time Now toAverage rate at which work must be accomplished in the future to finish on theTO GOManager'sStateddate the CAM has forecasted for completion of the work.Completion Date
158 BENEFITS OF EVMS Clear definition of work prior to beginning that work Helps the line manager credibly request appropriate resourcesProvides the basis for a realistic plan against which to measure performance
159 BENEFITS OF EVMS Objective measurement of work accomplishment Helps the line manager develop plans that are rooted in realityIf the task can be done within scope, schedule, budget; confidence in a successful outcome is increasedIf 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 inexpensiveAssists the line manager to request needed helpAssists program and functional management to identify areas requiring additional management attention
160 BENEFITS OF EVMS Provides true cost condition Side-steps false cost variancesEncourages realistic projections of final costEnhances accuracy of funding forecasts
161 BENEFITS OF EVMSReduces propensity of customer/boss to add work without adding budgetTies budget directly to workRequires all work transfers to include associated budgetRequires all budget transfers to include associated workFosters management decisions within a framework of reality, rather than latent unease
162 EARNED VALUE DATA ELEMENTS Time NowEstimate at Completion(EAC)ETCVariance atCompletion(VAC)Project Budget BaseManagementReserveBudget at Completion (BAC)ProjectedProjectDelayBCWSACWPBCWPSchedule VarianceCost VarianceSchedule Slip
163 EARNED VALUE TERMINOLOGY Data ElementTermAcronymScheduled WorkBudgeted Cost for Work ScheduledBCWSEarned ValueBudgeted Cost for Work PerformedBCWPActualsActual Cost of Work PerformedACWPAuthorized WorkBudget At CompletionBACForecasted CostEstimate At CompletionEACWork VarianceSchedule VarianceSVCost VarianceCVCompletion VarianceVariance At CompletionVAC
164 EARNED VALUE EXERCISE – FENCE PROJECT Calculation of Earned Value
166 IMPORTANCE OF GOOD COMMUNICATIONS The greatest threat to many projects is a failure to communicateStrong verbal skills are a key factor in career advancement for Project Managers
167 PROJECT COMMUNICATIONS MANAGEMENT PROCESSES Communications planning: determining the information and communications needs of the stakeholdersInformation distribution: making needed information available in a timely mannerPerformance reporting: collecting and disseminating performance informationAdministrative closure: generating, gathering, and disseminating information to formalize phase or project completion
168 COMMUNICATIONS PLANNING Every project should include some type of communications management plan, a document that guides project communicationsCreating a stakeholder analysis for project communications also aids in communications planning
169 COMMUNICATIONS MANAGEMENT PLAN CONTENTS A description of a collection and filing structure for gathering and storing various types of informationA distribution structure describing what information goes to whom, when, and howA format for communicating key project informationA project schedule for producing the informationAccess methods for obtaining the informationA method for updating the communications management plans as the project progresses and developsA stakeholder communications analysis
170 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 placeImportant considerations includeusing technology to enhance information distributionformal and informal methods for distributing information
171 PERFORMANCE REPORTING Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectivesStatus reports describe where the project stands at a specific point in timeProgress reports describe what the project team has accomplished during a certain period of timeProject forecasting predicts future project status and progress based on past information and trendsStatus review meetings often include performance reporting
173 LYNAS CASE-STUDY – GROUP WORK Use the internet to get all the informationIdentify project stakeholdersWhat 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?
174 ADMINISTRATIVE CLOSURE A project or phase of a project requires closureAdministrative closure producesproject archivesformal acceptancelessons learned
175 SUGGESTIONS FOR IMPROVING PROJECT COMMUNICATIONS Resolve conflicts effectivelyDevelop better communication skillsRun effective meetingsUse templates for project communications
176 CONFLICT HANDLING MODES IN ORDER OF PREFERENCE Confrontation or problem-solving: directly face a conflictCompromise: use a give-and-take approachSmoothing: de-emphasize areas of differences and emphasize areas of agreementForcing: the win-lose approachWithdrawal: retreat or withdraw from an actual or potential disagreement
178 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 endClosing verifies that all of the deliverables have been completedA project audit is often done
179 TRANSITION PLANNINGIt is important to plan for and execute a smooth transition of the project into the normal operations of the companyMost projects produce results that are integrated into the existing organizational structureSome projects require the addition of new organizational structuresSome projects end by extinction or starvation
180 ADMINISTRATIVE CLOSURE Administrative closure involvesverifying and documenting project results to formalize acceptance of the products producedcollecting project recordsensuring products meet specificationsanalyzing whether the project was successful and effectivearchiving project information for future use
181 FINAL REPORT OUTLINE Cover page Table of contents and executive summary (for a long report)Need for the projectProject description and letter of agreementOverall outcome of the project and reasons for success or failureProject management tools and techniques used and assessment of themProject team recommendations and future considerationsFinal project Gantt chartAttachments with all deliverables
183 CURRENT & FUTURE OF PM (- Pinto and Kharbanda 1995) PM approach will replacefunctional line managementGlobalisation needs PM approachTrend towards flat, flexible organisationPM used as competitive weaponPM concept changes fromdecision maker, boss director toleader, coach & facilitator
185 PETRONAS TWIN TOWERSIdentify 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.
186 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.
187 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?