Presentation on theme: "Fundamentals of Project Management"— Presentation transcript:
1 Fundamentals of Project Management Dr. George F. JergeasProject Management SpecializationUniversity of Calgary
2 Schedule Day 1 Game Introduction PMI stuff Step 1 - Define phase Step 2 - Plan phaseSequence activitiesTime estimateDay 2Cost estimateStep 3 - Organize phaseSelect team and PMStep 4 - Control phaseStep 5 - Close out phase
3 5 Step Project Management PLANNING IMPLEMENTATION CONTROLDEFINEPLANORGANIZECLOSEIdentifyproject activitiesDeterminePersonnelNeedsDefineManagementStyleObtainClientAcceptanceInstallDeliverablesDocument theProjectIssue FinalReportConduct Post-ImplementationAuditState the ProblemIdentifyProjectGoalsEstimate time and costRecruitProject MangerEstablishControl ToolsSequence Project ActivitiesRecruitProject TeamPrepareStatus ReportsReviewProjectScheduleIssue ChangeOrdersList theObjectivesDeterminePreliminaryResourcesIdentify Critical ActivitiesOrganizeProject TeamIdentifyAssumptionsand RisksWrite Project ProposalAssign WorkPackagesProject overview WBS Recruit Criteria Variance Reports Final ReportProject network Define Work packages Status Reports Audit ReportsCritical Path Assign Work Packages Staff Allocation Reports
4 Step 2 – Plan the project: Basics of Cost Estimating
5 Agenda Introduction What is an estimate Estimating process What constitutes a good estimateBasic types of cost estimatesOrder of MagnitudesDefinitive Estimates
6 Introduction Cost estimates Key to successfully conceived, managed and completed projectsNot limited to constructionAn approximation procedureMistakes can be very costly!
7 What is a Cost Estimate? AACE Definition To the contractor “A compilation of all the costs of the elements of a project or effort included within an agreed upon scope”To the contractor“To forecast cost required to complete a project in accordance with the contract, plans and specifications”To the owner cost includes:Administering the contractContractor's charges, consultants and suppliers feesPrice of land, financing and operating costs
8 What Constitutes a Good Estimate? A clear, sound basisAn agreed upon realistic execution planA sound plan for estimating developmentGood estimating methods and data baseWell documented basis of estimateGood experienced estimator
9 Order - of - Magnitude Estimates A quick method of determining an approximate probable cost of a project due to the following specific situations:Time constraintsHigh cost of a detailed estimate
10 Order - of - Magnitude Estimates Prepared without detailed engineering dataSquare feet of floor areaCubic feet of volumePlant capacity for input and outputKm of road surface typeUse: In feasibility studies of a project and screening several types of alternatives or proposalsAccuracy: +/- 30%
11 Definitive Estimates Prepared from very defined engineering data Requires as a minimum:Plans and elevationsPiping and instrument diagramsSingle line electrical diagramsEquipment data sheets and quotationsArchitectural and structural detailsSoil data and sketches of major foundationsA complete set of specificationsAccuracy: +/- 5%
12 Components of a Cost Estimate Direct CostLabor: actual amount paid to field personnelMaterials: essential to constructing and operating a facility including equipment installed permanentlyEquipment: used to perform a contractSubcontracts
13 Components of a Cost Estimate Indirect CostsOverheadHome office overheadJob site overhead (general conditions)TaxesRisksContingencyProfitEscalation
14 Site Overhead (General Conditions) Cost of items that cannot be charged to a specific element of work:SupervisionTemporary facilitiesOffice trailersToiletsUtilitiesPermitsPhotographsClean-up
15 ProfitIs the amount of money included by the contractor in its price as compensation for risk, effort and endeavor in undertaking a project.It is the money left after a contractor has met all costs (both indirect and direct).Profit amount included is very subjective and depends on:Size of projectExtent of risk involvedNeed for workExtent of competition
16 ContingencyAn amount added to cover any additional costs that may occur during construction.To determine the amount of contingencies desirable, an estimator should rely on:Personal judgment, orThrough statistical analysis of past project costs
17 Estimated Conference Planning Budget $243,325Site$170,425Program$41,100Marketing$31,800Theme$600Materials$13,300Speakers$27,200Date$1,000Location$169,425Lists$2,000Brochure$29,800Registration3 conf calls with pgm commTravel/expenses for 16 $500 per speaker3 site $800/visit per person/day for 3 days for 1100 meeting $225/day/room for 3 days for 3 roomsDeposit25,000 $80/1000Obtain Speaker Materials $800Prepare Conference Notebook $12,500Design Brochure $12,800Mail Brochure $17,000Layout: 16 $50/pagePrinting: 30,000 $0.40/copy1100 $5/binder photocopy materials 350,000 $0.02/page25,000 $0.68/piece$50/speaker
19 Estimating Issues Underestimating Overestimating Don’t be overly optimistic about time and costsCause problems in the long run and produce unsatisfactory productOverestimatingDanger that project will not get approvalOver compensating for unexpected delays/problems
20 Estimating IssuesUse your WBS: Define the lowest level of activities to estimate the time and dollars requiredCheck activities costs on previous projectsTake into account circumstances during implementation, weather, transportation costs, availability of materials and labour etc.
21 Summary There are different types of estimates Each type used for specific purpose but no substitute of definitive estimatesAn estimate information data base is essentialGood estimates come from looking at the details
22 Important Points Order-of magnitude estimating important to owner: Owner examines the estimate before continuing with further development of project.Liability issue: based on the information contained in your estimate, major decisions are often made by the ownerThis places a responsibility and liability on you as an estimator
23 Important PointsAcquaint yourself with terminology, elements of cost which include labor, equipment and material costsDevelop habits of thoroughly reviewing contract documentsRemember to document and maintain the data base
24 Step 2 - Plan the Project: Writing a Project Proposal
25 Agenda Writing a proposal The purpose Format Executive summary BackgroundProject managerActivityScheduleBudget/project cost
27 Writing a Project Proposal Represents the transition from the planning (define, plan) to implementation (organising, control, close)Used as an information source to decide whether the project should proceed to the implementation phaseDifferent terminology usedDBM, Brief, Scope Definition Statement
28 Purpose The project proposal provides: A statement of the need, the approach being taken and the expected benefitsDescription of project activities, timelines and resources requiredDocumentation for project controlBriefing document for new team members and others in the organisation
29 PurposeTool for decision making, managing, controlling, training and reportingWritten for:Senior managementProject teamOther managers who are indirectly involvedConsultants
30 The remainder of this section should be reviewed by attendees. Please go to slide #43
31 Format Executive summary States the fundamental nature of proposal and benefits that are expectedShould deal with:Nature and approach to technical problemPlan for implementation of project if approvedPlan for logistic support and administrationDescription of team that will complete the work and their experiences on other projects
32 Technical Approach General description of the problem to be undertaken Organisational approachProvides sufficient detail for the reader to understand what is intendedMethod for resolving critical problems outlined
33 Technical Approach Proposal to meet clients requirements identified Procedures for testing and inspections to assure performance, quality, reliability and compliance
34 Implementation PlanContains estimate of time, cost and materials to be usedLists sub-systems of project in cost estimateEstimates of personnel, equipment and resources are provided by periodMajor milestones are indicated
35 Logistics PlanDescription of how skills, facilities, equipment will be suppliedAdministration strategyNature and timing of reportsbudget, progress, evaluations and auditsHandling and costing of change orders
36 Past Experiences How the proposed team has performed? Who the key personnel are and their qualifications?Keep in mind - the purpose of the proposal is to convince the funder that the project should be supported
37 Format: Example Proposal components Project name Project manager responsibleActivitiesScheduleBudget
38 Format Project Name Label to identify the project Should reflect uniqueness of the projectProject ManagerPerson responsible for projectMust be able to manage budgets, schedules, team and meet specifications
39 Format Activity Identified by number, description and name Method for team to refer to an activityShould be short, but reflect task to be undertakenDescription states in precise terms the work to be done
40 Format Schedule Based on the analysis of the network Provides anticipated start and finish dates.Dates may change
41 Format Budget Information provided at an aggregated level Details attached if requested by senior managementIncludes:Labour cost estimatesFinancing costsMaterials and equipment costs (See Figures )
47 Implementation Phase Start once the project has been approved Project team for the implementation is formed/procuredIn-house and externalProcurement proceduresWork package assignments can commenceDeliverables are agreed upon and clearly understoodControl systems are establishedTime, Quality, Cost, Safety ….
48 Organising the Project Team Projects are only as successful as the project manager and team who implements themBuilding an effective team takes a lot of workMust consider more than just a person’s technical skills
49 Organising the Project Team The selection of team members is based on skills, availability and personalityThere needs to be a commitment and chemistry among the team membersTeam building is not a perfect art, there is always the risk of conflict
50 Organising the Project Team Organized and located to facilitates open continuous communicationThis does not mean they have to be physically located togetherTeam members may be reallocated for the duration of the project or remain in their function areas
51 Organising the Project Team Large projectsDedicated core teamStructuredMore defined rolesNeed for open and continuous communication linesSelf contained
52 Organising the Project Team Small projectsPart-time commitment from team membersTeam members remain in their functional unitsConflicting priorities/demands existConflicts may arise from having more than one boss or more than one team involvement
53 Organising the Project Team Be sure all parties understand the need to:Build the team,What the priorities are within in the organisation andTheir assistance is appreciatedProject manager to ensure that the cross functional relationships are maintained and supported
54 Characteristics of an Effective Project Manager Understands purpose of the projectHas the necessary background and experienceEffective leader with proven managerial ability
55 Characteristics of an Effective Project Manager Has credibility with team and clientSensitive to project and corporate politicsExcellent communication skillsConsistent behaviourFacilitator rather than a dictator
56 Selection of Project Manager Key position on the projectSelection of appropriate individual is essential to success of the projectSelection criteria should be established based on the skills required to carry out project
57 Project Manager Selection Criteria 1. Background and ExperienceShould be consistent with the nature and needs of the projectEducation should be compatible with nature and expectations of the projectLook for a individual with a mix of conceptual, analytical, operational and practical experience
58 Project Manager Selection Criteria 2. LeadershipAbility to design, co-ordinate, control and implement project planStay the course until completionAbility to see the big picture and understand the details
59 Project Manager Selection Criteria 3. Technical expertiseAbility to direct, evaluate, and make decisions on technical alternativesDoes not and can’t be an expert in all areas of the projectShould have expertise in project management, team management and training
60 Project Manager Selection Criteria 4. Interpersonal skillsShould be able to:Motivate, inspire, and coachActively listen, give and receive feedbackEmpathise, relate feelings, needs and concerns in a positive mannerPrevent and resolve conflicts, negotiateKeep team, senior management and stakeholders informed through effective communication channels
61 Project Manager Selection Criteria 5. Proven Managerial AbilityGood track record, excellent indicator of the futureKnowledge of the organisation and its operationAbility to effectively interface with all levels of the organisationAbility to link project goals to corporate mission and goals
62 Selecting the TeamSelection of team members depends on a number of factors:Nature of the technical work to be doneLevel and type of expertise required at each phase of the projectAvailability of staff in the organisation and reporting relationships
63 Team Selection Criteria Similar to those of the project managerMore emphasis on the technical skillsInterpersonal skills essentialAbility to function as a team member with shared goals and objectives (us instead of me)
64 Effective Team Characteristics Commitment to the project goals and completionAbility to communicate, share responsibility and powerFlexible willing to change or try some new methodsTechnically competentWilling to:Admit mistakesAdmit not have all the answersAccept feedback
65 Effective Team Characteristics Politically astuteTeam playersCreative and open to suggestionsHigh self esteem, can do attitudeWilling to work for more than one boss, across formal structure and authority systemResults oriented
66 What Makes Teams Work Successful Projects: The team has fun Have the support of senior managementEveryone understands the reason for the projectConflicts are addressed and dealt withThe entire organisation is committed
67 What Makes Teams Work Successful projects: Team understands the organisation’s mission and how the project fits within that missionTeam understands what is to be achieved and when it is achievedTrust and communication
72 Incorporating Project Changes into the Schedule When a change is requested or needed, you should:Estimate the impact on the schedule by incorporating any additional tasks and revised duration estimatesAdd activities that were overlooked when the original plan was developedAdd new activities due to unanticipated eventsObtain client approval before proceedingA new baseline plan is established and used as the benchmark for comparison
73 Approaches to Schedule Control Schedule control involves four steps:Analyse the schedule to determine which areas may need corrective actionDecide what specific corrective actions should be takenRevisit the plan to incorporate the chosen corrective actionsRecalculate the schedule to evaluate the effects of the planned corrective actions
74 Approaches to Schedule Control If the planned corrective actions do not result in an acceptable schedule, repeat the previous steps
75 Approaches to Schedule Control Each time a schedule is recalculated:Identify the critical pathIdentify any activities that have a negative slackCompare paths where slippage have occurred (Slack got worse) with the previously calculated scheduleApply acceleration to the paths with negative slack:The most negative slack should be given top priorityFocus on activities that are in progress or to be started in the immediate futureFocus on activities that have long duration estimates
76 Acceleration To reduce schedule: Apply more resources to speed up an activityAdd more peopleIncrease hours per day or increase days per weekAssign person(s) with greater expertise or more experienceReduce the scope or eliminate the activity if possibleIncrease productivity through improved methods or technology
77 AccelerationTrade-off in the form of an increase in costs or a reduction in scopeThis could jeopardise elements of the overall project objective: scope, budget, schedule, and/or qualityThere may be a dispute over who should absorb any increased cost to accelerateBonus provision if project is completed earlyLiquidated damagesProject meetings are a good forum for addressing schedule control issues
78 Evaluation of Delays in the Work Questions to determine that a delay in the work is compensable:Was the cause of the delay beyond the contractor’s control?Did the contractor fail to take normal precautions?Was the contractor ready and able to work?
79 Evaluation of Delays in the Work Did the contractor submit a detailed schedule projecting project completion within the allotted time? Was the schedule updated regularly? Did the updated schedule justify time extension?Did this schedule contain a critical path analysis or equivalent?Has the contractor maintained sufficient forces in those operations along the critical path where needed to meet target dates?
80 Evaluation of Delays in the Work How have causes, other than normal weather, beyond the control and without the fault or negligence of the contractor affected target dates along the critical path?Has the contractor proven “unusually severe weather” with such information as climatological data, return probability of severe storms, or flood depth data?
81 Evaluation of Delays in the Work Did the weather phenomenon actually delay operations along the critical path or in secondary operations?Was the contractor shut down for other reasons?
83 Cost Control SystemAny cost control system should enable a project manager to observe current perfomance (productivity) levels, compare them with budget levels and institute corrective actions to keep productivity, and ultimately costs, within acceptable range
84 Elements of Effective Cost Control System ObservationComparison of observation with budgetCorrective action to take if necessaryCan also serve as:A basis for a productivity improvement programA measure of productivity loss caused by adverse factors and changed conditions such as winter work, acceleration, design changes, etc.
85 Cost Control System Compares actual man-hours expended to earned hours Actual work hours come from contractor’s daily time sheetsEarned hours are calculated by multiplying the completed quantities during a period by estimated man-hours per unit quantitySee figure following as an example
87 Cost overrun Budget Money Time Now Actual Expenditure Earned Value NOTES:_______________________________________________________________________________________________________________________Earned ValueTimeDelay
88 Money Budget Ahead of schedule Earned Value Making Money Actual Time NOTES:_______________________________________________________________________________________________________________________ActualTime
89 Fundamentals of Project Management Example: Activity Variance ReportFundamentals of Project ManagementTool Kit
90 ConclusionYou can draw immediate attention to significant deviations from what was plannedIndicate what corrective action is necessary and by whomDependent on accurate reporting and correct allocation of hours expended
92 Joint Evaluation Progress meeting Forum for identifying a problem Specific criteria to evaluate effectivenessTeamworkTimely problem resolutionPeriodic surveyComparisons of survey responses identify areas of improvement and potential problems
93 Measuring Success Met target price, quality and schedule Goals achievedBenchmarkingPositive client feedbackGreat safety recordDisputes resolved effectively
94 Joint Evaluation1. Communications between the owner/contractor personnel are…………2. Top management support ofpartnering process is………………………3. Problems, issues or concerns are……4. Cooperation between owner and contractor personnel is……………………5. Responses to problems, issues,or concerns frequently become…………Difficult, guardedEasy, open, up frontNot evidentInconsistentObvious, consistentAttacked promptlyIgnoredCool, removed, detached,Genuine, unreserved, completePersonal issuesTreated as project problems
96 This Session Definition Impact costs Basic principles in handling change ordersTypes of changesElements of a change orderRecommendations for good practiceNOTES:_______________________________________________________________________________________________________________________
97 Change OrderIs a written agreement to modify, add to, or otherwise alter the work from that set forth in the contract documents at the time of opening bids, provided that such alteration can be considered to be within the scope of the original project; otherwise, a contract modification may be requiredIt is the only legal means available to change the contract provisions after the award of contract
98 Change Order Could be addition to or deletion from the work Changes in the method of execution or manner of work performanceChange in owner-furnished materials or facilitiesChange in the contract time or order of the workCorrect errors in the plans or specificationsDirect results of contractor suggestions that are approved by the owner and its agents
99 Change Order Changes may involve Make sure payment covers A price change in the contractor’s favorCash credit to the ownerNo price change at allMake sure payment coversImpact costs & Loss of productivityTime extensions
100 Basic Principles in Handling Change Orders No work should be included beyond the scope of the base contractThe identity of the individuals authorized to request and approve change orders should be established earlyDuring the start up meeting the change order handling procedures must be established/discussed
101 Basic Principles in Handling Change Orders All changes in the work must be authorized in writing prior to the executionThe scope of a change order must be clearA request for a change proposal should contain enough information to enable the contractor to make a realistic estimate
102 Basic Principles in Handling Change Orders The contractor should submit its proposal to execute a change order as soon as possible after receiving the requestThe owner’s approval or rejection should follow as soon as possibleThe Change Order should be fair. It should recognize the contractor’s right to include:Overhead and profit percentagesCompensation for legitimate time-delay claimsCompensation for legitimate impact costs if any
103 Types of Changes Directed changes Owner directs the contractor to perform work that differs from that specified in the contractEasy to identify and mutually recognizedDisagreements tend to center on questions of financial compensation and the effect of change on the schedule
104 Types of Changes Constructive Changes Is an informal act authorizing or directing a modification to the contract caused by an act or failure to actDefective plans and specificationsEngineer’s interpretationHigher standard of performance than specifiedImproper inspection and rejectionChange in method of performanceOwner nondisclosureImpossibility/impracticability of performance
105 Types of Changes Constructive Changes Must be claimed in writing within time specified in the contractMajor source of disputes
106 Change Order Form Description of change Reason for change Change in contract priceChange to contract timeStatement that secondary impacts are includedApprovals by owner’s and contractors representatives
107 Sample of a Change Order PROJECT TITLEPROJECT NO. CONTRACT NO. CONTRACT DATECONTRACTORThe following changes are hereby made to the Contract Documents:Construction of access bridge abutment No. 1 drainage system; andReset two penstock bearing plates. All in accordance with revised DWG S-17209Revision 4, dated August 29, 2000JUSTIFICATION:Unforeseen soil conditionsCHANGE TO CONTRACT PRICEOriginal Contract Price: $Current contract price, as adjusted by previous change orders: $The Contract Price due to this Change Order will be (increased) (decreased) by: $The new Contract Price due to this Change Order will be: $CHANGE TO CONTRACT TIMEThe Contract Time will be (increased) (decreased)by calendar daysThe date for completion of all work under the contract will beRequested by datedRecommended by datedOrdered by datedAccepted by dated
108 Recommendation for Good Practice Percentages for overhead and profit to be appliedDetermination of the individual representative of the owner who is authorized to approve change ordersProcedures to be followed in the submittal of change order proposalsChange order forms to be used
109 Recommendation for Good Practice Time extensions required, if anyThe detail required of contractors when submitting change order proposals -Will a complete breakdown of all costs be required?Brief description - Descriptive drawingsOvertime necessary due to change orders - consideration of decreased productivityResponsibility for record drawings brought about due to the change orders
110 Dealing with Disputes: Keys to Project Control
111 AgendaCausesObstacles to resolutionSuccessful settlement
112 Causes of Disputes Design changes, errors/omissions and extras Late owner-supplied equipmentLack of co-ordinationChanged soil/site conditionsAccess to siteClaims may arise on projects for a number of reasons. Some well known ones included above.Research and practice agree that the main causes of contract claims are design changes and errors. 72% of all contract claims can be traced to design changes, extras and errors. This is an issue that Project Managers should pay a great attention to as you can see from the following slides.From your previous experiences, list the main reasons or factors that caused an increase in cost or time.
113 Causes of Disputes Delays and acceleration Insufficient bid preparation timeInadequate bid informationUnderestimation by contractorsInadequate managementClaims may arise on projects for a number of reasons. Some well known ones included above.Research and practice agree that the main causes of contract claims are design changes and errors. 72% of all contract claims can be traced to design changes, extras and errors. This is an issue that Project Managers should pay a great attention to as you can see from the following slides.From your previous experiences, list the main reasons or factors that caused an increase in cost or time.
114 Resolving Disputes Face to face by parties themselves By appointing a mutually acceptable third partyBy accepting the jurisdiction of the courts
115 Obstacle to Resolution Owner’s biasContractor’s biasTotal cost claims-Owner’s bias-loss is caused by contractor’s action or inaction-loss is caused by contractor’s mismanagement-loss is caused by contractor’s under estimation-loss is caused by contractor’s strikes, weather - nothing to do with the owner-Contractor’s bias-loss is caused by owner’s mismanagement or interference-loss is caused by owner’s design changes-contractor is not responsible and managed the job properly-contractor did not underestimate the job-Total cost claims-claims are prepared that request the entire difference between actual cost and estimated costs. This means that there is one side responsible for all the cost overrun. This is not true.The above approach is NOT fair and does not lead to a fair and successful resolution of disputes. How do you deal with claims, i.e., how do you prepare or evaluate claims?
116 Successful Settlement Get the factsKeep good recordsKnow your contractPreserve your rightsShow: Cause-Effect-Entitlement-QuantificationTo prepare a successful claim or to defend against a claim or evaluate a claim on behalf of an owner, you need to get the facts as discussed earlier and show in the claim report the cause-effect-entitlement-quantification relationship. This will enhance the claim report credibility and create an atmosphere for settlement based on facts not fiction with justification as to payment.
117 Settlement of Disputes The following options are available:NegotiationMediationDispute Resolution BoardMini-trialArbitrationLitigationThe best approach to settle disputes is to avoid them or prevent them from happening in the first place by properly managing your project as discussed in this course and other courses in this program.Next to best to avoidance of dispute is to resolve dispute through the face to face negotiation between the disputant without the involvement of a third party.The other alternatives are available to you as explained in the following slides.
118 Mediation Voluntary Non-binding Economical Assist negotiation Mediation involves hearing positions and helping the participants resolve the dispute themselves. The success of mediation is 85% in self motivated mediation (i.e. both sides wanted mediation, 60% for court-imposed mediation). This is very economical compared to other alternatives. The only drawback is that decision of a mediator is not binding on the parties.Ideally, disputes should be resolved by either negotiation or mediation, not litigation. Mediation is the most cost effective method of disposing of disputes after negotiation.
119 Arbitration Binding 1 or 3 arbitrators Selection of arbitrators Each party selects one arbitratorBoth select a chairpersonCould be expensiveArbitration was introduced to resolve dispute and reduce cost of litigation. Arbitration provides a binding solution to disputes. However, as the time and costs required to resolve arbitration disputes increases, the costs are beginning to approximate those of litigation.
120 Dispute Resolution Board DRB consists of three members and is established at the beginning of projectNon-bindingThis is another useful, economical option available to apply on projects.
121 Mini-trialPresentation of both sides’ arguments before an advisory panel and executives of both sides. May include a judgePredict the likely outcome and the strength and weakness of the caseVoluntary and non-binding
122 Litigation Adversarial Costly Voltaire: “I have only been ruined twice in my life. The first time was when I lost a lawsuit: the second, when I won one!”-Judgement is binding-Very expensive and adversarial-Contradict everything we say about Project Management kills the team, ruins relationships between the party and distract professionals from all sides away from the real goals and objectives.-Means we failed as Project Managers-Avoid it, all parties will be losers except litigation lawyers and claim consultants.
123 Problem Resolution Lowest level with time limit Escalated to the next level of managementNo action is not an option
128 Agenda Purpose Prerequisite activities Project termination process Final project reportRewarding successes and learning from failures
129 5 Phase Project Management PLANNING IMPLEMENTATION CONTROLDEFINEPLANORGANIZECLOSEIdentifyproject activitiesDeterminePersonnelNeedsDefineManagementStyleObtainClientAcceptanceInstallDeliverablesDocumentthe ProjectIssue FinalReportConduct Post-ImplementationAuditState the ProblemIdentifyProjectGoalsEstimate time and costRecruitProject MangerEstablishControl ToolsRecruitProject TeamPrepareStatus ReportsReviewProjectScheduleIssue ChangeOrdersList theObjectivesSequence Project ActivitiesDeterminePreliminaryResourcesIdentify Critical activitiesOrganiseProject TeamIdentifyAssumptionsand RisksWrite Project ProposalAssign WorkPackagesProject overview WEBS Recruit Criteria Variance Reports Final ReportProject network Define Work packages Status Reports Audit ReportsCritical Path Assign Work Packages Staff Allocation Reports
130 PurposeTo ensure all deliverables are installed or implemented according to time, budget and specification
131 PurposeTo ensure that the works have been completed as specified, and that all facilities work properlyTo provide a record of the actual execution, together with operating instructionsTo train staff in the use of the works
132 PurposeTo formally close out contractual relationshipsObtain sign off on final report to show contracted deliverables have been successfully implementedTo formally terminate project team assignmentsTo ensure adequate project documentation and baseline information for changes that may need to occur in the futureTo obtain client’s acceptance of project work and deliverables
133 Activities Test the engineering performance Search for non-operational defects, e. g. those that affect only the appearanceInspect the facilities thoroughly and have defects remediedPrepare as-built drawings and recordStart up, test and adjust all servicesPrepare operational instructions and maintenance manualsTrain staffMonitor performance of work against original requirements
134 Deficiency ListsThese are lists of required repairs or completion of deficient/incomplete items.Schedule for completion of deficiencies.Need a sign-off procedure.Need a handover process to turn project over to Owner in organized way.
135 RecordsDuring implementation, difficulties may arise which result in changes to the original design. Records of these changes will be kept during implementation, mainly for financial reasons. These must be brought together to make a complete record of the actual execution.
136 As-built Drawings Mandatory on some projects. Should be provided on all projects.Reflect what was actually built.Contract documents must set a date for completion of as-built drawings.Make sure they are worked on as the project is built do not wait for the end of the job.
137 Warranties, Spare Parts and Manuals Watch for differing warranty starts and durations.Recommended parts list.Operations and Maintenance Manuals.Service and warranty contacts and service agreements/expectations.
138 Termination Process Project termination can be complicated A systematic approach is required to successfully cover all bases in terminating contracts and relationships.Stay in close contact with the client and administration to ensure close down meets with the client’s satisfaction.
139 Termination Process Generally the termination phases include: 1. Prepare termination logistics2. Document project3. Conduct post implementation audit and prepare and submit final report4. Obtain client approval5. Close operation
140 Conduct Post- Implementation Audit: Prepare and Submit Final Report TerminationLogisticsPROJECT TERMINATIONPHASESCloseOperationDocumentThe ProjectProjectTerminationPhasesObtain ClientApprovalConduct Post- ImplementationAudit: Prepare and Submit Final Report
141 1. Prepare termination logistics Establish project termination designAssign a termination managerAssign a termination team to assist managerConduct a termination meeting to review processAssign close-out tasks
142 2. Document the Project Prepare personnel termination reports Close down project office and reporting systemTerminate all financial documentsComplete all payments and expensesCollect all debts prepare the financial project close out report
143 2. Document the ProjectTerminate all work orders, contracts, assignments and outstanding supplier and customer obligations.Document completion and compliance with all vendors and contractors.Close all project sites and return all project equipment.
144 3. Conduct Post -Implementation Audit Complete Final ReportSubmit report to clientEvaluation of project’s goals and activity achievement.Measured against the project plan, budget, time deadlines, quality of deliverables, specifications and client satisfaction.
145 Final Report Should answers the following questions: Was the project goal achieved?Was the project work done on time?Was it done within budget?Was it done by specifications?Was the client satisfied with the project results?Memory or history of the project.File others can refer to, study progress and impediments of the project.Can follow many formats.
146 Final Report Usually includes the following elements: Overall success and performance of the projectOrganisation and administration of the projectTechniques used to accomplish project resultsAssessment of project strengths and weaknessesRecommendation of project manager and team for continuation or extinction of project
147 4. Client Approval Obtain Client approval. 5. Close Operation Close all physical sites and terminate remaining project staff.
148 Rewarding Successes and Learning From Failures Closing a project is a celebration of effort.Brings resolution to the process.Project manager should bring the team together to review their journey.Way of closing formal and informal relationships.Way to re-enforce learning that occurred.Final get together brings project full circle.
149 Summary All projects must be closed off. Project should meet with client acceptance.Provide installed deliverables.Document the process and achievements.Provide closure for the team and client.
150 Critical Factors in Successful Project Implementation MissionSenior ManagementScheduleClient ConsultationPersonnelPinto, J. K. and D. P. Slevin (1987). IEEE Transactions on Engineering Management EM34(1):Technical TasksClient AcceptanceMonitoring & FeedbackCommunicationTroubleshooting
151 Project Management Education / Training Online resources (websites and list servers)Each other (sharing knowledge and experiences)Balance experience with educationProject Management Institute: PMBOK Guide,
152 Additional Online Resources in Project Management
153 Concluding Remarks Projects - an increasingly important way of working Project management is challenging, rewardingKeep it simple, use aspects of project management that make senseDon’t be an Accidental Project ManagerIts OK to make mistakes…learn from them to improve project management practices
154 That’s all and thank you Good luck in managing your projects
156 5-Step Project Management PLANNING IMPLEMENTATION CONTROLDEFINEPLANORGANIZECLOSEIdentifyproject activitiesDeterminePersonnelNeedsDefineManagementStyleObtainClientAcceptanceInstallDeliverablesDocumentthe ProjectIssue FinalReportConduct Post-ImplementationAuditState the ProblemIdentifyProjectGoalsEstimate time and costRecruitProject MangerEstablishControl ToolsSequence Project ActivitiesRecruitProject TeamPrepareStatus ReportsReviewProjectScheduleIssue ChangeOrdersList theObjectivesDeterminePreliminaryResourcesIdentify Critical activitiesOrganizeProject TeamIdentifyAssumptionsand RisksWrite Project ProposalAssign WorkPackagesProject overview WBS Recruit Criteria Variance Reports Final ReportProject network Define Work packages Status Reports Audit ReportsCritical Path Assign Work Packages Staff Allocation Reports
157 Sample Project Overview - Sample Objectives 1. Develop the Program Project Overview Project Name - PM Conference Project ManagerProblem/OpportunityMembership in PM Association has declined in the past four years and attendance at conferences has declined in past three years. The viability and financial stability of the organization depends on maintaining membership and successful annual conference.GoalReverse downward trend in membership and annual conference attendance.Objectives1. Develop the Program2. Set the Conference Site and Date3. Design and Implement the Marketing PlanSuccess Criteria1. At least 50 of previous years conferences attendees will attend2. At least 150 of 450 PMI Canada members will attend3. At least 1.5% of the non-members receiving conference brochure will attend4. At least 5% of the non-member attendees will join PM AssociationAssumptions and Risks1. Interest in PM can be renewed through the annual conference2. A quality professional program will attract members and non-members3. Key speaker(s) fail to show up or submit written paper.Prepared by Date Approved by DateSample
158 Fundamentals of Project Management Project OverviewProject Name Project ManagerProblem/OpportunityGoalObjectivesSuccess CriteriaStakeholdersRisks and AssumptionsPrepared by Date Approved by DateFundamentals of Project ManagementTool Kit
159 Fundamentals of Project Management Stakeholder and External Issues AnalysisSTAKEHOLDER and External IssuesTheir Objective/PurposeTheir StrategyTheir Potential Impact onthe projectHow They OperateWhere they gain SupportHow to Manage themand your plan formitigationFundamentals of Project ManagementTool Kit
163 Estimated Conference Planning Budget $243,325Site$170,425Program$41,100Marketing$31,800Theme$600Materials$13,300Speakers$27,200Date$1,000Location$169,425Lists$2,000Brochure$29,800Registration3 conf calls with pgm commTravel/expenses for 16 $500 per speaker3 site $800/visit per person/day for 3 days for 1100 meeting $225/day/room for 3 days for 3 roomsDeposit25,000 $80/1000Obtain Speaker Materials $800Prepare Conference Notebook $125,500Design Brochure $12,800Mail Brochure $17,000Layout: 16 $50/pagePrinting: 30,000 $0.40/copy1100 $5/binder photocopy materials 350,000 $0.02/page25,000 $0.68/piece$50/speaker
165 Fundamentals of Project Management Project ScheduleProject: ____________________Project Manager: ____________________Date: _____________Fundamentals of Project ManagementTool Kit
166 RACI Charts (F.T Hartman) 2.4.5 Major Element Amelia Drover Fred 2-5Deliverable:_____________________ Manager:___________________ Project:_________DATESA C G C F M J W BD M H F W L S W EACTIONBudget Actual Budget ActualW/Hrs. W/Hrs Cost CostActivityAnother activityBuild somethingR A A C I I I C- R C I A A I AR A C I I C ,500- R C I A A I AR A A C I I I C ,000R A C I I C ,700Another ItemYet anotherDesign a bitDesign moreSneezeGesundheit- A R I C C A I IR C A A I C I ,785- R I I CAnother thingWait for itemMore stuffFinishA C R C I C ,000- I C A A R I A IR A I C I A A AA I C I I A A A R
167 RACI ChartsDeliverable:_____________________ Manager:___________________ Project:_________ACTIONDATES------People involved Other Info. (e.g., Cost)NOTES________________________________________________________________________________________________________________________
168 RACI Chart 2 1 Inform Coordinate with Accountable to Responsible party Task
171 Sample of a Change Order PROJECT TITLEPROJECT NO. CONTRACT NO. CONTRACT DATECONTRACTORThe following changes are hereby made to the Contract Documents:Construction of access bridge abutment No. 1 drainage system; andReset two penstock bearing plates. All in accordance with revised DWG S-17209Revision 4, dated August 29, 2000.JUSTIFICATION:Unforeseen soil conditionsCHANGE TO CONTRACT PRICEOriginal Contract Price: $Current contract price, as adjusted by previous change orders: $The Contract Price due to this Change Order will be (increased) (decreased) by: $The new Contract Price due to this Change Order will be: $CHANGE TO CONTRACT TIMEThe Contract Time will be (increased) (decreased)by calendar days.The date for completion of all work under the contract will beRequested by datedRecommended by datedOrdered by datedAccepted by dated