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Principles of Project Management

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1 Principles of Project Management
How to help make your projects more successful Project Management - Project Bailout - Project Management

2 Why Project Management?
Learn from lessons, success, and mistakes of others Better understanding of financial, physical, and human resources Successful Project Management Contributes to Improved customer relations Shorter development times Lower costs Higher quality and increased reliability Improved productivity Project Management Generally Provides Better internal coordination Higher worker morale Project Management - Project Bailout -

3 Project Management - Project Bailout -
Why Projects Fail Communications Misunderstandings Not Talking, ing etc. Scope Creep Poor planning Weak business case Lack of management direction & involvement Lack of Resources Talking and Not Building Incomplete specifications Excessive Specifications Mismanagement of expectations $ Project Management - Project Bailout -

4 Project Management Benefits for the Individual
Develops leaders in organization with a detailed understanding of multiple areas of the organization Cross departmental communication and networking Benefits not limited to just the Project Manager, Team members get same exposure Attention from executive management team Reputation of being a team player, problem solver, and a get things done person Project Management - Project Bailout -

5 Project Management - Project Bailout -
Organization Lectures Presentations Book Chapters And Discussions! Sample Projects Plan, Schedule and Allocate Resources Review Practice Tests Joint Attempt At Questions Project Management - Project Bailout -

6 Project Management - Project Bailout -
Lectures 1 - Introduction to Project Management 2 - Project Management Context 2’- Project Management for Dummies - Summary 3 - Project Management Integration 4 - Project Scope Management 5 - Project Time Management 6 - Project Cost Management 7 - Project Quality Management 8 - Project Human Resource Management 9 - Project Communications Management 10 - Project Risk Management 11 - Project Procurement Management 12 - Project Management as a Profession Project Management - Project Bailout -

7 Project Management - Project Bailout -
Sources – Use the Web Project Management Institute: Project World: Software Program Managers Network: PM forum: ESI International: Project Bailout – “Project Management for Dummies” “Project Planning Scheduling & Control,” James P. Lewis A Hands-on Guide to Bringing Projects in on time and On Budget Project Management - Project Bailout -

8 Project Management - Project Bailout -
Why are you here? Who are you What is your background? Why What do you want to learn? How much effort? Me Jim Bullough-Latsch, 20 years managing projects, All material will be provided on a CD! Sign In, Addresses etc. Exchange Business Cards Project Management - Project Bailout -

9 Mapping Lectures and Lewis Book
Introduction to Project Management Chapter 1 – Introduction to PM Project Management Context Chapter 5 – Headless Chicken Project Management Integration Chapter 6 – Project Strategy Chapter 7 – Implementation Plan Project Scope Management Chapter 9 – Scheduling Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Chapter 8 Project Procurement Management Project Management as a Profession Chapter 3 Project Management - Project Bailout -

10 Introduction to Project Management
CHAPTER 1 Introduction to Project Management Project Management - Project Bailout -

11 PM is used in all industries, at all levels
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12 Why Project Management?
Better control of financial, physical, and human resources Accountability Learn from mistakes of others! Improved customer relations More Managed Outcomes Lower costs Higher quality and increased reliability Higher profit margins Improved productivity Better internal coordination Higher worker morale Project Management - Project Bailout -

13 Project Management - Project Bailout -
Why Projects Fail Poor communications Scope Creep Poor planning Weak business case Lack of management direction & involvement Incomplete specifications Mismanagement of expectations Project Management - Project Bailout -

14 Project versus Program
What is a project? Temporary and unique Definite beginning and end Unique purpose Require resources, often from various areas involve uncertainty Note: temporary does not mean short in duration What is a program? A group of projects managed in a coordinated way to obtain benefits not available to managing them individually Long Term for: a collection of projects Same Techniques Work for Projects, Products, & Programs! Use them where they work! Project Management - Project Bailout -

15 Triple Constraints Theory
Every project is constrained in different ways by its Scope goals: What is the project trying to accomplish? Time goals: How long should it take to complete? Cost goals: What should it cost? It is the project manager’s duty to balance these three often competing goals Project Management - Project Bailout -

16 Project Management Framework
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17 Project Management - Project Bailout -
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 and vendors opponents to the project Project Management - Project Bailout -

18 Project Management - Project Bailout -
PM Knowledge Areas Knowledge areas describe the key competencies that project managers must develop core knowledge areas lead to specific project objectives (scope, time, cost, and quality) facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management knowledge area (project integration management) affects and is affected by all of the other knowledge areas Project Management - Project Bailout -

19 Relationship to other disciplines
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20 Project Management - Project Bailout -
PM Tools & Techniques Project management tools and techniques assist project managers and their teams in various aspects of project management #1 communicating with people!! Some specific ones include Project Charter and Work Breakdown Structure (WBS) (scope) Gantt charts, network diagrams, critical path analysis, critical chain scheduling (time) Cost estimates and earned value management (cost) Project Management - Project Bailout -

21 Project Management - Project Bailout -
Sample GANTT Chart Project Management - Project Bailout -

22 Sample Network Diagram
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23 Sample Earned Value Chart
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24 Points From Lewis Chapter 1
A project is a one-time job, as opposed to a repetitive activity Disagree, can make repetitive into a series of projects Project management is facilitation of the planning, scheduling, and controlling of all activities that must be done to meet project objectives. ??????????? Principle: Can assign values to only three of the PCTS constraints Performance, Cost, Time, Scope Disagree - There are relationship, but it is not magic Principle: To reduce both cost and time in a project, must change the process by which you do work. Maybe “Understand” and control is better than change Project Management - Project Bailout -

25 Lewis Principles Chapter 1
Principle: Improving quality reduces costs. Partially Agree Controlling quality contributes to controlling cost Bugs / Errors Cost Money Formal QA Organizations can be negative Good Project Management includes tools, people, and systems Tools are not very important! The people who must do the work should develop the plan Disagree – The people who do the work should contribute to the plan, but some project management is needed to focus the effort. The Thought process can be applied to any project regardless o type or size Agree Project Management - Project Bailout -

26 “Lewis Method” Five Phases
Definition Planning Strategy Implementation Planning Execution and Control Lessons Learned I have only worked at one company that practiced this, TRW called it a debriefing or post mortem Usually everyone is gone prior to the completion! Project Management - Project Bailout -

27 Project Management - Project Bailout -
Projects for Homework Sample Project Plan, Schedule, and Presentation Develop a brief project plan and top-level schedule (MS Project is preferred). Effort at Each Session Discuss Concepts Assign Teams, Choose Subject, Divide work You can do home work to make it better Plan and Document Schedule Coordinate Keep it simple Present for Review Criticize Others Update Project Can Be Anything Suggested Projects - Defaults Project Management - Project Bailout -

28 Project Management Context
CHAPTER 2 Project Management Context Project Management - Project Bailout -

29 Projects are not Isolated
Projects must operate in a broad organizational environment Project managers need to take a holistic or systems view of a project and understand how it is situated within the larger organization Systems View to Project Management Systems philosophy: View things as systems, interacting components working within an environment to fulfill some purpose Systems analysis: problem-solving approach Systems management: Address business, technological, and organizational issues before making changes to systems Project Management - Project Bailout -

30 Project Management - Project Bailout -
Project Phases Projects are divided up into phases, collectively project phases are known as the project lifecycle The Phases often overlap!!! Project phases are marked by completion of one or more deliverables Deliverable is a tangible, verifiable work product Questions at the end of each phase (known as phase exits, kill points, or stage gates) Determine if the project should continue Detect and correct errors cost effectively Deliverables from the preceding phase are usually approved before work exceeds 20% of the next phase’s budget IE Overlapping work is done at cost risk to meet schedule FAST TRACKING: projects that have overlapping phases Project Management - Project Bailout -

31 Project Management - Project Bailout -
Project Lifecycle Most project lifecycles have common characteristics Phases: Concept, Development, Implementation, Support Cost and staffing levels are low to start and higher toward the end and drop rapidly as the project draws to conclusion Stakeholders have more influence in the early phases of the project Cost of changes and error correction often increases as the project continues Some changes can be deferred until after delivery Project Management - Project Bailout -

32 Phases of the Project Life Cycle
Deliverables Concept Development Implementation Close-Out Planning Management Plan Project Plan Work Package Completed Work Financial Preliminary Cost Estimate Budgetary Cost Estimate Costs and Over Runs Lessons Learned Reporting / Decomposition 3-level WBS 6+ level WBS Performance Reports Customer Acceptance Project Management - Project Bailout -

33 Project Management - Project Bailout -
Project Life Cycle Determination of Mission Need—ends with Concept Studies Approval Concept Exploration and Definition—ends with Concept Demonstration Approval Demonstration and Validation –ends with Development Approval Engineering and Manufacturing –ends with Production Approval Production and Deployment –overlaps with Operations and Support Project Management - Project Bailout -

34 Systems Development Life Cycles
Waterfall model: has well-defined, linear stages of systems development and support Spiral model: shows that software is developed using an iterative or spiral approach rather than a linear approach Incremental release model: provides for progressive development of operational software RAD model: used to produce systems quickly without sacrificing quality Prototyping model: used for developing prototypes to clarify user requirements Project Management - Project Bailout -

35 The Waterfall Model of the Software Life Cycle
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36 Project Management - Project Bailout -
Spiral Project Management - Project Bailout -

37 Fast Tracking / Overlap of Processes
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38 Extreme Programming - Focuses on customer driven changes
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39 Organizational Structures
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40 Critical Success Factors
Critical Success Factors According to the Standish Group’s report CHAOS 2001: A Recipe for Success, the following items help IT projects succeed, in order of importance: Executive support User involvement Experience project manager Clear business objectives Minimized scope Standard software infrastructure Firm basic requirements Formal methodology Reliable estimates Project Management - Project Bailout -

41 Headless Chicken (Lewis)
Software Projects – 1990s 17% Succeeded 33% Failed 50% Revised Headless Chick is about a bird dying Body keeps moving after head is cut off! Project Management - Project Bailout -

42 More on The Lewis Method
Projects often fail at the beginning, not at the end. Agree The false consensus effect is a failure to manage disagreement, because no knows it exists. Not that important …. I think this is also the blind leading the blind Process will always affect task performance. Project Management - Project Bailout -

43 Project Management - Project Bailout -
Lewis … Write the Mission Statement Write something would be better The first objective for a project manager is to achieve a shared understanding of the team’s mission. Disagree, it is important, but $ and convincing yourself are more important The way a problem is defined determines how we attempt to solve it. ??? Project Management - Project Bailout -

44 Project Management - Project Bailout -
Lewis and Strategy Strategy is an overall approach to a project. Game plan It is best not to employ cutting-edge technology in a project that has very tight deadline. It is usually best to use proven technology. (period!) It is best to separate discovery from development. Agree Project Management - Project Bailout -

45 Project Management For Dummies – Chapter 2’
Project Management For Dummies By Stanley E. Portny ISBN: X Format: Paper Pages: 384 Pages Pub. Date: October 2000 Project Management - Project Bailout -

46 PART I: Defining Your Project and Developing Your Game Plan.
Chapter 1: What Is Project Management? (And Do I Get Paid Extra to Do It?). Chapter 2: Defining What You're Trying to Accomplish — and Why. Chapter 3: Getting from Here to There. Chapter 4: You Want This Done When? Chapter 5: Estimating Resource Requirements. Project Management - Project Bailout -

47 PART II: Organizing the Troops.
Chapter 6: The Who and the How of Project Management. Chapter 7: Involving the Right People in Your Project. Chapter 8: Defining Team Members' Roles and Responsibilities. Project Management - Project Bailout -

48 PART III: Steering the Ship.
Chapter 9: Starting Off on the Right Foot. Chapter 10: Tracking Progress and Maintaining Control. Chapter 11: Keeping Everyone Informed. Chapter 12: Encouraging Peak Performance. Chapter 13: Bringing Your Project to a Close. Project Management - Project Bailout -

49 PART IV: Getting Better and Better.
Chapter 14: Dealing with Risk and Uncertainty. Chapter 15: Using the Experience You've Gained. Chapter 16: With All the Great New Technology, What's Left for You to Do? Project Management - Project Bailout -

50 Project Management - Project Bailout -
PART V: The Part of Tens. Chapter 17: Ten Questions to Help You Plan Your Project. Chapter 18: Ten Ways to Hold People Accountable. Chapter 19: Ten Steps to Getting Your Project Back on Track. Chapter 20: Ten Tips for Being a Better Project Manager. Project Management - Project Bailout -

51 Chapter 17: Ten Questions to Help You Plan Your Project.
Why is your project being Done? Who will you need to Involve? What results will you Produce What Constraints Must you Satisfy? What assumptions are you Making What work must be done? When will you start and end each activity? Who’ll perform the project Work? What other Resources will you need? What could go wrong? Project Management - Project Bailout -

52 Chapter 18: Ten Ways to Hold People Accountable.
Involve People who really have authority Be Specific Get a Commitment Put it in writing. Emphasize the Urgency and Importance of the assignment Tell others about the person’s commitment Agree on a plan for monitoring the person’s work. Monitor the persons work. Always Acknowledge Good Performance Act as if you have the authority Project Management - Project Bailout -

53 Chapter 19: Ten Steps to Getting Your Project Back on Track.
Determine why project got off track Reaffirm key drivers Reaffirm Project Objectives Reaffirm activities remaining to be done. Reaffirm Roles and Responsibilities Develop a viable schedule Reaffirm Personnel assignments Develop a Risk-Management Plan Hold a midcourse Kick-off Session Closely Monitor Performance Project Management - Project Bailout -

54 Chapter 20: Ten Tips for Being a Better Project Manager
Be a “why” person Be a “Can Do” person Don’t Assume Say what you mean; Mean what you say View people as allies, not adversaries Respect other people Think “big Picture” Think Detail Acknowledge good performance Be both a manager and a leader Project Management - Project Bailout -

55 Project Management - Project Bailout -
Rest Appendix A: Glossary Appendix B: Earned Value Analysis. Index. Project Management - Project Bailout -

56 Project Management Integration
CHAPTER 3 Project Management Integration Project Management - Project Bailout -

57 Project Integration Management
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58 Project Management - Project Bailout -
Planning and Control Project Plan Development: taking the results of other planning processes and putting them into a consistent, coherent document—the project plan Project Plan Execution: carrying out the project plan Integrated Change Control: coordinating changes across the entire project Influence the factors that create changes to ensure they are beneficial Determine that a change has occurred Manage actual changes when and as they occur Project Management - Project Bailout -

59 Project Plan Development
A project plan is a document used to coordinate all project planning documents Its main purpose is to guide project execution Also helps the Project Management to Express their vision Project plans assist the project manager in leading the project team and assessing project status Project performance should be measured against a baseline project plan Project Management - Project Bailout -

60 Project Management - Project Bailout -
What is a Project Plan? Common misunderstanding: Project Schedule Introduction or overview of the project Description of how the project is organized Management and technical processes used on the project Work to be done, schedule, and budget information Project Management - Project Bailout -

61 Chapter 17: Ten Questions to Help You Plan Your Project.
Why is your project being Done? Who will you need to Involve? What results will you Produce What Constraints Must you Satisfy? What assumptions are you Making What work must be done? When will you start and end each activity? Who’ll perform the project Work? What other Resources will you need? What could go wrong? (Project Management for Dummies) Project Management - Project Bailout -

62 Sample Project Plan – Security Audits
1. Information Security - Introduction Why an Information Security Audit? Referenced Documents and Web Sites Customer Support to Audit Audit Results 2. Tasks and Sub Tasks Preparation Technical Review End User Sample Discussion with Responsible Management Final report (Hardcopy, Executive Briefing, 2 CDs, Destroy Working Notes) 3. Project Controls Confidentiality Need-to-know Certification Secure Storage of Results Progress reporting Security Quality Assurance Project Management - Project Bailout -

63 Project Management - Project Bailout -
More on Project Plan First Page needs to Sell the Project! Plan addresses what, how, which organizations, order of magnitude; but generally does not whom, when, and exact $ Project Management - Project Bailout -

64 Project Management - Project Bailout -
Stakeholder Analysis A stakeholder analysis documents important (often sensitive) information about stakeholders such as stakeholders’ names and organizations roles on the project unique facts about stakeholders level of influence and interest in the project suggestions for managing relationships Budget and Other Money! Project Management - Project Bailout -

65 Project Plan Execution
Project plan execution involves managing performing the work described in the project plan Work Authorization System: a method ensuring that qualified people do work at right time and in the proper sequence Common in Aerospace Status Review Meetings: regularly scheduled meetings used to exchange project information Project Management Software: special software to assist in managing projects Project Management - Project Bailout -

66 Integrated Change Control
involves identifying, evaluating, and managing changes throughout the project life cycle Three main objectives of change control: – Influence the factors that create changes to ensure they are beneficial – Determine that a change has occurred – Manage actual changes when and as they occur Project Management - Project Bailout -

67 Establish Change Control System
A formal, documented process that describes when and how official project documents and work may be changed Describes who is authorized to make changes and how to make them Often includes a change control board (CCB), configuration management, and a process for communicating changes A formal group of people responsible for approving or rejecting changes on a project Provides guidelines for preparing change requests, evaluates them, and manages the implementation of approved changes Includes stakeholders from the entire organization Project Management - Project Bailout -

68 Lewis – Developing an Implementation Plan
The more important a project deadline, the more important the plan becomes. “Planning” versus Plan versus Work Never plan in more detail than control. Agree To ignore probable risk is not a “can-do” attitude but a fool hardy approach to project management. Yes/No – Need to present positive face to extent feasible Project Management - Project Bailout -

69 More Lewis Points Chapter 7
You don’t worry about the sequence of tasks while constructing the WBS. Agree A work breakdown structure does not show the sequence in which work is performed! A WBS is a list activities. Parkinson’s Law: Work will expand to take the time allowed Project Management - Project Bailout -

70 Project Scope Management
CHAPTER 4 Project Scope Management Project Management - Project Bailout -

71 What is Scope Management?
Scope refers to all the work involved in creating the products of the project and processes used to create them Project scope management includes the processes involved in defining and controlling what is or is not included in the project The project team and stakeholders must have the same understanding of what products be produces as a result of a project and what processes will be used in producing them Project Management - Project Bailout -

72 Defining Scope – The Process
Initiation: beginning a project or continuing to the next phase Scope planning: developing documents to provide the basis for future project decisions Scope definition: subdividing the major project deliverables into smaller, more manageable components Scope verification: formalizing acceptance of the project scope Scope change control: controlling changes to project scope Project Management - Project Bailout -

73 Project & Organization Alignment
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74 Project & Organization Alignment - 2
Stages / Results Ties technology strategy to mission and vision Key Business Processes Scope, Benefits, constraints Allocates People and $ Project Management - Project Bailout -

75 Project Financial Analysis
Financial considerations are often an important consideration in selecting projects Three primary methods for determining the projected financial value of projects: Net present value (NPV) analysis Return on investment (ROI) Payback analysis Project Management - Project Bailout -

76 Net Present Value (NPV)
Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time Projects with a positive NPV should be considered if financial value is a key criterion The higher the NPV, the better Project Management - Project Bailout -

77 Project Management - Project Bailout -
NPV Sample Project Management - Project Bailout -

78 Project Management - Project Bailout -
Return on Investment Return on investment (ROI) is income divided by investment ROI = (total discounted benefits - total discounted costs) / discounted costs The higher the realized ROI, the better Too Often, it is hyped Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects Project Management - Project Bailout -

79 Sample: NPV, ROI, & Payback
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80 Project Management - Project Bailout -
Payback Analysis The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project Payback occurs when the cumulative discounted benefits and costs are greater than zero Many organizations want projects to have a fairly short payback period Project Management - Project Bailout -

81 Project Selection Tool: Weighted Scoring
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82 Project Management - Project Bailout -
Project Charter After deciding what project to work on, it is important to formalize projects A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project Defines project’s purpose, products, scope, objectives, constraints, assumptions, risks, organization, reporting structure, priority and completion criteria Project Management - Project Bailout -

83 Sample Project Charter
Project Title: Information Technology (IT) Upgrade Project Project Start Date: March 4, 200 Projected Finish Date: December 4, 2002 Project Manager: Kim Nguyen, , Project Objectives: Upgrade hardware and software for all employees (approximately 2,000) within 9 months based on new corporate standards. See attached sheet describing the new standards. Upgrades may affect servers and midrange computers as well as network hardware and software. Budgeted $1,000,000 for hardware and software costs and $500,000 for labor costs. Approach: • Update the IT inventory database to determine upgrade needs • Develop detailed cost estimate for project and report to CIO • Issue a request for quotes to obtain hardware and software • Use internal staff as much as possible to do the planning, analysis, and installation Project Management - Project Bailout -

84 Project Management - Project Bailout -
More Name Role Responsibility Walter Schmidt, CEO Project Sponsor Monitor project Mike Zwack CIO Monitor project, provide staff Kim Nguyen Project Manager Plan and execute project Jeff Johnson Director of IT Operations Mentor Nancy Reynolds VP, Human Resources Provide staff, issue memo to all employees about project Steve McCann Director of Purchasing Assist in purchasing hardware and software Sign-off: (Signatures of all above stakeholders) Comments: (Handwritten comments from above stakeholders, if applicable) This project must be done within ten months at the absolute latest. Mike Zwack, CIO We are assuming that adequate staff will be available and committed to supporting this project. Some work must be done after hours to avoid work disruptions, and overtime will be provided. Jeff Johnson and Kim Nguyen, Information Technology Department Project Management - Project Bailout -

85 Scope Statement & Planning
A scope statement is a document used to develop and confirm a common understanding of the project. a project justification a brief description of the project’s products a summary of all project deliverables a statement of what determines project success helps improve the accuracy of time, cost, and resource estimates defines a baseline for performance measurement and project control aids in communicating clear work responsibilities Project Management - Project Bailout -

86 Work Breakdown Structure (WBS)
After completing scope planning, the next step is to further define the work by breaking it into manageable pieces 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 It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes Project Management - Project Bailout -

87 Approaches to developing 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 Project Management - Project Bailout -

88 Project Management - Project Bailout -
Sample WBS: by product Project Management - Project Bailout -

89 Project Management - Project Bailout -
Sample WBS: by phase Project Management - Project Bailout -

90 Sample WBS: 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 Project Management - Project Bailout -

91 WBS and GANTT in Project 2000
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92 Project Time Management
CHAPTER 5 Project Time Management Project Management - Project Bailout -

93 Developing a project schedule
Project schedules grow out of the WBS Activity definition developing a more detailed WBS to complete all the work to be done Activity sequencing Involves reviewing activities and determining dependencies Mandatory dependencies: inherent in the nature of the work; hard logic Discretionary dependencies: defined by the project team; soft logic External dependencies: involve relationships between project and non-project activities You must determine dependencies in order to use critical path analysis Project Management - Project Bailout -

94 Project Network Diagrams
Project network diagram is one technique to show activity sequencing, relationships among activities, including dependencies. Sample Activity-on-Arrow (AOA) Network Diagram Also called activity-on-arrow Project Management - Project Bailout -

95 Project Network Diagram
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96 Precedence Diagramming Method (PDM)
Activities are represented by boxes Arrows show relationships between activities Used by most PM software Project Management - Project Bailout -

97 Project Management - Project Bailout -
Sample PDM Project Management - Project Bailout -

98 Activity Duration Estimating
After defining activities and determining their sequence, the next step in time management is duration estimating Duration includes the actual amount of time worked on an activity plus elapsed time People doing the work should help create estimates, and an expert should review them Estimates should be— Based on a set of assumptions and collected data Based on the current approved scope and project specifications Changed when the scope of the project changes significantly Changed when there are authorized changes in resources, materials, services, and so forth Budgets are only estimates Project Management - Project Bailout -

99 Project Management - Project Bailout -
Schedule Development Schedule development uses results of the other time management processes to determine the start and end date of the project and its activities Ultimate goal is to create a realistic project schedule that provides a basis for monitoring project progress for the time dimension of the project Project Management - Project Bailout -

100 Project Management - Project Bailout -
GANTT Charts Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format Symbols include: A black diamond: milestones or significant events on a project with zero duration Thick black bars: summary tasks Lighter horizontal bars: tasks Arrows: dependencies between tasks Project Management - Project Bailout -

101 Tracking using GANTT charts
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102 Tracking versus Planning
Real world is never the same as the clean paper Too detailed and miss the bigger picture Too high level and are late to respond to problems People do not always tell the truth! Project Management - Project Bailout -

103 Project Management - Project Bailout -
Critical Path Method CPM is a project network analysis technique used to predict total project duration A critical path for a project is the series of activities that determines the earliest time by which the project can be completed The critical path is the longest path through the network diagram and has the least amount of slack or float Finding the Critical Path First develop a good project network diagram Add the durations for all activities on each path through the project network diagram The longest path is the critical path Project Management - Project Bailout -

104 Program Evaluation and Review Technique PERT
PERT is a network analysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity duration estimates PERT uses probabilistic time estimates based on using optimistic, most likely, and pessimistic estimates of activity durations PERT weighted average formula: (optimistic time + 4X most likely time + pessimistic time)/W (8 workdays + 4 X 10 workdays + 24 workdays)/6 = 12 days Project Management - Project Bailout -

105 Project Cost Management
CHAPTER 6 Project Cost Management Project Management - Project Bailout -

106 Project Cost Management
Costs are usually measured in monetary units like dollars Project cost management includes the processes required to ensure that the project is completed within an approved budget Resource planning: determining what resources and quantities of them should be used Cost estimating: developing an estimate of the costs and resources needed to complete a project Cost budgeting: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance Cost control: controlling changes to the project budget Project Management - Project Bailout -

107 Basic Principles of Cost Management
Profits are revenues minus expenses Life cycle costing is estimating the cost of a project over its entire life Cash flow analysis is determining the estimated annual costs and benefits for a project Benefits and costs can be tangible or intangible, direct or indirect Sunk cost should not be a criteria in project selection Project Management - Project Bailout -

108 Project Management - Project Bailout -
Resource Planning The nature of the project and the organization will affect resource planning. Some questions to consider: How difficult will it be to do specific tasks on the project? Is there anything unique in this project’s scope statement that will affect resources? What is the organization’s history in doing similar tasks? Does the organization have or can they acquire the people, equipment, and materials that are capable and available for performing the work? Project Management - Project Bailout -

109 Project Management - Project Bailout -
Cost Estimating An important output of project cost management is a cost estimate It is also important to develop a cost management plan that describes how cost variances will be managed on the project 3 basic tools and techniques for cost estimates: analogous or top-down: use the actual cost of a previous, similar project as the basis the new estimate bottom-up: estimate individual work items and sum them to get a total estimate parametric: use project characteristics in a mathematical model to estimate costs Project Management - Project Bailout -

110 Project Management - Project Bailout -
Type of Estimate WAG (Wild Ass Guess) Rough Order of Magnitude (ROM) Budgetary Definitive Project Management - Project Bailout -

111 Earned Value Management Terms
The planned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approved total cost estimate planned to be spent on an activity during a given period Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period The earned value (EV), formerly called the budgeted cost of work performed (BCWP), is the percentage of work actually completed multiplied by the planned value Project Management - Project Bailout -

112 Earned Value Calculations 1 wk
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113 Project Management - Project Bailout -
Formulas Project Management - Project Bailout -

114 Project Management - Project Bailout -
Earned Value Formulas To estimate what it will cost to complete a project or how long it will take based on performance to date, divide the budgeted cost or time by the appropriate index. Project Management - Project Bailout -

115 Project Quality Management
CHAPTER 7 Project Quality Management Project Management - Project Bailout -

116 What is quality management?
The International Organization for Standardization (ISO) defines quality as the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs Other experts define quality based on conformance to requirements: meeting written specifications Has the problem that specifications are not 100% complete or correct fitness for use: ensuring a product can be used as it was intended Project Management - Project Bailout -

117 Quality Management Processes
Quality planning: identifying which quality standards are relevant to the project and how to satisfy them Quality assurance: evaluating overall project performance to ensure the project will satisfy the relevant quality standards Quality control: monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality Modern quality management SIX SIGMA requires customer satisfaction prefers prevention to inspection recognizes management responsibility for quality Noteworthy quality experts include Deming, Juran, Crosby, Ishikawa, Taguchi, and Feigenbaum Project Management - Project Bailout -

118 Sample Fishbone or Ishikawa Diagram
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Pareto Analysis Pareto analysis involves identifying the vital few contributors that account for the most quality problems in a system Also called the rule, meaning that 80% of problems are often due to 20% of the causes Pareto diagrams are histograms that help identify and prioritize problem areas Project Management - Project Bailout -

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Standard Deviation Standard deviation measures how much variation exists in a distribution of data A small standard deviation means that data cluster closely around the middle of a distribution and there is little variability among the data A normal distribution is a bell-shaped curve that is symmetrical about the mean or average value of a population Project Management - Project Bailout -

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QCC, Six Sigma, Rule of 7 A control chart is a graphic display of data that illustrates the results of a process over time. It helps prevent defects and allows you to determine whether a process is in control or out of control Operating at a higher sigma value, like 6 sigma, means the product tolerance or control limits have less variability The seven run rule states that if seven data points in a row are all below the mean, above, the mean, or increasing or decreasing, then the process needs to be examined for non-random problems Project Management - Project Bailout -

122 Sample Quality Control Chart
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123 Reducing Defects with Six Sigma
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124 Project Management - Project Bailout -
Cost of Quality The cost of quality is the cost of conformance or delivering products requirements and fitness for use the cost of nonconformance or taking responsibility failures or not meeting quality expectations Business Cost per Hour Downtime Automated teller machines (medium-sized bank) Package shipping service Telephone ticket sales Catalog sales center Airline reservation center (small airline) Project Management - Project Bailout -

125 Five Cost Categories Related to Quality
Prevention cost: the cost of planning and executing a project so it is error-free or within an acceptable error range Appraisal cost: the cost of evaluating processes and outputs to ensure quality Internal failure cost: cost incurred to correct an identified defect before the customer receives the product External failure cost: cost that relates to all errors not detected and corrected before delivery to the customer Measurement and test equipment costs: capital cost equipment used to perform prevention and appraisal activities Project Management - Project Bailout -

126 Project Management - Project Bailout -
Quality, Security, etc Quality Assurance can often be another tool for uncovering cost, schedule, and other project problems. When QA says they can not evaluate because there is not enough detail, it is a red flag! Project Management - Project Bailout -

127 Project Human Resource Management
CHAPTER 8 Project Human Resource Management Project Management - Project Bailout -

128 Project Management - Project Bailout -
Start With Good People #1 Get Good People Assigned to your project Know who the good people are! #2 You usually get less than your pay for. Cheap people may cost a lot! Expensive consultants usually do not build things Project Management - Project Bailout -

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Projects and HR? Project human resource management includes the processes required to make the most effective use of the people involved with a project. Processes include Organizational planning Staff acquisition Team development Keys to managing people Psychologists and management theorists have devoted much research and thought to the field of managing people at work Important areas related to project management include motivation influence and power effectiveness Project Management - Project Bailout -

130 Maslow’s Hierarchy of Needs
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131 McGregor’s Theory X and Y
Douglas McGregor popularized the human relations approach to management in the 1960s Theory X: assumes workers dislike and avoid work, so managers must use coercion, threats and various control schemes to get workers to meet objectives Theory Y: assumes individuals consider work as natural as play or rest and enjoy the satisfaction of esteem and self-actualization needs Theory Z: introduced in 1981 by William Ouchi and is based on the Japanese approach to motivating workers, emphasizing trust, quality, collective decision making, and cultural values Project Management - Project Bailout -

132 Thamhain and Wilemon’s Influence on Projects
Authority: the legitimate hierarchical right to issue orders Assignment: the project manager's perceived ability to influence a worker's later work assignments Budget: the project manager's perceived ability to authorize others' use of discretionary funds Promotion: the ability to improve a worker's position Money: the ability to increase a worker's pay and benefits Penalty: the project manager's ability to cause punishment Work challenge: the ability to assign work that capitalizes on a worker's enjoyment of doing a particular task Expertise: the project manager's perceived special knowledge that others deem important Friendship: the ability to establish friendly personal relationships between the project manager and others Project Management - Project Bailout -

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Power Power is the potential ability to influence behavior to get people to do things they would not otherwise do Types of power include Coercive Legitimate Expert Reward Referent Project Management - Project Bailout -

134 Improving Effectiveness - Covey’s 7 Habits
Project managers can apply Covey’s 7 habits to improve effectiveness on projects Be proactive Begin with the end in mind Put first things first Think win/win Seek first to understand, then to be understood Synergies Sharpen the saw Project Management - Project Bailout -

135 Empathic Listening and Rapport
Good project managers are empathic listeners; they listen with the intent to understand Before you can communicate with others, you have to have rapport Mirroring is a technique to help establish rapport IT professionals often need to develop empathic listening and other people skills to improve relationships with users and other stakeholders Project Management - Project Bailout -

136 Organizational Planning
Organizational planning involves identifying, documenting, and assigning project roles, responsibilities, and reporting relationships Outputs and processes include project organizational charts work definition and assignment process responsibility assignment matrixes resource histograms Project Management - Project Bailout -

137 Sample Responsibility Assignment Matrix (RAM)
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Staff Acquisition Staffing plans and good hiring procedures are important in staff acquisition, as are incentives for recruiting and retention Some companies give their employees one dollar for every hour a new person they helped hire works Some organizations allow people to work from home as an incentive Research shows that people leave their jobs because they don’t make a difference, don’t get proper recognition, aren’t learning anything new, don’t like their coworkers, and want to earn more money Project Management - Project Bailout -

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Resource Loading Resource loading refers to the amount of individual resources an existing project schedule requires during specific time periods Resource histograms show resource loading Over-allocation means more resources than are available are assigned to perform work at a given time Project Management - Project Bailout -

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Resource Leveling Resource leveling is a technique for resolving resource conflicts by delaying tasks The main purpose of resource leveling is to create a smoother distribution of resource usage and reduce over allocation Project Management - Project Bailout -

141 Team Development: MBTI
Meyers-Briggs Type Indicator (MBTI) is a popular tool for determining personality preferences and helping teammates understand each other Four dimensions include: Extrovert/Introvert (E/I) Sensation/Intuition (S/N) Thinking/Feeling (T/F) Judgment/Perception (J/P) Project Management - Project Bailout -

142 Social Styles Profiles
People are perceived as behaving primarily in one of four zones, based on their assertiveness and responsiveness: Drive Expressive Analytical Amiable People on opposite corners (drive and amiable, analytical and expressive) may have difficulties getting along Project Management - Project Bailout -

143 Reward and Recognition Systems
Team-based reward and recognition systems can promote teamwork Focus on rewarding teams for achieving specific goals Allow time for team members to mentor and help each other to meet project goals and develop human resources Project Management - Project Bailout -

144 Organizational Systems
Project based: Operations consist primarily of projects. Two categories: Organizations that derive their revenue primarily from performing projects for others (architectural firms, engineering firms, consultants, construction contractors, government contractors, etc.) Organizations that have adopted management by projects Have management systems such as accounting, financial, reporting and tracking in place to facilitate project management Non-project based: Absence of project-oriented systems generally makes project management more difficult. Examples include: manufacturing companies, financial service firms, etc. Project Management - Project Bailout -

145 Organizational Cultures and Style
Culture is reflected in shared values, beliefs, norms, expectations, policies, procedures, view of authority relationships, etc. Organizational cultures often have a direct influence on the project. A team proposing an unusual or high-risk approach is more likely to secure approval in an aggressive or entrepreneurial organization. A project manager with a highly participative style may encounter problems in a rigidly hierarchical organization while a project manager with an authoritarian style may be equally challenged in a participative organization. Project managers need to be aware of the organization's cultures and style. Project Management - Project Bailout -

146 Organizational Structure types:
Functional: A hierarchy where each employee has one clear superior. Staff are grouped by specialty, such as production, marketing, engineering, and accounting. Project work is done independently within each department. Project Expeditor (PE): The project expeditor acts as a staff assistant to the executive who has ultimate responsibility for the project. The workers remain in their functional organizations and provide assistance as needed. The PE has little formal authority. The PE's primary responsibility is to communicate information between the executive and the workers. Most useful in the traditional functional organization where the project's worth and costs are relatively low. Project Coordinator (PC): Project expeditor is moved out of facilitator position into a staff position reporting to a much higher level in the hierarchy. The project coordinator has more authority and responsibility than a PE. The PC has the authority to assign work to individuals within the functional organization. The functional manager is forced to share resources and authority with the PC. The size of projects in terms of dollars is relatively small compared to the rest of the organization. Project Management - Project Bailout -

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Matrix: Maintains the functional (vertical) lines of authority while establishing a relatively permanent horizontal structure to interact with all functional units supporting the projects. One result of the matrix is that workers frequently find themselves caught between the project manager and their functional manager. Advantages: Improved PM control over resources, rapid response to contingencies, improved coordination effort across functional lines, people have a "home" after the project is over, etc. (See Principles of PM, pg. 18) Disadvantages: Not cost effective due to excess administrative personnel, workers report to multiple bosses, more complex structure to monitor and control, higher potential for conflicts due to differing priorities, power struggles, and competition for resources, etc. (See Principles of PM, pg. 19) Project Management - Project Bailout -

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Matrix Staffing! Functions Project A Project B Project C Project K Project Z QA 2 5 1 1/2 Software 3 5 ½ 1 ½ 2 1/2 4 6 Project Management - Project Bailout -

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Matrix Types Weak matrix: Maintains many of the characteristics of a functional organization. The project manager's role is more like that of a project coordinator or project expeditor. Balanced matrix: In-between weak and strong. The project manager has more authority than in a weak matrix. The PM is more likely to be full-time than part-time as in a weak matrix. Strong matrix: Similar in characteristics to a projectized organization. There is likely to be a department of project managers which are full-time. Project Management - Project Bailout -

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Projectized: Team members are often collocated. Most of the organization's resources are involved in project work. Project managers have a great deal of independence and authority. Departments either report directly to the project manager or provide services to the various projects. Project Management - Project Bailout -

151 Project Manager Roles and Responsibilities
Integrator PM is the most likely person who can view both the project and the way it fits into the overall plan for the organization. Must coordinate the efforts of all the units of the project team. Communicator Communicates to upper management, the project team, and other stakeholders. The PM who fails to decipher and pass on appropriate information to the appropriate people can become a bottleneck in the project. The PM has the responsibility of knowing what kind of messages to send, who to send them to, and translating the messages into a language understood by all recipients. Team Leader Must be able to solve problems Guide people from different functional areas Coordinate the project to show leadership capabilities Decision Maker Makes key decisions such as allocation of resources, costs of performance and schedule tradeoffs, changing the scope, direction or characteristics of the project. This is an important role with significant consequences for the project as a whole. Climate Creator or Builder The PM should attempt to build a supportive atmosphere so that project team members work together and not against one another. Seek to avoid unrest and negative forms of conflict by building supportive atmosphere early. Project Management - Project Bailout -

152 General Advice on Teams
Focus on meeting project objectives and producing positive results Make sure everyone understands the goals Fix the problem instead of blaming people Establish regular, effective meetings Use PM tools and reports to help focus Remember the product is important, not the paper Nurture team members and encourage them to help each other Acknowledge individual and group accomplishments Free Lunch etc. Establish accountability Project Management - Project Bailout -

153 Project Management - Project Bailout -
Project Meals Can be very effective method for team building Lunches where management pays Friday at 4:00 for Beer and Pizza Bagels with Lox’s Can be a hassle and negative Christmas Dinners Upper Management plus/minus Tailored to Team / Location Pot Luck , Hotdogs/Sandwiches at the Park, Expensive Lunch Project Management - Project Bailout -

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More Advice Project managers should Treat people with consideration and respect Understand what motivates them Communicate carefully with them Never confuse people Goal is to enable project team members to deliver their best work Motivation and morale helps meet schedules Use Accountability to your benefit SOMETIMES FIRING A TURKEY HELPS Project Management - Project Bailout -

155 Project Communications Management
CHAPTER 9 Project Communications Management Project Management - Project Bailout -

156 Communications Planning
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 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 Project Management - Project Bailout -

157 Communications Management Concept
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 Project Management - Project Bailout -

158 Communication Interception
Lack of Clear Communications Channels Physical or temporal (time) distance between the communicator and receiver Difficulties with Technical Language Distracting Environmental Factors (noise) Detrimental Attitudes (hostility, disbelief) Project Management - Project Bailout -

159 Conflict Handling Modes
Withdrawal - retreat or withdraw from an actual or potential disagreement Forcing - the win-lose approach Smoothing - de-emphasize areas of differences and emphasize areas of agreement Compromise- use a give-and-take approach Confrontation problem-solving - directly face a conflict Conflict often produces important results, such as new ideas, better alternatives, and motivation to work harder and more collaboratively Groupthink can develop if there are no conflicting viewpoints Project Management - Project Bailout -

160 Running Effective Meetings
Determine if a meeting can be avoided Define the purpose and intended outcome of the meeting Determine who should attend the meeting Allow who should, but will not! Provide an agenda to participants before the meeting Prepare handouts, visual aids, and make logistical arrangements ahead of time Run the meeting professionally Use the Agenda to keep it focused Build relationships Follow UP!!!!!!!!!!!!!!!!!! Project Management - Project Bailout -

161 Project Management - Project Bailout -
Follow Up To A Meeting Minutes Agreements! Action Items Attendees Contact Information I prefer minutes within 24 hours and to Status the Action Items within 7 days Project Management - Project Bailout -

162 Sample Stakeholder Analysis for Project Communications
Stakeholders Customer Management Customer Business Staff Customer Technical Staff Internal Management Internal Business and Technical Staff Training Subcontractor Software Subcontractor Project Management - Project Bailout -

163 Number of Communication Channels = n(n-1)/2
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164 Communication Methods
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165 Communications Channels
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166 Communication Role of the PM
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167 Interpersonal Communication
To ensure messages are received and understood, two-way communication is necessary. Interpersonal communication is the process of sharing information with others. Three basic elements of interpersonal communication: The sender (or encoder) of the message. The signal or the message. The receiver (or decoder) of the message. Process of interpersonal communication: Sender determines what information to share and with whom and encodes the message. Sender transmits the message as a signal to the receiver. The receiver receives the message. The receiver decodes the message to determine its meaning and then responds accordingly. Communication is successful if the decoded message is the same as the sender intended. Project Management - Project Bailout -

168 Methods of Communication
Verbal: Advantages: Timely exchange of information Rapid feedback Immediate synthesis of message Timely closure Disadvantages: technical jargon especially in complex projects may make verbal communication difficult for non-technical people and other stakeholders. Three stages of effective verbal communication and presentation: The introduction: Tell them what you're going to tell them. The explanation: Tell them. The summary: Tell them what you just told them. Non-verbal: Encoding a message without using words. Usually done through body language. Total Message Impact = Words (7%) + Vocal tones (38%) + Facial expressions (55%) PM's may combine vocal and nonverbal factors but must be careful that the two do not present contradictory messages. Written communication: The main aim of business writing is that it should be understood clearly when read quickly. The message should be well planned, simple, clear, and direct. Major steps to writing: Establish the basic purpose of the message. Collect and organize material. Prepare draft. Check the overall structure. Send the message. Project Management - Project Bailout -

169 Macro-Barriers to Successful Communication
Information overload: Keep messages simple and direct. Provide sufficient information but not too much. Lack of subject knowledge: Must have sufficient knowledge to send message. Must know level of understanding of receiver. Cultural differences: Meanings and interpretations may vary among different cultures. Encourage team members to learn each other's cultures. Organizational climate: Minimize the differences associated with status and ego within the organization. Encourage open and trusting atmosphere. Number of links: Reduce the number of transmission links. The more links, the more opportunity for distortion. Be aware of entropy % of message is lost in upward communication. Project Management - Project Bailout -

170 Micro-Barriers to Successful Communication
Perceptions: Sender's view of the receiver: how sender perceives the receiver's level of knowledge and ability to understand the message. Receiver's view of the sender: How the receiver personally feels about the sender may influence how carefully the receiver listens. Message competition: Communicate only when you have the total attention of the recipient. Try to minimize noise or other factors contributing to message interference. Project jargon and terminology: Define project terminology used in messages. Be aware of the use of project terminology and the intended audience. Project Management - Project Bailout -

171 Types of Project Communications
Interpersonal communication. Communication with public and community. Formal communication. Informal communication. Project Management - Project Bailout -

172 Communication Channels and Links
The PM must recognize and understand the project's formal communication channels. Three basic channels of communication: Upward communication (vertically or diagonally) Downward communication (vertically or diagonally) Lateral communication (horizontally) Project Management - Project Bailout -

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Effective Listening Effective listening is one of the most important skills for a PM to acquire and practice. It helps develop mutual respect, rapport, and trust among project participants. Verbal listening behaviors: Asking questions to clarify and gather more information. Paraphrasing what the speaker has said. Summarizing at intervals what the speaker has said to confirm what you have understood. Asking the speaker for examples. Ascertaining the speaker's feelings and acknowledging them. ("You seem angry.") Directing the speaker to the most appropriate listener. ("George can best help you with that.") Non-verbal listening behaviors: Making eye contact. Being expressive and alert. Moving closer to the speaker. Listening for the intention behind the speaker's communication. Facial expressions, touching, use of space, use of time. Project Management - Project Bailout -

174 Barriers to Effective Listening
The mismatch between our speed of talking ( words per minute) and our speed of thinking (approx. 600 words per minute) makes effective listening tough. Some of the personal and environmental barriers that influence the overall effectiveness of communication include: Poor listeners: People do not talk freely when they know the audience isn't listening. Resistance to the message: People don't like to listen to something that is contrary to their preconceived ideas. Physical distractions: telephone calls, people coming in and out of office / meetings, etc. Project Management - Project Bailout -

175 Guidelines for Active Listening
Stop talking! Show the speaker you are ready to listen: Silence: signals you are ready to listen. Few distractions: shut the door, put the phone on hold, etc. A receptive attitude: empathize with the speaker's point of view. Project Management - Project Bailout -

176 Performance / Status Reports
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 Project Management - Project Bailout -

177 Developing a Communications Infrastructure
A communications infrastructure is a set of tools, techniques, and principles that provide a foundation for the effective transfer of information Tools include , project management software, groupware, fax machines, telephones, teleconferencing systems, document management systems, and word processors Techniques include reporting guidelines and templates, meeting ground rules and procedures, decision-making processes, problem-solving approaches, and conflict resolution and negotiation techniques Principles include using open dialog and an agreed upon work ethic Project Management - Project Bailout -

178 Project Portal / Website
What Useful Documents Contact Information Propaganda Test Versions Why Not Maintenance Cost! Project Management - Project Bailout -

179 Project Management - Project Bailout -
Final Project Report A project or phase of a project requires closure Administrative closure produces – project archives – formal acceptance – lessons learned Final Free Lunch! Project Management - Project Bailout -

180 Project Risk Management
CHAPTER 10 Project Risk Management Project Management - Project Bailout -

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What is Risk? A dictionary definition of risk is “the possibility of loss or injury” Project risk involves understanding potential problems that might occur on the project and how they might impede project success Risk management is like a form of insurance it is an investment Project Management - Project Bailout -

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Risk Utility Risk utility or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff Utility rises at a decreasing rate for a person who is risk-averse Those who are risk-seeking have a higher tolerance for risk and their satisfaction increases when more payoff is at stake The risk neutral approach achieves a balance between risk and payoff Project Management - Project Bailout -

183 Project Risk Management
The goal of project risk management is to minimize potential risks while maximizing potential opportunities. Major processes include Risk management planning: deciding how to approach and plan the risk management activities for the project Risk identification: determining which risks are likely to affect a project and documenting their characteristics Qualitative risk analysis: characterizing and analyzing risks and prioritizing their effects on project objectives Quantitative risk analysis: measuring the probability and consequences of risks Risk response planning: taking steps to enhance opportunities and reduce threats to meeting project objectives Risk monitoring and control: monitoring known risks, identifying new risks, reducing risks, and evaluating the effectiveness of risk reduction Project Management - Project Bailout -

184 Questions in a Risk Management Plan
The risk questions: Why? What? How? When? How Much? Project Management - Project Bailout -

185 Project Management - Project Bailout -
Other Types of Risk Market Risk: Will the new product be useful to the organization or marketable to others? Will users accept and use the product or service? Financial Risk: Can the organization afford to undertake the project? Is this project the best way to use the company’s financial resources? Technology Risk: Is the project technically feasible? Could the technology be obsolete before a useful product can be produced? Project Management - Project Bailout -

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Risk Identification Risk identification is the process of understanding what potential unsatisfactory outcomes are associated with a particular project Several risk identification tools and techniques include Brainstorming The Delphi technique Interviewing SWOT analysis Project Management - Project Bailout -

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Knowledge Area Integration Scope Time Cost Quality Human Resources Communications Risk Procurement Project Management - Project Bailout -

188 Quantitative Risk Management
Assess the likelihood and impact of identified risks to determine their magnitude and priority Common in Hardware System Risk quantification tools and techniques include Probability/Impact matrixes The Top 10 Risk Item Tracking Expert judgment Project Management - Project Bailout -

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Graphical View of Risk Project Management - Project Bailout -

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Decision Tree and EMV A decision tree is a diagramming method used to help you select the best course of action in situations in which future outcomes are uncertain EMV is a type of decision tree where you calculate the expected monetary value of a decision based on its risk event probability and monetary value Project Management - Project Bailout -

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Simulation Simulation uses a representation or model of a system to analyze the expected behavior or performance of the system Monte Carlo analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results To use a Monte Carlo simulation, you must have three estimates (most likely, pessimistic, and optimistic) plus an estimate of the likelihood of the estimate between the optimistic and most likely values Project Management - Project Bailout -

192 Project Management - Project Bailout -
Results Project Management - Project Bailout -

193 Risk Response Planning
After identifying and quantifying risk, you must decide how to respond to them Four main strategies: Risk avoidance: eliminating a specific threat or risk, usually by eliminating its causes Risk acceptance: accepting the consequences should a risk occur Risk transference: shifting the consequence of a risk and responsibility for its management to a third party Risk mitigation: reducing the impact of a risk event by reducing the probability of its occurrence Project Management - Project Bailout -

194 Risk Monitoring & Control
Monitoring risks involves knowing their status Controlling risks involves carrying out the risk management plans as risks occur Workarounds are unplanned responses to risk events that must be done when there are no contingency plans The main outputs of risk monitoring and control are corrective action, project change requests, and updates to other plans Risk response control involves executing the risk management processes and the risk management plan to respond to risk events Risks must be monitored based on defined milestones and decisions made regarding risks and mitigation strategies Sometimes workarounds or unplanned responses to risk events are needed when there are no contingency plans Project Management - Project Bailout -

195 Project Procurement Management
CHAPTER 11 Project Procurement Management Project Management - Project Bailout -

196 Project Procurement Management
Procurement planning: determining what, when, and how much to procure Solicitation planning: documenting product requirements and identifying potential sources Solicitation: obtaining quotations, bids, offers, or proposals as appropriate Source selection: choosing from among potential vendors Contract administration: managing the relationship with the vendor Contract close-out: completion and settlement of the contract Make-or-buy analysis: determining whether a particular product or service should be made or performed inside the organization or purchased from someone else. Often involves financial analysis Project Management - Project Bailout -

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Types of Contracts Unit price contracts Time and material contracts Cost reimbursable Fixed price or lump sum Project Management - Project Bailout -

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Statement of Work SOW A statement of work is a description of the work required for the procurement Many contracts, mutually binding agreements, include SOWs A good SOW gives bidders a better understanding of the buyer’s desires Project Management - Project Bailout -

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SOW Scope of Work: Describe the work to be done to detail. Specify the hardware and software involved and the exact nature of the work. Location of Work: Describe where the work must be performed. Specify the location of hardware and software and where the people must perform the work Period of Performance: Specify when the work is expected to start and end, working hours, number of hours that can be billed per week, where the work must be performed, and related schedule information. Deliverables Schedule: List specific deliverables, describe them in detail, and specify when they are due. Applicable Standards: Specify any company or industry-specific standards that are relevant to performing the work. Acceptance Criteria: Describe how the buyer organization will determine if the work is acceptable. Special Requirements: Specify any special requirements such as hardware or software certifications, minimum degree or experience level of personnel, travel requirements, and so on. Project Management - Project Bailout -

200 Solicitation Planning
Solicitation planning involves preparing several documents: Request for Proposals: used to solicit proposals from prospective sellers where there are several ways to meet the sellers’ needs Requests for Quotes: used to solicit quotes for well-defined procurements Invitations for bid or negotiation and initial contractor responses are also part of solicitation planning Request For Qualification: used to get a set of interested vendors Solicitation involves obtaining proposals or bids from prospective sellers Organizations can advertise to procure goods and services in several ways approaching the preferred vendor approaching several potential vendors advertising to anyone interested A bidders’ conference can help clarify the buyer’s expectations Project Management - Project Bailout -

201 Project Management - Project Bailout -
Source Selection Source selection involves evaluating bidders’ proposals choosing the best one negotiating the contract awarding the contract It is helpful to prepare formal evaluation procedures for selecting vendors Buyers often create a “short list” Project Management - Project Bailout -

202 Contract Administration
Contract administration ensures that the seller’s performance meets contractual requirements Contracts are legal relationships, so it is important that legal and contracting professionals be involved in writing and administering contracts Many project managers ignore contractual issues, which can result in serious problems Project Management - Project Bailout -

203 Project Management - Project Bailout -
Contract Close Out Contract close-out includes product verification to determine if all work was completed correctly and satisfactorily administrative activities to update records to reflect final results archiving information for future use Procurement audits identify lessons learned in the procurement process Project Management - Project Bailout -

204 Cost Reimbursable Contracts
Cost plus incentive fee (CPIF): the buyer pays the seller for allowable performance costs plus a predetermined fee and an incentive bonus Cost plus fixed fee (CPFF): the buyer pays the seller for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs Cost plus percentage of costs (CPPC): the buyer pays the seller for allowable performance costs plus a predetermined percentage based on total costs Project Management - Project Bailout -

205 Project Management as a Profession
Chapter 12 Project Management as a Profession Project Management - Project Bailout -

206 PM Career Development Path
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207 Project Management Institute (PMI)
Not-for-profit professional association Over 80,000 members worldwide Established 1969 Global Organization Headquartered in: Newtown Square, Pennsylvania USA Project Management - Project Bailout -

208 PMP Certification Requirements
Four main requirements for earning PMP certification Having experience working in the field of project management. You need 4,500 hours with a baccalaureate degree and 7,500 without a degree Signing a PMP Certificate and Candidate Agreement and Release form completing the PMP Certification Exam Application and paying a fee of $555 for non-PMI members and $405 for members Passing the PMP exam Project Management - Project Bailout -

209 PMP Certification (by industry)
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210 PM Needs Some Domain Knowledge
No one understands everything well! It helps to be effective project management if you understand (or once understood) one the domains well! Software Quality etc.. People Skills are required! Project Management - Project Bailout -

211 Project Management - Project Bailout -
Discussion ??? Project Management - Project Bailout -

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