Module 02 : Knowing What the Project Is, Part 1

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4 Knowing WHAT The Project Is

5 * No formal project approval (initiation) process * Unrealistic expectations and assumptions * Timing of Project Manager engagement * Degree of accuracy for project and product documents * Speed vs Accuracy vs Change Control culture * Functional Areas’ Concern: Spending precious resources’ time on projects that will be disapproved

6 * Project documentation intensity / rigor. Factors: * Duration * Cost * Project risk * Priority / importance * Project classification * Small, Medium, Large * Standard, Light, Tracking * “Project” definition * Projects or investments * Project approval process * Project classification - Strategy alignment - Functional group - Others

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8 Q1: Linear Approach o Low complexity o Well understood technology o Low risk o Completed similar project Q1: Linear Approach o Low complexity o Well understood technology o Low risk o Completed similar project Q2: Adaptive / Iterative Approach o Product development and process improvement o Production prototype development Q2: Adaptive / Iterative Approach o Product development and process improvement o Production prototype development Q4: Unlikely Situation Solution looking for a problem Q4: Unlikely Situation Solution looking for a problem Q3: Extreme Approach o Nothing about the project is certain o Product is accepted after some iterations or pulls plug o R & D Q3: Extreme Approach o Nothing about the project is certain o Product is accepted after some iterations or pulls plug o R & D GOAL SOLUTION / REQUIREMENTS Unclear Clear Unclear

9 GOAL SOLUTION & REQUIREMENTS UNCLEAR CLEAR Extreme Iterative / Adaptive Linear UNCERTAINTY & COMPLEXITY INCREASES CLEAR

10 Next Cycle?

11 * Fast Tracking practice of overlapping phases a.k.a concurrent engineering Phase 1 Phase 2 Phase n Rolling wave planning – progressive detailing of the project plan that indicates iterative and ongoing nature of planning. Near-term deliverables identified at a low-level view of detail, long-term deliverables identified at a high-level view of detail (Iterative, Adaptive, Extreme Life Cycle Approaches)

12 What * Knowing What the Project Is: Project Planning Stakeholder Management

Objective: Identify all the work required, and only the work required, to complete the project successfully Stakeholder Register Project Charter Product Needs Project Mgm’t Needs Scope Statement Work Breakdown Structure Approved Scope Documents

Product scope description Characteristic of the product that the project will produce Project life cycle approach Deliverables List of sub-products whose full and satisfactory delivery marks project completion. Usually includes milestone deliverables. Product acceptance criteria Successful completion metrics Project exclusions Project assumptions and constraints Sponsor approval

15 * Assumptions Factors that are considered to be true, real, or certain for planning purposes Generally involves a degree of risk * Constraints Factors that limit the project team’s options

16 * Draft a Scope Statement for your project (30 minutes) * Use the workbook template.

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18 * Subdivision of major project deliverables or sub-deliverables into smaller, more manageable components until the deliverables are defined in sufficient detail to support development of project activities (planning, executing, etc..) Identify major project deliverables Decide if adequate cost and duration estimate can be made at this level of detail for each deliverable Identify constituent components of the deliverable if necessary Verify correctness of decomposition (necessity, definition, cost, duration, responsibility) Definition:Steps:

19 A deliverable oriented grouping of project components that organizes and defines the total scope of the project Defines products, not tasks Can be developed using a top-down or bottom-up approach Can be hardware-related, function- related, life cycle-related or a combination

20 Lowest level deliverable in a WBS Work effort guideline - 80 to 150 hours Ownership assigned at this level Tasks are identified under this level Task size guideline - not to exceed 80 hours; less for high risk project

21 Product Process Project Management Process

22 * Scope Statement * WBS

23 May not be fully known at the start of a project May come from multiple sources / groups May come at various levels of details Some stakeholders may not be known initially May be “wants” and not “needs” Wants - usually more associated with a solution Needs - usually more associated with the underlying problem May conflict with each other May feed off each other Usually requires iterations and trade-offs to finalize May change

24HighMediumLowScope Time Cost

25 Make sure project stakeholders have all been identified Functional groups that will have a deliverable on the project should be represented on the project team WBS should represent only the work needed to complete the project successfully Validate the Scope baseline documents with the project sponsor or approving authority Process iteration is the norm

26 Construct a life-cycle based WBS for your project Use a Post-It-Note sheet for each deliverable Concentrate on product deliverables but add project management process deliverable that have already been discussed in class

27 * Short Quiz * Team presentation (15 minutes each): * Stakeholder Satisfaction Matrix * Lifecycle * Scope Statement * WBS

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29 Objective: Determine the time required to meet the project needs

30 * Should include planned start and finish dates for each deliverable / activity. * Tabular form * Graphical form – Bar / Gantt Chart – Milestone chart – Network diagrams

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33 Objective: Identify interdependencies among tasks / deliverables Primary Deliverable: Project Schedule Network Diagram

34 Mandatory – inherent in the nature of the work being done, a.k.a. hard logic Discretionary – defined by the project team, a.k.a. preferred logic, preferential logic, soft logic External – involve relationships between project activities and non-project activities

35 Gantt or bar charts Milestone charts Networks (show interdependencies) Precedence Diagram Method (PDM) Arrow Diagram Method (ADM)

36 Method of constructing network diagram that uses boxes (nodes) to represent activities and connects them with arrows to show dependencies a.k.a. Activity On Node (AON)

37 FINISH-TO-START START-TO-START FINISH START START-TO-FINISH FINISH START

38 FINISH-TO-FINISH PERCENT COMPLETE FINISH 20 % 50 %

39 EARLY START 01/06/12 TIME DURATION 2 WORK-WEEKS EARLY FINISH 14/06/12 ACTIVITY 4 $250,000 LATE START 15/06/12 COST/PROFIT CENTER 2810 LATE FINISH 28/06/12 SLACK

40 Activity Preceding Activity A BA CA DB EC, D FE Early Start Durati on Early Finish A Late Start Slack Late Finish Early Start Durati on Early Finish B Late Start Slack Late Finish Early Start Durati on Early Finish D Late Start Slack Late Finish Early Start Durati on Early Finish E Late Start Slack Late Finish Early Start Durati on Early Finish F Late Start Slack Late Finish Early Start Durati on Early Finish C Late Start Slack Late Finish

41 Objective: Estimate the type and quantities of materials, people, equipment or supplies required to complete each task or deliverable Primary Deliverable: Task / deliverable resource requirements Secondary Deliverable: Resource Breakdown Structure Primary Deliverable: Project Schedule Network Diagram

42 People, material, equipment, supplies Time / Skill and other trade offs Resource requirements including timing Resource Organizational Matrix

43 Define the Tasks Comprising the Work Package Sequence the Tasks or / and Deliverables Estimate the Tasks or Deliverables Resource Estimate the Tasks or Deliverables Durations Develop the Schedule Objective: Determine the work period required to complete the task or deliverable with the estimated resources Primary Deliverable: Task / deliverable resource requirements Secondary Deliverable: Resource Breakdown Structure Primary Deliverable: Project Schedule Network Diagram Primary Deliverable: Task / deliverable duration estimate

44 Expert judgment Analogous estimating Parametric estimating Three-point estimating Reserve time (contingency)

45 Use actual duration of a previous similar activity as basis to estimate duration of the future activity Approximate (rule of thumb) estimate Made without any detailed engineering data A.k.a “Top-down estimating”

46 Quantities to be performed for each work category defined by the engineering/design effort multiplied by the productivity unit rate Example: No. of drawings x no. of hours per drawing

47 * O - Optimistic completion time estimate * M – Most likely completion time estimate * P – Pessimistic completion time estimate * Task Duration = (O+4M+P)/6

48 Objective: Create project schedule based on activity/deliverable sequences, resource and duration estimates, and schedule constraints Primary Deliverable: Task / deliverable resource requirements Secondary Deliverable: Resource Breakdown Structure Primary Deliverable: Project Schedule Network Diagram Primary Deliverable: Task / deliverable duration estimate Primary Deliverable: Project Schedule Baseline Secondary Deliverable: Milestone Schedule

49 Critical Path Longest time span through the total system of activities / events Delay in any activity / task in the critical path delays the whole project Improvement in total project time means reducing time for activities / events in the critical path Slack Time (Float) - Time differential between the scheduled completion date and the required date to meet critical path.

50 * Determined by doing forward and backward pass calculations

51 The first predecessor task(s) have an Early Start (ES) of zero Early Finish (EF) dates are calculated by adding the task duration (TD) to the earliest date (ES) a task can start The EF date of the predecessor becomes the ES date for the successor When there are multiple predecessors, ES is the larger of the EFs for the task

52 Late Start (LS) and Late Finish (LF) dates are calculated starting from the end of the project LS is calculated by subtracting the TD from the LF of the task LS for the successor task becomes the LF for the predecessor task When there are multiple successors, LF is the smaller of the LSs

53 Task Float = Late Finish – Early Finish Those tasks with zero float are on the critical path

54 * Refer to your PM Workbook.

55 * Life Cycle Approach * Constraints – Imposed dates on activities (start/finish) – Key events / major milestones * Leads and lags: dependency relationship among activities * Schedule compression – Crashing – Fast Tracking

56 Next Cycle?

57 * Determine the Schedule for a phase of your project (20 minutes)

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Objective: Identify the funding needed to meet project goals / deliverables. WBS Resource Plan Project Schedule Work Package cost estimate Project budget estimate Cost Baseline

60 Expert judgment Analogous estimating Parametric estimating Three-point estimating “Bottom-Up” Estimating Reserve Analysis (contingency)

61 * Use actual cost of a previous similar project to estimate cost of current project * Approximate (rule of thumb) estimate * Made without any detailed engineering data * Top-down estimating * Accuracy +- 15%

62 * Use project parameter in a mathematical model to predict project cost * Made without any detailed engineering data * Order of magnitude estimate * May use past experience * Accuracy +- 35% within the scope of the project * Example: construction cost per square foot

63 * Cost estimate of WBS work packages rolled up to a project total * Definitive/detailed estimate * Prepared from well-defined engineering data, vendor quotes, unit prices, etc. * Accuracy +- 5%

64 * Time-phased budget for measuring, monitoring and controlling overall project cost performance Cumulative Amount Time

65 110, , , , , ,000 PROGRAM COST, $ PROJECT COMPLETION TIME, WEEKS CRASH B CRASH F CRASH A CRASH E NORMAL OPERATIONS ALL ACTIVITIES CRASHED

66 * Shows monthly cash flow * Identifies capitalized vs. operating

67 * Determine appropriate project life cycle approach * Use Scope Statement / WBS to baseline project scope * Develop a project schedule to baseline project time * Develop a cost baseline * Focus is more on “knowing what the project is” * Partner with line managers to get agreement on scope, time and cost baselines * Change control process should be in place as soon as possible * Validate progressive elaboration outputs

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70 * Determine cost baseline for a phase of your project (40 minutes)

71 * Critical Path Homework Due (Workbook 6.3.1) * Short Quiz