CEU
Power Tools for
Managing
Projects
Project Management
What You Need to Know
Some Basics
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Project
• Defined as “a temporary endeavor undertaken to
create
a unique product, service, or result”
• Characteristics include:
– Time limited with a definite beginning and end
– End is achieved when one of the following occurs
•
•
•
Project objectives are met
Project is terminated
Need for the project no longer exists
– Undertaken for a purpose (to create a unique
product, service or result)
– Often involves “progressive elaboration”
•
•
Because you may not know everything about the product initially, you may have to plan and develop it in
steps
Often called “rolling wave planning”
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Operations vs. Projects
Operations management differs from project management
•
Operations
Ongoing endeavor
•
Projects
Temporary endeavor
•
Produces repetitive output(s)
•
Produces unique output(s)
•
Supports the business environment
where projects are executed
•
Can intersect with operations at
various points of product life cycle
–
•
Interaction with projects is
common
Does not end when objectives are
met
–
New objectives are set to support
organizational needs
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Product vs. Project Life Cycle
Comparison
Project Life Cycle
Product Life Cycle
•
Phases are generally
sequential, non-overlapping,
and determined by
organization’s control need
•
Last phase is generally the
product’s retirement
•
Facets of the product life
cycle are often run as a
project
•
Product may have many
projects associated with it
•
Occur in one or more phases
of the product life cycle
•
When project output is
related to a product, there
are many possible
relationships
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Cost and Staffing Level
Project Life Cycle Characteristics
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Project Life Cycle Characteristics
A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fourth Edition, Figure 2-2
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Product Life Cycle
• Product life cycle describes
phases in the life of a product,
typically ending in product
retirement
Example of a Product Life Cycle
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Projects vs. Operational Work
• Projects and operations share characteristics
–
–
–
–
Work is performed by individuals
Work is limited by constraints
Work is planned, executed, monitored and controlled
Work is performed to achieve organizational objectives
• Projects and operations differ
– Operations are ongoing; produce repetitive products,
services, or results
– Projects are temporary endeavors; produce a unique
product, service, or result
• Operations and projects interact
– Operations supplies resources to projects
– Projects may produce deliverables that support
operations
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Types of Organizations and Their
Characteristics
Organization
Project
Matrix
Functional
Characteristics
Projectized
Weak Matrix
Balanced
Matrix
Strong Matrix
Project Manager’s
Authority
Little or None
Limited
Low to Moderate
Moderate to High
High to Almost
Total
Resource Availability
Little or None
Limited
Low to Moderate
Moderate to High
High to Almost
Total
Who controls the project
budget
Functional
Manager
Functional
Manager
Mixed
Project Manager
Project Manager
Project Manager’s Role
Part-time
Part-time
Full Time
Full Time
Full Time
Project Management
Administrative Staff
Part-time
Part-time
Part-time
Full Time
Full Time
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Project Management Processes
• Project manager—along with project team—is responsible
for determining:
– Which processes are appropriate for the project
– Whether processes should be tailored
– Appropriate degree of rigor for each process
• Must understand that project management is an
integrative undertaking
– Requires each process to be aligned and connected with the
other processes to facilitate coordination
• Must also understand that processes are iterative—many
are repeated during the project
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This is not a Project Management Plan
WBS
1
1.1
1.1.1
1.1.2
1.1.2.1
1.1.2.2
1.1.2.3
1.1.2.4
1.2
1.2.1
1.2.2
1.2.3
1.2.3.1
1.2.3.1.1
1.2.3.1.2
Task Name
Duration
XYZ PROJECT--SYSTEMS INTEGRATION AND SUPPORT
Start
Finish
Predecessors
N
34d
Mon 8/5/96
Thu 9/19/96
10d
Mon 8/5/96
Fri 8/16/96
1d
Mon 8/5/96
Mon 8/5/96
10d
Mon 8/5/96
Fri 8/16/96
Gather Past Systems Data
5d
Mon 8/5/96
Fri 8/9/96
Prepare Strawman Solution
3d
Mon 8/12/96
Wed 8/14/96
Finalize System Design
1d
Thu 8/15/96
Thu 8/15/96
Obtain Customer Sign-off
1d
Fri 8/16/96
Fri 8/16/96
24d
Mon 8/19/96
Thu 9/19/96
Develop Project Plan
4d
Mon 8/19/96
Thu 8/22/96
Hold Kickoff Meetings
1d
Fri 8/23/96
Fri 8/23/96
11d
Thu 9/5/96
Thu 9/19/96
11d
Thu 9/5/96
Thu 9/19/96
Weekly Activity Report 1
1d
Thu 9/5/96
Thu 9/5/96
P
Weekly Activity Report 2
1d
Thu 9/12/96
Thu 9/12/96
P
Initiate Project
Validate Customer Requirement
Design System/Network
Provide Project Management Services
Provide Continuing Project Management
W eekly Activity Report
P
D
5
6
7
8
D
D
P
P
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P
P
Change…It Happens
• Manages changes to the project
management plan, project scope statement,
and other deliverables
• Assures that only approved changes are
incorporated into a revised baseline
NO PLAN IS EVER
EXECUTED AS
WRITTEN;
Take Heart!!
YOURS WON’T BE
THE FIRST
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Processes…They Are Iterative
Plan
Act
Deming
Cycle
Do
Check
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2 Kinds of Scope
• Project Scope
– Work that needs to be accomplished to deliver a
product, service, or result with the specified
features and functions
– Measured against project management plan
• Product Scope
– Features and functions that characterize a
product, service, or result
– Measured against product requirements
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Decomposition
•
WBS structure can be created using different methods
– Using phases of the project life cycle as the first level of
decomposition; second level consists of the product and project
deliverables
– Using major deliverables as the first level of decomposition
– Using subprojects that may be developed by organizations outside
the project team (e.g., contracted work); seller develops the
supporting contract work breakdown structure
•
WBS components represent verifiable products, services, or
results
•
WBS can be structured as an outline, organizational chart,
fishbone diagram, etc.
•
Decomposition may not be possible for a deliverable or
subproject to be accomplished far into the future
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Time Management
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Project Cost Management
• Cost management work follows planning
(Develop PM Plan)
• Planning process produces a cost
management plan that :
– Documents cost management processes, tools
and techniques
– Can establish:
•
•
•
•
•
•
•
Level of accuracy
Units of measure
Organizational procedures links
Control thresholds
Rules of performance measurement
Reporting formats
Process descriptions
– May be formal or informal, highly detailed or
broadly framed, based on project needs
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Budget Estimating
Budget Estimates
Top-Down Estimating (Rough Estimate)
Rough Order of Magnitude (ROM) -50% to +100%
Completed during initiation (not very accurate)
Conceptual -30% to +50%
Less Accurate
Preliminary -20% to +30%
Definitive
- 15% to +20%
Control
-10% to +15%
Most Accurate
Bottom-Up Estimating
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Cost Performance Baseline
– Authorized, time-phased budget at completion (BAC) used to
measure, monitor, and control over all cost performance on the
project
– Summation of the approved budgets by time period
– In EVM, referred to as the performance measurement baseline
(PMB)
– Often displayed in the form of an S-Curve
Cost Performance Baseline
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Project Quality Management
• Recognizes the distinction between “precision” and
“accuracy”
– Precision means that values of repeated measures are
clustered and have little scatter
– Accuracy means that the measured value is very close to
the true value
– Precise measurements are not necessarily accurate
– Very accurate measurements are not necessarily precise
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Cost of Quality
Cost of Conformance
Cost of Nonconformance
Prevention Costs
Internal Failure Costs
(Build quality product)
(Failures funded by the project)
•
•
•
•
• Rework
• Scrap
Training
Document processes
Equipment
Time to do it right
External Failure Costs
Appraisal Costs
(Failures found by the customer)
(Assess the quality)
•
•
•
•
• Testing
• Destructive testing loss
• Inspections
Money spent during the
project to avoid failures
Liabilities
Warranty work
Lost business
Loss of customers!
Money spent during and after
the project because of
failures
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Project Human Resource Management
• Human resource management includes processes that
organize, manage, and lead the project team
• Project team is comprised of individuals assigned/acquired
to the roles and responsibilities for completing the project
– Type and number of project team members can change
frequently
– Project team may also be referred to as the project’s staff
– Early involvement of all team members in project planning
and decision making can be beneficial
• The earlier, the better
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Project Communications Management
• Requires most of the project manager’s time
• Covers tasks related to producing, compiling, sending,
storing, distributing, and managing project
records/information
• Determines what to communicate, to whom, how often
and when to reevaluate the plan
• Has many potential dimensions, including:
–
–
–
–
–
–
Internal and external
Formal and informal
Vertical and horizontal
Official and unofficial
Written and oral
Verbal and non-verbal
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Communication Model
Encode
Modifying a
message so that it
can be sent
Sender
Responsible for making the
information clear and
complete so that the
receiver can receive it
correctly, and confirming
that it is properly understood
Noise
Something that
interferes with
the message
Message
Medium
Receiver
Responsible for making
sure that the information
is received in its entirety
and understood correctly
Decode
Feedback
Modifying a message
that has been sent so
that it can be
understood….
”if I understand you
correctly, you are
saying….
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Project Risk Management
• Project risk is always in the future
• Risk is an uncertain event or condition that, if it occurs, has
an effect on at least one project objective (e.g., scope,
schedule, cost, quality)
• Risk may have one or more causes
–
–
–
–
Requirement
Assumption
Constraint
Condition
• Risk may have one or more impacts/outcomes
• Risk impact/outcome may be negative or positive
– Negative event = threat
– Positive event = opportunity
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Project Procurement
Management
•
Procurement Management consists of four processes:
1.
2.
3.
4.
•
Plan Procurements
Conduct Procurements
Administer Procurements
Close Procurements
Processes interact with each other and with processes from other
Knowledge Areas
– Each process can involve effort from a group or person, based on project
requirements
– Each process occurs at least once in every project and occurs in one or more of
the project phases, if the project is divided into phases
•
Procurement management processes involve contracts that are legal
documents between a buyer and a seller
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Finally, the Project Manager….
•
•
•
•
•
•
•
•
•
•
The Project Manager—responsible for everything required to make project a success
Not like typical hierarchical line management role
Project Manager center of everything relating to project
Example, Controlling the contributions of seniors and peers is just as important as
managing the work of the team
Project Manager needs to manage
Project Manager—main focal point for liaison with other departments, projects and
initiatives
Project Manager—main point of contact for aspects requiring co-operation and coordination with external parties—making sure everything is in place to guarantee
success
Project Manager—direct responsibility for activities of all project participants, all
project tasks and all deliverables
Important!.... Project Manager needs to achieve this without direct control over
participants
Project Manager has no power over the leadership, nor the internal and external
contributors
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Summary
Proper understanding of the tools and knowing
how and when to use them is the key to
effectively managing your projects.
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