1. Introduction to Project Management Project: Planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations. Project management: The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. 2. Organization of a Project Before we go any further, we need to establish the basic organizational structure of a project. The key people involved in a project are defined as follows: 1. Project Sponsor. One level above the project manager, this person is the organizational contact for the project. They often deal with funding the project, providing resources and support and are usually accountable for project success. They can be internal or external to the organization carrying out the project. 2. Project Manager. The person that handles the day-to-day administration of the project and project team and is directly accountable for its success. Large projects can be managed by a project management team. 3. Project Team. The person or people who perform the project’s technical work, reporting to the project manager. 4. Stakeholders. A party that has an interest in the work being performed by the project. This ranges from investors to affected parties to government regulators. I often refer to the project sponsor as a stakeholder – they are effectively the most important stakeholder – although this might confuse the definition a bit. 5. Project life cycle: Subdivides a project into a number of sequential phases. A phase consists of a number of related activities that come together to produce a specific deliverable. A project life cycle consists of strategy phases, project phases and operational phases. 6. Project phase: A collection of logically related project activities that concludes in the completion of one or more deliverables. 7. The purpose of a business case: The business case outlines the corporate strategy indicating how to solve the problems, requirements and opportunities with a number of proposals. The business case seeks to justify the use of resources to pursue each course of action. 8. Feasibility study: A process conducted to assess if the project can be performed according to the requirements, with the effective use of resources and within the defined constraints. 9. Project Charter: The document that outlines the purpose of the project and how it should be managed. 10. Specification: A document that specifies, in a complete, precise, verifiable manner, the requirements, design or other characteristics of a system, component, product, result or service, and the procedures for determining whether these provisions have been satisfied. 11. Build-method: Outlines how to make the project with the facilities available. 12. Commissioning: The advancement of an installation from the stage of static completion to full working order and achievement of the specified operational requirements. 13. Deliverable: Any distinct, unique and verifiable product, result or capability which a project phase produces that combine with other deliverables to produce the project’s main deliverable. 3. how to create a WBS 1. The output of the WBS development process might seem simple: a short document with a list of deliverables. To create it, however, you need a thorough understanding of the project’s scope, your team’s capabilities, and your stakeholders’ requirements. 2. Here’s a process for creating a WBS from scratch. 3. Understand the project’s scope 4. The WBS is one of the key documents created at the end of the ‘Planning’ phase. Project scope statement to understand the project’s scope in detail. Project scope management plan to understand how to deal with changes to the project’s scope (which will affect your deliverables). You’ll want to refer to your project charter to develop the scope statement and scope management plan. The output of the entire WBS development process is as follows: Work breakdown structure - WBS dictionary - Scope baseline 4. Four P’s of Project Management Phases: The project life cycle explains how the project timeline can be subdivided into a number of phases with different deliverables, and how the level of effort, level of influence and costs vary over the project’s life cycle. Processes: The project management process explains how the project phases can be subdivided into a number of management process groups to initiate, plan, execute and close the phase. Plans: The project plan explains how the management processes can be subdivided into a number of individual plans that combine to form the baseline plan. People: The project organisation structure explains how the leadership and management of the project personnel, and other interested stakeholders can be subdivided into the project organisation structure. Estonian Process: A process is a systematic series of actions or functions to bring about a required change or result 5. Organisational Structures Which organisation structure is also known as the traditional organisation structure and why? The functional organisation structure is also known as the traditional organisation structure, because this structure is based on the subdivision of product lines or disciplines into separate departments, together with a vertical hierarchy of responsibility and authority. Functional Organisational Structure In a functional organisation structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. Generally, the functional manager has more authority than the project manager. Advantages The functional structure gives you the least power as a project manager, but offers plenty of other advantages: control over the team members and other resources required. ou can easily access the experts you need because they are in the same functional area. is relatively small and simple. because it provides them with career opportunities. Project work can be a great way to motivate your team. o a functional team, it’s going to be the functional team you work in, which can make closing a project easier. Disadvantages Although this structure has plenty of advantages, also consider some downsides: that you don’t have access to people outside your functional division. manager than to their work on the project, which can create conflicts. a functional project manager for each function. It can result in work falling through the cracks if all project managers don’t work harmoniously together. widely with the company. Maintaining a strategic focus can be harder. Project Organisational Structure Dedicated teams are put together to work on projects in a project organisational structure. The project manager probably has line management responsibility for the project team members. Examples of this would include large construction builds, but also corporate initiatives that require a dedicated team. The project manager has ultimate authority, reporting to the project sponsor and the project board. The individuals on the team work directly for the project manager. Advantages The obvious advantage of a project structure is that you have more control over the team, but other advantages are in place, too. siest structure within which to create a strong team culture. the day job for the people working on the project. Their day job is the project. You’ll know when the team members are available and there’s no risk that they’ll be pulled off at short notice to business-as-usual work for another manager. this structure are great environments for improving your project management skills as well as more technical leadership skills. Disadvantages The project structure is the easiest to work with but still has some drawbacks. one project is an expensive commitment. It tends to be an option only on big projects. back, especially if the project is long. Project work is stretching, and returning to what you did before after a period working in a multidisciplinary environment on a new, challenging project isn’t an appealing prospect for many people. Managing the transition of the team when you close a project becomes even more important. mes closing a project can mean losing your job if the business has moved on and another role isn’t available for you. They can limit the number of projects the company can do at any one time, especially when different projects require the same skills. which means spending time and effort on human resource tasks that you wouldn’t have to do in other structures. If you enjoy this element of working with people, this factor could be an advantage. Matrix Organisational Structure The third option is a matrix structure. Resources are shared across both businessas-usual work and project work. It might mean having two managers or ‘dotted-line’ responsibility to a project manager as well as to the team manager. The functional management line structure is normally in place first, and the project manager takes the dotted line. This structure splits power and authority between the functional or division team manager and the project manager. You’ll need to use your negotiating skills to their full power. Advantages Matrix structures are very common because they allow managers to make flexible choices with how people spend their time. You’ll likely work in a matrix environment at some point in your career. The advantages of this structure are as follows: You can work on lots of different things, sometimes in parallel – although this point can be argued as a disadvantage as well. along that has to take priority, it’s easy enough to pivot and suddenly focus on something else. You can’t do that easily in a project structure, which takes longer to disband and regroup. cycle and methodology, so moving between projects is easy. People can join a project team with relatively little onboarding required when the terminology and processes are common. Disadvantages As with all setups, this one has its pitfalls, too. Despite it being a common structure, not many modern workplaces have cracked the problems of overload. Giving individuals too much to do can be easy if you don’t have systems in place to manage and monitor the entirety of their workload. Other disadvantages are as follows: the same resources as another project. -fenced the best resources – the most appropriate people with the right skills – or their line manager might not make them available for project work. -as-usual tasks and project work for individuals, especially when both managers are giving them different priorities. their future careers. Although you might know that you want to stay in project management, you may have the option of progressing into a more senior functional role or a more project-orientated role. But having lots of career options is a good thing, even if it does make for difficult decisions. An organisational structure that works perfectly for all the business-as-usual work doesn’t always work for projects, and you have to manage within the environment in which you work. Getting some experience in each of these structures is a good idea so that you can experience them first-hand. It will help you decide which environment suits you best and fits your skills and preferences. Then you can make an informed choice if you have the chance to decide your future job environment. 6. Phases of a Project The foundation upon which the PMBOK is built consists of the five process groups that every project goes through. They are like phases, except that they aren’t necessarily always in chronological order: 1. Initiating. The tasks required to authorize, fund and define the project, generally on the organizational level (above the project). The organization defines a business need the project is meant to satisfy. 2. Planning. The project management team define how the project will be carried out, who will do the work, how long it will take, and so forth. The planning phase should define the project in sufficient detail that all stakeholders’ expectations are understood. 3. Execution. The project work is completed and the end product or service is achieved while secondary stakeholder requirements are satisfied. 4. Monitoring & Controlling. Concurrent to the project work (execution phase) the project management team monitors and controls all aspects of the project – schedule, cost, stakeholder’s requirements, etc. If any part causes problems, changes to the project plan are made. 5. Closing. The project has completed it’s product or service, and the project must be closed. In each process groups, one or more project management documents are created. These consist of: Phase Initiating Planning Execution Monitoring Closing Project Documents Project Charter Project Management Plan Status Updates Stakeholder Communications Variance analysis Project change documentation Final reporting The part that is frequently underestimated is the second phase: Project planning. The Project Management Institute has suggested that planning effort be roughly 20-30% of the total work. This may seem like a lot but it reduces problems further on. In fact, the planning group is by far the largest within the PMBOK. It contains more than half of the processes even though it is one out of five process groups. The project management plan that is generated during the planning phase encompasses all of the knowledge areas, and it should be scaled to the size of the project. 7. Project Management Knowledge Areas The five project phases (i.e. process groups) are in chronological order, but within each phase are various parts of different “knowledge areas.” Thus, the ten knowledge areas are encountered at various times during a project. The knowledge areas are: Project Integration Management. The stuff that doesn’t fit in any other category, like developing the project management plan itself, making changes to the project, etc. Project Scope Management. Scope is the work that is included in the project. It should be defined in the planning phase (i.e. the project management plan) and changes should be well defined. Project Time Management. Creating, monitoring and enforcing the project schedule, milestones, and completion dates. Project Cost Management. Estimating the project costs, and monitoring and controlling them throughout the project. Project Quality Management. Determining the quality standards that apply to the project, and monitoring the quality of work produced. Project Human Resource Management. Ascertaining the people requirements of the project, acquiring them, and developing them to ensure they produce the required results. Project Communications Management. Establishing the communication needs of each stakeholder, and making sure they are involved to the required degree. Project Risk Management. Figuring out who the biggest alligators under the bed are, and how to make sure you never see them. Project Procurement Management. Hiring the outside consultants and contractors necessary to get the job done, and managing them. Project Stakeholder Management. Identifying each stakeholder and making sure they’re happy. 8. The Project Management Plan The project management plan is the central foundation of project management, and as such we will focus a separate section on it. It is a document that gives the project manager their direction throughout the project, aiding in decision making. It manages the stakeholder’s expectations. But most importantly, it tells the project sponsor, who is usually the project manager’s boss, how the project will be managed. Thus, it can also be a career-changer. It should contain enough detail to define the project so that all stakeholders understand how the project will be managed. When project changes occur (deadlines, budgets, etc.) the project management plan should be updated. The project manager should always have a current “plan.” This plan should be available to all project stakeholders, if not directly provided to them. But the project sponsor should absolutely be familiar with it and understand how the project is being managed. Within the project management plan are various sections which define the project and should be updated when project changes occur: Scope Statement. Many projects encounter problems because it’s easy to insert small tasks into the project, veer slightly off course, perform non-important tasks, and the like. The scope statement should be detailed, including exclusions for things that might be part of similar projects (Does the house include a garage?). It should be set in stone and untouchable without a project change. Stakeholder list. All of the stakeholders in the project should be identified. But beware, the biggest problems originate with the minor, seemingly insignificant stakeholders that get glanced over because you hope you don’t ever have to talk to them. This passivity will only ensure that you eventually will. Task List. To govern a project effectively, it must be carved up into tasks. Each task will be assigned a duration (time) and budget (cost). Schedule. For small projects this could involve the specification of few project milestones, ranging up to a full graphical project schedule. For larger projects, each task is assigned a start and end date, and/or dependencies on other tasks (i.e. Task B can’t start until Task A finishes). During the project, leaving the schedule simply to gather dust is not acceptable. If the schedule is not being met, action is required by the project manager. Even if the schedule will be “crashed,” meaning more resources applied to get back on track, doing nothing is tantamount to letting the schedule gather dust on the shelf and renders in meaningless. Cost/Budget. Each task has a cost associated with it. When the actual costs are found to be higher (or lower), even before the task is complete, action should be taken to recover and limit propogation effects to the rest of the project. Quality Standards. All industries have written quality standards that apply to the products and services that are produces in that industry. Appropriate quality standards should be written into the project management plan, and quality control and quality assurance performed throughout the project. Project Team. It is often a part of a strong project management plan, when the project team is spelled out as well as their roles and responsibilities. Organizational charts can provide overall perspective. Additionally, the project manager, project sponsor, and other stakeholders on the organizational level could be identified. Vendors. Any subconsultants, subcontractors, and outside vendors should be identified. Payment methods, unit prices, or standard contracts and the like can be identified. Also, details on how they will be managed can be beneficial, such as action to be taken when they are late, submit scope changes, etc. 9. The Other Documents The other documents which round out my list of introductory project management documents are: Project Charter Optional for small projects, this document authorizes the project to proceed, outlines funding status, and provides an overview of the project from the organizational point of view. Status updates Since a project has a finite beginning and end, providing regular status updates during project execution is very important. The frequency and amount of detail depends on the project, of course, but I would suggest the existence of status updates is almost universal to good project management. Stakeholder communications As a minimum, the project manager must communicate with the project sponsor and project team throughout the project. On top of that, almost all projects have stakeholders who are either actively influencing the outcome, passively interested in the outcome, or actively opposed to the outcome. Correspondence that can influence the project success should be in writing, even email if possible. Keep a paper trail. Variance analysis This involves the calculation of, as a minimum, the cost variance and schedule variance. It requires an estimate of the percent complete of each task, and the resulting variance (cost or schedule) tells you how far ahead or behind the project is. This is an excellent early warning signal for project distress and takes only about 5 minutes once you’ve figured out how to do it via spreadsheets or project management software. That’s why I include it within introductory project management. Project change documentation When a change is made to the project management plan, it should be documented. For small projects this could be as simple as an “update log” within the project management plan. The important thing is not so much the format, but the underlying concept that the project has been planned out and changes to it need to be official. All project changes should be approved and signed off by the project sponsor. Change can involve the schedule (deadlines), costs, quality requirements, etc. Final Reporting I have yet to see a project that doesn’t need some sort of closure. Final details of the product as-built, as-designed, or as-performed, and completion certificates for vendors’ contracts. This tends to be underrated while at the same time it tends to be highly visible to the project manager’s bosses. Do your career a favour and close the project well. 10. Project Management Calculations 1. Variance Cost Variance = Earned Value - Actual Cost The Cost Variance tells a project manager whether you've exceeded your budget or you're under budget. 2. Performance Index Cost Performance Index = Earned Value / Actual Costs The CPI also indicates whether you've exceeded your budget or you're under budget however it gives more information about the degree of variation. If the CPI is less than 1, then the task is over budget If the CPI is equal to 1, then the task is on budget If the CPI is greater than 1, then the task is under budget For example, if your EV = $5,000 and the AC= $3,700 CPI = 5,000/3,700 = 1.35, therefore your project is 35% under budget. Schedule Performance Index = Earned Value/ Planned Value The SPI also helps a project manager determine whether the project is ahead of schedule or behind schedule. If the SPI is less than 1, then the project is behind schedule If the SPI is equal to 1, then the project is on schedule If the SPI is greater than 1, then the project is ahead of schedule For example is your EV= $14,000 and the PV= $7,000: SPI = $14,000/$9,000= 1,56, this means that your project is ahead of schedule by 56%. If your CPI is greater than 1 and your SPI greater than 1 then your project is under budget and ahead of schedule. Hurray! However, if your CPI is greater than 1 but your SPI is less than 1, then your project is under budget but it's behind schedule, this means that you should have completed more tasks by now. These performance indices provide insight into time and cost, they will give you more information on what will happen if the project continues at the same pace. Essentially, they will help you find out in which direction your project is heading and which corrective actions you should take to ensure the project is delivered on time and within budget. 11. Total Float Float is also known as total float. Total float is how long an activity can be delayed, without delaying the project completion date. On a critical path, the total float is zero. Total float is often known as the slack. You can calculate the total float by subtracting the Early Start date of an activity from its Late Start date. Total Float = Late Start date – Early Start date Or You can get it by subtracting the activity’s Early Finish date from its Late Finish date. Total Float = Late Finish date – Early Finish date 12. Free Float Free float is how long an activity can be delayed, without delaying the Early Start of its successor activity. You can calculate the free float by subtracting the Early Finish date of the activity from the Early Start date of the next. Free Float = ES of next Activity – EF of current Activity Please note that if two activities are converging into a single activity, only one of these two activities may have a free float. 13. Example of Planned Value (PV) You have a project to be completed in 12 months. The budget of the project is 100,000 USD. Six months have passed and the schedule says that 50% of the work should be completed. What is the project’s Planned Value (PV)? Given in this question. Project duration: 12 months Project cost (BAC): 100,000 USD Time elapsed: 6 months Percent complete: 50% (as per the schedule) Planned Value is the value of the work that should have been completed so far (as per the schedule). In this case, we should have completed 50% of the total work. Planned Value = 50% of the value of the total work = 50% of BAC = 50% of 100,000 = (50/100) X 100,000 = 50,000 USD Therefore, the project’s Planned Value (PV) is 50,000 USD. 14. Example of Actual Cost (AC) You have a project to be completed in 12 months. The budget of the project is 100,000 USD. Six months have passed and 60,000 USD has been spent, but on closer review, you find that only 40% of the work has been completed so far. What is the project’s Actual Cost (AC)? Actual Cost is the amount of money that you have spent so far. In the question, you have spent 60,000 USD on the project so far. Hence, The project’s Actual Cost is 60,000 USD. 15. Example of Earned Value (EV) You have a project to be completed in 12 months. The budget of the project is 100,000 USD. Six months have passed, and 60,000 USD has been spent. On closer review, you find that only 40% of the work has been completed so far. What is the project’s Earned Value (EV)? In the above question, you can clearly see that only 40% of the work is actually completed, and the definition of Earned Value states that it is the value of the project that has been earned. Earned Value = 40% of the value of total work = 40% of BAC = 40% of 100,000 = 0.4 X 100,000 = 40,000 USD Therefore, the project’s Earned Value (EV) is 40,000 USD. 16. Why identify and analyse stakeholders and their interests? The most important reason for identifying and understanding stakeholders is that it allows you to recruit them as part of the effort. The Community Toolbox believes that, in most cases, a participatory effort that involves representation of as many stakeholders as possible has a number of important advantages: It puts more ideas on the table than would be the case if the development and implementation of the effort were confined to a single organisation or to a small group of like-minded people. It includes varied perspectives from all sectors and elements of the community affected, thus giving a clearer picture of the community context and potential pitfalls and assets. It gains buy-in and support for the effort from all stakeholders by making them an integral part of its development, planning, implementation, and evaluation. It becomes their effort, and they’ll do their best to make it work. It’s fair to everyone. All stakeholders can have a say in the development of an effort that may seriously affect them. It saves you from being blindsided by concerns you didn’t know about. If everyone has a seat at the table, concerns can be aired and resolved before they become stumbling blocks. Even if they can’t be resolved, they won’t come as surprises that derail the effort just when you thought everything was going well. It strengthens your position if there’s opposition. Having all stakeholders on board makes a huge difference in terms of political and moral clout. It creates bridging social capital for the community. Social capital is the web of acquaintances, friendships, family ties, favours, obligations, and other social currency that can be used to cement relationships and strengthen community. Bridging social capital, which creates connections among diverse groups that might not otherwise interact, is perhaps the most valuable kind. It makes possible a community without barriers of class or economics, where people from all walks of life can know and value one another. A participatory process, often including everyone from welfare recipients to bank officers and physicians, can help to create just this sort of situation. It increases the credibility of your organisation. Involving and attending to the concerns of all stakeholders establishes your organisation as fair, ethical, and transparent, and makes it more likely that others will work with you in other circumstances. It increases the chances for the success of your effort. For all of the above reasons, identifying stakeholders and responding to their concerns makes it far more likely that your effort will have both the community support it needs and the appropriate focus to be effective. Problem solving and the need for problem solving in project management Some problems are small and can be resolved quickly. Other problems are large and may require significant time and effort to solve. These larger problems are often tackled by turning them into formal projects. Whether the problem you are focusing on is small or large, using a systematic approach for solving it will help you be a more effective project manager. This approach defines five problem solving steps you can use for most problems... Define the problem Determine the causes Generate ideas Select the best solution Take action. 17. Define the Problem The most important of the problem-solving steps is to define the problem correctly. The way you define the problem will determine how you attempt to solve it. For example, if you receive a complaint about one of your project team members from a client, the solutions you come up with will be different based on the way you define the problem. If you define the problem as poor performance by the team member you will develop different solutions than if you define the problem as poor expectation setting with the client. 18. Determine the Causes Once you have defined the problem, you are ready to dig deeper and start to determine what is causing it. You can use a fishbone diagram to help you perform a cause and effect analysis. 19. Generate Ideas Once the hard work of defining the problem and determining its causes has been completed, it's time to get creative and develop possible solutions to the problem. Two great problem-solving methods you can use for coming up with solutions are brainstorming and mind mapping 20. Select the Best Solution After you come up with several ideas that can solve the problem, one problemsolving technique you can use to decide which one is the best solution to your problem is a simple trade-off analysis. To perform the trade-off analysis, define the critical criteria for the problem that you can use to evaluate how each solution compares to each other. The evaluation can be done using a simple matrix. The highest-ranking solution will be your best solution for this problem. 21. Take Action Once you've determined which solution you will implement, it's time to take action. If the solution involves several actions or requires action from others, it is a good idea to create an action plan and treat it as a mini project. Using this simple five-step approach can inc.