Project Management
Introduction
Agenda
Definitions
Project scope management
Time, quality, cost
Human resources management
Information management
Risk management
Project Management Institute
Michel Tollenaere (INPG)
http://www.g-scop.fr/~tollenam/best
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Definitions
A project is a temporary endeavour undertaken to
create a unique product or service.
It is
• performed by people
• constrained by limited resources
• planned, executed and controlled
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Examples
• developing a new product or service
• effecting change in a structure, staffing or style of an organisation
• designing a new transportation vehicle
• developing or acquiring a new or modified information system
• constructing a building or facility
• building a water system for a community in a developing country
• running at campaign for political office
• implementing a new business procedure or process
• budget from 10k€ to many M€
• METEOR an automatic underground railway in Paris
• implementing SAP in multi-sites company
• the football world cup in Paris in 98
• from 8 to 10 digits numbering in a phone system
• implementing A380 in a company ..\..\
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Project features (1)
Temporary
• A project has a definite beginning and definite end
• The duration of a project is finite
• The opportunity or market window is usually temporary, most projects
have a limited time frame in which to produce the product or service
• The project team - as a team - seldom outlives the project. Most projects
are performed by a team created for the sole purpose of performing the
project
Unique result
• Projects involve doing something that has not been done before in the
same environment
• The project may require some innovation to be completed
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Project features (2)
Progressive elaboration
• A project occurs step by step to define the product or service, in a so
called “progressive elaboration” process.
• for instance, the development of a chemical processing plant begins with
the process engineering to define the characteristics of the process, and
ends with the final assembly.
Development of a chemical processing plant
Define the
chemical
characteristics
of the process
Mechanical
characteristics of the
process units
(pumps..etc)
Detailed
drawings
General plant
layout
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Manufacturing
of the parts
Final
Assembly
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Project features (3)
Progressive elaboration
Project Management Presentation 2008
• In aerospace industry, projects are divided in
milestones (M1, M3, M5, M7, M9, M11)
corresponding to a “state” of the aircraft.
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Project Lifecycle
Cost and
Staffing
level
Initial
Phase
Intermediate
Phases (one
or more)
Final
Phase
Finish
Start
Time
Milestones :
• defined state of the project
• decision point
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Project Lifecycle :
example US - DOD 5000.2
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Construction Project Lifecycle
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Pharmaceuticals Project Lifecycle
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Project scope
management
(PMI chap 5)
Agenda
Definitions
Project scope management
Time, quality, cost
Human resources management
Information management
Risk management
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Project scope management
(PMI chap 5)
• Product Scope : the features and functions that characterise a
product or service
• Project Scope : the work that must be done to deliver a product
with the specified features and functions
Both scopes are described and detailed with specific tools.
Project scope management consists to ensure that the
project includes all the work required, and only the work
required, to complete the product successfully.
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Product scope management
PRODUCT STRUCTURE LEVELS
EXAMPLE OF STRUCTURE
PROGRAMME
PROGRAM
A380
SERIES OF
/DERIVES
AIRPLANE
COMPOSANTS
PRINCIPAUX
MAJOR COMPONENTS
ASSEMBLAGES
ASSEMBLIES
A380 800F
FUSELAGE
CAISSON DE VOILURE
SOUS-ASSEMBLAGES
SUB
-ASSEMBLIES
COMPOSANTS
ELEMENTARY
ELEMENTAIRES
COMPONENTS
A380 800
AILE
WING
LEADING EDGE
STRUCTURE
ATTACHE
A380 700
...
EMPENNAGE
TAILPLANE
...
BORD D’ATTAQUE
SYSTEME
MECANIQUE
HYDRAULIC
SYSTEM
...
...
TRINGLERIE STRUCTURE
Part 10005
Part 10009
• Bill of Materials
• FAST Diagram
• Structured tool that describes the product
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Part 10002
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Project scope management : WBS Work Breakdown Structure
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Project scope management : WBS of a software release
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Project scope definition : from BOM to WBS
• Defining the right activities is essential for « project scope definition »
• a WBS from a previous project is often used as a template for a new project.
• any component in a BOM must be purchased or manufactured.
• in all cases (purchasing or manufacturing), it must be tested.
• any assembly should be assembled and tested (especially in software
engineering)
• documentation activity is essential for robust project
Activity.
An element of work performed during the course of a
project. An activity normally has an expected duration, an expected cost, and
expected resource requirements. Activities can be subdivided into tasks.
Activity Definition.
Identifying the specific activities that must
be performed to produce the various project deliverables.
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Project scope Change Management
• Any change to product and/or project scope must follow a formal process
• This process must finish with the formal acceptance of the change by the
different stakeholders.
A change request may be the result of :
• An external event (eg. Change in a government regulation)
• an error or omission in defining the scope of the product (adding a failure
system regulation).
• an error in defining the scope of the project (a missing inspection)
• a value adding change (positive opportunity)
• a response to an identified risk (see section about risk management)
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Possible evolutions in Product scope
Customer needs :
What is finally developed
Customer needs
description :
simple,
red,
robust,
with
wheels
What is the
manufacturer
expected to do
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What the architect
understands
What the architect
finally described
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Monitoring Project scope during the project
Overquality
Specifications
What has been
realised
Errors in
specifications
Waste
Adequate
Quality
Happy
hazard
Court circuit
Unsatisfaction
Customer’s Needs
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Monitoring Project scope during the project
??
A universal tool ……
??
might be so heavy and expensive
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Project scope management
(PMI chap 5)
Project Scope Management.
A subset of project management
that includes the processes required to ensure that the project includes
all of the work required, and only the work required, to complete the
project successfully. It consists of initiation, scope planning, scope
definition, scope verification, and scope change control.
Scope Definition. Subdividing the major deliverables into smaller, more manageable
components to provide better control.
Scope Planning. The process of progressively elaborating the work of the project,
which includes developing a written scope statement that includes the project
justification, the major deliverables, and the project objectives.
Scope Statement. The scope statement provides a documented basis for making future
project decisions and for confirming or developing common understanding of project
scope among the stakeholders. As the project progresses, the scope statement may need to
be revised or refined to reflect approved changes to the scope of the project.
Scope Verification.
Formalizing acceptance of the project scope.
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Project triangle
Time, Cost, Quality
Agenda
Definitions
Project scope management
Time, quality, cost
Human resources management
Information management
Risk management
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Project time management
• requires activity definition
• includes activity sequencing
• estimates activity duration
• elaborates schedule of activities
Activity
duration model
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Project time management
• estimates activity duration
Resource requirements : which resources are required for such
activity ?
Activity duration # activity work effort
Some activities (eg. getting authorisation, transportation time) can
require a long time without any work-effort.
• elaborates schedule of activities
Many software tools (MSProject) do the job quite well (in a
deterministic manner)
They offer many outputs (GANTT Chart, PERT … etc)
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Project time management
• relationships between activities : Logical Relationship
Activity A
•
•
•
•
Activity B
Finish-to-start-the initiation of work of the successor depends upon the
completion of work of the predecessor.
Finish-to-finish-the completion of the work of the successor cannot finish
until the completion of work of the predecessor.
Start-to-start-the initiation of work of the successor depends upon the
initiation of the work of the predecessor.
Start-to-finish-the completion of the successor is dependent upon the
initiation of the predecessor.
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Project time management
• Network Logic Diagram
A
B
E
D
F
Start
C
Finish
Precedence diagram method ; A, B, C, D, E, F are activities
B
A
Start
E
C
D
F
Finish
Arrow diagramming method ; activities are shown as arrows
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Project time management
• Provides start and finish dates for all activities
Float.
The amount of time that an activity may be delayed from its
early start without delaying the project finish date. Float is a mathematical
calculation, and can change as the project progresses and changes are made to the
project plan. Also called slack, total float, and path float.
Free Float (FF).
The amount of time that an activity can be delayed without
delaying the early start of any immediately following activities. See also float.
A
B
E
Start
D
C
B
A
Start
C
D
F
Finish
E
F
Finish
Critical Path.
The series of activities that
determines the duration of the project. In a
deterministic model, the critical path is usually
defined as those activities with float less than or
equal to a specified value, often zero. It is the
longest path through the project. See critical path
method.
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Project Cost management
• cost management includes the following processes
Resource planning - Cost estimating - Cost budgeting - Cost control
Cumulative
values M€
Total budget
of the project
Final
Phase
Initial
Phase
Intermediate Phases
(one or more)
Start
Finish
Time
The S – Curve of cost baseline
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Project Cost management
• different cost for an activity
Planned Value (PV).
The physical work scheduled, plus the
authorized budget to accomplish the scheduled work. Previously, this
was called the budgeted costs for work scheduled (BCWS).
Earned Value (EV).
The physical work accomplished plus the
authorized budget for this work. The sum of the approved cost estimates
(may include overhead allocation) for activities (or portions of activities)
completed during a given period (usually project-to-date). Previously called
the budgeted cost of work performed (BCWP) for an activity or group of
activities.
Actual Cost (AC). Total costs incurred that must relate to whatever cost was
budgeted within the planned value and earned value (which can sometimes
be direct labor hours alone, direct costs alone, or all costs including indirect
costs) in accomplishing work during a given time period.
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Project Cost Management
• different contracts
A contract is a mutually binding agreement that obligates the seller to provide the specified product
and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories:
Fixed-price or lump-sum contracts - this category of contract involves a fixed total price for a welldefined product. Fixed-price contracts may also include incentives for meeting or exceeding selected
project objectives, such as schedule targets.
Cost-reimbursable contracts - this category of contract involves payment (reimbursement) to the
contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by
the project, such as wages for members of the project team) and indirect costs (costs allocated to the
project by the performing organization as a cost of doing business, such as salaries for corporate
executives). Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable
contracts often include incentives for meeting or exceeding selected project objectives, such as
schedule targets or total cost.
Time and material contracts-time and material contracts are a hybrid type of contractual
arrangement that contain aspects of both cost-reimbursable and fixed- price-type arrangements. Time
and material contracts resemble cost-type arrangements in that they are open ended, because the full
value of the arrangement is not defined at the time of the award. Thus, time and material contracts can
grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and
material arrangements can also resemble fixed-unit arrangements when, for example, the unit rates
are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior
engineers."
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Project quality management
Let’s start with a story :
La Route du Rhum 2002
Only 3 sailers (upon 15) arriving at Pointe-à-Pitre !!!
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Project quality management
Quality management applies to :
- project activities
- and project results (deliverables, components)
to fulfil quality objectives.
The Deming Cycle
PLAN: Design or revise business process
components to improve results
DO: Implement the plan and measure its
performance
CHECK: Assess the measurements and
report the results to decision makers
ACT: Decide on changes needed to improve
the process
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Project quality management
Quality Planning. Identifying which quality standards are relevant to the
project, and determining how to satisfy them.
Quality Assurance (QA).
1) The process of evaluating overall project
performance on a regular basis to provide confidence that the project will
satisfy the relevant quality standards. 2) The organizational unit that is
assigned responsibility for quality assurance.
Quality Control (QC). 1) The process of monitoring specific project
results to determine if they comply with relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance.
2) The organizational unit that is assigned responsibility for quality control.
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Human resources
management
Agenda
Definitions
Project scope management
Time, quality, cost
Human resources management
Information management
Risk management
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Human resources management
As project is performed by humans,
Project management is human and organisation management.
• who decides ?
• who is responsible on ?
• who controls ?
• who takes benefits of ?
Complex projects are based on
complex organisations
Best skills for all complex
tasks worldwide
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Human resources management
Airbus Company has been created to provide airplanes
It has been created from Aerospatiale, British Aerospace,
CASA, DASA
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Human resources management
Is formalised in a Organisation Breakdown Structure (OBS)
A depiction of the project organization arranged so as to relate
work packages to organizational units
It shows which work components have been assigned to which
organizational units or persons.
Phase / Person
Requirements
Functional
Design
Development
Test
A
S
S
S
B
R
R
Responsibility assignment matrix
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C
A
A
R
S
S
D
P
P
A
A
P
E
P
F
…
P
I
I
P
A
P
P
P
P = Participant
A = Accountable
R = Review required
I = Input required
S = Sign-off Required
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Subcontracting management
Sub-contracting requires internal resources
for negociation and control.
Do not confuse : a subcontractor is not a partner
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Information
management
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Some tools (1)
Ensure message storage ?
Managing group lists ?
Impossible to share large files
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Some tools (2)
annotation and correction of documents
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Some tools (3)
Powerpoint
diapo
conférence
Chats
Microsoft
Netmeeting
Yahoo groups
Windows sharing,
shared blackboard
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Extended entreprising information system
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ENTREPRISES INFORMATION SYSTEMS
Commercial
Logistics
Production
Quality
Maintenance
E.R.P.
C.R.M.
S.R.M.
M.E.S.
A.P.S.
K. M.
K.B.E.
P.D.M./P.L.M.
Marketing
Design
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Industrialisation
Quality assurance
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Supplier
Sub-contractor A
Orderer
• deiversified technical products
• multi-sites, multi organisation
development and production
• development under time constraints
Sub-contractor B
Partner
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• physical flows
• information flows
• financial flows
• decision systems
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Engineering et communication situations
Space
Distant
Slides-conference
Visioconference
Internet, Intranet, PDM, PLM
Asynchronous
Same location
Synchronous
Time
Project location
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Information System
Organisations
Task 3
Task 2
Task 1
Tasks, processus
Files and Documents
Systems ?
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Donneur d ’ordres
Parameter :
Physical value
Unit
version
tolerance and gap
….
Partenaire rang 1
Partenaire rang 1
Equipementier
Organisations
Sous traitant
Liens explicites entre
paramètres, et objets
documentaires
Organisations, rôles
au sein des projets
Value evolution
1
4
2
Who do what ?
Who has done what ?
10
14
12
15
5
Value Evolution
Task 3
Files and Documents
Task 1
Réseau de Paramètres
Links between documents and
assemblies and systems
Quels systèmes ?
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Task 2
Tâches, processus
Link between
parameters,
functions,
items
Action
Exécution
Décision
Notification
Who is responsible on what?
Configuration managezment
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Engineering change management
Stage 1: EC Proposal
Engineering
Change Request
(ECR)
initialisation
–ECEngineering
Change management
ECR initialised
Notification
EC Pre-feasibility
Status
• Automatisation
du traitement des "Change Process"
studies
evolution
Engineering
Change
•Proposal
S'assurer
queECtoutes
les étapes approbation/qualité
ont
Impacts
Stage
2
:
EC
Investigation
(ECP)
feasibility
Push
étéofréaliséesand studies
documents
Selection &
– Document ReviewSolution
Definition
Files and Documents
Potentialsolutions
defined
Solution to be implemented &
• Router automatiquement
versAssociated
les "reviewers" (requis
Potential impacts assessed
documentation
ECO released
ou optionnels)
up-date
Documentation up-dated
solutionrévision
• Gérer les approbations
ou re-routerNew
pour
notification
Efficiency et Traçing
Stage 3 : EC Project
Embodiment
Management Presentation 2008
New solution
notified
New solution
embodiment
Solution
implemented &
notified
Documentation
up-dated
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Risk Management
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What is risk ?
Project risk is an uncertain event or condition, that,
if it occurs, has a positive or a negative effect on a
project objective (cost, time, quality).
A risk has a cause and, if it occurs, a consequence.
In risk management, probability and impact
(severity) of the risks are considered.
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References
•
•
•
•
•
•
Project Management Institute http://www.pmi.org/
An example of students project http://192.168.41.10/~tollenaere/e-commerce/
2PLM lettre bimensuelle http://www.johnstark.com/xzxzx.html dernière
édition sur http://www.johnstark.com/xzxzx.html
PDM Information Center, http://www.pdmic.com/
CIMdata, http://www.cimdata.com/
PDM enablers de l’OMG
http://www.omg.org/techprocess/meetings/schedule/PDM_RTF_1.5.html
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