510 N. Crosslane Rd. Monroe, Georgia 30656 (770) 266-6915 fax (678) 643-1758 Engineers Edge, LLC PDH & Professional Training Copyright, All Rights Reserved Engineers Edge, LLC Project Management Basics Project Management Basics is the sole property of Sound Mind Management Co. No part of this document may be reproduced in any fashion without prior written consent of Sound Mind Management Co. Copyright by Sound Mind Management Co. All Rights Reserved. For this product support: Email me at jameson@projectmanagementbasics.com Sound Mind Management 3/10/2005 Page 2 Program Management 15 Introduction Welcome and Congratulations! You are about to learn in about 30 minutes how to launch your career past the competition with Project Management Basics based on my 30 years experience. Book Format: • The writing will be concise and to the point: That is the engineer in me. • The process will be in cook book format. This means the book will be easy and logical to follow so you can easily apply. • The writing will be from a new product manufacturing organization perspective though the principles apply to any business. • The content will cover the basics. This book is not intended to be a Master’s Degree course. Book Content ­ This book is divided into two major parts • Part I – Technical Project Management ­ I will show you elements of a Project and how you must manage in order to be a success. If you refer to the next page, the Road Map to Success, the technical elements are shown above the Meeting Management box. • Part II – Meeting Management for the Project – I will show you how you can manage others to get work done faster, more accurate and with better results that can make you successful. Good luck­ Success is just 30 minutes away!! Sound Mind Management 3/10/2005 Page 3 Program Management 15 Road Map to Success Cost Start Here: Introduction to Project Deliverables Delivery Quality: 1. Defining your Product 2. Building Your Charter Quality Relationships of Quality, Cost and Delivery Cost: 1. Finding Your Costs 2. Contingency Cost Estimating. 3. Forecasting Risk & Opportunity. 4. Balancing Investment & Product Cost Delivery: 1. Locating your Milestones 2. Creating your Work Breakdown Structure 3. Developing your Project Schedule Meeting Management T h e Plan F o u n d a t i o n t o D e l i v e r i n g Conduct Purpose­ Focusing on the goal. Summarize Minutes­Writing the outcome Minutes to create action. Charts Agree to Process­ Delivering on the those actions Purpose Evaluate Personal­ Dealing with the Communicating results to others meeting needs of others. Sound Mind Management 3/10/2005 Follow Up next actions work. a b o v e Close Review the People­ Engaging others to t h e Thank team Page 4 Program Management 15 The Project Manager Project Management encompasses all of these aspects of the Project that you must manage and deliver. The business depends on you. Frankly, your career depends on you. If you cannot deliver the right product with the right features, with the right cost on time, eventually you will go out of business. Fortunately, you may be an expert in one of the functions you have to manage. Unfortunately, you are not likely to be expert in all the functions required to execute the Project. As a Project Manager you are expected to organize and direct a diversely skilled team. In today’s matrix managed world, the following team members will likely report to you for the specific Project at hand while these members still report to a their functional organization. A typical team likely includes the members or managers from the following functional areas: • Project Management • Engineering • Manufacturing • Purchasing • Finance/Accounting • Information Systems • Marketing • Sales • Warranty Each functional team member will have their own part of the Project to deliver. Project Manager’s manage all the deliverables. Sound Mind Management 3/10/2005 Page 5 Program Management 15 Part I – Technical Project Management Introduction to Understanding Project Deliverables Project Managers organize, lead and manage the team to achieve the three Project deliverables. These deliverables are: • Quality (Q) • Cost (C) • Delivery (D) Relationship of Quality ­ Cost ­ Delivery Delivery Cost Quality Quality, Cost and Delivery (QCD) are shown here as three sides of a triangle because each is interdependent on the others. By this I mean if you move one, the other is impacted. Let’s understand by a Sound Mind Management 3/10/2005 Page 6 Program Management 15 simple example of building a house. Pretend you have contract Klutz Construction to build your dream home. You have chosen the blueprinted plan, Klutz has quoted you a price of $250,000 and estimated 26 weeks to build and be ready for you to take possession. The Quality, Cost and Delivery of this project are: • The blueprints, specifications and site plan for the dream home. In other words the quality (Q) characteristics of the home. • The quoted price of $250,000, the cost (C). • The closing date of 26 weeks, the delivery or time (D). The house proceeds as planned until you and your wife walk through the partially framed home and you realize the kitchen is way too small and the adjoining dining room is generous in size such that you decide to move the wall over and to expand one room for the other. Klutz has dealt with many customers and is not surprised upon your physical inspection that you want to make a change. However, they also alert you that some rework will be required. After some study, Klutz calculates the cost of additional lumber. They also estimate the time to tear down the old wall and put up the new. This results in additional labor costs and requires the framing crew to stay longer on the job. The plumber is delayed from coming as scheduled. Klutz summarizes, asks you to sign a change request that states you will need to pay an additional $1000 to move the wall and that you agree to accept the one week delay of your closing date. Here is what happened in the QCD triangle on this project: • CHANGED: The original blueprint plan is the (Q) quality characteristics of the product but at your request has changed. • IMPACTED: The original quoted cost of $250,000(C) is the price you would have paid but now it will be $251,000. • IMPACTED: The closing date was 26 weeks now becomes 27 weeks. Sound Mind Management 3/10/2005 Page 7 Program Management 15