Project management in 60 slides

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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

Project Management Presentation 2008

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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

Manufacturing of the parts

General plant layout

Final

Assembly

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Project features (3)

Progressive elaboration

• 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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Cost and

Staffing level

Initial

Phase

Project Lifecycle

Intermediate

Phases (one or more)

Final

Phase

Start

Milestones :

• defined state of the project

• decision point

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Finish

Time

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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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Project Management Presentation 2008

Product scope management

PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE

HYDRAULIC

SYSTEM

• Bill of Materials

• FAST Diagram

• Structured tool that describes the product

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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 :

Customer needs description : simple, red, robust, with wheels

What the architect understands

What is finally developed

What is the manufacturer expected to do

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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

Start

A B E

Start

D F

C

Precedence diagram method ; A, B, C, D, E, F are activities

Finish

B

A

E

C

Finish

D

F

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.

Start

Start

A

C

A

C

D

B E

Critical Path.

The series of activities that

D F

Finish

B determines the duration of the project. In a deterministic model, the critical path is usually defined as those activities with float less than or

E

F

Finish 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

Initial

Phase

Final

Phase

Intermediate Phases

(one or more)

Start

The S – Curve of cost baseline

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Finish

Time

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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 A B C D E F

Requirements S R A P P

Functional

Design

S

S

A

R

P

A I

P

P

Development

Test

R S A P P

S P I A P

Responsibility assignment matrix

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

E.R.P.

Quality Maintenance

C.R.M.

Marketing

K.B.E.

S.R.M.

Design

P.D.M./P.L.M.

Industrialisation

M.E.S.

A.P.S.

K. M.

Quality assurance

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Sub-contractor A

Supplier

Orderer

Partner

• deiversified technical products

• multi-sites, multi organisation development and production

• development under time constraints

Sub-contractor B

• physical flows

• information flows

• financial flows

• decision systems

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Engineering et communication situations

Slides-conference

Visioconference

Space

Synchronous

Internet, Intranet, PDM, PLM

Asynchronous

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

….

Liens explicites entre paramètres, et objets documentaires

Files and Documents

Links between documents and assemblies and systems

Partenaire rang 1 Partenaire rang 1

Equipementier

Organisations

Value evolution

14

10

4

1

Sous traitant

Organisations, rôles au sein des projets

2

Who do what ?

Who has done what ?

5 12

15

Value Evolution

Réseau de Paramètres

Task 3

Task 2

Task 1

Tâches, processus

Quels systèmes ?

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Link between parameters, functions, items

Action

Exécution

Décision

Notification

Who is responsible on what?

Configuration managezment

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Engineering change management

Engineering

Change Request

(ECR)

Stage 1: EC Proposal

ECR initialised

• Automatisation du traitement des "Change Process"

studies

Notification evolution

Engineering Change

Proposal (ECP)

été réalisées and feasibility

studies documents

– Document Review

Selection &

Solution Definition

Stage 2 : EC Investigation

Solution to be implemented &

Potential impacts assessed ou optionnels) documentation up-date

• Gérer les approbations ou re-router pour révision notification

Efficiency et Traçing

New solution notified New solution embodiment

Solution implemented & notified 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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