Chemtura_3Day PM Basics for 2013_Speaker

Project Management

Basics

Jan Mahar Sturdevant

Professor of Practice

Jan Mahar Sturdevant - This document contains proprietary information that

shall not be distributed, routed or made available without the written permission of the author. Page 1

Project Management Basics

SCHEDULE


August 19

– 21, 2013

Day 1

1:00-

1:30PM

Company Opening comments / logistics:

Mike Trebotich

1:30-

2:00PM

2:00-

2:30PM

History of PM;

Strategic Importance

Selecting Projects via

Weighted Scoring M.

Pre-Initiation

Project Charter

2:30-

3:15PM

Systems View

Life Cycle

MPP: Proj Info

Break

3:30-

4:30PM

4:30-

5:30PM

Stakeholder Analysis

Project Integration

MPP: SAP-3_,,,

Process Groups

Phase Gates

Scope

Scope Mgmt Plan

Approaches

Break

6:00-

6:30PM WBS (mpp) file

6:30-

7:00PM

Turn in Excel file for

Review & Comments

Day 2

8:00-

8:45AM

Recap: share examples of participants’ deliverables

(Chemtura Speaker)

8:45-

9:45AM

Time

MPP IBM Picnic; Finalize

MPP file with Dependencie s

10-

11:00AM

MPP file with Durations

Constraints

11AM-

Noon

Lags / Leads

Critical Path

Break

1:00-

2:00PM

Cost

Estimate

Budget (Financials)

2:00-

3:00PM

MPP: Cost Table in

CSS_Training_Manual

…

Break

3:15-

4:30PM

4:30-

5:00PM

Cost

Control: Earned Value

Tracking

Turn in MPP file for Review and Comments

Day 3

8:00-

8:45AM

Sharing of project experiences

(Chemtura Speaker)

8:45-

9:45AM

Quality

Pareto Chart (in Excel file)

10-

11:00AM

11AM-

Noon

Human Resources

RAM (in Excel file)

MPP:CSS_Training_Manual

MPP file with

Resource Pool

Custom Calendar

Break

1:00-

2:00PM

Risk

Risk Register

PI Matrix

Risk Mitigation Plan

2:00-

3:00PM

Communication

Communication Matrix

(in Excel file)

Break

3:15-

3:30PM

3:30-

4:00PM

Baseline & Tracking

Filtering & Reporting

Create Report

Wrap up – Summarizing Key

PM Knowledge Areas




PROFESSOR OF PRACTICE AND CONSULTANT

Jan Mahar Sturdevant blends her careers in both business and academic worlds. She had a very successful business career with IBM having held positions in their laboratory, manufacturing, statistical modeling research and the 3-D graphic corporate office. She was responsible for designing and delivering courses in project management, programming languages and SAP

Logistics. She was also a project management consultant designing and educating both clients as well as company management. She has provided consulting for the e-business which included web-requisitioning for catalog buying, courses for e-business training, and developing solutions to optimize contractors’ bids and contracts.

She transitioned into academic area as the Assistant Director of Business & Career Solutions responsible for providing strategic leadership and business planning for the Information Sciences and Technology (IST) College at the Pennsylvania State University. She re-engineered many business processes to improve IST’s overall efficiency.

Currently, Jan is a Professor of Practice at the College of Information Sciences and Technology

(IST). She is responsible for designing and teaching a series of project management courses for audiences ranging from undergraduates to executives from major corporations. She has worked with Lockheed Martin, IBM, Accenture, Capital One, Saint Gobain, PwC, KPMG, and BAE.

She is certified as a Project Management Professional (PMP) from the Project Management

Institute and also holds an IT Project+ Certification in Project Management. She received her master’s degree in Operations Research/Management from Union College in Schenectady, New

York. She completed her bachelor of science in mathematics from Grove City College in Gove City,

Pennsylvania.

Aside from her teaching and consulting, Mahar is active in large scale project management. She is currently involved with the Department of Energy Greater Philadelphia Innovation Cluster (GPIC), working with a Project Management Team to design/lead process for managing this project with over 22 partners from academia and corporations. Additionally she has managed over $6 million dollars of projects for the Department of Defense.

She is frequently called upon as a guest speaker and presenter in Project Management and has done work for public and private corporations as well as for non-profit associations



Agenda

o Introductions o History / Strategic Importance o Selecting Projects o Process Groups & PMP Toolset o Knowledge Areas

• Stakeholder

• Integration

• Scope

• Time

• Cost

• Quality

• Human Resources

• Risks

• Communications



History and Strategic

Importance



What Do We Expect from our PMP?

o PMP Process that Enables:

• Effective Risk Management

• Process Discipline

• Efficient Communications

• Strategic Alignment o PMP Process that Delivers:

• Reduced Costs

• Prioritized Resources

• “No Surprises”

• Process Robustness

– Right-First-Time



Definitions

o

What is a Project (vs Process)

• Temporary

• Has a unique purpose

• Involves uncertainty

• Requires resources

• Should have sponsor

• Ends when objectives met o

Project



Program



Portfolio



History

o

Project Management

• History (Manhattan Project)

• Accepted as an industry standard

• Project Management Institute (PMI)



Strategic Importance

(CHAOS from Standish Group International)

1994

1996

1998

2000

2004

2006

2008

0% 20% 40% 60% 80% 100%

Succeeded

Failed

Challenged



Strategic

Importance

o Why care?

• Total global spending on tech, goods, services & staff:

– $3.6 trillion in 2011

– 6% increase from 2010 o Advantages of Project Management

• Better control

• Improved customer relations

• Better internal coordination

• Higher work morale

• Higher profit margins & quality

• Shorter times & lower costs



Quantifying Project

Parameters

Time

CPM

Cost

EV

Scope

WBS



Why Projects Fail …

1.

Client Involvement

2.

Poorly Defined Requirements

(Scope changes, Incomplete WBS, Cost Estimates)

3.

Lack of Top Management Support

4.

Poor Management

(Resources, Data collection, Underestimate scope,

‘Team ‘spin-up’, Implementation needs)

5.

Project team Responsibilities

(Three-Sphere Model of Systems Management)

6.

Personnel Issues

(Attendance, Stakeholders , Project Manager Skills)

7. Unrealistic Expectations



Challenges …

(CHAOS from Standish Group International)



Selecting Projects



Strategic Planning and

Project Selection

Strategic planning involves

• Determine long-term objectives

• Predict future trends

• Project need for new products / services

VIA

• Perform a SWOT analysis

• Identify potential projects

• Use realistic methods to select project

• Formalize project initiation by issuing a project charter



Methods for Selecting

Projects

Since there are usually more projects than available time and resources to implement them …

Methods for selecting projects include:

A. Focus on broad organizational needs

B. Categorize projects

C. Perform net present value or other financial analyses

D. Use a weighted scoring model

E. Define / update a business case



A. Focus on Broad

Organizational Needs

o While sometimes hard to provide strong justification for many projects, everyone agrees they have a high value

• “It is better to measure gold roughly than to count pennies precisely” o Three important criteria must exist:

• A need for the project … consider organization’s mission and vision

• Funds available

• A strong will to make the project succeed



B. Categorize Projects

• Whether the project addresses

– a problem

– an opportunity, or

– a directive

• How long it will take to do and when it is needed

• Overall priority of the project



C. Perform Financial

Analysis of Projects

Financial considerations are often an important consideration in selecting projects

Three primary methods for determining the projected financial value of projects:

o Net present value (NPV) analysis o Return on investment (ROI) o Payback analysis



Financial Analysis Example

Chemtura uses “Cost of Capital” as the “Discount Rate”

Information Technology Project Management, Seventh Edition



D. Use a Weighted

Scoring Model

A tool to logically select projects: o Define criteria: assigning each a ‘weight’ of importance o List potential projects: filling in a value for how much this project meets each criterion o Calculate each project’s weighted score

(Information Technology Project Management, Seventh Edition)

Exercise: Build a WSM for the projects on your radar.



E. Define / Update a Business Case

Project Manager conducts a business case via: o Clearly defines & effectively communicates common critical aspects of a project with the team o Asks the same “questions” of each unique project.

o Determines which business case elements fit the project and which do not .

o Contains business case elements available in PMP:

 Demand trends

 Economics

 Competitor position

 Our competitive position

 Key assumptions

• What assumptions or references were used in assessing the business case factors above?



E. Business Case Elements

Demand trends (immediate downstream target market)

• How large has market been for previous periods?

• How large will market be for next several periods?

• What market or industry factors have the potential to change future demand for better or worse?

Economics: What is the competitive landscape ?

• Number of suppliers

• Existing capacity utilization

• Existing market pricing

• Competitive production costs

• Our anticipated price and cost

• How these factors might change in the future?

Competitor’s position

• What are strengths & weaknesses for each threat?

• How are these expected to change ?

Project’s competitive position

• How well do we meet our target market requirements compared to competition?



E. Business Case Tip

REMEMBER:

The business case is a living document that should be reviewed and updated any time the circumstances surrounding these business case elements have changed.



Process Groups and

PMP Toolset



Process Groups

( as per Project Management Institute)

( Information Technology Project Management, Third Edition )

Process groups can be found WITHIN any or all

Life Cycle Phases … depending on the project.



What is Phase Gate

A structured, multi-step process that requires specific activities (Phase) and decisions (Gate) during project.

o Ensures appropriate actions are taken at the right time within the life cycle of the project, and that conscious Go/No Go decisions are made at critical milestones to ensure that resources are being used efficiently.

o A project’s life

• Begins with a decision to proceed with an idea from the portfolio of opportunities & the creation of a project charter

• Ends or is put on hold when:

• It is fully commercialized and turned over to those responsible for day-to-day execution

• Gate review concludes that cost/benefit ratio, or risks to the Business, do not support continuation of activity o During the process, Key Deliverables are specified at each phase to ensure that the appropriate questions are asked, or appropriate analysis is completed.



Phases and their Gates

1

2

Phase

Initiation

Definition

Description

Develop preliminary business case, and rough order of magnitude cost & financial estimates

Define project with refined business case, factored cost estimates and financial benefits, and preliminary schedule

3

4

Feasibility /

Planning

Design

Determine feasibility, and conduct detailed project planning with established Baselines on scope, financials and schedule.

Develop small-scale process/system and validate design principals

5 Build / Test Build and test process/system at full scale.

6 Commercializat ion /

Deployment

Implement commercialization plan and launch commercial production. Safe handover to

Operations.

Closing Post Mortem

Audits

Phase Gate applied to six project categories o Capital Investments o New Product Development o M&A o Divestitures o Enterprise o IT



Project Categories and Key

Deliverables

Each project category will have a unique set of deliverables.

Example – Capital Investments

PHASE

1 Initiation

2 Definition

3 Feasibility and

Planning

4 Design

5 Build and Test

DELIVERABLES for the Capital Investments CATEGORY

VOCs (Internal and external) Preliminary Business case

Strategic analysis Preliminary Risk Assessment

Project charter and preliminary scope Gate Review Deck

Rough order of magnitude Cost Estimates (+/- 50%-100%)

Updated business case Preliminary Financials

Technology evaluation (including IP assessment) Updated Risk Assessment

Conceptual design (Block Flow Diagram Stakeholder Analysis and initial EH&S assessment) Preliminary Schedule

Factored cost estimates (+/- 30%-70%) Gate Review Deck

Finalized business case CAR (+/- 20%)

PHA 1 report Baseline Financials

Site plot plan Updated Risk Assessment

Procurement Plan & Contract Strategy Baseline Schedule

Preliminary Design Review Project Definition Assess

FEED Gate Deck Review

Capital Estimate Summary

Detailed Engineering EPC Contracts Review

Final Design Review

PHA 2 report Updated Risk Assessment

Finalized EPC contractors Updated Schedule

Updated financials Gate Review Deck

PHA update Updated Schedule

Procurement and construction Operational Readiness

Assessment

EPC and cost control plan Pre-Start-Up Safety Review

(PSSR)

SOP Shake Down Test Results

Analysis

Updated financials Gate review Deck

Updated risk assessments

6 Commercialization Start up report Production Ramp Up Plan

Performance test results Gate Review Deck

Process capability validation to meet customer requirements



Project Closing

Involves stakeholder and customer acceptance of the final products and services via the following: o Acceptance Test (Internal & External) o Dealing w Late Requests

• Will new request cause a H20-fall effect?

• Will contract be extended?

o Formal Signoff (after acceptance test & typically at an acceptance review meeting)

• ~ to a contract w signatures & dates

& completion declaration o Ceremonial Acceptance = celebrate Done w team & perhaps Clients

• Final Report & Presentation to sponsor and senior management



Post Mortem

Organizational process assets:

[even if project not completed] o Project files o Lessons-learned reports

• Measures of success

• Root cause analysis o A Retrospective

• Similar to a lessons-learned report, but it focuses on a shorter period of time.

• Answers 2 fundamental questions:

– What went well during the last sprint that we should continue doing?

– What could we do differently to improve the product or process?



Key Metrics to be Considered in Post Mortem Review

Strategic Fit and

Importance

• Does the project provide a strategic fit to our business strategy as planned?

• What is the strategic impact (current and outlook)?

Scoping and

Planning

• Did we scope and plan the project well (in terms of market research, VOC, strategic partnership and capital requirements etc.)

Project

Execution

Product performance

Profit vs.

Forecast

• Did we execute the project in a quality fashion?

• What are the key customer feedbacks to our product performance?

• Have we delivered product, performance & quality as targeted?

• Do we hit our target on profitability, and what & where are the gaps?

• Are we improving our market share or penetrating new markets as planned?

Actual budget vs.

Planned budget

• Are we on-target, under-spent or overspent on the project?



Key Components of the

PMP Toolset Form

Initiation

Stakeholder

Analysis

Risk Assessment

Update

Charter

Business Case

Financials

Gate Review Ck List

Reporting



Recommended Criteria*

Minimum Impact Levels where PMP process must be utilized in 2013

Project

Category

Trigger Description

Capital

Expenditure

New Product

Development

>$1.0M Growth

>$1.0M

Sustaining

Capital + incremental project expense

>1% of prior year BU

Revenue

Projected annual revenue @ 3 rd year of commercialization

IT / Strategic

Enterprise

>$1M Functional Initiatives

Non-Sustaining capital

*

BU and Functional Leaders can expand as needed



Initiating PMP Toolset Form

http://sp.chemtura.com/sites/spm/pmp/Toolset%20for%20PMP/Forms/PMP%20V iew.aspx

1.

1. Access “Tool

Set”

2.

2. Open blank form.



PMP Toolset Structure

General project information

Charter details,

Capital information

Document

BU Case and capture changes / impact as project progress

Maintain current progress of project;

Project Plan;

Identify gaps in project phase timing

Identify key project resources with potential impact to project success / failure

Determine / prioritize risks and determine action plan

Financial information regarding project economics

Check lists for project category and phase

Standardize

Reporting

Templates

• Depending on project category & Phase - the form changes to show specific requirements

• Gate Review Deck & Strategic At-a-Glance summary can be generated directly from the PMP toolset

• Needed templates are available from within the form

• Supporting documents will also be embedded into the toolset.



Basic information about the project

These field drive some of the form’s functionality



Project Charters and

Kick-off Meetings

• Charters are normally short and include key project information and stakeholder signatures

• It’s good practice to hold a kick-off meeting at the beginning of a project so that stakeholders can meet each other, review the goals of the project, and discuss future plans.


Technology Project

Management, Seventh

Project Charter

Objective (What)

SMART

Key Drivers

/ Value Proposition

(Why)

Approach (How)

Deliverables

Metrics

Scope

In Scope

Out of Scope

Resources (Who)



Project Charter

•CAPTIAL / CAR information (if applicable)

Who Produces the Project Charter?

• Project Manager/ Team

When to create Project Charter in PMP?

• Initiation Phase



Kick-off Meeting Agenda




Business Case in PMP Toolset

Your original business case definitions typically go in Gate 1

As your project progresses, you report changes in definitions in future gates

For gates beyond gate 1, you use the “traffic signal” to indicate whether circumstances have gotten better or worse



Knowledge Areas



PMI’s

Knowledge Areas …


Which area presents the biggest challenge in your project?



Stakehold er

Process Groups /

Knowledge Areas

PMBOK 3

Closing Initiating Planning Executing Monitor /

Control

Identify

Stakeholders

Plan

Stakeholder

Management

Manage

Stakeholder

Engagement

Control

Stakeholder

Engagement

Integration Develop

Project

Charter,

Prelim Scope

Statement

Scope

Time

Cost

Quality

HR

Commun.

Develop

Project Mgt.

Plan

Scope

Planning &

Definition;

Create WBS

Activity

Definition;

Sequencing;

Resource Est;

Schedule

Dev.

Cost

Estimating &

Budgeting

Quality

Planning

HR Planning

Communicati ons Planning

Direct &

Manage

Project

Execution

Risk

Procurement

Identification:

Qualitative &

Quantitative

Analysis; Risk

Response

Plan

Plan

Purchases &

Request

Seller

Monitor &

Cntl Project

Work

Close Project

Scope

Verification &

Control

Schedule

Control

Cost Control

Quality

Control

Manage

Project Team

Performance

Reporting;

Manage

Stakeholders

Risk

Monitoring &

Controlling

Contract

Administratio n

Contract

Closure

Format of Handout

(for Discussion of Knowledge Areas) o Process ‘n’

• Inputs

• Tools / Techniques

• Outputs

• Exercise o Process ‘n +1’

• Inputs


• Outputs

• Exercise o ….

o ….

o Pitfalls

All processes are from PMI’s PMBOK .



Stakeholders

(Knowledge Area)



Stakeholder

o

Processes

• Identify Stakeholders

• Stakeholder Register

• Plan Stakeholder Management

• Stakeholder Mgmt Plan

• Project document updates

• Manage Stakeholder

Management

• Issue log, change requests

• Updates to plans and documents

• Control Stakeholder

Management

• Work performance info, change requests, Updates



Stakeholder

Management

Project Stakeholders -

People who have a stake in the project and can potentially impact its development either positively or negatively .

Project Sponsor

Champion

Competitor

Customer

Project Manager

Project Team

Upper Management

Resource / Line Mgmt

Stakeholder Register includes details related to project’s stakeholders

Stakeholder Management Strategy an approach to help increase the support of stakeholders.

• Defines influence, impact, attitudes & interests

• Ensures everyone is on the same page and working towards the same goal.

• Ensures that your project is supported and understood across the organization.



The Project Sponsor

Role of the Project Sponsor?

– Liaison between senior management and project team

– Separates the politics from the work of the project

– Provides the financial resources



The Project Manager

o o o

The role of the Project Manager?

Communicate with Sponsor

Manage the project management process

Communicate and coordinate with project participants o o o o

Qualifications for a Project Mgr?

Has support and trust of management

Has PM experience and knowledge

Has enough technical qualifications not to get fooled

Can get trust and support of a wide variety of participants



Project Manager’s

SH Responsibilities

• Define as internal SHs (executives or external SHs (customer)?

• Define their roles & responsibilities/expectations of project?

• Identify those who care about the outcome of your project.

Define their Interest (attitude towards the project)?

Define their Power (level of influence) on the project?

• Create Power / Interest map to manage Stakeholders

• Communicate, communicate, communicate!



Stakeholder Analysis

Let us go into the PMP toolset – Keystone as an example

Access to Communication Plan Template



Stakeholder Register

Stakeholder

Management Strategy

Deliverable for Definition Phase of your project.

Exercise: You build these for your work project.



Integration

(Knowledge Area)



Systems View:

Three-Sphere Model

3 Sphere Model of Systems Management:

Information Technology Project Management, Fifth Edition



Frames of Organization

1.

Structural frame on roles & responsibilities, coordination and control. Organization charts help.

Functional

Project

Matrix

Information Technology Project

Management, Fourth Edition

2.

Political frame is on coalitions.

Conflict & power are key issues.

3.

Human Resources frame on needs on organization in harmony with people.

4.

Symbolic frame on meanings related to events.

Culture is important.

Which Structure are you in?



Organizational

Structure Influences

Project

Characteristics

Project manager’s authority

Percent of performing organization’s personnel assigned full-time to project work

Who controls the project budget

Project manager’s role

Organizational Structure Type

Functional Matrix

Weak Matrix Balanced

Matrix

Little or none Limited

Virtually none 0-25%

Strong

Matrix

Project

Low to

Moderate

Moderate to high

High to almost total

15-60% 50-95% 85-100%

Functional manager

Functional manager

Mixed Project manager

Project manager

Part-time Part-time Full-time Full-time Full-time

Common title for project manager’s role

Project

Coordinator/

Project Leader

Project

Coordinator/

Project

Project

Manager/

Project

Project

Manager/

Program

Project

Manager/

Program

Leader

Project management administrative staff

PMBOK



Guide, 2000 , 19, and PMBOK



Guide 2004 , 28.

Officer Manager Manager

Part-time Part-time Part-time Full-time Full-time



Scope

(Second Knowledge Area) o Build a Fence around your deliverables



Scope

o

Processes

• Collect Requirements

– Reqts Traceability Matrix

• Define Scope

– Scope Management Plan

• Create WBS

– Work Packages

• Verify Scope

– Accepted Deliverables

• Control Scope

– Requested Changes, Actions



COLLECT

Requirements

o Process

• Inputs

– Stakeholder Register

– Project Charter


– Interviews

– Focus Groups, Facilitated Workshops

– Questionnaires, Surveys

– Observations

– Prototypes

• Outputs

– Requirements Traceability Matrix



DEFINE Scope o Process

• Inputs

– Project Charter

– Scope Management Plan


– Stakeholder Analysis

– Templates, Forms

– Expert Judgement

• Outputs

– Updated Scope Mgmt Plan



Scope Planning

Five Attributes of a Well-defined Project Scope

(SMART)

–

S pecific

–

M easurable

– A greed to

– R ealistic

– T ime Oriented



Create the Charter &

Scope Document

Project Scope

– Provides a common understanding among stakeholders

– Simple concise statement of the project work

Exercise: Build one for any work project that is beyond

‘Initiation’ process group / ‘Concept’ phase.



CREATE WBS o Process

• Inputs

– Updated Scope Mgmt Plan

– Requirements Documentation


– WBS Template

– Decomposition

• Outputs

– WBS

– WBS Dictionary

– Scope Baseline



WBS Approaches o Analogy o Top-Down o Bottom-up o Mind-Mapping

Manage Project

Inventory

Building A

IT

Upgrade

Acquire new Hdwe & Software

User Hdwe

Desktops

Laptops

Building B

In-Class Exercise: Build a WBS for a vacation house (MS Excel) using Chemtura’s 6 phases:

Initiation, Definition, Feasibility/Planning,

Design, Build/Test, Commercialization / Deployment



WBS Decomposition

Develop Software

Product Release 5.0

Use

Project

Manage ment

Define

Product requirem ents

Develop

Detailed

Design

Execute

Constru ction

Do

Integrati on and

Test

Four major steps in WBS decomposition:

1.

Identify major elements of project

2. Decide whether adequate cost and duration estimates can be developed at this level of detail

3. Identify elements of the deliverable in terms of tangible, verifiable results to facilitate performance measurement

4. Verify correctness of the decomposition

In-Class Exercise – DOD Advisors re: War

Geography, Interface, User Group, Benefits



• Establish Milestone

Requirements

• Definition of a milestone:

– Key event or deliverable

– Primarily used tracking, billing & communications

– Has no duration

– Does not contain “action” verb

– Can be a Gate

– Can be a Kill Point

• Considerations for milestones:

– Deliverables that people expect

– Deliverables that you depend upon

– When key decisions have to be made

– Phases that are tracked

– Standardizing your milestones



VERIFY Scope o Process

• Inputs

– WBS / WBS Dictionary

– Requirements Documents

– Deliverables


– Inspection

• Outputs

– Accepted Deliverables

– Change Requests



Gate Review Checklist on PMP Toolset



CONTROL Scope o Process

• Inputs

– Work Performance Indicators

– Outputs from other Processes


– Change Control System

– Variance Analysis

• Outputs

– Updates

[Later in training we will use tracking to see gaps to better control scope & time.]



Gate Review

Attendance & Approval

Matrix

Enterprise CAPx NPD M&A Divesture IT

Attend Gate Reviews Participants Participants Participants Participants Participants Participants

Project Manager X X X X X X

Project Core Team

BU General Manager

Corp Capital Manager

Finance

Technology

Legal

HR

Procurement

Supply Chain

EHS

IT

Group President

O

X

X

Y

O

O

O

Y

X

X

X

O

O

Y

X

Y

O

O

Y

X

Y

O

O

O

Y

O

O

O

O

O

O O

Y

X

Y

Y

X

Y

X

Y

X

O

Y

X

Y

O

X

Y

Y

X

Y

X

O

O

Y

X

O

Required Approval

Required attendance

Optional (depending on projects)

X

Y

O



Scope Pitfall

MYTHS

(from "Information Technology Project Management“; Jack T. Marchewka)

1.User involvement will result in an IT project grounded in realities of the business needs.

2. A scope statement will clearly define what a project will do.

3.Once the scope of a project is defined, hold firm because any deviation from the original plan is a sign that the project is out of control.

4. Regular and frequent meetings with senior management will ensure they are kept up to date and will result in goodwill and support.

5.You can always make up schedules and budgets later on if they slip a little bit.



Scope Pitfalls

Types of “CREEP”

o

Scope Creep vs ‘Plusing’ o Feature Creep

(from http://www.alistapart.com/articles/scopecreep) o Hope Creep o Effort Creep



Time

(Third Knowledge Area) o ‘Time’ has least amount of flexibility o ‘Time’ is easiest to measure



Conflict Intensity over

Project’s Life Time

( Information Technology Project Management, Third Edition )



Individual Work Styles

( http://bloginality.love-productions.com/ )



Individual Work Styles

You need to be aware of yours & your stakeholders’

“Environment” to manage a successful project!



Cultural Differences

o Hours in a work day (by country) o Holidays (by country)

In-Class Exercise:

List differences that could impact our project.



Time

o

Processes

• Define Activities

– Activity List / Attributes

– Milestones

• Sequence Activities

– Network Diagrams

• Estimate Activity Resources

– Resource Requirements

• Estimate Activity Durations

– Duration Estimates

• Develop Schedule

– Baseline

• Control Schedule

– Updates



DEFINE Activities

o

Process

• Inputs

– Scope Baseline

– Scope Statement/Plan

– WBS & WBS Dictionary


– Decomposition

– Rolling Wave

– Expert Judgment


• Outputs


– Milestones



Activity Definition

o Activity List

•

Begin with an action verb

• Show Identifier’s Outline Number

• Hierarchical structure

• To correct level of detail

• No parent should have only one child

• SMART Milestones

–‘ S’pecific detail to clarify what is meant

– ‘M’easureable to clearly see project’s timeline

– ‘A’ssignable to 1 accountable person

– ‘R’ealistic and achievable

– ‘T’ime-framed with a completion date o Activity Attributes

•

Predecessors / Relationships

•Lag / Lead

• Constraints (Hard and Soft)



SEQUENCE

Activities o Process

• Inputs


– Milestones


– Dependencies

– Diagramming Methods

– Precedence (PDM)

– Arrow (ADM)


• Outputs

– Network Diagrams



Dependencies

o Reasons

• Mandatory (Hard Logic)

• Discretionary (Soft Logic)

• External o Types

• Finish to Start (FS)

• Start to Start (SS)

• Finish to Finish (FF)

• Start to Finish (SF)



‘FS’ Dependency Table

•Dependency Diagram Based on Dependency Table

•A •B •E

•C •D

C’s predecessor is A

A Dependency Table

Task Predecessor Successor

C

D

E

A

B none

A

A

C

B,D

B, C

E

D

E

None



Activity Sequencing

Building the task schedule involves:

– Documenting dependencies’ lowest level tasks

– Estimating durations

Benefits of Building a Task Schedule

– Calculates when each task can start and finish

– Calculates the time to finish the project

– Provides a road map of how you do the work

& ‘what-if’ scenarios

– Shows where you can perform work in parallel



Diagramming Methods

( Information Technology Project Management, Fifth Edition )

PDM

AOA



Terms used In Precedence

Methodology

Dependency Diagram Based on Dependency Table

A B •E

C D o o o o o

Predecessors

Successors

Serial Tasks

Parallel Tasks

Dangling Tasks



ESTIMATE Activity

Resources o Process

• Inputs


– Resource Availability


– Expert Judgment

– Bottoms-up Estimating


• Outputs

– Activity Resource Requirements

– Resource Breakdown Structure

(grouped by type/ category)



ESTIMATE Durations o Process

• Inputs

– Resource Requirements

– RBS

(grouped by Type / Category)

– Resource Calendar


– Expert Judgment

– Types of Estimating


• Outputs


– Activity Attribute Updates



Techniques for Estimating /

Refining Task Durations

Historical

Duration

Refined

Duration

Duration

Components

– Expert judgment from past experiences

– Top-Down Estimating

– PERT: Performance Evaluation & Review Technique

– Simulation

– Metrics



Defining DURATION

o Duration vs Effort

• Duration: defines Schedule

= calendar (elapsed) time

• Effort: defines Cost

= work hours o Estimating Types

• Analogous

– From previous projects

• Parametric

– Linear extrapolation

• 3-Point

– (P) + 4 * (Avg) + (O)

6

– Used for Monte Carlo simulations



DEVELOP Schedule o Process

• Inputs

– Activity List & Attributes

– Resource Reqts & Calendars



– Critical Path

– Resource Leveling

– What-if scenarios, Lag/Lead


• Outputs

– Project Schedule with Baseline



CONTROL Schedule o Process

• Inputs

– Work Performance Information

– Project Schedule


– Performance Reviews

– Variance Analysis

– Resource Leveling

– Compression

Crashing / Fast Tracking

• Outputs

– Change Requests

– Work Performance

Measurements



Critical Path EXERCISE

Diagram this project using ADM or PDM

1. What is the critical path?

(Use Activity's letters to describe the path.)

2. What happens to your critical path if the polishing machine is backed-up and your part is delayed by 3 days? Explain.

3. As the project manager, what risk mitigation strategies could you employ to reduce the likelihood of a polishing machine delay?

4. What happens to your critical path if the arrival for Material 1 is delayed by 5 days? Explain.



Gantt Charts



Time Pitfalls

o Estimating Durations o Tracking Actuals

• Percent complete

• Multiple baselines o Reacting with ‘what ifs ’



Time Exercise

Enhance either project -

‘Build a Vacation House’ or your Work current Project

o Enhance WBS with:

• Begin with a verb

• Have an Identifier / Number

• Hierarchical

• Milestones

• Use PMI phases or SG stage/gates o Add columns for :

• Estimating Durations

• Create Dependencies

• ‘Predecessor’ Column

• Use FS and one other type

• Show ‘critical path’



Cost

(Fourth Knowledge Area)

Difficulties in Budgeting o Scope not clearly defined o Gathering complete user requirements o New technologies emerge in midst of project o PMgrs’ interest is in Technology aspect, not Cost



Cost

o Processes

• Estimate Costs

– Activity Cost Estimates

– Assign Resources to Tasks

• Determine Budget

– Cost Performance Baseline

– Funding Requirements

• Control Costs

– Enter Actuals

– Work Performance Measures

– Budget Forecasts



A Software Defect’s

Cost

When

Discovered

Requirements

Code & Unit Test

Integrate &

System Test

Beta Test

Post-Release

Relative Cost to Repair

$ 1

$ 5

$10

$15

$30



Categories of Cost

o Tangible Benefits o Intangible Benefits o Direct Cost o Indirect Cost o Sunk Cost



ESTIMATE Costs

o

Process

• Inputs

– Scope Baseline

– Statement/Plan

– WBS & Dictionary

– HR Plan

– Risk Register


– Analogous / Bottom-up /

Parametric Estimating

– Cost of Quality

– Vendor Bid Analysis


– Outputs

• Activity Cost Estimates

• Basis of Estimates



Types of Costs

o Capital

• Labor, Materials, Equipment o NonCapital (‘Out of Pocket’, Expenses)

• Travel & Entertain, Consultant

( mpp’s Resource Sheet and Gantt Chart)



Cost Considerations

o Types for Chemtura Capital projects

• ROM 3-5 yrs +/-50-100%

• Factored Cost 1-2 yrs +/ 30-70%

• CAR < 1 yr +/- 20% o Resource Pool

• By category vs Name o Tools / Techniques

• Analogous

• Bottom-Up

• Parametric

How measure Software Code?



DETERMINE Budget

o

Process

• Inputs

– Scope Baseline

– Activity Cost Estimates

– Resource Calendars

– Contracts


– Cost Aggregation

– Reserve Analysis

– Historical Relationships

– Funding Limit Reconciliation

• Outputs

– Cost Performance Baseline

– Requested Changes



CONTROL Costs

o

Process

• Inputs

– Funding Requirements



– Earned Value Management

– Performance Reviews (CPI, SPI)

– Forecasting (EAC w ETC vs BAC)


• Outputs

– Budget Forecasts


Measurements to complete

– Performance Reviews

– Change Requests



Performance

Measurement Analysis

o Earned Value

 Integrates Scope, Time, Cost

• ‘ How’s Cost going given the Schedule?’

• ‘How’s Schedule going given the Cost?’ o Formulas

• PV: Planned Value

• AC: Actual Cost … spent to date

• RP: Rate of Performance

• EV: Earned Value … of specific work by a specific date.

• VAC= BAC- EAC o Negative Numbers are ‘bad’



Project Financials

Project Economics determines financial drivers / feasibility of a project & provides decision support

4 key components in Project Financials in PMP:

• Key financial assumptions

• NPV analysis with projected P&L

• Gap Analysis

• Sensitivity analysis

Who / When to establish Project Financials in PMP

• Project Mgr / Finance Manager are responsible.

• Start to establish preliminary project financials with rough order of magnitude estimates in

Initiation Phase

• The Project Financials is a living document that should be reviewed & updated throughout the project duration.




Standardized Project Financials Template by Business Finance

•Versioning based on date

•Detailed

Financials spreadsheet




Cash Flow Chart Generated from P&L

Positive net CF

Breakeven

Point




Key Financial Data Captured at Each Gate

Project Expense Tracked

Project cost center should be set up in SAP to track project expense

Gap Analysis Enabled – Generated in Gate Report




Sensitivity Analysis Needed for Strategic Projects



Cost Pitfalls

o Recognizing “Lucky” and “Lousy” o Why go with COTS software?

(Commercial Off-The Shelf) o Overruns

• Communicating

• Understanding o Not use Earned Value Mgmt o Law suit potentials



Cost Exercise

You are construction 6 additional rooms in your vacation house. Each of the rooms are identical and the projected cost is $100,000 and is expected to take 5 weeks..

At the end of the 2 nd week, two rooms are finished & you have spent

$17,500 per room.

How is your 'project' going at the end of 2 weeks?

What is the BAC?

What is the PV?

What is the EV?

What is the AC?

What is the CV?

What is the SV?

What is the CPI?

What is the SPI? o Based on the work so far, what is the EAC? o Based on the work so far, what is the Estimated

Time to Complete? o Should you continue your project? Why?

Scope Time Cost

Plan

Actual



Cost Exercise

Imagine you have successfully landed your dream job. You are having your first

Boston Marathon Party & you want to impress your friends by having high definition TV screens and a surround-sound systems in the four main rooms of your house. Your salary has gone to your head and you decide you require a custom installation for each room. You seek a local contractor for an estimate.

The plan:

4 weeks & $8,000 for an expert to custom install the system.

You OK the work.

What happens:

After 3 weeks you are checking up on your expert installer.

He has completed 1 room and has spent $4,000 of your money.

How is your TV 'project' going at 3 weeks?

What is the BAC?

What is the PV?

What is the EV?

What is the AC?

What is the CV?

What is the SV?

What is the CPI?

What is the SPI? o Based on the work so far, what is the EAC? o Based on the work so far, what is the Estimated Time to

Complete? o Should you continue your project? Why?

Scope Time Cost

Plan

Actual



Quality

(Fifth Knowledge Area)

• Why do you think public accepts poor quality in exchange for faster innovation?



Defining QUALITY

o International Organization for Standards (ISO)

• ISO 9000:2000

– “Quality is the degree to which a set of inherent characteristics fulfills requirements”

– Includes 3-part continuous cycle

Planning  Controlling  Documenting o Conformance to Requirements

• Project meets written specs o Perform Quality Assurance

• Product used as intended; Fit for Use

 Customer defines Quality

• Boston’s tower clock

In-Class Exercise



Quality

o

Processes

• Plan Quality

– Metrics

– Checklist

• Perform Quality Assurance

– Requested Process Changes

• Perform Quality Control

– Control Measures

– Validated Defect Repair



PLAN Quality

o

Process

• Inputs

– Scope Baseline

– Stakeholder Register

– Risk Register


– Design of Experiments

– Benchmarking

– Cost-Benefit Analysis

– Statistical Sampling


• Outputs

– Quality Mgmt Plan

– Metrics & Checklists



PLAN Quality

o Anticipate situations & prepare actions o Try to prevent defects by

• Select proper materials

• Train / Indoctrinate people in

Quality

• Ensure appropriate outcomes with kill points in process o

Trying to outrun Walmarts



PERFORM Quality

Assurance

o

Process

• Inputs

– Quality Mgmt Plan

– Metrics & Checklists



– Quality Audits

– Process Analysis

• Outputs

– Updates to documents/plans

– Approved Change Requests



PERFORM Quality

Control

o

Process

• Inputs

– Metrics / Checklists


Measurements


– Deliverables


– 7 Basic Tools; Inspection

– Approved change requests review

• Outputs

– Q. Control Measurements

– Validated Changes &

Deliverables

– Change Requests



Quality Control TOOLS

7. Pareto Chart

• Histogram ordering (problem) areas by highest frequency

• Pareto Analysis=‘80 / 20’ Rule

– 80 % of Problems come from

20% of Causes

Exercise: for a Health Club

•

Requested

Programs/Classes

•

# of Times

Requested

•Weight reduction class

•Walking program

•Stop smoking class

•8,875

•7,115

•4,889

•Soccer program

•Volleyball program

•3,297

•2,054

•Stress reduction class

•Softball program

•1,894

•976

•Table tennis program •120



GM responds to Gates …

‘Computes to Cars’ Analogy

At a recent computer expo (COMDEX), Bill Gates reportedly compared the computer industry with the auto industry and stated "If GM had kept up with technology like the computer industry has, we would all be driving twenty-five dollar cars that got 1000 miles to the gallon." Recently General

Motors addressed this comment by releasing the Statement

• "Yes, but would you want your car to crash twice a day?"

• Every time they repainted the lines on the road you would have to buy a new car; occasionally your car would die on the freeway for no reason, and you would just accept this, restart and drive on.

• Occasionally, executing a common maneuver would cause your car to stop and fail and you would have to re-install the engine. For some strange reason, you would accept this too.

• You could only have one person in the car at a time, unless you bought

"Car95" or "CarNT". But, then you would have to buy more seats.

• The oil, gas and alternator warning lights would be replaced by a single

"general car default" warning light which would come on only when it was too late to fix the problem.

• Buying a new set of tires would also require one to buy multiple other accessories or the car wouldn't run properly

• The airbag system would say "are you sure?" before going off

• The re-sale value would drop 75% as soon as you drove out of the showroom and would be $0.00 within two years - trade ins.

• For service you would have to call a toll free number and select the proper number for the repair you wish to have done. An automated voice would walk you through the step to repair the car yourself and when that didn't work refer you to the company that sold the gas for the car.

COPYRIGHT 1998 ComputerWire, Inc. COPYRIGHT 2000 Gale Groupoccurrence .



Quality Pitfalls

o 4 th Constraint, further defines scope o Effects from lost productivity o Difficult Tools, such as Six Sigma o Compliance to ISO 9000 standard

Quality is not a luxury!



Human Resources

o 50% of project conflict comes from HR & Schedules



Human Resources

o Processes

• Planning

– Roles and Responsibilities

– Staffing Mgmt Plan

• Acquire

– Staff Assignments

• Develop

– Team Performance Assessment

• Manage

– Recommended Corrective Action



Current Environment

o Improve benefits

• Flex hours

• Pets, Babies to office

• Doctors on-site

• Shoes for Indian laborers

(‘human conveyor belt’ carrying limestone) o Productivity ‘dirty little secret’

• USA = #1 in Productivity as per GDP

… per Worker

France = #1 … per Hour

• 2x as many Americans work 48+ hrs/wk o Vacation Times

• Europeans – 6 to 7 weeks

• Americans – 12 days



Outsourcing vs Off-Shoring o Outsourcing

• Procure services or products from outside suppliers

– Car parts

o Off-shoring

• Migrate part or all of valuechain to a low cost location

– Phone Customer Service

(works well using our ubiquitous telecommunication technology)



Keys to Motivating

People

A. Theories

B. Influence and Power

C. Effectiveness



A: Motivation Theories

1. Intrinsic vs Extrinsic

2.

Maslow’s Hierarchy of Needs

• What motivates a newly hired person?

3.

Herzberg’s Factors

• Motivational  Produce job satisfaction

• Hygiene  If missing, job dissatisfaction

4.

McClelland’s Acquired Needs

• Achievement

• Affiliation

• Power

5.

McGregor’s Theory X and Y

• Which are you?

• Also Theory Z (by Ouchi)



B. Influence and Power

o Influence

(by Thamhain & Wilemon)

• Positive examples

• Negative examples o Power = ability to influence behavior

• Types

– Coercive

– Legitimate

– Expert

– Reward

– Referent



C. Effectiveness

o Steve Covey’s 7 Habits

Dependence

PRIVATE VICTORY

– Be Proactive

– Begin with the end in mind

– Put first things first

Independence

PUBLIC VICTORY

– Think Win-Win

– Seek 1 st to understand

– Synergy

Interdependence

– Sharpen the Saw o Empathetic Listening

• Mirroring



HR Exercise

o Build a matrix for your activities o Fill in ‘percent of your time’

Urgent Not Urgent



HR PLANNING

o

Process

• Inputs

– Organization Process Assets

– Project Mgmt Plan


– Organization Charts

– RAM

(Resource Assignment Matrix)

– RACI (Responsible,

Accountable, Consult, Inform)

• Outputs

– Roles & Responsibilities




Responsibility

Assignment Matrix (RAM)

o Link activities to resources to ensure that the scope's components are each assigned to an individual or team.

Information Technology Project Management, Fifth Edition, Copyright 2007



RACI Diagram

o Splits tasks to 4 participatory responsibility types amongst 5 stakeholders (A, B, C, D, E)

Unit Test

Integration Test

System Test

User Acceptance Test

A B C D E

C A I I R

C P A I R

C P A I R

C P I A R o Types are assigned to different roles

• R esponsible (Work to achieve the task)

• A ccountable (One person ultimately)

• C onsulted (Opinions are sought - 2 way chat)

• I nformed (Kept current on progress - 1 way chat)

• [ P articipant] may also be used



HR ACQUIRING

o

Process

• Inputs

– Roles & Responsibilities



– Negotiation

– Acquisition

– Virtual Teams


• Outputs

– Project Staff Assignments




Tools for Acquiring o Assignment o Loading

• Total amount of resources needed during specific time

• Overallocation

o Leveling (~ Tetris)




HR DEVELOPMENT

o

Process

• Inputs

– Project Staff Assignments



– Team-Building Activities

– Ground Rules, Training

– Recognition & Rewards


• Outputs

– Team Performance

Assessment



HR Exercise



HR ‘Golden Nugget’



HR ‘Golden Nugget’



HR MANAGE

o Process

• Inputs

– Team Performance Assessment

– Work Performance Info

– Performance Reports


– Observe and conversation

– Performance Appraisals

– Conflict Mgmt

– Issue Log


• Outputs

– Preventative & Corrective Action

– Lessons Learned Documentation



Social Styles

Personal Style Inventory

Based on Meyer-Briggs

( 1) Task

Present

Driver Analytical

Control

Specialist

Technical

Specialist

Past

(

A) Tell

Expresser

Social

Specialist

Future

Amiable

Adaptive

Specialist

Varies

(

B) Ask

(2) People



Leadership in Teams

Coach Support

STORM NORM

The area under the bell curve is the team members’ percent of effort

Direct Delegate

FORM PERFORM

Team Stage

BW. Tuckman

• Forming

• Storming

• Norming

Characteristics of this Stage

PMgr

Stage

K.Blanchard

• Honeymoon; little work done

• Diff opinions of How work done Conflict, Mistrust

•Direct

•Coach

• Common working method Cooperate, Collaborate •Support

• Performing • Focus = team goals Loyalty to each other •Delegate

• Adjourning • Break up after reach goal



HR Pitfalls

o Erroneous Productivity

Measurements o Focus emphasis on ‘T’echnology

VS should focus on ‘I’nformation o Team Dysfunctions

1. Absence of Trust

2. Fear of Conflict

3. Lack of commitment

4. Avoidance of accountability

5. Inattention to Results



HR Exercise

For your project:

• Add a column in SH Mgmt Strategy with their personality types (A1, B1, A1, B2)

• B uild a resource sheet (Create resource pool)

– Name, Type (Work or Matl), Initials, Group,

Std Rate, Ovt, Rate, Cost/Use, Accrue at,

Calendar

• Assign resources to tasks in your WBS

•

Create a Team Charter having:

– Code of Conduct

– Participation

– Communication

– Problem Solving

– Meeting Guidelines



RISK



Risk Defined

o Negative Risk

• ‘Possibility of loss or injury’ (dictionary)

• Negative Risk Mgmt ~ to Insurance

Knowledge Area Risk Conditions

Integration Inadequate planning;

Poor resource allocations

Scope Incomplete definition

Time

Cost

Errors in estimating; Not know critical path

Inadequate cost, change

Quality

HR

Substandard matls, work

Poor conflict mgmt

Communications Lack of consulting with stakeholders

Risk Unclear risk analysis

Procurement Unenforceable conditions, contract o Positive Risk

• Opportunities

• Positive Risk Mgmt ~ to Investment



Risk Defined

o Contingency Plans

• Predefined actions to be taken if an identified risk occurs o Contingency Reserves

• Provisions to reduce risk o Risk Tolerances




Risk

o Processes

• Planning

– Risk Mgmt Plan

• Identification

– Risk Register

• Qualitative Analysis

– Risk Register Updates

• Quantitative Analysis


– Response Planning


– Contract Agreements

– Monitoring and Control





Risk PLANNING

o

Process

• Inputs

– Scope Statement



– Planning Meetings & Analysis

– Risk Breakdown Structure


• Outputs

– Risk Mgmt Plan



Sources of Risk

o User Involvement o Executive Mgmt Support o Clear Statement of Requirements o Realistic Expectations o Too few Milestones o Ownership

Companies may break these into categories particular to them.

In-Class Exercise:

List five questions to determine your friend’s

Personal Finance Risk Tolerance.

Then create defining criteria (RA, RN, RS).



Risk Assessment

Who and How to conduct risk assessment in PMP:

Project Manager/ Team are responsible.

Identify, Categorize, Assess and Prioritize Risks

• Employ brainstorming technique with cross-functional team to identify & categorize risks.

•

Evaluate likelihood & severity of risk then determine risk score

•

Prioritize according to risk score

• Develop risk mitigation plans to reduce risk to acceptable levels.

When to conduct Risk Assessment in PMP?

Start to establish preliminary risk assessment in Initiation Phase

Remember:

The risk assessment is a living document that should be reviewed and updated throughout the project duration.

Upside Potential Section: Always capture additional opportunities that are potentially favorable for your project deliverables.



Risk Breakdown

Structure (RBS)

RBS is a hierarchy of potential risk categories.




Risk Considerations

Effective risk assessment help us to proactively mitigate risks, set right expectations and minimize ‘surprises’.

Risk categories in PMP:

• Market

• Operation

• Economic Climate

Competition

Financial

Other

Regulatory

Product /

Technology

Risk concept & rating:

• Gross Risk: risk without mitigation

• Residual Risk: remaining risk with certain mitigation / control in place

• Risk Score (Exposure) = Likelihood * Severity

(Probability * Impact)



Risk IDENTIFICATION

o

Process

• Inputs

– Scope Statement


– Risk Mgmt Plan


– Documentation Reviews

– Info Gathering Techniques


• Outputs

– Risk Register



Tools / Techniques

INPUT: o Brainstorming / Meetings o Delphi Technique o Interviewing o SWOT

OUTPUT: o Risk Register

1

2

N u

Risk Description Category

Root

Cause

Trigger

Poten tial

Resp onses

Risk

Owner

Pro babi lity

Impact

Stat us

• Documents potential risk events

• Example:

Rank

– Risk – Desc- Category-Root Cause-Trigger-….

1

New Customer

Not know much about them but CRM important

People

Won contract without knowing him

Can misunderstand customer’s needs.



Risk Assessment (~ Risk Register & P/I)

Done at every gate

PMP toolset – Keystone as an example

Risk score (Severity * Likelihood) >=15 indicated in Red ;

>=10 indicated in Yellow ; < 10 in Green



Qualitative Risk

Analysis

o

Process

• Inputs

– Risk Mgmt Plan

– Risk Register


– Probability / Impact Matrix

– Risk Categorization ex: ‘Top 10’ Item Tracking


• Outputs




P/I Matrix

High

Medium

Low

P/I

Matrix

Low Medium High

Increase PROBABILITY of Risk Occurring



“Top 10” Tracking Tool

o Good for mgmt review meetings

•

Shows issues potentially impacting project

• Involves customers to help determine alternatives

• Promotes confidence in team




Quantitative Risk

Analysis

o

Process

• Inputs

– Risk Mgmt Plan

– Risk Register


– Decision tree analysis / EMV

Expected Monetary Value Analysis

– Simulation (ex: Monte Carlo)

– Sensitivity analysis


• Outputs




Decision tree analysis /

EMV

o Expected Monetary Value Analysis

• Product of risk event probability *

Risk event’s monetary value


Which project is safer to fund?



Risk Response

Planning

o

Process

• Inputs

– Risk Mgmt Plan

– Risk Register


– Strategies for Negative Risks

– Strategies for Positive Risks


• Outputs


– Risk-Related Contractual

Agreements



Strategies for Risk

o Strategy for

Negative

Risks

• Avoid (eliminate cause of risk)

– Don’t use new hardware

• Accept consequences

• Transfer

• Mitigate o Strategy for Positive Risks

• Exploit (do whatever is needed)

– Write good PR may lead to new business

• Share

• Enhance

• Accept o Residual Risks o Secondary Risks



Risk Monitoring and

Controlling

o Process

• Inputs

– Risk Register

– Risk Mgmt Plan



– Risk Reassessment

– Risk Audits

– Variance and Trend Analysis

– Status Meetings


• Outputs


– Recommended Actions



Risk Assessment

Summary

o o o o o o

All project have risks

Identify as many risks as can be reasonably identified.

Quantify the risk. What is the likelihood of the occurrence? What is the impact of the occurrence?

Prioritize risks you will manage.

Decide how you will manage the risk, avoidance, mitigation or acceptance.

Identify who will manage the risk.

Clearly identify the trigger for when the risk has occurred



Risk Pitfalls

o Undefined Organization’s & personal “risk tolerances” o No mitigation plan for Negative risk conditions o No use of Risk tools such as

P/I, Risk Register, ‘Top 10’



Risk Exercise

o Build a ‘Top 10 Risks’ chart for your project o Build a P/I Matrix for building your project o Build a Risk Register for your work project




Communication



Communication

o Processes

• Planning

– Communications Mgmt Plan

• Information Distribution


• Performance Reporting



• Manage Stakeholders

– Resolved Issues




Communications

PLANNING o Process

• Inputs


– Scope Statement


– Communications Reqts

Analysis

– Technology


• Outputs

• Communications Mgmt Plan



Communication

Matrix




Communication Matrix

• Provides clear definition of who gets what project information when

•

Vital to ensuring project & organization run as smoothly as possible

•

Will save rework, eliminate unnecessary waiting periods, and reduce need to have redundant communications



Information

DISTRIBUTION o Process

• Inputs



– Communication Skills

– Information Distribution

Methods

– Lessons Learned Process


• Outputs

– Organizational Process Assets

Updates




Selecting the HOW

o Get the Right info to the Right people at the Right time

• Use technology

– Web, groupware, wikis, blogs

• Informal & Formal Methods

– Can’t assume documents are read

– Can’t assume verbal is listened to

WHY is verbal often more effective?



Selecting the HOW

Email is legal evidence !



Selecting the WHAT

Dear Mom and Dad, or should I say Grandma & Grandpa,

Yes, I am pregnant. No, I’m not married yet since Larry, my boyfriend, is out of a job. Larry’s employers just don’t seem to appreciate the skills he has learned since he quit high school. Larry looks much younger than you, Dad, even though he is three years older. I’m quitting college and getting a job so we can get an apartment before the baby is born. I found a beautiful apartment above a 24-hour auto repair garage with good insulation so the exhaust fumes and noise won’t bother us.

I’m very happy. I thought you would be too.

Love, Ashley

P.S. There is no Larry. I’m not pregnant. I’m not getting married. I’m not quitting school, but I am getting a “D” in

Chemistry. I just wanted you to have some perspective.


You determine Style/Context considering the receiving stakeholder’s personality !



Performance

REPORTING

o Process

• Inputs

– Work Performance Info

– Forecast Completion

– Deliverables


– Information Presentation Tools

– Status Review Meetings

– Cost Reporting Systems


• Outputs


– Forecasts




TYPES of Reporting

o Performance Reporting keeps stakeholders informed

• Status Reports

– Where project stands at a specific point in time

• Progress Reports

– Accomplishments during a certain period of time

“Weekly”, “Monthly ”

• Forecasts

– Predict future

“How much longer to complete”

“How much more money to complete

”



PMP Toolset Reporting Options

Gate Report

Project At-a-Glance

Overview

Charter

Gate Checklist

- Gate Report can be exported to PDF

- Blank pages give you freedom to elaborate additional details

- Options to include key summaries in

Project Overview



PMP Toolset Reporting

At-a-Glance Project Overview simplifies project communication




Alternate view of At-a-Glance Project Overview




• Standardized Gate Review Report Expected by the Mgmt Team

• Gate Report Focus on Key Changes & Gaps in Assumptions,

Business Case, Schedule, Scope and Cost /Financial.




Export to PDF - Gate Review Deck

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Communication

Pitfalls

o Ignoring personality types when handling Conflict o Ignoring the danger in increasing the number of communication channels

• Algorithm = (n*[n-1])/2 o “Generous Listening”

– Paying Attention

– Replication

– Recreation

– Co-creation



Communication

Exercise

o Add to your Stakeholder Mgmt

Strategy … two columns (Medium &

Frequency) o Add a snapshot of any report as a new worksheet in your Excel file.



Manage Stakeholders

o Process

• Inputs




– Communication Methods

– Effective Meetings

– Kickoff Meeting

– Issue Logs

– Expectations Mgmt Matrix


• Outputs


Updates

– Resolved Issues



Conflict Negotiation

Paradigms of Human Interaction

(from Seven Habits of Highly Effective People by Steven Covey)

Win – Lose Win – Win

Lose- Lose Lose – Win

Consideration

Two most powerful words are __ _____ .



Resolving Conflict

Conflict – Resolution Style based on your personality style

Compete

Avoid

(1) Task

Collaborate

Compromise /

Confront

Accommodate

(2) People



Conflict Handling Modes

Information Technology Information Technology Project Management, Seventh Edition, Copyright 2013



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Thank You

Which tools in which knowledge area is going to be the most helpful?



Supplemental Slides

• Jan does not think we’ll need



Maybe delete since Chemtura uses term ‘phases’ to mean PMI’s ‘process groups’

Project Life Cycle

Phases

Feasibility Acquisition

Concept Development

Management Plan Project Plan

Implementation

Detailed Specs

Closeout

Lessons Learned

Preliminary costs Budgetary costs Definitive costs Actual costs

Resources: Low ………………………………………………………….. High

Risk: High ………………………………………………………….. Low

Conflicts:

Procedures Priorities Schedules Completion

… within EACH project’s Life Cycle, you may have various Process Groups o What phase is your work project?

o How comfortable are you with its plan (Time, Cost, Scope) ?



Vis.align DNA

Framework

• Integrating IT &OE Best Practices Through the Project Lifecycle SUPP FOR #8

•

Requirements

Gathering

• Project

Planning

• Business

Process

Analysis

• Key Success

Metrics

• Envis ion

• Change

Readiness

• Team Charter

• User Profile

• Partner

Evaluation

• Business

Review

• Change

Management

• Conflict

Resilience

• Knowledge

Transfer

• Release

Management

• Technology stabilization

• Client

Integration

• Results

Management

• Organizational

Change

• Continuous

Improvement

• Productivity

Goals

• Innovation

• Build

• Technical

Configuration

• Process

Engineering

• Risk

Management

• Testing

• Deplo y

• Stakeholder

Communicatio n

• Customer

Care

• Knowledge

Share

• Peer

Feedback

• IT IQ

• Mana ge

• ROI Review

• Enhancement s

• Process

Improvements

• Service Level

Performance

•

Organizational Effectiveness



PwC

Prepare

• Assess Client

Risks

• Document

Scope and

Assumptions

• Propose

Services

Enhance

• Complete

Documentation

• Assess

Lessons

Learned

• Share

Knowledge

• Confirm Value

Proposition

• Design Work

Plan

• Mobilize

Resources

Engage

• Implement

PM

Processes

• Execute/Man age

• Produce

Deliverables

Deliver

•199

• PwC Program Management * Penn


State IST

Scope Mgmt Plan



CHAOS’ Resolution

History



CHAOS’ Time



Reference Table

(The CAPM Exam, A. Crowe; Velociteach Publishing) o Recognizing “Lucky” and “Lousy” o Why go with COTS software?

(Commercial Off-The Shelf) o Overruns

• Communicating

• Understanding o Law suit potentials



“INITITATING” the PMP Toolset

1.

Trigger: Project is identified as “strategic” and requires PMP

2.

Project Mgr contacts SPM to:

• Validate needs for PMP

•

Provide Team Member List

3.

SPM makes necessary arrangements for Chemtura Connect and PMP Portal access.

4.

Project Mgr creates project w/in PMP Toolset (Infopath form!)

5.

SPM notifies Project Mgr that team members are set-up in

Chemtua Connect.

6.

Project Mgr creates Project Workspace w/in Chemtura Connect and provide team members access and auto-notifies team

7.

Project Mgr creates folders / adds content in Project Workspace

8.

Project Mgr creates a “URL Item” in the Project Workspace which accesses their project’s PMP Toolset in Infopath



Initiating PMP Toolset

Form

http://sp.chemtura.com/sites/spm/pmp/Toolset for

PMP/Forms/AllItems.aspx

1

1.

Access

“Tool

Set” .

2

2. Open blank form.

