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Module 02 : Knowing What the Project Is,
Part 1
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2
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3
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Monitoring and Control
Project Drivers
• Problems
• Opportunities
• Business
requirements
Project Approval
• Formal “Go”
decision
• Project
Charter
• Project
Manager
assigned
Project Plan
• Clear and
approved
project or
phase
definition
• Stakeholders
• Scope
(Deliverables)
• Schedule
• Cost
Knowing WHAT The Project Is
4
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* No formal project approval (initiation) process
* Unrealistic expectations and assumptions
* Timing of Project Manager engagement
* Degree of accuracy for project and product
documents
* Speed vs Accuracy vs Change Control culture
* Functional Areas’ Concern: Spending precious
resources’ time on projects that will be disapproved
5
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*Project documentation
*“Project” definition
*Projects or investments
*Project approval process
*Project classification
intensity / rigor. Factors:
* Duration
* Cost
* Project risk
* Priority / importance
* Project classification
- Strategy alignment
- Functional group
- Others
* Small, Medium, Large
* Standard, Light, Tracking
6
* Knowing What the Project Is:
Planning Fundamentals
If project deliverables are clear, much of the work can be pre-planned
(Linear Project Life Cycle approach)
If project deliverables are not clear, initial work should focus on a set of
deliverables that will either provide clarity in the scope or are pre-agreed
upon (Iterative, Adaptive, Extreme Project Life Cycle approaches)
The more uncertain the deliverables, the greater the need is for frequent
“validation cycles”
Do detailed planning only up to the next point of knowledge
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Unclear
Q3: Extreme Approach
Q4: Unlikely Situation
o Nothing about the project
is certain
o Product is accepted after
some iterations or pulls
plug
o R&D
Solution looking for a problem
GOAL
Q2: Adaptive / Iterative
Approach
Q1: Linear Approach
Clear
o Low complexity
o Well understood
technology
o Low risk
o Completed similar project
o Product development and
process improvement
o Production prototype
development
Unclear
Clear
SOLUTION / REQUIREMENTS
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UNCLEAR
Extreme
GOAL
Iterative /
Adaptive
Linear
CLEAR
UNCLEAR
CLEAR
SOLUTION & REQUIREMENTS
9
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High Level
Scope
Cycle
Scope
Cycle
Plan
Cycle
Execute
Cycle
Close
Post Cycle
Review
Next
Cycle?
10
Close
Project
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*
Fast Tracking
practice of overlapping phases
a.k.a concurrent engineering
Phase 1
Phase 2
Phase n
Rolling wave planning – progressive detailing of the project plan that
indicates iterative and ongoing nature of planning. Near-term
deliverables identified at a low-level view of detail, long-term
deliverables identified at a high-level view of detail (Iterative, Adaptive,
Extreme Life Cycle Approaches)
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* Knowing What the Project Is:
Project Planning
Project Plan
Scope
Deliverables: (1)
Scope Statement
(2) Work
Breakdown
Structure
Objective:
Determine the
time required to
meet the project
needs
Deliverables: (1)
Project Schedule
(2) Project
Milestone
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Cost
Objective:
Identify the
funding needed
to meet project
goals
/deliverables
Deliverable:
Project Cost
Baseline
Stakeholder
Management
Objective:
Identify all the
work required,
and only the
work required, to
complete the
project
successfully
Schedule
* Knowing What the Project Is:
Objective: Identify all the work required, and only the work required, to
complete the project successfully
•Stakeholder Register
•Project Charter
•Product Needs
Collect
•
Project Mgm’t Needs
Requirements
Create WBS
Define Scope
Scope Statement
Work Breakdown Structure
Validate Scope
Approved Scope Documents
* Knowing What the Project Is:
Product scope description
Characteristic of the product that the project will produce
Project life cycle approach
Deliverables
List of sub-products whose full and satisfactory delivery marks project
completion. Usually includes milestone deliverables.
Product acceptance criteria
Successful completion metrics
Project exclusions
Project assumptions and constraints
Sponsor approval
* Knowing What the Project Is:
* Assumptions
Factors that are considered to be true, real, or certain
for planning purposes
Generally involves a degree of risk
* Constraints
Factors that limit the project team’s options
15
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*Draft a Scope Statement for
your project (30 minutes)
*Use the workbook
template.
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* Knowing What the Project Is:
Collect
Requirements
Define Scope
Create WBS
Validate Scope
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* Knowing What the Project Is:
Definition:
*
Steps:
Subdivision of major
project deliverables or
sub-deliverables into
smaller, more
manageable
components until the
deliverables are defined
in sufficient detail to
support development of
project activities
(planning, executing,
etc..)
Identify major project
deliverables
Decide if adequate cost and
duration estimate can be
made at this level of detail for
each deliverable
Identify constituent
components of the deliverable
if necessary
Verify correctness of
decomposition (necessity,
definition, cost, duration,
responsibility)
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* Knowing What the Project Is:
A deliverable oriented grouping of project
components that organizes and defines the
total scope of the project
Defines products, not tasks
Can be developed using a top-down or
bottom-up approach
Can be hardware-related, functionrelated, life cycle-related or a
combination
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* Knowing What the Project Is:
Lowest level deliverable in a WBS
Work effort guideline - 80 to 150 hours
Ownership assigned at this level
Tasks are identified under this level
Task size guideline - not to exceed 80 hours; less for
high risk project
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* Knowing What the Project Is:
Project Name
Phase 1
Product
Process
Phase 2
Phase ‘n’
Deliverable 1
Deliverable 2
Project
Management
Process
Deliverable N-1
Deliverable N
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* Knowing What the Project Is:
* Scope Statement
* WBS
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* Knowing What the Project Is:
May not be fully known at the start of a project
May come from multiple sources / groups
May come at various levels of details
Some stakeholders may not be known initially
May be “wants” and not “needs”
Wants - usually more associated with a solution
Needs - usually more associated with the underlying problem
May conflict with each other
May feed off each other
Usually requires iterations and trade-offs to finalize
May change
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* Project Monitoring and Control:
High
Medium
Scope
Time
Cost
24
Low
* Knowing What the Project Is:
Make sure project stakeholders have all been identified
Functional groups that will have a deliverable on the
project should be represented on the project team
WBS should represent only the work needed to complete
the project successfully
Validate the Scope baseline documents with the project
sponsor or approving authority
Process iteration is the norm
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•
Construct a life-cycle based
WBS for your project
•
Use a Post-It-Note sheet for
each deliverable
•
Concentrate on product
deliverables but add
project management
process deliverable that
have already been
discussed in class
26
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*Short Quiz
*Team presentation (15 minutes
each):
*Stakeholder Satisfaction Matrix
*Lifecycle
*Scope Statement
*WBS
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28
* Knowing What the Project Is:
Objective: Determine the time required to meet the project needs
Define the Tasks
Comprising the Work
Package
Estimate the Tasks or
Deliverable Resource
Sequence the Tasks or
/ and Deliverables
Estimate the Tasks or
Deliverable Duration
Develop the Schedule
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* Knowing What the Project Is:
*
*
*
Should include planned start and finish dates for
each deliverable / activity.
Tabular form
Graphical form
– Bar / Gantt Chart
– Milestone chart
– Network diagrams
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* Knowing What the Project Is:
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* Knowing What the Project Is:
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* Knowing What the Project Is:
Objective: Identify interdependencies among tasks / deliverables
Define the Tasks
Comprising the Work
Package
Estimate the Tasks or
Deliverable Resource
Sequence the Tasks or
/ and Deliverables
Primary Deliverable: Project
Schedule Network Diagram
Estimate the Tasks or
Deliverable Duration
Develop the Schedule
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* Knowing What the Project Is:
Mandatory – inherent in the nature of the
work being done, a.k.a. hard logic
Discretionary – defined by the project team,
a.k.a. preferred logic, preferential logic,
soft logic
External – involve relationships between
project activities and non-project activities
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* Knowing What the Project Is:
Gantt or bar charts
Milestone charts
Networks (show interdependencies)
Precedence Diagram Method (PDM)
Arrow Diagram Method (ADM)
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* Knowing What the Project Is:
Method of constructing network
diagram that uses boxes (nodes)
to represent activities and
connects them with arrows to
show dependencies
a.k.a. Activity On Node (AON)
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* Knowing What the Project Is:
FINISH
FINISH-TO-START
START
Eqpt Rcvd
Eqpt Inspected
START
START-TO-START
Wall Preparation
START
Wallpapering
START
START-TO-FINISH
Production Burn-In
FINISH
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Operational
Acceptance
* Knowing What the Project Is:
FINISH
FINISH
FINISH-TO-FINISH Wall Preparation
Wallpapering
PERCENT
COMPLETE
Network
Requirements
50 %
20 %
Network Design
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* Knowing What the Project Is:
EARLY START
01/06/12
TIME DURATION
2 WORK-WEEKS
EARLY FINISH
14/06/12
$250,000
ACTIVITY 4
SLACK
LATE START
15/06/12
COST/PROFIT
CENTER 2810
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LATE FINISH
28/06/12
* Knowing What the Project Is:
Early
Start
Durati Early
on
Finish
Early
Start
B
Late
Start
Early
Start
Slack
Durati Early
on
Finish
Early
Start
D
Late
Finish
Late
Start
Slack
Late
Finish
Late
Start
Durati Early
on
Finish
Slack
Early
Start
Durati Early
on
Finish
E
F
Slack
Late
Finish
Activity
A
Late
Start
Durati Early
on
Finish
Late
Start
Slack
Preceding
Activity
A
Late
Finish
Early
Start
Durati Early
on
Finish
C
Late
Start
Slack
Late
Finish
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B
A
C
A
D
B
E
C, D
F
E
Late
Finish
* Knowing What the Project Is:
Objective: Estimate the type and quantities of materials, people, equipment
or supplies required to complete each task or deliverable
Define the Tasks
Comprising the Work
Package
Sequence the Tasks or
/ and Deliverables
Primary Deliverable: Task /
deliverable resource requirements
Secondary Deliverable: Resource
Breakdown Structure
Estimate the Tasks or
Deliverable Resource
Primary Deliverable:
Project Schedule
Network Diagram
Estimate the Tasks or
Deliverable Duration
Develop the Schedule
41
* Knowing What the Project Is:
People, material, equipment, supplies
Time / Skill and other trade offs
Resource requirements including timing
Resource Organizational Matrix
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* Knowing What the Project Is:
Objective: Determine the work period required to complete the task or
deliverable with the estimated resources
Define the Tasks
Comprising the Work
Package
Primary Deliverable: Task /
deliverable resource requirements
Secondary Deliverable: Resource
Breakdown Structure
Estimate the Tasks or
Deliverables Resource
Sequence the Tasks or
/ and Deliverables
Primary Deliverable:
Project Schedule Network
Diagram
Estimate the Tasks or
Deliverables Durations
Primary Deliverable: Task /
deliverable duration estimate
Develop the Schedule
43
* Knowing What the Project Is:
Expert judgment
Analogous estimating
Parametric estimating
Three-point estimating
Reserve time (contingency)
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*Knowing What the Project Is:
Use actual duration of a previous similar
activity as basis to estimate duration of
the future activity
Approximate (rule of thumb) estimate
Made without any detailed engineering
data
A.k.a “Top-down estimating”
45
*Knowing What the Project Is:
Quantities to be performed for each
work category defined by the
engineering/design effort multiplied
by the productivity unit rate
Example: No. of drawings x no. of
hours per drawing
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* Knowing What the Project Is:
* O - Optimistic completion time estimate
* M – Most likely completion time estimate
* P – Pessimistic completion time estimate
* Task Duration = (O+4M+P)/6
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* Knowing What the Project Is:
Objective: Create project schedule based on activity/deliverable sequences,
resource and duration estimates, and schedule constraints
Define the Tasks
Comprising the Work
Package
Estimate the Tasks or
Deliverable Resource
Sequence the Tasks or
/ and Deliverables
Primary Deliverable: Project
Schedule Network Diagram
Primary Deliverable:
Project Schedule
Baseline
Secondary
Deliverable:
Milestone Schedule
Primary Deliverable: Task / deliverable
resource requirements
Secondary Deliverable: Resource
Breakdown Structure
Estimate the Tasks or
Deliverable Duration
Primary Deliverable: Task / deliverable
duration estimate
Develop the Schedule
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* Knowing What the Project Is:
Critical Path
Longest time span through the total system of
activities / events
Delay in any activity / task in the critical path delays
the whole project
Improvement in total project time means reducing
time for activities / events in the critical path
Slack Time (Float) - Time differential between the
scheduled completion date and the required date to
meet critical path.
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* Knowing What the Project Is:
* Determined by doing forward and backward pass calculations
Forward Pass
Backward Pass
• Calculates early start and
early finish dates
• Project end date
• Longest path
• Calculates late start and
late finish dates
• Task / project float
• Identifies tasks in critical
path
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* Knowing What the Project Is:
The first predecessor task(s) have an Early Start (ES) of
zero
Early Finish (EF) dates are calculated by adding the
task duration (TD) to the earliest date (ES) a task can
start
The EF date of the predecessor becomes the ES date
for the successor
When there are multiple predecessors, ES is the larger
of the EFs for the task
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* Knowing What the Project Is:
Late Start (LS) and Late Finish (LF) dates are
calculated starting from the end of the project
LS is calculated by subtracting the TD from the LF
of the task
LS for the successor task becomes the LF for the
predecessor task
When there are multiple successors, LF is the
smaller of the LSs
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* Knowing What the Project Is:
Task Float = Late Finish – Early Finish
Those tasks with zero float are on the
critical path
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*Refer to your PM Workbook.
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*Knowing What the Project Is:
* Life Cycle Approach
* Constraints
– Imposed dates on activities (start/finish)
– Key events / major milestones
* Leads and lags: dependency relationship among
activities
* Schedule compression
– Crashing
– Fast Tracking
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*
High Level
Scope
Cycle
Scope
Cycle
Plan
Cycle
Execute
Cycle
Close
Post Cycle
Review
Next
Cycle?
56
Close
Project
*
*Determine the Schedule for
a phase of your project (20
minutes)
57
*
58
* Knowing What the Project Is:
Objective: Identify the funding needed to meet project goals /
deliverables.
•WBS
•Resource Plan
•Project Schedule
Estimate Cost
Determine Budget
•Project budget estimate
•Cost Baseline
Work Package cost estimate
* Knowing What the Project Is:
Expert judgment
Analogous estimating
Parametric estimating
Three-point estimating
“Bottom-Up” Estimating
Reserve Analysis (contingency)
60
*Knowing What the Project Is:
* Use actual cost of a previous similar project
to estimate cost of current project
* Approximate (rule of thumb) estimate
* Made without any detailed engineering data
* Top-down estimating
* Accuracy +- 15%
61
*Knowing What the Project Is:
* Use project parameter in a mathematical model
to predict project cost
* Made without any detailed engineering data
* Order of magnitude estimate
* May use past experience
* Accuracy +- 35% within the scope of the project
* Example: construction cost per square foot
62
*Knowing What the Project Is:
* Cost estimate of WBS work packages rolled up to a
project total
* Definitive/detailed estimate
* Prepared from well-defined engineering data,
vendor quotes, unit prices, etc.
* Accuracy +- 5%
63
*Knowing What the Project Is:
* Time-phased budget for measuring, monitoring and
controlling overall project cost performance
Cumulative
Amount
Time
64
* Knowing What the Project Is:
PROGRAM COST, $
ALL ACTIVITIES CRASHED
CRASH B
160,000
150,000
CRASH E
CRASH F
CRASH A
140,000
130,000
120,000
NORMAL OPERATIONS
110,000
10
12
14
16
18
20
22
PROJECT COMPLETION TIME, WEEKS
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24
* Knowing What the Project Is:
*Shows monthly cash flow
*Identifies capitalized vs. operating
66
* Knowing What the Project Is:
* Determine appropriate project life cycle approach
* Use Scope Statement / WBS to baseline project scope
* Develop a project schedule to baseline project time
* Develop a cost baseline
* Focus is more on “knowing what the project is”
* Partner with line managers to get agreement on scope, time
and cost baselines
* Change control process should be in place as soon as possible
* Validate progressive elaboration outputs
67
*
68
*
69
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*Determine cost baseline for
a phase of your project (40
minutes)
70
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*Critical Path Homework Due
(Workbook 6.3.1)
*Short Quiz
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