Project Management for Your
Local Section / Chapter
Lee Stogner, PMP
2005 Leadership Workshop
Tucson, Arizona
March 12, 2005
Seminar Objectives
To:
Provide tools and ideas for more effectively
executing your projects
In a way that:
Develops understanding of the need to
execute your projects more effectively
So that:
Develops understanding of some basic
project management principals and
practices
Promotes teamwork
All your organization's projects will be
successful
Benefits of Sound Project Management
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Less overall project cost
Less strain on working capital
Effective use of resources
More timely project completion
Higher quality of the final product
Project Management Overview
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What is a project?
What is project management?
What is project success?
What factors determine project
success?
A Project
When a task...
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Has a defined
objective
Has a deadline
Requires integration
of knowledge and
experience from
various organizations
PM
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Project Management is:
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Project Management is:
Causing a Planned PM
Undertaking to Happen
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Project Management
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Complex and numerous activities
Unique - a one time set of events
Finite - a begin and end date
Limited resources and budget
Many people involved
Sequenced activities
End product or service must result
Program Management
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Larger in scope than a project
Made up of several projects
Made up of a number of similar
products
Programs tend to be more permanent
Peanuts
What is Project Success?
Factors in Project Success
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Project Management Philosophy
Project Management Role and
Responsibility
Project Management Principles and
Practices
Project Management Philosophy
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The “Golden Rule” of Project
Management is three words:
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Plan
Organize
Control
Project Management Roles and
Responsibilities
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Project Execution
Maintain Customer Relations
Create a Positive Environment
Project Execution Plan
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Project Execution Strategy
Project Management
Quality
Safety
Risk Management
Design/Develop/Program
Implementation
Documentation
Training
Customer Relations
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Develop
Communication
Ensure Timely
Participation
Include the Customer
on the Project Team
Develop Trust and
Confidence
Create a Positive Environment
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__________ Effectively
__________ Member of the Team
Utilize _______ _______ Activities
__________ Success
Maintain a safe working environment
Safety
Project Management Principles and
Practices
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Define Project Objectives
Develop Project Execution Plan
Define Baselines for Control
Manage Risk
Close out Effectively
Define Project Objectives
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Expected deliverables
Required resources (total installed
cost)
Required timing (opening date)
Safety and Environmental
Total Quality
Define S.M.A.R.T. Project Objectives
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S pecific
M easurable
A ssignable
R ealistic
T ime related
Alignment Process
Team Requirements
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Skills needed ?
Individuals identified ?
When are they needed ?
Where are they ?
Training needed ?
Interpersonal compatibility ?
The Four Cornerstones
of Project Management
Cost
Schedule
Scope
Quality
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Scope
Poor scope definition is the major
contributing factor to cost overruns in
the engineering and construction
industry.
CAUTION
Cost Influence Relative Time
Initial Scoping Effort
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Sets the baseline for cost and schedule
Must involve the right people
Must include implementation
Identifies items not included
Maximum influence on project cost
Breaks project into manageable pieces
The WBS
Drawings
Estimate
• Facility
• Services
WBS Element/
Work Package
Schedule
Cost
Reports
Contracts
Bill
of
Materials
Successful Work Breakdown
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Status and completion is easily
measured
Definite beginning and end
It is familiar with prior experience
Manageable work assignments
One continuous stream of work from
start to finish
Steps for constructing a WBS
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Divide the project into major objectives
Partition objectives into activities
Divide activities with missing
characteristics into subactivities
Repeat #3 until all subactivities have
desired characteristics
Lowest subactivities are the basis of work
packages
Creeping scope
The effect of “creeping scope” is
a major cause of cost overruns
$
To manage creeping scope
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Keep scope documents current
Freeze design after the estimate has
been approved
Allow only those changes that are
justified by benefit
Use an effective change management
procedure
The Four Commandments
of Good Project Scope
Written
Well defined
Clearly understood
Achievable
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Aspects of Cost
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Estimate
Cost Control
Basis for Control
Application of
control procedures
to follow financial
progress
Estimate Requirements
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Define project cost
integrate scope, schedule, and
resources
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Define estimate basis
Identify potential risks
Identify contingency/escalation
Identify items not included
Elements of Cost Control
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Establish the baseline (estimate)
Measure variation from baseline
Take corrective action
Cost Control System
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Detailed project scope/work
package
Control estimate
Chart of accounts
Cost status report
Forecasting process
Change management procedure
Cash flow forecast
Project Control
Project
Day 1
-------------To do list:
Kick off meeting
Project schedule
Integration of Cost and Time
Basic Elements of the
Control System
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A project plan: Scope, schedule, estimates
A monitoring system which measures performance
against plan
A reporting system which identifies deviations from
the plan
A system which communicates deviations to the
right people
Corrective actions
Forecasting the project outcome
Key Control Philosophies
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Define the baseline for control
1._______ 2. ________
3. _______ 4. ________
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Divide project into manageable pieces
Remember: Ability to influence cost is
maximum early in the project
Key Control Philosophies (con’t)
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Define and manage risk/opportunity
Integrate scope and estimated cost
into schedule
Make informed decisions
Anticipate deviations/changes
Adopt the “end product” approach
Plan ahead from phase to phase
Basic Project Control Steps
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Define the project scope
Develop a project plan consistent with:
 project scope
 estimates (cost constraints)
 schedule (constraints
 resources available
Report progress and compare with budget and
forecast
Control by taking corrective action
Contingency - Plan for Change
Cornerstones of
Project Management
Cost
Schedule
Scope
Quality
Schedule
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Planning -
Identification of the
sequence of events
necessary to complete
the project
Scheduling - Determination of timing and
assembly of project
activities to give overall
completion time
Front End Schedule
A way to get the project started right
Design
Program
Install / Test
System Turnover
Basis for Project Schedule
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Project objectives
Project scope
Project milestones
Project estimate (budget)
Resource availability
The Critical Path
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Identifies project priorities
Shows activity relationships
Enables schedule analysis
Reflects project strategy
Promotes teamwork
Basic Network Diagramming
Expanded Network Diagramming
The Bar Chart
The Gantt Chart
Project Schedule - Tools
Microsoft Project
Project Schedule - Tools
www.primavera.com
Five Phases of Project Management
Cornerstones of
Project Management
Cost
Schedule
Scope
Quality
Total Project Quality Management
Quality Assurance
Quality
Control
Total Project
Quality
Management
Continuous Improvement
Design
Basis
Project Quality Improvement
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Develop a quality management plan early
in the project
Include representatives from all affected
organizational units on the project team
Initiate the project effectively through
kick-off and alignment meetings
Review performance and measure
success
Project Quality Improvement (con’t)
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Define scope and review periodically
Limit scope changes
formal change procedure
require justification
Complete more engineering up-front
before defining cost and scheduling
Obtain constructability, operability and
maintainability input to design
Cost of Quality
Risk Management
Manage Risk
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What is risk?
Sources of risk
Kinds of risk
Risk Management Process
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Identify risks
Define consequences
Develop a mitigation plan
Document
Sources of Risk
Technical
Financial
Socio-Economic
Contractual
Risk Management Process
Identify Risk
Analyze Risk
Respond to Risk
Document Risk
Sources of Help to Identify Risk
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Site investigations
Contract documents
Schedule
Team brainstorming
Body of experience
Risk Control Methods
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Avoid
Reduce
Share
Insure
Accept
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with contingency
without contingency
Contain
Risk Containment
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Clearly define insurance
responsibilities in contracts
Use qualified personnel
Document and communicate project
strategy
Define roles and responsibilities
Prepare contingency plans for critical
activities
Use up-front team building
Risk Containment (con’t)
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Use qualifies contractors
and vendors
Preconstruction work briefings
(especially safety)
Rehearse critical activities or use
mock-ups
Use strong project control
systems
Manage contingency
Project Close-out
Project Closeout - Major Phases
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Obtain client acceptance
Document the project
Conduct the post implementation
audit
Issue the final report
Pyramid Cartoon
Successful Project Management
Plan the Work…
Work the Plan
Successful Project Completion
Project Management - Learning More
www.pmi.org
Project Management - Learning More
Project Management Body of Knowledge
Project Management - Learning More
www.amazon.com
Project Management - Get Certified
www.pmi.org
Project Management - IEEE EMS
www.ewh.ieee.org/soc/ems
Class Exercise - Plan a Project
Lee Stogner - Contact Information
Lee Stogner, PMP
Rockwell Automation
Mobile 864-360-9415
Email l.stogner@ieee.org