ASQ-NEIS
November 12, 2009
Applying the
Project Management
Body of Knowledge (PMBOK)
to
Quality Program Projects
Greg McCormick, PMP
My Objectives Tonight
1. Present Project Management as a
“production process”
2. Show how to use PMI’s PMBOK Guide
•
•
Reduce variation from expected results
Support continual improvement, leading to PM
as a stable, capable, and predictable process
3. Provide information on PMI certifications
•
Those with PM experience may want to
consider adding a professional credential
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Objective 1.
Present Project Management
as a “Production Process”
QM Already Thinking “Process”
The full power of the methods to improve quality,
increase productivity, and reduce cost
may not be fully realized until these methods
are applied to processes as well as “parts”.
Improving action on a process is often
most economical when it is directed at
prevention rather than detection.
Much information about process performance can
be learned by studying its output(s), but the most
helpful information comes from understanding
the process itself and its internal variability.
ASQ/AIAG Statistical Process Control
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Definitions of Process
Sequence of activities with a definite beginning and
end. “Something” travels through the sequence,
and resources perform activities along the way.
Lean Sigma – A Practitioner’s Guide
The total combination of people, equipment,
materials, methods, and environment that work
together to produce output.
ASQ/AIAG’s SPC Manual
Set of interrelated activities,
performed on Input(s),
in order to achieve a specified Output.
PMI’s PMBOK Guide
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PM as a Process
Input(s)
Project
Management
Output(s)?
Deming:
Qoutput = f { Processoutput}
So if you don’t like the quality of the Output, …?
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Is the PM Process Successful?
$75B spent on failed IT projects in U.S. every year
Standish Group
25% of all projects fail outright, are terminated, or are
abandoned
50% are declared “done”, but fail to meet scope,
schedule, quality, and/or budget objectives
Only 25% are considered successful
PriceWaterhouseCoopers
50% of all projects will cost at least twice the original
estimate
Chaos Report USA
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budget
Analysis of Projects: Costs
Project cost management process(es):
“Under control”? “Capable”?
Confidently predict that cost of next project w/b within SLs?
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Objective 2.
Applying PMBOK Guide to
Reduce PM Process Variation (Risk)
Projects fit definition of “process”
but that process may not
consistently produce outputs
acceptable to internal and/or external customers.
Opportunity for process improvement.
“PMBOK Guide”
A Guide to the Project Management Body of
Knowledge
• ® Project Management Institute (PMI)
ANSI/PMI 99-001
• Fourth Edition :2008
Project applications:
• Any project type
• Large teams and “team of 1”
• Flexible – in general/detail, formally/informally
ITTO Process Model
Knowledge base for Certification
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PMI’s “ITTO Process Model”
Input(s)
Tools &
Techniques
Process
Output(s)
T&T can be:
•
•
•
•
Methods
Checklists, templates, etc.
Software
Expert Opinion
Output of one process often becomes Input to another
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How Variable is “PM Process” Box?
Customer Expectations
Requirements
Constraints
Methods / Templates
References (PMBOK)
Expert Opinion
Miracle
Happens
Desired Result?
(e.g. New Product or Service)
Does variability in PM process affect quality of Desired Result?
Again, Deming says to look at what part?
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PM has 5 Process Groups
Are high-level phases in project life-cycle
Process Group
# Processes
Risk
2
20%
Initiate
“Ready”
Plan
“Aim”
26 (60%)
45%
Execute “Fire”
7
20%
Monitor & Control
7
10%
Close
2
5%
2/3 of risk can be addressed before Execution!
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Level of Risk
Project Risk Curve
Initiation
20%
Planning
45%
Execution
& Control
30%
Closing
5%
Project Elapsed Time
Reduce project risk = reduce variation in PM process
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Corrective Actions Curve
Time & Expense
Prevention
rather than
detection
Initiation
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Planning
Execution
15
Closure
Process Group 1. Initiation
Defines and authorizes the project
Identifies stakeholders and clarifies roles
Inputs:
• Business “trigger” – legislation, BOD resolution,
feasibility study, customer contract, SOW, etc.
Tools & Techniques:
• Lessons Learned from previous projects
• Expert opinion – PMO, consultants
• Project Mgt. Information System (PMIS)
Outputs:
• A: Project Charter
• B: Preliminary Scope Statement
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1A: Project Charter
Three purposes:
•
•
•
Formally establish project’s existence
Officially authorize start of project activities – spend time and $$
Provide common understanding of purpose (resolves “disputes”)
Identifies:
•
•
•
•
•
•
Who – project leadership
 Sponsor – provides resources
 Champion – acts as executive “cheerleader”
 Project Manager – directs activities and controls resources
What – chief result or deliverable, and its customer(s)
When – project time-line (usually milestone chart)
Why – business driver, need, opportunity, justification
How – Assumptions and Constraints
How much – cost estimate
Should include signatures of:
•
Sponsor, Project Manager, and chief Customer
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1B: Preliminary Scope Statement
Should include:
•
•
•
•
•
•
Description of result / deliverable(s)
Activities needed to produce result / deliverable
Entities involved in performing project (internal & external)
Known project boundaries – results, activities, resources,
etc. that are specifically excluded
Risks that may affect success of project
Stakeholder matters:

•



List of stakeholders and their roles – active participants, nonparticipants who are affected, interested observers, etc.
Expectations, stated and unstated!
Issues and concerns
Acceptance criteria
Should be signed
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Level of Risk
Project Risk After Initiation
Initiation
20%
reduction
Project Elapsed Time
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Process Group 2. Planning
Distinguish:
• Project
• Product of the project
Separate planning into:
A. Control/Management Planning
Usually done by project experts
Milestone: “Management Plan” or “Project Control Plan”
Documents how we run the project
B. Execution/Work Planning
Usually done by knowledge-area experts (Team Leads)
Milestone: “Execution Plan” or “Work Plan”
Documents how we create the project’s Output(s)
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Control Planning
ID activities that manage project
Milestone is “Control Plan” or “Management Plan”
Inputs
Initiation
PM Process
Control
Planning
Monitor
& Control
Execution
Planning
Execution
Outputs
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Closing
Control/Management Planning
Creates plan that controls project activities
Very similar from project to project
Inputs:
• Project Charter
• Preliminary Scope Statement
Tools & Techniques:
• Lessons Learned from previous projects
• Organizational resources – PMO, consultants
• Project Mgt. Information System (PMIS)
Outputs:
• Project Management Plan (aka “Control Plan”) –
how each of the Knowledge Areas will be managed
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2A. Project Management Plan
Covers “Knowledge Areas”
Scope Management:
•
•
How project scope will be monitored for expansion
(“creep”), shrinkage, and deviation
What change control process is – how changes are
submitted, approved, controlled, and communicated
Time Management:
•
•
•
How task begin-dates will be set and monitored
How task durations will be monitored
How schedule tracking will be performed
Cost Management:
•
•
•
How cost variances will be monitored
How budget tracking will be monitored
How contingency/reserve funds will be administered
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Project Management Plan, cont’d
Quality Management:
•
•
•
•
•
ID applicable regulations, standards, and guidelines
Define/clarify acceptance methods and criteria
How Quality Assurance (QA) will be provided
How Quality Control (QC) will be performed
How Corrective & Preventative Actions will be handled
Human Resources Management:
•
•
•
•
•
How appropriately skilled individuals, groups, or
organizations will be identified
How team members will be brought onto the team
How members will be oriented, trained, and qualified
How work performance will be measured / monitored
How members will be released when their work is
completed, or when it is unsatisfactory
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Project Management Plan, cont’d
Communication Management:
•
•
•
Identify content required by each stakeholder (group)
Identify timing of delivery (daily, monthly, as-needed)
Identify format and media preferences
Risk Management:
•
•
How project risks will be identified, analyzed, mitigated
What risk measures and triggers will be used, and how
they will be monitored
Procurement Management:
•
•
•
How specifications for goods & services are developed
How suppliers will be qualified and selected
How contracts will be managed
PM Plan tells how we’ll run the project
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Execution/Work Planning
ID activities that create product-of-project
Milestone is “Execution Plan” or “Work Plan”
Inputs
Initiation
PM Process
Control
Planning
Monitor
& Control
Execution
Planning
Execution
Outputs
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Closing
Execution/Work Planning
Plans activities that create product
Inputs:
•
•
Project Charter & Preliminary Scope Statement
Project Management Plan
Tools & Techniques:
•

•
•
Templates – industry or previous projects
Work Breakdown Structure (WBS)
Expert opinion / assistance
Project Management Information System (PMIS)
Outputs:
•
•
•
2A. Project Schedule
2B. Resource Plan
2C. Project Budget
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Work Breakdown Structure (WBS)
T&T for progressive breakdown of work
Can be presented graphically…
Italian Dinner
1 Appetizers
2 Entrée
1.1 Zupa
2.1 Red Side
1.2 Ensalada
2.2 Lasagna
1.3 Bread
2.2.1 Noodles
2.2.2 Meat Sauce
2.2.3 Cheese Mix
2.3 More Vino
1.4 Vino
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3. Dessert
3.1 Glacé
3.2 More Vino
Product Design to Production
1
2
dFMEA
APQP
2.1
2.2
CAD/CAM kick-off
Blueprint development
2.2.1
2.2.2
2.3
2.4
2.5
2.6
2.7
3
4
GD&T
Gaging kick-off
MS-Project uses
this numbering
scheme
pFMEA
Control Plan development
Tooling kick-off
Lean VSM
Work-Cell layout
Tooling verification
Production start
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Quality Improvement
1
2
3
4
5
Define specific scope
Identify tasks required
Assign work and create time-line
Perform work and report-out (on-going)
Implementation
5.1
Edit documentation
5.2
Re-PPAP to customer
5.1.1
5.1.2
5.1.3
5.1.4
6
6.1
6.2
pFMEA and Control Plan
Work-cell layout and Operator Instructions
VSM
Logistics: packaging, supply chain, PICS, etc.
Close the loop
Update Lessons Learned D/B
Final report-out to Sr. Management
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Project Risk After Planning
Level of Risk
Planning
45%
Initiation
20%
65% total
reduction
in risk
Project Elapsed Time
Decreasing risk = reducing probability of non-conformance
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Process Group 3. Execution
Perform tasks that produce result/deliverable
Inputs:
• Project Execution/Work Plan
• Task Schedule
• Resource Plan
• Budget
Tools & Techniques:
• Project Mgt. Information System (PMIS)
Outputs:
• Product, service, or results (e.g. a deliverable)
• Communications – issues, performance reports
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Process Group 4. Control
Monitor performance, and compare it to plan
Inputs:
• Project Control/Management Plan
• Product, service, or results (e.g. a deliverable)
• Work performance reports and information
Tools & Techniques:
• Risk triggers
• Issues tracking system
• Project Mgt. Information System (PMIS)
Outputs:
• Raised issues/concerns/problems
• Corrective or preventative actions
• Changes in scope, schedule, quality, etc.
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Process Group 5. Closure
Formally ends the project
Inputs:
• Product, service, or results (e.g. a deliverable)
• Work performance reports and information
• Invoices and receipts
Tools & Techniques:
• Project Mgt. Information System (PMIS)
Outputs:
• Released resources – people, equipment,
facilities, etc.
• Contract close-outs and settlements
• Project records, including “lessons learned”
• What should happen as result of these?
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Objective 3.
Present Information on
PMI Certifications – PMP
PMI Certifications
Several levels
PgMP
Program Management Professional
PMP
Project Management Professional
CAPM Certified Associate Project Manager
Also functional certifications, such as:
• Project technical support
• Project scheduling
• Project risk management
PMP Certification
• 4500+ hours of project leadership in past six years
• Take 35-hour prep class – on-line
• Pass four-hour exam with 82% score or better
• Get 60 PDUs (CE credits) every three years
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PMI Resources
PMI
www.pmi.org
www.pmi.org/CareerDevelopment/Pages/PMI/Credential
Overview.aspx
NE Indiana Chapter
www.pmi-neic.org
• Monthly meetings Sept – May
• Answer questions about certification
• Provide web-based prep class
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In Summary
Projects are a “production process”
They historically are not stable nor capable
• Exceed ELs/SLs on time and money
• Do not have predictable-quality outputs
Would benefit from use of PMBOK Guide
• “Recipe” for managing risk (aka variation)
• Emphasize prevention over detection & re-work
Who’s accountable for your project quality?
•
•
•
•
Identifying resources and best practices
Setting standards
Conducting audits of behavior and results
Facilitating continual improvement in maturity
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Questions?
Greg McCormick, PMP
glmccorm@earthlink.net
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