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PM 101

A Project Management Overview

byRoy T. Uemura, PMP, P.E., MBA Project Management Consultant

Project Professionals, LLC

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What is Project Management?

“The application of knowledge, skills, tools, and techniques to project activities to meet project requirements”

PMBOK Third Edition

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Why Interest in Project Management?Organizations are in constant state of change

Global competition Restructuring and mergers Technology revolutions (internet) Demand for shorter term results

These factors drive the need for Organizational change NEED TO WORK MORE EFFICIENTLY

Projects are the means to facilitate change

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Company’s Testimony “Having qualified Project Managers managing

projects is the single most important factor influencing our continued project delivery success.”

“Our current PM certification process will be focused exclusively on external PM programs administered by PMI and the Construction Management Association of America.”

Director and President of Regional Operations

Global Operations Project Delivery Leadership Team

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Why Project Management? Disciplined project management provides

Focal point for effective communications, coordination, and control

A Plan to assess progressEmphasis on time and cost performance

Project management provides the framework for methods, processes, monitoring and change control

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Benefits of Project Management Balanced competing demands Improves monitoring and control; providing

consistent method of tracking tasks and milestones

Expands communications among participants Refines projections of resource requirements Provides a mechanism for performance

measurement

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Benefits of Project Management Increases stakeholder trust and confidence Continuously improve projects

ControlChange managementImprove project success.

Identifies problem areas Clarifies project goals and project scope Quantifies project risk Prioritizes projects

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Benefits of Project Managementfor the Individual

Creates high visibility of project results Builds one’s reputation and network Develop portable skills and experience Provides more opportunities within and

outside of the company Potential for higher salaries

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Reasons for project failures

“The major cause of project failure is not the specifics of what went wrong … but rather the lack of procedures, … methodologies, … and standards for managing the project.”

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The “Gap”

Organizations don’t know how to establish and implement an effective Project Management System

Organizations know the importance of project management but don’t implement it – “knowing-doing” gap.

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Why Do Projects Succeed?

Supported by Senior management Project Management training provided User input Clear objectives Adequate funding and resources Consistent business priorities Valid assumptions Effective cross-functional teamwork

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What is a Project Manager?

“The person assigned by the performing organization to achieve the project objectives.”

PMBOK Third Edition

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The Adhoc Project Manager

Good engineer = good project manager(?) Supervising Engineer Subordinate Engineer Staff Engineer

No formal training in project management No experience in project management

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The “Adhoc” Project Manager Assigned as Project Manager with no formal

training in project management Isn’t fully supported by management nor by

the functional departments Isn’t empowered nor given full authority Has limited financial project responsibilities

BUT … Expected to complete projects on time and

within the budgeted amount. Meet customer expectations

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Project Management Institute (PMI)

PMI establishes project management standards and advances the body of project management knowledge.

PMI’s PMBOK (Project Management Body of Knowledge) is regarded as the de facto global standard for project management.

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Project Management Institute (PMI)

The PMI is the world’s leading not-for-

profit professional organization for project

management knowledge, information, and

professionalism

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PMI’s A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Third Edition

Project Management StandardsProject Management Standards

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PMBOK Guide

“Generally accepted, widely recognized document that is repeatable in use, developed by consensus and approved by a recognized body, that summarizes knowledge or practice in project management and is an acknowledged measure of comparison for quantitative or qualitative evaluation.”

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PMBOK Guide Contents

Project Management Framework Project Life Cycle Project Stakeholders Organizations

Standards for Project Management of a ProjectProject Management ProcessesProcess Interaction

Project Management Knowledge Areas

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PMBOK Guide - PurposePMBOK is the foundation for professional development programs including: Project Management Professional (PMP)

Certification Project management education and training

offered by PMI Registered Education Providers (R.E.P.s)

Accreditation of educational programs in project Management

PMBOK Third Edition

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PMBOK designated as a standard by the American National Standard Institute (ANSI)

Project Management StandardsProject Management Standards

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PMI’s Project Management Professional (PMP®) Certification Program

PMP®

Project Management CertificationProject Management Certification

Passed ISO 9001:2000 renewal audit

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Individual Benefits of PMP Certification

Provides professional/personal recognition Expedites professional develop advancement Creates job growth /opportunities within an

organization Provides framework for standardized project Increases employee’s value to the

organization

PMBOK Third Edition

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Project Life Cycle Dividing projects into phases to

provide better management control. The phases are connected from the

beginning to the end of the project. Collectively these phases are known

as the project life cycle

PMBOK Third Edition

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Project Management Process Groups

Initiating Process Group Planning Process Group Executing Process Group Monitoring and Controlling Process

Group Closing Process Group

PMBOK Third Edition

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Project Management Process Groups

Initiating Process Group: Defines and authorizes the project or project phase

Planning Process Group: Defines and redefines objectives and plans the course of action required to attain the objectives and scope that the project was undertaken to address

PMBOK Third Edition

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Project Management Process Groups

Executing Process Group: Integrates people and other resources to carry out the project management plan for the project.

Monitoring and Controlling Process Group: Regularly measures and monitors progress to identify variances from the project management plan so that corrective action can be taken when necessary to meet project objectives.

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Project Management Process Groups

Closing Process Group: Formalizes acceptance of the product, service or result and brings the project or project phase to an orderly end.

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Project Management Process Groups

Monitoring & Controlling Processes

InitiatingProcess

PlanningProcess

ExecutingProcess

ClosingProcess

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Project Management Process Groups

The Process Groups are NOT project phases.

PMBOK Third Edition

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Project Life Cycle Phases

The transition from one phase to another generally involves a deliverable.

Deliverable from one phase is approved before work starts on the next phase.

The project life cycle goes through a series of phases to create the product.

PMBOK Third Edition

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Project Life Cycle

Plan Design Procure

The project management

process can be deployed against each phase of the project life cycle Initiating

ProcessPlanningProcess

ExecutingProcess

ClosingProcess

Monitoring & Controlling Process

Construct

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PMBOK Guide – Knowledge Areas Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Project Procurement Management

PMBOK Third Edition

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Integrated Project Management Processes

1. Develop Project Charter2. Develop Preliminary Project Scope Statement3. Develop Project Management Plan4. Direct and Manage Project Execution5. Monitor and Control Project Work6. Integrated Change Control7. Close Project

PMBOK Third Edition

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Triple Constraints

Managing competing project requirements:1. Project Scope2. Time3. Cost

Project quality is affected by balancingthese three factors

PMBOK Third Edition

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Triple Constraints

Quality

Time

Scope

Cost

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Progressive Elaboration

Developing in steps, and continuing by increments.

Example: Project scope will be broadly described early in the project and made more explicit and detailed as the project team develops a better and more complete understanding of the objectives and deliverables

Not to be confused with “scope creep”.PMBOK Third Edition

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Projects and Strategic Planning

Projects are authorized as a result ofthe following strategic considerations Market demand Organizational need Customer request Technological advance Legal requirement

PMBOK Third Edition

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Prioritizing Projects

Rank the projects in the order that

gives the most value to the Corporate

Strategic Objectives

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Stakeholder Participation Influence on the project and

its outcome Have skills and knowledge Create an environment in

which stakeholders can contribute appropriately

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Project Stakeholders Stakeholders are the people

involved in or affected by project activities

Stakeholders include the project sponsor and

project team support staff customers users suppliers opponents to the project

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Project Initiation

Commit the organization to a project Sets the overall solution direction Defines the high-level project objectives Secures necessary approvals and resources Validates alignment with organization

objectives Assigns a project manager

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Project Scope Statement

1. Project Objectives2. Product Scope Description3. Project Requirements4. Project Boundaries5. Project Deliverables6. Project Acceptance Criteria7. Project Constraints8. Project Assumptions

PMBOK Third Edition

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Project Scope Statement9. Initial Project Organization10. Initial Defined Risks11. Schedule Milestones12. Fund Limitation13. Cost Estimate14. Project Configuration Management15. Project Specifications16. Approval Requirements

PMBOK Third Edition

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Planning Process

A formal, approved document used to Guide project execution Documents planning assumptions Documents planning decisions regarding

alternatives chosen Facilitates communications among

stakeholders Define key management reviews Provide baseline for progress measurement

and project control

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Project Plan Project Scope Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Process Improvement Plan Staffing Management Plan Communication Management Plan Risk Management Plan Procurement Management Plan

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Work Breakdown Structure (WBS)

Defines the total scope of work by

subdividing the deliverables and

project work into smaller, more

manageable components.

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WBS Purpose

Prerequisite to: Schedule Resource Planning Cost Estimating Cost Budgeting Risk Identification

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Planning Process

WBS

Scope

Definition

Cost Budget

Project Plan

Risk MgtPlan

ActivityDefinition

ActivitySequencing

ScheduleDevelopment

ResourcePlanning

Estimating

List of Activities Network Diagram Project Schedule

Resource Requirements

Activity Duration & Cost Est.

Cost Baseline

Risk Response

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Staffing Plan

Staffing requirements Roles and Responsibility assignments

Responsibility Assignment Matrix (RAM) Staff Management Plan Organizational Chart Staff acquisition Team Development

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Duration CompressionShortens project schedule without changing project scope.

Crashing – Obtain the greatest compression for the least incremental cost (normally adding more resources). Often results in increased project cost.

Fast Tracking – Doing activities in parallel that would normally be done in sequence. Increases project risks and often results in rework.

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Cost Estimating Accuracy Accuracy increases as project progresses

through the project life cycle. If performing organization does not have

formally trained project cost estimators, it needs to supply both the resources and the expertise to perform project cost estimating

PMBOK Third Edition

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Accuracy of Cost Estimating

Accuracy increases as project progresses

through project life cycle. Initiation Phase - Rough Order of

Magnitude: - 50% to + 100% Planning Phase – Definitive: -10% to

+15%

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Decision Making Process

Revise Scope of Work Cancel project Accept cost and proceed

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Project Quality Management

Quality Planning Perform Quality Assurance Perform Quality Control

PMBOK Third Edition

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Risk Management

What is Project Risk?

An uncertain event or condition that, if it occurs, has a positive or a negative effect on a project objective.

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Project Risk Management Processes

1. Risk Management Planning2. Risk Identification3. Qualitative Risk Analysis4. Quantitative Risk Analysis5. Risk Response Planning6. Risk Monitoring & Control

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Monitoring and Controlling Process

“To keep the project on track in

order to achieve its objectives as

outlined in the Project Plan”

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Purpose

Monitors and reports variances Controls scope changes Controls schedule changes Controls costs Controls quality Responds to risks

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Tools & Techniques Status reporting Progress reporting Forecasting Performance Reviews Variance Analysis Trend Analysis Earned Value Analysis Information Distribution

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Integrated Change Control

Maintaining the original project scope and

performance baselines by continuously

managing changes, either by

1. Rejecting new changes

2. Approving changes and incorporating them into a revised project baseline

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Cause and Effect

If workload increases, then quality decreases

If quality decreases, then cost increases

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Triple Constraints

Quality

Time

Scope

Cost

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Project Closing Process

Formalizes acceptance of the product,

service or result and brings the project

or a project phase to an orderly end.

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Sample Closing Activities Lessons Learned Acceptance of products or services Collecting all project records Product specifications met Assessing product quality Performance appraisals and assist in transfer

of project team members Celebration

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Interpersonal Skills

leads to

Higher Performance Teams

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Develop Project Teams

Objectives: Improve skills of team members Improve trust and cohesiveness

among team members High performance team

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Develop Project Teams

Provide training to enhance their competencies

Provide expectations of team Team building activities Co-location Recognition and Rewards

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High Performing Management Skills

Creating synergy among team members

Fostering the interdependence of team members

Using high productive team members as mentors for other members

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Caution Projects fail because of people, not

technology If team not working well together, take

the appropriate action Just like defects … the sooner the

solution, the less expensive the solution, and the more likely it is effective.

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High Performance Team Clear and shared vision Highly motivated members Open to new ideas Able to manage change Well aware of their environment Can assess and adjust priorities Constantly getting feedback Celebrate others’ achievements Clean and effective communication styles

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Working with People Issues

Strong leadership helps projects succeed

Project managers should use empowerment incentives discipline negotiation