1

Why is project Management important?

How is this course going to help me?

2

Why Should I Study Project Management?

1. All functions in a business will perform Projects.

2. Everyone in a business will participate in or lead a project.

3. Most Projects are not completed on time and on budget.

4. Can have a significant impact on the future of your business and your job.

5. Change in an business is constant; Project Management helps implement the change

3

Why should Business Programs offer a Project Management Course?

1. Control of scope creep and manage change2. Deliver Project Results on time and on budget3. Focus the Project Team on the Solution4. Obtain Project buy-in from Disparate Groups5. Define the Critical Path to Optimally Complete Your

Project6. Provide a Process for Estimating Project Resources,

time and costs7. Communicate Project Progress, Risks and Changes8. Surface and explore Project Assumptions9. Prepare for Unexpected Project Issues10. Document, Transfer and apply Lessons Learned from

your Projectshttp://www.bizmanualz.com

4

Projects

Characteristics

• Unique

• Finite time frame

• Common elements

• Requires planning of events over time

• Priorities

• Monitoring

• Budget

• Finite resources

5

Key Decisions

Deciding which projects to implement• ROI, Resources, Availability of funds, Time constraints, etc

Selecting the project manager• Ultimate responsibility for the success or failure of the project

Selecting the project team• Requirements of project, Availability of personnel, budget

Planning and designing the project• Resources, budget, timetable, experience, outsourced vs in-house

Managing and controlling project resources• Budget, establishing intermediate & final milestones, effective monitoring system, effective information distribution, accountability, well defined deliverables.

Deciding if and when a project should be terminated• Completion of tasks, elapsed time, depletion of resources

6

• Develop comprehensive schedules for all aspects of the project.

• Manage and monitor the project schedule baseline.

• Provide necessary input on scope control, dependency tracking and workflow maintenance.

• Identify and suggest ways to minimize risks.

• Create milestone checklists and monitor team progress.

• Participate in interviews.

• Prepare feedback on the performance of all team members for quarterly reviews.

• Prepare a weekly detailed status report for VP.

Project Manager Responsibilities

Volition, INC ad for Project Manager

News Gazette 17 Sept 2006

7

Project Manager Skills

Skills • Team building, scope planning and risk management.

• Managing large cross-discipline teams

• Written and oral communication skills

Challenges• Develop and motivate team of members which you have no

direct control

• Make trade-off decisions of technical nature outside your

area of expertise

• Maintain a budget and timeline as members may be

working other projects

• Perform tasks with the spotlight on you.

8

Why do Projects Fail?

• Failure to establish upper management commitment to project.

• Lack of organization’s commitment to development methodology.

• Taking shortcuts around the system development methodology.

• Poor expectations management (Scope Creep & Feature Creep).

• Premature commitment to a fixed budget and schedule.

• Poor estimating techniques.

• Over-optimism.

• Solving problems by adding more resources.

• Inadequate people skills

• Failure to adapt to business change

• Insufficient resources

• Failure to manage the plan

9

Risk Management

Risks are inherent in projects.

Key to risk management is to identify the potential risk during the definition phase and develop contingency plans.

Step One: Identify the Risks• Brainstorming, expert knowledge, consulting

Step Two: Determine probability of occurrence and consequences

• Experience, simulations, • Use both quantitative and qualitative approaches

Step Three: Develop contingency plans • Redundant systems• Assign additional slack time• Set aside additional funds

10

Planning and Scheduling

Gantt Chart

Tasks 8 9 10 11 12 1 2 3 4 5 6

Make Breakfast Read Paper1st load wash2nd load washRead articleGrade papersMow GrassGet Groceries

• Shows events• Shows duration• Simple• Does not show priorities• Does not define how a delay in one event impacts the overall schedule

11

Advantages and Limitations

Pros1. Forces the manager to organize & quantify event information2. Provides a graphical display of the project3. Identifies which activities should be closely watched.4. Helps define impact on project of any delays5. Allocation of resources.

Cons1. Only as good as the detail & integrity of data2. Works only if reviewed regularly3. Time estimates can be misleading

12

Activity 1- Project Definition

Project Objective: What, when and how much

Deliverables: Specific outcomes for each stage or milestone or review

Milestones: Major segments of the project

Technical requirements: Specific metrics which a deliverable must satisfy

Limits and Exclusions: What the project will not do

Reviews with Customers: Define frequency, provide direction, coincide with milestones & deliverables

13

Activity 2 – Establish Priorities

Project Priority Matrix can help a Project Manager in making tradeoffs.

Time Performance Cost

Constrain

Enhance

Accept

Constrain: This factor must be meet, no compromise

Enhance: Optimize but can vary

Accept: Not meeting target is OK, within limits

14

Activity 3: Establish Communication Plan

How to communicate status, changes, and performance

1. Identify Stakeholders

2. Define information required by each stakeholder

3. What are the sources for each form of information

4. Method of getting the information to the stakeholders

5. Who is responsible for placing the information in the correct

format and delivering it to the stakeholders.

6. What is the frequency of the information.

1515

Chap 4

Activity 4: Creating the Work Breakdown Structure

Hierarchical approach of dividing the work by types; allowing a framework to track cost and work performance

Types: Frame, Plumbing, Electrical, Landscaping, HVAC, Drywall, Flooring

WBS follows the project structure not the functional organization

Output Oriented

Deliverables

Sub-deliverables :

Sub-deliverables

Cost Account

Work Packages

Costs rolled up

Com

munication

16

Typically, WBS is coded beginning with Completed project and then indented until all Work Packages have been identified

Other forms of coding can be used to reflect different project structures. - Locations, functional depts, product type, customer, year, etc

WBS Example

17

Project Mgr

Structural

ConcreteFramingMasonry

Interior

DrywallMuddersFinishingflooring

Plumbing

Water/SewerGas

Electrical

HookupOutletsWiringFixtures

Info Tech

Accounting

Marketing

Purchasing

Trucking

Project Oriented Structure

Activity 5: Organizational Breakdown Structure (OBS)

18

Activity 6: Creating a Work Package

1. Define work• Detail events• Specific deliverable(s)

2. Identify time to complete

3. Identify a time phased budget to complete

4. Identify a single person responsible for unit of

work

5. Identify monitoring points for measuring progress• How to measure a successful deliverable

Lowest unit of WBS; This is where all the tasks are accomplished

19

Activity 7 – Estimate Task Durations

PERT: Program Evaluation and Review TechniqueCPM: Critical Path Method

Characteristics:• Graphical display of project activities• Estimates how long to completion of project• Identifies most critical activities• Defines how a delay impacts the overall schedule• Can be used with deterministic or probabilistic data

PERT developed for use on Polaris missile project in 1950’s

• originally focused on use with probabilistic data

CPM developed for use on building chemical plants.

• Original focus on use with deterministic data

PERT and CPM terms are now used interchangeably.

20

Activity 8 – Specify Inter-task Dependencies

Link Subtasks• Finish-to-Start• Start-to-Start• Finish-to-Finish• Start-to-Finish

Scheduling• Forward Scheduling

Start at the beginning and work forwardAnswers the question: When do I complete the project?

• Reverse SchedulingStart at the end and work backwardsAnswers the question: When should I begin the project?

21

Network Diagrams

• Depicts major project activities and their sequential relationships

• Path is the sequential set of activities to go from the beginning of the diagram to the end .

• A diagram has multiple paths

• Activities (or events) can be depicted on the diagram as:• Node (Activity on Node):representative of completing a task at a single location. The node elapsed time says when to move to the next node.

• Arrow (Activity on Arrow): representative of a trip. The activity begins when the task starts at one node then takes a given elapsed time to arrive at next node.

22

Critical Path

• The path that takes the longest time to complete is

referred to as the

Critical Path.

• Any reduction in project time must come from a CP

event.

• Slack is the difference between the critical path

and any other path.

• The slack can be used for one or more tasks on the

non-Critical Path.

• There is no slack on the Critical Path

23

Activity 9 – Assign Resources

What personnel is involved?Name, Dept, Cost, Time available

What material will you need?Type, Cost, amount per time or event

Assign Resources to subtasks

Resource Leveling?

Critical Path?

Slack Time?

24

Activity 10 – Monitor and Control Progress

Reports: Budget Time Scope Resource conflicts

Change ManagementBuy-in by all impactedImpact on costImpact on timeChange Coordination Team

25

In this course we will assume that all the work has been complete up to the development of Work Packages.

We will use MS Project 2013 to implement the project using the data found in various examples of a project.

The following classes will: - Show how to setup a project - Enter Data - Add and define resources - Assign and resolve resource conflicts - Update and baseline a project - Develop various reports - How to Manage multiple projects

Course outline

27

Project Manager

Areas of responsibility• Scope of work• Human resources• Communications• Quality• Time• Costs

Skills• Effectively communicate scope of work• Motivate and direct team members• Make trade-off decisions• Expedite the work when necessary• Put out fires• Monitor time, budget and technical details• Employ strong leadership when tasks have a higher degree of uncertainty

Challenges• Develop and motivate team of members which you have no direct control• Make trade-off decisions of technical nature outside your area of expertise• Maintain a budget and timeline as members may be working other projects• Perform tasks with the spotlight on you.

28

Deterministic Time Estimates

Steps1. Calculate the length of each path2. Determine the critical path3. Determine the expected length of the project4. Define slack time for each activity

• Compute ES, LS, EF, LF for each activity

Algorithms

Early Start (ES):

Early Finish (EF): ES + t

Late Start (LS): LF - t

Late Finish (LF):

Slack (SL): LS - ES or LF - EF

29

Example - Deterministic

Activity Description Time Precedence A Prepare BOM 1 - B Prep assembly charts 3 A C Order & await delivery of materials 7 A D Organize production line 2 B E Specify inspection procedures 1 B F Setup inspection stations 2 D,E G Train workers 3 D H Assemble product 7 C,F,G

Find ES, EF, LS, LF, Slack, CP and project duration.

30

A

C

B

E

D

F

G

H

Deterministic Precedent Diagram

1 3

7

21

3

27

Paths:A-B-D-G-H = 1+3+2+3+7 = 16A-B-D-F-H = 1+3+2+2+7 = 15A-B-E-F-H = 1+3+1+2+7 = 14A-C-H = 1+7+7 = 15

CPSlack: 0 1 2 1

31

Probabilistic

When the task time to complete varies. Uses a BETA distribution to evaluate

Uses estimates of:Most optimistic (a)Most likely (m)Most pessimistic (b)

Algorithms:Expected event time to complete: te = (a +

4m + b) / 6

Variance (2e): = (b - a)2

/ 36

Expected path time to complete: t path = t e

Path Variance(path): = 2e

32

Probabilistic Example

Activity Description a b m Prec A Prepare BOM 0.6 1.8 0.9 - B Prep assembly charts 2.0 4.0 3.0 A C Order & await delivery of materials 5.0 9.0 7.0 A D Organize production line 1.2 3.6 1.8 B E Specify inspection procedures 0.7 1.3 1.0 B F Setup inspection stations 1.0 5.0 1.5 D,E G Train workers 2.0 3.6 3.1 D H Assemble product 6.0 8.0 7.0 C,F,G

Find:te , e, t path , path, SLACK, CP

Finding ES, LS, LF, EF & Slack is the same as deterministic.

Finding the probability that project will complete in time t Algorithm: Z = (t - t cp ) / cp

Find P(Z) using normal distribution table.

Probability that the project will not be completed is 1 - P(Z)

Te e, 1 0.043 0.117 0.442 0.161 0.012 0.443 0.077 0.11

33

Probabilistic Precedent Diagram

Calculation time SigmaA 6/6 1 0.04B 18/6 3 0.11C 42/6 7 0.44D 12/6 2 0.16E 6/6 1 0.01F 12/6 2 0.44G 18/6 3 0.07H 42/6 7 0.11

Z = (t – tcp )/ cp

cp = ( )0.5

= (.04+.11+.16+.07+.11)0.5 = 0 .70Z = 17 – 16)/.7 = 1.42; P(Z) = .92

A

C

B

E

D

F

G

H

Z = 16 – 16/.7 = 0 P(Z) = .5

34

Crashing - Example

ACTIVITY REG CRASH MAX NCOST CCOST Premium/DAY A 1 1 0 100 100 - B 3 2 1 400 650 250 C 7 4 3 600 975 125 D 2 1 1 150 300 150 E 1 1 0 120 120 - F 2 2 0 300 300 - G 3 2 1 300 500 200 H 7 4 3 800 1250 150

Incentive: $300 per day

35

A

C

B

E

D

F

G

H

Deterministic Precedent Diagram

Paths:A-B-D-G-H = 1 + 3 + 2 + 3 + 7 = 16

A-B-D-F-H = 1 + 3 + 2 + 2 + 7 = 15

A-B-E-F-H = 1 + 3 + 1 + 2 + 7 = 14

A-C-H = 1 + 7 + 7 = 15

1/ $250

1/ $125

1/ $150

1/ $200

3/ $150

Incentive $300/day

Savings:

H – 3 days

13

12

11

12

$450

D– 1 day

12

11

11

12

$150

C&G – 1 days

11

11

11

11

$ -25

36

Crashing A Project

Characteristics Costs of crashing' Shortening of completion time Benefits of crashing Effective reduction only when critical path is reduced

Steps Identify regular time and costs Identify crashing time & costs Identify critical path(s) Find the minimal crashing cost on the critical path Subtract the associated time from the event on the critical path Recalculate the cost and time to complete Redefine critical paths Continue until the all the available crashing time has been used Select the min cost

Note: If there are more than one critical path then an equal amount of time must be removed from each critical path.