Project Management Overview

Value of Project Management

• Improve overall performance in time, cost, and technical areas

• Focus on customer’s needs & satisfaction• Establish single point of contact and

accountability for a project• Manage project scope, control change, and risk• Maximize efficient use of resources• Positive impact on internal morale

Project Defined

“A project is a temporary endeavor undertaken to create a unique product or service.”

PMBOKTM

– It is a temporary endeavor with a definite beginning and a definite end.

– It is unique – the product or service is different in some way from similar products or services.

Project Defined

“A project is a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.”

Source: Clifford Gray & Erik Larson, Project Management

Project Management

• Formal definition– The application of knowledge, skills, tools, and

techniques to project activities to meet project requirements. (PMBOKTM)

• Operational definitionGetting the job done

– On time

– Within budget

– According to specifications

The Project Manager

• Perform many of the same functions as other managers.

• “The project manager is unique because she/he manages temporary, non-repetitive activities and frequently acts independently of the formal organization.”

• “Project managers are the direct link to the customer and must manage the interface between customer expectations and what is feasible and reasonable.”

Source: Clifford Gray & Erik Larson, Project Management

The Project Manager

• “Project managers are responsible for performance (frequently with too little authority.”

• “At the same time, unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge to make decisions.”

Source: Clifford Gray & Erik Larson, Project Management

Project Life Cycle

• “The life cycle recognizes that projects have a limited life span and that there are predictable changes in level of effort and focus over the life of the project.”

• There are a number of different life cycles found in the literature.

Source: Clifford Gray & Erik Larson, Project Management

I.S. Project Life Cycle

• A software development project may consist of five phases:– Definition– Design– Code– Integration/Test– Maintenance

Source: Clifford Gray & Erik Larson, Project Management

Typical Project Life Cycle

• The project life cycle typically passes sequentially through four states:– Definition– Planning– Execution– Delivery

Source: Clifford Gray & Erik Larson, Project Management

Typical Project Life CycleL

evel

of

Eff

ort

1. Goals

2. Specifications

3. Tasks

4. Responsibilities

5. Teams

1. Schedules

2. Budgets

3. Resources

4. Risks

5. Staffing

1. Status reports

2. Changes

3. Quality

4. Forecasts

1. Train customer

2. Transfer documents

3. Release resources

4. Reassign staff

5. Lessons learned

Definition Planning Execution Delivery

Project Management Institute

• Founded in 1969

• Establishes PM standards and publishes the Project Management Body of Knowledge (PMBOKTM)

• Provides professional (PMP) certification

PMBOKTM

• Describes the concepts, skills, and techniques unique to the project management profession

• Identifies the knowledge that project managers should have to effectively management projects

Nine PM Knowledge Areas

• Project integration management• Project scope management• Project time management• Project cost management• Project quality management• Project human resources management• Project communication management• Project risk management• Project procurement management

Assignment

• Review information on PMI’s PMBOK by going to www.pmi.org/publictn/pmboktoc.htm

• Explore links that PMI provides. What do these links tell you about the nature and future of project management?

Project Charter

• Formally recognizes the existence of a project

• Establishes a purpose and vision

• Charter is generally issued by senior-level manager – often the project sponsor

Project Charter

• Charter provides the project manager with the “authority” to obtain organizational resources for project activities

• Provides high-level or summary schedule of targets

• Provides an order-of-magnitude budget estimate

Scope (Mission) Statement

• Defining the project scope sets the stage for developing a project plan.

• Project scope is a definition of the end result or mission of your project.

• Primary purpose is to define as clearly as possible the deliverable(s) for the end user and to focus project plans.

Source: Cliffford Gray & Erik Larson Project Management

Project Scope Checklist

• Project objectives• Deliverables• Milestones• Technical requirements• Limits and exclusions• Reviews with customer

Source: Cliffford Gray & Erik Larson Project Management

Project Objective

To construct a high-quality, custom home within five months at cost not to exceed $150,000

Deliverables

• A 2,200-square-foot, 2 ½ bath, 3-bedroom, finished home.

• A finished garage, insulated and sheet rocked.

• Kitchen appliances to include range, over, microware, and dishwasher

• High-efficiency gas furnace with programmable thermostat.

Milestones

• Permits approved – March 5

• Foundation poured – March 14

• Dry in. Framing, sheathing, plumbing, electrical, and mechanical inspections passed – May 25

• Final inspection – June 7

Technical Requirements

• Home must meet local building codes

• All windows and doors must pass NFRC class 40 energy ratings.

• Exterior wall insulation must meet an “R” factor of 21.

• Ceiling insulation must meet an “R” factor of 38.

Technical Requirements – Cont.

• Floor insulation must meet an “R” factor of 25.

• Garage will accommodate two large-size cars and one twenty-foot Winnebago motor home.

• Structure must pass seismic stability codes.

Limits & Exclusions

• The home will be built to the specifications and design of the original blueprints provided by the customer.

• Owner responsible for landscaping.• Refrigerator is not included among kitchen

appliances.• Air conditioning is not included, but pre-

wiring is included.

Limits & Exclusions – Cont.

• Contractor reserves the right to contract out services.

• Contractor is responsible for subcontract work.

• Site work limited to Monday through Friday, 8:00 a.m. to 6:00 p.m.

• Contractor will provide fencing around any open excavation when no site work is being performed.

Customer Review

• John and Joan Smith

Establishing Project Priorities

• Quality and the ultimate success of a project are traditionally defined as meeting and/or exceeding the expectations of the customer and/or upper management in terms of cost (budget), time (schedule), and performance (scope) of the project.

• The interrelationship among these criteria varies.

Establishing Project Priorities

• One of the primary jobs of the project manager is to manage the trade-offs among time, cost, and performance.

• One technique that is useful for this purpose is completing a priority matrix that identifies which criterion should be:

– Constrained

– Enhanced

– Accepted

Constrain

The original parameter is fixed. The project must meet the completion date, specifications and scope of the project, or budget.

Enhance

Given the scope of the project, which criterion should be optimized? In the case of time and cost, this usually means taking advantage of opportunities to either reduce costs or shorten the schedule. Conversely, with regards to performance, enhancing means adding value to the project.

Accept

For which criterion is it tolerable not to meet the original parameters? When trade-offs have to be made, is it permissible for the schedule to slip, to reduce the scope and performance of the project, or to go over budget?

Project Priority Matrix

Time Performance Cost

Constrain

Enhance

Accept

Types of Project Organizations

• Functional

• Matrix

• Task force

EM-795

PURPOSE OF WBS

• Detailed planning can be performed

• Costs and budgets can be established

• Objectives can be linked to available resources in a logical manner

• Specific authority and responsibility can be assigned

IT IS TO STRUCTURE AN ASSIGNED PROJECT INTO VARIOUS ACTIVITIES IN ORDER THAT:

EM-795

WORK BREAKDOWN STRUCTURE

• Can be developed using a top-down or bottom-up approach

• Can be hardware-related, function-related, or a combination

• Depth of WBS must balance out management effort against planning accuracy (influences technical and cost control)

• For accuracy purposes the WBS should be taken down several levels

• The WBS must be structured for objective control & evaluation

Work Breakdown Structure (WBS)

• The total program can be described as a summation of subdivided elements.

• Planning can be performed.• Costs and budgets can be established.• Time, cost, and performance can be

tracked.• Objectives can be linked to company

resources in a logical manner.• Schedules and status-reporting

procedures can be established.

Work Breakdown Structure (WBS) (Continued)

• Network construction and control planning can be initiated.

• The responsibility assignments for each element can be established.

EM-795

• Have clearly defined start dates• Have clearly defined end dates• Must be able to be used as a

communicative tool in which you can communicate the expected results

• Be estimated on a “total time duration” not when the individual activities start or end

• Be structured so that a minimum of project office control and documentation (i.e. forms) are necessary

IN SETTING UP A WORK BREAKDOWN STRUCTURE THE ACTIVITIES MUST:

EM-795

Most common type: Six-Level Indentured Structure

LEVEL DESCRIPTION1 Total Program2 Project(s)3 Task(s)4 Subtask(s)5 Work Package(s)6 Level of Effort

WORK BREAKDOWN STRUCTURE (WBS)

WBS Tasks• Have clearly defined start and end dates• Be usable as a communications tool in

which results can be compared with expectations

• Be estimate on a “total” time duration, not when the task must start or end

• Be structured so that a minimum of project office control and documentation (i.e., forms) is necessary

Agenda

• Introduction to Projects and Project Management

• What Can MS Project 2000 Do?• Navigating MS Project 2000• What are tasks and how detailed should

they be?• A brief lesson on estimating• Entering and Organizing Tasks

Agenda - Continued

• Setting up Resources

• Assigning Resources to Tasks

• Pull it all together and practice what you learned

• Getting Project Information to look the way you want it to

• Printing Project Information

Advanced Agenda

• Time permitting..– Tracking Progress– Viewing and Reporting Project Status– Identifying and fixing problems in your project– Customizing Microsoft Project

Introduction to Projects

• Goals:– Understand what projects are and how they

differ from ongoing operations– Define projects in terms of the project triangle– Apply the features of Microsoft Project 2000 to

both the planning and the executing phases of projects

What is a Project?

• PMBOK defines a project as –– “A temporary endeavor undertaken to create a unique

product or service.”

• A project is temporary – It has a defined start and end date

• A project is a planned endeavor• Creates a unique product or service – has a

deliverable• Microsoft Project is designed to help organize and

manage “projects” not ongoing operations

The Project Triangle

• The Magic Triangle• Project Attributes

– Resources (Cost)

– Features (Scope)

– Schedule (Time)

Res

ourc

es

Res

ourc

es

Schedule

Schedule

FeaturesFeatures

What Can MS Project Do?• Track all the information you gather about the work,

duration, and resource requirements for your project• Visualize your project plan in standard, well defined

formats• Schedule tasks and resources consistently and

effectively• Exchange project information with all stakeholders

over an intranet or the Internet• Communicate with resources and other stakeholders,

while leaving ultimate control in the hands of the project manager

Navigating MS Project

• Goals:– Start Microsoft Project and Create a project file based

on a template

– Use and customize menus and toolbars

– Display different views and tables

– Create a project file and enter a project start date

– Enter properties about the project file

– Save a project file and set options about saving files

Navigating MS Project

• Microsoft Project is very similar to what you see in Microsoft Word, Excel, and Access– General menu and toolbar organization

• Access to the same online help tools are available– Office Assistant

– ToolTips

• Although it is similar in presentation, what you do is very distinct from other Office Programs

Navigating MS ProjectView Bar

Title Bar

Menu Bar

A View

Standard and Formatting Toolbars

Popular PMIS Packages

• Microsoft Project

• Project Scheduler

• Welcom

• Trakker

• Primavera

• Artemis

Risk SourcesRisks can come from many sources

– Mission and goals– Decision drivers or organizational management– Customers or end users– Budget, cost, schedule, and personnel– Project characteristics – Development process and environment– Operational environment– New technology

Risk ImpactsRisk can affect a project in a variety of ways

– Cost overruns and schedule slips– Inadequate functionality– Canceled projects– Sudden personnel changes or demoralized staff– Customer dissatisfaction – Damage to company image– Poor product performance– Legal problems

Risk Management

• Identifying, analyzing, and responding to events that may have a negative impact on your project

• Risk vs. Issue

Why do Risk Management?

• Reduce the likelihood of event from occurring

• Reduce the magnitude of risk impact

• Control or influence possible future events

• Be proactive

• Increase understanding of the project

Risk Management Processes*

• Risk Management Planning

• Risk Identification

• Qualitative Risk Analysis

• Quantitative Risk Analysis

• Risk Response Planning

• Risk Monitoring & Control

*PMBOK® 2000

Risk Concepts - What is Risk?

• The probability that something bad will happen if something is not done

• The potential for problems to occur in the process of creating a final deliverable

• An uncertain event or condition that would have a positive or negative effect

• Includes both the threats to project’s objective AND opportunities to improve on those objectives

Risk vs. Issues

• Risk– Possibility of loss

– Something that endangers the ability of a project to complete per the project charter, project plan, on time, and on budget.

• Issue– When something is

preventing progress on a project task

– An occurrence of a risk

How Does a PM Know When There is Project Risk?

1 Project sponsor does not recognize that every project is an exercise in risk.2 There is a feeling of uneasiness3 Project scope and objectives and deliverables are not clearly defined or understood.4 A large number of alternatives are perceived as possible.5 Some or all technical data is lacking.6 The technical process (or design) are not mature.7 Standards for performance are unrealistic (the best there is for everything) or are absent.8 Costs, schedules, and performance are not expressed in ranges.9 Design lacks production engineering input.10 Prototype of a key element is missing.11 There is a higher than usual R&D component.12 Some or all environmental permits are outstanding13 A wide variation in bids is received14 The project team relies entirely on the contingency allowance.15 Someone starts ‘hedging their bets’.

Wideman

Risk Management Process

• Planning

• Risk Identification• Qualitative Risk Analysis

• Quantitative Risk Analysis

• Risk Response Planning

• Risk Monitoring and ControlPMBOK® , 2000

Risk Management Plan

• Describes how the processes of risk management will be performed in the project

• DOES NOT describe individual risks and the response to them (= risk response plan)

Risk Identification

• Determine which risks might affect the project

• Document those characteristics

• Iterative process

• Simple & effective risk responses could be developed & implemented as soon as identified

Qualitative Risk Analysis

• Identify severity of risk:– Assess the impact -the effect the risk will

have on the project if it occurs– Assess the likelihood -the extent to which

the risk effects are likely to occur

• Prioritize risks according to severity

• Should be done throughout the project

Tools for Qualifying Risks

• Risk Probability & Impact– define in terms of high, medium, low– Probability: likelihood that a risk will occur– Consequence: the effect on the project’s

objectives if the event occurs

• Probability/Impact Risk Rating Matrix

Outputs of Risk Qualification

• Overall ranking compared to other projects

• List of risks prioritized

• List of risks for additional analysis & management

• Trends in qualitative risk analysis results

Risk Ranking

• Which risks should be dealt with first?

• Position in risk matrix helps identify priority.

Risk Response Plan Options

• Avoidance - eliminate the possibility of risk

• Transference - the burden of the event

• Mitigation - reduce impact or probability

• Acceptance - be proactive in managing by assigning to a monitor

Terms

• Contingency Plan– Applied to identified risk that arise during the

project

• Contingency Allowance – Reserve in time, money, or resources to

account for a risk

Project Risk Mitigation

• DEFINE the actions to be taken to mitigate project risk (what you can control)

• Raise AWARENESS of Risks that can affect a project by communicating risks to those who can mitigate

• Develop a Risk Response Plan with actions, owners, target dates

Bibliography

• Kerzner, Harold, Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 6th Edition, John Wiley & Sons, Inc. 1998.

• A Guide to the Project Management Body of Knowledge (PMBOK ® Guide), 2000 Edition, Project Management Institute, 2000.

• Martin, Paula and Karen Tate, Project Management Memory Jogger, GOAL/QPC, 1997.

• Meredith, Jack R. and Samuel J. Mantel, Jr., Project Management: A Managerial Approach, 4th Edition, John Wiley & Sons., 2000.

• Mulcahy, Rita, PMP Exam Prep, Rita Mulcahy, PMP, 1999

• Newbold, Robert C., Project Management in the Fast Lane: Applying the Theory of Constraints, CRC Press LLC, 1998.