NASA Apollo Program1961 - 1972

Project Management Basics.

DI Alexander Skotnik, PMP®, zPM

00 | Basics

What it is all about

Empire State Building1930 - 1931

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5 Project Management Truths

A project is one small step for the project sponsor, one giant leap for the project manager.

If everything is going exactly to plan, something somewhere is going massively wrong.

The first 90% of a project takes 90% of the time the last 10% takes the other 90%.

If you don't know how to do a task, start it, then ten people who know less than you will tell you how to do it.

Bad news does not improve with age and should be acted upon immediately.

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Source: Mike Harding Roberts | Project Management Truths

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How Important is Project Management?Challenges of the 21st century

Increasing organizational complexity, shorter product life cycles, increasing specialization and cooperation between companies, flexibility, …

Increasing complexity

Rising competition, price and innovation pressure, survival of the fittest, strategic and operational excellence, …

Increasing competition

Internationalization, different cultures, people as human capital, war for talents, …

Importance of soft factors

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Challenges of International Projects

£ Cultural understanding and leading across different cultures.

£ Communication challenges that accompany language differences and separation by distance and time zones.

£ Finding the right technology mix for virtual teams (e.g. instant messaging, collaborative work solutions, web conferencing).

£ Common definition of work completed.

£ Agreement on escalation steps to resolve issues.

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What is Project Management?

PROJECT MANAGEMENT+

PLAN

CHECK

DO

ACT

Target oriented

Specific

UniqueComplex

Risky

Project

AN

CHCT

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What is a Project?Definitions

IPMA Individual Competence Baseline 4.0

Project Management Institute

A project is a temporary endeavor undertaken to create a unique product, service or result.

A project is a unique, temporary, multi-disciplinary and organised endeavour to realise

agreed deliverables within predefinedrequirements and constraints.

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What is a Project?Boundaries – Project approval criteria

Realization ToDoSmall Project

Project Program

Duration

Low

Resources

Costs

Departments

Complexity

< 2

< € 50.000

< 50 PD

< 2 Months

Medium

> 2

> € 50.000

> 50 PD

> 2 Months

High

> 3

> € 100.000

> 200 PD

> 6 Months

Very High

> 5

> € 600.000

> 600 PD

> 18 Months

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The Magic Triangle

vvvvvvvv

Risks

ScheduleResources/Costs

Scope

Organization

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Project Management Process

Approval Assignment Close-down ReportStatus Report

Initiation Start Close-downControlling

01 | Project Initiation

How it all begins

Airbus A3802000 - 2007

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Project InitiationTo sketch the idea

£ The decision to realize the project was made.

£ Preparation of project start and project definition.

£ Project content and project scope are defined.

£ The outcome is a preliminary project assignment on the basis of which the project manager and his team can plan the project in detail.

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Roadmap Project Initiation

Initiation Start Close-downControlling

Project boundary and context analysis

PreliminaryProject Assignment

Coordination withProject Sponsor

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Project Boundary and Context Analysis Description

£ Rough, initial outline sketch of the project.

£ Facilitates a common and shared understanding of the project amongst all stakeholders.

£ Forms the basis for the Project Assignment.

£ Project boundary and context analysis have the dimensions time, scope and social.

Project boundary: What is part/not part of the project?

Context analysis: What contextual factors might affect the project?

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Project Boundary and Context Analysis

Time Scope Social

Boundari

es

Conte

xt

2016 2017

PROJECT

2016 2017

PROJECT

PROJECT

PROJECT X

PROJECT Z

PROJECT Y

PROJECT PROJECT

PROJECT

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Project Boundary and Context AnalysisProject boundary definition

PROJECT

PROJECT

PROJECT

TIME£ What is the project start date?£ What is the project end date?£ Which event marks the project start?£ Which event marks the project end?

SCOPE£ What are the project‘s objectives?£ What are the project‘s non-objectives?£ What project phases are required for achieving the objectives?£ How is the project budget defined (resources, costs)?

SOCIAL£ Who is the Project Sponsor or Owner?£ Who is the Project Manager?£ What expert knowledge will the project team need?£ Who is part of the project team?

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Project Boundary and Context AnalysisContext analysis

2016 2017

PROJECT

PROJECT

PROJECT X

PROJECT Z

PROJECT Y

PROJECT

TIME£ How did the project come about?£ What happened before the project started?£ What decisions regarding the project have already been made?£ What documents are already available?£ What are the actions and decisions that will be required once the

project is completed?

SCOPE£ Are there other projects that have synergies or conflicting

relationships?£ Which strategies will the project help to implement?£ Which corporate strategies have influenced the project?£ How does the project contribute to the corporate strategy?

SOCIAL£ Define People, groups of people and institutions that might

affect the project‘s success?£ Who will benefit from the project outcome?£ Who will not benefit from the project outcome?£ Are there synergetic or conflicting relationships?

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Project AssignmentDescription

£ The Project Assignment is based on the project boundary definition and context analysis.

£ It represents a formal written agreement between the Project Sponsor and the Project Manager.

£ It represents the formal commissioning of the project and is therefore signed by the Project Sponsor and the Project Manager.

£ It marks an important cultural event in the project’s life.

£ No project without Project Assignment!

02 | Project Start

Sharpening the image

NASA Mission Control CenterCape Canaveral, USA

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Project StartDescription

£ The preliminary Project Assignment serves as basis for theproject start process.

£ The project start process involves the development of the detail plans necessary to implement the project.

£ These plans are developed using iterative planning cycles.

£ The project start process also involves creating an efficient project organization and implementing team-building measures.

£ The quality of the start process will be decisive to the project‘s outcome!

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Roadmap Project Start

Initiation Start Close-downControlling

ProjectAssignment

Kick-Off MeetingProject Sponsor

Meeting

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Project Start Tools & Methods

Project scope planning

Project scheduleplanning

Project organisation

o Project Assignment

o Project scope statement

o Preliminary and post-project phase

o Stakeholder analysis

o Relationship to other projects

o Deliverable plan

o WBS

o To-Do list

o WP specifications

o Schedule

o Milestone Plan

o Gantt chart

o Linked Gantt chart

o Network plan

o Project organisation chart

o Role definitions

o Project communication structures

o Project rules

o People in charge of WP

Project boundary andcontext analysis

Stakeholder analysis

Deliverable plan

Work Breakdown Structure

WP specifications

Gantt Chart

Milestone plan

Project organisation

Project rules

Communicationstructures

Projectdocumentation

Resource and cost plan

ResponsibilityAssignment

WBS-Code

AP

PHASE

ABT.

Ber.

Plan

(PT)

IST

(PT)

Rest

(PT)

HR

(PT)

Abw.

(PT)

1.2 PHASE EDV 15,0 - - - -

Eink. 5,0 - - - -

ReWe - - - - -

Sonst 11,0 - - - -

SU 31,00 - - - -

WBS-

Code

AP

PHASE

Ko.

Art.

Plan

(EUR)

IST

(EUR)

Rest

(EUR)

HR

(EUR)

Abw.

(EUR)

1.2 PHASE Mat. 10 - - - -

Pers. 50 - - - -

FL - - - - -

Sonst 21 - - - -

SU 81 - - - -

o Resource plan

o Cost plan

o Risk analysis

o Finance plan

Project boundary and

context analysis

Project resource andcost planning

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Project Scope PlanningProcedure

Creation of the Work Breakdown Structure (WBS)

£ Bottom up: collection of deliverables and clustering into project phases

£ Top-Down: definition of project phases and decomposition into plannable and controllable deliverables.

Definition of work packages.

Assignment of work package responsibilities.

Detail specification of work packages.

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Project Scope PlanningWork Breakdown Structure

£ Structured representation of all tasks & activities.

£ Vizualization of complete project structure.

£ Forms a common basis for all further planning.

£ Represents the primary instrument for communication within the project.

£ Decision: process-oriented vs. object-oriented.

£ The work package name should be based on activities.

£ Less is more à WBS should give an overview.

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Project Scope PlanningWork Breakdown Structure

1 Project Manager

Project

1.2

Phase B1.1

Phase A1.3

Phase C

1.4

Phase D1.5

Phase E

Project level(Top level, 1st element)

Phase level(2nd level, 5 - 8 elements)

Work Package level(3rd level, 3 - 9 elements,

can be further decomposed)

1.1.1 WP Owner

WP 1

1.1.2 WP Owner

WP 2

1.1.3 WP Owner

WP 3

1.2.1 WP Owner

WP 4

1.2.2 WP Owner

WP 5

1.2.3 WP Owner

WP 6

1.3.1 WP Owner

WP 7

1.3.2 WP Owner

WP 8

1.3.3 WP Owner

WP 9

1.4.1 WP Owner

WP 10

1.4.2 WP Owner

WP 11

1.4.3 WP Owner

WP 12

1.5.1 WP Owner

WP 13

1.5.2 WP Owner

WP 14

1.5.3 WP Owner

WP 15

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Project Scope PlanningWork Package Specification

£ Quantitative and qualitative description of all or selected Work Packages (depending on the complexity).

£ The contents and results of these selected Work Packages are clearly specified (to avoid redundant content and planning or planning gaps).

£ Work Package specifications are developed by the person in charge of the relevant Work Package.

£ Must be reviewed by the entire project team.

£ Provide a frame of reference for everybody involved in the project.

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Project Scope PlanningWork Package Specification

1.1.2 WP-Name

Contents

ToDo Responsible Completion date

Results

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Project Schedule PlanningProcedure

ROUGH (Milestone Plan)

£ Identification of milestones on the basis of the WBS.

£ Assignment of realistic completion dates for each milestone.

DETAIL (Gantt Chart)

£ Entering of WBS phases and work packages into Gantt Chart.

£ Estimation of time to completion (≠ working time) for each work package.

£ Assignment of start and finish dates for all work packages.

£ Optional: Linked Gantt Chart for representing dependencies.

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1

3

4

5

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Project Schedule PlanningMilestone Plan

£ Milestone = key event that is critical to a project’s schedule.

£ Provides a rough outline of the project’s entire time schedule.

£ Provides a frame of reference for and acts as a driver regarding key project points.

£ Depending on the type of project, milestones can also be used to represent company-specific standards.

£ Milestones have no duration.

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Project Schedule PlanningMilestone Plan

WBS Milestones Baseline Actual Completion

1.1.1 Project started 01.08.2016 01.08.2016 01.08.2016

1.2.5 Milestone 1 20.10.2016 20.10.2016 30.10.2016

1.3.6 Milestone 2 03.01.2017 03.02.2017

1.4.3 Milestone 3 13.03.2017 13.04.2017

1.1.5 Project closed 30.05.2017 30.06.2017

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Project Schedule PlanningGantt Chart

£ Comprises a sequential representation of activities in the form

of bars spaced along a time line.

£ Constitutes a detailed time schedule for parts of or the entire

project.

£ Graphical overview of the time required for project phases and

work packages.

£ Gantt Charts applications are extremely useful for developing and

keeping track of changes resulting from project controlling.

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Project Schedule PlanningGantt Chart

WBS-Code Name Start Finish Ja

n

Feb

Mar

Apr

May

Jun

Jul

Aug

1.1 PHASE 1 01.01 30.08

1.1.1 Project started 01.01 01.01

1.1.2 Project start 01.01 01.03

1.1.3 Project controlling 02.03 30.07

1.1.4 Project close-down 01.08 30.08

1.1.5 Project closed 30.08 30.08

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Project Risk AnalysisDescription

£ A project may be subject to (unwelcome) risks that might

jeopardise its successful completion.

£ Rather than simply letting events take their course and hoping for the

best, professional project management is about efficiently managing

such risks.

£ A risk is a potential future problem that might or might not occur.

£ Risk analysis is the process by which risks are identified and

assessed. It involves the development and implementation of

measures for their successful management.

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Project Risk AnalysisProcedure

Identification of potential risks.

Analysis and assessment of risks.

Prioritization of risks.

Definition of preventive measures.

Decision on risk strategy£ Prevent£ Mitigate£ Transfer£ Accept (residual risk)

Definition of corrective measures.

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3

4

5

6

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Project Risk Analysis

Risks Description Impact

Pro

bability

of

occ

urr

ence

Pri

ori

ty

Risk strategyPreventivemeasures

Correctivemeasures

high high high

middle middle middle

low low low

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Project Risk AnalysisExample

No TitleDescription of risk,

causeRisk costs (€) Delay

Probability of

occurrence

Risk

budget(€)

1

2

3

4

5

TOTAL 0.00 0.00

Risk

category

Priority

ratingPreventative measure Prevention cost (€) Corrective measures

0.00

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Stakeholder AnalysisDescription

£ Stakeholders are individuals or organizations that are actively involved in or whose interests may be affected as a result of a project.

£ Stakeholder‘s expectations regarding a project will differ widely!

£ Stakeholder relations must be actively managed using specific measures.

£ These measures can be incorporated into the Work Breakdown Structure as activities.

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Stakeholder AnalysisProcedure

List all relevant Stakeholders

£ Project organization

£ Functional organization

£ Users / Customers

£ Suppliers

£ Authorities

£ Competitors

Categorise Stakeholders to identify critical relations.

Devise concrete stakeholder relation measures, define responsibilities

and schedule for each of those measures.

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3

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Stakeholder AnalysisStakeholder Table

Name Assessment Influence Description Measure Responsible Target Date

negative high

neutral medium

positive low

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Stakeholder AnalysisStakeholder Map

Suppliers

Internal Departments

Competitors

Customers

OtherStakeholders

Sup. A

Sup. B

Authority

Co-op. Partner Customer A

Customer B

Comp. C

Comp. B

Comp. A

Dept. A

Dept. B

Sup. C Project

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Checklist Project Start

Is the signed project assignment available?

Are the project objectives, key milestones, resources and costs agreed upon between the project sponsor and the project manager?

Is the project organization with all key roles approved?

Are all requested resources and costs approved for the project?

Is the project acceptance assured across all relevant stakeholders?

03 | Project Controlling

Keeping an overview

International Space Station (ISS) 1998 - today

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Project ControllingMonitor and control the project

£ In order to be able to keep track of the project’s progress, it’s overall status will need to be regularly assessed.

£ You can only control what you have planned!

£ Principle: PROACTIVE rather than REACTIVE.

£ Project Controlling is a cyclic process.

£ Controlling must be defined:£ Frequency

£ Granularity

£ Responsibilities

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Roadmap Project Controlling

Initiation Start Close-downControlling

Status Report

Controlling Meeting Sponsor MeetingSp

Data collection

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Data Collection

£ Definition of controlling cycle £ Deadlines and lead times

£ Recommendation: quarterly

£ In order to determine the status of the project, actual data must be collected:£ Performance progress

£ Actual dates

£ Resource consumption

£ Actual costs

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Scope Controlling

1.2

.1

WP-Name -

WP-Responsibility

0%

Start Finish

1.2

.1

WP-Name

WP-Responsibility

25

%

Start Finish

1.2

.1

WP-Name

WP-Responsibility

100%

Start Finish

£ Detailed status indicator per work package using 25% stages.

£ Visualization using 0 - 50 - 100 method:

£ Not started – in progress - completed

£ Traffic light indicators per work package:

£ RAG status indicators

£ Scope changes:

£ New vs. removed work packages

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Schedule Controlling

WBS-Code Name Start Finish Ja

n

Feb

Mar

Apr

May

Jun

Jul

Aug

1.1 PHASE 1 01.01 30.08

1.1.1 Project started 01.01 01.01

1.1.2 Project start 01.01 01.04

1.1.3 Project controlling 02.04 30.07

1.1.4 Project close-down 01.08 30.08

1.1.5 Project closed 30.08 30.08

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Resource & Cost Controlling

WBS-Code

PHASE-WP Cost TypePlan(€)

Actual(€)

Remain(€)

Forecast(€)

Deviation(€)

1.2.1 WP 1 Staff costs 16.000 10.000 10.000 20.000 +4.000

Office and administration expenditure

22.000 10.000 12.000 22.000 -

Travel and accommodation costs - - - - -

External expertise and services costs

4.000 2.000 1.000 3.000 -1.000

PLAN

DEVIATION

ACTUAL

REMAIN

FORECAST

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Stakeholder Controlling

Name Assessment Influence Description Measures Respons.Target Date

negative high

neutral middle

positive low

Focus Focus

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Risk Controlling

Risks Description Impact

Pro

bab

ility

Pri

ori

ty

Risk StrategyPreventiveMeasures

CorrectiveMeasures

high high high

medium medium medium

low low low

Focus

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Social Project ControllingMood barometer/ Flashlight

…in the project?

…in the project team?

…with your activities?

…with the communication?

How are you…

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Project Status ReportOverall Status Implementation

Status Information

Schedule

Resources Costs

Status

Scope

Schedule

Resources

Costs

Risk

Stakeholder

£ The Project status report is a scheduled report that is created by the project manager.

£ Documents the project statusand outlines the project progress.

£ Serves as management summary.

£ Summarizes key decisions.

Start Finish

ActualBaseline

Baseline Actual Forecast Baseline Actual Forecast

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Checklist Project Controlling

Are up-to-date progress figures for all work packages available?

Is the current project status taken into account in all PM plans and coordinated within the core team?

Are all important to do‘s documented and communicated within the project core team?

Is the project steering group and are the programme bodies (if necessary) informed and are the next steps documented?