Project management part 3

Project ManagementPart 3

Software Tools for Project Management

• PM computer tools can organize calendar information:

• Holidays

• Vacations

• Other non-project factors

• Tools can provide both tabular resource reporting and resource histogram analysis, for identifying overcommitments and undercommitments.

Computer Tool Considerations• Select a tool that meets your needs without excessive

overhead or a steep learning curve.

• Coordinate tool selection with peers.

• Favor options with available training and mentors.

• No tool provides “artificial intelligence.”

• Date formats: On global projects, never use default date formats. Select a display format that will be unambiguous for everyone. (What is“12/6?” Is it June 12 or December 6?)

Analyze Project Constraints

• Identify differences between the bottom-up plan and the stated project objective.

• Review project priorities.

• Determine which changes to consider first.

Time/

Schedule

Cost/

Resources

Scope/

Deliverable

Time CostScope

Least Flexible

Moderately Flexible

Most Flexible

Explore Plan Tradeoffs

• Seek alternatives.

• Using priorities, explore options:

• Consider alternate plans

Shift resourcesModify workflow

A B C

BA

C

Cut features

Optimize Plans

• Computer tools can help with ‘What if?”

• Make project changes you are empowered to make.

• Seek guidance from project sponsor where needed.

• Gain agreement and buy-in for revisions.

• Revise your plans.

• Document one or more project options.

Plan Risk Management“The process of defining how to conduct risk management activities for a project.” (PMBOK 11.1)

Risk (PMBOK): “An uncertain event or condition that, if it occurs, has an effect on at least one project objective.”

Basic project risk management:

• Identifying risks

• Prioritizing risks through qualitative analysis

• Responding to significant risks

©2013 Project Management Institute A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition

Identify Risks

“The process of determining which risks may affect the project and documenting their characteristics.”(PMBOK 11.2)

Identify risks using:

• Project retrospective analyses/lessons learned

• Brainstorming with the project team

• Worst case estimates


Example Project Risks

Schedule risks:• Critical path activities with long durations

• Interfaces with other projects...

Resource risks:• Loss of contributors with unique skills

• Work requiring remote (or unknown) resources...

Scope risks:• Activities requiring new, untried processes

• Technical and performance challenges...

General risks:• Communications problems

• Reorganizations, loss of sponsorship...


Risk Breakdown Structure Example

Perform Qualitative Risk Analysis“The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.”(PMBOK 11.3)

Develop a risk register (table listing risks and rick parameters) to analyze each identified risk.


Risk ProbabilityRisks are associated with uncertain, future events.

• Estimates of probability (likelihood) are between 0% and 100%.

• Probabilities may be assessed as percentage ranges (Qualitative) or percentages (Quantitative).

Qualitative probability ranges (such as H/M/L) are generally sufficient for rank-ordering risks.

Risk ImpactImpact estimates the consequences for your project, should the risk occur.

• Impact may be assessed as ranges or categories of impact to one or more project objective parameters, or as estimates of time lost, money spent, extra effort, or other impact.

• Impact measures may have no upper bound.

Qualitative assessment based on defined categories is generally sufficient for rank-ordering risks, such as:

• High: Threatening the project objective

• Medium: Requiring significant replanning

• Low: A nuisance

Example Risk Register

RisksProbability

(H/M/L)

Impact

(H/M/L)

Software expert unavailable

Contractor Incompetent

Purchased component late

Software development too slow

Test gear not available

M H

M M

HL

L M

L L

HM

M

M

ML

L

Overall

Risk

“Overall Risk” combines the estimates for probability and impact, and is used to rank order the risk register’s list.

Plan Risk Responses“The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.”(PMBOK 11.5)

• Select all significant risks on your prioritized risk register (generally any with “medium” ratings).

• For each risk, isolate the root cause (or causes).

• Manage selected risks using the best available strategy.


Response Techniques

Brainstorm responses to risks, considering:

• Avoidance (Replan project to remove the risk)

• Mitigation (Revise plans to lower risk probability and/or impact)

• Transfer (Shift all or part of risk impact to others)

• Acceptance (Leave plans unchanged, but monitor the risk, and where appropriate, establish contingency plans for recovery.)

• Identify specifics, not just general risks.

• List the “Top 10”—Keep risks visible.

• Document contingency plans.

• Assign triggers and owners.

• Plan responses to all big risks and document all risks.

• Assess project size (effort months).

• Establish project contingency reserves, based on risk (time and/or budget).

Responding to Project Risks

Plan Quality Management“The process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements.” (PMBOK 8.1)

Project quality management relates primarily to scope and the project deliverable, but also involves maintaining the processes you will use. Determine how you will implement process monitoring and continuous improvement, and how you will ensure consistent and appropriate results.


Plan Procurement Management“The process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers.” (PMBOK 12.1)

Not all projects involve contract labor, but if yours does, determine how you will:

•Conduct procurements (Request and evaluate proposals, Select sellers, and Finalize contracts)

•Administer procurements (Supervise contract staff, Control changes, and Manage finances)

•Close procurements (Close contracts and Assess Performance)


Negotiate Project ChangesIf you have a plan that is consistent with the project objective, commit to the project and use it.

If your plans fail to meet the project objective, propose several project options, with a recommendation, to your sponsor. For example:

• Adjust the deadline

• Increase the budget

• Reduce the scope or deliver it in phases• Improve (or train) resources

• Make other project changes

Negotiate agreement on a realistic, plan-based project with your sponsor and key stakeholders.

Adjust Project Plans

Use project information:

• High-level charter and summary of objectives

• High-level WBS and summary project schedule

• Assessment of resource requirements and capacities

• Major assumptions and risks

Knowledge is power. Use project information to clearly show what is and is not feasible, and use fact-based, principled negotiation to avoid “the impossible project.”

Set Schedule Baseline

Develop Schedule (PMBOK 6.6) is a process that permeates project planning, using progressive elaborationto refine and improve your understanding of project workflow as you proceed.

When finalizing your planning efforts, collect your results to produce a credible, workflow-based schedule for your project.


Assemble Project DocumentsProject definition documents

• Project Charter

• Requirements, constraints, assumptions, and priorities

• Staffing roster

Project planning documents• WBS, schedule, resource plans, and risk register

• Quality, communications, procurement and other ancillary plans

Project status documents:• Status reports

• Change logs, issue reports, and project reviews

Set the Project Baseline

• Get sponsor and stakeholder approval

• Freeze project specifications

• Initiate change control

• Set the baseline in computer scheduling tool

• Publish and distribute approved plans

Sponsor and Stakeholder Approval

Validate your project plans.

PlanProject

Plan

Sponsor

(Customers/Stakeholders)

Objectives

Project Manager/

Team

Freeze Project Specifications

Project deadlines, resource commitments, and scope are linked.

For your baseline plan, (or at a minimum for the upcoming phase of work), clearly document the specific scope requirements that are “In Plan” and define the project Statement of Work (SOW).

Initiate Change Control

Gain agreement on a sufficiently formal change control process:

• Log and publicly document all change requests.

• Identify who will be responsible for change management decisions.

• Determine how to analyze all proposed changes.

• Establish criteria for accepting, rejecting or deferring a change; reject most of them.

• Communicate and document status of all requested changes.

Scheduling Tool Baseline

If using a computer scheduling tool, lock the baseline schedule in the tool’s database.

Begin tracking all activities and using the tool to highlight all variances.

Publish and Distribute Plans

Inform all stakeholders of the details of the project baseline decisions.

Store all project baseline documents in a public “Project Management Information System” (PMIS) that is easily assessed by all project team members and stakeholders.

Direct and Manage Project Work“The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives. (PMBOK 4.3)

Execution prerequisites:– Baseline validated

– Communications ready

– Tools on-line

– Committed staffing and funding

– PMIS available to all stakeholders


Project Execution Decisions

Finalize and document:

• Frequency and methods for collecting status

• Frequency and types of reporting

• Frequency of meetings

• Practices for storing project information

• Tools and systems to be used

• Other significant project processes

Project MetricsChose metrics that:

• Support overall project objectives

• Positively influence team behavior

• Assist good decision-making

• Focus on process performance, not punishment

Some typical metrics:

• Critical path activity slippage

• Issues opened and closed

• Number of approved scope changes

• Excess consumption of effort or funds

• Missed milestones

Project Checkpoints

For each defined project checkpoint (life cycle phase transition, cycle or iteration completion, interim scope delivery, or stage-gate), verify:

• Timing

• Required data and other input deliverables

• Stakeholder involvement

• Decisions to be made

• Decision criteria

• Checkpoint output deliverables

Monitor And Control Project Work“The process of tracking, reviewing, and reporting project progress against the performance objectives defined in the project management plan.” (PMBOK 4.4)

Benefits:

• Real-time progress recognition

• Early identification of problems while small; avoidance of later big problems

• Timely communication

• Reduced uncertainty and stress

• Better future projects


Perform Integrated Change Control

“The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition.” (PMBOK 4.5)

Even for “Agile” projects, success depends on understanding and managing change based on business value.


Control Scope

“The process of monitoring the status of the project and product scope and managing changes to the scope baseline.” (PMBOK 5.5)

Scope change management process includes:

• Proposal

• Analysis

• Decision

• Follow-up


Scope Change Management ProcessNo

Yes

DocumentProposed Change

Proposal Complete?

Log theChange

Analyze theProposed Change

Approved?Approved withModifications?

Publicize,Document, andImplement Change

Reject or Deferthe Change; CommunicateResolution

Yes Yes

No No

Change Proposals

Document proposed changes, including:

• Description of the change

• Business justification for the change, including credible estimates

• Known consequences of making the change

• Stakeholder support for the change

Assessment of Scope Changes

• Log changes requested

• Verify proposal information

• Characterize the change• Mandatory (Analysis gap, Dependency, Problem)

• Discretionary, Scope Creep

• Analyze the proposed change• Benefits

• Costs

• Other impact

Disposition of Changes

Evaluate all changes promptly

• Reject (default)

• Accept

• Accept with modification

• Defer

Change Follow-up

Communicate decisions:

• If rejected, document the reason.

If accepted, take action:

• Update planning documents

• Implement accepted changes

• For major changes, review and update the project baseline.

Control Schedule

“The process of monitoring the status of the project activities to update project progress and manage changes to the schedule baseline to achieve the plan.” (PMBOK 6.7)

Track schedule metrics every status cycle, and respond promptly to variances from the planned baseline.


Control Costs

“The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.” (PMBOK

7.4)

Track cost and other resource metrics every status cycle, and respond promptly to variances from the planned baseline.


Control Communications

“The process of monitoring and controlling communications throughout the entire project life cycle to ensure the information needs of the project stakeholders are met.” (PMBOK 10.3)

Follow a complete tracking process each cycle:

• Collect status.

• Analyze variance.

• Manage issues and escalate problems

• Report project status.


Status Tracking and Reporting

Manage both inbound and outbound project communications.

Commit to a tracking frequency (generally weekly).

• Track activities from WBS.

• Monitor status every cycle.

• Intensify collection when needed.

• Focus on schedule, cost, and other significant metrics.

Status Strategies

Too little status information:

• No information• Low effort• Creates confusion

Too much status information :

• Information overload• Lots of work• Creates confusion

So:• Keep your process simple• Collect important data you will use• Be consistent

Status Collection Methods• Electronic Mail

• One-on-One Discussions

• Online Collection Systems

• Reports and Forms

• Project Office

Status Collection Pitfalls

• Lack of Discipline / Frequency

• Not Using Collected Data

• Killing the Messenger

• Poor Data Quality

Analyze Variances

• Compare actual status data with the expectations of the baseline plan.

• Calculate differences and identify significant variances.

• Identify any trends in the project that may impact later work.

Variance Trends

Identify:

• All slippage on the critical path.

• Excess consumption of money or effort.

• Slippage on non-critical tasks that are similar to critical tasks later in the project.

• Staff performance problems.

• Other significant problems.

Assess Variance Impact

For each significant variance:

• Focus on root causes, not on “who to blame.”

• Use soft data to detect the source of project problems

• Determine whether impact is short-term, long-term, or repeating.

• Be proactive; begin to address small problems while they are small.

Manage IssuesCreate an issue log as part of your PMIS and ensure that your project team and appropriate stakeholders have access. A sample log:

Confirm issue ownership, and secure commitments for resolution timing. Track status of open items with other project status.

ID Description Opened Due date Priority Owner Status Comments

41 Part

shipped late

03 Jan

20xx

31 Jan

20xx

High Radar Open Expediting

from alternate

source

Plan Responses

Brainstorm as a team.

Work to address problems, not just symptoms.

Possible strategies:• Responses that worked on earlier problems• Documented contingency plans• Revisions to schedule logic• Small resource shifts• Revisions to scope

Implement Responses

• Analyze change proposals.• Apply your change

management process • Select the best option.• If the change affects

your project objective, revalidate the project.

• Implement the change.

Changes Validation

Sponsor

(Customers/Stakeholders)

Issues

Project Manager/

Team

Evaluate and Follow Up

• Verify that the response was effective.

• Test for unintended consequences, on this and other projects.

• If problems persist, try again (or escalate).

Escalate Persistent Problems

Escalate issues and other project problems only as a last resort, following unsuccessful attempts at resolution through issue management and other efforts. Process:

• Promptly recognize problems that are beyond your control.

• Outline options and recommendations for resolution.

• Document status and consequences of failure to resolve the problem.

• Involve your project sponsor and appropriate stakeholders in taking corrective action.

• Track activities and ensure resolution.

Thank [email protected]

Project management part 3

Leadership & Management

Transcript of Project management part 3