Project Management x470 The Planning Processes UC Berkeley Extension, Business and Management Week...

Project Management Project Management x470x470

The Planning ProcessesThe Planning Processes

UC Berkeley Extension, Business and UC Berkeley Extension, Business and ManagementManagement

Week 3, 8 MayWeek 3, 8 May

Kimi Hirotsu [email protected]

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The Cost BaselineThe Cost Baseline

33Think TEAMThink TEAM 33

Project Cost Project Cost ManagementManagement

Process Process GroupGroup

Process NameProcess Name Process Major Process Major Deliverable/sDeliverable/s

InitiatingInitiating

PlanningPlanningEstimate CostEstimate Cost Activity Cost EstimatesActivity Cost Estimates

Budget CostBudget Cost Cost BaselineCost Baseline

ExecutingExecuting

Monitoring Monitoring & & ControllingControlling

Control CostControl Cost Updates to Cost Baseline Updates to Cost Baseline and other documentsand other documents

ClosingClosing

Cost


Analogous EstimatingAnalogous EstimatingUse actual cost of a previous similar project Use actual cost of a previous similar project to estimate cost of current projectto estimate cost of current project

Approximate estimateApproximate estimate

Accuracy +- 15%Accuracy +- 15%

Parametric ModelingParametric Modeling•Use project parameter in a mathematical Use project parameter in a mathematical model to predict project costmodel to predict project cost•Accuracy +- 35%Accuracy +- 35% within the scope of the within the scope of the projectproject•Example: construction cost per square Example: construction cost per square footfoot


Bottom-Up EstimatingBottom-Up Estimating

Cost estimate of WBS work Cost estimate of WBS work packages rolled up to a project packages rolled up to a project total total

Definitive/detailed estimateDefinitive/detailed estimate

Prepared from well-defined Prepared from well-defined engineering data, vendor quotes, engineering data, vendor quotes, unit prices, etc. unit prices, etc.

Accuracy +- 5%Accuracy +- 5%


Cost BaselineCost BaselineTime-phased budget for measuring, Time-phased budget for measuring, monitoring and controlling overall monitoring and controlling overall project cost performanceproject cost performance

Cumulative Amount

Time


Life Cycle CostingLife Cycle Costing

SYSTEM R&D

PRODUCTION

SYSTEM ACQUISITION

OPERATION AND SUPPORT

LIFE CYCLE COST

LIF

E C

YC

LE

CO

ST

YEARS


Costing ExerciseCosting ExerciseFrom your project WBS, From your project WBS, develop develop – the resource requirements, the resource requirements, – cost estimate and cost estimate and – cost baseline (per phase) for cost baseline (per phase) for

your projectyour project


Bank Network Migration Project DeliverablesBank Network Migration Project Deliverables

ProcessesProcessesPhasesPhases

DesignDesign Migration Migration PlanPlan MigrationMigration Operational Operational

AcceptanceAcceptance

Project Project ManagementManagement

Project CharterProject Charter

PreliminaryPreliminary

Product Scope Product Scope StatementStatement

ProjectProject

ManagementManagement

PlanPlan

1.1.Scope Scope StatementStatement

2.2.WBSWBS

3.3.Project Project ScheduleSchedule

4.4.Cost BaselineCost Baseline

Product Product OrientedOriented

1.1. Network Network Architecture Architecture DocumentDocument

2.2. Network Network Design Design DocumentDocument

1.1. Detailed Detailed Network Network DrawingsDrawings

2.2. Service Level Service Level Agreements Agreements (SLAs), ITIL(SLAs), ITIL

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Best PracticesBest Practices

Develop a cost baseline Develop a cost baseline Partner with line managers to Partner with line managers to get agreement on scope, time get agreement on scope, time and cost baselinesand cost baselinesChange control process should Change control process should be in place as soon as possiblebe in place as soon as possibleValidate progressive Validate progressive elaboration outputselaboration outputs

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AgendaAgenda

Risk ManagementRisk Management

Information DistributionInformation Distribution

Quality ManagementQuality Management

Selecting VendorSelecting Vendor

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Risk Management Risk Management Risk: an uncertain event that, if it Risk: an uncertain event that, if it occurs could impact the project in occurs could impact the project in either a negative or positive fashioneither a negative or positive fashionProcesses:Processes:– Plan Risk ManagementPlan Risk Management– Identify RisksIdentify Risks– Perform Qualitative Risk AnalysisPerform Qualitative Risk Analysis– Perform Quantitative Risk AnalysisPerform Quantitative Risk Analysis– Plan Risk ResponsesPlan Risk Responses– Monitor and Control RisksMonitor and Control Risks

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Project Quality Management

Based on the definition of project quality:

Meeting requirements and fitness of use

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Quality management processes:

Plan Quality

Perform Quality Assurance

Perform Quality Control

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Plan Quality

Within the budget and time constraints you also have to manage:

•Stakeholder expectations•Product legal requirements•Product industry standards•Organizational process requirements

What other areas might have requirements or expectations that you will have to manage in order to deliver the product desired within the constraints demanded?

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Perform quality assurance

Once you know what quality requirements must be maintained quality assurance is how you determine those methods your team will use to achieve the necessary requirements.

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Perform Quality Control

If, during the process of performing quality assurance you find a significant variance from where you need to be then you must begin employing processes to correct that – to regain control.

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Communication

Project Communication ManagementProject Communication Management

Process Group

Process Name Process Major Deliverable/s

Monitoring Monitoring & &

ControllingControlling

Performance Performance ReportingReporting

1.1. Performance ReportsPerformance Reports– Comparison to baselineComparison to baseline– Bar chart, S-curves, Bar chart, S-curves,

histograms, tables, traffic histograms, tables, traffic lightlight

– Earned Value Management

2. Forecasts

Manage Stakeholders

Resolve issues

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Project Communication ManagementProject Communication Management

Collection and dissemination of performance information to stakeholders with info on how resources are being used to meet project goals– Status reporting (where project stands vs.

baselines)– Progress reporting (accomplishments)– Forecasting (prediction of future

performance)– Risks (present and future) assessment – Special problems / management assistance

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Project DashboardProject DashboardProjectProject MetricMetric StatusStatus TrendTrend Problem StatementProblem Statement Corrective Corrective

ActionAction ScopeScope

ScheduleSchedule

CostCost

Overall Overall HealthHealth

Executive SummaryExecutive Summary

ResultsResults Next StepsNext Steps

WorkingWorking ChallengesChallenges

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Sample Metric Status Definition Sample Metric Status Definition

ScopeScope

GreenGreen No scope change.

YellowYellow Change within 10% of original scope

RedRed Change over 10% of original scope. Need re-baseline.

ScheduleSchedule

GreenGreen On track for scheduled completion

YellowYellow Within 10% of scheduled completion

RedRed Over 10% scheduled completion. Need re-baseline.

CostCost

GreenGreen Completion within budget

YellowYellow Completion within 10% of budget

RedRed Completion over 10% of budget. Need re-baseline.

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Sample Metric Trend DefinitionSample Metric Trend Definition

ColorColor DefinitionDefinition

GreenGreenLess than 25% probability that a project risk that impacts a parameter target (scope, time, cost) will occur

YellowYellow25% to 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur.

RedRedGreater than 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur

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Flexibility Matrix and Status TriggerFlexibility Matrix and Status Trigger

Trigger point for Schedule color can be tighter

Parameter HighHigh MediumMedium LowLow

Scope Yes

Schedule Yes

Cost Yes

Trigger point for Cost color can be looser

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Project ReportsProject Reports

Proj IDProject Name

Project Manager

Major Issues

Sched Status

Tech Status

Budget Savings StaffingCust Satis.

Sched Comp.

Overall

DISRUPTED PROJECTS

12 R R Y Y Y Y Y R R

32 Y G Y Y G G G G Y

TOP INITIATIVES (TI)

8 G G G G G G G G G

18 G G G G G G G G G

INFRASTRUCTURE IMPERATIVES

6 G G G G G G G G G

43 G G G G G G G G G

2525

Procurement Project Procurement ManagementProject Procurement ManagementProcess Group

Process Name Process Major Deliverable/s

InitiatingInitiating

PlanningPlanning

Plan Purchases and Plan Purchases and AcquisitionsAcquisitions

Procurement Management PlanProcurement Management Plan

Contract Contract Statement of Work (SOW)Statement of Work (SOW)

Make or Buy DecisionsMake or Buy Decisions

Plan ContractingPlan Contracting Procurement documentsProcurement documents – Bid, RFP, – Bid, RFP, RFQRFQ

Evaluation CriteriaEvaluation Criteria

ExecutingExecuting

Request Seller Request Seller ResponseResponse

Qualified Sellers ListQualified Sellers List

ProposalsProposals

Select SellersSelect Sellers Selected sellersSelected sellers

ContractsContracts

Monitoring & Monitoring & ControllingControlling

Contract Contract AdministrationAdministration

Contract documentationContract documentation

Requested changesRequested changes

ClosingClosing Contract ClosureContract Closure Closed contractsClosed contracts

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Contract AdministrationContract AdministrationEnsuring that the seller’s performance meets the contractual requirements

Invoices / payment requests

Contract changes

Correspondences

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Bank Network Migration DeliverablesBank Network Migration Deliverables

ProcessesProcessesPhasesPhases

DesignDesign Migration PlanMigration Plan MigrationMigration Operational Operational AcceptanceAcceptance

Project Management

- Project- Project

CharterCharter

- - PreliminaryPreliminary

Project Project ScopeScope

StatementStatement

Project Management Project Management PlanPlan

1.1. Scope StatementScope Statement

2.2. WBSWBS

3.3. Project ScheduleProject Schedule

4.4. Cost BaselineCost Baseline

5.5. RAMRAM

6.6. Comm. Mgmt PlanComm. Mgmt Plan

7.7. Risk Response PlanRisk Response Plan

8.8. Vendor ProposalsVendor Proposals

1. Contracts2. Status Reports3. Change Requests

and approvalsa. Corrective

actionsb. Updates to

management plan

4. Earned Value Reports

Product Oriented

- Network- NetworkAArchitecturerchitecture

DDocumentocument

- Network- Network

DesignDesign

DocumentDocument

1. Detailed Network Drawings

2. Service Level Agreements (SLAs), ITIL

1. Equip. ordering and delivery

2. MPLS network ordering and delivery

3. Network Roll-out, testing, acceptance

4. Branch, ATM migration

Project Management x470 The Planning Processes UC Berkeley Extension, Business and Management Week...

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