CEU

1. CEU Power Tools for Managing Projects

2. Project Management What You Need to Know Some Basics

3. Project • Defined as “a temporaryendeavor undertaken to createa unique product, service, or result” • Characteristics include: • Time limited with a definite beginning and end • End is achieved when one of the following occurs • Project objectives are met • Project is terminated • Need for the project no longer exists • Undertaken for a purpose (to create a unique product, service or result) • Often involves “progressive elaboration” • Because you may not know everything about the product initially, you may have to plan and develop it in steps • Often called “rolling wave planning”

4. Operations vs. Projects Operations management differs from project management Projects Temporary endeavor Produces unique output(s) Can intersect with operations at various points of product life cycle Operations • Ongoing endeavor • Produces repetitive output(s) • Supports the business environment where projects are executed • Interaction with projects is common • Does not end when objectives are met • New objectives are set to support organizational needs

5. Product vs. Project Life Cycle Comparison Project Life Cycle • Occur in one or more phases of the product life cycle • When project output is related to a product, there are many possible relationships Product Life Cycle • Phases are generally sequential, non-overlapping, and determined by organization’s control need • Last phase is generally the product’s retirement • Facets of the product life cycle are often run as a project • Product may have many projects associated with it

6. Project Life Cycle Characteristics Cost and Staffing Level

7. Project Life Cycle Characteristics A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fourth Edition, Figure 2-2

8. Product Life Cycle Example of a Product Life Cycle Product life cycle describes phases in the life of a product, typically ending in product retirement

9. Projects vs. Operational Work • Projects and operations share characteristics • Work is performed by individuals • Work is limited by constraints • Work is planned, executed, monitored and controlled • Work is performed to achieve organizational objectives • Projects and operations differ • Operations are ongoing; produce repetitive products, services, or results • Projects are temporary endeavors; produce a unique product, service, or result • Operations and projects interact • Operations supplies resources to projects • Projects may produce deliverables that support operations

10. Types of Organizations and Their Characteristics

11. Project Management Processes • Project manager—along with project team—is responsible for determining: • Which processes are appropriate for the project • Whether processes should be tailored • Appropriate degree of rigor for each process • Must understand that project management is an integrative undertaking • Requires each process to be aligned and connected with the other processes to facilitate coordination • Must also understand that processes are iterative—many are repeated during the project

12. This is not a Project Management Plan

13. Change…It Happens NO PLAN IS EVER EXECUTED AS WRITTEN; Take Heart!! YOURS WON’T BE THE FIRST Manages changes to the project management plan, project scope statement, and other deliverables Assures that only approved changes are incorporated into a revised baseline

14. Processes…They Are Iterative Deming Cycle

15. 2 Kinds of Scope • Project Scope • Work that needs to be accomplished to deliver a product, service, or result with the specified features and functions • Measured against project management plan • Product Scope • Features and functions that characterize a product, service, or result • Measured against product requirements

16. Decomposition • WBS structure can be created using different methods • Using phases of the project life cycle as the first level of decomposition; second level consists of the product and project deliverables • Using major deliverables as the first level of decomposition • Using subprojects that may be developed by organizations outside the project team (e.g., contracted work); seller develops the supporting contract work breakdown structure • WBS components represent verifiable products, services, or results • WBS can be structured as an outline, organizational chart, fishbone diagram, etc. • Decomposition may not be possible for a deliverable or subproject to be accomplished far into the future

17. Time Management

18. Project Cost Management • Cost management work follows planning (Develop PM Plan) • Planning process produces a cost management plan that : • Documents cost management processes, tools and techniques • Can establish: • Level of accuracy • Units of measure • Organizational procedures links • Control thresholds • Rules of performance measurement • Reporting formats • Process descriptions • May be formal or informal, highly detailed or broadly framed, based on project needs

19. Budget Estimating Budget Estimates Top-Down Estimating (Rough Estimate) Rough Order of Magnitude (ROM) -50% to +100% Completed during initiation (not very accurate) Conceptual -30% to +50% Less Accurate Preliminary -20% to +30% Definitive - 15% to +20% Control -10% to +15% Most Accurate Bottom-Up Estimating

20. Cost Performance Baseline Cost Performance Baseline • Authorized, time-phased budget at completion (BAC) used to measure, monitor, and control over all cost performance on the project • Summation of the approved budgets by time period • In EVM, referred to as the performance measurement baseline (PMB) • Often displayed in the form of an S-Curve

21. Project Quality Management • Recognizes the distinction between “precision” and “accuracy” • Precision means that values of repeated measures are clustered and have little scatter • Accuracy means that the measured value is very close to the true value • Precise measurements are not necessarily accurate • Very accurate measurements are not necessarily precise

22. Cost of Quality Cost of Conformance Prevention Costs (Build quality product) • Training • Document processes • Equipment • Time to do it right Appraisal Costs (Assess the quality) • Testing • Destructive testing loss • Inspections Cost of Nonconformance Internal Failure Costs (Failures funded by the project) • Rework • Scrap External Failure Costs (Failures found by the customer) • Liabilities • Warranty work • Lost business • Loss of customers! Money spent during the project to avoid failures Money spent during and after the project because of failures

23. Project Human Resource Management • Human resource management includes processes that organize, manage, and lead the project team • Project team is comprised of individuals assigned/acquired to the roles and responsibilities for completing the project • Type and number of project team members can change frequently • Project team may also be referred to as the project’s staff • Early involvement of all team members in project planning and decision making can be beneficial • The earlier, the better

24. Project Communications Management • Requires most of the project manager’s time • Covers tasks related to producing, compiling, sending, storing, distributing, and managing project records/information • Determines what to communicate, to whom, how often and when to reevaluate the plan • Has many potential dimensions, including: • Internal and external • Formal and informal • Vertical and horizontal • Official and unofficial • Written and oral • Verbal and non-verbal

25. Communication Model Encode Modifying a message so that it can be sent Noise Something that interferes with the message Message Memorize Receiver Sender Medium Responsible for making the information clear and complete so that the receiver can receive it correctly, and confirming that it is properly understood Responsible for making sure that the information is received in its entirety and understood correctly Decode Modifying a message that has been sent so that it can be understood….”if I understand you correctly, you are saying…. Feedback

26. Project Risk Management • Project risk is always in the future • Risk is an uncertain event or condition that, if it occurs, has an effect on at least one project objective (e.g., scope, schedule, cost, quality) • Risk may have one or more causes • Requirement • Assumption • Constraint • Condition • Risk may have one or more impacts/outcomes • Risk impact/outcome may be negative or positive • Negative event = threat • Positive event = opportunity

27. Project Procurement Management • Procurement Management consists of four processes: • Plan Procurements • Conduct Procurements • Administer Procurements • Close Procurements • Processes interact with each other and with processes from other Knowledge Areas • Each process can involve effort from a group or person, based on project requirements • Each process occurs at least once in every project and occurs in one or more of the project phases, if the project is divided into phases • Procurement management processes involve contracts that are legal documents between a buyer and a seller

28. Finally, the Project Manager…. The Project Manager—responsible for everything required to make project a success Not like typical hierarchical line management role Project Manager center of everything relating to project Example, Controlling the contributions of seniors and peers is just as important as managing the work of the team Project Manager needs to manage Project Manager—main focal point for liaison with other departments, projects and initiatives Project Manager—main point of contact for aspects requiring co-operation and co-ordination with external parties—making sure everything is in place to guarantee success Project Manager—direct responsibility for activities of all project participants, all project tasks and all deliverables Important!.... Project Manager needs to achieve this without direct control over participants Project Manager has no power over the leadership, nor the internal and external contributors

29. Summary Proper understanding of the tools and knowing how and when to use them is the key to effectively managing your projects.

30. Earned Value Analysis