Project Management (x470)

1. Project Management (x470) Module 03 : Knowing What the Project Is, Part 2

2. Class Road Map

3. Session 3 Agenda

4. Stakeholder Management Knowing Whatthe Project Is:Project Planning

5. Distribution structure of the info – what info goes to who, via what method, frequency Description of info to be provided – format, content, level of detail, owner Collection and filing structure that details methods for gathering and storing various types of info Methods for accessing info between schedules Methods for updating and refining communications management plan as the project moves on Escalation process Objective: Meet stakeholder communication needs. Knowing Whatthe Project Is:Communications Management Plan

6. Project risk is an uncertain event or condition, that if it occurs, has a positive or negative effect on the project Risk management focuses on: Known unknowns Proactive management Risk management effort should be commensurate with the risk and importance of the project Tolerance for Risk Avoider Neutral Lover Knowing Whatthe Project Is:Basic Risk Concept

7. Systematic process of identifying, analyzing, and responding to project risks. Maximizes probability and consequence of positive events and minimizes probability and consequence of adverse events Risk and information are inversely related Knowing Whatthe Project Is:Risk Management

8. Objective: Understand project risks and develop options and actions to minimize threats and enhance opportunities to project success Perform Qualitative Risk Analysis Identify Risk Plan Risk Management Plan Risk Responses Knowing Whatthe Project Is:Project Risk Planning Steps Perform Quantitative Risk Analysis

9. Objective: Determine conduct of risk management activities for the project Perform Qualitative Risk Analysis Identify Risk Plan Risk Management Plan Risk Responses Knowing Whatthe Project Is:Risk Management Planning Perform Quantitative Risk Analysis

10. Methodology Roles and Responsibilities Budgeting Timing Risk Types Risk assessment metric definitions Probability and impact matrix Reporting format Tracking Risk management structure and performance for the project Knowing Whatthe Project Is:Risk Management Plan

11. “The starting point for best practices in risk management is the development of a classification systems for the types of risks.” – Harold Kerzner Knowing Whatthe Project Is:Risk Types

12. Boeing Financial Market Technical Production • ABB • Contracts and agreements • Responsibility and liability • Financial • Political • Warranty • Schedule • Technical • Resources • Supply and demand chain management • Customer • Consortia • Environmental Knowing Whatthe Project Is:Other Risk Types Examples

13. Knowing Whatthe Project Is:Risk Breakdown Structure 13

14. Knowing Whatthe Project Is:Risk Assessment Metric Example 14

15. Process of determining risks that might affect the project and documenting their characteristics Iterative process Outputs Risks (risk register) Triggers Perform Qualitative Risk Analysis Objective: Identify project risks Identify Risk Plan Risk Management Plan Risk Responses Knowing Whatthe Project Is:Risk Identification Perform Quantitative Risk Analysis

16. Objective: Rank risks according to the probability of its occurrence and its impact to the project if it occurs Perform Qualitative Risk Analysis Identify Risk Plan Risk Management Plan Risk Responses Knowing Whatthe Project Is:Qualitative Risk Analysis Perform Quantitative Risk Analysis

17. Ordinal Scales (rank-ordered values) • High, Medium, Low • Red, Yellow, Green • A, B, C • Cardinal Scales(assigns values) • 0 to 100% for likelihood of occurrence • 0 to 10 for impact of occurrence Knowing Whatthe Project Is:Qualitative Risk Assessment 17

18. High Probability Medium Knowing Whatthe Project Is:Qualitative Risk Assessment – Ordinal Model Low Low Medium High Impact 18

19. 10 8 6 Probability 4 Knowing Whatthe Project Is:Qualitative Risk Assessment – Cardinal Model 2 6 10 2 4 8 Impact 19

20. Objective: Develop options and actions to minimize threats and enhance opportunities to project success Perform Qualitative Risk Analysis Identify Risk Plan Risk Management Plan Risk Responses Knowing Whatthe Project Is:Risk Response Plan Perform Quantitative Risk Analysis

21. Knowing Whatthe Project Is:Risks Strategies

22. Knowing Whatthe Project Is:Risk Response Plan Template I Impacted Area/s: Enter area of potential impact: Scope, Quality, Schedule, Cost 2 Probability: Enter probability of occurrence: Low, Medium, High 3 Impact: Enter severity of consequences: Low, Medium, High 4 Strategies: Accept, Avoid, Mitigate, Transfer 5 Status: Open (O) or Close (C)

23. Team Work (40 minutes)

24. Objective: Identify and cost products, services or results from outside the project team needed to meet project goals/deliverables. • Other planning documents Knowing Whatthe Project Is:Project Procurement Planning Steps Scope Statement

25. Major Types • Fixed Price or Lump Sum • Cost-Reimbursable • Time and Material (T&M) • Risk and reward relationship • Using wrong contract type can be devastating Knowing Whatthe Project Is:Contracts 25

26. CUSTOMER PAYS 80% OF OVERRUN • CONTRACTOR PAY 20% OF OVERRUN • PROFIT IS $1500 LESS CONTRACTOR’S 20% EXAMPLE TARGET COST: $20,000 TARGET FEE: $1500 • CUSTOMER KEEPS 80% OF UNDERRUN • CONTRACTOR KEEPS 20% OF UNDERRUN • PROFIT IS $1500 PLUS CONTRACTOR’S 20% SHARING RATIO: 80/20 % Knowing Whatthe Project Is:Principles of Incentive Contracts NOTE: LIMITATIONS MAY BE IMPOSED ON PRICE OR PROFIT 26

27. Knowing Whatthe Project Is:Contract Variations 27

28. Knowing Whatthe Project Is:Contract Variations (cont.) 28

29. RISK SHARING METER 0 % 100 % FFP FPE FPIF CUSTOMER’S RISK CPIF CONTRACTOR’S RISK Knowing Whatthe Project Is:Relative Contract Risk CPAF CPPC CPFF RISK CS LOCATION C 0 % 100 % 29

30. Objective: Maps stakeholder function/s to deliverables Knowing Whatthe Project Is:Responsibility Assignment Matrix Role: who does what Responsibility: who decides what 30

31. Develop the RAM for your project. • Note: Use only 3 major deliverables of each phase for your RAM Team Work

32. Do your end and milestone dates meet the expectations of the stakeholders? Are resources available to meet project requirements? Does your cost baseline meet the project requirements? Trade-Off Analysis Iterative Process Trade-offs between competing objectives Time Cost Scope Knowing Whatthe Project Is:Balancing the Plan

33. Determine appropriate project life cycle approach • Use Scope Statement / WBS to baseline project scope • Develop a project schedule to baseline project time • Develop a cost baseline • Focus is more on “knowing what the project is” • Partner with line managers to get agreement on scope, time and cost baselines • Change control process should be in place as soon as possible • Validate progressive elaboration outputs Knowing Whatthe Project Is:PlanningBest Practices Summary