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Part II

Part II. Project Planning. Project Management. Chapter 6. Project Activity and Risk Planning. Initial Project Coordination and the Project Charter. Early meetings are used to decide on participating in the project Used to “flesh out” the nature of the project Outcomes include:

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Part II

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  1. Part II Project Planning

  2. Project Management

  3. Chapter 6 Project Activity and Risk Planning

  4. Initial Project Coordination and the Project Charter • Early meetings are used to decide on participating in the project • Used to “flesh out” the nature of the project • Outcomes include: • Technical scope • Areas of responsibility • Delivery dates or budgets • Risk management group

  5. Outside Clients • When it is for outside clients, specifications cannot be changed without the client’s permission • Client may place budget constraints on the project • May be competing against other firms

  6. Project Charter Elements • Purpose • Objectives • Overview • Schedules • Resources • Personnel • Risk management plans • Evaluation methods

  7. Integration Processes • Develop Project Charter • Develop Project Management Plan • Direct & Manage Project Execution • Monitor & Control Project Work • Perform Integrated Change Control • Close Project or Phase

  8. Project Charter • What goes into your Project Charter?

  9. Project Charter • What goes into your Project Charter? • Title • Description • Who is the Project Manager? What is their authority? • What is the business need? • What is the justification? • What are the assigned resources? • Who are the stakeholders? • What are the known stakeholder requirements? • What are the deliverables? • What are the constraints? • What are the assumptions?

  10. Project Charter • Where does all this information come from? • Primarily, the sponsor. • Who is the sponsor? What is their role?

  11. Project Charter

  12. Project Charter • Project Statement of Work • Created by the customer or sponsor • Gives the description of the project scope • Links the project to the strategic plan • Think of it as a high level “contract” between the sponsor and the Project Manager

  13. Project Charter • Business Case • What are some examples of a business case?

  14. Project Charter • Business Case • Market demand • Organizational need • Customer request • Technological advance • Legal requirement • Ecological impact • Social need

  15. Project Charter • Contract • Many projects begin because a contract has been signed • The contract will give us many details of what we need to know • If this is the case, then include a copy of the contract with the Project Charter

  16. Project Charter • Enterprise Environmental Factors • “Company culture and existing systems that the project will have to deal with or can make use of.” • Could be positive or negative • Company organization • Stakeholder tolerances • Relevant standards • Think of as “the baggage”

  17. Project Charter • Enterprise Environmental Factors • Examples: • Company culture • Government or industry standards • Regulations, quality standards, etc • Existing HR skills • Personnel administration • Hiring & firing guidelines • Past performance reviews of employees • Union contacts • PM Info Systems • Company ordering and scheduling tools, etc

  18. Project Charter • Organizational Process Assets • Processes, procedures, policies, corporate knowledge bases and historical information • Lessons learned • Historical records • Templates • Learning the organization has done in the past to help the projects of today • Best practices

  19. Starting the Project Plan: The WBS • What is to be done • When it is to be started and finished • Who is going to do it

  20. Starting the Project Plan: The WBS Continued • Some activities must be done sequentially • Some activities may be done simultaneously • Many things must happen when and how they are supposed to happen • Each detail is uncertain and subjected to risk

  21. Hierarchical Planning • Major tasks are listed • Each major task is broken down into detail • This continues until all the activities to be completed are listed • Need to know which activities “depend on” other activities

  22. A Form to Assist Hierarchical Planning Figure 6-2

  23. Career Day Figure 6-4

  24. The Work Breakdown Structure (WBS) • A hierarchical planning process • Breaks tasks down into successively finer levels of detail • Continues until all meaningful tasks or work packages have been identified • These make tracking the work easier • Need separate budget/schedule for each task or work package

  25. A Visual WBS Figure 6-3

  26. Steps to Create a WBS • List the task breakdown in successive levels • Identify data for each work package • Review work package information • Cost the work packages • Schedule the work packages • Continually examine actual resource use • Continually examine schedule

  27. Human Resources • Useful to create a table that shows staff needed to execute WBS tasks • One approach is an organizational breakdown structure • Organizational units responsible for each WBS element • Who must approve changes of scope • Who must be notified of progress • WBS and OBS may not be identical

  28. The Responsibility (RACI) Matrix • Another approach is the Responsible, Accountable, Consult, Inform (RACI) matrix • Also known as a responsibility matrix, a linear responsibility chart, an assignment matrix, a responsibility assignment matrix • Shows critical interfaces • Keeps track of who must approve what and who must be notified

  29. Sample RACI Matrix Figure 6-7

  30. Agile Project Planning and Management • When scope cannot be determined in advance, traditional planning does not work • Agile project management was developed to deal with this problem in IT • Small teams are located at a single site • Entire team collaborates • Team deals with one requirement at-a-time with the scope frozen

  31. Interface Coordination Through Integration Management • Managing a project requires a great deal of coordination • Projects typically draw from many parts of the organization as well as outsiders • All of these must be coordinated • The RACI matrix helps the project manager accomplish this

  32. Managing Projects by Phases and Phase-Gates • Break objectives into shorter term sub-objectives • Project life cycle is used for breaking a project up into component phases • Focus on specific, short-term output • Lots of feedback between disciplines

  33. Risk Management • Projects are risky, uncertainty is high • Project manager must manage this risk • This is called “risk management” • Risk varies widely between projects • Risk also varies widely between organizations • Risk management should be built on the results of prior projects

  34. Parts to Risk Management • Risk management planning • Risk identification • Qualitative risk analysis • Quantitative risk analysis • Risk response planning • Risk monitoring and control • The risk management register

  35. Risk Management Planning • Need to know the risk involved before selecting a project • Risk management plan must be carried out before the project can be formally selected • At first, focus is on externalities • Track and estimate project survival • Project risks take shape during planning • Often handled by project office

  36. Risk Identification • Risk is dependent on technology and environmental factors • Delphi method is useful for identifying project risks • Other methods include brainstorming, nominal group techniques, checklists, and attribute listing • May also use cause-effect diagrams, flow charts, influence charts, SWOT analysis

  37. Qualitative Risk Analysis • Purpose is to prioritize risks • A sense of the impact is also needed • Each objective should be scaled and weighted • Construct a risk matrix • Same approach can be used for opportunities

  38. Risk Matrix Figure 6-12

  39. Quantitative Risk Analysis • List ways a project can fail • Evaluate severity • Estimate likelihood • Estimate the inability to detect • Find the risk priority number (RPN) (RPN = S  L  D) • Consider ways to reduce the S, L, and D for each cause of failure

  40. A FMEA Example Table 6-1

  41. Decision Tree Analysis Figure 6-13

  42. Threats Avoid Transfer Mitigate Accept Opportunities Exploit Share Enhance Accept Risk Response Planning

  43. Risk Monitoring and Control • Monitoring covered in detail in Chapter 10 • Control covered in Chapter 11

  44. The Risk Management Register • Environments that may impact projects • Assumptions made • Risks identified • List of categories and key words • Estimates on risk, states of project’s environment, or on project assumptions • Minutes • Actual outcomes

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