Project Management for Your Local Section / Chapter Lee Stogner, PMP

1. Project Management for Your Local Section / ChapterLee Stogner, PMP 2005 Leadership Workshop Tucson, Arizona March 12, 2005

2. Seminar Objectives

3. Benefits of Sound Project Management • Less overall project cost • Less strain on working capital • Effective use of resources • More timely project completion • Higher quality of the final product

4. Project Management Overview • What is a project? • What is project management? • What is project success? • What factors determine project success?

5. A Project When a task... • Has a defined objective • Has a deadline • Requires integration of knowledge and experience from various organizations

6. Project Management is: PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM

7. Project Management is:Causing a PlannedUndertaking to Happen PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM

8. Project Management • Complex and numerous activities • Unique - a one time set of events • Finite - a begin and end date • Limited resources and budget • Many people involved • Sequenced activities • End product or service must result

9. Program Management • Larger in scope than a project • Made up of several projects • Made up of a number of similar products • Programs tend to be more permanent

10. Peanuts

11. What is Project Success?

12. Factors in Project Success • Project Management Philosophy • Project Management Role and Responsibility • Project Management Principles and Practices

13. Project Management Philosophy • The “Golden Rule” of Project Management is three words: • Plan • Organize • Control

14. Project Management Roles and Responsibilities • Project Execution • Maintain Customer Relations • Create a Positive Environment

15. Project Execution Plan • Project Execution Strategy • Project Management • Quality • Safety • Risk Management • Design/Develop/Program • Implementation • Documentation • Training Project Execution Plan

16. Customer Relations • Develop Communication • Ensure Timely Participation • Include the Customer on the Project Team • Develop Trust and Confidence

17. Create a Positive Environment • __________ Effectively • __________ Member of the Team • Utilize _______ _______ Activities • __________ Success

18. Maintain a safe working environment Safety

19. Project Management Principles and Practices • Define Project Objectives • Develop Project Execution Plan • Define Baselines for Control • Manage Risk • Close out Effectively

20. Define Project Objectives • Expected deliverables • Required resources (total installed cost) • Required timing (opening date) • Safety and Environmental • Total Quality

21. Define S.M.A.R.T. Project Objectives • S pecific • M easurable • A ssignable • R ealistic • T ime related

22. Alignment Process

23. Team Requirements • Skills needed ? • Individuals identified ? • When are they needed ? • Where are they ? • Training needed ? • Interpersonal compatibility ?

24. The Four Cornerstones of Project Management Cost Schedule Quality Scope

25. Cornerstones ofProject Management Cost Schedule Scope Quality

26. ScopePoor scope definition is the major contributing factor to cost overruns in the engineering and construction industry. CAUTION

27. Cost Influence Relative Time

28. Initial Scoping Effort • Sets the baseline for cost and schedule • Must involve the right people • Must include implementation • Identifies items not included • Maximum influence on project cost • Breaks project into manageable pieces

29. The WBS $ Drawings Estimate • Facility Bill of Materials • Services WBS Element/ Work Package Schedule Cost Reports Contracts

30. Successful Work Breakdown • Status and completion is easily measured • Definite beginning and end • It is familiar with prior experience • Manageable work assignments • One continuous stream of work from start to finish

31. Steps for constructing a WBS • Divide the project into major objectives • Partition objectives into activities • Divide activities with missing characteristics into subactivities • Repeat #3 until all subactivities have desired characteristics • Lowest subactivities are the basis of work packages

32. Creeping scope The effect of “creeping scope” is a major cause of cost overruns $

33. To manage creeping scope • Keep scope documents current • Freeze design after the estimate has been approved • Allow only those changes that are justified by benefit • Use an effective change management procedure

34. The Four Commandments of Good Project Scope Written Well defined Clearly understood Achievable

35. Cornerstones ofProject Management Cost Schedule Quality Scope

36. Aspects of Cost • Estimate Basis for Control • Cost Control Application of control procedures to follow financial progress

37. Estimate Requirements • Define project cost integrate scope, schedule, and resources • Define estimate basis • Identify potential risks • Identify contingency/escalation • Identify items not included

38. Elements of Cost Control • Establish the baseline (estimate) • Measure variation from baseline • Take corrective action

39. Cost Control System • Detailed project scope/work package • Control estimate • Chart of accounts • Cost status report • Forecasting process • Change management procedure • Cash flow forecast

40. Project Control Project Day 1 -------------- To do list: Kick off meeting Project schedule

41. Integration of Cost and Time

42. Basic Elements of the Control System • A project plan: Scope, schedule, estimates • A monitoring system which measures performance against plan • A reporting system which identifies deviations from the plan • A system which communicates deviations to the right people • Corrective actions • Forecasting the project outcome

43. Key Control Philosophies • Define the baseline for control 1._______ 2. ________ 3. _______ 4. ________ • Divide project into manageable pieces • Remember: Ability to influence cost is maximum early in the project Project Success

44. Key Control Philosophies (con’t) Project Success • Define and manage risk/opportunity • Integrate scope and estimated cost into schedule • Make informed decisions • Anticipate deviations/changes • Adopt the “end product” approach • Plan ahead from phase to phase

45. Basic Project Control Steps • Define the project scope • Develop a project plan consistent with: • project scope • estimates (cost constraints) • schedule (constraints • resources available • Report progress and compare with budget and forecast • Control by taking corrective action

46. Contingency - Plan for Change

47. Cornerstones ofProject Management Schedule Cost Quality Scope

48. Schedule • Planning - Identification of the sequence of events necessary to complete the project • Scheduling - Determination of timing and assembly of project activities to give overall completion time

49. Front End Schedule A way to get the project started right Design Program Install / Test System Turnover

50. Basis for Project Schedule • Project objectives • Project scope • Project milestones • Project estimate (budget) • Resource availability