Project Management

1. CE 447 - PROJECT MANAGEMENT Project Management Project Integration Management L-1

2. The Key to Overall Project Success: Good Project Integration Management • Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle. • Many new project managers have trouble looking at the “big picture” and want to focus on too many details.

3. Integration Management • Includes processes to ensure that all the elements of a project are properly coordinated • Making tradeoffs among competing alternatives and objectives to meet stakeholder needs • Typically the most important knowledge area for the Project Manager

4. Project Integration Management Processes • Develop the project charter: Work with stakeholders to create the document that formally authorizes a project—the charter. • Develop the preliminary project scope statement: Work with stakeholders, especially users of the project’s products, services, or results, to develop the high-level scope requirements and create a preliminary project scope statement. • Develop the project management plan: Coordinate all planning efforts to create a consistent, coherent document—the project management plan.

5. Project Integration Management Processes (cont’d) • Direct and manage project execution:Carry out the project management plan by performing the activities included in it. • Monitor and control the project work: Oversee project work to meet the performance objectives of the project. • Perform integrated change control: Coordinate changes that affect the project’s deliverables and organizational process assets. • Close the project: Finalize all project activities to formally close the project.

6. Why Do We Manage Integration? • Manage change and communication • Reduce project time and cost • Involve stakeholders early and often • Make results visible • Identify problems/solutions early • Use relevant experience as early as possible

7. Who Manages Integration? • Project Manager – Integrator for the project that executes processes • Team Members – Concentrate on completing tasks, activities, & work packages • Project Sponsor – Protect project from changes and losing resources

8. How Do We Manage Integration? • Use the seven integration processes • Develop project charter • Develop project management plan • Direct and manage project execution • Monitor and control project work • Perform integrated change control • Close project or phase Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

9. How Do We Manage Integration? • Each process has: • Inputs • Tools and Techniques • Outputs • Remember that inputs and outputs can feed more than one process! Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

10. Project Integration Management Overview

11. Framework for Project Integration Management Focus on pulling everything together to reach project success!

12. Project Charters • After deciding what project to work on, it is important to let the rest of the organization know. • A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management. • Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project; a signed charter is a key output of project integration management.

13. Project Charter Project Statement of Work Inputs Tools & Techniques • Project Selection Methods • Project Management Methodology • Project Management Information System • Expert Judgment Enterprise Environmental Factors Outputs Project Charter Contract Organizational Process Assets Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

14. PreliminaryScope Statements • A scope statement is a document used to develop and confirm a common understanding of the project scope. • It is an important tool for preventing scope creep: • The tendency for project scope to keep getting bigger. • A good practice is to develop a preliminary or initial scope statement during project initiation and a more detailed scope statement as the project progresses.

15. Project objectives Product or service requirements and characteristics Project boundaries Deliverables Product acceptance criteria Project assumptions and constraints Organizational structure for the project Initial list of defined risks Summary of schedule milestones Rough order of magnitude cost estimate Configuration management requirements Description of approval requirements Contents of a Preliminary Scope Statement

16. Project Management Plans • A project management plan is a document used to coordinate all project planning documents and help guide a project’s execution and control. • Plans created in the other knowledge areas are subsidiary parts of the overall project management plan.

17. Project Management Plan Inputs Tools & Techniques Preliminary Project Scope Statement • Project Management Methodology • Project Management Information System • Expert Judgment Project Management Processes Outputs Project Management Plan Enterprise Environmental Factors Organizational Process Assets Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

18. Attributes of Project Plans • Just as projects are unique, so are project plans. • Plans should be: • Dynamic • Flexible • Updated as changes occur • Plans should first and foremost guide project execution by helping the project manager lead the project team and assess project status.

19. Common Elements of a Project Management Plan • Introduction or overview of the project. • Description of how the project is organized. • Management and technical processes used on the project. • Work to be done, schedule, and budget information.

20. Project Execution • Project execution involves managing and performing the work described in the project management plan. • The majority of time and money is usually spent on execution. • The application area of the project directly affects project execution because the products of the project are produced during project execution.

21. Coordinating Planning and Execution • Project planning and execution are intertwined and inseparable activities. • Those who will do the work should help to plan the work. • Project managers must solicit input from the team to develop realistic plans.

22. Direct & Manage Execution Outputs Inputs Tools & Techniques Project Management Plan Deliverables • Project Management Methodology • Project Management Information System Approved Corrective Actions Requested Changes Approved Preventive Actions Implemented Change Requests Approved Change Requests Implemented Corrective Actions Approved Defect Repair Implemented Preventive Actions Validated Defect Repair Implemented Defect Repair Administrative Closure Procedure Work Performance Information Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

23. Leadership and a Supportive Culture • Project managers must lead by example to demonstrate the importance of creating and then following good project plans. • Organizational culture can help project execution by: • Providing guidelines and templates. • Tracking performance based on plans. • Project managers may still need to break the rules to meet project goals, and senior managers must support those actions.

24. Important Skills for Project Execution • General management skills such as leadership, communication, and political skills. • Product, business, and application area skills and knowledge. • Use of specialized tools and techniques.

25. Project Execution Tools and Techniques • Project management methodology: Many experienced project managers believe the most effective way to improve project management is to follow a methodology that describes not only what to do in managing a project, but how to do it. • Project management information systems: Hundreds of project management software products are available on the market today, and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet.

26. Monitoring and Controlling Project Work • Changes are inevitable on most projects, so it’s important to develop and follow a process to monitor and control changes. • Monitoring project work includes collecting, measuring, and disseminating performance information. • Two important outputs of monitoring and controlling project work include recommended corrective and preventive actions.

27. Monitor & Control Project Work Tools & Techniques Outputs Recommended Corrective Actions Inputs • Project Management Methodology • Project Management Information System • Earned Value Management • Expert Judgment Project Management Plan Recommended Preventive Actions Work Performance Information Forecasts Recommended Defect Repair Rejected Change Requests Requested Changes Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

28. Integrated Change Control • Three main objectives are: • Influence the factors that create changes to ensure that changes are beneficial. • Determine that a change has occurred. • Manage actual changes as they occur. • A baseline is the approved project management plan plus approved changes.

29. Change Control System • A formal, documented process that describes when and how official project documents and work may be changed. • Describes who is authorized to make changes and how to make them.

30. Change Control Boards (CCBs) • A formal group of people responsible for approving or rejecting changes on a project. • CCBs provide guidelines for preparing change requests, evaluate change requests, and manage the implementation of approved changes. • CCBs include stakeholders from the entire organization.

31. Configuration Management • Ensures that the descriptions of the project’s products are correct and complete. • Involves identifying and controlling the functional and physical design characteristics of products and their support documentation. • Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements.

32. Integrated Change Control Tools & Techniques Outputs • Project Management Methodology • Project Management Information System • Expert Judgment Approved Change Requests Inputs Project Management Plan Rejected Change Requests Requested Changes Project Management Plan Updates Work Performance Information Project Scope Statement Updates Recommended Preventive Actions Approved Corrective Actions Recommended Corrective Actions Approved Preventive Actions Recommended Defect Repair Approved Defect Repair Deliverables Validated Defect Repair Deliverables Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

33. Closing Projects • To close a project, you must finalize all activities and transfer the completed or cancelled work to the appropriate people. • Main outputs include: • Administrative closure procedures. • Contract closure procedures. • Final products, services, or results. • Organizational process asset updates.

34. Close Project or Phase Outputs Tools & Techniques Administrative Closure Procedure Inputs Project Management Plan • Project Management Methodology • Project Management Information System • Expert Judgment Contract Closure Procedure Contract Documentation Final Product, Service, or Result Enterprise Environmental Factors Organizational Process assets Updates Organizational Process Assets Work Performance Information Deliverables Project Management Plan Direct & Manage Execution Monitor & Control Project Work Integrated Change Control Close Project or Phase Project Charter

35. PM Responsibility for Change • Influence factors that affect change • Ensure change is beneficial • Determine if a change has occurred • Determine if a change is needed • Look for alternatives to change • Minimize negative impact from change • Notify Stakeholders impacted by change • Managing those changes that do occur according to project plan

36. Responsibility • Responsibility: The duties, assignments, and accountability for results associated with a designated position in the organization.

37. Accountability • Being answerable to one's superior in an organization for the exercise of one's authority and the performance of one's duties.

38. Authority • The legitimate power given to a person in an organization to use resources to reach an objective and to exercise discipline.

39. Definitions • Lessons Learned – Document that identifies what was done right, wrong, and how to improve in the future • Baseline – The original project plan with approved changes

40. CE 447 - PROJECT MANAGEMENT Project Risk management Introduction Risk identification Risk projection (estimation) Risk mitigation, monitoring, and management L-1

41. Risk: any condition or event whose occurrence is not certain but which can cause the project to FAIL • Aim of risk management: minimize the effect of risks on a project

42. Risk ”If you don’t actively attack risks, they will actively attack you.” — Tom Gilb Project risks • budget, schedule, resources, size, personnel, morale ... Technical risks • implementation technology, verification, maintenance ... Business risks • market, sales, management, commitment ...

43. Risk Management … Management must: • identify risks as early as possible • assess whether risks are acceptable • take appropriate action to mitigate and manage risks • e.g., training, prototyping, iteration, ... • monitor risks throughout the project

44. Risk Management Techniques

45. Risk Management Techniques …

46. Risk Management Tasks Risk Management Activities

47. Definition of Risk • A risk is a potential problem – it might happen and it might not • Conceptual definition of risk • Risk concerns future happenings • Risk involves change in mind, opinion, actions, places, etc. • Risk involves choice and the uncertainty that choice entails • Two characteristics of risk • Uncertainty – the risk may or may not happen, that is, there are no 100% risks (those, instead, are called constraints) • Loss – the risk becomes a reality and unwanted consequences or losses occur

48. Risk Categorization – Approach #1 • Project risks • They threaten the project plan • If they become real, it is likely that the project schedule will slip and that costs will increase • Technical risks • They threaten the quality and timeliness of the project • If they become real, implementation may become difficult or impossible • Business risks • They threaten the viability of the project • If they become real, they jeopardize the project or the product (More on next slide)

49. Risk Categorization – Approach #1 (continued) • Sub-categories of Business risks • Market risk – building an excellent product or system that no one really wants • Strategic risk – building a product that no longer fits into the overall business strategy for the company • Sales risk – building a product that the sales force doesn't understand how to sell • Management risk – losing the support of senior management due to a change in focus or a change in people • Budget risk – losing budgetary or personnel commitment

50. Risk Categorization – Approach #2 • Known risks • Those risks that can be uncovered after careful evaluation of the project plan, the business and technical environment in which the project is being developed, and other reliable information sources (e.g., unrealistic delivery date) • Predictable risks • Those risks that are extrapolated from past project experience (e.g., past turnover) • Unpredictable risks • Those risks that can and do occur, but are extremely difficult to identify in advance