Presentation Transcript

1. Project Management

   Presented by: ENRICO C. MINA
2. Introduction (1) A projectis a unique (non-routine) organizational undertaking with a specific, well-defined result, which must be accomplished Through a series of interrelated activities According to a set of clearly defined performance expectations, standards, or specifications Within a definite time period or schedule, and Within a budgetary limit.
3. Introduction (2) Projects are different from routine, repetitive operations. However, they may be vital to the continuous improvement of the company’s quality, productivity, and competitive position. To be successful along all three dimensions of conformance to standards, cost, and timeliness, competent project management is essential.
4. Objectives At the end of this seminar, the participants will have been able to: Understand the elements of sound project management, especially as it applies to improvement projects Refine their project management conceptual, human, and technical skills Understand the factors that influence project management success
5. Agenda (1) What kaizen is Project management skills Conceptual People management Technical
6. Agenda (2) Phases of project management Defining project requirements and expectations Planning project activities and resources Implementing and controlling project activities PERT-CPM for scheduling and budgeting Potential Problem Analysis
7. Phase 1: Project Definition
8. Definition Phase (1) Definitionis the earliest part of a project when its nature, purpose, and requirements are clarified and accepted. To ensure the project’s value State the project’s ultimate purpose and achieve agreement. Develop the objectives (the result “charter”) that flow from the ultimate purpose.
9. Definition Phase (2) Develop the Work Breakdown Structure Identify resource requirements
10. How to Identify Kaizen Projects (1) Look at problems as opportunities for improvement: Take note of customer complaints and suggestions. These should lead to high priority improvement projects. Identify internal processes where defects/errors/ accidents are high, or where delays are frequent, or where costs are uncompetitive.
11. How to Identify Kaizen Projects (2) Benchmark against best-in-class business processes. Internal (against best practices in sister plants, branches, or facilities of the same organization) Competitive (against best practices of competitors) Functional (against best practices of other organizations, not necessarily in the same business)
12. Stating the Project (1) Purpose: To define the purpose and scope of the project Ask: What needs to be done? Why are we doing this? What are the benefits? When do we need to be finished? Why? How much will/can this cost? What are the assumptions?
13. Stating the Project (2) Write the Project Statement Action and end result (performance, specifications, outcomes) Time frame Cost or budget Example: Install and certify pollution control equipment at the boilerhouse from February 1 – May 31, 20__ at a cost not exceeding P500,000.
14. Developing Objectives (1) Purpose:To define the benefits and measures of success for a project Ask: At the end of the project, what value-adding output will we or our customers have? What benefits do we want? What constraints do we have to overcome? What requirements must be met? How will we know if we are able to satisfy each objective? What are the measures?
15. Developing Objectives (2) Write a list of statements Specific benefits (quantitative and qualitative) Other objectives Compare objectives to original concerns and ultimate purpose. Are they consistent?
16. Developing the Work Breakdown Structure (1) Purpose: To establish specific outputs and accomplishments to be completed Ask: What do we want to accomplish in this project? What are the major outputs of this project? What are its component parts or deliverables?
17. Developing the Work Breakdown Structure (2) List the major outputs and deliverables. Separate each deliverable into sub-deliverables by continually asking “How do we accomplish this?” Develop a chart or outline.
18. Developing the Work Breakdown Structure (3) The Work Breakdown Structure (WBS)is a graph or outline showing how major deliverables relate to sub-deliverables. The lowest level deliverable or result is called a terminal element. All work is done and all resources are used in terminal elements. They provide the details for project planning.
19. Developing the Work Breakdown Structure (4) Terminal elements combine to produce all higher level deliverables. Each terminal element should have a specific quality or performance standard.
20. Work Breakdown Structure
21. Identify Resource Requirements (1) Purpose: To avoid future resource problems and help assign responsibility For each terminal element, ask: What competencies (knowledge and skills) are needed? What facilities will we need? What equipment is required? What materials/supplies should we have? What special or unique resources do we need? Identify the type, quantity, timing, and cost.
22. Resource Requirements
23. The Project Manager (1) The Project Manageris the person with the responsibility and authority to manage the project. The Project Manager should have: Adequate time to devote to the project Conceptual skills – the ability to see the project from a total system perspective and to relate it to the larger environmental system with which it has to interact when completed.
24. The Project Manager (2) People management skills – the ability to lead, supervise, motivate, and communicate with the people who are involved in the project (the project team members as well as suppliers, contractors, subcontractors) Technical skills – sufficient level of expertise or familiarity with the technical content of the project Support from the management
25. Identifying Subprojects (1) Purpose:To make the work easier to manage Ask: Is the project large or complex? Is work for one part specialized? Should resources be managed differently for part of the work?
26. Identifying Subprojects (2) Will responsibility be delegated to one person for a number of related elements? Is it easier to think about several smaller projects? (e.g., doing the project in small, clearly-separable phases) Write a Project Statement for each.
27. Phase 2: Project Planning
28. Planning Phase Planningis the second phase of a project, when responsibility is assigned and work is scheduled. The purpose is to organize the work and avoid future problems. Activities: Assign responsibility Sequence deliverables Schedule deliverables Schedule resources Protect the plan
29. Assign Responsibility (1) Purpose: To ensure clear ownership and accountability for all work done on the project. Ask: Who has resources for this terminal element? Who has skill, knowledge, or information? Whose commitment do we need?
30. Assign Responsibility (2) List who will contribute to each terminal element and what they will do. Show primary or direct responsibility for each terminal element. There should be no gaps or overlaps. Summarize in a Responsibility Assignment Matrix (RAM).
31. Responsibility Assignment Matrix Persons Resp. Terminal Elements P = primary responsibility
32. Initial Work Negotiation Purpose:To get initial commitment of responsibility Review the responsibility assignments with each team member, and get understanding and acceptance. Establish initial commitment to work on the project. Confirm: That work assignments are appropriate That people are available That cost estimates are correct
33. Sequence Deliverables Purpose: To help schedule work efficiently Identify all WBS terminal elements. Estimate time duration for each. List precedence relationships. For complex projects, draw a network diagram (e.g., PERT-CPM)
34. Network Diagrams Network Diagrams are drawings which show the sequence and precedence among terminal elements. One of the most popular is the Program Evaluation and Review Technique and the Critical Path Method (PERT-CPM).
35. PERT-CPM (1) The six steps of PERT-CPM are: Define the project and all of its significant activities or tasks (i.e., the terminal elements). Develop the relationships among the activities. Decide which activities must precede others. Draw the network diagram connecting all of the activities.
36. PERT-CPM (2) Assign time and/or cost estimates to each activity. Compute the longest time path through the network; this is called the critical path. Use the network to help plan, monitor, and control the project.
37. PERT-CPM (3) Almost any large project can be subdivided into a series of smaller activities or tasks that can be analyzed with PERT-CPM. Since projects can have hundreds of specific activities, it is important to answer these questions: When will the entire project be completed? What are the critical activities, i.e., the ones that will delay the entire project if they are late?
38. PERT-CPM (4) Which are the non-critical activities, i.e., the ones that can run late without delaying the entire project’s completion? What is the probability that the project will be completed by a specific date? At any particular date, is the project on schedule, behind schedule, or ahead of schedule?
39. PERT-CPM (5) On any given date, is the money spent equal to, less than, or greater than the budgeted amount? Are there enough resources available to finish the project on time? If the project is to be finished in a shorter amount of time, what is the best way to accomplish this at the least cost?
40. PERT-CPM (6) Example: ABC Co. has to complete the installation of a complex smoke filtration system in its main smokestack within 16 weeks or else face sanctions. At the planning stage, the activities and their immediate predecessors were identified as follows:
41. PERT-CPM (7)
42. C F A H Finish E Start G D B PERT-CPM (8) The Network Diagram
43. PERT-CPM (9) The next step is to estimate the time required to complete each activity. Because of the uncertainty inherent in one-of-a-kind projects, three estimates are made: Optimistic time (a) – time an activity will take if all goes as well as possible Most likely time (m) – most realistic time Pessimistic time (b) – time an activity will take assuming very unfavorable conditions t = (a + 4m + b)/6
44. PERT-CPM (10)
45. PERT-CPM (11) The critical pathis the longest path route through the network. Any delay of an activity on the critical path will delay completion of the entire project. To find the critical path, we need to determine the following quantities for each activity in the network: Earliest start time (ES) – the earliest time an activity can begin without violating the immediate predecessor requirements
46. PERT-CPM (12) Earliest finish time (EF) – the earliest time at which an activity can end Latest start time (LS) – the latest time an activity can begin without delaying the entire project Latest finish (LF) – the latest time an activity can end without delaying the entire project
47. ACTIVITY t ES EF LS LF PERT-CPM (13) In the network we represent these times as well as the activity times (t) in the nodes: EF = earliest start time + expected activity time EF = ES + t Before any activity can be started, all of its predecessor activities must be completed. ES = largest EF of immediate predecessors
48. PERT-CPM (14) The start of the whole project will be set at time 0. Therefore, any activity that has no predecessors will have an ES of 0. The rest of the earliest times are found using a forward pass through the network, i.e., going from start to finish.
49. PERT-CPM (15) The next step in finding the critical path is to compute the LS and the LF for each activity. This is done using a backward pass through the network, i.e., starting at the finish and working backward to the start. LS = latest finish time – activity time LS = LF – t If an activity is the immediate predecessor for two or more activities, it must be finished so that all following activities can begin by their LS times. LF = smallest LS of following activities
50. PERT-CPM (16) F 3 A 2 C 2 4 7 0 2 2 4 10 13 2 4 0 2 E 4 H 2 Start 4 8 Finish 13 15 4 8 13 15 B 3 D 4 G 5 3 7 0 3 8 13 8 13 4 8 1 4
51. PERT-CPM (17) When ES, LS, EF, and LF have been determined, it is a simple matter to find the amount of slack time, or free time, that each activity has. Slack is the length of time an activity can be delayed without delaying the whole project. Slack = LS – ES or slack = LF – EF Activities that have 0 slack are critical activities and are on the critical path. None of them can be delayed without delaying the entire project. CP = A, C, E, G, H
52. PERT-CPM (18) The probability of completion can be computed. The dispersion or variance of activity completion time is given by the formula: Variance = b – a2 6 PERT uses the variance of critical path activities to determine the variance of the overall project. Project variance =  variances of activities on the critical path
53. PERT-CPM (19)
54. PERT-CPM (20) Project variance = 112/36 = 3.111 Project standard deviation is the square root of the project variance. σt = √ project variance σt = √3.111 = 1.76 weeks We compute for the normal deviate Z Z = due date – expected date of completion σt Z = (16 weeks – 15 weeks)/1.76 = 0.57
55. PERT-CPM (21) Using a table of areas under the normal curve, Z = 0.57 corresponds to a probability of 0.7157. Thus, there is a 71.6% chance that the pollution control equipment can be put in place in 16 weeks or less.
56. The Gantt Chart (1) A Gantt Chart is a linear calendar, developed by Henry L. Gantt, that spreads future time horizontally while the work to be done, sequenced according to precedence, is shown vertically. The length of the horizontal bars represent the length of time of a WBS terminal element. The results of a PERT-CPM network can be translated into a Gantt Chart for ease of understanding and monitoring.
57. The Gantt Chart (2)
58. Exercise for PERT-CPM (1) This is a small-group activity. Time limit = 1 hr. Given the activities, time estimates, and immediate predecessor relationships in the table: Draw the network diagram. Compute for the t, ES, EF, LS, LF, and slack. Identify the activities on the critical path. Compute for the expected project length in weeks. Compute for the variances of critical activities. Compute for the std. deviation of the critical path. Compute for the probability of completing w/in 20 weeks.
59. Exercise for PERT-CPM (2)
60. Schedule Resources Purposes: To ensure good use of resources To help maintain commitment of resources Discuss with each resource manager. Confirm or negotiate specific schedule commitments for each resource. Be sure to appreciate and acknowledge the priorities and constraints of each RM.
61. Scheduling Project Costs Using PERT-CPM (1) The overall approach in the budgeting processof a project is to determine how much is to be spent every week or month. Identify all costs associated with each of the activities. Then add these costs together to get one estimated cost or budget for each activity. For a large project, several activities can be combined into larger work packages. A work package is a logical collection of activities or terminal elements.
62. Scheduling Project Costs Using PERT-CPM (2) Convert the budgeted cost per activity into a cost per time period. To do this, assume that the cost of completing any activity is spent at a uniform rate over time. Using the earliest and latest start times (ES and LS), find out how much money should be spent during each week or month to finish the project by the date desired.
63. Scheduling Project Costs Using PERT-CPM (3)
64. Budgeted Cost Using ES
65. Budgeted Cost Using LS
66. Project Crashing (1) Purpose: To reduce the overall timetable of the project to a desired target Project crashing is done when the expected normal timetable exceeds a desired deadline. Crashing usually involves adding resources and therefore increasing costs, in exchange for the gain in time.
67. Project Crashing (2) Four steps of project crashing: Find the normal critical path and identify the critical activities. Compute the crash cost per week (or other time period) for all activities in the network. crash cost/time period = crash cost – normal cost normal time – crash time
68. Project Crashing (3) Select the activity on the critical path with the smallest crash cost per time period. Crash this activity to the maximum extent possible or to the point at which the desired deadline has been reached. Check to be sure that the critical path you were crashing is still critical. If not find the new critical path. Return to Step 3.
69. Project Crashing (4) Compute the total cost of crashing needed to achieve the target deadline and compare this with the benefit to be gained (or the penalty to be avoided). Make sure that crashing the project will result in a net positive benefit.
70. Project Crashing (5)
71. Project Crashing (6) F 3 A 1 C 2 3 6 0 1 1 3 9 12 1 3 0 1 E 4 H 2 Start 3 7 Finish 12 14 3 7 12 14 B 3 D 4 G 5 3 7 0 3 7 12 7 12 3 7 0 3
72. Protect the Plan Purpose: To help ensure that we meet or exceed the project objectives Spot areas of the plan where we are concerned (particularly activities or terminal elements on the critical path). Use Potential Problem Analysis.
73. Identify Areas of Concern Purpose:To set priority for limited resources and time Ask: Which terminal elements are on the critical path? Which terminal elements are new (where we have no prior experience)? Which terminal elements are complex? Where have we had trouble before?
74. Potential Problem Analysis (1) Identify what can go wrong at terminal element of concern and the corresponding causes. Estimate the probability of occurrence of each potential problem: High = almost certain to happen Medium = about 50% chance of happening Low = unlikely to happen Take preventive actions to reduce the probability of occurrence.
75. Potential Problem Analysis (2) Estimate the seriousness of the effect if what can go wrong does happen High = disaster; very threatening situation Medium = damaging and painful but survivable Low = a minor inconvenience Design contingent actions that will reduce the seriousness in case the problem still happens in spite of the preventive actions. Identify the trigger (an event or information that will activate the contingent action).
76. Potential Problem Analysis Spreadsheet
77. Project Management Discussions
78. People Management Skills Purpose:To help maintain relationships and management performance throughout a project All project activities are accomplished by people who work under the supervision of the Project Manager.
79. Being Aware of the Performance Environment Purpose:To help promote desirable performance Use the ABC model Antecedent – Behavior – Consequence First describe the behavior, then look for antecedents, and finally look for consequences Use the performer’s point of view.
80. Project Management Discussions (1) Project Management Discussionis a conversation between the Project Manager and others concerning any aspect of the project. Purposes: To clarify or resolve issues To set expectations or give feedback
81. Project Management Discussions (2) Activities during a PMD: Give or gather information Analyze information Gain and test understanding Determine action Evaluate results of decisions PMDs are used in all phases. May be formal or casual.
82. Project Management Discussions (3) Skills required for PMDs: Questioning Listening Pinpointing Giving feedback
83. Questioning (1) Closed questions are answerable by “yes” or “no” or by a specific piece of information. Open-ended questions have a multitude of answers. Questioning to the Voidis re-asking a question to get the most specific or most complete answer. Making issues specific makes them easier to work on.
84. Questioning (2) Ask Turn-around questions Re-ask about the answer you get. Look for the most specific answer. “What else” questions Re-ask the question in the same form. Look for the most complete answer.
85. Questioning (3) Two of the most useful: Ask “Why?” five times in succession to arrive at the root cause of problems. Ask “How?” five times in succession to identify the critical details on a course of action.
86. Active Listening (1) Active listeningis giving attention and providing feedback to the speaker. Purpose:To ensure clear, open communication How to do: Establish contact: Face the speaker and establish eye contact. Give him/her the opportunity to talk freely.
87. Active Listening (2) Ask for clarification if needed. Acknowledge Reflect enthusiasm or concern Rephrase or ask confirming questions Summarize facts and feelings Avoid the barriers to listening (e.g., distractions, prejudice, lack of focus, semantic difficulties, etc.)
88. Sensitive Listening (1) Sensitive listeningis listening for feelings and commitments. Purpose:To help recognize performance concerns How to do: Listen for expressions of feeling Tone of voice Facial expression “Loaded” words
89. Sensitive Listening (2) Test for empathy Reflect or show your feelings. Ask closed questions to confirm.
90. Pinpointing (1) Pinpointingis describing performance in terms of specific behavior or results. Purpose: To set clear expectations and give clear feedback How to do: Describe the performance in observable or measurable terms.
91. Pinpointing (2) Separate and clarify. Tackle one issue at a time. Avoid labels and other value-laden words (e.g., inferences, generalities, assumptions or judgments). Practice non-blaming, non-judgmental behavior. Focus on the problem, rather than on the person.
92. Feedback (1) Feedback is information given to others about their performance. Purpose:To support or improve performance How to do: Spot opportunities Look for things that have impact (the critical few).
93. Feedback (2) Look for success as well as trouble. Encourage “bad news reporting” through non-blaming, non-judgmental behavior. Pinpoint what you saw. Describe the impact. Pinpoint what you want. Test for understanding and agreement.
94. Project Meetings (1) Project Meetingsare formally held PMDs presided over by the Project Manager, usually at regular intervals and with a pre-determined agenda. Purposes: To improve communication To increase involvement and participation
95. Project Meetings (2) How to ensure success: Prepare agenda ahead of time. Limit to critical items and arrange in descending order of importance. Choose who to involve and why. Communicate the date, time, place, and agenda. Have everything needed in place before starting. Separate WHAT you work on from HOW you work. Keep your work visible to the group. Document and distribute results
96. Project Meetings (3) Suggested agenda items for regular meetings: Safety, health, and environmental issues; corrective/preventive actions Quality issues; corrective/preventive actions Work progress vs. milestones; causes of delays, if any, and corrective/preventive actions Legal/regulatory issues Actual vs. budgeted costs Human resource issues
97. Phase 3: Project Implementation
98. Implementation Phase (1) Implementation is the final phase of a project when deliverables are produced to meet the project objectives. Purpose: To deliver the value of the project Activities: Launch implementation. Monitor project.
99. Implementation Phase (2) Take corrective and preventive actions when deviations are detected. Modify project, if needed. Closeout and evaluate.
100. Launch Implementation (1) Purpose: To ensure work begins on time with clear performance standards Meet with those who will work on the project, including internal support personnel and external contractors, subcontractors, and suppliers.
101. Launch Implementation (2) Use Project Management Discussions Review project statement and objectives. Set ground rules for working together. Review initial project assignments and responsibilities (the Responsibility Assignment Matrix). Confirm performance expectations and get firm commitments.
102. Monitor Project (1) Purpose:To keep the project on track Aspects to monitor: Progress against objectives Progress against milestones Conformance to quality standards Resource use and cost Human performance Safety, health, and environmental performance
103. Monitor Project (2) Set performance and deliverable expectations in advance. Make them measurable or verifiable. Use either scheduled reviews (PMDs or formal meetings) or triggers (when critical deviations are detected) to monitor.
104. Milestones (1) Milestonesare events that mark the completion of part of a project (i.e., they are intermediate results). Purpose:To show where progress can be checked Review the WBS, sequence and schedule.
105. Milestones (2) Add milestones to mark: Completion of a major deliverable Start or finish of a subproject Start or finish of important terminal elements Regularly scheduled review periods (e.g., monthly) Schedule reviews around milestones.
106. Conformance to Quality Standards The project’s quality standards must be aligned with the requirements and expectations of the users or customers. Make these measurable or tangible As much as possible, involve users or customers in the review of quality performance during the implementation of the project. Have them sign off after each review.
107. Monitoring and Controlling Project Costs Using PERT-CPM (1) The purpose of monitoring and controlling project costs is to ensure that the project is progressing on schedule and that cost overruns are kept to a minimum. The value of work completed, or the cost-to-date for any activity, can be computed as: v = (% of work completed) x tot actvty budget activity difference = actual cost - v
108. Monitoring and Controlling Project Costs Using PERT-CPM (2) If an activity difference is negative, there is a cost underrun. If the difference is positive, there has been a cost overrun. In either case, the project manager must determine the causes so that he can take the appropriate action. In case of underrun, he can realign his budget. In case of overrun, he can take corrective action.
109. Monitoring and Controlling Budgeted Cost at Wk 6
110. Human Performance Human performance refers to the monitoring of performance variables that are highly influenced by behavior of people. Punctuality and absenteeism Conformance with policies, procedures, and rules Application of skills and other competencies
111. Safety, Health, and Environment Issues For large, complex projects, safety, health, and environmental issues may be critical. Underlying all three is good housekeeping. The project must have clearly defined standards (policies, specifications, procedures, and rules) governing these. These must be communicated to everyone (including suppliers, contractors, and subcontractors) and continually monitored for conformance.
112. Two Key Principles of Monitoring Two key principles underlie all available approaches to monitoring. A clear standard of performance – measurable or verifiable, written down, typically derived from the WBS and the project plan Accurate, timely, and complete feedback on project performance in a useful format – enabling responsible persons to know exactly what is going on as soon as it happens.
113. Modify Project Purpose:To respond to problems, opportunities, or even changes in objectives (may be caused by a change in the external environment) Review and clarify threats and opportunities. Locate the earliest point in the process when each concern has impact. Use the Definition and Planning phase steps as required to revise the plan.
114. Closeout and Evaluate (1) Purpose:To ensure all objectives were met and share lessons learned Include closeout activities in the WBS, resource requirements, RAM, and schedule. It may be useful to create a checklist for all the critical items in the project. This checklist is specific to the particular project. In the closeout stage, use the checklist to ensure that everything is in order.
115. Closeout and Evaluate (2) Use Project Management Discussions Review success against objectives and standards. Inform others that the project is finished. Operations Finance Logistics Insurance Security Get formal acceptance (in writing) from the user.
116. Closeout and Evaluate (3) Review lessons learned that can be applied to the improvement of the management of future projects. Bring closure to the project team. Give recognition. Celebrate! Document a project summary.
117. Project Success Factors (1) Project team commitment Accurate initial cost estimates Project team capabilities and competencies Adequate funding throughout the project Effectiveness of planning and control Minimum start-up difficulties Absence of bureaucracy
118. Project Success Factors (2) A balance between the task and social orientations of the team Competent Project Manager on-site with full authority over project implementation Clear, measurable criteria for success An information system that provides accurate, timely, and complete feedback
119. Exercise on Lessons Learned (1) Within 1 hour, individually identify the Project Management practices that you will: START STOP CONTINUE Share with your small group and take note of useful ideas. Take note of common points.
120. Exercise on Lessons Learned (2) Appoint a spokesperson who will share the results of the discussion with the class.