PROJECT MANAGEMENT CONCEPTS

1. PROJECT MANAGEMENT CONCEPTS Lt Col L Shri Harsha, PMP

2. OBJECTIVES • Create awareness of the concepts of Project Management and its importance • Understand the various tools available to a Project Manager to perform his duties effectively • Highlight the areas of the application of these concepts during the execution of projects

3. Importance of Project Management • Getting things done in the correct manner • Planned and prioritized work distribution and accomplishment • Identification of key process bottlenecks and suggested preventive actions • Project management process improvement • Improved risk management • Standardized reports, templates, processes and lexicon

4. What is a Project ? When task(s), • Has a defined objective • Has a deadline • Requires integration of knowledge and experience from various organizations

5. What is a Project ? How Temporary? • Has a definite beginning and end, not an on-going effort • Ceases when objectives have been attained • Team is disbanded upon project completion Unique? • The product or service is different in some way from other product or services • Product characteristics are progressively elaborated

6. Project Characteristics • Goal (measurable/verifiable) Oriented • Finite duration with a beginning and end • Uniqueness to a great extent and related uncertainties • Coordinated undertaking of interrelated activities • Performing the activities involve resources • Resources cost money

7. How are Projects different from Operations? Projects • Create own charter, organization, • and goals • Catalyst for change • Unique product or service • Heterogeneous teams • Start and end date Operations • Semi-permanent charter, organization, and goals • Maintains status quo • Standard product or service • Homogeneous teams • Ongoing

8. Project Failure • Poor communication • Insufficient resource planning • Unrealistic schedules & poor duration estimation • Poor project requirements • Lack of stakeholder buy-in & no accountability • Undefined project success / closure criteria • Unrealistic budgets • No risk planning • Lack of change control process • Lack of executive support • Resource attrition • Lack of synchronization

9. Project Success • Executive management support • User involvement (optimum) • Realistic expectations • Clear statement of requirements • Proper documentation • Public exposure • Competitive & Budgetary pressure

10. Project Life Cycle PROJECT PHASE 1 PHASE 2 PHASE 3… PHASE ‘n’ • Each phase is marked by one or more tangible verification work product referred to as deliverable • The conclusion of a project phase is generally marked by a review • The phase reviews are often called phase exits, stage gates, or kill points

11. Typical Life Cycle of Project ExecutingProcesses PlanningProcesses ClosingProcesses Level Of Activity InitiatingProcesses Controlling Processes Phase Start PhaseFinish Time

12. High Low Characteristics of a Life Cycle Opportunity to add Value Cost to make change Life Cycle of Project (Time)

13. Triple Constraint Theorem Balancing SCOPE, COST and TIME within the frame work of QUALITY* * meeting customer requirements Risk and customer satisfaction are also factors that often gets included in the perspective. Harold Kerzner

14. Project Management The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations

15. Project Stakeholders Individuals and organizations Involved in or affected by the project outcome Key Stakeholders : X Firm Key Stakeholders : Generic • Project Manager • Customer / User • Project Team Members • Functional Departments • Sales, BSG, Finance • Business Partners • Subsidiaries & Sister Concerns • Vendors and Suppliers • Project Manager • Customer/User • Performing Organization • Project Team Members • Project Management Team • Sponsors • Influencers

16. Project Management Concept • Program – Consists of a group of projects supporting broad, general goals and managed in a coordinated way • Project Portfolio ManagementCollection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives • Subprojects – Components of a project that are often contracted out • Project Management Office (PMO) • A PMO sometimes also referred as Program Management Office is an organization to centralize and coordinate the management of projects under its domain

17. Project Management Office Support • Shared and coordinated resources • Identification and development of project management methodology, best practices, and standards • Clearinghouse and management for project policies, procedures, templates, and other shared documentation • Central office for operation and management of project tools • Central coordination of communication management across projects • Coordination of overall project quality standards

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

19. Project Initiation

20. Project Initiation • Conduct Project Selection Methods • Define Scope • Document Project Risks, Assumptions, and Constraints • Identify and Perform Stakeholder Analysis • Develop Project Charter • Obtain Project Charter Approval

21. Project Charter – Project Managers Responsibilities • Define goals, objective, milestones • Determine requirements • Determine ground rules and assumptions • Identify time, cost and performance constraints • Determine operating procedures, administrative policies • Identify reportingrequirements

22. Goals vs. Objective Goals are broad Objectives are narrowGoals are general intentions Objectives are preciseGoals are intangible Objectives are tangibleGoals are abstract Objectives are concreteGoals can't be validated as is Objectives can be validated

23. Objectives are SMART • Specific • Measurable • Assignable • Realistic • Time related

24. Customer When can I get the product? What are the features that exists (that I want eliminated now)? What are the additional feature desired? How much I would have to pay? Organization When can I get the product out? What is the quantum of work involved? How many people would this project need (skill level)? What would be their utilization/availability on this project? How much would the cost/ investment for resources be? Employee What is my role and the job/task specifications in this project? What learning opportunity/new skill will I get from this project? What is the company doing to minimize overheads & maximize profits? What are the efforts and direction for new avenues of business this year? How does this company compare with and stay ahead of competition? Shareholder Managing Stakeholder Expectations Expectations Stakeholder

25. Project Planning

26. Project Planning • Develop Project Scope • Define Project Phases • Develop WBS • Define Activity List & Sequence Activities • Create Project Network Diagram • Perform Critical Path Analysis • Perform Cost Estimation • Perform Resource Planning

27. Key Tasks • Plan Project Team Organization • Create RAM • Identify Project Risks and develop Risk Reponses • Develop Project Management Plan • Baseline the Project Management Plan • Setting up Change Control Mechanism

28. Benefit of Planning Do/Undo/Redo Plan Complete Start Execute Plan Benefit of Planning Complete Start

29. Project Scope What is the WORK we are supposed to do to deliver the final service / product to the customer?

30. Product Scope The features and functionalities that categorize a product or service

31. 4 Commandments for Good Project Scope Written Well defined Clearly understood Achievable

32. Create Work Breakdown Structure • Highest level: refers to the entire project • Second level: breaks the project into its major sub- projects/phases • Third level: • Identify the deliverables for each subproject/phase • Identify the activities and tasks that are required to produce each deliverables • Lowest level breakup called work packages can be scheduled, cost estimated, monitored and controlled • Identifies track ableunits of work which are assigned to individualmembers of the project team

33. WBS Example

34. Schedule Management • Create the Activity List • State the Activity Relationships • State the Resource Requirements • Estimate the Activity Duration • Create Project Schedule

35. Prepare Network Diagram Project schedule network diagrams are schematic displays of the project’s schedule activities and the logical relationships among them, also referred to as dependencies.

36. Precedence Diagramming Method (PDM) Also known as Activity on Nodes (AON)

37. Arrow Diagramming Method (ADM) Also known as Activity on Arrow (AOA)

38. Cost Estimating • Developing an approximation of the costs of the resources needed to complete project activities.

39. Analogous estimating Bottom Up Estimating Parametric Estimating Cost Estimating

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

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

42. Risk Identification Technical Financial Socio-Economic Project management Contractual

43. Risk Response Plan • Avoid • Mitigate • Transfer • Accept • with contingency • without contingency • Share • Enhance • Exploit

44. Project Management Plan • Project scope management plan • Schedule management plan • Staffing management plan • Communication management plan • Risk management plan • Procurement management plan • Milestone list • Resource calendar • Schedule baseline • Cost baseline • Risk register

45. Project Execution

46. Project Execution • Project Execution process requires the project manager and the project team to perform multiple actions to execute the project management plan to accomplish the work defined in the project scope statement.

47. Project Execution -Major Activities • Expend effort and spend funds to accomplish the project objectives • Staff, train, and manage the project team members assigned to the project • Obtain quotations, bids, offers, or proposals as appropriate • Select sellers by choosing from among potential sellers • Obtain, manage, and use resources including materials, tools, equipment, and facilities • Implement the planned methods and standards

48. Project Execution -Major Activities (Cont) • Create, control, verify, and validate project deliverables • • Manage sellers • • Adapt approved changes into the project’s scope, plans, and • environment • Establish and manage project communication channels, both external and internal to the project team • • Collect project data and report cost, schedule, technical and quality progress, and status information to facilitate forecasting • • Collect and document lessons learned, and implement approved process improvement activities

49. Project Controlling

50. Project Controlling • The Monitor and Control Project Work process is performed to monitor project processes associated with initiating, planning, executing, and closing.