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PROJECT MANAGEMENT

PROJECT MANAGEMENT. Presented by: John Rakos, MSc, PMP President, John J. Rakos & Associates Consultants Ltd. John J. Rakos is available to teach or consult in any topic presented in this seminar. INTRODUCTION. Reference sources

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PROJECT MANAGEMENT

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  1. PROJECT MANAGEMENT Presented by: John Rakos, MSc, PMP President, John J. Rakos & Associates Consultants Ltd. John J. Rakos is available to teach or consult in any topic presented in this seminar. Module 1 - Introduction

  2. INTRODUCTION Reference sources A Guide to the Project Management Body of Knowledge (2003). The Project Management Institute. http://www.pmi.org Rakos, John J. et al, A Practical Guide to Project Management Documentation, Wiley, 2004 Kerzner, Harold. Project Management: A Systems Approach to Planning, Scheduling and Controlling. 6th ed. John Wiley & Sons, 1998. Rakos, John J. Software Project Management for Small to Medium Sized Projects. Prentice-Hall, 1990. Module 1 - Introduction

  3. INTRODUCTION The Value of Project Management • Allows for excellent organization and tracking • Better control and use of resources • Reduces complexity of inter-related tasks • Allows measurement of outcome versus plans • Early identification of problems and quick correction Module 1 - Introduction

  4. INTRODUCTION PMBOKTM Knowledge Areas • Based on the Project Management Institute’s Project Management Body of Knowledge: PMBOK1 • Nine knowledge areas: • This webinar: Scope, Time, Cost, Risk, Integration -- Next webinar: Quality, Procurement, Communications, Human Resources, Integration Module 1 - Introduction

  5. INTRODUCTION PMP Certification Internationally accepted accreditation Get certification 3 (5 without degree) years experience 35 hours training 4 hour, 200 questions, multiple choice exam! Have to be re-certified every 3 years 60 PDUs • Attending a conference • Attending course • PMI membership • Publications • PM work Module 1 - Introduction

  6. INTRODUCTION What is a Project? A project is a temporary endeavor undertaken to create a unique product or service - A Guide to the Project Management Body of Knowledge (PMBOK™), Project Management Institute, 2003 • One time • Limited funds/time • Specific resources utilized • Performed by people - Single or multi-person team • Planned, controlled • Specific Deliverables Module 1 - Introduction

  7. INTRODUCTION The Triple Constraint of Projects • On Time, Budget, Quality = Required Scope Time Cost Quality • Integration • Trade – Off’s Module 1 - Introduction

  8. INTRODUCTION Project Life Cycle Concept Planning Execution/Control Closing Definition | Analysis |Design|Build|Test|Accept| Implement| Operation 20% 60% 5% 15% Percentages and graph refer to the amount of effort (people) In IT projects = 90-95% of cost! Module 1 - Introduction

  9. Project Planning Write a Plan Containing 1. Steps required to accomplish the project objectives 2. Tasks needed to be done at each step (using Work Breakdown Structures) 3. Estimate of how much effort each task requires 4. The resources required for each task 5. (Given 3. and 4.) Calculation of how long each task/step will take 6. (Given 4. and 5.) Calculation of task, step and project costs 7. The inter-dependencies of tasks 8. The schedule for each task and the whole project (Milstones, Deliverables,payments) Module 1 - Introduction

  10. Project Planning: set expectations of Stakeholders Contractors Users Project Sponsor Stakeholders Project Leader Project Manager Finance Procure- ment Systems Engineering Support Sales Maintenance IM/ IT Module 1 - Introduction

  11. Project Planning: Time and Cost Estimate • Iterative • Accuracy • Estimates become more accurate Initiation Planning Execution Closing Definition Analysis Design +25% +15 +10 0 -50 -25 -75% Preliminary Plan Proposal Plan Final Plan Revised Plan Module 1 - Introduction

  12. Project Management Module 2: Scope Management Module 1 - Introduction

  13. Project Scope Planning Scope Management • Ensuring that the project includes all the work required, only the work required. • Dividing the work into major pieces, then subdividing into smaller, more manageable pieces. Module 1 - Introduction

  14. Work Breakdown Structure - Formats 1. Organization Chart Method 0. Title 1. Major Phase 1 2. Major Phase 2 3. Major Phase 3 1.1 Section 1 of Phase 1 1.2 Section 2 of Phase 1 1.3 Section 3 of Phase 1 Module 1 - Introduction

  15. Work Breakdown Structure - Formats 2. Outline Method 0. TITLE 1. MAJOR PHASE 1 1.1 S1 OF PHASE1 1.2 S2 OF PHASE1 1.3 S3 OF PHASE1 2. MAJOR PHASE 2 ... etc. Module 1 - Introduction

  16. WBS - Typical Tasks Detailed WBS Example for procuring an Equipment System Module 1 - Introduction

  17. Work Breakdown Structure Summary (Top Level) WBS Summary and Detail tasks, or Parent and Child tasks (Work Package) Module 1 - Introduction

  18. Work Breakdown Structure Using the Work Breakdown Structure 1. Estimate and schedule the work (Durations, precedences on WBS) 2. Organize and schedule resources (resource allocated WBS) 3. Assign responsibilities – (Resource ramp-up, resource allocated WBS) 4. Estimate and allocate costs and budgets (costed WBS) 5. Add up costs to different levels • Task • Levels on the WBS (phase, account/contract) • Cost account • Total project 6. Get resource commitments 7. Schedule start <--> end dates 8. Track expenditures, schedules and performance Module 1 - Introduction

  19. Project Management Module 3: Project Time Planning Module 1 - Introduction

  20. Project Time Planning Estimating Effort: 3 Methods 1. Professional Judgment • “Expert” picks a number (out of the air!) • Requires an expert • Requires experience • Good memory • May ignore people • VERY RELIABLE FOR THEMSELVES Module 1 - Introduction

  21. Project Time Planning Estimating Efforts (cont’d) 2. History • Look at tables of past actuals on major tasks • Interpolate • Requires professional judgment • Requires good history (which changes!) 3. Formula 3.1 Variables • Determine major variable factors (task, person) • Using measurement determine formula of factors • Interview and plug into formula Module 1 - Introduction

  22. Project Time Planning Estimating Efforts (cont’d) 3.2 Function Points • Determine smallest pieces (function points) of project. • Using measurement establish time for each one. • For new project, break into function points; add up times, then multiply for worker productivity. (Possibly: Junior x 2, Average x 1, Senior x 0.5) • FORMULA IS BEST (IN THEORY). • IN REALITY,____________ BEST. Module 1 - Introduction

  23. Estimating – use of History Ratios for Systems project SYSTEMS ACTIVITIES DUR EFFORT SYSTEM SPECIFICATIONS 11-15% 6-10% SYSTEM DESIGN 8-12% 6-10% SOFTWARE REQUREMENTS 2-4% 3-5% SOFTWARE PRELIMINARY DESIGN 5-7% 4-6% SOFTWARE DETAILED DESIGN 8-11% 9-12% CODE AND UNIT TEST 20-28% 24-32% SOFTWARE INTEGRATION & TEST 10-14% 11-15% SOFTWARE QUALIFICATION 5-7% 2-4% SYTEM INTEGRATION & QUAL. 8-12% 8-12% WARRANTY AND SUPPORT N/A 7-10% MAKE YOUR OWN BASED ON THE MAJOR PHASES/PIECES! Module 1 - Introduction

  24. Scheduling If Estimate was Effort, must convert it to DurationDuration = Effort/Resources (sometimes)Taking into account:Resource availabilityDesireSkillProductivity Module 1 - Introduction

  25. Scheduling: Requires Duration and Precedents Two Graphical tools for Scheduling: 1. PERT Chart Plan (from WBS) Task Precedent Duration A - 7d B A 3d C - 10d D C 5d E - 4d F E 6d G F 3d Module 1 - Introduction

  26. Scheduling Ordering the Activities: PERT Chart Arrow Diagramming Method (ADM) Module 1 - Introduction

  27. Scheduling - Gantt Chart Order of building the Gantt Chart: • Work Breakdown • Estimates (duration) • Dependencies • Resource use Gantt shows: • Critical Path • Non Critical Path(s) • Early Start/Finish • Late Start/Finish • Slack Module 1 - Introduction

  28. Scheduling - Gantt Chart Module 1 - Introduction

  29. Scheduling - Gantt Chart Gantt (Schedule) Drives 1. Milestones • Clear, concrete, binary events implying progress • For example: Review (with approval), Sign off of a deliverable, Funds approved • Shown as 0 length task • Try for even frequency • Not too close • Not more than 2 - 3 months apart • Major Point to communicate with • Client • Outside world • Management Module 1 - Introduction

  30. Scheduling - Gantt Chart Gantt (Schedule) Drives • Training • Meetings • Reviews • Reports • Site preparation • Delivery dates (date to order) for external items • Payment Module 1 - Introduction

  31. Project Management Module 4: Resource Assignment and Cost Planning Module 1 - Introduction

  32. Assigning Resources • Availability • Skills • More experienced people • Less experienced people • Desire • Similar tasks to one person to use learning curve • Assign critical tasks to most reliable people • Tasks that need interaction or are similar • Same person • Two who communicate • Personality and team communication does matter • and again, Availability Module 1 - Introduction

  33. Resource Loading and Optimizing Gantt with Resource Histogram Module 1 - Introduction

  34. Resource leveling - possible rescheduling Gantt with Resource Histogram Manual resource leveling: fast vs good vs cheap Automatic resource leveling: use only as ‘suggestion’ Module 1 - Introduction

  35. Cost Estimating • Similar to Time Estimating (usually done by the same person/group that does the Time Estimates) Calculation of Cost for each WP: Example: If estimate was duration 10 days Assign human resources 2 people Need Effort = Duration x Resources E=2x10=20pd e.g., Resource Cost (RC) = Effort x Rate(includes overhead) RC=20x$1,000=$20,000 (Possible) Plus Fixed Cost (FC) e.g., FC = $5,000 Total cost (TC) = Resource cost + Fixed Cost TC=20,000 + 5,000 = 25,000 Module 1 - Introduction

  36. Costed WBS Use Software to roll costs up the WBS Module 1 - Introduction

  37. Cost Ramp-Up Use Software to report cash flow Module 1 - Introduction

  38. Cost - Sanity checks +75% 25 10 0 -8 -10 -25% Cost Estimate Error Range – same as Time Estimate Definitive PDR Design Budget EPA Final Plan Indicative PPA Init Plan PPA - Preliminary Project Approval EPA - Effective PDR - Preliminary Design Review Module 1 - Introduction

  39. Project Management Module 5: Risk Management Module 1 - Introduction

  40. Risk Management Planning and Control Processes • Risk: anything not in the project plan that may occur and cause your project to be late, cost more or compromise its quality/performance. • Risk is an opportunity as well as a threat: “You don’t put power brakes on a car to slow it down - you do so to allow it to go faster.” -Mark Davies, KPMG • We will concentrate on the threat. Module 1 - Introduction

  41. Four Steps of Risk Management 1. Identification • Anticipate the risk • List the risks, event triggers, symptoms 2. Analysis • Evaluate probability, impact • Qualitative vs Quantitative 3. Risk Response • Strategy Development to mitigate the risk: • Eliminate the risk or reduce impact • Contingency planning 4. Risk Control • Monitor • Update lists, strategies • Action the contingency plan • Fight the fires Which is most important?? Module 1 - Introduction

  42. Step 1: Risk Identification Anticipate the Risk Risk Checklist at Preliminary Planning Time (Risk Taxonomy) • Are we proposing the right solution? • Any risk in technical components? • Performance expectations reasonable? • Is the hardware standard? • How much experience do we have with it? • Is the operating software standard? Well documented? • How much experience do we have with it? • Is the development method standard? Well documented? • How much experience do we have with it? • Any component availability risks? Module 1 - Introduction

  43. Step 1: Risk Identification Risk Checklist at Preliminary Planning Time (Risk Taxonomy) (cont’d) • Does failure of this application affect the customer’s business? • Is the project over 6 months? 12 months? 24 months? • Does it need over 5 people? • Are we dependent on third party resources? Internal? External? • Who is the project manager? • Who is the project leader/architect? • Are the resources available when needed? • Who is the client? • Have we worked with this client? How is our relationship? • Is client available when needed? Module 1 - Introduction

  44. Step 1: Risk Identification: Inputs NATURAL SENIOR • Risk Checklists, The WBS, Environment: ENVIRONMENTS MANAGEMENT CORPORATE POLICY AND CULTURE POLITICAL PROJECT/ PM REGULATORY AND LEGAL CORPORATE PROGRAMS & FINANCIAL HUMAN FACTORS TECHNOLOGY HEALTH & SAFETY ECONOMIC History of past Similar Projects Module 1 - Introduction

  45. Step 2: Risk Analysis Evaluate Probability and Impact into three levels: Low, Medium, High: Probability Criteria: Probability Rank Description High Greater than 66% probability of occurring Medium 34 to 65% probability of occurring Low Less than 33% probability of occurring Module 1 - Introduction

  46. Step 2: Risk Analysis Impact Rank Description Schedule High Could add over 25% delay to the completion of the project Medium Could add over 10% delay to the completion of the project Low Could add less than 10% delay to the completion of the project, or delays a non critical deliverable Cost High Could add more than 25% to the project budget Medium Could add between 10 and 25% to the project budget Low Could add less than 10% to the project budget Quality Impact Criteria: Determine a combined impact level based on which constraint is most affected. Module 1 - Introduction

  47. Step 2: Risk Analysis Prob. Low Medium High Impact 2. Time estimate and funds inadequate for the scope of this project; may be late and over budget. 1. Lack of commitment. Headquarters may have to assume more responsibility; will result in project delay, cost overruns. 3. Lack of skilled staff, organization slow to hire adequate staff; may delay implementation. High 4. Not enough time spent planning, lack of understanding of problem; may take longer/ cost more than anticipated. 6. Cannot get office space for staff; may cause communication problems, delaying the execution phase. 5. Expecting major scope changes from clients; may cause delay and cost escalation. Medium Low Draw a Risk Table to Summarize Wonderful Management Tool/Report Module 1 - Introduction

  48. Step 3: Risk Response Strategy Development: Reduce the Probability and/or Impact of the Risk Risk Mitigation: Reducing the probability and/or impact • Take immediate action. Can be risk avoidance (if eliminated) or risk reduction (still there, but probability or impact is reduced). Contingency Plans • Take action only when the risk is imminent or has occurred Or Acceptance (do nothing), depends on Risk Tolerance Module 1 - Introduction

  49. Risk as a Monetary Value Tempering the Estimate • Estimate range is • ESTIMATE ESTIMATE + RISK • Try to work within the range, depending on how crucial the accuracy has to be. • If you can get several estimates • Use the Standard Deviations to give you confidence levels: • Expected estimate +/- 1 SD gives you 68% confidence • Expected estimate +/- 2 SD gives you 95% confidence • Expected estimate +/- 3 SD gives you 99% confidence Module 1 - Introduction

  50. Project Management Module 6: Scope/ Time/ Cost Control Module 1 - Introduction

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