ILU Project Management Training

1. ILU Project Management Training Project Management I Project Initiation & Planning

2. Agenda - Day One • Introductions • Project Management Overview • Break • Project Lifecycle • Lunch • Five PMI Project Management Processes • Break • Nine PMI Project Management Areas of Knowledge • Break • Organizational Influences • Wrap-up

3. Introductions • Name • Department • Number of years at ILICO • Number of projects you have managed • Average size of project you have managed • Course expectations • Ice breaker

4. Ground Rules • Level Playing Field (titles left at the door) • One conversation at a time • Respect opinions of others • No beating a dead horse • Come back from breaks ON TIME • Have FUN

5. Brain Teaser GET IT GET IT GET IT GET IT

6. Brain Teaser STROKES! Strokes Strokes

7. Brain Teaser heat heat heat heat

8. Course Objectives • Understand characteristics of a project • Understand characteristics of a project manager • Understand the PMI project lifecycle • Understand the 4 components of PMI project management • Understand the 9 bodies of knowledge of PMI project management • How does project management operate within an organizational structure • How to define a project • Use Work Breakdown Structures as PM tool

9. Project Management Overview

10. Project Management Track Record • 50% of all finished projects contain < 70% of original functionality - Center for Project Management • Of the 175,000 projects costing $250 billion each year, 52.7% will over run their cost estimates by 189% - Standish Group • 31% of all projects were cancelled before they ever got completed - Standish Group • Less than1% of all systems development efforts are completed under budget and meeting user requirements - T. Capers Jones

11. Ten Causes of Project Busts

12. Ten Causes of Project Busts • Poor problem definition • Lack of support • No one in charge • Project plan lacks structure • Project plan lacks detail • Project is under funded • Insufficient resources • Poor tracking • Poor communication • Project strays from goals • IS Managers Survey

13. Ten Causes of Project Busts • * Poor problem definition • * Lack of support • * No one in charge • * Project plan lacks structure • * Project plan lacks detail • * Project is under funded • * Insufficient resources • Poor tracking • * Poor communication • Project strays from goals • IS Managers Survey * project initiation and planning willhelp mitigate

14. Level 4 Maturity Level 0 Level 1 Embryonic Level 2 Commitment Level 3 Growth No Problem is recognized Project Scope, Timing, Cost, and Quality are not monitored A need for improved project mgmt is recognized Benefits of improved project mgmt are understood Investigation of improvement is explored Project planning is required Support for project mgmt is evident at various levels of the organization Resources are invested in education and assistance More authority is allocated to the project team The management team establishes project mgmt expectations Project processes are developed for project-to-project improvement Project mgmt tools are provided Project status on timing, cost, scope and quality is expected with empirical data A continuing education program is established for project mgmt Integrated cost and schedule control indicators are implemented The organization establishes a project manager career path A project mgmt administrative office is established A continuous improvement process for project mgmt is established Project Management Questionnaire ILICo

15. Why This Course? • ILICO is serious about adopting and implementing proven project management framework • Course will explain purpose and steps of the project management initiation and planning phases

16. Definition of a Project • As defined by the Project Management Institute, in the Project Management Body of Knowledge (PMBOK): • “Atemporaryendeavor undertaken to create auniqueproduct or service.” • A project has adefinite beginningwith adefinite end. The end is achieved when the project’s objectives of scope, timing, cost and quality have been reached or when these objectives cannot be reached and the project is terminated. • A unique product or service implies it has not been done before or it is different in somedistinguishingway from similar products or services.

17. Characteristics of a Project • Brings change to an existing organization • Is a unique effort - one which is not repeated over time • Resources are allocated for the duration of a project only • Typically involves a temporary organization (formal or informal) • Often causes conflicts with existing operational resources • Usually involves cross functional resources • Has a defined start and end point, not an ongoing effort • Estimates for timing and cost are mere estimates • Changes to the scope and objectives can occur during the project lifecycle

18. Definition of Project Management • As defined by the Project Management Institute, in the Project Management Body of Knowledge (PMBOK): • “Project management is the application of knowledge, skills tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.” • This involves balancing competing demands among: • Scope, time, cost and quality • Stakeholders with differing needs and expectations • Identified requirements(needs)and unidentified requirements(expectations) • ProgramManagement is a group of related projects managed in a coordinated way. Also synonymous withprojectmanagement in some organizations.

19. Characteristics of a Project Manager • Communication skills • Facilitation skills • Leadership skills • Organizational skills • Negotiating skills • Project Management Technical skills

20. Communication Skills • Excellent verbal skills • with peers, management customers… • Good writing skills • memos, status reports, meeting minutes... • Excellent meetings skills • agenda preparation, meeting facilitation, issues identification... • Good Listener

21. Facilitation Skills • Facilitates conflict resolution • team member to team member • team member to functional organization • project to organization • project to stakeholder

22. Leadership Skills • Ability to form a team and develop team cohesiveness • Understands how to motivate team and achieve results • Understands how to motivate individuals

23. Organizational Skills • Good personal time management • Delegates/evaluates issues • Ability to multi-task

24. Negotiating Skills • Contract services • Purchased goods for the project • Resources from participating functional organizations • Stakeholder requirements and expectations

25. Project Management Technical Skills • Understands: • the time management process and numbers • the cost management process and numbers • quality and how to meet the requirements • the scope management process and control • how to effectively manage different projects • alternatives to correct deteriorating trends

26. Group Exercise

27. Break Time!

28. Brain Teaser 1 3 5 7 9 WHELMING

29. Brain Teaser GOLDEN GATE H2O

30. Brain Teaser JUS 144 TICE

32. Project Life Cycle

33. Software Development Life Cycle System Design and Prototyping Acceptance Testing and Deployment Requirements Gathering Code and Unit Testing Power Plant Outage Project Life Cycle Feasibility and Strategic Plan Approval Engineering Design and Contract Terms Materials and Construction Testing and Start-up Facilities Project Life Cycle Request and Initial Forecast Layout, Estimating, and Funding Facility Design, BOM, and Construction Debug and Punchlist Examples of Project Life Cycles

34. Indianapolis Life’s Project Life Cycle • Concept (Initiation, Charter, …) • Define (Planning, Scheduling, Design, …) • Develop (Creation, Testing, …) • Deliver (Implementation, PI Review, …)

35. Project Life Cycle Due to the complexity and uncertainty of projects, organizations usually divide the project into phases. These phases collectively become the project life cycle. • Characteristics of a Project Life Cycle: • Cost and resources are at lower levels during the beginning, peak towards the middle and end, and drop-off rapidly near the end. • Probability of completing the project successfully is lowest at the start, hence risk and uncertainty is greatest at the beginning. • The ability of stakeholders to influence the cost and outcome of the project is greatest at the beginning.

36. Project Life Cycle Phases Due to the complexity and uncertainty of projects, organizations usually divide the project into phases. These phases collectively become the project life cycle. • Characteristics of a Project Phase: • Completion of one or more deliverables. • Phases are generally sequential, but may overlap. • The end of each phase normally involves a review of the deliverables. • These reviews require a decision to either move forward to the next phase, perform further work in the current phase or terminate the project altogether.

37. TIME Project Life Cycle Concept Define Develop Deliver Scope Time Cost Quality Risk Communications Human Resources Contract / Procurement Scope Time Cost Quality Risk Communications Human Resources Contract / Procurement Scope Time Cost Quality Risk Communications Human Resources Contract / Procurement Scope Time Cost Quality Risk Communications Human Resources Contract / Procurement

38. Project Life Cycle Phases Concept Define Develop Deliver TIME • Gather Data • Identify Project Needs • Establish Goals, objectives, basic economics, feasibility, stakeholders,risk level, strategy, potential team • Estimate Resources • Present Proposal • Obtain approval for next phase • Appoint Key Team members • Conduct Studies • Develop Scope Baseline, products, quality standards, resources, work tasks • Establish Master Plan, Budget, Cash Flow, WBS, Policies and procedures • Assess Risks • Confirm Justification • Present Project Brief • Obtain approval to proceed • Set up organization & communications • Motivate Team • Detail Requirements • Establish Work Packages and Information Control Systems • Procure goods and services • Execute Work Packages • Direct/Monitor/Fore-cast/Control: Scope, Quality, Time, Cost • Resolve Problems • Finalize product or services • Review and accept • Settle final accounts • Transfer product or service responsibility • Evaluate Project • Document Lessons Learned • Release/Redirect Resources • Reassign Project Team

39. Project Life Cycle - Concept Phase • Gather Data • Identify project needs • Establish goals, objectives, feasibility, stakeholders, risk level, strategy, potential team • Estimate resources • Present proposal • Obtain approval for next phase

40. Project Life Cycle - Define Phase • Appoint key team members • Conduct studies • Define • scope baseline - resources • products - work tasks • quality standards • Establish • master plan - WBS • budget - policies & procedures

41. Project Life Cycle - Develop Phase • Set up organization and communications • Motivate team • Detail requirements • Establish work packages and information control systems • Procure goods and services • Execute work packages • Direct, monitor, forecast, control: • scope - time • quality - cost • Resolve Problems

42. Project Lifecycle - Deliver Phase • Finalize product or services • Review and accept • Settle final accounts • Transfer product or service responsibility • Evaluate project • Document lessons learned • Release/redirect resources • Reassign project team

43. Project Life Cycle Phases Influence on Cost High Beginning Phases IntermediatePhases Final Phases CostExpenditure Ability to Influence Cost Cost Influence Low TIME

44. Project Life Cycle Phases Resources per Phase Termination Concept Development Implementation RESOURCES TIME The greatest amount of resource usage normally occurs during the implementation phase of the project.

45. Break Time!

46. Five PMI Project Management Processes

47. Project or phase is approved in order to proceed Initiating Processes Planning Processes As the execution is controlled, it may require additional planning Plan developed for execution Plan is executed and Controlled Controlling Processes Executing Processes Feedback in both directions Plan and execution has been controlled Plan is successfully executed Closing Processes 5 PMI PM Processes

48. 5 PMI PM Processes - Initiating Initiate • Initiating Processes • Initiation is the process of formally recognizing that a new project exists or that an existing project should continue into its next phase. Tools & Techniques Inputs Outputs • Product Description • Strategic Plan • Project selection Criteria • Historical Information • Project Selection methods • Expert judgment • Project Charter • Project manager identified/ assigned • Constraints • Assumptions

49. 5 PMI PM Processes - Initiating Definition • The process of formally recognizing that a new project exists or that a project should proceed to the next phase • Projects are normally identified as the result of: • Market demand • Business needs • Customer request • Technology advance • Legal requirements

50. 5 PMI PM Processes - Initiating Project Scope Management “A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully.” The project scope is measured against the plan and the product scope is measured against the requirements upon completion. These two scope management areas need to be integrated to ensure successful completion of the project. Product scope is the features and functions included in a product or service. Project scope is the work required to deliver the product with it’s features and functions.