1 / 96

Project Management Basic Concepts

Project Management Basic Concepts. What is a Project?. A Project is a series of activities and tasks that: Have a specific tasks and activities to be completed with certain objectives. Have a defined start and end dates Have funding limits (if applicable) Consume Resources.

nellis
Download Presentation

Project Management Basic Concepts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Project ManagementBasic Concepts

  2. What is a Project? • A Project is a series of activities and tasks that: • Have a specific tasks and activities to be completed with certain objectives. • Have a defined start and end dates • Have funding limits (if applicable) • Consume Resources

  3. Typical Project Structure Project Definition Project Monitoring Project Planning Project Implementation Project Evaluation Project Adjustment

  4. Project Life Cycle Resources and Effort Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Conceptual Design Advanced Development Detailed Design Project Implementation Project Termination • Goals • Scope • Baseline • Requirements • Feasibility • Desirability • Plan • Budget • Schedule • Management • Commitment • Define • Responsibility • Team • Organization • Structure • Detailed Plan • Kickoff • Manage • Measure • Control • Update and • Modify Plan • Problem Solve • Closeout • Document • Suggest • Improvements • Reassign • Dissolve Project • Team

  5. Successful Projects • A successful project is one which achieves the following objectives: • Completed On Time • Completed Within Cost • Meets Performance Criteria • Minimum Disruption of the Main Work of the Organization • Effective Utilization of Resources

  6. The Triple Play ofProject Management Constraints Time Cost Performance

  7. Triple Constraint Trade-offs $ Budget Better Performance Specifications Worse Schedule Early Late TIME

  8. Major causes of failure • Selection of a unsound project • Selecting the wrong person as a project manager • Lack of support from upper management • Misused management techniques • Project termination not planned

  9. Project Definition Build Canoe Rental Building on Coeur d A’lene Lake

  10. Form Project Team • Select Project Leader • Identify Key People • Gain Management Commitment • Define Project Team Operating Rules

  11. Project Manager

  12. Project Manager Skills • Scheduling and time mgt. skills • Technical skills ( scope of project ) • Leadership skills ( goals, performance measures) • Resource mgt., human relationship skills. • Communication skills • Negotiation skills • Marketing, Contracting, customer relationship skills • Budgeting and cost skills.

  13. Major Interactions of project stakeholders Government agencies Top Management Consultants Client Financial Managers Project Manager Subcontractors Project Team Other Organization

  14. Project Manager Responsibilities • Responsibility to the parent Org. • Responsibility to the project and client • Responsibility to the member of the project team

  15. Selecting Project ManagerList of some of the most popular attributes: • A strong technical background • A hard-nosed manager • A matured individual • Someone who is currently avaiable • Someone on good terms with senior executive • A person who can keep the project team happy • One who has worked in several departments • A person who can walk on ( or part ) the waters.

  16. Selecting the PM • Credibility • Technical credibility ( technical knowledge ) • Administrative credibility ( managing resources( money, people, material) keeping the project on scheule. • Sensitivity • It is related to the ability of the manager to discover the problems at early stages and solve the team’s problems if we have some conflects • Leadership and management style • Leadership is defined as the ability of affecting others in away that gurantees the project profitability to the org. and sociey. • Ability to work under stress

  17. Project Planning • There are several reasons why we must use considerable care when planning projects • The primary purpose of planning is to establish a set of directions in sufficient detail to tell the project team exactly : • What must be done? • When it must be done? • What resources to use ?

  18. Project plan Elements: • Overview : • A short summary of the objectives and scope of the project • Directed to top mgt. and contains a statement of goals of the project • A description of the managerial structure that will be used for the project. • A list of major milestones in the project schdule.

  19. Project plan Elements: • Objectives: • More detailed statement of general goals noted on the overview section. • The statement should include profit and competitive aims as well as technical goals. • General approach: • Describes both the managerial ( style of mgt. ) and the technical approaches ( required equipments, technology ) to the work.

  20. Project plan Elements: • Contractual aspects: ( list for ) • All reporting requirements • Customer-supplied resources. • Advisory commitees • Project review • Cancellation procedures. • Specific management agreements • subcontracts

  21. Project plan Elements: • Schedules: • Various schedules. • Lists all milestones events. • All tasks, and their durations….. • Resources: • The budget • Both capital and expense requirements are detailed by task. ( Project budget ) • Cost monitoring and control procedures.

  22. Project plan Elements: • Personnel : • Expected personnel requirements • Special skills needed • Types of training needed • Possible recruiting problems. • Legal and political restrictions.

  23. Project plan Elements: • Evaluation Methods: • Every project should be evaluated against standards and by methods established at the project inception. • This section include : • A brief description of the procedure to be followed in monitoring , collecting, storing, and evaluating the history of the project.

  24. Project plan Elements: • Potential problems: • External and internal potential problems.

  25. Work-Breakdown- Structure (WBS) • It is a result family tree , subdivision of the major tasks( hw, services , etc ) and the data required to produce the final product , it acts as a vehicle for breaking down the work into smaller elements.

  26. Work-Breakdown- Structure (WBS) • We have 2 types of WBS: • Managerial level • Technical level

  27. Earned Value Analysis • It is a continuous comparison between the plan of the project data and the actual data. Budgeted and Committed Cost: Variance = Budgeted cost – committed cost Variance (+ve ) = Unconsumed Cost Variance ( -ve ) = Over spend activities

  28. Cost and Schedule Variances

  29. Cost and Schedule Variances

  30. BCWSBudgeted Cost of Work Schedule NOW BCWS = X1 + X2 + X3 + X4 + X5 $ This is the sum of all the costs up to the specific activity that is stated in budget plan.

  31. BCWPBudgeted Cost of Work Performed BCWP = X1 + X2 + X3 + 0.8 X4 + 0.5 X5 $ This is the sum of all the costs up to the specific activity in relation with its completion percentage.

  32. ACWPActual Cost of Work Performed ACWP = Actual cost of work done. This is the total costs of the work done on reality provided by project manager on the financial monitor.

  33. If BCWP > BCWS ( over spend ) • If BCWP < BCWS ( time is late -ve ) • If BCWP > BCWS ( +ve time is more than sufficient )

  34. Forecasting • It is the process of prediction of the future events. • Benefits of forecasting: • To estimate the cost of remaining parts of a project ( forecasted value ). • To identify the source and places of certain problems in the budget plan. • It is a tool for corrective actions.

  35. ForecastingMathematical Expressions • The Cost Performance Index ( CPI ): CPI = BCWP / ACWP • It gives a good indication whether the project is performing financially well or not. • CPI > 1 : Good performance. • CPI < 1 : Bad performance ( shortages • Overspend ).

  36. ForecastingMathematical Expressions • The Schedule Performance Index ( SPI ): SPI = BCWP / BCWS • It is a good indicator for the project timing. • SPI > 1 : Good performance. • SPI < 1 : Bad performance (Poor ).

  37. ForecastingMathematical Expressions • Budgeting Cost to Completion ( BCC ): • The Amount of money needed to completion. • BCC = BAC – BCWP • It is defined as the amount of money required to complete a project where it is partially completed ( remaining money ).

  38. ForecastingMathematical Expressions • Estimated Cost to Completion ( ECC ): • Its more realistic value than budgeted. • ECC = BCC / CPI • It depends on CPI which is a by product of the actual cost of work performed. • Forecasted Cost to Completion ( FCC ): • FCC = ACWP + ECC

  39. Example • The R&D department of a company has been developing a new product line, the project manager is concerned whether the following provided data is exhibiting a good project performance, calculate the following and comment on the project status to convince the project manager. • CPI,BCC, ECC, SPI, FCC.

  40. Solution • BCWS = 20000 + 20000 + 37000 + 27000 + 12000 + 28000 = 144000 $ • ACWP = 23500+20500+23000+27000+4500+18500 = 117000 $ • BCWP = 20000 + 20000 + ( 37000 x 0.7 ) + 27000 + ( 12000 x 0.6 ) + ( 28000 x 0.75 ) = 119900 $ CPI = BCWP / ACWP = 119900 / 117000 = 1.02 good performance.

  41. BAC = Budget at Completion = 184000 • BCC = BAC – BCWP = 184000 – 119900 = 64100$ • ECC = BCC / CPI = 64100/1.02 = 62843.14 $ • SPI = BCWP / BCWS = 119900 / 144000 = 0.832 < 1 Poor performance according to time. • FCC = ACWP + ECC = 117000 + 62843.14 = 179843.14 $

  42. Comments • We do not have any financial problem i.e the budgeted cost (money resources) is larger than the forecasted values, we conclude that the money is available , it is more than sufficient as the indicators were positive, the only problem we have is the time.

  43. Comparing Projects

  44. Problem : Compare between the following projects according to the time and cost consumed: Project A Project B

  45. Scheduling • Scheduling : is the process of converting a project action plan into an operating time table. • Why scheduling ? To answer the following questions: • If each activity goes according to plan , then when will the project be completed? • Which tasks are most critical to ensure the timely completion of the project? • Which tasks can be delayed , if necessary , without delaying project completion and by how much? • More specifically , at what times should each activity begin and end? • At any given time during the project, how much money should have been spent? • Is it worthwhile to incur extra costs to accelerate some of the activities? If so, then which ones?

  46. Network Techniques • PERT • CPM • PERT/CPM is based on a diagram that represents the entire project as a network of arrows and nodes. • Two most popular approaches are : • AOA : activity on arrow ( PERT ) • AON : activity on node ( CPM )

More Related