Project management in SE

1. Project management in SE • Project planning • How to design an activity plan? • Peeter Normak

2. The plan for 18.09 • Discussion: home assignment No 1 • Initial study (includes expanded needs analysis) • Time-table for composition of a project plan • Structure of a project plan • Identification of milestones and activities • Time-table of a project • Risk and quality management • Budget • Drafting of a project plan

3. Home assignment No 1 • Formulate an objective of a project that can be planned and completed by a group of 3-4 students during 9-10 weeks. • Assess your personal competences according to the elements 6.1 … 11.5 of PMCD Framework. Find (out of 25): • Your five greatest strengths • Your five greatest weaknesses.

4. Communicating (6.0)‏ 6.1 Actively listens, understands and responds to stakeholders 6.2. Maintains lines of communication 6.3 Ensures quality of information 6.4 Tailors communication to audience Leading(7.0)‏ 7.1 Creates a team environment that promotes high performance 7.2 Builds and maintains effective relationships 7.3 Motivates and mentors project team members 7.4 Takes accountability for delivering the project 7.5 Uses influencing skills when required Managing (8.0)‏ 8.1 Builds and maintains the project team 8.2 Plans and manages for project success in organized manner 8.3 Resolves conflict involving project team or stakeholders Cognitive Ability (9.0)‏ 9.1 Takes a holistic view of project 9.2 Effectively resolves issues and solves problems 9.3 Uses appropriate project management tools and techniques 9.4 Seeks opportunities to improve project outcome Effectiveness (10.0)‏ 10.1 Resolves project problems 10.2 Maintains project stakeholder involvement, motivation and support 10.3 Changes at the required pace to meet project needs 10.4 Uses assertiveness when necessary Professionalism (11.0)‏ 11.1 Demonstrates commitment to the project 11.2 Operates with integrity 11.3 Handles personal and team adversity in a suitable manner 11.4 Manages a diverse workforce 11.5 Resolves individual and organizational issues with objectivity PMCD Framework – Personal competencies

5. The aim of the project planning phase • Timely submitting of a high-quality project plan.

6. The main tasks for project planning phase • Find an appropriate method for reaching the project’s objective in given conditions (how to achieve the objective?). • Compose/draft a project plan (how to describe the roadmap for reaching the objective?). • Achieve acceptance of the project plan by the most important stakeholders (how to guarantee support to the project?).

7. Discussion • Project planning starts normally with a certain analysis (called “initial study”). • What would be its purpose?

8. Initial study (including detailed analysis of needs) • The purpose of initial study: identification of and study of the most important aspects that can influence the project (for example, the stakeholders’ needs, development of technology, restrictions arising from legislation, competitors’ plans, weather, …), as well identification of their potential impacts. • Example of aspects of project environment (PESTLE, or “PEST analysis”): • Political • Economic • Social • Technological • Legal • Environmental

9. Methods used for conducting Initial Study • SWOT-analysis • Market research • Delphi method (interviewing experts) • A public opinion poll • Analysis of documents • Analysis of similar projects • Meta analysis (studying already existing relevant analyses) • ...

10. Example: Needs Chain Model (Shafloot, 2010)

11. Discussion • What are the main aspects that determine how deep/thoroughly the initial study should be conducted?

12. Aspects that influence initial study • The scope and deepness of initial study depend on the clarity of aspects that may influence the project. Examples: • Clarity of objective/requirements/needs. • Number of possible approaches/methods for achieving the objective. • Complexity of the project/needs for competence. • Change of fundamental principles in the subject area of the project. • Development of technologies/methods necessary for running the project. • Risks related to the project. • Amount of experience the project team has in running similar projects.

13. Recommendation (initial study) • In the cases of large projects that have high risks and need a thorough initial study and planning, it is suggested to conduct it – planning or just the initial study – as a separate project. • Examples: • establishing of a curriculum centre, • construction of university buildings.

14. Time-table for composition of a project plan – an example Manager (M) to the team Team to the M M to the team Team to the M • TO – agreement on deadlines T1...T4 and on other aspects (E: citations to be specified at T3)‏ Tom John ? John John John Robert Robert ? Laura Mary, Laura Mary Laura Mary ? Laura Laura All Mohammad John ? Manager All John, Laura T2 T3 T4 Deadline T0 T1

15. Time-table for composition of a project plan II • Possible modifications: • Two (or even three) cycles • Calling additional meetings • Implementing fundamental changes • Co-creation of the text (E: Google docs)‏ • Examples of problems/failures: • Failure of a project in 2002 (compilation of the text) • Letter of Intent: withdrawal of Gothenburg • ERASMUS curricula development (industrial PhD): failure to submit

16. Recommendations (time-table of a project plan) • Reserve extra time for possible problematic activities. • Take into account the possibilities that agreements are neglected. • Take into account the possibilities that the work is carried out in the last minute. • There should be one person responsible for the composition (and finalizing) of the project plan.

17. General scheme for composition of a project plan • Mainly “from the objective to the begin” (objective-driven): • Objective •  • Sub-goals/Activities •  • Time-table •  • Budget

18. Structure of a project plan • Sections that are almost always present: ● Basic data of the project (title of the project, objective, participating institutions/persons, …) ● Background/introduction (need, previous experience, …) ● Activities ● Time-table ● Project management ● Plans for dissemination/exploitation of the results ● Economic and/or social impact of the project’s outcomes ● Budget ● Summary NB! Formal requirements – if there are any – should be satisfied not only formally. Example: an EU 5 FP application: 6 FR + 1 BE.

19. Project plan - additional aspects • Additional aspects depend on the type and scope of the project. Examples: ● previous co-operation between the partners ● co-operation with the industry and other institutions ● international co-operation ● description of methodology and tools ● plans for further development of the project outcome ● compliance to the standards, norms of ethics ● project logframe matrix ● glossary of terms used in the text Take into account aspects related to external experts: possible auditing, project plan evaluation criteria (including thresholds and weights), project outcome acceptance criteria.

20. Example: structure of a project plan I (development of a course module for distance teaching/learning)‏ • BACKGROUND, RATIONALE AND OBJECTIVES • Describe the educational and socio-economic rationale for the proposed course module. • Describe the educational level and the priority area. • Identify clearly the target groups (learners), their educational needs and their requirements for support. • Outline the short-, medium- and long-term market for the proposed course module. • Describe the expected impact and benefits of the proposed course. • Identify the reasons for applying a multi-country app­roach to the development (and dissemination) of the course. • Describe how the course ties in with existing educational structures in the partner countries. • Define clear and measurable objectives and expected outputs of the project. • METHOD • Describe the course module design and structure, development methodology, curriculum structure and content, duration, tutoring approach, learner assessment methods and, where relevant, the applied accreditation system. • Describe the different study material components which will be included in the course package (printed and electronic course material, teacher and learner guides, tuition and learner assessment systems etc.). • Describe media and technologies to be used for the development of the course material. • Describe media and technologies to be used for the delivery of the courses. • Describe anticipated learner support methods and roles of teachers and tutors. • Describe the role of Phare distance education study centres in the development and delivery of the course. • Describe methods for measuring the efficiency and effectiveness of the course and the applied methods, including learner and teacher/tutor satisfaction. • Describe needs for and approaches to training of course developers, teachers/tutors and study centre staff who will be involved with the proposed course.

21. Example: structure of a project plan II (development of a course module for distance teaching/learning)‏ • WORK CONTENT AND SCHEDULE • Phases: Define clearly the different phases of the project and outline the tasks and activities to be undertaken as well as the outputs within the various phases. • Task Sheet: Fill-in Form C1 for each of the defined tasks and activities. • Project Flowchart: Set up a global Project Flowchart with clear identification of tasks and activities, outputs and milestones, the period and location in which the activities will take place. A sample flowchart is provided in Form C2. However, you are, of course, free to design your own flowchart according to the specific nature and structure of your project). • PROJECT MANAGEMENT • Set up an organisation chart, clearly identifying the chosen management structure (such as steering commit­tee, project manager, task managers etc.) as well as roles and responsibilities of the participating partner organisations. • Describe the management capability of the contracting Coordinator and Lead Partner. • Describe management techniques and quality assurance procedures. • Describe the communication structures and techniques that you will set up in order to ensure efficient communication among the partners during the lifetime of the project.

22. Example: structure of a project plan III (development of a course module for distance teaching/learning)‏ • THE CONSORTIUM • Describe shortly the profile of the Consortium, its partners and the key staff members to be involved in the project. Describe their relevant experience in the production of distance education course material and co-operation at an international level. Include CVs of key staff members. Full partner profiles should be given in Section E of the application forms. • Describe the mechanisms for involving the users in the project. • INFORMATION AND DISSEMINATION PLANS • Describe your plans for informing potential users, authorities and organisations about the project and its results. • Describe your marketing plans: How will you announce the course module and how will you inform and provide counselling to potential learners. • EXPLOITATION PLANS • Describe the consortium’s plans for further exploitation and development of the course after the end of the project, i.e. once the course module has been developed and tested, the pilot implementation has been completed and the evaluation data are available. • ECONOMIC AND SOCIAL IMPACT • Estimate the potential economic and social impact of the proposed course module in particular and the impact of the project on the further development of distance education in the participating organisations and countries in general. • Describe the project’s relevance to European integration.

23. Identification of milestones and activities – basic methods • The aim: find the best possible structure of sub-goals and activities (algorithm for solving project exercise) that leads to achievement of the project objective. • The structure of sub-goals determines the structure of activities and responsibilities; it also is a tool for getting feedback about the project’s advancement. • Basic methods (NB! May be combined): • Top-down‏ • Application of analogy • Using guidelines • Bottom-up‏

24. Identification of milestones and activities – problems • Examples: • Activities are too finely structured (sub-goals are too narrow) • Activities are not well structured (too many milestones/sub-goals) • Responsibilities do not correspond to sub-goals • Motivation system does not comply with the project structure and does not support achievement of project objective (E: air squadron)‏ • Sub-goals are not measurable (E: “update”, “modernize”, ...)‏ • Outsourcing dilemma: Do what you can do best – outsource the rest. • Quality dilemma in identification of sub-goals and assessing performance: find a balance between quality and project needs.

25. Discussion • What can be the most positive and negative aspects (risks) of outsourcing?

26. Aspects of outsourcing • Positive aspects: • Inclusion of additional competency (and therefore to develop your own staff). • Possibility to focus on core activities. • The scope of acquired resources is broader and more dynamic. • Efficiency and flexibility of using human and other resources. Negative aspects (disadvantages/risks): • Possibilities to influence the processes are restricted (loss of managerial control). • Supplier is less aware of the actual needs, problems and quality requirements of the customer (contracting organization). • Leakage of confidential information. • Dependence on the well-being (bankruptcy) of the outsourcing company. • Possible additional costs that accrue from hidden activities not included in the contract.

27. Recommendations (composition of a project plan) • Accept invitations to participate as an expert in tenders (evaluating project plans). • Study – if available – successful project plans and their reviews. • Take into account the evaluation criteria (thresholds and weights).

28. Exercises – the structure of a project plan • In which cases it is reasonable to base a project plan mainly on milestones, in which cases on activities? • In which cases usage of the bottom-up strategy of project planning is more suitable? • What criteria would you consider in finding an outsourcing institution?

29. Exercises – independently • Based on web search find some problems that can occur by outsourcing IT services. • Choose an institution that finances projects and try to find out: • indicators that are used for assessing the quality of project plans; • assessment criteria.

30. Time-table – the purpose • Timetable is usually a representation of project’s activities and sub-goals/milestones and their relations on a timeline. • The time-table: • Gives a holistic overview of the project structure (including interdependencies between different activities) • Is a tool for planning and managing resources • Allows to feel bottle-necks and correct activities if needed • Is a tool for identification the risks. • Basic types of graphical presentation of a time-table: • Bar chart (Gantt chart) • Graphs (Critical path method – CPM chart; Program evaluation and review technique – PERT chart).

31. Timetable – the methods • Examples: • Expert estimations • Analysis of preceding (similar) projects • Simulation • “What happens if …” (cause-and-effect) analysis. • Critical paths should have incoming puffers; their duration depend primarily on the risks. • Some simple algorithms for determining the duration of a project: • 25% • (x+4y+z)/6.

32. Time-table – factors • Composing a time-table the following factors should be taken into account: • People tend to complete the tasks by the deadline even if it is too distant, • People tend to estimate the number of working hours too optimistically, • Activities should be possibly concentrated (not minced), • Time overrun will cumulate, sparing time for a single activity will not shorten the duration of the whole project, • A task that has been never performed before can be very time consuming (experience is a significant accelerating factor), • focus on the critical paths. NB! Attention should be concentrated on avoiding time overspending (not so much on time sparing).

33. Recommendations (time-table) • In composing a time-table, other activities and duties of the project team members should be taken into account as well (parental leave, deadlines of other projects etc). • Overrunning a time in one activity usually causes time overrun of the whole project; sparing/economize time of subsequent activities is normally unrealistic.

34. Project administration • The goal: describe the subjects of a project and their work organization. • The aspects to be covered: • The structure and tasks of the project team and of stakeholders (supervisory/steering group, advisers, testers etc). Example: responsibility assignment matrix (RACI matrix: R – Responsible, A – Accountable, C – Consulted, I –Informed); the role of SG. • Organization of work and reporting • Risk and quality management, handling of discrepancies/conflicts. • Importance depends exponentially from the size/complexity of the project (even sometimes not required for small scale projects). • Example: 1) EU 5.FP→ 6.FP → 7.FP; 2) www.icoper.org - 23 partners.

35. Risk management – definition and objective • Risk is a feature of an outcome of an activity (the potential of an undesirable outcome); it describes the level of uncertainty for obtaining a predefined outcome. • Risk is a probabilistic measure: the formula for the simplest case – M/N. • The objective of risk management: keep the realization probability of risks cost-effectively on an acceptable level.

36. Risk management – general scheme • General scheme for risk management: • Risks identification → Riskanalysis → Mitigation of risks (identification and execution of responses). • The main problem: find an optimal cost level for risk management (it normally does not exceed 10% of the project costs)‏. • NB! Usually people are the biggest sources of risks, then information/data (non-adequate, missing, leaking etc) and then infrastructure.

37. Risk management – techniques of identification Examples: • analysis of documents (including web based) • brainstorming • Delphi-technique • Interviewing customers • SWOT-analysis • Diagrammatic analysis (analysis of cause-and-effect diagrams)‏ • ... • Example of an non-mitigated/non-hedged risks: EMT draw of cars. • The identification techniques on different stages of a project can be different, see chapter “Project Risk Management” in PMBOK Guide.

38. Risk management – risk analysis • Risks analysis consists normally of the following elements: • Sources of risks • The level (scale: very low – low – medium – high – very high) • Cost estimation (harm severity: negligible – marginal – … – catastrophic) • Duration estimation • Risk tolerance (ability to carry losses) • Mode of presentation: table or matrix (probability-harm severity). • NB! Risk analysis should cover both internal and external risks of the project.

39. Exercises • Describe possible risks if the cooperation with customers is insufficient? Bring an example. • Independently: Based on a web search (using keywords “wbs” and “work breakdown structure” ) find additional techniques for development of the structure of project activities.

40. Discussion • What is quality?

41. The concept of quality – history • Edwards Deming: quality means continuous improvement through analysis of experience, interpretation and implementation of results. • Joseph Juran: considers quality as the degree of usability – the needs of customers are most important. Propagates Pareto principle: 80% of problems are caused by 20% of the cases). • Philip Crosby: quality is defined as conformance to requirements (of the product and the customer’s). • Genichi Taguchi: difference from previously determined target/outcome (the smaller the better). Considered the quality of development process in relation with the quality of outcome. • Today there is no unique conception of quality – different disciplines (philosophy, business, musics etc) treat this differently. In business – fitness for purpose.

42. Planning of quality management • Quality is a relative category, purpose-driven (like matching teeth for chewing). • The processes of quality management: • Quality planning (identifying standards, documents, indicators etc) • Quality assurance (application of quality activities necessary for achieving the intended outcome) • Quality control (monitoring the results and recommending the changes). • The quality standards and/or frameworks that are followed should be determined already during the planning phase of a project. • The main problem: identify good quality indicators. Example: e-learning.

43. Principles and tools for quality management • Quality assumes determination and agreement on the following: • Cooperation with the customers (involvement, piloting, feedback surveys, ...)‏. • Cooperation inside the project team (mutual informing, coordination of activities, …) • Necessary competence and its acquiring (publications, conferences, obtaining patents, consulting, …) • The wider context to take into account. Example: (potential) needs of enterprises  occupational/professional standards curriculum  qualification  evaluation/certification).

44. Example: EFQM Excellence Model • EFQF – European Foundation for Quality Management, www.efqm.org). • 5 enablers (Leadership, People, Strategy, Partnership, Processes) • 4 results (People, Customer, Society, Key Performance). • Fundamental principles: • Achieving balanced results • Adding value for customers • Leading with vision, inspiration & integrity • Managing by processes • Succeeding through people • Nurturing creativity & innovation • Building partnerships • Taking responsibility for a sustainable future. 44

45. Recommendation (quality management) • High-quality outcome presumes high quality processes. Therefore it is important to identify the quality indicators for basic processes as well (The aim: “doing the right things right”). • The main problem: quality indicators and quality assurance tools are project specific.

46. Dissemination and exploitation of the results • Dissemination: the aim is to inform the wider public about the results. • Exploitation: the aim is to apply/deploy the results of the project. • Application can be hierarchical: an outcome can be applied in some other project, which outcome in turn applied in a third project etc. • Example1: • Research in development of intellectual abilities of children • Development of teaching methods for enhancing intellectual abilities of children • Development of teaching materials used in applying teaching methods • Conducting a pilot training (and an action research). • Example 2: training athletes (video, math/progr, anatomist, trainer). • NB! Dissemination and exploitation activities are often considered as not being included into project life cycle.

47. Assessing possible impact of a project • Impact can be multi-dimensional: • Short-term or long-term • Local/regional, national, global • Direct or indirect (E: international contacts, cooperation inside Estonia, acquisition of new experience) • Specific or universal (improving a process, increasing of resources). • The impact can be considerable even if the planned outcome has not been achieved. Example: Tempus JEP 11202 – development of a master programme in Applied Mathematics. • NB! Assessment (and its assurance after the project end) of an impact is mainly a problem for projects that are financed by public sector institutions (including EU). Why?

48. Input for a budget • The budget should contain cost estimation of all resources necessary for completing the project. • Often a wider context (sometimes even expanding outside the project life cycle) is supposed to be taken into account, Example: reducing testing costs in software projects can result in much higher maintenance costs after implementation of the software. • Budget bases on the following data: • Work breakdown structure and time-table ‏ • Infrastructure, materials and technological tools‏ • Cost rates (salaries, rental costs etc) • “Historic” and other additional information. E: inflation estimates for long-term projects.

49. Budget – the structure • Usually the financing institution determines the structure of the budget. • Example: • Staff costs (including all taxes) • Travel and subsistence • Subcontracting/external services • Equipment and materials • General costs (infrastructure, communication etc) • Other costs • Methods for calculating costs: • Bottom-up method: the costs of all activities are calculated and summed up. • Using analogy based on previous similar projects. • parametric method based on some formal cost model. E: COCOMO II.

50. Budget – problems • Calculation of indirect (including infrastructure) costs: • Difficult to determine. E: costs of research projects – flat rate. • acceptance. • Main problems: • Not all actual costs are included in the budget • Computational errors in calculations • Non-realistic prices (too low or too high) • Unnecessary or not justified costs • Illegal costs. E: Doc@Home. • Co-financing. • Indication of possible cost-saving options. • NB! Follow good practice/code of conduct.