Project Management in About an Hour

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1 Project Management in About an Hour Presented to SCIE ARMA May 17, 2017 Tammo Wilkens, P.E., PMP. CSM

2 Project Management Overview - The Fire Hose

3 Project Management Overview Time Cost Scope Procurement Stakeholders Integration Communications Risk Quality Human Resources

4 Project Management Overview - What is a project? A project is a temporary endeavor that creates a unique = product, service or result.

5 Project Management Overview - Why Use Project Management? Project Management and productivity are related!

6 Project Management Overview - An Analogy to Control Systems Home Furnace DISTURBANCE DOOR OPENING WIND BLOWING INPUT DESIRED TEMP THERMO- STAT CONTROLLER FURNACE OUTPUT ACTUAL TEMP TEMPRATURE SENSOR FEEDBACK LOOP Project Management DISTURBANCE PROCUREMENT DELAYS STRIKES WEATHER REGULATORY CHANGES INPUT SCHEDULE SCOPE COST ANALYSIS ACTUAL vs. PLAN PROJECT MANAGER PERIODIC STATUS REPORTS PROJECT ACTIVITIES FEEDBACK LOOP OUTPUT PROJECT PROGRESS

7 Project Management Integration - Project Charter The project charter is a document that formally authorizes a project. It provides the project manager with authority to plan and execute the project (apply resources to project activities) I am the Project Manager. Our company has put its full faith and trust in me. Issued by an enterprise, government agency, company, program organization or a portfolio organization.

8 Project Management Integration - Project Charter The project charter should address the following: Requirements of customer/stakeholders Business needs & high level project description Project purpose and justification Assigned project manager and authority level Summary milestone schedule Stakeholder influences Functional organizations and their participation Organizational and external assumptions Organizational and external constraints Business case, including ROI Summary budget

9 Project Management Overview - The Triple Constraint RESOURCES SCOPE QUALITY

10 Human Resources Management

11 Human Resources Management - Overview Human resources management processes: Plan Defining roles & responsibilities Acquire Organizing Staffing Level -- Staffing Develop Monitor & Control Training Reward & punishment OR Team building Career development

12 Human Resources Management - Human Resource Planning Roles & responsibilities: Role portion of project for which a person is responsible Authority the right to apply resources, make decisions & sign approvals Responsibility the work a person is expected to perform Competency the skill & capacity required to perform project activities

13 Human Resources Management - Plan Human Resource Management Roles Resource Library Resources Roles and Resources Assigning Roles to Activities ACTIVITY A Replacing Roles with Resources ACTIVITY A Trainers Betty Joe Chuck Trainer Civil Engineer Betty George Civil Engineers ACTIVITYB ACTIVITY B Mechanical Engineers George Mary Harry John Sylvia Mark 2 Mechanical Civil Engineers Engineer Harry John Mary

14 Human Resources Management - Plan Human Resource Management Staffing plan example:

15 Human Resources Management - Plan Human Resource Management RACI type of Responsibility Assignment Matrix RACI Chart Person Activity Ann Ben Carlos Dina Ed Define A R I I I Design I A R C C Develop I A R C C Test A I I R I R = Responsible A = Accountable C = Consults I = Inform

16 Human Resources Management - Acquire Project Team Project Management Skills: Honesty and integrity Understanding of personnel problems Understanding of project technology Business management competence Project Management principles Communications Able to identify problems Decision-making ability Able & willing to devote most of their time to planning & controlling No doing

17 Human Resources Management - Develop Project Team Developing the project team involves improving the competencies and interaction of team members. Improve skills Improve feelings of trust & cohesiveness Examples: Assisting others when work load is unbalanced Training Team building

18 Communication Management

19 Customer Communications CUSTOMER CONTRACTOR PROJECT SPONSOR OR EXECUTIVE INFORMAL PROJECT SPONSOR OR EXECUTIVE PROJECT MANAGER OR CONTRACTS OFFICER FORMAL PROJECT MANAGER OR CONTRACTS OFFICER EMPLOYEES INFORMAL EMPLOYEES

20 Communications Management - Communications Plan Distribution Matrix Person Document Type Ann Ben Carlos Dina Ed Project Charter P E E Design Drawings E E E Technical Matters E P P E Status Reports P P P P P Project Schedule E E E E E Legal Documents P E Project Budget P E E Organization Charts P E E = Electronic P = Paper

Methods of Communication Interactive Communications Between two or more parties conducting a multidirectional exchange of information Examples: Two

21 Methods of Communication Interactive Communications Between two or more parties conducting a multidirectional exchange of information Examples: Two individuals talking Interviews A phone call Problems with this method: Trust between the parties Perception & personality screens Willingness to communicate

22 Methods of Communication Push Communications Sent to recipient(s) without immediate confirmation and feedback Examples: Letters Memos Reports s Voice messages Problems with this method: No confirmation of receipt No immediate feedback Perception & personality screens

23 Methods of Communication Pull Communications Typically used for large audiences and requires the recipients to access the information at their discretion Examples: Bulletin boards Knowledge repositories, i.e. lessons learned Intranet sites Problems with this method: Requires recipient to take steps to access the information No confirmation of receipt No immediate feedback

24 How Does a PM Spend His/Her Time? A PM may well spend 90% of his/her time communicating. Some examples include: Providing project direction Decision making Authorizing work Directing activities Negotiating Reporting/briefings Attending meetings Overall project management Marketing & selling Public relations Records management Minutes Memos/letters/newsletters Reports Specifications Contract documents

25 Project Communications Generic Meetings: kickoff, team building, status review, dissemination Plans, manuals, guides, policies Transmittal memos Formal letters Website Specifications & contracts Design documents: specifications, drawings, standards

26 Project Communications Specific Project Scope Statement Project Mission Project Contract Communications Plan Quality Plan Project Control Plan Work Breakdown Structure Project Schedule Project Cost Estimate Distribution Matrix Document Control Plan Safety Plan Project Organization Chart Responsibility Matrix

27 Stakeholder Management

28 Project Stakeholder Management Identify Stakeholders Stakeholders are persons & organizations such as: Customers Sponsors Users Managers Business partners Performing organization, e.g. project team Public, usually represented by regulatory agencies

29 WEAK PASSIVE BLOCKER INTEREST Low STRONG ACTIVE BACKER High High Low POWER / INFLUENCE This material was presented by Dr. David Hillson at PMI s 2016 Global Congress in San Diego and is used with permission. Negative ATTITUDE Positive Adapted from The Stakeholder Cube, which is copyright 2006 Murray-Webster & Simon, used with permission

30 Project Stakeholder Management Identify Stakeholders Stakeholders Register Stakeholder/ Attitude Stakeholder Interest In the Project Assessment of Impact Potential Strategies for Gaining Support or Reducing Obstacles

31 Responding to risky stakeholders Different profiles different RESPONSES Type Advocate Power/Interest/Attitude Response Major opportunity, EXPLOIT Friend Sleeping Giant Acquaintance Saboteur + + Significant opportunity, ENGAGE + + Good opportunity, ENHANCE + Neutral, MONITOR + + Major threat, AVOID Challenger Opponent Hindrance + Significant threat, ENGAGE + Significant threat, REDUCE Minor threat, MONITOR This material was presented by Dr. David Hillson at PMI s 2016 Global Congress in San Diego and is used with permission.

32 Risk Management

33 The Nature of Risks Risks have causes What delayed the project finish? Why did costs escalate more than expected? Why are the truckers striking? These causes are called hazards Known hazards can be dealt with If you watch the weather forecast, you ll have a tarpaulin ready If you know the road, you ll avoid the pothole

34 Assessing Risk Risk = f 1 (uncertainty, damage) Risk = f 1 (probability, consequence) Risk = f 2 (hazard, safeguard) When you provide or increase a safeguard, you are either: 1. Reducing the probability of the hazard occurring 2. Reducing the consequences of the hazard, or 3. Eliminating (Avoiding) the risk altogether

35 The Risk Matrix HIGH PROBABILITY UNCERTAINTY HIGH RISK LOW PROBABILITY LOW IMPACT DAMAGE LARGE IMPACT

36 Providing a Safeguard Consider the I-15 overpass fire during construction It s my understanding that the fire was caused by a welding torch. So, what was the hazard? What could be done about it? And for each option, what would we affect: probability or consequence?

37 Providing a Safeguard Risk = f 1 (probability, consequence) Risk = f 2 (hazard, safeguard) When you provide or increase a safeguard, you are either: 1. Reducing the probability of the hazard occurring a. Provide more safety training and hold tailgate meetings b. Reduces probability of a fire starting 2. Reducing the consequences of the hazard a. Use less wood materials b. Reduces the Consequences 3. Eliminating (Avoiding) the risk altogether a. Use all metal forms and supports b. Reduces the risk to zero (avoidance)

38 Qualitative Risk Analysis Overview Qualitative risk analysis is the process of examining each risk to estimate the probability [of it occurring] and to predict the impact on the project on a relative basis.

39 Perform Quantitative Risk Analysis Overview Quantitative risk analysis is the process of extending the risk analysis with numerical values to determine the specific effect on the project.

40 Perform Quantitative PAYOFF TABLE Risk Analysis Payoff Table With Risk States of Nature Strategy N N N 3.50 S 1 = A $60 $40 $90 S 2 = B $50 $70 $60 S 3 = C $100 $80 $-50 E 1 = 60* * *0.50 = E 2 = 50* * *0.50 = E 3 = 100* * *0.50 = E i is the expected payoff for strategy i P i,j is the payoff element p j is the probability of each state of nature occurring N E i = j = 1 Pi, j * pj

41 Plan Risk Responses Options for Risk Handling Assumption (Acceptance) PM asserts that he knows the probability and consequence of the risk and is willing to accept it Avoidance PM will not accept the risk and change either the requirements or the design to preclude the issue Control (Reduce or Mitigation) PM accepts the risk and intends to continuously evaluate the issue and make contingency plans This option is the one that deals with hazards by implementing safeguards Transfer PM will share the risk with others through insurance or change of scope to other parties

42 Scope Management

43 PMI s 3 Types of Scope : Scope, Product Scope & Project Scope What is: Scope? The sum of the product, service or result to be provided The overall project to be completed The various systems or components The deliverables of the project Product Scope? The features & functions that characterize a product, service or result Project Scope? The work that needs to be accomplished to deliver a product, service or result with the specified features and functions

44 Define Scope Scope Statement Scope Definition involves the detailed description of the project s scope, product scope and the project scope Scope definition selects those requirements collected in the Collect Requirements process that will be part of the project. I.e., not all collected requirements may be considered part of the scope.

45 Create Work Breakdown Structure - Detailed Statement of Work After scope identification, a detailed statement of work needs to be developed. This is best done on the framework of a WBS. The WBS organizes and defines the total scope of the project as well as the project scope The WBS provides a means to analyze portions of the project at various levels

46 Create Work Breakdown Structure - Examples LEVEL 1 PROJECT 2 SYS A SYS B SYS C 3 SUB- SYS 1 SUB- SYS 2 SUB- SYS 5 SUB- SYS 6 SUB- SYS 7 SUB- SYS 3 SUB- SYS 4 4 DELIVE- RABLE 1 DELIVE- RABLE 4 DELIVE- RABLE 11

47 Roll-up & Drill-down E Actual: 2790 Planned: 2040 Var: -750 E-1 Actual: 1500 Planned: 1440 Var: -60 E-2 Actual: 1290 Planned: 600 Var: -690 E-1-A E-1-B E-1-C E-2-A E-2-B Actual: 100 Actual: 400 Actual: 1000 Actual: 490 Actual: 800 Planned: 90 Planned: 450 Planned: 900 Planned: 500 Planned: 100 Var: -10 Var: 50 Var: -100 Var: 10 Var: -700 Olympic Consulting Services

48 Functional Organization Breakdown Structure Company ~ ~ Programming Testing Docum. ~ Contract Create Work Breakdown Structure - Examples Design ~ ~ Templates Data Integ. Quality Control Forms Des Work Package Work Package Contract Work Breakdown Structure Data Entry Validation Work Package Work Package Direct Oper. Interf. Report Design Lowest level of the WBS. Intersection of WBS & OBS. Also can be the Control Account Web-based Screen Mast. Work Package Cost Account Work Package Business Rules Report Gener. ~ Batch ~ ~ ~ Data Maint. Work Package ~ Activities

49 Control Scope Scope control is the process of managing the project scope during the execution of the project. It is one of the major factors in minimizing the project cost. It can be one of the most difficult challenges for a project manager.

50 Control Scope Scope control is the process of managing the project scope during the execution of the project. Scope changes are those adjustments to a project that affect the content, shape, quantity, quality, size, etc. of the project deliverables, as well as the project scope. Changes can be increases or decreases in these parameters. Changes in scope may affect both cost and or schedule.

51 Control Scope Idea Change Request Generic Change Process Consider? N Scope Baseline Y Adjust Estimate Change Process Approved? N Y Issue & adjust budget

52 Time Management

Project Time Management Processes Project Time

53 Tue a.m. Progress Updating One Schedule Database APPROVED CHANGES Tue a.m. Tue a.m. T u e p. m. Fri p.m. Tue a.m. Project Time Management Processes Project Time Management Processes: Plan Schedule Management Define Activities Sequence Activities Functional Design Coding Testing Estimate Activity Resources B Estimate Activity Durations Develop Schedule Control Schedule 10

54 Project Time Management The Planning Process 1. Define & plan the work via a WBS 2. Schedule the work via CPM network 3. Allocate the resources, i.e. the budget 4. Form a project baseline the execution plan

55 Project Time Management Sequence Activities Sequence Activities is the process of identifying and documenting relationships between the activities and milestones. This determines the order in which the various parts of the project scope will be performed.

56 Time Management Relationships Finish-Start Start-Start P P S S Finish-Finish P Start-Finish S P S

57 Time Management Relationships Finish-Start P S Functional Design Coding Testing Straight forward, one after another

58 Time Management Relationships Start-Start P S Excavate Trench 5d lag Place Rebar & Forms 5d lag Pour Concrete Start at same time, perhaps with some lag

59 Time Management Relationships Finish-Finish P S Lay Piping 5d lag Inspect Piping 5d lag Close Trench Finish at same time, perhaps with some lag

60 Time Management Relationships Start-Finish S P Construct Elevator Shaft Install Elevator Fabricate & Deliver Elevator Test Elevator No convenient predecessor

61 Project Time Management Estimate Activity Resources Estimate Activity Resources is the process of estimating the types and quantities of material, human resources, equipment & supplies required to perform each activity. This process is closely related to the Estimate Costs process under Project Cost Management.

62 Project Time Management Estimate Activity Durations Estimate Activity Durations is the process of estimating the number of work periods, e.g. hours or days, to complete an activity with the estimated resources. This process uses information on activity scope of work, required resources types and quantities, as well as any resource calendars that might be in effect. These duration estimates are progressively elaborated during the execution of the project.

63 Project Time Management Develop Schedule Schedule development is the process of refining the initial plan into a viable and acceptable schedule model. It is an iterative process. It continues throughout the project execution. It is analogous to squeezing the balloon back into the box

64 Project Time Management Develop Schedule Schedule model The construct of an activity network with their relationships, lead, lags, constraints, resources and resource availability produces a model of the project execution plan This model has numerous inputs for adjusting activity or network parameters to simulate different execution scenarios S A 3 wk B 4 wk C 1 wk D 2 wk Duration Sequence Lags Constr ts Schedule Model F 3 wk E 2 wk Resources F

65 Project Time Management Control Schedule Schedule control is the process of: Reporting progress on the activities being worked on and completed Measuring the performance with regard to progress and cost Performing variance analysis to determine where schedule problems exist that require attention, such as re-planning Interfacing with the schedule change control system Managing the approved baseline to incorporate scope changes or to perform a re-baselining

66 Project Time Management Control Schedule Progress reporting asks these questions for each activity: Has the activity started? If yes, when? Has the activity finished? If yes, when? If started but not finished, how many time units of remaining duration are required to finish it? What per cent complete is the activity? What actual costs are charged to the activity or its WBS parent?

67 Project Time Management Control Schedule Maintenance vs. Progress DOCUMENT LIBRARY Progress Updating Master Integrated Schedule PCE Provides Progress Update Sheets & Final Previous Updates Team Leads Determine Progress Task Owners Deliver Progress Fri p.m. One Schedule Database PCE Updates Progress Task Owners Deliver Schedule Changes PCE Processes Schedule Revisions and Changes Tue a.m. Tue a.m. PCE Preps Reports Tue a.m. Task Owners Develop Schedule & Scope Changes, Execution Sequence, Add/Deletes, Recovery Plans, etc. PCE Provides Latest Updated Schedule APPROVED CHANGES Construction Reviews Olympic Consulting Services Mon SCIE ARMA Chapter Tue - Annual RIM Wed Seminar 2017 Thu Fri Tue a.m. PM, PCE & Team Leads Review Tue p.m.

69 Cost Management

70 Project Cost Management What is Cost? Generally expressed in dollars Anything and everything charged to the project Can be expressed in labor hours under special circumstances

71 Project Cost Management The Steps Planning Estimating Budgeting Control

72 Project Cost Management Plan Cost Management Pkg G Budget Pkg A Budget Pkg B Budget Pkg F Budget Pkg H Budget Pkg C Budget Pkg E Budget Pkg D Budget Contingency vs. Reserve

73 Project Cost Management Estimate Costs Estimating is the process of developing an approximation of the monetary resources required for the project activities and thus of the project as a whole. Estimates are a prediction based on information at a given point in time. Estimates become the basis for the project budget. Estimates are refined to greater accuracy as the project proceeds toward completion.

74 Project Cost Management Estimate Costs Evolution of estimates -25% +75% -10% +25% +10% -5%

75 Project Cost Management Determine Budget Budgeting is adoption of the detailed estimates to establish an authorized baseline and reconciling the budgeted costs with the funding limits. Budgets are approved and reflect the expected cost of the project. Estimates are best guesses of what the costs will be, not necessarily approved.

76 Project Cost Management Determine Budget Funding limit reconciliation: The owner or sponsor of the project may have limits on how fast the total project cost can be funded. Funding limits may impose constraints (start no earlier than) on parts of the project schedule network. This may override the original plan and push project completion out beyond initial planned finish.

77 Project Cost Management Determine Budget Cost Baseline Project Funding Requirements

78 Project Cost Management Control Costs PERFORMANCE MEASUREMENT DATA ELEMENTS BAC EAC BCWS PROJECTION OF COST VARIANCE AT COMPLETION TARGET SCHEDULE TO-DATE SCHEDULE VARIANCE FCST PROJECTION OF SCHEDULE DELAY AT COMPLETION CURRENT SCHEDULE FTG Let s take it one step at a time TO-DATE COST VARIANCE LEGEND ACWP BCWP DATA DATE TIME BCWS BCWP ACWP FCST BAC EAC FTG = BUDGETED COST OF WORK SCHEDULED = BUDGETED COST OF WORK PERFORMED = ACTUAL COST OF WORK PERFORMED = FORECAST OF REMAINING WORK = BUDGET AT COMPLETION = ESTIMATE AT COMPLETION = ESTIMATE TO GO

79 Questions?