Module 02 : Knowing What the Project Is, Part 1. 2.

Module 02 : Knowing What the Project Is, Part 1

*Project Management (x470)

2

*Class Road Map

Session 1Foundational Concepts

Sessions 2 & 3

Knowing WHAT the

Project Is

Session 4

Knowing WHERE the Project Is

Session 5

Closure, Group

Presentation, Advance

Topics

3

*Session 2 Agenda

Short Quiz

1

• Questions / Review - Session 1 concepts• Short Quiz

Knowing WHAT the Project Is

• Scope

Team Sessions

• Scope Statement• WBS

Monitoring and Control

4

*Project Genesis

Project Drivers

• Problems• Opportuniti

es• Business

requirements

Project Approval

• Formal “Go” decision

• Project Charter

• Project Manager assigned

Project Plan

• Clear and approved project or phase definition

• Stakeholders

• Scope (Deliverables)

• Schedule• Cost

Knowing WHAT The Project Is

5

*Project Approval (Initiation) Challenges

*No formal project approval (initiation) process

*Unrealistic expectations and assumptions

*Timing of Project Manager engagement

*Degree of accuracy for project and product documents

*Speed vs Accuracy vs Change Control culture

*Functional Areas’ Concern: Spending precious resources’ time on projects that will be disapproved

6

*Project Approval “Monitor & Control” Aspects

*Project documentation intensity / rigor. Factors:*Duration

*Cost

*Project risk

*Priority / importance

*Project classification* Small, Medium, Large

* Standard, Light, Tracking

*“Project” definition

*Projects or investments

*Project approval process

*Project classification

- Strategy alignment

- Functional group

- Others

7

*Knowing What the Project Is:Planning Fundamentals

“Failing to plan is planning to fail.” - Harold Kerzner

If project deliverables are clear, much of the work can be pre-planned (Linear Project Life Cycle approach)

If project deliverables are not clear, initial work should focus on a set of deliverables that will either provide clarity in the scope or are pre-agreed upon (Iterative, Adaptive, Extreme Project Life Cycle approaches)

The more uncertain the deliverables, the greater the need is for frequent “validation cycles”

Do detailed planning only up to the next point of knowledge

8

*Project Life Cycle Approaches

Q1: Linear Approacho Low complexityo Well understood

technologyo Low risko Completed similar

project

Q2: Adaptive / Iterative Approacho Product development

and process improvement

o Production prototype development

Q4: Unlikely Situation

Solution looking for a problem

Q3: Extreme Approacho Nothing about the

project is certaino Product is accepted

after some iterations or pulls plug

o R & DGOAL

SOLUTION / REQUIREMENTS

Unclear

Clear

Clear Unclear

9

*Lifecycle Approaches Uncertainty & Complexity

GOAL

SOLUTION & REQUIREMENTS

UNCLEAR

UNCLEARCLEAR

Extreme

Iterative / Adaptive

Linear

UNCERTAINTY & COMPLEXITY INCREASES

CLEAR

10

*Adaptive / Iterative Life Cycle Model

High Level Scope

Cycle Scope

Cycle Plan

Cycle Execute

Cycle Close

Post Cycle

Review

Close Project

Next Cycle

?

11

*Fast Tracking & Rolling Wave

Planning* Fast Trackingpractice of overlapping phases

a.k.a concurrent engineering

Phase 1

Phase 2

Phase n

Rolling wave planning – progressive detailing of the project plan that indicates iterative and ongoing nature of planning. Near-term deliverables identified at a low-level view of detail, long-term deliverables identified at a high-level view of detail (Iterative, Adaptive, Extreme Life Cycle Approaches)

Project Plan

12

*Knowing What the Project Is:Project Planning

Scope

Objective: Identify all the work required, and only the work required, to complete the project successfully

Deliverables: (1) Scope Statement (2) Work Breakdown Structure

Schedule

Objective: Determine the time required to meet the

project needs

Deliverables: (1) Project

Schedule (2) Project

Milestone

Cost

Objective: Identify the

funding needed to meet project

goals /deliverables

Deliverable: Project Cost

Baseline

Sta

keh

old

er

Man

ag

em

en

t

*Knowing What the Project Is:Scope Planning Steps

Objective: Identify all the work required, and only the work required, to complete the project successfully

•Stakeholder Register•Project Charter Collect

Requirements

Define Scope Create WBS

Validate Scope

•Product Needs•Project Mgm’t Needs

Scope Statement Work Breakdown Structure

Approved Scope Documents

*Knowing What the Project Is:Project Scope Statement

Product scope descriptionCharacteristic of the product that the project will produce

Project life cycle approach

DeliverablesList of sub-products whose full and satisfactory delivery marks project completion. Usually includes milestone deliverables.

Product acceptance criteriaSuccessful completion metrics

Project exclusions

Project assumptions and constraints

Sponsor approval

15

*Knowing What the Project Is:Assumptions, Constraints*Assumptions

Factors that are considered to be true, real, or certain for planning purposes

Generally involves a degree of risk

*Constraints

Factors that limit the project team’s options

16

*Team Work

*Draft a Scope Statement for your project (30 minutes)

*Use the workbook template.

17

*Knowing What the Project Is:The Work Breakdown Structure

Collect Requirement

s

Define Scope Create WBS

Validate Scope

18

*Knowing What the Project Is:Decomposition

* Subdivision of major project deliverables or sub-deliverables into smaller, more manageable components until the deliverables are defined in sufficient detail to support development of project activities (planning, executing, etc..)

Identify major project deliverablesDecide if adequate cost and duration estimate can be made at this level of detail for each deliverableIdentify constituent components of the deliverable if necessaryVerify correctness of decomposition (necessity, definition, cost, duration, responsibility)

Definition: Steps:

19

*Knowing What the Project Is:Work Breakdown Structure

A deliverable oriented grouping of project components that organizes and defines the total scope of the projectDefines products, not tasksCan be developed using a top-down or bottom-up approachCan be hardware-related, function-related, life cycle-related or a combination

Foundation of all planning!

20

*Knowing What the Project Is:Work Package

Lowest level deliverable in a WBS

Work effort guideline - 80 to 150 hours

Ownership assigned at this level

Tasks are identified under this level

Task size guideline - not to exceed 80 hours; less for high risk project

21

*Knowing What the Project Is:WBS Template

Project Name

Phase 1 Phase 2 Phase ‘n’

Deliverable 1

Deliverable 2

Deliverable N-1

Deliverable N

Product Process

Project Managemen

t Process

22

*Knowing What the Project Is: Scope Baseline

*Scope Statement

*WBS

23

*Knowing What the Project Is:Requirements ChallengesMay not be fully known at the start of a project

May come from multiple sources / groups

May come at various levels of details

Some stakeholders may not be known initially

May be “wants” and not “needs”

Wants - usually more associated with a solution

Needs - usually more associated with the underlying problem

May conflict with each other

May feed off each other

Usually requires iterations and trade-offs to finalize

May change

24

*Project Monitoring and Control: Project Flexibility Matrix

HighMediu

mLow

Scope

Time

Cost

25

*Knowing What the Project Is:Scope Determination Summary

Make sure project stakeholders have all been identified

Functional groups that will have a deliverable on the project should be represented on the project team

WBS should represent only the work needed to complete the project successfully

Validate the Scope baseline documents with the project sponsor or approving authority

Process iteration is the norm

26

*Team Work(60 minutes)

• Construct a life-cycle based WBS for your project

• Use a Post-It-Note sheet for each deliverable

• Concentrate on product deliverables but add project management process deliverable that have already been discussed in class

27

*For Next Meeting

*Short Quiz

*Team presentation (15 minutes each):

*Stakeholder Satisfaction Matrix

*Lifecycle

*Scope Statement

*WBS

28

*Session 3 Agenda

Short Quiz

1

• Questions / Review - Session 2 concepts• Short Quiz

Knowing WHAT the Project Is

• Schedule (Critical Path Calculations)• Cost

Team Sessions

• Project Schedule• Cost Baseline

29

*Knowing What the Project

Is:Schedule Planning Steps

Define the Tasks Comprising the Work

Package

Sequence the Tasks or / and Deliverables

Estimate the Tasks or Deliverable

Resource


Duration

Develop the Schedule

Objective: Determine the time required to meet the project needs

30

*Knowing What the Project Is:Project Schedule

* Should include planned start and finish dates for each deliverable / activity.

* Tabular form

* Graphical form–Bar / Gantt Chart–Milestone chart–Network diagrams

31

*Knowing What the Project Is:Bar (Gantt) Charts

32

*Knowing What the Project Is:Milestone Chart

33

*Knowing What the Project Is:Task Sequencing


Package



Resource


Duration


Objective: Identify interdependencies among tasks / deliverables

Primary Deliverable: Project Schedule Network Diagram

34

*Knowing What the Project Is:Activity Dependency

Mandatory – inherent in the nature of the work being done, a.k.a. hard logicDiscretionary – defined by the project team, a.k.a. preferred logic, preferential logic, soft logic External – involve relationships between project activities and non-project activities

35

*Knowing What the Project Is:Scheduling Techniques

Gantt or bar charts

Milestone charts

Networks (show interdependencies)

Precedence Diagram Method (PDM)

Arrow Diagram Method (ADM)

36

*Knowing What the Project Is:Precedence Diagramming Method

Method of constructing network diagram that uses boxes (nodes) to represent activities and connects them with arrows to show dependenciesa.k.a. Activity On Node (AON)

37

*Knowing What the Project Is:Precedence Relationships (1 of 2)

Eqpt Rcvd

Wall Preparation

Wallpapering

Eqpt InspectedFINISH-TO-START

START-TO-START

FINISH START

START

START

Production Burn-In

Operational Acceptance

START-TO-FINISHFINISH

START

38

*Knowing What the Project Is:Precedence Relationships (2 of 2)

Wall Preparation

Network Requirements

Network Design

Wallpapering

FINISH-TO-FINISH

PERCENT COMPLETE

FINISHFINISH

20 %

50 %

39

*Knowing What the Project Is:Node Activity Information

EARLY START01/06/12

TIME DURATION2 WORK-WEEKS

EARLY FINISH14/06/12

ACTIVITY 4 $250,000

LATE START15/06/12

COST/PROFIT CENTER 2810

LATE FINISH28/06/12

SLACK

40

*Knowing What the Project Is:Precedence Network

ActivityPreceding Activity

A

B A

C A

D B

E C, D

F E

Early Start

Duration

Early Finish

A

Late Start Slack Late

Finish

Early Start

Duration

Early Finish

B


Finish

Early Start

Duration

Early Finish

D


Finish

Early Start

Duration

Early Finish

E


Finish

Early Start

Duration

Early Finish

F


Finish

Early Start

Duration

Early Finish

C


Finish

41

*Knowing What the Project Is:Resource Estimating


Package



Resource


Duration


Objective: Estimate the type and quantities of materials, people, equipment or supplies required to complete each task or deliverable

Primary Deliverable: Task / deliverable resource requirementsSecondary Deliverable: Resource Breakdown Structure


42

*Knowing What the Project Is:Resource ConsiderationsPeople, material, equipment, supplies

Time / Skill and other trade offs

Resource requirements including timing

Resource Organizational Matrix

43

*Knowing What the Project Is:Duration Estimating


Package


Estimate the Tasks or Deliverables

Resource

Estimate the Tasks or Deliverables

Durations


Objective: Determine the work period required to complete the task or deliverable with the estimated resources



Primary Deliverable: Task / deliverable duration estimate

44

*Knowing What the Project Is:Duration Estimating Techniques

Expert judgment

Analogous estimating

Parametric estimating

Three-point estimating

Reserve time (contingency)

45

*Knowing What the Project Is:Analogous Estimating

Use actual duration of a previous similar activity as basis to estimate duration of the future activity

Approximate (rule of thumb) estimate

Made without any detailed engineering data

A.k.a “Top-down estimating”

46

*Knowing What the Project Is:Parametric Estimating

Quantities to be performed for each work category defined by the engineering/design effort multiplied by the productivity unit rate

Example: No. of drawings x no. of hours per drawing

47

*Knowing What the Project Is:Three-Point Estimating

* O - Optimistic completion time estimate

* M – Most likely completion time estimate

* P – Pessimistic completion time estimate

* Task Duration = (O+4M+P)/6

48

*Knowing What the Project Is:Schedule DevelopmentDefine the Tasks

Comprising the Work Package



Resource


Duration


Objective: Create project schedule based on activity/deliverable sequences, resource and duration estimates, and schedule constraints



Primary Deliverable: Task / deliverable duration estimatePrimary Deliverable:

Project Schedule BaselineSecondary Deliverable: Milestone Schedule

49

*Knowing What the Project Is:Critical Path and Float

Critical Path

Longest time span through the total system of activities / events

Delay in any activity / task in the critical path delays the whole project

Improvement in total project time means reducing time for activities / events in the critical path

Slack Time (Float) - Time differential between the scheduled completion date and the required date to meet critical path.

50

*Knowing What the Project Is:Critical Path Calculation*Determined by doing forward and backward pass calculations

Forward Pass• Calculates

early start and early finish dates

• Project end date

• Longest path

Backward Pass• Calculates

late start and late finish dates

• Task / project float

• Identifies tasks in critical path

51

*Knowing What the Project Is:Forward Pass

The first predecessor task(s) have an Early Start (ES) of zeroEarly Finish (EF) dates are calculated by adding the task duration (TD) to the earliest date (ES) a task can startThe EF date of the predecessor becomes the ES date for the successorWhen there are multiple predecessors, ES is the larger of the EFs for the task

52

*Knowing What the Project Is:Backward Pass

Late Start (LS) and Late Finish (LF) dates are calculated starting from the end of the projectLS is calculated by subtracting the TD from the LF of the taskLS for the successor task becomes the LF for the predecessor taskWhen there are multiple successors, LF is the smaller of the LSs

53

*Knowing What the Project Is:Critical Path and Float

Task Float = Late Finish – Early Finish

Those tasks with zero float are on the critical path

54

*Critical Path Exercises

*Refer to your PM Workbook.

55

*Knowing What the Project Is:Schedule Development Considerations

* Life Cycle Approach

*Constraints–Imposed dates on activities (start/finish)–Key events / major milestones

* Leads and lags: dependency relationship among activities

* Schedule compression–Crashing–Fast Tracking

56

*Adaptive / Iterative Life Cycle Model

High Level Scope

Cycle Scope

Cycle Plan

Cycle Execute

Cycle Close

Post Cycle

Review

Close Project

Next Cycle

?

57

*Team Work

*Determine the Schedule for a phase of your project (20 minutes)

58

*The Budget Trap

*Knowing What the Project Is:Cost Planning Steps

Objective: Identify the funding needed to meet project goals / deliverables.

•WBS•Resource Plan•Project Schedule

Determine Budget

Work Package cost estimate

•Project budget estimate•Cost Baseline

Estimate Cost

60

*Knowing What the Project Is:Cost Estimating Techniques

Expert judgment

Analogous estimating

Parametric estimating

Three-point estimating

“Bottom-Up” Estimating

Reserve Analysis (contingency)

61

*Knowing What the Project Is: Analogous Estimating*Use actual cost of a previous similar

project to estimate cost of current project

*Approximate (rule of thumb) estimate

*Made without any detailed engineering data

*Top-down estimating

*Accuracy +- 15%

62

*Knowing What the Project Is:Parametric Modeling*Use project parameter in a mathematical

model to predict project cost

*Made without any detailed engineering data

*Order of magnitude estimate

*May use past experience

*Accuracy +- 35% within the scope of the project

*Example: construction cost per square foot

63

*Knowing What the Project Is:Bottom-Up Estimating

*Cost estimate of WBS work packages rolled up to a project total

*Definitive/detailed estimate

*Prepared from well-defined engineering data, vendor quotes, unit prices, etc.

*Accuracy +- 5%

64

*Knowing What the Project Is:Cost Baseline* Time-phased budget for measuring, monitoring and

controlling overall project cost performance

Cumulative Amount

Time

65

*Knowing What the Project Is:Project Crashing Costs

110,000

120,000

130,000

140,000

150,000

160,000

PR

OG

RA

M C

OST,

$

10 12 14 16 18 20 22 24

PROJECT COMPLETION TIME, WEEKS

CRASH B

CRASH F

CRASH A

CRASH E

NORMAL OPERATIONS

ALL ACTIVITIES CRASHED

66

*Knowing What the Project Is:Current Costing Practice

*Shows monthly cash flow

*Identifies capitalized vs. operating

67

*Knowing What the Project Is:Planning Best Practices Summary

*Determine appropriate project life cycle approach

* Use Scope Statement / WBS to baseline project scope

*Develop a project schedule to baseline project time

*Develop a cost baseline

* Focus is more on “knowing what the project is”

* Partner with line managers to get agreement on scope, time and cost baselines

* Change control process should be in place as soon as possible

* Validate progressive elaboration outputs

68

*PMBOK Guide: Knowledge Area Processes I

69

* PMBOK Guide: Knowledge Area Processes II

70

*Team Work

*Determine cost baseline for a phase of your project (40 minutes)

71

*For Next Meeting

*Critical Path Homework Due (Workbook 6.3.1)

*Short Quiz

Module 02 : Knowing What the Project Is, Part 1. 2.

Documents

project risk

project definition

project approval process

project teams options

similar project q2

similar project q1

certain o product

extreme approach o