PROJECT MANAGEMENT FOR PROCUREMENT PROFESSIONALS Dianne Hardison March 21, 2013
PROJECT MANAGEMENT FORPROCUREMENT
PROFESSIONALS
Dianne HardisonMarch 21, 2013
DIANNE HARDISON
CEO, The Hardison Group—2003 American Management Assoc. Trainer—1983 Director Domestic Marketing, FCEDA Director Technology Transfer, Virginia CIT Director Business & Government Services, NVCC Director Human Resources, Kaaren Johnson
Assoc. Consultant, DC Government Consultant, US Department Education Coordinator Financial Aid, GMU
COURSE OBJECTIVES & AGENDA
Provide common language and tools to manage Procurement Projects efficiently and effectively.
1. Project Management Overview2. Initiating the Project3. Planning the Work4. Working the Plan5. That’s a Wrap
Resource—Project Management Institute’s PMBOK (Project Management Book of Knowledge)
PROJECT MANAGEMENT OVERVIEWDEFINITIONS
Project—A temporary endeavor undertaken to create a unique product, service or result.1. Temporary—defined timeframe exists; a beginning and
an end.2. Unique—project is different than previous activities.3. Product, service or result is defined.
Program—A group of projects managed together as a unit.
Operations—Day to day implementation of a unit’s activities.
PROJECT MANAGEMENT FOR PROCUREMENT PROFESSIONALS
Project? Program? Operations?
PROJECT FRAMEWORK
Define Plan Execute Manage Close
PROJECT FRAMEWORK—DEFINE
Formally authorize project and define organization-level success criteria.
Stimulus Event Legislative Mandate Requirement
Developed at the “sponsorship-stakeholder” level (above Project Manager).
PROJECT FRAMEWORK--PLAN
Develop detailed project goals, work plan, resource plan, risk management and other plans needed for successful project execution.
Deliverable—Project Plan
PROJECT FRAMEWORK—MANAGE
Project Manager (PM) and Project Management Team (PMT) execute the Plan
Deliverables include status reports, forecasts, etc.
When the plans change, the PMT must revise plan to keep up-to-date
PROJECT FRAMEWORK—CLOSE
Conducting final lessons learned Updating internal processes and procedures to
incorporate new project outcomes Reassigning PMT to new projects Reporting on team performance Archiving actual time for each task Archiving documents Reporting the results Obtaining official closure on project
CLASSICAL ROLES & RESPONSIBILITIESSENIOR MANAGEMENT
Two Roles Determine Project’s viability and define
organizational objectives. Accomplished through Project Charter
After Project is approved and sanctioned, maintain support for Project through life line, ensuring adequate resources.
ROLES & RESPONSIBILITIESSTEERING COMMITTEE*
Determine resource needs Work with higher-level managers to balance
resource demands Select or reject projects Schedule projects to balance resources Review progress of all projects Handle problems: readjust project schedules,
authorize hiring of contractors, etc.
PROJECT MANAGEMENT CHARTER
Executive-level summary of the business case for the project that contains at a minimum, the essential items executive management needs to make a decision on whether to proceed with the project.
One document that does not change Contract between executive management & PM Prevents “scope creep” (in Congress they’re called
“riders”)
PM CHARTER ELEMENTS
Project mission or goal statement Agency objectives Deliverables Scope: Inclusion and Exclusion PM and level of authority Agency resources Approach Risks, assumptions & other issues Initial estimates
CHARTER—MISSION/GOAL STATEMENT
Describes key objectives: Concise Focused Wordsmithed Durable—Capable surviving entire project without
change
CHARTER—AGENCY OBJECTIVES
Lists key goals the agency wants from project: Relate to County/Municipality mission Strategic Alignment
CHARTER—DELIVERABLES
Briefly describes the key deliverables and any characteristics important to senior management and project success
CHARTER—SCOPE
Lists the activities or goals both included and excluded in the project. The purpose of the exclusions is to prevent clients and other stakeholders from assuming that they’re getting something they’re not.
CHARTER—PM & LEVEL OF AUTHORITY
Identifies the PM and what he/she is allowed to do. This may include hiring staff, consultants or vendors; conducting training; or authorizing capital expenditures.
CHARTER—AGENCY RESOURCES
Provides high-level estimates of resources needed by the various departments
Funding Equipment PM PMT Skill set required Records Management ???
CHARTER—APPROACH
Takes an agency-level approach to accomplishing the project. List:
Procedures Methodologies Templates
CHARTER—RISKS, ASSUMPTIONS & OTHER ISSUES
Lists key project-level risks and assumptions associated with the project. Use simple risk/reward model to determine whether to undertake the project.
CHARTER—INITIAL ESTIMATES
Uses appropriate SMEs and qualified PM to provide initial estimates for time and cost. Early estimates might include wide range of values ± 30%.
SAMPLE CHARTER (CORPORATE)
www.AllyBusiness.com
Charter Development Exercise—20 minutes
Develop DRAFT Charter of current, past or hypothetical Project
EXERCISE
Draft a Procurement Project Management Charter
PLANNING THE WORKPROJECT SCOPE DEFINITION
Once Charter has been executed by all required stakeholders, Project Planning begins.
Identify ALL requirements & deliverables Identify needs of ALL stakeholders: purchasing,
HR, finance functional managers, etc. PMT must satisfy all stakeholders while satisfying
goals in Charter on limited budget and schedule GBS—Goals Breakdown Structure: breaking down
high-level goals into smaller goals.(Gershenson, Bender, Syme outline 1, A, 1, 2, 3., etc.
WORK DEFINITION WBS—Work Breakdown Structure Best-known construct in PM—Core of Project PlanProject Title
1. Phase 1A. Deliverable 1
1. work package a2. work package b3. work package c
B. Deliverable 22. Phase 2
SOLICIT PROPOSAL GOODS OR SERVICES
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
STRATEGIC ALIGNMENT
Balanced & comprehensive objectives Specific and durable objectives Hierarchical framework Measurable objectives Stakeholder agreement Environmental & organizational assumptions???
PROJECT LIFE CYCLE REQUIREMENTS
Must establish and USE overriding structure for Project execution.
Initiating Planning Executing Monitoring Controlling Closing
LIFE CYCLES WITH SEQUENTIAL PHASES
Linear succession of phases Connect concept to result Milestone decision points=phase reviews (stage or
review gates, etc.) Progression flows from step to step=waterfall life
cycle. Incorporate into WBS Synchronize life cycle decisions & review
milestones if part of multiple, dependent, projects. Thinking, doing, checking & delivery.
LIFE CYCLE
ReleasePlan Cycle 1 Cycles
2-NProject
Start Decision ClosureProject
End
ASSIGNING TASK OWNERSHIP1. For each activity from WBS, list owner and other
contributors committed to the work.2. Responsibility Analysis Matrix—summarize
activity staffing for WBS activities.3. List unmet skills; fill gaps Knowledge in specific areas Proficiency with tools & equipment Experience with applications & systems Communication & language skills Amount and level of experience in given field
MIND MAP OF RESOURCES NEEDED
RFP
SUCCESSFUL ESTIMATING
Use SMEs to Establish Benchmarks Reference Past Projects/Lessons Learned Factor Assumptions Assess Skill Level
ESTIMATING TIME
O = OptimisticP = PessimisticM = Most Likely (based on experience)E = Estimated Time
E = O + P + (4xM) 6
RISK ASSESSMENT MATRIX
Probability (Extreme Risk)
H
M
L L M HImpact
SUMMARY PLANNING FLOWCHART
ProjectInitiation
RequirementsCollection
ScopeDefinition WBS Activity
Definition
ActivitySequence
ActivityDuration
Estimating
Activity Resource
Estimating
CostEstimating
ScheduleDev.
ResourceLeveling
Cost Budgeting
RiskMgmt
Planning
RiskID
ConstraintMgmt. &
Plan Optimiz.
QualitativeRisk
Analysis
QuantitativeRisk
Analysis
RiskResponsePlanning
ProjectPlan Dev.
Project BaselineSetting
GANTT OR BAR CHART
List all Activities Chunk into Common Groups Determine Sequence Determine Due Dates, Deadlines, etc. Predecessors Determine Personnel Resources Create Chart
GANTT OR BAR CHART
Advantages Disadvantages
Easy to Read & Understand Critical Path not Easy to See
Easy to Identify Task Discrepancies
Difficult to see Impact of Delays
Calendar or Time Based Inhibits Ability to see resources
Simple to Update Hard to Evaluate Effects of Change
GANTT CHART
PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) CHART
Critical Path Method List all Activities on Note Cards Determine Activity Sequences Determine Predecessors Draw Dependencies between Tasks Determine Durations Great Chart
PERT CHART
WORKING THE PLANTEAM DEVELOPMENT
Start-up Workshop—develop trust & interpersonal relationshipsmatrix & virtual teams*
Align project objectives with individual goals Build motivation-WIIFM Employ “influence without authority” Honest, open communications Choose appropriate tools Coach & mentor
WORKING THE PLANTEAM MANAGEMENT
Involve in user-needs assessments Confirm understanding of objectives, vision, etc. Involve in project plan development Build buy-in & commitment Delegate responsibility & ownership Determine project infrastructure to facilitate
productivity & effective information flow
WORKING THE PLANCOMMUNICATING INFORMALLY
MBWA once/week (reinforces trust, builds relationships
One-on-one casual meetings Luncheon updates
WORKING THE PLANCOMMUNICATIONS PLANNING
Review project infrastructure decisions & determine how formal communications will occur
Define internal reporting for entire PM Plan external communications for stakeholders Schedule routine communications
Project definition docs, project reviews, status reports, briefings, logs of project issues, approved changes, project closure reports
Determine plan for archiving project data (PMIS, Project Management Information System)
WORKING THE PLANCONDUCTING PROJECT REVIEWS
At project life cycle or phase transitions At major milestones or checkpoints Following significant Project changes When Project staff members join or leave After reorganizations At the end of the fiscal quarter
WORKING THE PLANPROJECT REVIEW AGENDA ITEMS Recognition of significant accomplishments Reinforcement of team management Review of Project objective Revalidation of project constraints & assumptions New Activity definition & risk identification Revisions to activity duration estimating & activity
sequencing Review of procurement administration Adjustments to Project infrastructure Analysis of project trends & changes Collection of lessons learned & opportunities for
process improvement
WORKING THE PLANCOMMUNICATIONS PLANNING
Refine Communications plan to meet needs of sponsor, stakeholder, team
Online data storage—consider security Access control issues Document hardware needs in communications
plan For virtual teams, install teleconferencing
equipment, if necessary Update plan as needed to improve visibility and
information flow throughout project
WORKING THE PLANPROJECT MONITORING
Project tracking & control processes start with baseline
4 stage cycle– Status Collection, inbound communications– Comparing status data to baseline, conduct project variance
analysis, evaluation of project metrics– Project Control, responding to timing or resource problems
(cost control, schedule control, integrated change control)– Outbound communications, inform stakeholders, sponsor of
what happened on the project (performance reporting, information distribution, project presentations)
WORK THE PLANDOCUMENT, DOCUMENT, DOCUMENT
List of Team Members & Contact Info Project Definition and Objectives Scope Definition WBS Meeting Reports Project Status Reports Issues Log Change Orders
WORK THE PLANDOCUMENT, DOCUMENT, DOCUMENT
Contingency Plans Cost/Budget Info Management Reports Non Disclosure Agreements (NDA)
WORK THE PLANPROJECT NOTEBOOK
Organized, central location Latest info Management gain info easily Creates history
AVOIDING PITFALLS
Lack of information Time Constraints/Time Wasters Reactive vs. Proactive Personnel Changes
– Internal– External
Financial Constraints Over allocation or Unavailability of Critical
Resources Loss Team Member
AVOIDING PITFALLS
Information Hoarding Unproductive Meetings
– Distribute Agenda in Advance 24-48 hours in advance– Timed Agenda– Start & Stop on time– Spinning Wheels
Summarize Key Points Get Consensus Plan Course of Action
– Use Parking Lot– Scribe—Summary or Notes, Not Minutes, 24 hours
Actions, Responsible, Timeline
AVOIDING PITFALLS
– Manage Meetings Round Robin for Comprehension
THAT’S A WRAPGENERATING LESSONS LEARNED
Scheduled Project Closing Meeting Positive results Desirable changes; process improvement;
replacement Prioritization of recommendations Final thoughts from ALL contributors—Round
Robin
THAT’S A WRAPGENERATING LESSONS LEARNED
Prior to Closing Meeting: Collect accurate, up-to-date, Project
documents & make available Brief to Exceptions Provide access to:
– Final Project Reports– Actual and planned schedule information– Project integrated change-control history– Issue-management history & problem
escalations– Project metrics & performance reports