Project Management: More Caught Than Taught

Project Management More Caught than Taught

Edward Uy, PMPContact: [email protected]

February 13, 2009

Edward Uy PMP

CONTENTS

I. Project Management

II. Project Manager

III. Triple Constraint

IV. Project Organizations

V. Processes in Project Management

VI. Final Word

Edward Uy PMP

Project

Definition

Unique and temporary endeavor aimed to produce a product or service within a specified time, scope, cost and quality Unique Temporary Specified Scope Approved Budget Limited Resources Carries Business Risk Achieve Business Benefits

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Project Management

Definition

Application of knowledge, skills, tools and techniques to project activities to meet the project requirements and achieve business benefits.

Also: Use product-based approach to planning Utilizes a Work Breakdown Structure Creates products and services to meet business benefits Early stakeholder involvement Risk and quality management are integrated in the project lifecycle Organizational structure defined

Edward Uy PMP

CONTENTS


II. Project Manager




VI. Final Word

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Project Manager’s Tasks

Influences the organization Leads the project Monitors and reports progress Anticipates and solves problems Negotiates Communicates Holds meetings Ensures stakeholder management is performed

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Project Manager’s Powers Formal

Power based on position

Reward Giving rewards based on performance

Penalty Penalizing team member/s

Expert Being the technical or project management expert

ReferentBased on referring to the authority of someone in a higher position

Best Choices

Worst Choice

Derived

Earned

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Problem Resolution

Problem Solving / Confronting Compromising Smoothing Withdrawal Forcing

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CONTENTS


II. Project Manager




VI. Final Word

Edward Uy PMP

Triple Constraint Cost Scope Time

Cost Scope

Customer Satisfaction

Time

Quality

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A Good Methodology…

Strategic plan Stakeholder management Resource allocation Quality management Risk management Thresholds and metrics

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Project Failures

Lack of quality control Inadequate planning Inadequate definition of roles and responsibilities Inadequate planning and monitoring Inadequate definition of project deliverables

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CONTENTS


II. Project Manager




VI. Final Word

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Project OrganizationsFunctional Organization

Organized by areas of specialization

Advantages Team reports only to one boss Clear career path in areas of

specialization

Project Manager’s Authority

LOW

Disadvantages More emphasis on functional

work and may hurt the project Career path for project

managers may not be clear Project manager’s authority is

low or none

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Project OrganizationsMatrix Organization

Team members report to 2 bosses

Advantages Improved project manager

control over resources Better coordination Better horizontal and vertical

dissemination of information Team members have a home

when projects end


Strong Matrix: HIGH

Weak Matrix: LOW

Balanced Matrix: Power shared

Disadvantages Still have more than one boss

with more potential for conflict More complex to control Resource allocation problems Differing priorities between

functional and project manager

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Project OrganizationsProjectized Organization

Organized by projects

Advantages Loyalty Organized more efficiently More effective communication


HIGH

Disadvantages Members do not have a ‘home’

after the project Duplication of job functions and

facilities

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Project OrganizationsProject Expeditor

Acts as a coordinator and does not have decision-making authority


NONE

Project Coordinator

Has some power for decision-making and reports to a higher-level manager


LOW

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Stakeholder

Interests will be affected either positively or negatively Includes the project sponsor, project manager, project

team, customers, organization, product users, society Holds the “stake”

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Stakeholder Management Identifying who they are Assess their knowledge and skills Ensure their needs are met Keep them involved Get their approval and signoff on project deliverables

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CONTENTS


II. Project Manager




VI. Final Word

Edward Uy PMP

Project Management Processes Initiation Planning Execution Monitoring and Control Closing

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Initiation

Business Case Project Charter Historical Information Project Office

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Initiation

Business case Reasons for setting up the project Used throughout the project to check if project is still

feasible May include a feasibility study

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Initiation

Project Charter Project title Project description Objectives Rationale or business case Product description or deliverables Project manager assigned Project manager’s authority level Sign-off by senior management person

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Initiation

Historical Information Lessons learned from previous projects

‒ WBS‒ Estimates‒ Project plans‒ Risks‒ Performance reports

Used for‒ Estimation‒ Project planning‒ Risk management

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Initiation

Project Office Physical or virtual environment Communication tools Documentation – standards, templates,

methodologies Tools – accounting, planning, monitoring

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Initiation

Project Management Office (PMO) Formal structure that supports project management Can come in different forms:

Provide methodologies, policies, templates, standards

Provide guidance to project managers Provide training on tools Handles review and approval to start new projects Oversees progress

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Initiation

Project Management Office (PMO) To make it work:

Role must be clearly defined Senior management support

* Projects need to adhere to sound project management processes and techniques.

* Projects managers are to keep projects on track or get it on track.

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Planning

Project Management Plan Scope Management Plan Quality Planning Work Breakdown Structure Estimation Risk Management Setting up Controls Plan Purchases and Contracting Kick-Off Meeting

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PlanningProject Management Plan Project Charter Project Management Approach Scope Schedule Responsibility Assignments Resources Cost Management and Budgets Quality Plan Acceptance Plan Risk Management Plan Procurement and Solicitation Plan Change Control Process

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Planning

Scope Management Plan Processes to ensure all the work and only the work

required Controls what is and is not included in the project Looks to prevent additional work or “gold-plating” Putting additional work under change control

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Planning

Quality Conformance to requirements and fitness for use

Quality Planning Identifies the quality standards to be met and how

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Planning

Work Breakdown Structure All the work needed to come up with the project’s end-

product or service Enables the project manager to manage the project in

pieces and improves manageability

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Planning

Estimation Requires resource planning Cost estimating Cost budgeting

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Planning

Estimation Estimating using PERT

Requires three estimates – Optimistic, Pessimistic and Most Likely

PERT Formula:

( P + 4M + O) / 6 Standard Deviation:

( P – O ) / 6 Variance

[( P – O) / 6 ] 2

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Planning

Risk Management Not a one-time but an ongoing event Monitoring of identified risks, risk triggers Identifying new risks

Risk

A discrete occurrence that may affect the project for good or bad

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Planning

Risk Factors Probability of it occurring Impact or amount at stake Expected timing Anticipated frequency

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Planning

Risk Identification Brainstorming Delphi technique Interviewing Strengths, Weaknesses, Opportunities and Threats Analysis

Risk Triggers

Early warnings for each risk so that action can be taken proactively

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Planning

Risk Response Strategies Avoidance Mitigation Acceptance Transference

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Planning

Project Controls Control mechanisms and tools to monitor project

performance Triggers correction and preventive actions to bring the

project back on track

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Planning

Plan Purchases and Plan Contracting Determines what to purchase and when A “make” or “buy” decision is made Includes identifying product or service requirements,

potential sellers RFP is created

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PlanningHold Kick-Off Meeting Meeting involving the project team, vendor, customer, senior

management, project sponsor, functional management Held at the end of the planning stage Covers team member introductions, a review of the roles and

responsibilities, milestones, risks, communication plan and regular meeting schedules

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Execution

Executes the plan Budgeted costs are spent the most Deliverables are created Deliverables are reviewed and

accepted

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Execution

Project manager as chief integrator Authorizing project work Delegation Setting regular checkpoint meetings Managing activities Responding to unexpected events Assigning and re-assigning resources to tasks Taking preventive actions Perform management tasks Hold team meetings Identify changes for change control

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Execution

Team Development Enhance ability of the stakeholders to contribute Enhance team’s ability to function as a team Includes team building activities that should be part of

every project Scheduled at project start

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Execution

Quality Assurance Implement and check overall Looks at where quality can be improved Determines if overall standards can be met from the

quality control measurements Preventive steps to eliminate variances

Quality Control Measure details, done during Control phase Curative steps to eliminate variances

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Execution

Performance Reporting Status reports Trend reports Forecasting reports Variance reports Earned value

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ExecutionDistribute Information Done by the Project Manager as defined in the

communication plan

% of Time a Project Manager spends communicating?

90 %

Most important Project Management skill? Negotiating Communicating Team Building Technical Knowledge

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Execution

Select Sellers Proposals are received and evaluated Sellers are shortlisted Further evaluation is made until a seller is selected

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Execution

Negotiation during Seller Selection To obtain a fair and reasonable price Develop a good relationship with the seller

Items to Negotiate? Responsibilities Authority Applicable law Technical and business management matters Contract financing Price

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Monitoring and Control

Measure progress Identify exceptions Identify trends Identify changes to scope Monitoring risks and issues Quality control Schedule control Updates to project plans Identify correction and preventive actions

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Corrective Actions A very proactive activity Project manager goes out “looking” Need to evaluate its effectiveness

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Managing Changes Influencing the factors that affect change Ensuring that change is beneficial Determining that a change has indeed occurred Looking for alternatives and come up with options,

together with the team Minimizing adverse impacts of the change Inform affected stakeholders

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Handling Requested Changes Clarify the change requirements Assess impact of change with team Create alternatives such as ‘crashing’ or ‘fast tracking’ Meet with your management, sponsor or stakeholders

on the impacts and alternatives Meet with the customer on impacts and alternatives

identified

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Earned Value Analysis Method to measure scope, time and project

performance versus plan

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Monitoring and ControlEarned Value Analysis

Acronym Description

Planned Value PV Estimated value of work planned to be done

Earned Value EV Estimated work that has been completed

Actual Cost AC Actual cost incurred

Budget at Completion

BAC Budget for the total work

Source: Project Management Body of Knowledge (PMBOK) version 1.3

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Acronym Description

Estimate at Completion

EAC Estimated total project cost

Estimate to Complete

ETC Moving forward, how much more will we spend to complete the work?

Variance at Completion

VAC How much over or under budget do we expect at the end of the project


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Acronym Description

Cost Variance CV EV – ACNegative is over budgetPositive is under budget

Schedule Variance SV EV – PVNegative is behind schedulePositive is ahead of schedule

Cost Performance Index

CPI EV / AC

We are getting $ X % for every dollar spent

Schedule Performance Index

SPI EV / PV

We are moving X % of the rate originally planned


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Acronym Description

Estimate at Completion

EAC How much do we expect the project to cost?

BAC / CPI

No variances from BAC, same spending rate

AC + ETCUsed if original estimate is deemed incorrect

AC + BAC - EV

Current variances seen to be abnormal

AC + (BAC – EV) / CPI

Current variances seen to be typical of the future


Edward Uy PMP


Acronym Description

Estimate To Completion

ETC EAC – AC

Estimate cost to be incurred from now onwards to complete the project

Variance at Completion

VAC BAC – EAC

Over budget (negative) or under budget (positive) at the end of the project


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Quality Control Measure details, done during Control phase Curative steps to eliminate variances

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Risk Monitoring and Control Risk responses are executed New risks are identified and tracked Involves choosing alternative strategies Results are monitored

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Contract Administration Ensuring seller’s performance meets contractual

obligations Project manager needs to know the terms and

conditions of the contract and help manage its administration

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Closing

Formalizes deliverable acceptance Close project phases Close the project itself

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Closing

Closure aims to: Check extent of meeting project objectives Assess to what extent all expected products have been

delivered and accepted by the client Prepare a post-mortem review Record lessons learned Archive project files

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Closing

Close Project Done at the end of each project phase and at project

end Finalizing all paperwork Done in case the project was terminated Analyze project success or failure and gather lessons

learned Administrative Closure procedure created Contract Closure procedure created Resources are released back to their functional teams

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Closing

Contract Closure Done when contract ends or terminated, therefore done

only once Involves product verification, updating of contract

records to reflect final results Archiving Contract/s are closed out before the project is closed. Perform procurement audit (lessons learned for the

procurement process)

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Closing

Post Mortem / Lessons Learned Reviews overall project success or failure Evaluates benefit of end-product May be conducted or facilitated by a resource external

to the project Covers what went right, wrong and what should have

been done differently Best done by stakeholders (project manager, project

team, management) and not just the project team

Edward Uy PMP

Final Word

Project Management – “More Caught than Taught” Proactive, proactive, proactive! Looking for “problems” before they happen Learned by training and practice Consider obtaining PMP certification

www.pmi.org

Edward Uy PMP

Contact Details

Please send me your feedback… Email: [email protected]

Project Management: More Caught Than Taught

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