Project Mng Basics Belarusian State University Final

Project Management BasicsBelarusian State

Economic University 22 March 2010, Minsk

Nejat Murat Erkan, PMPProject Manager

Project Management Basics22 March.2010, Minsk

Nejat Murat Erkan, PMP

Biography of the Presenter Murat Erkan started out his career as a business consultant in USA. In the following

years, he continued his career in pharmaceutical industry. He worked as a Project Leader in Health Marketing at Glaxo Wellcome, Inc. Later on, he worked as a Project Manager in the field of allergy and immunology at Greer Laboratories, Inc. in North Carolina. After spending 7 years in USA, he moved back to Turkey in 2000. He continued his career in telecommunication industry at Telsim (now Vodafone Turkey). In 2005, he started to work at the leading GSM operator in Turkey. Since then, he is working as Senior Project Manager at Turkcell Telecommunication, Inc. and currently, managing multinational/multi vendor Telco/IT projects.Mr. Erkan holds a Bachelor of Science degree (BSChE) from Yildiz Technical University, Istanbul and a Master of Business Administration (MBA) degree from Campbell University in NC, USA. Currently, he is the president of IPYD (Istanbul Project Management Association), he is a member the Project Management Institute and PMI Turkey Chapter and he is the PMI College of Performance Management-Global Advisory Committee representative for Turkey. He gained his PMP certification in September 2005. Currently is the sponsor for Dynamics 2010 which is the largest international project management congress in Turkey (www.ipyd.org) .

Murat Erkan was born in Istanbul in 1970. He fluently speaks Turkish, English, French and basic Spanish. He is married and has a 2,5 year old son.

http://www.ipyd.org/



Agenda

Project General Description

Project Manager Skills Set

Project Management Basic Processes

Project Management Knowledge Areas

Project Management as a New Profession



“A project is a temporary endeavor undertaken to create a unique product, service, or result.” (PMBOK)

What Is Project?



(1) defined start and finish date,

(2) defined objectives,

(3) defined scope,

(4) defined budget,

(5) “one-time event planning”

A Project Should Have:



Benefits of Project Management Meet Stakeholder Expectations

Define and Achieve Project Objectives Scope Quality Cost Time Others (Environmental, Safety, etc.)

Use of a common vocabulary

Develop high performing teams



Developping a new service or a product

Designing an engine, car, train etc…

To build a bridge, house etc…

Sending spaceships to planets

ERP, Billing Systems, Base Stations etc…

Social projects, Unicef, Greenpeace etc..

Project Application Areas



A Successful Project

Quality

Time Cost

Scope



10 Factors For Successful Projects

1. Management Support

2. User Involvement

3. Experienced Project Manager

4. Clear Business Goals

5. Realistic Scope

6. Standardized Project Management Tools

7. Meeting Company’s Basic Needs

8. Methodology

9. Trustworthy Estimations

10. Others



66 % of project could not meet its objectives, overran budget and time

20% of projects which are budgeted above 200K USD are canceled due to lack of risk management plan aligned with project plan

75% of unsuccessful projects fail due to lack of PMO organisation within the company

2007 Gartner’s IT Research



2002 Standish Study

34% successful - on time, within budget, met the specs, and produced useful deliverables

51% mixed success-cost and/or schedule overruns 22% overran the financial budget 42% overran the schedule budget

15% outright failures - no results



2002 Standish Study - Conclusions

Results after seven years (2009):

Successful projects: improved from 15% success to 34% success

But, plenty of room for further improvement, amid tightening schedules and financial budgets



Failure Reasons in Projects



Transitioning to the new PMCONVENTIONAL PM

•Tangible Results

•Authoritarian Management

•Clear Goals and RolesMODERN PM

•Leadership-based

•Time over Cost

•Matrix problemsTHE NEW PM

•Uncertainty

•Complexity

•Progressive Elaboration

Before 1970

21st Century



The Project Management Office

The proliferation of the PMO…

Manage the utilization of shared resources allocated to projects

Identify and develop PM Best Practices and Standards

Coach, Mentor, Train, and provide Oversight to Project Teams

Monitor compliance with established methodology and standards



Program and Portfolio Management Emergence of program and portfolio mgt

Discrete programs and projects Integration of work schedules & resource plans Prioritization of projects and programs

Linking project management to Strategic Plans All projects, programs, and portfolios must support strategic

plans Resources are assigned to projects through portfolios and

programs in accordance with business objectives and priorities

Strategic Plans drive performance measurement



Project Teams Team makeup, skills, and qualifications

Team organization

Effective teamwork

Effective use of project management processes

Effective use of organizational process assets

Adapt to enterprise environmental factors

Empowered to take ownership & make decisions

Manage stakeholder expectations



Product Owner and Clients

Define and communicate expectations

Take ownership for the product

Stay involved during project execution

Respond to requests for information & decisions in timely manner

Voice concerns in a timely manner



What is PMI? Founded by 6 visionaries in 1969

Dedicated to advancing the State-of-the-Art in PM

Early growth in Construction, Defense and Aerospace

Accelerated growth in the 80’s with IT sector’s entry

Certification exams started in 1984

PMBOK introduced in 1985

PMBOK revised in 1996, 2000, 2004 and in 2008; 300+ members contributed

www.pmi.org

http://www.pmi.org/



PMI Now

PMBOK 2008 (Fourth Edition) is the current version since January 2009

PMI statistics (PMI.org): Approximately 340,000 members

Nearly 250 chapters in 70 countries

Approximately 360,000 Certified PMPs



What is PMBOK?

PMBOK = Project Management Body of Knowledge

The PMBOK identifies that subset of the project management body of knowledge generally recognized as good practice that are applicable to most projects most of the time.

“Application area extensions” are additionally accepted knowledge and practices for a category of projects in one application area.



The PMBOK Knowledge Areas Integration Management

Scope Management

Time Management

Cost Management

Quality Management

Human Resources Management

Communications Management

Risk Management

Procurement Management

SCOPE

PROJECT

INTEGRATION

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TIME

COST

CONTR. /PROC.

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HR

RISK



Project Life Cycle Process GroupsINITIATING

PLANNING

EXECUTING

MONITORING &CONTROLLING

CLOSING

Define a new project or phase by obtaining authorization.

Establish scope, refine objectives and develop course of action to attain those objectives.

Complete the work defined in the project management plan to satisfy the specifications.

Track, review and regulate the progress to meet the performance objectives defined in the project management plan.

Finalize all activities to formally complete all project / phase / contractual obligations.



Types of Projects

SCOPE

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HR

RISK

PROJECTS WITH TANGIBLE PRODUCTS Engineering / Construction Weapons Development Industrial Production

PROJECTS WITH INTANGIBLE PRODUCTS Business Process Reengineering Software and System Development Organizational Development Event Management R & D Projects

IN - HOUSE PROJECTS

CONTRACTED PROJECTS



Definition of a Program

SCOPE

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COST

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HR

RISK

A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

Programs may include elements of related work outside the scope of the discrete projects in the program.

Related work

Project

Sub-Program

Project

Project

Project

PROGRAM



Definition of a Portfolio

The projects and programs of the portfolio may not necessarily be interdependent or directly related; they compete for monetary and other corporate resources.

Other related work

Project

Program

Project

Project

Program

PORTFOLIO

A collection of projects, programs and other related work that are grouped together to facilitate effective management of the work to meet strategic business objectives.



Project Phases

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Project Phases are divisions within a project where extra control is needed to effectively manage the completion of a major deliverable.

Project phases can be sequential, overlapping, or interactive.

The five process groups (initiating, planning, executing, monitoring & controlling, closing) are NOT project phases.

The five process groups should be followed for each phase.



Product Life Cycle

TIME

• Effort• Source• Cost

Time Design Development Application Closing

The PRODUCT life cycle adds operational and support costs

to the total cost of owning and operating.

Level



Project and Product Life Cycles

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Corporate or Business Life Cycle

Policy Identify Project Realization Product DisposePlanning Needs Conception In Service

Product Life Cycle

Feasibility Acquisition Operations Dispose

Concept Develop Implement Closeout

Project Life Cycle



About the Project Manager

SCOPE

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RISK

The Project Manager (PM) is the focal point that ties together the various parts of the project, and acts as a center of communication between the various parties and stakeholders involved in a project.

The PM needs to be a patient and mature person who can lead by example and handle

stress caused by setbacks and uncertainty.

Attributes• Knowledge (Know)• Personal (Be)• Performance (Do)



Requisite Project Manager Skills

SCOPE

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Demonstrated ability to:

Lead Manage Change Recruit And Retain Staff Map And Manage Risk Plan Effectively Communicate Listen Empathize Motivate Problem Solver Decision Maker Influence (Esp. Senior Management)



Critical PM Responsibilities

SCOPE

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TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Develop Project Charter

Influence Project Team Selection

Direct The Planning Of The Project

Assure Team Members Understand/Accept Roles

Manage Stakeholder Expectations

Obtain Essential Approvals And Commitments

Coordinate And Direct All Project Activities

Achieving The Goals And Objectives Of The Project

Keep Project Stakeholders Informed

Direct The Handover Of The Product

Ensure Proper Close - Out Of The Project

Arrange For Post-completion Support And Audit



PM Authority

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Direct access to the Project Sponsor and/or Client

Select tools and methods

Obtain contributing resources

Establish project priorities

Resolve internal and external conflicts

Obtain project performance data

Initiate, review, approve project communications

Approve all project commitments

Control contingency assignments

Obtain information from stakeholders

Input performance evaluations of team members



Project Management Roles

SCOPE

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COST

CONTR. /PROC.

COMM.

HR

RISK

Project Sponsor

Project Manager

Project Leader Project LeaderProject Leader



Project Management Roles

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

PROJECT SPONSOR Responsible for feasibility, authorization & chartering Responsible for providing financial resources

PROJECT MANAGER Responsible for the total project from initiation to closing Leader of the Project Team Communication, Planning, Leadership, Diplomacy Serves as a single Point of Contact (POC) for the Client

PROJECT (Technical, Team, Functional) LEADER Leading subject matter experts (SMEs) Half expert, half manager Member of the Project Management Team



Fuctional Organization

General Manager

Fuctional Manager

Fuctional Manager

Fuctional Manager

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Project Manager



Matrix Organization (Weak)

General Manager

Functional Manager

Functional Manager

Functional Manager

Team Member

Team Member

Team Member

Project Manager

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Project Team



Matrix Organization (Strong)

General Manager

Manager of Project

Manager

Functional Manager

Functional Manager

Project Manager

Project Manager

Project Manager

Project Manager

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Project Team



Where Do Projects Come From?

SCOPE

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TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

New Product Development A Legal Requirement Staying Abreast Of Technology The Result Of A Proposal Restructuring

OperationalOrganizational

Staying Ahead Of The Competition

The primary source of projects is a strategic or business plan



Project Selection Criteria

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

RETURN ON INVESTMENT (ROI) Product Life Span Present Value of all Capital Investment Costs Present Value of Cash Flows During Product Life

INTERNAL RATE OF RETURN (IRR) Interest Rate that yields NPV = 0 Targeted ROI for the Enterprise Prime Rate + Riskiness Factor



Project Approval & Prioritization

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Submit Project proposal to the governing board

Board Decision: GO/NO GO

Establish Portfolio and/or Program Prioritization Criteria

Prioritize Projects

Select Projects based on priorities and available resources (e.g. financial, HR, others)



Project Definition Uncertainty

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

How well is the final result defined?

Use Organizational Process Assets to analyze the levels of uncertainty

Results from past projects

Expertise of the Feasibility Study Team

TotalUncertainty

General Uncertainty

SpecificUncertainty

Total Certainty

No Information PartialInformation

Complete Information



Project Life Cycle Process Groups



Level of Activity in Project Life Cycle



Project Initiation

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Select the Project Manager Finalize Project Statement of Work (high level

requirements) Prepare and issue the Project Charter The Project Manager assembles the Project Management

Team Identify Stakeholders Conduct the Kick-Off and Partnering Meetings

INITIATINGSTEPS IN:



Project Charter

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

The Project Charter documents the business needs, current understanding of the customer’s needs, and the new product, service or result that it is intended to satisfy; it is an announcement that legitimizes the Project and the Project Manager.

It enables the Project Manager to solicit and obtain resources and professional support from functional managers in staffing the project team and executing the project.



The Project Planning Process

SCOPE

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TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Ref: PMBOK 4th Ed., Figure 3-8, page 47



The Work Breakdown Structure (WBS)

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team, to accomplish the project objectives and create the required deliverables.

The WBS subdivides the project work into smaller, more detailed and manageable pieces of work.

Work Packages (lowest level component), can be scheduled, cost-estimated, monitored and controlled



The WBS Is Used For:

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Detailing Project Objectives into Scope Documents Assigning Responsibilities Generating Project Schedules Resource Planning Developing Cost Estimates Implementing Scope (Change) Management Risk Management Project Performance Management Team Building



Key Definitions

SCOPE

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TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Rolling wave planning (progressive elaboration) Precedence Diagramming Method (PDM=AON) Dependencies (logical relationships)

Finish-to-Start – FS Finish-to-Finish – FF Start-to-Start – SS Start-to-Finish – SF

Dependency Types: Mandatory Discretionary External

Leads or Lags Schedule Network Diagrams



Network-Based Scheduling

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

CPM by DuPont/Sperry Rand for Maintenance Planning Used when durations can be estimated with confidence

PERT by US Navy/Booz, Allen Hamilton for POLARIS Used when durations can not be based on experience

ADM(Arrow Diagramming Method) = AOA(Activity On Arrow)

PDM(Precedence Diagramming Method) = AON(Activity On Node)



Definitions of the Critical Path

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

The sequence of activities that determines the duration of the project. It is :

The longest path through the project

The path with minimum float (slack)

The path that determines the shortest time in which the project can be completed; the project can not be completed in less time than its critical path.



Work Breakdown Structure

001

100 200 300

110 120

111

112

113

310 320

321

322

Project

Main Tasks

Sub-Tasks

Activities



Project Organisation

Project Manager

FeasibiltyManagement

PrototypeManagement

ManufacturingManagement

Project Management

PlanningManagement

AdvetisementPlanning

Communic.Planning

TrainingPlanning

Stocking Planning

WBSLeve 1

WBS Level 2



Forming A Project Plan What activities needs to be done?

In what order do we do the activities?

How long does it take to complete the activity?

Who will do the activity?

How long will it take to complete all of the activities?



Prioritizing the Activities

Putting the activies in order

Defining the milestones

Planning the precedence

between the activities

Techniques Used

Gantt DiagramCPM

(Critical Path Method)

İş-1

Alt-iş-1

Alt-iş-2

Alt-iş-3

İş-2

Alt-iş-1

Alt-iş-2

Alt-iş-3

Alt-iş-4

1 2 3 4 5 6 7 8 9



Gantt View in MS Project



Estimating the Activities

Expert Opinion

Brain storming with project team

Parametric Estimating

Weighted Average



Network Diagram

A

B

C

D

E

F

AOA (Activity on arrow)

AON (Activity on node)

2

3

4

51

b

c

a

d

e

f



Defining the Crtical Path

A

B

C

D

E

F

3

72

3

4

30 G

2

2

Exercise: Which is CP? And how many

days?



Schedule Compression Techniques

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

CRASHING

For Resource/Effort driven activities

Reducing duration by increasing resources

Obtaining the greatest compression for the least incremental cost

FAST TRACKING

For Time or Process driven activities

Phases or activities normally performed in sequence are performed in parallel (concurrently)



Risk Management

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Risk Management includes the processes of conducting risk management planning, identification, analysis, risk response planning, and monitoring and control on a project.

The objectives of Project Risk Management are to increase the probability and impact of positive events, and to decrease the probability and impacts of negative events in the project.



Risk Definition

SCOPE

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COST

CONTR. /PROC.

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HR

RISK

RISK

EVENTA

…likely impact or amount at stake should it occur.

it has a likelihood / probability

of occurring, and a…

is an uncertain event that, if it occurs, has a positive or negative effect on the

attainment of a project’s objectives;



Project Risk Categories (RBS)

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Financial – Cost of Money

Resource – Availability and Market Prices

Technical or Quality – State of the Art, Emerging

Commercial - Competitor Activities, Market

Corporate – Organizational Structure & Stability, Labor

Legal – Licenses, patents, lawsuits, contracts

Project Management – PM Resources, Planning etc.

Environmental

Others

* RBS: Risk Breakdown Structure



Benefits of Alignment to Business Outcomes

SCOPE

QLTY

TIME

COST

CONTR. /PROC.

COMM.

HR

RISK

Planning Definition Execution Start Up

Ab

ility

to

infl

uen

ce t

he

ou

tco

mes

Full

None

Closure

Co

st o

f M

itig

atio

n S

tep

s

High

Low

Early risk management and mitigation builds better valued projects



ISO 31000 & Project Risk Management Process

QLTY

TIME

PMBOK vs. ISO 31000 risk process – differences lie in the framework & context



QLTY

TIME

www.theirm.org

[email protected]

Education, training and professional development

Enterprise risk management

Sector independent

Academic + practical

2200 members worldwide

Networking and information

http://www.theirm.org/



Response Planning Strategies

QLTY

TIME

Negative Risks (Threats) Avoid Mitigate Transfer Accept

Positive Risks (Opportunities) Exploit Share Enhance Accept



Performance Measurement Baseline

QLTY

TIME

1. Define the work scope

2. Schedule the work

3. Allocate budgets to schedule 100

40

60

80

BUDGET AT COMPLETION

PERFORMANCEMEASUREMENTBASELINE

TIME

$

PROGRAM BUDGET

MANAGEMENT RESERVE



Scope Change Control



Earned Value Management



Performance Measurement

EARNED VALUE DEFINITIONS & FORMULAE:

BCWS = PV = PLANNED VALUE

BCWP = EV = EARNED VALUE

ACWP = AC = ACTUAL COST

CV = COST VARIANCE (EV - AC)

CPI = COST PERFORMANCE INDEX (EV/AC)

SV = SCHEDULE VARIANCE (EV-PV)

SPI = SCHEDULE PERFORMANCE INDEX (EV/PV)



Performance ForecastingDEFINITIONS

BAC = BUDGET AT COMPLETION

ETC = ESTIMATE TO COMPLETE

EAC = ESTIMATE AT COMPLETION

FORECAST

EAC = AC + ETC

EAC = AC + (BAC – EV)

EAC = BAC / CPI

EAC = AC + ((BAC – EV) / (CPI) (SPI))

VAC = VARIANCE AT COMPLETION (BAC – EAC)



Theories on HR

Douglass Mc Gregor: Theory X ve Y

Maslow Hierarchy Theory

Frederic Herzberg Theory

Conflict Solving

Power Types



Quality Planning

Quality Control Point

Quality Control Point

Quality Control Point => Phase Deliverables

=> Final Deliverables

Analysis Phase

Developing Phase

Executing Phase

Closing Phase

=> Phase Deliverables

=> Phase Deliverables



Communication Planning

Progess Meeting Planning

Regular Status Reporting

Deciding project communiting tools/media

Communicating Language (in intern’l projects)



Procurement / Contracting

Contract Types:Fixed Price Contracts Fixed Price + IncentivesTime & Material

Required documents in contracts Project Plan SOW (statement of work) Acceptance Criteia



Procurement / Contracting



Closing the Project

Get approval from the customer in written

Deliver all components of the project

Returnall of the project resources

Finalize the project documentation and archieve them

Close the project accounts and contract

Announce the closing to all stakeholders



Project Management Websites

Project Management Institute (PMI)www.pmi.org

International Project Management Association (IPMA)www.ipma.ch

Association for Project Management (APM)www.apm.org.uk

İstanbul Proje Yönetim Derneği (İPYD)www.ipyd.org

http://www.pmi.org/

http://www.ipma.ch/

http://www.apm.org.uk/

http://www.ipyd.org/



Спасибо =Teşekkür

The Maiden’s Tower



N. Murat ErkanProject Manager

Turkcell & Life:)

[email protected]

+90 532 210 2437 Turkey

25 909 00025 Belarus

Contact Details

• College degree plus 4,500 hrs of PM experience

• 35 hours of contact training in PM

• Computer-based exam with 200 questions; 107 correct answers required to pass

• Test of competency: questions on knowledge and ability to solve problems

• Increasingly becoming a pre-requisite for employment & career growth

PMP CERTIFICATION

BENEFITS OF PMP CERTIFICATION

• A Documented proof of proficiency in Project Management

• Knowledge of Project Management Standards and Guidelines

• Documented commitment to comply with the Project Management Code of Ethics

• Preferred status in job search* and upward mobility: – US and Canada: many of the job postings– In the EU, Japan and Australia: almost 50% of job postings (estimate )– In the rest of the world: beginning to appear in job postings

Project Mng Basics Belarusian State University Final

Documents

minsknejat

precedence

phase deliverablesgt

project management

process groups

project manager

project phases

bac ev