ceu power tools for managing projects. proprietary information of energy 2013 project management...

CEU

Power Tools for Managing Projects

Proprietary Information Of Energy 2013

Project Management

What You Need to KnowSome Basics


Project• Defined as “a temporary endeavor undertaken to

createa unique product, service, or result”

• Characteristics include:– Time limited with a definite beginning and end– End is achieved when one of the following occurs

• Project objectives are met• Project is terminated• Need for the project no longer exists

– Undertaken for a purpose (to create a unique product, service or result)

– Often involves “progressive elaboration”• Because you may not know everything about the product initially, you may have to plan and develop it

in steps• Often called “rolling wave planning”

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Operations• Ongoing endeavor• Produces repetitive output(s)• Supports the business environment

where projects are executed– Interaction with projects is

common

• Does not end when objectives are met

– New objectives are set to support organizational needs

Projects• Temporary endeavor• Produces unique output(s)• Can intersect with operations at

various points of product life cycle

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Operations vs. ProjectsOperations management differs from project management


Product Life Cycle

• Phases are generally sequential, non-overlapping, and determined by organization’s control need

• Last phase is generally the product’s retirement

• Facets of the product life cycle are often run as a project

• Product may have many projects associated with it

Project Life Cycle

• Occur in one or more phases of the product life cycle

• When project output is related to a product, there are many possible relationships

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Product vs. Project Life Cycle Comparison


Project Life Cycle Characteristics

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Project Life Cycle Characteristics

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A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fourth Edition, Figure 2-2

Tony Mayfield

This graphic is VERY important


Product Life Cycle• Product life cycle describes

phases in the life of a product, typically ending in product retirement

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Example of a Product Life Cycle


Projects vs. Operational Work• Projects and operations share characteristics

– Work is performed by individuals– Work is limited by constraints– Work is planned, executed, monitored and controlled– Work is performed to achieve organizational objectives

• Projects and operations differ– Operations are ongoing; produce repetitive products,

services, or results– Projects are temporary endeavors; produce a unique

product, service, or result

• Operations and projects interact– Operations supplies resources to projects– Projects may produce deliverables that support operations

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Types of Organizations and Their Characteristics

Organization Matrix

Project

Characteristics

FunctionalWeak Matrix Balanced

Matrix Strong MatrixProjectized

Project Manager’s Authority

Little or None Limited Low to Moderate Moderate to High High to Almost Total

Resource Availability Little or None Limited Low to Moderate Moderate to High High to Almost Total

Who controls the project budget

Functional Manager

Functional Manager Mixed Project Manager Project Manager

Project Manager’s Role Part-time Part-time Full Time Full Time Full Time

Project Management Administrative Staff

Part-time Part-time Part-time Full Time Full Time


Project Management Processes• Project manager—along with project team—is responsible

for determining: – Which processes are appropriate for the project

– Whether processes should be tailored

– Appropriate degree of rigor for each process

• Must understand that project management is an integrative undertaking– Requires each process to be aligned and connected with the

other processes to facilitate coordination

• Must also understand that processes are iterative—many are repeated during the project

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WBS Task Name Duration Start Finish1 XYZ PROJECT--SYSTEMS INTEGRATION AND SUPPORT 34d Mon 8/5/96 Thu 9/19/96

1.1 Initiate Project 10d Mon 8/5/96 Fri 8/16/96

1.1.1 Validate Customer Requirement 1d Mon 8/5/96 Mon 8/5/96

1.1.2 Design System/Network 10d Mon 8/5/96 Fri 8/16/96

1.1.2.1 Gather Past Systems Data 5d Mon 8/5/96 Fri 8/9/96

1.1.2.2 Prepare Strawman Solution 3d Mon 8/12/96 Wed 8/14/96

1.1.2.3 Finalize System Design 1d Thu 8/15/96 Thu 8/15/96

1.1.2.4 Obtain Customer Sign-off 1d Fri 8/16/96 Fri 8/16/96

1.2 Provide Project Management Services 24d Mon 8/19/96 Thu 9/19/96

1.2.1 Develop Project Plan 4d Mon 8/19/96 Thu 8/22/96

1.2.2 Hold Kickoff Meetings 1d Fri 8/23/96 Fri 8/23/96

1.2.3 Provide Continuing Project Management 11d Thu 9/5/96 Thu 9/19/96

1.2.3.1 Weekly Activity Report 11d Thu 9/5/96 Thu 9/19/96

1.2.3.1.1 Weekly Activity Report 1 1d Thu 9/5/96 Thu 9/5/96

1.2.3.1.2 Weekly Activity Report 2 1d Thu 9/12/96 Thu 9/12/96

This is not a Project Management Plan


Change…It Happens• Manages changes to the project

management plan, project scope statement, and other deliverables

• Assures that only approved changes are incorporated into a revised baseline

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NO PLAN IS EVER EXECUTED AS

WRITTEN;Take Heart!!

YOURS WON’T BE THE FIRST


Processes…They Are Iterative

Plan

Do

Check

ActDemingCycle


2 Kinds of Scope

• Project Scope– Work that needs to be accomplished to deliver a

product, service, or result with the specified features and functions

– Measured against project management plan

• Product Scope – Features and functions that characterize a

product, service, or result– Measured against product requirements

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Decomposition• WBS structure can be created using different methods

– Using phases of the project life cycle as the first level of decomposition; second level consists of the product and project deliverables

– Using major deliverables as the first level of decomposition

– Using subprojects that may be developed by organizations outside the project team (e.g., contracted work); seller develops the supporting contract work breakdown structure

• WBS components represent verifiable products, services, or results

• WBS can be structured as an outline, organizational chart, fishbone diagram, etc.

• Decomposition may not be possible for a deliverable or subproject to be accomplished far into the future

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Time Management


Project Cost Management• Cost management work follows planning

(Develop PM Plan)• Planning process produces a cost management

plan that :– Documents cost management processes, tools and

techniques – Can establish:

• Level of accuracy• Units of measure• Organizational procedures links• Control thresholds• Rules of performance measurement• Reporting formats• Process descriptions

– May be formal or informal, highly detailed or broadly framed, based on project needs

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Bottom-Up Estimating

Top-Down Estimating (Rough Estimate)

Rough Order of Magnitude (ROM) -50% to +100%Completed during initiation (not very accurate)

Preliminary -20% to +30%

Definitive - 15% to +20%

Budget Estimates

Most Accurate

Control -10% to +15%

Conceptual -30% to +50%

Less Accurate

Budget Estimating


Cost Performance Baseline– Authorized, time-phased budget at completion (BAC) used to

measure, monitor, and control over all cost performance on the project

– Summation of the approved budgets by time period– In EVM, referred to as the performance measurement baseline

(PMB)– Often displayed in the form of an S-Curve

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Cost Performance Baseline


Project Quality Management• Recognizes the distinction between “precision” and

“accuracy”– Precision means that values of repeated measures are

clustered and have little scatter– Accuracy means that the measured value is very close

to the true value– Precise measurements are not necessarily accurate– Very accurate measurements are not necessarily precise

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Cost of ConformancePrevention Costs(Build quality product)• Training• Document processes• Equipment• Time to do it right

Appraisal Costs(Assess the quality)• Testing• Destructive testing loss• Inspections

Cost of NonconformanceInternal Failure Costs(Failures funded by the project)• Rework• Scrap

External Failure Costs(Failures found by the customer)• Liabilities• Warranty work• Lost business• Loss of customers!

Cost of Quality

Money spent during the project to avoid failures

Money spent during and after the project because of failures


Project Human Resource Management

• Human resource management includes processes that organize, manage, and lead the project team

• Project team is comprised of individuals assigned/acquired to the roles and responsibilities for completing the project– Type and number of project team members can change

frequently– Project team may also be referred to as the project’s staff– Early involvement of all team members in project planning and

decision making can be beneficial• The earlier, the better

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Project Communications Management• Requires most of the project manager’s time• Covers tasks related to producing, compiling, sending,

storing, distributing, and managing project records/information

• Determines what to communicate, to whom, how often and when to reevaluate the plan

• Has many potential dimensions, including:– Internal and external– Formal and informal– Vertical and horizontal– Official and unofficial– Written and oral – Verbal and non-verbal

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Sender Receiver

Message

Feedback

NoiseSomething that interferes with the message

EncodeModifying a message so that it can be sent

DecodeModifying a message that has been sent so that it can be understood….”if I understand you correctly, you are saying….

MediumResponsible for making the information clear and complete so that the receiver can receive it correctly, and confirming that it is properly understood

Responsible for making sure that the information is received in its entirety and understood correctly

Communication Model

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Memorize


Project Risk Management• Project risk is always in the future• Risk is an uncertain event or condition that, if it occurs, has

an effect on at least one project objective (e.g., scope, schedule, cost, quality)

• Risk may have one or more causes– Requirement– Assumption– Constraint– Condition

• Risk may have one or more impacts/outcomes• Risk impact/outcome may be negative or positive

– Negative event = threat– Positive event = opportunity

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Project Procurement Management

• Procurement Management consists of four processes:1. Plan Procurements2. Conduct Procurements3. Administer Procurements4. Close Procurements

• Processes interact with each other and with processes from other Knowledge Areas– Each process can involve effort from a group or person, based on project

requirements– Each process occurs at least once in every project and occurs in one or more of

the project phases, if the project is divided into phases

• Procurement management processes involve contracts that are legal documents between a buyer and a seller

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Finally, the Project Manager….

• The Project Manager—responsible for everything required to make project a success• Not like typical hierarchical line management role• Project Manager center of everything relating to project• Example, Controlling the contributions of seniors and peers is just as important as

managing the work of the team• Project Manager needs to manage• Project Manager—main focal point for liaison with other departments, projects and

initiatives• Project Manager—main point of contact for aspects requiring co-operation and co-

ordination with external parties—making sure everything is in place to guarantee success

• Project Manager—direct responsibility for activities of all project participants, all project tasks and all deliverables

• Important!.... Project Manager needs to achieve this without direct control over participants

• Project Manager has no power over the leadership, nor the internal and external contributors


Summary

Proper understanding of the tools and knowing how and when to use them is the key to effectively managing your projects.


Earned Value Analysis

ceu power tools for managing projects. proprietary information of energy 2013 project management...

Documents

project product

project management slide

project objectives

project deliverables

project output

product life cycle slide

project management plan

projects projects