project management 101 your cookbook for success
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Project
Management 101
Your Cookbook forVictory
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What we will cover: Definition of a Project
Why have project controls
PM as a profession
Project reporting
Milestone management
Crystal ball - the foreseeable future
The Ultimate CYA Damage control.
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What we will cover in
Project Management 102: Cookbook approach to a project
Resources identification
Timeline constraints
Risk management
Management of managers and vendors MS Project vs. paper tracking
Contract negotiations
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What is a project?
A project is a temporaryendeavor
undertaken to create a unique product or
service. Temporary means that everyproject has a definite beginning and a
definite ending.Unique means that the
product or service is different in somedistinguishing wayfrom all other products
or services. PMBOK2000 edition
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Why Have Project Controls?
92% of all projects fail(Standish Research
Group)
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What Professional Project
Managers do and why Project Management Institute was established
to promote the professional management of
projects using proven methods and procedures. PMI maintains a library of information and
publishes the Guide to the Project Management
Body of Knowledge(PMBOK), the standardtext on project management.
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Great Britain PM Standard
Prince 2. Government required standard
http://www.ogc.gov.uk/prince2/index.html
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Project Triple Constraints
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Project Triple Constraints
Costs
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Project Triple Constraints
Costs Time
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Project Triple Constraints
Costs Time
Statement of Work (SCOPE)
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Project Triple Constraints
Costs Time
Statement of Work (SCOPE)
Quality
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Project Triple Constraints
Costs Time
Statement of Work (SCOPE)
Quality
Customer Satisfaction
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How to practically
approach a projectProjects can be
approached like bakinga cake.
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Chocolate CakeWhat it takes:
Clear objectives
Ingredients
Equipment
Manpower
A Plan
A manager of managers (PM)
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Chocolate Cake
Making a chocolate cake requires all the
elements of a project:
Processes(Whatto do)
Knowledge(Howto do)
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Process groups of a project:
(The Whatto do of a project) Initiation
Planning
Execution
Controlling
Closing
Called the Life Cycle of a project
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Knowledge areas:
(The How to do of a project)
Project ScopeManagement
Project TimeManagement
Project CostManagement
Project QualityManagement
Project HRManagement
Project CommunicationsManagement
Project RiskManagement
Project ProcurementManagement
Project IntegrationManagement
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Work Breakdown Structure
(Planning phase) Def. A deliverable-orientedhierarchical
decomposition of the work to be executed
by the project team to accomplish theproject objectives.It organizes and definesthe total scope of the project. Eachdescending level represents an increasingly
detached definition of the project work. Thedecomposition consists of work packages.(PMBOK2000)
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
Available laborpool
Who will buymaterials
Who will cook?
Who will serve?
Who will cleanup?
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
Available laborpool
Who will buymaterials
Who will cook?
Who will serve?
Who will cleanup?
Procureequipment
Arrange for allmixing bowls,spoons, pans,
measuringdevices,decorating, etc
Schedule oven(s)
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
Available laborpool
Who will buymaterials
Who will cook?
Who will serve?
Who will cleanup?
Procureequipment
Arrange for allmixing bowls,spoons, pans,
measuringdevices,decorating, etc
Schedule oven(s)
Serve and cleanup
Staff to serve
Assign servingplates
Cleanup team
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
Available laborpool
Who will buymaterials
Who will cook?
Who will serve?
Who will cleanup?
Procureequipment
Arrange for allmixing bowls,spoons, pans,
measuringdevices,decorating, etc
Schedule oven(s)
Serve and cleanup
Staff to serve
Assign servingplates
Cleanup team
Purchase
ingredients
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
Available laborpool
Who will buymaterials
Who will cook?
Who will serve?
Who will cleanup?
Procureequipment
Arrange for allmixing bowls,spoons, pans,
measuringdevices,decorating, etc
Schedule oven(s)
Serve and cleanup
Staff to serve
Assign servingplates
Cleanup team
Risk analysis
Plan B?
Purchase
ingredients
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
Available laborpool
Who will buymaterials
Who will cook?
Who will serve?
Who will cleanup?
Procureequipment
Arrange for allmixing bowls,spoons, pans,
measuringdevices,decorating, etc
Schedule oven(s)
Serve and cleanup
Staff to serve
Assign servingplates
Cleanup team
Risk analysis
Plan B?
Purchase
ingredients WorkBreakdownStructure
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Chocolate CakeProject
Establishrequirements
Scope definition
How many toserve?
Date and time?
Place to beserved?
Who will pay forit?
Who hasauthority?Project Sponsor
Available laborpool
Who will buymaterials
Who will cook?
Who will serve?
Who will cleanup?
Procureequipment
Arrange for allmixing bowls,spoons, pans,
measuringdevices,decorating, etc
Schedule oven(s)
Serve and cleanup
Staff to serve
Assign servingplates
Cleanup team
Risk analysis
Plan B?
Purchase
ingredients
Work
Packages
WorkBreakdownStructure
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Work breakdown structure.
Def:Deliverable oriented grouping of project
components that organizes and defines the total
scope of the project.
Locate managers and ask them to estimate their
labor requirements, constraints and risks.
Give them the project scope with budget, schedule
and milestone requirements.
Dont youmake these decisions; let them.
Ch l t C k
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Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls
Schedule oven(s)
Serve and clean
up
Staff to serve
Assign serving
plates
Cleanup team
Risk analysis
Plan B?
Work Breakdown
Structure
Purchase
ingredents
Work Packages
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Event sequencing
Placing work packages in
logical sequential order. Create a critical path
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Project Tracking Software
Microsoft Project
Uses Project Management Institutes
PMBOKas its standard
Excellent tool IFused properly
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Gantt Chart with resources
ID Task Name
1 Chocolate Cake Project2 Est abl is h s cope of work and att ain funding
3 Locate v arious managers
4 Establish requirements
5 Order ingredients
6 Receiv e and store materials
7 Mix, bake and decorate cake
8 Serve and cleanup
9 Project closeout
10 Risk analysis
11 Train staff
customer,Management,project manager
project manager
manager,chief
Purchasing Mgr
Wearhousing
chief,cook 1,cook 2,cook 3,cook 4,cook
200 servers,20 coordi natiors,matre d
project manager
Purchasing Mgr
20 coordinatiors
T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F
Mar 5, '06 Mar 12, '06 Mar 19, '06 Mar 26, '06 Apr 2, '06I D Task Nam e
1 Chocolate Cake Project2 Establish scope of work and attain funding
3 Milestone
4 Locate various managers
5 Establish requirements
6 Order ingredients
7 Receive and store materials
8 milest one
9 Mix, bake and decorate cake
10 Serve and cleanup
11 Project closeout
12 Risk analysis
13 Trai n s taf f
customer,Management,project manager
3/8
project manager
manager,chief
Purchasing Mgr
Warehousing
3/22
chief,cook 1,cook 2,cook 3,cook 4,cook 5,cook 7,co
200 servers,20 coordi natiors,matre d '
project manager
Purchasing Mgr
20 coordinatiors
M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M
5, '06 Mar 12, '06 Mar 19, '06 Mar 26, '06 Apr 2, '06 Apr 9, '
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Pert Chart
Establishscope of workandattain funding
2 5 day s
Fri 3/3/06 Thu 3/9/06
Locate variousmanagers
3 5 day s
Fri 3/10/06 Wed 3/15/06
Establishrequirements
4 3 day s
Thu 3/16/06 Mon 3/20/06
Order ingredients
5 1 day
Tue 3/21/06 Tue 3/21/06
Project closeout
9 1 day
Mon 3/27/06 Tue 3/28/06
Trainstaff
11 1 day
Sun 3/26/06 Sun 3/26/06
Riskanalysis
10 2 day s
Thu 3/16/06 Fri 3/17/06
ChocolateCakeProject
1 0 day s
Thu 2/9/06 Thu 2/9/06
Mix,bakeand decoratecake
7 2 day s
Fri 3/24/06 Sun 3/26/06
Receiveand storematerials
6 2 days
Wed 3/22/06Thu 3/23/06
Serveand cleanup
8 0.33 days
Mon 3/27/06 Mon 3/27/06
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ResourcesID Resource Name Initials Group Max. Units Std. Rate Ov t. Rate Cost/Use Accrue At Base Calendar Code
1 Management M MGT 100% $0.00/hr $0.00/hr $0.00 Prorated Standard
2 customer JM MGT 100% $0.00/hr $0.00/hr $0.00 Prorated Standard
3 project manager JBV MGT 100% $300.00/hr $0.00/hr $0.00 Prorated Standard
4
5 Kitchen staff K Kitchen 100% $0.00/hr $0.00/hr $0.00 Prorated Standard
6 manager m Kitchen 100% $50.00/hr $0.00/hr $0.00 Prorated Standard
7 chief CF Kitchen 100% $40.00/hr $0.00/hr $0.00 Prorated Standard
8 cook 1 c1 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
9 cook 2 c2 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
10 cook 3 c3 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
11 cook 4 c4 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
12 cook 5 c5 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
13 cook 6 c6 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
14 cook 7 c7 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
15 cook 8 c8 Kitchen 100% $20.00/hr $0.00/hr $0.00 Prorated Standard
16
17 Serv ers S servers 100% $0.00/hr $0.00/hr $0.00 Prorated Standard
18 matre d' Matradee servers 100% $40.00/hr $0.00/hr $0.00 Prorated Standard
19 20 coordinatiors coordinators servers 100% $300.00/hr $0.00/hr $0.00 Prorated Standard
20 200 serv ers Servers servers 100% $2,000.00/hr $0.00/hr $0.00 Prorated Standard21 Cleanup Cleanup servers 100% $300.00/hr $0.00/hr $0.00 Prorated Standard
22 Purchasing Mgr P Purchasing 100% $40.00/hr $0.00/hr $0.00 Prorated Standard
23 earhousing Purchasing 100% $200.00/hr $0.00/hr $0.00 Prorated Standard
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Crystal Ball - Looking into the
foreseeable future Earned Valueis a method of forecasting the
projects cost and scheduling outcomes early in
the project
It uses various budgeted amounts (time and
costs) currently spent early in the project and
weighs them against planned amounts for the
same period. Outcomes project budget or schedule variances at
projects end.
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http://www.goldpractices.com/practices/tev/index.php
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Project stakeholders
Definition: Anyone who is positively ornegatively affected by the project.
Could be:A person(s)
A company (vendors)
A department
A social order
A government
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Communications Planning - Your
Ultimate CYA People operate with the information they
are given.
Clear directives produce clear results.
Clear objectives produce desired results.
Every stakeholder needs to know the status
of the project.
PM is thesingle person who sees it all.
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Email
Subject line:
Cake project status: All critical paths are Green
Text:All critical paths are reporting green.
For details: www.vanek.ws/project/cake
For audio: www.vanek.ws/project/cake/audio
Or dial (713)555-1234
For MS Project plan:
www.vanek.ws/project/cake/msproject
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Email
Subject line:
Cake project status: Red. All stakeholders/conference call 3:00PM Today
Text:
Major issue with procurement. Conference calltoday at 3:30PM (800) 555 1234 password
2323. Roll call will be taken. Attendancerequired. Prepare by having risk response foryour area.
For details: www.vanek.ws/project/cake
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Damage control
People cause problems, people fix
problems.
Effective communications is the key.
POP management (point of the problem)
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Summary
Projects are managed Pro-actively
Project Managers have a cookbook which is
the recipe for a successful project.
Planning and Communicating are the most
critical elements.
Questions?
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FAILURE RECORD
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FAILURE RECORD
In the United States, we spend more than $250 billion each year on IT applicationdevelopment of approximately 175,000 projects. The average cost of a development project for alarge company is $2,322,000; for a medium company, $1,331,000; and for a small company,$434,000. A great many of these projects will fail. Software development projects are in chaos,and we can no longer imitate the three monkeys -- hear no failures, see no failures, speak nofailures.
The Standish Group research shows a staggering 31.1% of projects will be canceled beforethey ever get completed. Further results indicate 52.7% of projects will cost 189% of theiroriginal estimates. The cost of these failures and overruns are just the tip of the proverbialiceberg. The lost opportunity costs are not measurable, but could easily be in the trillions ofdollars. One just has to look to the City of Denver to realize the extent of this problem. Thefailure to produce reliable software to handle baggage at the new Denver airport is costing thecity $1.1 million per day.
Based on this research, The Standish Group estimates that in 1995 American companies andgovernment agencies will spend $81 billion for canceled software projects. These sameorganizations will pay an additional $59 billion for software projects that will be completed, butwill exceed their original time estimates. Risk is always a factor when pushing the technologyenvelope, but many of these projects were as mundane as a drivers license database, a newaccounting package, or an order entry system.
On the success side, the average is only 16.2% for software projects that are completed on-time and on-budget. In the larger companies, the news is even worse: only 9% of their projectscome in on-time and on-budget. And, even when these projects are completed, many are no
more than a mere shadow of their original specification requirements. Projects completed by thelargest American companies have only approximately 42% of the originally-proposed features andfunctions. Smaller companies do much better. A total of 78.4% of their software projects will getdeployed with at least 74.2% of their original features and functions.
This data may seem disheartening, and in fact, 48% of the IT executives in our researchsample feel that there are more failures currently than just five years ago. The good news is thatover 50% feel there are fewer or the same number of failures today than there were five and tenyears ago.
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