Manage Projects Professionally

PROJECT MANAGEMENT TOOLKIT

Important Stuff Setting Standards

What setting you want today? Formal or Informal?

What learning environment would you prefer? Lecture-based or interactive?

Would you like others to talk on the phone during the program?

Would you like to receive rewards for good performance?

Important Stuff

Setting Standards Not a training program This is an EXPERIENCE

– Learning Experience for ALL of us

Be ready to give and receive constructive criticism

Learning Contract

A contract between YOU and YOURSELF

Write ONLY what you want to remember later

Not more than 10 points

“The Only Barrier to Learning the Truth is to Assume You Already Know It” Confucius

Why perform Project Management

Preparation

Understanding the Expectation Game

Project Intro

What is a Project Project Definition : "A temporary endeavor undertaken to create

a unique product, service or result" Features

Temporary: Has a finite duration, project ceases when its objective is achieved. Does not mean short duration. Normally, the product/service will outlive the project

Unique : Doing something that has not been done earlier Progressive Elaboration: "Developing in steps, and continuing in increments".

Development of details progressively Environment

Constantly changing Building and Dismantling Precedes Operations

What is a Project Projects and Operations

Similarities: Performed by people Constrained by limited resources Planned, executed and controlled

Differences: Operations: Ongoing, repetitive, necessary for sustaining the business Projects: Temporary, unique.

Projects and Strategic Planning Projects are used to achieve strategic plans In response to market demands, customer requests, organizational needs,

technological advances, legal requirements.

What is Project Management Application of

Knowledge (e.g. Domain areas - Pharmaceutical, construction, etc.)

Skills (Managing) Tools & Techniques (Software) Project activities (e.g Time

Management, Cost Management, etc.)

The GOAL Project objectives

PM is accomplished through processes Prepare – Plan – Execute - Close

Project work typically involves Identifying requirements Defining objectives Balancing the competing

demands for Scope, Time, Cost, and Quality

Managing stakeholders

Why Project Management? To enhance the probability of project success To focus on objectives - Scope, Time, Cost, Quality & Risk For effective response to rapid changes To manage effective utilization of resources To address stakeholders interests To manage risks effectively Achieve Financial Efficiency

Project Cost Project Time Project Quality

Lessons Learnt Create re-usable data and information for future use

Project Lifecycle No ‘ideal’ project lifecyle It defines

What work to do in each phase

What deliverables to be generated

Who all are involved in each phase

How to manage each phase

Project Lifecycle Common characteristics

Phases are generally sequential

Cost and staffing are low at the start, peak in the middle and are low again

Risk is high at the start and slowly declines

Influence of stakeholders is highest at the start and declines slowly

Project Phases Preparaing

Defines and authorizes the project or a project phase Panning

Defines and refines objectives, and plans the course of actions required to attain the objectives and scope that the project was undertaken to address

Executing Integrates people and other resources to carry out the project management plan for the

project Regularly measures and monitors progress to identify variances from the project

management plan so that corrective action can be taken when necessary to meet project objectives

Closing Formalizes the acceptance of the product, service or result, and brings the project or a

project phase to an orderly end

Project Charter The document that formally authorizes the project Authorizes Project Manager to apply organizational

resources PM should be assigned at the earliest feasible, but

should always be assigned before start of the planning phase, or during charter development

The Initiator or Sponsor is external to the project organization at a level appropriate to funding the project

Project Charter Project Charter should address the following

Requirements of the customers, sponsors and other stakeholders Business needs, project justification, strategic plan Assigned PM and authority (some other resources may also be pre-assigned) Product description/deliverables Summary milestone schedule Stakeholder influences Functional organization and its participation Constraints and assumptions relating to organization, environment and external

factorsSummary budget

Any change in the Project Charter should question the continuance of the project

Well planned is almost done

Planning

Project Activity Planning

The Columbus Disease

He left but he didn’t know where he was going

When he got there he didn’t know where he was

When he got back he didn’t know where he had been

And he did this three times in seven years

Project Planning

Planning is a process – not an outcome Planning should address

Setting the boundaries | Scope statement Activity planning Activity schedule development Cost planning Risk planning

Scope Statement Project scope statement should address the following areas:

Project and product objectives Product/service requirements and characteristics Product acceptance criteria Project boundaries – What is included and what is not Project requirements and deliverables Project constraints Project assumptions Initial project organization Initial defined risks Schedule milestones Initial Work Breakdown Structure

Project Activity Planning Steps to develop project activity schedule

Specify the individual activities (WBS) Determine the sequence of these activities (Activity Table) Draw a sequence diagram (AON or AOA) Estimate the completion time for each activity (Activity

Estimates) Identify the critical path (Using CPM) Create a schedule of activities Update the schedule / diagram as the project progresses

Activity Identification Tool - WBS Deliverable-oriented hierarchical decompositions of project work Creates the required deliverables WBS organizes and defines the total scope of the project Subdivides the project work into smaller, more manageable

pieces of work Has descending levels with increasingly detailed definition of the

project work Lowest level WBS components are called work packages; they

can be scheduled, cost-estimated, monitored and controlled

WBS Characteristics

Manageable (specific authority/responsibility assigned)

Independent (with respect to other elements o( projects)

Integrateable {so that the total package can be seen)

Measurable (each deliverable)

Purpose To simplify a complex project - it is a

summation of elements Planning can be better performed Duration, cost and budget can be

established Time, expenditure, and performance

can be tracked Network and Control Planning can be

initiated Responsibilities and Resources can be

assigned Omission/duplication of tasks can be

avoided Provide a common structure and

coding system

Creating WBS Templates Decomposition

Subdivision of project deliverables into smaller chunks

Goal : create work packages May not be possible for

deliverables that are far into the future

Different deliverables may have different levels

Sample WBS

Sample WBS

Task Sequencing

Identification of logical sequencing among schedule activities

Allows for a smooth flow of project activities

Helps to identify the most efficient way to reach project milestones

Task Sequencing Tool - PDM Precedence Diagram Method Helps to develop project

schedule Identifies dependencies of

different activities to establish the fastest path to task completion

Most useful for complex projects Visual display helps to

communicate activity execution Identifies missing activities Also known as AON

PDM Terms to remember

Events Activity Dependency

Four types of dependencies Finish to Start (most common) Start to Start Finish to Finish Start to Finish (rarely used)

Practice

Building a PDM

List the activities and their

dependencies

Create a start node

Draw arrows from the

start node to the first

activity node

Sequentially arrange

all activities from the

start

Repeat process from

successors for all activities

Double-check for missed

relationships

Task Sequencing Tool - ADM Arrow Diagram Method Another way to create a

schedule network diagram AOA – Activity on Arrow Difference

Activities are identified on arrows Activities connect on nodes to show

dependencies Only has Finish to Start dependency Can also have dummy nodes Less commonly used in project

planning

Sample ADM

Practice

Perform Task Sequencing through PDM ADM

Sample Project Activities

Duration Estimate Tools Parametric Estimate

Determined by multiplying the quantity of work by the productivity rate Construction work – per

square foot Design work – labor hour

per design Drilling – time taken per

cubic inch

Three-point Estimate Helps to consider the

amount of risk in the initial estimate

Considers 3 types of estimates Most likely Optimistic Pessimistic

Schedule Development Outlines the proposed timelines

for the project activities

Is an iterative process

Is typically completed AFTER activity duration estimate

Serves as the baseline against which project progress can be tracked

Schedule Development Tool - CPM Dupont developed the concept in 1957 – to address the shutting of

plants for maintenance Helps to identify the path of activities where any delay WILL cause a

delay in the project timeline For activities outside the Critical Path, there is tolerance for

Late start Late finish Early start

Used to be carried out by hand – now there are software available MS Project Primavera

Schedule activities on the Critical Path are called Critical Activities

More on CPM Calculated by estimating the following 4 parameters for each activity

ES - Earliest start time Earliest time at which the activity can start given that its precedent activities must be completed

first EF - Earliest finish time

Equal to the earliest start time for the activity plus the time required to complete the activity LS - Latest start time

Equal to the latest finish time minus the time required to complete the activity LF - Latest finish time

Latest time at which the activity can be completed without delaying the project

Slack Time Time between its earliest and latest start time Amount of time that you can delay an activity without delaying the project schedule

Critical Path A path in which all activities have ES = LS and EF = LF

Why CPM

CPM helps to identify Different activities that MUST be completed on time for

the project to stay on schedule Which activities can be delayed and their resources can

be reallocated Minimum duration of the project Early start and late start time for each activity in the

schedule

Schedule Compression Tools Schedule Compression

Helps to shorten project schedule WITHOUT changing the project scope Compression techniques

Crashing Cost and Time tradeoffs are analyzed to determine the greatest amount of

project compression Often results in increased cost

Fast Tracking Sequenced activities are performed in parallel E.g. – foundation work is started before detailed architecture drawings are

complete Increases project risks

Project Cost Planning

Why Perform Cost Planning Helps to manage the cost of the

resources needed to complete schedule activities

Projects cash outflows at different stages of the project

Helps to highlight the risk of major cost over-runs

Establishes a baseline to compare with the actual project cost

Helps the sponsors to decide whether to continue or shut the project

Cost Planning Tools

Bottom-up Estimating Starts from Work Packages – from bottom level activities Add up their costs and work upwards Aggregate the costs to reach a final figure Pros and Cons

Upside – is more accurate, cost changes can be recorded easily

Downside – takes more time, requires detailed knowledge

Parametric Estimating (discussed earlier)

Cost Planning Tools Top-down Estimating (Analogous Estimating)

Takes cost inspiration from similar projects, tasks Starts from the top and work downwards Divide the cost figures among different sub-projects or tasks Pros and Cons

Upside – quick and easy to use, good for early-stage planning Downside – often is very inaccurate, can mislead if used at a later stage

Reserve Analysis Contingency factor – what-if scenario Downside – can over-state the cost estimate of schedule activity Remedy – aggregate reserves for a group of activity and assign it to a dummy

task

Inputs for Cost Planning Enterprise Environment Factors Organizational Process Assets Project Scope Statement Work Breakdown Structure WBS Dictionary Project Management Plan Schedule Management Plan Staffing Management Plan Risk Register

Project Risk Planning

What is Project Risk Probability of an uncertain event or condition with a positive or

negative effect on any one of the following project objectives Scope Cost Time Quality

Examples Probability of delay in acquiring a permit from the government for an aspect

of the project Probability of unavailability of adequate resources assigned for a particular

task Probability of increase in resource cost

Understand Risk Types of risks

Known risks – something we can plan for Unknown risks – we are caught off guard

Risks – threats or opportunities? Taking risk against profitable gain

Using Fast Tracking to shorten project timeline Risks that offer opportunities

Lowering of taxes on project resources, brining cost down

Attitude toward risk? Fear and avoid Accept and face

Risk Planning Process

Identify risks

Qualitative Risk

Analysis

Quantitative Risk Analysis

Risk Response Planning

Risk Identification Documenting which risks might affect the project Is an iterative process

PM should decide the frequency of review Leads commonly to qualitative analysis Grouping of risks with respect

How they relate to each other How they impact the project objectives Their probability

Risk Register A collection of all types of risks and their characteristics This is the output of the process

Risk Identification Tools Brainstorming

Gather with different stakeholders in separate groups

Collect the risks they identify Consolidate

Delphi Technique Asks a group of experts

anonymously a set of questions about potential risks

Consolidate data Send it to the experts again and

seek comment Repeat 3-5 times

SWOT Analysis Strengths Weaknesses Opportunities Threats (these are your risks)

Checklist Analysis Historical data Risk Register from another

project Use the data gathered to

prepare a checklist

Sample Risk Register

Risk Impact Scales

Qualitative Risk Analysis Helps to prioritize project

risks Sets you up for the next step

Either quantitative risk analysis Or risk response planning

Main ingredients Risk probability Risk impact Risk tolerance for Scope, Cost,

Quality and Time

Advantages Easy and simple to use Gives a ballpark figure

of risk impact value Disadvantages

Too simple for complex projects

May be inaccurate

Tool | Risk Matrix

Helps you to Visualize the effect of

different risks Gives you the ‘big’

picture Charts risks

X-axis – Risk Impact Y-axis – Risk Probability

High Probability – Low Impact

High Probability – High Impact

Low Probability – Low Impact

Low Probability – High Impact

Risk Matrix

Tool | Probability-Impact Matrix Risk probability

Likelihood that a certain probability will occur Risk impact

Potential effect of a certain risk on any of the four project objectives: scope, time, quality and cost

Assesses both positive as well as negative risk Positive risk – opportunities Negative risk – threats

Risk Factor Result of multiplying risk probability with risk impact Gives the final impact of a certain risk

Risk data quality Ask experts – avoid bias – look at historical data

Sample | Probability-Impact Matrix Project Objective

To establish a new territorial office

Potential Risks Inflation higher than

estimated Project team members

leaving before project completion

Changes in project scope Security situation of the area

Risk Name

Probability

ImpactP * I = Final Risk

Higher Inflation

0.4 0.7 0.28

Higher Turnover (Project Team)

0.1 0.2 0.02

Scope Change

0.2 0.6 0.12

Security Situation

0.5 0.5 0.25

Qualitative Risk Analysis | Output

Qualitative analysis results in Ranking of different risks Grouping of risks List of risks requiring response in the near-term / long-

term List of risks for additional analysis

Risk Response Planning

Process of developing responses to Enhance opportunities Reduce threats

Should address risks based on their Risk Factor or priority

Helps to create some cushion by Allocating extra budget Allocating extra time

Tools | Risk Response Strategies Responding to Threats

Avoid Change the PM plan to avoid a

risk Transfer

Shifting the impact and ownership of risk to third party (insurance policy)

Mitigate Work to reduce the probability

or impact of a risk (test marketing, prototyping)

Proactive Vs Reactive

Responding to Opportunities Exploit

Seek to face the risk head on (assigning better talent to a task)

Share Sharing the ownership with a

third party (JVs) Enhance

Seek to increase the probability or impact of the positive risk

Executing to Perfection

Executing

Communicating What Needs Execution

Project Communication Management

Communications Management

Objective To ensure timely and appropriate generation, collection,

distribution, storage, retrieval and ultimate disposition of project information

Processes for communication management Information distribution Performance reporting Stakeholder communication management

Information Distribution

Broad Strategy Need-to-know basis

Restricts access – Keeps security intact – Maintains strong lines of separation – Keeps the focus of the members intact

Want-to-know basis Opens access – Risks information proliferation – Allows for

involvement – May increase distraction

Information Distribution | Tools Distribution Triggers

Time-based reports / meetings Frequency

Event-based reports / meetings Event significance identification

Style Formal

Standard templates Informal

No specific formats

Methods Isolated meetings Project team meetings E-sharing thru project

management systems E-mails and file sharing systems

Content High-level

Less details Focuses on output / deliverable

Low-level More details Focuses on processes

Performance Reporting

Purpose To continuously assess current project performance

against project estimated baselines related to Scope Quality Time Cost

Performance Reporting | Tool

KPI – Key Performance Indicator Why

“Numbers don’t lie” Helps to measure performance objectively

Remember that KPIs should Connect with either one of the four project objectives (SCTQ) Measure live project performance Should be designed so they result in numbers or % Will measure the performance result against baseline

estimates

Stakeholder Communication Management

Purpose To satisfy the needs of and resolve issues with project

stakeholders Suggested Strategy

“Need to know basis” – well-defined lines of communication separation

Active engagement – answer before they question

Communicating What Needs Execution

Risk Management

Risk Management

Objective Executing the risk plans and reassessing them to meet

project objectives Risk Monitoring and Control

Assess the assumption of earlier identified risks Monitor the progress of risk response execution Identify and analyze new risks

Risk Management | Tool Risk Audit

Examines and documents the risk responses and compares it against the established baselines

Subjective activity – helps to see the trend and reassess the risk responses Variance Analysis

Identifies how much the actual progress has deviated from the baseline estimates

Statistical method Provides an objective analysis

Reserve Analysis Risks will occur – your reserves will get consumed, but how much? Analyze the use of reserves consumption

Quality Management

Quality Management Quality

Degree to which a set of inherent characteristics meet requirements Purpose

To ensure the baseline quality targets are met through Achieved through

Quality Assurance To ensure that processes are being followed as planned and proposed

Quality Control To ensure specific project deliverables meet the quality standard that

was planned and proposed

Quality Assurance Application of planned and systematic activities to ensure that

processes are in line to meet the project objectives Negates “Don’t fix it if it isn’t broken” philosophy

Setup A separate designated team Quality Circles

Members from within the team are assigned and rotated to perform QA

Benefits Checks deviations before they result in bad quality deliverable Paves way for Continuous Improvement (Kaizen?) Helps to develop stronger standards for processes

QA | Tools Quality Audits

Structured review activity to check whether project processes comply with organizational / project policies and procedures

Shouldn’t be announced – best when done without prior notice Conducted by trained in-house personnel

Process Analysis A scheduled activity to systematically review processes in view

of the deliverables and project objectives Feedback from project members

Quality Control Monitoring of specific project deliverables to check whether they

comply with planned / proposed quality standards Setup

An independent team performs quality checks Done through sampling Statistical analysis – to identify patterns and then identify root cause

Benefits Keeps poor quality deliverables from reaching in the hands of the customer or

sponsor Helps to identify poor inputs into activities Arrests trends that could lead to further deterioration in quality of the

deliverables

Change Management

Change Management Purpose

To assess, record and incorporate any changes to the project objectives mainly T-Q-S-C

Is performed from inception to completion Is important as projects seldom get executed exactly

as planned Is often a result of a risk being materialized

Positive risk – positive change Negative risk – negative change

Change Management

Steps to perform control and manage changes Identify the need for a change in the project objectives Review request for changes Assessing the effects of proposed changes to SCTQ Inform and review the proposed changes with

stakeholders If approved, document and update all SCTQ baselines

The Destination

Closing

Closing Project

Closing Project Structured process Ensure that deliverables are handed over to project

sponsors or customers Document and archive project records for future

projects Ensure project deliverables are accepted by sponsors /

customers Perform comparative analysis of initial baseline

estimates and final output

Documentation Purpose

To ensure that all important activities, policies, processes and deliverables are documented for review

Benefit Facilitates project performance analysis Allows for comparative analysis between projected and actual Makes templates available for future projects Some policies and processes can be utilized by other

departments in organizations Provides important data for operations

Thanks