A Framework for Project Management n The Project

A Framework for Project Management n The Project Management Institute Education Department

Welcome to this seminar, A Framework for Project Management. It is designed to provide a basic structure or model that can be helpful in thinking about, understanding, discussing and managing projects. It will prepare you to develop more advanced skills by applying seminar content to your position responsibilities, studying the recommended readings in project management (see Appendix C), and in taking other seminars offered by PMI® and educational organizations who subscribe to PMI standards of project management. During this seminar we ask you to focus on applying these concepts to real-world projects through your active participation in the exercises and discussions based on your unique experiences. We believe this learning experience can help you succeed in today’s environment of constant change, high performance expectations, resource constraints and global challenges. PMI is grateful for the contributions of time, energy, and professional expertise of many PMI members who have reviewed the material and made many suggestions to improve its effectiveness. Good luck on what we hope will be an enjoyable educational experience! Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 2

Your Expectations n What would you like to learn from this experience? n n Solution to a specific problem? Project management concepts/knowledge? Specific skills? Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 3

A Framework for Project Management Units 1. Introduction and Key Concepts 6. Controlling Projects 2. Project Life Cycle Models 7. Closing Projects 3. Initiating Projects 8. Organizational Impacts 4. Planning Projects 9. Overview of Knowledge Areas 5. Executing Projects 10. Role of the Project Manager Additional materials A. Seminar Evaluation Forms B. Exercises C. Resources for Project Management Professional Candidates Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 4

Unit 1: Introduction and Key Concepts Upon completion, you will be able to … n Define key PM concepts n List the reasons why PM is needed n Explain the difference between projects and operations n Identify trends in the PM environment n List project success and failure factors n Identify potential benefits of PM Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 5

Key PM Concepts from the. PMBOK® Guide Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 6

Why Do We Need Project Management? * n Exponential expansion of human knowledge n Global demand for goods and services n Global competition n Above requires the use of teams versus individuals * Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 7

Project and Statement of Work (SOW) n A project is “a temporary endeavor undertaken to create a unique product or service. ” n A SOW is a narrative description of products or services to be supplied under contract. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 8

Project Management “The application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. ” Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 9

PM Environment Discussion Question n What are some trends that impact the environment in which projects are managed today? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 10

Accelerating Trends n Corporate globalization n Massive mergers and reorganizations n Flatter organizations n Short-term results driven Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 11

Accelerating Trends (continued) n Team environment n Contract PM and outsourcing n Primacy of interpersonal skills n Multinational projects n Importance of cultural differences n Dependence on technology Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 12

A Balancing Act Schedule requirements cost The Project Risk Customer Expectation Risk Business Objective Source: William Gendron, presentation at 1998 PMI Global Forum Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 13

A Balanced Project Time Cost Scope Quality Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 14

Expectation and Objective Congruency Client/Customer Expectations Low High Low OK Customer wants more than the organization intends to provide. High Business needs more from the project than the customer. OK Business Objectives Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 15

Contrast Projects and Operations Discussion Question n How are “projects” different from “operations”? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 16

Contrast Projects and Operations Projects Operations n Create own charter, organization, and goals n Semi-permanent charter, organization, and goals n Catalyst for change n Maintains status quo n Unique product or service n Standard product or service n Heterogeneous teams n Homogeneous teams n Start and end date n Ongoing Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 17

Exercise 1 -1 PM Pitfalls and Pluses n Looking back on projects with which you were associated, what were the top three factors that caused serious problems? n That created a perception of success? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 18

Common Pitfalls n Unclear objectives n Lack of senior management support n Lack of effective project integration n Inadequate funding n Change in business priorities n Original assumptions invalid n Ineffective team n Lack of effective communication processes n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 19

Factors Affecting Project Success Source: n Coordination and relations n Adequacy of structure and control n Project uniqueness, importance, and public exposure n Success criteria salience and consensus n Competitive and budgetary pressure n Initial over-optimism, conceptual difficulty n Internal capabilities buildup NASA study, “Determination of Project Success, ” 1974, by David C. Murphy, Bruce N. Baker, and Dalmar Fisher Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 20

Potential Benefits of PM for the Organization n Improved control n Improved project support opportunities n Improved performance Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 21

Potential Benefits of PM for You n Recognition of PM as a profession n Future source of company leaders n High visibility of project results n Growth opportunities n Build your reputation and network n Portable skills and experience Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 22

Integration Management Cost Time Integration Quality Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 23

Summary n Defined key PM concepts n Described why PM is needed n Explained difference between projects and operations n Identified trends in the PM environment n Discussed project success and failure factors n Identified potential benefits of PM Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 24

Unit 2: Project Life Cycle Models Upon completion, you will be able to … n List the purpose and types of project life cycle models n Distinguish between project and product life cycle n Define the role of phase reviews in PM n Apply a model to a hypothetical and a real project Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 25

Key Concepts n Project phase: “A collection of logically related project activities usually culminating in the completion of a major deliverable. ” n Project life cycle: “Collectively the project phases are known as the project life cycle. ” n Product life cycle: The natural grouping of ideas, decisions, and actions into product phases, from product conception to operations to product phase-out. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 26

Generic Cost and Staffing Life Cycle Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 27

Project Life Cycle Example Phases Concept and Proposal Development Implementation Verification Termination Initial Phase Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Intermediate Phases Final Phase 28

Pharmaceutical Project Life Cycle Model Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 29

Spiral Methodology Evaluate Identify Deploy Operations and Production Support Test Unit Requirements Evaluation Subsystem Requirements System Requirements Risk Analysis Business Requirements Proof of Conceptual Concept Design First Build Second Build Final Build Construct Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Logical Design Physical Design Final Design 30

Importance of Phase Reviews Requirements Review Proposal Preparation General Design Review Requirements Analysis Detailed Design Review Unit Test General Design Detailed Design Code and Debug Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 31

Phase Initiation Example Detailed Design Phase n Ensure correctness and completeness of previous phase, e. g. , general design phase n Assess all aspects of requirements, design approach, and deliverables n Identify and work off items n Determine contractor rewards/payment for closing phase n Conduct a readiness review to begin next phase, e. g. , detailed design phase n Resource estimates and availability n Design maturity n Project plan review and update n Secure stakeholder approval to proceed Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 32

Exercise 2 -1 Project Life Cycle Model n Divide a current project on which you are working into phases, name them, and write a brief statement of purpose for each phase Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 33

Summary n Explained the concept and purpose of project life cycles n Defined the role of phase reviews in PM n Described life cycle models n Differentiated project life cycle and product life cycle n Applied a model to hypothetical and real projects Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 34

Unit 3: Initiating Projects Upon completion, you will be able to … n List the main functions of each PM process group n Describe the purpose of the initiation process n Identify its inputs and outputs, tools and techniques n Develop a sample project charter n Give an example of how process groups can apply to the project as a whole or to a project phase Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 35

Process Definition n “A series of actions people take to bring about a desired result. ” n Types of processes n Project management processes n Product-oriented processes n Business-oriented processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 36

Process Groups Initiating Processes Planning Processes Executing Processes Controlling Processes Closing Processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 37

Process Interactions n Inputs n Tools and techniques n Outputs n Taxonomy Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 38

Process Group Overview Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 39

Purpose of Initiation Process 1. To commit the organization to a project or phase 2. To set the overall solution direction 3. To define top-level project objectives 4. To secure the necessary approvals and resources 5. Validate alignment with strategic objectives 6. To assign a project manager Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 40

Initiating Core Process—Initiation Input 1. Product description 2. Strategic plan 3. Project selection criteria 4. Historical information Process “Initiation is the process of formally recognizing that a new project exists or that an existing project should continue into its next phase. ” Output 1. Project charter 2. Project manager identified/ assigned 3. Constraints 4. Assumptions Tools and Techniques 1. Project selection methods 2. Expert judgment Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 41

Project Charter “A document issued by senior management that provides the project manager with the authority to apply organizational resources to project activities. ” Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 42

Project Charter Content n Business need n Project objectives n Project deliverables n Assumptions n Constraints n Key staff n Written authorization Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 43

Exercise 3 -1 Project Charter n Using the handout, complete the sample project charter n Assume you are the project manager n As an example, choose an anticipated major project assignment Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 44

Sample Initiating Activities n Negotiate, write, and refine the project charter n Confirm how the project links to the business need n Identify management responsibilities n Identify geographic locations involved n Test top-level objectives versus strategic business plans n Make strategic procurement decisions, e. g. , make, buy, or identify qualified vendors Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 45

Key Outputs of Initiation Process n Project charter n Project manager identified/assigned n Other key positions identified/assigned n Constraints identified n Assumptions identified Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 46

Unit 4: Planning Projects Upon completion, you will be able to … n Describe the purposes of the planning processes n Identify the inputs and outputs of core planning processes n Describe the function and develop sample planning deliverables such as a scope statement, WBS, and milestone chart n List the major tools and techniques used in the core planning processes n Identify the planning facilitating processes and their functions Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 47

Planning Process Group Initiating Processes Planning Processes Executing Processes Controlling Processes Closing Processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 48

Purpose of Planning Processes To develop a project plan that: n Facilitates later accomplishment* n Ensures project wide integration n Monitors change effectively n Provides decision support information to stakeholders n Can be updated by iterative planning activities * Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 49

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 50

Core Planning Processes Scope Planning Input 1. Product description 2. Project charter 3. Constraints 4. Assumptions Process "… the process of developing a written scope statement as the basis for future project decisions including, in particular, the criteria used to determine if the project or phase has been completed successfully. ” Output 1. Scope statement 2. Supporting detail 3. Scope management plan Tools and Techniques 1. Product analysis 2. Cost/Benefit analysis 3. Alternative identification 4. Expert judgment Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 51

Project Scope Statement Purpose n To provide a general description of the sum of the products and services to be provided by the project n To develop a common understanding of project scope among stakeholders n May make explicit some exclusions that, based on the audience, would be assumed to be part of the project Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 52

Exercise 4 -1 Scope Statement n Using the handout in your manual, develop a project scope statement based on the project charter developed in the initiating process exercise Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 53

Core Planning Processes Scope Definition Input 1. Scope statement 2. Constraints 3. Assumptions 4. Other planning outputs 5. Historical information Process “… subdividing the major project deliverables (as identified in the scope statement) into smaller more manageable components …” Output 1. Work breakdown structure Tools and Techniques 1. Work breakdown structure templates 2. Decomposition Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 54

Work Breakdown Structure (WBS) n “A deliverable oriented grouping of project elements which organizes and defines the total scope of the project. n Each descending level represents an increasingly detailed definition of a project component. n Project components may be products or services. ” Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 55

WBS Purpose n To define: n Solution strategy or general approach n Implementation tactics n To support more accurate estimates of project duration and cost than can be made at the project level n To provide a basis for estimating project resources: n Departmental or subcontractor support n Vendors and their products n Services n Any other identifiable resource Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 56

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 57

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 58

Validate Your WBS n All major elements been identified at top level? n Decomposed into measurable components? n Lower level(s) items necessary? All inclusive? n Would stakeholders agree WBS is satisfactory? n Can elements be scheduled, budgeted, and assigned to a unit that will accept responsibility? n Too much or too little visibility and control ? n Can status reports be generated at all levels? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 59

Using the WBS to Estimate Cost n Project manager establishes work requirements by defining the n What—“shalls” and “wills” n When—sequence n Why—dependencies n Functional managers estimate cost by determining n How—equipment and methods n Who—type and level of expertise n Where—location, department Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 60

Exercise 4 -2 Work Breakdown Structure n Using “Post-it® Notes, ” construct a WBS for your project or subproject n Apply the WBS validation criteria n Discuss any learning or insights with a classmate, including any learning from applying the WBS test criteria Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 61

Core Planning Processes Activity Definition Input 1. WBS 2. Scope statement 3. Historical information 4. Constraints 5. Assumptions Process “Identifying the specific activities that must be performed to produce the various project deliverables. ” Output 1. Activity list 2. Supporting detail 3. WBS updates Tools and Techniques 1. Decomposition 2. Templates Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 62

Core Planning Processes Activity Sequencing Input 1. Activity list 2. Product description 3. External dependencies 4. Mandatory dependencies 5. Discretionary dependencies 6. Constraints 7. Assumptions Process “… identifying and documenting interactivity dependencies. ” Output 1. Project network 2. Activity list updates Tools and Techniques 1. Precedence diagramming method 2. Arrow diagramming method 3. Conditional diagramming method 4. Network templates Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 63

Precedence Diagramming Method Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 64

Core Planning Processes Activity Duration Estimating Input 1. Activity lists 2. Constraints 3. Assumptions 4. Resource requirements 5. Resource capabilities 6. Resource information Process “… assessing the number of work periods likely to be needed to complete each identified activity. ” Output 1. Activity duration 2. Basis of estimates 3. Activity list updates Tools and Techniques 1. Expert judgment 2. Analogous estimating 3. Simulation Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 65

Schedule Purpose n Converts the project plan to an operating plan that is the basic tool for controlling project activities Benefits of a realistic schedule? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 66

Benefits of a Realistic Schedule n Framework for managing critical project activities n Determines planned start and completion dates n Identifies activity and task precedence relationships n Aids project team in defining critical communication content n Specifies times when staff must be available n No surprises n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 67

Key Scheduling Definitions n Network techniques n Path n Node n Arc n Event n Activity Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 68

Scheduling Techniques Activity on Arrow Example Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 69

Network Techniques AOA Example n Activities specified on arrows n Also called arrow diagramming method (ADM) n Nodes show relationship Result 1 Result 2 Result 3 Set up Work Finish Activity 1 Activity 2 Activity 3 Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 70

Scheduling Techniques Activity on Node n Activity on node network format n Arrows show precedence relationships n Nodes show activities n 3 types of precedence relationships n Activity on node 1—successor but no predecessor n Activity on node 2—predecessor and successor n Activity on node 3—predecessor but no successor Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 71

Precedence Relationships Finish to Start The “from” activity Task A must finish before the “to” activity Task B can start Task A Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Task B 72

Precedence Relationships Start to Start Task A Tasks A and B may start at the same time, but the successor (B) cannot start until the predecessor (A) begins. Task B The direction of the arrow defines which task is the predecessor and which is the successor. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 73

Precedence Relationships Finish to Finish Task A Tasks A and B may end at the same time, but the successor (B) cannot finish until the predecessor (A) finishes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Task B 74

Precedence Relationships Start to Finish Task A must start before Task B can finish (seldom used). Task B Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 75

PDM Example Diverging-Converging Activities Diverging Activities Converging Activities Single predecessor with multiple successors Multiple predecessors with single successor Paint Ceiling Prep Paint Walls (2 nd coat) Clean-up Paint Trim Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 76

Forward Pass Definitions n Early Start Date (ES) n Earliest possible point in time an activity can start, based on the network logic and any schedule constraints n Duration (DU) n Number of work periods, excluding holidays or other nonworking periods, required to complete the activity; expressed as workdays or workweeks n Early Finish Date (EF) n Earliest possible time the activity can finish n Forward Pass n Starting at the beginning (left) of the network develop early start and early finish dates for each task, progressing to end (right-most box) of the network Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 77

Forward Pass Calculation Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 78

Task Identification Forward Pass Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 79

Backward Pass Definitions n n Late Start Date (LS) n Latest point in time that an activity may begin without delaying that activity’s successor n If the activity is on the critical path, the project end date will be affected Float or Slack n Latest point in time a task may be delayed from its earliest start date without delaying the project finish date Late Finish (LF) n Latest point in time a task may be completed without delaying that activity’s successor n If the activity is on the critical path, the project end date will be affected Backward Pass n Calculate start and late finish dates by starting at project completion, using finish times and working backwards Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 80

Backward Pass Calculation Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 81

Task Identification Forward and Backward Passes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 82

Scheduling Techniques Bar/Gantt Chart Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 83

Core Planning Processes Schedule Development Input 1. Project network diagram 2. Activity duration estimates 3. Resource requirements 4. Resource pool description 5. Calendars 6. Constraints 7. Assumptions 8. Leads and lags Process “… determining start and finish dates for project activities. ” Output 1. 2. 3. 4. Project schedule Supporting detail Schedule management plan Resource requirements updates Tools and Techniques 1. 2. 3. 4. 5. Mathematical analysis Duration compression Simulation Resource leveling heuristics Project management software Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 84

Key Scheduling Concepts n Master schedule n Crashing n Hanger n Workaround n Schedule variance Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 85

Milestone Chart Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 86

Exercise 4 -3 Project Milestones n Identify the major milestones in your project Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 87

Core Planning Processes Resource Planning Input 1. WBS 2. Historical information 3. Scope statement 4. Resource pool description 5. Organizational policies Process “… determining what physical resources (people, equipment, materials) and what quantities of each should be used to perform project activities. ” Output 1. Resource requirements Tools and Techniques 1. Expert judgment 2. Alternatives identification Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 88

Core Planning Processes Cost Estimating Input 1. WBS 2. Resource requirements 3. Resource rates 4. Activity duration estimates 5. Historical information 6. Chart of accounts Process “… developing an approximation (estimate of the costs of the resources needed to complete project activities. ” Output 1. Cost estimates 2. Supporting detail 3. Cost management plan Tools and Techniques 1. Analogous estimating 2. Parametric modeling 3. Bottom-up estimating 4. Computerized tools Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 89

Core Planning Processes Cost Budgeting Input 1. Cost estimates 2. WBS 3. Project schedule Process “… allocating the overall cost estimates to individual work items in order to establish a cost baseline for measuring project performance. ” Output 1. Cost baseline Tools and Techniques 1. Analogous estimating 2. Parametric modeling 3. Bottom-up estimating 4. Computerized tools Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 90

Core Planning Processes Project Plan Development Input 1. Other planning outputs 2. Historical information 3. Organizational policies 4. Constraints 5. Assumptions Process “… taking the results of other planning processes and putting them into a consistent, coherent document. ” Output 1. Project plan 2. Supporting detail Tools and Techniques 1. Project planning methodology 2. Stakeholder’s skills and knowledge 3. Project management information systems Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 91

Facilitating Planning Processes n Quality planning n Communications planning n Organizational planning n Procurement planning n Solicitation planning n Staff acquisition n Risk identification n Risk quantification n Risk response development Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 92

Sample Planning Activities n Subdividing deliverables into manageable components n Allocating overall cost estimate to individual work items n Identifying the specific activities people must perform to produce the project deliverables n Identifying the sequence and duration of activities n Determining project roles and responsibilities n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 93

Key Outputs of Planning Processes The Project Plan n Schedules n Cost management plan n Budgets n Cost baseline n Risk management plan n n Quality plan n Work breakdown structure n Staffing plan n Plan updates n Procurement plan n Schedule management plan Resource requirements n Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Scope statement n Communications plan 94

Unit 5: Executing Projects Upon completion, you will be able to … n Describe the purposes of the executing processes n Identify the inputs and outputs of its core processes n List the major tools and techniques Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 95

Executing Processes Initiating Processes Planning Processes Executing Processes Controlling Processes Closing Processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 96

Purpose n To coordinate, integrate, and manage all resources Why? n in order to achieve the project objectives How? n by carrying out the letter and intent of the project plan While n responding to change and mitigating risks Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 97

Overview Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 98

Core Execution Process Project Plan Execution Input 1. Project plan 2. Supporting detail 3. Organizational policies 4. Corrective action Process “… the primary process for carrying out the project plan. ” Output 1. Work results 2. Change requests Tools and Techniques 1. 2. 3. 4. 5. General management skills Product skills and knowledge Work authorization system Status review meetings Project management information system 6. Organizational procedures Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 99

Facilitating Execution Processes n Information distribution n Team development n Quality assurance n Scope verification n Solicitation n Source selection n Contract administration Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 100

Sample Executing Activities n Managing work results and requests for change n Using tools and techniques in project plan implementation n Building effective relationships with vendors and project team members n Choosing from potential sellers n Distributing status information in time for stakeholders to act n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 101

Unit 6: Controlling Projects Upon completion, you will be able to … n Describe the purposes of the controlling processes n Identify the inputs and outputs of the core controlling processes n List and define the major tools and techniques Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 102

Controlling Processes Initiating Processes Planning Processes Executing Processes Controlling Processes Closing Processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 103

Purpose To keep the project on track in order to achieve its objectives as outlined in the project plan by: n Monitoring and reporting variances n Controlling scope changes n Controlling schedule changes n Controlling costs n Controlling quality n Responding to risks Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 104

Overview Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 105

Core Controlling Processes Performance Reporting Input 1. Project plan 2. Work results 3. Other project records Process “… collecting and disseminating performance information. This includes status reporting, progress measurements, and forecasting. ” Output 1. Performance reports 2. Change requests Tools and Techniques 1. 2. 3. 4. 5. Performance reviews Variance analysis Trend analysis Earned value analysis Information distribution systems Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 106

Core Controlling Processes Overall Change Control Input 1. Project plan 2. Performance reports 3. Change requests Process “Overall change control is concerned with: (a) influencing the factors which create change to ensure that changes are beneficial, (b) determining that a change has occurred, and (c) managing the actual change when and as they occur. ” Output 1. Project plan updates 2. Corrective action 3. Lessons learned Tools and Techniques 1. 2. 3. 4. 5. Change control system Configuration management Performance measurement Additional planning Project management information systems Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 107

Facilitating Controlling Processes n Scope change control n Quality control n Schedule control n Cost control n Risk response control Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 108

Facilitating Controlling Processes Risk Response Control Input 1. Risk management plan 2. Actual risk events 3. Additional risk identification Process “… involves executing the Risk Management Plan in order to respond to risk events over the course of the project. ” Output 1. Corrective action 2. Updates to the risk management plan Tools and Techniques 1. Workarounds 2. Additional risk response development Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 109

Key Cost Concept Earned Value n A method for measuring project performance n The budgeted cost of work performed for an activity or group of activities n Compares the planned amount of work with the accomplished amount of work to determine if cost and scheduled performance is as planned Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 110

Controlling Activities n Reporting status versus plan and forecasting n Responding to changes in risk n Completing and settling the contract, including resolving of any open items n Identifying and reporting schedule slips n Determining whether schedule updates require plan modifications n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 111

Unit 7: Closing Projects Upon completion, you will be able to … n Describe the purposes of closing processes n Identify the inputs and outputs of the core processes n List the major tools and techniques Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 112

Closing Processes Initiating Processes Planning Processes Executing Processes Controlling Processes Closing Processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 113

Purpose Formalizing acceptance of the project and bringing it to an orderly end by: n Closing the contract n Achieving administrative closure Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 114

Overview Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 115

Core Closing Processes Contract Close-out Input 1. Contract documentation Process “… involves both product verification (was all work completed correctly and satisfactorily) and administrative close-out (updating of records to reflect final results and archiving of such information for future use. ” Output 1. Contract file 2. Formal acceptance and closure Tools and Techniques 1. Procurement audits Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 116

Core Closing Process Administrative Closure Input 1. Performance measurement documentation 2. Documentation of the product of the project 3. Other project records Process “… verifying and documenting project results to formalize acceptance of the product by the sponsor, client or customer. ” Output 1. Project archives 2. Formal acceptance 3. Lessons learned Tools and Techniques 1. Performance reporting tools and techniques Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 117

Sample Closing Activities n Ensuring a record of lessons learned is developed, documented, and made available for future projects n Verifying acceptance of products or services n Collecting all required project records n Determining if final products meet specifications n Assessing the quality, correctness, and completeness of all formal project acceptance documents n Give performance appraisals and assist in the planned transfer of personnel to other projects or positions n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 118

Communication Flow Authorization Start Initiating Processes Planning Processes Plans and Updates Changes Controlling Processes Status Guidance Executing Processes Direction Closing Processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Operations 119

Exercise 7 -1 Process Group Allocation n Allocate the processes and activities to the correct process group Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 120

Questions/Opinions on Processes n Most important processes? n Least important? n Missing? n Other questions? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 121

Units 3– 7 Summary n Identified the role of each process group n Identified the inputs and outputs of core processes n Listed the major tools and techniques used in core processes of each process group n Described facilitating processes n Recognized and allocated processes and activities to their correct process group Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 122

Unit 8: Organizational Impacts Upon completion, you will be able to … n Describe how different organizational approaches can impact the process and effectiveness of project management Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 123

HR Requirements n PM position descriptions n Reward system congruence n Career paths n Competency models n Training and development opportunities n Certification Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 124

Functional Organization Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 125

Functional Organization Discussion Question n In your opinion, what advantages and potential disadvantage does this type of organizational structure foster? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 126

Functional Organization Potential Advantages n Clear reporting relationships n Highly specialized expertise n Homogeneous group n Drive for technical excellence Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 127

Functional Organization Potential Issues n Project boundaries limited to discipline n Barrier to customer influence and satisfaction n Employee development opportunities limited n Project manager dependent on personal influence n Hierarchical decision and communication processes n Overwork technical issues versus build to standard n Fosters part-time roles Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 128

Strong Matrix Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 129

Projectized Organization Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 130

Projectized Organization Discussion Question n Based on your experience, what potential advantages and disadvantage does this type of organizational approach foster? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 131

Project-Based Organization Potential Advantages n Strong project manager role n Full-time administrative staff n Clear accountability n Fosters co-location n Improved focus n Cost and performance tracking n Decision-making n Customer relationships n Common processes Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 132

Project-Based Organization Potential Issues n Lessening of employee’s “profession” identity n Reduced focus on technical competence n Leadership by the nontechnically skilled n Focus on administrative work versus technical n Devaluing of functional managers n Process versus deliverable emphasis Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 133

Structure Influence on Projects Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 134

Exercise 8 -1 Organizational Impacts n If you were given authority for a day and tasked to improve project management in your organization, what changes would you make: n To the organization structure and delegation of responsibilities? n To your role (no major promotions, please)? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 135

Summary Reviewed how organizational approaches can impact the effectiveness of project management n n n Functional organization Matrix organization Project-based organization Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 136

Unit 9: Overview of Knowledge Areas Upon completion, you will be able to … n Identify and describe the nine knowledge areas n Identify your current development needs and strengths in the processes in each knowledge area Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 137

Overview of Knowledge Areas Scope Integration Cost Time Human Resources Communications Risk Procurement Quality Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 138

Project Integration Management “A subset of project management that includes the processes required to ensure that the various elements of the project are properly coordinated. ” n Project plan development n Project plan execution n Overall change control Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 139

The Integration Challenge Software Product Development Example Overlapped phases can yield cost and schedule benefits but add to the integration challenge Proposal Request Proposal Phase Requirements Analysis Phase General Design Phase Detailed Design Phase Code and Debug Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 140

Characteristics of Effective Integration n Overlapped processes n Effective change control and communication systems n Reduced development time and cost n Early and ongoing involvement of all stakeholders n Early visibility of results n Early problem identification and resolution n Use all relevant expertise at earliest meaningful time Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 141

Project Scope Management “Includes the processes required to ensure that the project includes all of the work required, and only the work required to complete the project successfully. ” n Initiation n Scope planning n Scope definition n Scope verification n Scope change control Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 142

Key Scope Concepts n Configuration Management n A mechanism to track budget, schedule variances, and deliverable versions n Specification n A precise definition of a physical item, procedure, service, or result for the purpose of purchase and/or implementation of an item or service n Sources of Scope Change n Variation in government regulations n Failure to include a required feature in the design of the product n Customers who change their minds about the desired nature of the deliverable Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 143

Key Scope Concepts (continued) Work Breakdown Structure n A deliverable-oriented grouping of process elements that organizes and defines the total scope of the project n Each descending level represents an increasingly detailed definition of a project component n Project components may be products or services Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 144

Project Time Management n Definition n A subset of project management that includes the processes required to ensure timely completion of the project n Processes n Activity definition n Activity sequencing n Activity duration estimating n Schedule development n Schedule control Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 145

Purpose of Scheduling Processes n Illustrates interdependence of project activities, work packages, and work units n Monitors and controls timing of project work n Guides the allocation of resources n Drives personnel availability issues and activities Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 146

Remodel Kitchen WBS Remodel Kitchen Level 1 Level 2 Design Purchase Appliances Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Carpentry Electrical Purchase Fixtures 147

Kitchen Remodeling Precedence Relationships Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 148

Kitchen Remodeling Forward Pass - Early Dates Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 149

Kitchen Remodeling Backward Pass - Late Dates Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 150

Kitchen Remodeling Total Float = Late Finish Date – Early Finish Date Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 151

Kitchen Remodeling Summary Float Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 152

Project Cost Management “… the processes required to ensure that the project is completed within the approved budget. ” n Resource planning n Cost estimating n Cost budgeting n Cost control Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 153

One Performance Measurement n Earned Value n Budgeted Cost of Work Performed (BCWP) n Related Terms n Budgeted Cost of Work Scheduled (BCWS) n Actual Cost of Work Performed (ACWP) n Budget at Completion (BAC) Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 154

Cumulative Status Display 1999 Q 1 Q 2 Q 3 Q 4 Q 1 2000 2001 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 BAC ACWP Dollars BCWS BCWP Current Date Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 155

Variances n Schedule Variance (SV) = BCWP – BCWS n Cost Variance (CV) = BCWP – ACWP n Time Variance (TV) = STWP – ATWP Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 156

What Is the SV? Q 1 Dollars (000) 100 90 80 70 60 50 40 30 20 10 0 ACWP = $73, 000 BCWS = $56, 000 BCWP = $30, 800 (55% completed) 1999 Q 2 Q 3 Q 4 Q 1 2000 Q 2 Q 3 Q 4 Actual ACWP Q 1 2001 Q 2 Q 3 Q 4 Plan BCWS Schedule Variance (SV) Earned Value BCWP Current Date Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 157

What Is the CV? Q 1 Dollars (000) ACWP = $73, 000 BCWS = $56, 000 BCWP = $30, 800 SV = $-25, 200 100 90 80 70 60 50 40 30 20 10 0 1999 Q 2 Q 3 Q 4 Q 1 2000 Q 2 Q 3 Q 4 Q 1 2001 Q 2 Q 3 Q 4 Plan BCWS Actual ACWP Cost Variance (CV) Earned Value BCWP Current Date Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 158

What Is the Time Variance? 1999 (000) Dollars ACWP = $73, 000 BCWS = $56, 000 BCWP = $30, 800 SV = - $25, 200 CV = - $42, 200 100 90 80 70 60 50 40 30 20 10 0 Q 1 Q 2 2000 Q 3 Q 4 Q 1 Q 2 2001 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Plan BCWS Actual ACWP Cost Variance (CV) Earned Value BCWP STWP ATWP TV 6 mos. Delay Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 159

Project Quality Management “A subset of project management that includes the process required to ensure that the project will satisfy the needs for which it was undertaken. ” n Quality planning n Quality assurance n Quality control Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 160

Project HR Management “… the processes required to make the most effective use of the people involved with the project. ” n Organizational planning n Staff acquisition n Team development Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 161

Responsibility Chart Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 162

Responsibility Chart Characteristics n Work Package Level n Components n WBS activity n Responsible organization n Responsible position title or person n Type of responsibility n Approving authority n Prime implementation accountability n Support n Notification Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 163

Exercise 9 -1 Responsibility Allocation n Using the handout in your manual, complete the responsibility matrix for your project n Discuss with a classmate the effectiveness of the allocation of responsibility and authority depicted Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 164

Project Risk Management “… the processes concerned with identifying, analyzing, and responding to project risk. ” n Risk identification n Risk quantification n Risk response development n Risk response control Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 165

Risk Decision Tree Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 166

Exercise 9 -2 Risk Assessment n Construct a risk assessment tree for a critical decision on your project n If your original project selection does not lend itself to this exercise, feel free to substitute another project Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 167

Project Communications Management “… the timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. ” n Communications planning n Information distribution n Performance reporting n Administrative closure Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 168

Project Procurement Management “… includes the processes required to acquire goods and services from outside the performing organization. ” n Procurement planning n Solicitation n Source selection n Contract administration n Contract closeout Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 169

Summary n Identified and described the nine knowledge areas and the core processes in each n Allocated typical processes and activities to their appropriate knowledge area Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 170

Unit 10: Role of the Project Manager Upon completion, you will be able to … Identify, in your environment, the most critical project manager: n Roles n Responsibilities n Interpersonal skill requirements n Your knowledge area gaps and strengths Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 171

Project Manager Roles n Decision-maker n n Coach Sales person n Communication channel n Encourager n Power broker n n Disciplinarian n Manager n PM expert Facilitator Behavior model Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. Other? 172

Project Manager Responsibilities n Project plan implementation n Achievement of objectives n Project integration n Communications n Stakeholder relations n Change management system n Priority establishment and maintenance Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 173

More Responsibilities n Staff acquisition, retention, and motivation n Selection and use of PM tools and techniques n Compliance with regulations, state and federal laws, and organization policies and procedures n Resolving team conflicts n Negotiating win/win solutions n Deliver the project on time and within budget n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 174

Skill and Knowledge Requirements Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 175

Competency can be defined as … n A qualification equal to a position requirement, or n Capacities one must possess to perform satisfactorily in a position. Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 176

Success depends on your … n Knowledge n Behaviors n Attitude n Organizational environment n Project environment n Fit n Self-knowledge and ability to adjust Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 177

One Emerging Operating Style “We will need scroungers, tinkerers, masters of the extemporaneous, and those who can make it happen, regardless of the rules, the odds, or the inevitable second guess. ”* * Project Management Handbook, by David I. Cleland William R. King Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 178

Exercise 10 -1 Project Manager Interpersonal Skills n Use the handout to assess the interpersonal skills required to manage a project successfully in your organization; then assess your skills, and identify skill gaps and strengths Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 179

Recognizing a Successful Project Manager n Meets cost, schedule, technical, and mission objectives Plus n Attains high levels of satisfaction and perception of project success from: n Client n Sponsor n Users n Team Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 180

Example of an Organization Competence Assessment Tool n CMM™ background n Levels of Software Engineering Maturity Model n Basic n Repeatable n Defined n Managed n Optimized Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 181

Why Reading Your Environment Is Important Assessments reveal: n Fit between you, the organization, and the project n Your development needs and strengths n PM strategies most likely to be successful n PM strategies to be avoided n Guide for tools and techniques selection n Guide your performance expectations of self and others And They: n Influence your own management style Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 182

Exercise 10 -2 PM Knowledge Needs Assessment n Complete the exercise in your manual, and then discuss the implications with a classmate n Identify knowledge gaps, strengths, and possible developmental activities including: n Growth assignments n Seminars n Self-study n Degree programs n Other? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 183

PM Knowledge Needs Assessment Discussion Question What did you learn from this exercise about: n Yourself? n Your project? n Your organization? n Your future? Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 184

A Framework for Project Management Seminar Summary 1. Introduction and Key Concepts 2. Project Life Cycle Models 3. Initiating Projects 4. Planning Projects 5. Executing Projects 6. Controlling Projects 7. Closing Projects 8. Organizational Impacts 9. Overview of Knowledge Areas 10. Role of the Project Manager Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 185

End n Please complete the seminar evaluation form before leaving. n Thank you for your participation! Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 186