Project Management Introduction Agenda Definitions Project scope management

Project Management Introduction Agenda Definitions Project scope management Time, quality, cost Human resources management Information management Risk management Project Management Institute Michel Tollenaere (INPG) http: //www. g-scop. fr/~tollenam/best Project Management Presentation 2008 1

Definitions A project is a temporary endeavour undertaken to create a unique product or service. It is • performed by people • constrained by limited resources • planned, executed and controlled Project Management Presentation 2008 2

Examples • developing a new product or service • effecting change in a structure, staffing or style of an organisation • designing a new transportation vehicle • developing or acquiring a new or modified information system • constructing a building or facility • building a water system for a community in a developing country • running at campaign for political office • implementing a new business procedure or process • budget from 10 k€ to many M€ • METEOR an automatic underground railway in Paris • implementing SAP in multi-sites company • the football world cup in Paris in 98 • from 8 to 10 digits numbering in a phone system • implementing A 380 in a company. . Project Management Presentation 2008 3

Project features (1) Temporary • A project has a definite beginning and definite end • The duration of a project is finite • The opportunity or market window is usually temporary, most projects have a limited time frame in which to produce the product or service • The project team - as a team - seldom outlives the project. Most projects are performed by a team created for the sole purpose of performing the project Unique result • Projects involve doing something that has not been done before in the same environment • The project may require some innovation to be completed Project Management Presentation 2008 4

Project features (2) Progressive elaboration • A project occurs step by step to define the product or service, in a so called “progressive elaboration” process. • for instance, the development of a chemical processing plant begins with the process engineering to define the characteristics of the process, and ends with the final assembly. Development of a chemical processing plant Define the chemical characteristics of the process Mechanical characteristics of the process units (pumps. . etc) Detailed drawings General plant layout Project Management Presentation 2008 Manufacturing of the parts Final Assembly 5

Project features (3) Progressive elaboration Project Management Presentation 2008 • In aerospace industry, projects are divided in milestones (M 1, M 3, M 5, M 7, M 9, M 11) corresponding to a “state” of the aircraft. 6

Project Lifecycle Cost and Staffing level Initial Phase Intermediate Phases (one or more) Final Phase Finish Start Time Milestones : • defined state of the project • decision point Project Management Presentation 2008 7

Project Lifecycle : example US - DOD 5000. 2 Project Management Presentation 2008 8

Construction Project Lifecycle Project Management Presentation 2008 9

Pharmaceuticals Project Lifecycle Project Management Presentation 2008 10

Project scope management (PMI chap 5) Agenda Definitions Project scope management Time, quality, cost Human resources management Information management Risk management Project Management Presentation 2008 11

Project scope management (PMI chap 5) • Product Scope : the features and functions that characterise a product or service • Project Scope : the work that must be done to deliver a product with the specified features and functions Both scopes are described and detailed with specific tools. Project scope management consists to ensure that the project includes all the work required, and only the work required, to complete the product successfully. Project Management Presentation 2008 12

Product scope management PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE PROGRAMME PROGRAM A 380 SERIES OF /DERIVES AIRPLANE COMPOSANTS PRINCIPAUX MAJOR COMPONENTS ASSEMBLAGES ASSEMBLIES A 380 800 F FUSELAGE CAISSON DE VOILURE SOUS-ASSEMBLAGES SUB -ASSEMBLIES COMPOSANTS ELEMENTARY ELEMENTAIRES COMPONENTS A 380 800 AILE WING LEADING EDGE STRUCTURE ATTACHE A 380 700 . . . EMPENNAGE TAILPLANE . . . BORD D’ATTAQUE SYSTEME MECANIQUE HYDRAULIC SYSTEM . . . TRINGLERIE STRUCTURE Part 10005 Part 10009 • Bill of Materials • FAST Diagram • Structured tool that describes the product Project Management Presentation 2008 Part 10002 13

Project scope management : WBS Work Breakdown Structure Project Management Presentation 2008 14

Project scope management : WBS of a software release Project Management Presentation 2008 15

Project scope definition : from BOM to WBS • Defining the right activities is essential for « project scope definition » • a WBS from a previous project is often used as a template for a new project. • any component in a BOM must be purchased or manufactured. • in all cases (purchasing or manufacturing), it must be tested. • any assembly should be assembled and tested (especially in software engineering) • documentation activity is essential for robust project Activity. An element of work performed during the course of a project. An activity normally has an expected duration, an expected cost, and expected resource requirements. Activities can be subdivided into tasks. Activity Definition. Identifying the specific activities that must be performed to produce the various project deliverables. Project Management Presentation 2008 16

Project scope Change Management • Any change to product and/or project scope must follow a formal process • This process must finish with the formal acceptance of the change by the different stakeholders. A change request may be the result of : • An external event (eg. Change in a government regulation) • an error or omission in defining the scope of the product (adding a failure system regulation). • an error in defining the scope of the project (a missing inspection) • a value adding change (positive opportunity) • a response to an identified risk (see section about risk management) Project Management Presentation 2008 17

Possible evolutions in Product scope Customer needs : What is finally developed Customer needs description : simple, red, robust, with wheels What is the manufacturer expected to do Project Management Presentation 2008 What the architect understands What the architect finally described 18

Monitoring Project scope during the project Overquality Specifications What has been realised Errors in specifications Waste Adequate Quality Happy hazard Court circuit Unsatisfaction Customer’s Needs Project Management Presentation 2008 19

Monitoring Project scope during the project ? ? A universal tool …… ? ? might be so heavy and expensive Project Management Presentation 2008 20

Project scope management (PMI chap 5) Project Scope Management. A subset of project management that 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. It consists of initiation, scope planning, scope definition, scope verification, and scope change control. Scope Definition. Subdividing the major deliverables into smaller, more manageable components to provide better control. Scope Planning. The process of progressively elaborating the work of the project, which includes developing a written scope statement that includes the project justification, the major deliverables, and the project objectives. Scope Statement. The scope statement provides a documented basis for making future project decisions and for confirming or developing common understanding of project scope among the stakeholders. As the project progresses, the scope statement may need to be revised or refined to reflect approved changes to the scope of the project. Scope Verification. Formalizing acceptance of the project scope. Project Management Presentation 2008 21

Project triangle Time, Cost, Quality Agenda Definitions Project scope management Time, quality, cost Human resources management Information management Risk management Project Management Presentation 2008 22

Project time management • requires activity definition • includes activity sequencing • estimates activity duration • elaborates schedule of activities Activity duration model Project Management Presentation 2008 23

Project time management • estimates activity duration Resource requirements : which resources are required for such activity ? Activity duration # activity work effort Some activities (eg. getting authorisation, transportation time) can require a long time without any work-effort. • elaborates schedule of activities Many software tools (MSProject) do the job quite well (in a deterministic manner) They offer many outputs (GANTT Chart, PERT … etc) Project Management Presentation 2008 24

Project time management • relationships between activities : Logical Relationship Activity A • • Activity B Finish-to-start-the initiation of work of the successor depends upon the completion of work of the predecessor. Finish-to-finish-the completion of the work of the successor cannot finish until the completion of work of the predecessor. Start-to-start-the initiation of work of the successor depends upon the initiation of the work of the predecessor. Start-to-finish-the completion of the successor is dependent upon the initiation of the predecessor. Project Management Presentation 2008 25

Project time management • Network Logic Diagram A B E D F Start C Finish Precedence diagram method ; A, B, C, D, E, F are activities B A Start C D E F Finish Arrow diagramming method ; activities are shown as arrows Project Management Presentation 2008 26

Project time management • Provides start and finish dates for all activities Free Float (FF). The amount of time that an activity can be delayed without delaying the early start of any immediately following activities. See also float. A B E Start D C B A Start C D F Finish E F Finish Critical Path. The series of activities that determines the duration of the project. In a deterministic model, the critical path is usually defined as those activities with float less than or equal to a specified value, often zero. It is the longest path through the project. See critical path method. Project Management Presentation 2008 27

Project Cost management • cost management includes the following processes Resource planning - Cost estimating - Cost budgeting - Cost control Cumulative values M€ Total budget of the project Final Phase Initial Phase Intermediate Phases (one or more) Start Finish Time The S – Curve of cost baseline Project Management Presentation 2008 28

Project Cost management • different cost for an activity Planned Value (PV). The physical work scheduled, plus the authorized budget to accomplish the scheduled work. Previously, this was called the budgeted costs for work scheduled (BCWS). Earned Value (EV). The physical work accomplished plus the authorized budget for this work. The sum of the approved cost estimates (may include overhead allocation) for activities (or portions of activities) completed during a given period (usually project-to-date). Previously called the budgeted cost of work performed (BCWP) for an activity or group of activities. Actual Cost (AC). Total costs incurred that must relate to whatever cost was budgeted within the planned value and earned value (which can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs) in accomplishing work during a given time period. Project Management Presentation 2008 29

Project Cost Management • different contracts A contract is a mutually binding agreement that obligates the seller to provide the specified product and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories: Fixed-price or lump-sum contracts - this category of contract involves a fixed total price for a welldefined product. Fixed-price contracts may also include incentives for meeting or exceeding selected project objectives, such as schedule targets. Cost-reimbursable contracts - this category of contract involves payment (reimbursement) to the contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by the project, such as wages for members of the project team) and indirect costs (costs allocated to the project by the performing organization as a cost of doing business, such as salaries for corporate executives). Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable contracts often include incentives for meeting or exceeding selected project objectives, such as schedule targets or total cost. Time and material contracts-time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed- price-type arrangements. Time and material contracts resemble cost-type arrangements in that they are open ended, because the full value of the arrangement is not defined at the time of the award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-unit arrangements when, for example, the unit rates are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior engineers. " Project Management Presentation 2008 30

Project quality management Let’s start with a story : La Route du Rhum 2002 Only 3 sailers (upon 15) arriving at Pointe-à-Pitre !!! Project Management Presentation 2008 31

Project quality management Quality management applies to : - project activities - and project results (deliverables, components) to fulfil quality objectives. The Deming Cycle PLAN: Design or revise business process components to improve results DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the results to decision makers ACT: Decide on changes needed to improve the process Project Management Presentation 2008 32

Project quality management Quality Planning. Identifying which quality standards are relevant to the project, and determining how to satisfy them. Quality Assurance (QA). 1) The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. 2) The organizational unit that is assigned responsibility for quality assurance. Quality Control (QC). 1) The process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. 2) The organizational unit that is assigned responsibility for quality control. Project Management Presentation 2008 33

Human resources management Agenda Definitions Project scope management Time, quality, cost Human resources management Information management Risk management Project Management Presentation 2008 34

Human resources management As project is performed by humans, Project management is human and organisation management. • who decides ? • who is responsible on ? • who controls ? • who takes benefits of ? Complex projects are based on complex organisations Best skills for all complex tasks worldwide Project Management Presentation 2008 35

Human resources management Airbus Company has been created to provide airplanes It has been created from Aerospatiale, British Aerospace, CASA, DASA Project Management Presentation 2008 36

Human resources management Is formalised in a Organisation Breakdown Structure (OBS) A depiction of the project organization arranged so as to relate work packages to organizational units It shows which work components have been assigned to which organizational units or persons. Responsibility assignment matrix Project Management Presentation 2008 P = Participant A = Accountable R = Review required I = Input required S = Sign-off Required 37

Subcontracting management Sub-contracting requires internal resources for negociation and control. Do not confuse : a subcontractor is not a partner Project Management Presentation 2008 38

Information management Project Management Presentation 2008 39

Some tools (1) Ensure message storage ? Managing group lists ? Impossible to share large files Project Management Presentation 2008 40

Some tools (2) annotation and correction of documents Project Management Presentation 2008 41

Some tools (3) Powerpoint diapo conférence Chats Microsoft Netmeeting Yahoo groups Windows sharing, shared blackboard Project Management Presentation 2008 42

Extended entreprising information system Project Management Presentation 2008 43

ENTREPRISES INFORMATION SYSTEMS Commercial Logistics Production Quality Maintenance E. R. P. C. R. M. S. R. M. E. S. A. P. S. K. M. K. B. E. P. D. M. /P. L. M. Marketing Design Project Management Presentation 2008 Industrialisation Quality assurance 44

Supplier Sub-contractor A Orderer • deiversified technical products • multi-sites, multi organisation development and production • development under time constraints Sub-contractor B Partner Project Management Presentation 2008 • physical flows • information flows • financial flows • decision systems 45

Engineering et communication situations Space Distant Slides-conference Visioconference Internet, Intranet, PDM, PLM Asynchronous Same location Synchronous Time Project location Project Management Presentation 2008 46

Information System Organisations Task 3 Task 2 Task 1 Tasks, processus Files and Documents Systems ? Project Management Presentation 2008 47

Donneur d ’ordres Parameter : Physical value Unit version tolerance and gap …. Partenaire rang 1 Equipementier Organisations Sous traitant Liens explicites entre paramètres, et objets documentaires Organisations, rôles au sein des projets Value evolution 1 4 2 Who do what ? Who has done what ? 10 14 12 15 5 Value Evolution Task 3 Files and Documents Task 1 Réseau de Paramètres Links between documents and assemblies and systems Quels systèmes ? Project Management Presentation 2008 Task 2 Tâches, processus Link between parameters, functions, items Action Exécution Décision Notification Who is responsible on what? Configuration managezment 48

Engineering change management – Engineering Change management Notification Status • Automatisation du traitement des "Change Process" evolution • S'assurer que toutes les étapes approbation/qualité ont Push of été réalisées documents – Document Review Files and Documents • Router automatiquement vers les "reviewers" (requis al v o pr ou optionnels) p A • Gérer les approbations ou re-router pour révision Efficiency et Traçing Project Management Presentation 2008 49

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Risk Management Project Management Presentation 2008 51

What is risk ? Project risk is an uncertain event or condition, that, if it occurs, has a positive or a negative effect on a project objective (cost, time, quality). A risk has a cause and, if it occurs, a consequence. In risk management, probability and impact (severity) of the risks are considered. Project Management Presentation 2008 52

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References • • • Project Management Institute http: //www. pmi. org/ An example of students project http: //192. 168. 41. 10/~tollenaere/e-commerce/ 2 PLM lettre bimensuelle http: //www. johnstark. com/xzxzx. html dernière édition sur http: //www. johnstark. com/xzxzx. html PDM Information Center, http: //www. pdmic. com/ CIMdata, http: //www. cimdata. com/ PDM enablers de l’OMG http: //www. omg. org/techprocess/meetings/schedule/PDM_RTF_1. 5. html Project Management Presentation 2008 56