PM 101 training - 01_13_2014

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Project Management Training Roadmap

The project management training roadmap strategy is aligned with the Project Management Body Of Knowledge (PMBOK).

Topics PM 101 (Yellow) PM 201 (Green) PM 301 (Black)

Duration 1.5 days 2 days 4 days

Participants ~ 200 ~ 100 ~50

Introduction

Project management Comprehensive Review Comprehensive

Project constraints Comprehensive Review Comprehensive

Role of project manager Comprehensive Review Comprehensive

Relationship between project, program, and portfolio management Comprehensive Review Comprehensive

Project Life Cycle

Project life cycle and relationship to PDP process Introduction Comprehensive Comprehensive

Initiating Process Group

Develop project charter Introduction Comprehensive Comprehensive

Stakeholders roles & responsibilities Introduction Comprehensive Comprehensive

Planning Process Group

Project Plan (scope, WBS, schedule, and resources) Introduction Comprehensive Comprehensive

Estimate budget Introduction Comprehensive Comprehensive

Plan communication Introduction Comprehensive Comprehensive

Identify Risks Introduction Comprehensive Comprehensive

Executing Process Group

Manage project execution Introduction Comprehensive Comprehensive

Manage project teams Introduction Comprehensive Comprehensive

Perform quality assurance Not Covered Introduction Comprehensive

Conduct Procurement Not Covered Introduction Comprehensive

Monitoring & Controlling Process Group

Monitor and control project work Introduction Comprehensive Comprehensive

Perform quality control Not Covered Introduction Comprehensive

Administer procurement Not Covered Introduction Comprehensive

Earned Value Management (EVM) Not Covered Not Covered Comprehensive

Variance analysis Introduction Comprehensive Comprehensive

Closing Process Group

Project closure and gate review Introduction Comprehensive Comprehensive

Future R&D Training Courses

# Training Description Duration Who should attend Location Date

PM-201 Intermediate Project Management Training 2 days (classroom) TBD TBD PM-201-1 Intermediate Project Management and the Project Lifecycle

1 hour LMS Course (future)

PM-201-2 Intermediate Project Management - Initiating Process Group

2 hours LMS Course (future)

PM-201-3 Intermediate Project Management - Planning Process Group

2 hours LMS Course (future)

PM-201-4 Intermediate Project Management - Executing Process Group

2 hours LMS Course (future)

PM-201-5 Intermediate Project Management - Monitoring and Controlling Process Group

2 hours LMS Course (future)

PM-201-6 Intermediate Project Management - Closing Process Group

1 hour LMS Course (future)

PM-301 Advanced Project

Content Overview

• Introduction

• Product & Project Life Cycle • Initiating Process Group • Planning Process Group • Executing Process Group

• Monitoring & Controlling Process Group • Closing Process Group

What is a Project?

• A Project is a temporary group of activities designed to produce a unique product, service, or result

• A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources

• The temporary nature of projects stands in contrast with “business as usual (or operations)” which are repetitive, permanent, or

semi-permanent functional activities to produce products or services

• The end is reached when the project’s objectives have been achieved, or when the project is canceled, or when the need for the project no longer exists

Relationships between Project, Program, and Portfolio (1 of 2)

• “A project is a temporary endeavour undertaken to create a unique result” • “A program is a group of related projects managed in a coordinated way to

obtain benefits and control not available from managing them individually.”

– The key linkage between a Program and a Project is the Program Plan”

• “A portfolio is a collection of programs and/or projects that align with an organization’s investment strategy

– The key linkage between a portfolio and its programs and projects is the Portfolio

Relationships between Project, Program, and Portfolio (2 of 2)

• The relationship between these three entities can be visualized by the picture below:

In Flowserve, we

primarily use Portfolios & Projects. Future opportunities for utilizing Programs

Portfolio Management

• Portfolio management is the management of one or more portfolios

• Portfolio management focuses on making sure that programs and projects are prioritized for resources to serve the organization’s strategy

• Just as a program is managed by a program manager, a portfolio is managed by a portfolio director or manager.

• A portfolio manager worries about the success of the whole strategy put forth by the organization rather than solely of the success of a single

project (like what project managers do)

In Flowserve, the R&D Portfolio is segmented and managed by

Product/Sector Directors and AT Directors

What is Project Management?

• Project management is about getting things done!

• Project Management is the disciple of planning, executing, managing

resources, and controlling & monitoring of the scope, budget and time to achieve specific goals

• Project management is built upon the fundamentals of the Triple Constraint:

– A project has a specific objective that is meant to be completed referencing certain

specifications (scope)

– A project utilizes specific resources, both human and monetary (cost)

– A project has a defined timeframe, with definitive start and end dates (time)

Triple Constraint (1 of 3)

• The challenge of every project is to be successful within the Triple

Constraint; the Triple Constraint being scope (quality), cost (resources) and

time (schedule). These three elements of a project must work in tandem

with one another

• Where one of these elements is restricted or extended, the other two

elements will then also need to be either extended/increased in some way or restricted/reduced in some way

• There is a balancing of the three elements that only when fully understood allows for the successful planning, resourcing and execution of a project

Triple Constraint (2 of 3)

• Scope/Quality:

The scope of a project (often called the Statement of Work (SOW)) is a clear, specific statement as to what has been agreed to be

performed/achieved in a particular project.

– Quality metrics/KPIs are used to measure performance against defined scope

• Cost/Resources:

This second element of the Triple Constraint is known as either Cost or Resources.

– When we talk about the cost of a project, we are talking about personnel, material, and

equipment

• Time/Schedule:

This third element of the Triple Constraint is known as either Time or Schedule. Time, in project management, is defining the duration to each and every component of a project.

Triple Constraint (3 of 3)

What steps can a project manager take to ensure successful project delivery knowing how the three attributes affect each other?

• Understand the Triple Constraint

– The project manager MUST be fully conscious of the fact that scope, time and cost are

fully inter-related and that the triple constraint dictates any adjustment to any of those items MUST affect the other

• Convey the Triple Constraint

– It is imperative that the project manager convey that information to the project

stakeholders

• Stakeholders (definition): key individuals that have a vested interest in the successful outcome

of the project or have key deliverables that make up a broader Project; to be discussed in details in a later section)

• Monitor the Triple Constraint

– The project manager must stay on top of all the key attributes of the triple constraint

– The project manager must be conscious of any fluctuations to the triple constraint

How Does One Determine If a Project Was Successful?

• The key objectives that determine the project is successful are:

– The project met its requirements as described in the scope document – The project was completed on or ahead of schedule

– The project was completed within budget

– The project met or exceeded customer’s expectations

What is the Role of a Project Manager?

• The project manager will plan, execute, monitor & control, direct, and ensure the successful outcome of their assigned projects by:

– Managing team resources (cost)

– Delivering to the approved budget

– Delivering to the approved schedule

– Delivering to the approved project scope and meeting or exceeding customer’s

expectations

• Provide project leadership that encourages team enthusiasm and innovation

– A person who leads

– One who understands the importance of "people" to the success of a project

– One who is in charge or in command of others

– Person who convinces other people to follow

– A person who guides or directs group(s)

• Ensure compliance of project execution with Flowserve policies

• Collaborate and communicate with project teams as well as stakeholders and business executives

Content Overview

• Introduction

• Product & Project Life Cycle • Initiating Process Group • Planning Process Group • Executing Process Group

• Monitoring & Controlling Process Group • Closing Process Group

Product and Project Life Cycle (1 of 2)

• The terms Product life cycle and Project life cycle sound quite similar, but in fact, are very different from one another

Product Life Cycle

• The product life cycle reflects the phases involved in any type of product • The five phases of a product's life cycle are:

– Development,

– Introduction,

– Growth,

– Maturity, and

– Decline

• There is no set time span for a given stage; the entire cycle may last months to years depending on the product

Product and Project Life Cycle (2 of 2)

Project Life Cycle

• A project life cycle measures the work that goes into a project from beginning to end to accomplish the project’s goals or objectives

• Project activities are grouped into phases so that the project manager and the project core team can efficiently plan and organize resources for each activity

• By planning activities by phases the project manager and the project core team can objectively measure achievement of deliverables so the Project Approval Committee (PAC) can make informed decisions to move ahead, correct, or cancel the project

Project Life Cycle and Relationship with Product Development

Process (PDP) Life Cycle (1 of 2)

• The PMBOK Guide identifies project management as being broken down into five specific parts, or ‘Process Groups’:

– Initiating Process Group,

– Planning Process Group,

– Executing Process Group,

– Monitoring & Controlling Process Group, and

– Closing Process Group.

• These five process groups make up the functional life-cycle of the project

There are other standards available that describe the project management processes, tools,

and techniques. Here are the links: http://www.pmi.org; www.prince2.com;

Project Life Cycle and Relationship with Product Development

Process (PDP) Life Cycle (2 of 2)

• The relationship between the Product Development Process (PDP) and PMBOK Process groups is shown below

Initiating Gate 0 Closing Pr oj ec t Life C yc le Planning Executing Product Monitoring & Controlling

Project Monitoring & Controlling

Go! Redirect! Go! Reset! Go! Go!

Content Overview

• Introduction

• Product & Project Life Cycle • Initiating Process Group • Planning Process Group • Executing Process Group

• Monitoring & Controlling Process Group • Closing Process Group

Initiating Process Group

• The Initiation Process Group consists of two processes that are intended to begin a project. The two defined processes are often performed

simultaneously

• In this stage the project’s champion (e.g. Product Director) defines what the project is and what the customer hopes to achieve by undertaking the project

Develop Project

Charter Stakeholders Identify

Project Charter (1 of 2)

• The project charter is a formal document issued by the project’s champion that authorizes the project and appoints the project manager

• When signed off, the project charter gives the project life

• The project charter documents the business needs, current understanding of the customer’s needs, the new product, service, or result that it is

intended to satisfy, defines constraints and identifies the major stakeholders involved

• The charter gives the project manager and the Project Core Team the high-level scope, cost, and schedule window from which to operate.

– If events change those overall parameters, the sponsors must be contacted to approve

the changes

Project Charter (2 of 2)

• Typically, the project charter includes the following:

– Scope (requirements) of the project

– Any constraints and assumptions

– Project justification

– Summary of project costs and benefits

– High-level timeline for key milestones

– High-level project risks

– Assigned project manager, responsibility, and authority level

– Name and authority of the champion or other person(s) authorizing the project charter

Project Charter provides the boundaries for the “Triple Constraint”

For Flowserve R&D Projects, the high-level timeline for key milestones, should include as a minimum the target dates for any gate reviews, production start date, and market launch date

Stakeholders (1 of 6)

• One of the first steps in project management planning is identifying the stakeholders

How to Identify Key Stakeholders?

• A few key questions the project manager have to ask when attempting to identify the stakeholder list are:

– G: Who has something to Gain from this project?

– R: Who controls or provides or procures Resources, equipment, facilities, etc.? – A: Who is Affected positively or negatively by the project?

– M: Who makes the Money decisions?

– P: Who has the Power to make the project succeed?

– PO: Who are the ultimate Process Owners?

Process owners are often left out of the loop

Stakeholders (2 of 6)

How Many Stakeholders will there be?

• Aside from the several key stakeholders who will normally stick with you to the end, there will be numerous others at different levels of importance who will migrate in and out

• If your project is controversial you’ll find that, like bees drawn to honey, any number of stakeholders will appear from nowhere

• External stakeholders include customers, suppliers, partners, government, local community

Stakeholder (3 of 6)

Stakeholder (4 of 6)

The Stakeholder Analysis

• Stakeholder Analysis is a technique used to identify the key people who have to be won over

How to Use the Tool

• Step 1 – Identify Your Stakeholders • Covered in slide the earlier slide

• Step 2 – Prioritize Your Stakeholders

• The next step is to work out their power, influence and interest, so you know who you should focus on

• Some of the stakeholders may be interested in what you are doing, others may not care

Stakeholders (5 of 6)

• Step 3 – Construct a matrix to identify your stakeholder’s influence and interest using a Power/Interest Grid as shown below:

• The ‘X’ axis on the grid will signify the interest the stakeholder has for the project while the ‘Y’ axis will denote an individual’s influence

Low Interest High

Influence High Low Keep Satisfied Keep Informed Manage Closely Keep Informed + Two Way Communication

Stakeholders (6 of 6)

Step 4 –

Working with Stakeholders

• The project manager needs to define an effective communication plan to engage with the stakeholders

• Having periodic demos of the deliverable (if possible) is also an excellent way for the stakeholders to see the end result manifest itself.

– It will also enable them to have a more tangible frame of reference for discussion should

issues arise with the core design or implementation of the end deliverable.

• It is imperative that stakeholders are consistently kept up to date on the progress of the project and brought in on a regular basis for discussions and follow-ups as things mature.

Content Overview

• Introduction

• Product & Project Life Cycle • Initiating Process Group • Planning Process Group • Executing Process Group

• Monitoring & Controlling Process Group • Closing Process Group

Planning Process Group

• The Planning Process Group processes are intended to plan a project or project phase.

• The processes with dotted lines will be discussed in “PM 201” and/or “PM301”.

Define Project Scope

• A critical element of any project is gathering the business requirements and creating a clear picture of what needs to be delivered.

• The project scope statement, which is sometimes called statement of work

(SOW), describes in detail the project’s deliverables and the work required

to create those deliverables

• The SOW explains the boundaries of the project, establishes

responsibilities for each team member and sets up procedures for how completed work will be verified and approved

• The SOW also provides a common understanding of the project scope among project stakeholders

• The scope statement also provides the project team with guidelines for making decisions about change requests during the project.

Create Work Breakdown Structure (WBS) (1 of 4)

• One way to get a clear picture of all of the work that needs to be done on a project is to create a work breakdown structure (WBS)

• The two most common ways of visualizing the work are by deliverables or by phases

– For R&D projects, by “Phase” is the recommended method

• WBS is the process of subdividing project work into smaller, more

manageable components called work packages (i.e. Phases within the project, Steps within each Phase, Tasks within each Step, and Systems, Sub-systems, or Components

• The work package level is the lowest level in the WBS, and is the point at which the cost and activity durations for the work can be reliably estimated and managed.

Create Work Breakdown Structure (WBS) (2 of 4)

• Below is a WBS example by Phase:

BICYCLE

Phase 1 Phase 2 Phase 3 Phase 4

Market Requirements ... Operational Requirem... Risk Assessment Financial Plan Business Plan Resource Plan Detailed Project Sch...

Detaailed Design / P... Patent Review Make / Buy Analysis Validation Test Plan Supplier Selection Manufacturing Strate... Design Review

Product Validation Manufacturing Proces... Supplier Qualificati... Market Launch Plan 3rd Party Certificat... Sales Training Mater... Final Design Review

Inventory Build-up Operations and Sales... Supplier Qualificati... Project Close-out Pr... Customer Feedback Post-Launch Review Detailed Project Sch...

Create Work Breakdown Structure (WBS) (3 of 4)

• Below is a WBS example for a Bicycle by Deliverables:

BICYCLE

Wheels Powertrain Brakes Frame Set Assembly Test Drive

Rims Rear Cassette Tubes Tires

Shifters Crank Set Chain Derailleurs

Brake Levers Brakes

Frame Handlebar Fork Seat

Frame Wheels Powertrain Brakes

Chainrings

Crank Arms Pedals Front Rear Stem Headset Handlebar Seat Post Seat Level 3

Level 4

Level 2

Create Work Breakdown Structure (WBS) (4 of 4)

• Below is the WBS Outline for the Bicycle example WBS Level WBS ID Element Name

1 1 BICYCLE 2 1.1 Wheels 3 1.1.1 Rims 3 1.1.2 Rear Cassette 3 1.1.3 Tubes 3 1.1.4 Tires 2 1.2 Powertrain 3 1.2.1 Shifters 3 1.2.2 Crank Set 4 1.2.2.1 Chainrings 4 1.2.2.2 Crank Arms 4 1.2.2.3 Pedals 3 1.2.3 Chain 3 1.2.4 Derailleurs 4 1.2.4.1 Front 4 1.2.4.2 Rear 2 1.3 Brakes 3 1.3.1 Brake Levers 3 1.3.2 Brakes WBS Outline List

WBS Level WBS ID Element Name

2 1.4 Frame Set 3 1.4.1 Frame 3 1.4.2 Handlebar 4 1.4.2.1 Stem 4 1.4.2.2 Headset 4 1.4.2.3 Handlebar 3 1.4.3 Fork 3 1.4.4 Seat 4 1.4.4.1 Seat Post 4 1.4.4.2 Seat 2 1.5 Assembly 3 1.5.1 Frame 3 1.5.2 Wheels 3 1.5.3 Powertrain 3 1.5.4 Brakes 2 1.6 Test Drive

Define Activities (1 of 2)

• Define activities is the process of creating a complete list of the project deliverables

• The list, known as “activity list”, is a comprehensive list that includes all schedule activities that are planned to be performed on the project • To create this list, each work package at the bottom of the WBS is

decomposed into schedule activities

• An activity is typically described using a noun and verb such as ‘create report’.

• Below is the Activity List for the work package “Frame” of the Bicycle

WBS Level WBS ID Element Name Activity Predecessor

2 1.4 Frame Set

1.4.1

1.4.1.1 Create rider-bicycle system model

1.4.1.2 Design three-pivot position 1.4.1.1

1.4.1.3 Run simulation 1.4.1.2 1.4.1.4 Optimize design 1.4.1.3 1.4.1.5 Build prototype 1.4.1.4 1.4.1.6 Test prototype 1.4.1.5 1.4.1.7 Adjust design 1.4.1.6 1.4.1.8 Release to production 1.4.1.7 3 1.4.2 Handlebar 4 1.4.2.1 Stem 4 1.4.2.2 Headset 4 1.4.2.3 Handlebar 3 1.4.3 Fork 3 1.4.4 Seat 4 1.4.4.1 Seat Post 4 1.4.4.2 Seat 2 1.5 Assembly 3 1.5.1 Frame 3 1.5.2 Wheels 3 1.5.3 Powertrain 3 1.5.4 Brakes 2 1.6 Test Drive

Activity List (continued)

Frame 3

Determine Sequence of Activities

• Sequence Activities is the process of identifying relationships among the project activities

• During sequence activities, the focus is to arrange the activities in the most efficient and effective order

• Every activity and milestone are connected to at least one predecessor and one successor

• The network diagram is a schematic of project activities. It shows how the various activities are connected

Estimate Required Resources (1 of 2)

• The next step after creating the WBS and the activity list is to determine all the resources required to support the project

• Examine the project’s needs in terms of personnel, material, and equipment, how much of each you require, and when you need it • Resource needs should be defined on a Phase-by-Phase basis. How to fulfill resource requests?

• Functional Managers can approve or deny resource requests

• When negotiating resources with the Functional Manager, the Project Manager should clearly communicate the priority of their project. Resources are assigned based on project priorities

Estimate Required Resources (2 of 2)

• Below is the resource list for the bicycle example

WBS Level WBS ID Element Name Resource C

1 1 BICYCLE 2 1.1 Wheels 3 1.1.1 Rims 3 1.1.2 Rear Cassette 3 1.1.3 Tubes 3 1.1.4 Tires 2 1.2 Powertrain 3 1.2.1 Shifters 3 1.2.2 Crank Set 4 1.2.2.1 Chainrings 4 1.2.2.2 Crank Arms 4 1.2.2.3 Pedals 3 1.2.3 Chain 3 1.2.4 Derailleurs 4 1.2.4.1 Front 4 1.2.4.2 Rear 2 1.3 Brakes 3 1.3.1 Brake Levers 3 1.3.2 Brakes Resource List Resource A Resource B Resource C

WBS Level WBS ID Element Name Resource C

2 1.4 Frame Set 3 1.4.1 Frame 3 1.4.2 Handlebar 4 1.4.2.1 Stem 4 1.4.2.2 Headset 4 1.4.2.3 Handlebar 3 1.4.3 Fork 3 1.4.4 Seat 4 1.4.4.1 Seat Post 4 1.4.4.2 Seat 2 1.5 Assembly 3 1.5.1 Frame 3 1.5.2 Wheels 3 1.5.3 Powertrain 3 1.5.4 Brakes

2 1.6 Test Drive Resource F

Resource E Resource D

Estimate Activities Duration (1 of 2)

• The next step is to estimate the number of work days (or hours) to complete each activity

• That estimation then rolls up to create the high level estimates

• When estimating an activity’s duration, make sure activity owner gives input and feels ownership of their deliverables

• People are more likely to deliver on commitments that they have made rather than on

commitments that were made on their behalf!

• There is a fundamental formula that ties together the duration of an activity against the amount of work effort required, and the resources needed to complete the work:

– Activity duration = work effort/human units.

Most people subconsciously add padding to their estimates, and due to Parkinson’s Law (i.e. “work expands to fill the time scheduled”), this extra time will be used up unnecessarily. Also, due to the Student Syndrome, people will wait until the last minute to accomplish their work. The Project Manager needs to take this into account when estimating activities

Estimate Activities Duration (2 of 2)

• Below is the activity durations for the bicycle example

WBS Level WBS ID Element Name Activity Predecessor Duration Days

2 1.4 Frame Set

1.4.1 35

1.4.1.1 Create rider-bicycle system model 5 1.4.1.2 Design three-pivot position 1.4.1.1 7 1.4.1.3 Run simulation 1.4.1.2 4 1.4.1.4 Optimize design 1.4.1.3 3 1.4.1.5 Build prototype 1.4.1.4 10 1.4.1.6 Test prototype 1.4.1.5 2 1.4.1.7 Adjust design 1.4.1.6 3 1.4.1.8 Release to production 1.4.1.7 1 3 1.4.2 Handlebar 4 1.4.2.1 Stem 10 4 1.4.2.2 Headset 14 4 1.4.2.3 Handlebar 16 3 1.4.3 Fork 25 3 1.4.4 Seat 4 1.4.4.1 Seat Post 7 4 1.4.4.2 Seat 15 2 1.5 Assembly 3 1.5.1 Frame 5 3 1.5.2 Wheels 3 3 1.5.3 Powertrain 7 3 1.5.4 Brakes 2 2 1.6 Test Drive 5

Activity List w/ Duration (continued)

Frame 3

WBS Level WBS ID Element Name Activity Predecessor Duration Days 1 1 BICYCLE 2 1.1 Wheels 3 1.1.1 Rims 39 3 1.1.2 Rear Cassette 15 3 1.1.3 Tubes 5 3 1.1.4 Tires 5 2 1.2 Powertrain 3 1.2.1 Shifters 15 3 1.2.2 Crank Set 4 1.2.2.1 Chainrings 9 4 1.2.2.2 Crank Arms 6 4 1.2.2.3 Pedals 10 3 1.2.3 Chain 5 3 1.2.4 Derailleurs 4 1.2.4.1 Front 18 4 1.2.4.2 Rear 41 2 1.3 Brakes 3 1.3.1 Brake Levers 12 3 1.3.2 Brakes 15

Develop Schedule (1 of 4)

• At this point, the “what” (WBS and activity list), “what order” (sequence activities), “when” (start and finish dates), “who” (resources), come

together and the schedule is born

• The schedule tells you when each activity should be done, what has already been completed, and the sequence in which things need to be finished

• Creating the master project schedule is a team effort. Each member of the Project Core Team should be involved in this process

• The master project schedule should be updated and maintained on a regular basis

Develop Schedule (2 of 4)

Critical Path Method

• Every project schedule has critical path(s).

• Critical path is the longest path (string of activities) on the project network diagram

• Every single activity on the critical path must finish on time in order for the project to come in on time. A delay in any one of the critical path

activities will cause the entire project to be delayed

• Once you’ve figured out the critical path, then you can calculate the float.

– The “float” for any activity is the amount of time (“slack”) that it can slip before it causes

your project to be delayed

– The float for every activity in the critical path is zero

Develop Schedule (3 of 4)

Develop Schedule (4 of 4)

Scheduling Tools & Techniques

Schedule Compression

• These tool helps shorten the total duration of a project by decreasing the time allotted for certain activities. It's done so that you can meet time constraints, and still keep the original scope of the project. You can use two methods here:

– Crashing:

– This is where you assign more resources to an activity, thus decreasing the time it takes

to complete it.

– This is based on the assumption that the time you save will offset the added resource

costs.

– Crashing only works for activities where additional resources will shorten the duration.

Crashing does not always produce a viable alternative and may result in increased risk and/or cost.

– Fast-Tracking:

– This involves rearranging activities to allow more parallel work. This means that things

you would normally do one after another are now done at the same time.

– This approach may result in rework and increased risk.

Estimate Costs (1 of 3)

• Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities.

• Costs are estimated for all resources that will be charged to the project. This includes salary expense (i.e. labor), non-salary expense (i.e. materials, services), and capital (equipment, facilities)

• The accuracy of a project estimate will increase as the project progresses through the project life cycle

Estimate Costs (2 of 3)

• There are a number of cost estimating techniques the Project Manager and Project Core team can use to establish activity cost estimates. Most common ones are:

Bottom-Up Estimating

– The cost of individual deliverables is estimated with the greatest level of specific detail.

The detailed cost is them summarized or “rolled up” to create a total project estimate

Historical Base Estimating

– This technique is used when there is a limited amount of detailed information about the

project. This technique uses historical information and expert judgment

Estimate Costs (3 of 3)

• Below is the activities estimated cost for the bicycle example

WBS ID Element Name Activity Predecessor Duration Days

Cost

1.4 Frame Set

1.4.1 35 $3,500

1.4.1.1 Create rider-bicycle system model 5 $500

1.4.1.2 Design three-pivot position 1.4.1.1 7 $700

1.4.1.3 Run simulation 1.4.1.2 4 $400 1.4.1.4 Optimize design 1.4.1.3 3 $300 1.4.1.5 Build prototype 1.4.1.4 10 $1,000 1.4.1.6 Test prototype 1.4.1.5 2 $200 1.4.1.7 Adjust design 1.4.1.6 3 $300 1.4.1.8 Release to production 1.4.1.7 1 $100 1.4.2 Handlebar 1.4.2.1 Stem 10 $285 1.4.2.2 Headset 14 $170 1.4.2.3 Handlebar 16 $250 1.4.3 Fork 25 $400 1.4.4 Seat 1.4.4.1 Seat Post 7 $250 1.4.4.2 Seat 15 $190 1.5 Assembly 1.5.1 Frame 5 $100 1.5.2 Wheels 3 $50 1.5.3 Powertrain 7 $150 1.5.4 Brakes 2 $50

1.6 Test Drive 5 Priceless

$14,523

Activity List w/ Duration (continued)

Frame

WBS ID Element Name Duration

Days Cost 1 BICYCLE 1.1 Wheels 1.1.1 Rims 39 $2,025 1.1.2 Rear Cassette 15 $340 1.1.3 Tubes 5 $8 1.1.4 Tires 5 $65 1.2 Powertrain 1.2.1 Shifters 15 $290 1.2.2 Crank Set 1.2.2.1 Chainrings 9 $155 1.2.2.2 Crank Arms 6 $70 1.2.2.3 Pedals 10 $425 1.2.3 Chain 5 $95 1.2.4 Derailleurs 1.2.4.1 Front 18 $850 1.2.4.2 Rear 41 $925 1.3 Brakes 1.3.1 Brake Levers 12 $0 1.3.2 Brakes 15 $380

Determine Budget

• The estimated budget (forecast) is the sum up of the estimated costs of all the individual activities or work packages

• Project budgets constitute the funds authorized to execute the project • The cost baseline established the basis for measuring, monitoring, and

controlling project cost

• Changes to the scope of the project will most often have a direct impact on the budget and the forecast

Plan Communications (1 of 3)

• Plan Communications is the process of determining project stakeholder information needs and defining a communication approach

• Communication is vital for a successful project

• One of the many factors that contribute to the failure of projects is poor or insufficient communication.

• Careful communication planning and setting the right expectations with all the project stakeholders is extremely important

• Face-to-face initial communication (i.e. kickoff meetings), if feasible, to establish the team dynamics and learning the customer’s and

stakeholder’s expectations are the keys to success when managing a project

Plan Communications (2 of 3)

Communication Channels

• Communication is a complex part of any project. The more people involved in a project, the greater the communication among them

– The formula for this relationship is N* (N-1)/2; where N being the number of people on

the project.

Plan Communications (3 of 3)

Communication Types

• A challenge the project manager faces is to determine what type of communication channel should he/she opt for in order to carryout effective communication.

• Some of the most common communication types are:

Communication Types

Formal

(reports, memos) Informal (emails) (monthly reports) Official

Face-to-Face Verbal & non-verbal

(body language) Lync

Video Conferencing

• Risk is an event with some degree of uncertainty. It may or may not occur • A positive risk is an opportunity; a negative risk is a threat

– Example of a positive risk event is the growth from the sales of a new product exceeding

expectations

• Every project, regardless of scope or complexity, is going to have some inherent risks

• The project manager and the project core team have to identify, classify, prioritize, mitigate, and monitor and control the project risks

• Risks themselves can be from factors internal to the project, such as the adoption of a new technology, resource constraints, and internal

dependencies

• Additionally, risks can also be external, such as the health of the financial markets, competitive pressures, or legal liabilities

Identify Risks (2 of 2)

Risk Management Process

• The project manager and project core team proactively plan how to identify, rank, and address risks issues on a project.

• The steps the project manager and project core team should follow to perform risk assessment are:

– Identification – Perform a brainstorming session where all conceivable risks are itemized – Planning - Once defined, plan for contingencies as part of the overall project plan;

implement controls as needed

– Derive Safeguards – Place specific ‘fallbacks’ into the overall project plan as contingencies for risks if they arise

– Monitor – Continuously monitor the project to determine if any defined (or un-expected) risks manifest themselves

Content Overview

• Introduction

• Product & Project Life Cycle • Initiating Process Group • Planning Process Group • Executing Process Group

• Monitoring & Controlling Process Group • Closing Process Group

Executing Process Group

• The Executing Process Group processes are intended to manage the work during a project or project

phase.

• The processes with dotted lines will be discussed in “PM 201” and/or “PM301”. Acquire Project Team Develop Project Team Manage Project Team Distribute Information Manage Stakeholder Expectations

Executing Process Group

Perform Quality Assurance

Conduct Procurement

Direct and Manage Project Execution

• This is the official start of actual implementation

• This is the point where we have moved from the ‘theory’ of how we

envisioned the project to move forward to the actual ‘practice’, where the engine is running and we are on the road

• All planning activities are now mature, work assignments should have now been made and all parties should have full understanding of their role and duties as it pertains to this project.

• This is where the majority of the project budget is expended and most of the project time is spent.

Acquire Project Team

• Is the process of obtaining the resources (personnel, material, and equipment) needed to complete the project. This process should be started early on in the project.

• As resources get allocated to do the actual work, the resource can charge time against the project.

• In the event the project manager and Functional Managers are unable to complete the allocation of resources, the project manager should escalate the issue to the PAC.

In Planning, you identify the resources you need. In Executing, you allocate the resources

Develop Project Team

• People are the wildcards on projects

• How you manage and integrate people into a team environment is important to your success as a project manager

• Good team dynamics start with an effective project manager

• Establishing an effective team involves defining a clear purpose, goals, dependencies and accountability

• Enhancing the communication and interactions among the team members helps with the ultimate successful completion of the project

Manage Project Team

• Solicit the approval of the Functional Manager when you ask the person to accept responsibility for a task. When you do so correctly and at the right time, you can improve the chances for success.

• If you run into trouble with getting the resources to get the work done, you need to coach them like any Functional Manager will coach their team members.

Distribute Information

• The main focus here is to deliver information to the project stakeholders • Project information can be distributed using a variety of tools, including:

– Hard-copy

– Meetings

– Electronic databases

– Electronic communication such as e-mail,

– Management software,

• Creating efficient flow of communication from the routine status reports to the red flag issues is essential for creating a positive workflow

Manage Stakeholder Expectations

• Managing stakeholder expectations encompasses communicating with stakeholders to determine their expectations and address issues in a timely manner

• Project manager should understand that managing stakeholder

communication is just as important as communicating with the project

Content Overview

• Project Management Survey • Introduction

• Product & Project Life Cycle • Initiating Process Group • Planning Process Group • Executing Process Group

• Monitoring & Controlling Process Group • Closing Process Group

Monitoring & Controlling Process Group

• The Monitoring and

Controlling processes work very closely and have a high degree of interactions with each other.

• The Monitoring and Controlling processes

concentrate on confirming that the deliverables meet the planned specifications and requirements

• The processes with dotted lines will be discussed in “PM 201” and/or “PM301”. Control Quality Monitor and Control Project Work Perform Integrated Change Request Verify Scope Control Schedule Control Scope Control Cost Control Risk

Monitoring & Controlling Process Group

Control Procurements

Monitoring and Controlling Process Group

• The Monitoring and Controlling process oversees all the tasks and metrics necessary to ensure that the approved project is within scope, on time, and on budget

• This process involves comparing actual performance with planned

performance and taking corrective action to yield the desired outcome when significant differences exist

• Monitoring and Controlling process is continuously performed throughout the life of the project

Monitor and Control Project Work

• This is the process of tracking and reviewing the progress to meet the performance objectives defined in the project scope

• Monitoring includes status reporting, progress measurement, and forecasting

• Performance reports provide information on the project’s performance with regard to scope, cost, and schedule

• In summary, Monitor and Control Project work is all about managing the way that the project scope is executed

Change Request (1 of 5)

• A change request is a formally proposed change to the scope of a project as a result of a proactive response to a risk, a reactive response to an issue, or a requested modification due to market changes, new ideas, opportunities.

• If the requested changes would affect the current gate and would

jeopardizing the ability of the project manager and the Project Core team to deliver within the tolerance of the approved project scope, cost, and schedule, then the project manager shall request an Interim Gate Review to seek approval

• If the changes are approved, the project manager and the project core team then need to manage the effects of those changes on the Triple Constraint elements: scope, budget, and schedule

Change Request (2 of 5)

Quantifying the Change Request

• The project manager and the Project Core Team shall investigate the scope change request and define the impact to scope, cost, and schedule of the request

• The investigation shall include analysis of risks/opportunities associated with the scope change requested

• Risk contingencies should be documented and managed through the change request process!

Change Request (3 of 5)

Quantifying the Change Request (continued) • Be aware of scope creep!

– Scope creep – also known as feature creep, focus creep, creeping functionality and

kitchen-sink syndrome – can sneak up, alter and destroy a project.

– Scope creep is the piling up of unapproved changes that by themselves are manageable,

but in aggregate are significant.

– You can expect there to be a degree of scope creep in most projects, therefore it is

important to use the change request process to document and manage ALL changes. Every single change that is requested will need to be reviewed and approved by the Project Manager.

– Gold Plating: This term is given to the practice of exceeding the scope of a project in the

Change Request (4 of 5)

Defining Response Options

• For a scope/change request, the Project Manager and the Project Core Team shall determine the most appropriate project response:

– Accept the request

– Reject the

– Defer the request

Implementing Response Plans

• For accepted requests, the Project Core Team shall brainstorm multiple methods to deliver the required attributes driven by the change request • Project manager is to ensure that the project scope, budget, and schedule

are updated to reflect the approved changes

• If the project schedule is updated to reflect approved change control, a new baseline schedule may be required

Change Request (5 of 5)

Change Request form that you can use to document and manage ALL changes

Change # Requestor Date Describe the Change Being Requested

Describe Reason for the

Change Describe any Alternatives Considered Describes any Technical Changes Required to Implement the Requested Change Describe Risks to be Considered for this Change Estimated Cost Needed to Implement the Change

Scope Cost Schedule Approved Rejected Deferred Change

Board Approval Date Change Category Project Name Decision

Verify Scope

• The primary purpose of this process is to formalize acceptance of the completed project deliverables

• The deliverables are examined and verified to the acceptance criteria as outlined scope baseline

• If the deliverables are satisfactory, the output is Accepted Deliverables. • If the deliverables are unacceptable, the project manager and project core

team should identify root cause and determine corrective actions and/or how to repair the component defects

• Often, these corrective actions will result in changes to a project’s scope, cost, or schedule. It is imperative that all of the findings are detailed and communicated to the stakeholders so changes can be reviewed, approved, and implemented in the project scope plan

Control Schedule

• Control Schedule is the process of monitoring the status of the project to update project progress and managing changes to the schedule baseline • The Project Manager is the owner of the master schedule

• Meet with Project Team members individually as required to see how their tasks are progressing

• Review the master schedule at each Core Team meeting.

• Track progress of executing the schedule (identify delays, accelerations, changes, and preparation for upcoming events)

• This process is carried out throughout the project after the schedule has been developed and continues until all schedule activities have been completed.

Control Cost

• Control Cost is the process of monitoring the project budget and managing changes to the cost baseline

• The project manager needs to monitor and control the budget and to make sure that you compare the actual cost with the baseline cost in order to make sure your project stays within funding limitations

• Once you find that there is a variance from the baseline you must

determine what caused the variance and therefore decide what the most appropriate response is.

– Don’t just wait for variances to occur, but influence and control the factors that

contribute to the variance.

• This process is all about cost variances. A positive variance is good, a negative variance is bad.

Report Performance (1 of 10)

• Reporting on project performance is a vital communications need of project stakeholders to keep them abreast of progress and the resources used in accomplishing the project objectives

• Managing a successful project involves a clear understanding of the health of a project’s scope, cost, and schedule

• When reporting performance metrics, be sure to include the kinds of information and level of detail required by the project stakeholders.

• The frequency of reporting this information is decided according to project stakeholders

• The more common measures of project performance are:

– Progress reporting – describing the accomplishments of the project team for a given time

period.

– Status reporting – describing where the project is at a given point in time.

– Project forecasting – predicting the future of the project based upon past information and the

Report Performance (2 of 10)

Schedule Progress

• Two popular methods for tracking progress of tasks or activities in a project schedule: by percent complete and by work remaining

– Tracking Tasks by Percent Complete:

– If a task is given two weeks to complete and one week has already passed, then the task

is assumed to be 50% complete

– Progress is assumed to be spread evenly throughout the time allotted and without

interruption. Unfortunately, most projects do not work this way

– Tracking Tasks by Work Remaining:

– The resource assigned to the task must assess how much real work is remaining and if

that work can be completed by the schedule date

– What a project manager really wants to know is:

• "How many total days of real work does the task require?"

• "How many days of real work are remaining?", and

• "Can the remaining work be done by the scheduled finish date?“

Asking these question regularly allows the project manager to get a better sense of true percentage

Report Performance (3 of 10)

RAIL (Rolling Action Item List):

• How can the project manager ensure that his/her team does not find itself behind schedule or delayed from reaching success?

– By using a Rolling Action Item List (RAIL) as a tool to drive results

• How to Create a RAIL (most common format Excel)?

Action item #:

• This is simply a tracking number for each action item

– Action Description:

• This should be as short as reasonably possible. It needs to be action oriented and descriptive enough so that you don’t

forget what you were talking about during past meetings

– Owner:

• This needs to be designated to a specific individual, not a team

• This doesn't mean that the person designated with the responsibility is the one doing all or any of the work. However, the

owner is responsible for making sure it gets done within the time frame mentioned

– Date Assigned/Due Date:

• Ask the action owner when they can commit to getting the action done. This is part of the buy-in process (i.e.

accountability)

– Note: The due date should never change once it is agreed upon. Any updates to the original due date should be reflected in the status/notes section

– Status/Notes:

• This is where you can provide interim updates on the status and any issues that may impact rescheduling of the

action. This is a great way to communicate updates to the team

– Open/Closed:

‒ This is to indicate whether the action item is open or closed

Report Performance (4 of 10)

Example of Project RAIL:

Action Item #

Description Owner Date Assigned Due Date Status/Notes Status (Open/Cl osed)

119 Engineering to investigate impeller material options (i.e. WCB vs. cast iron). Jessica Phillips 8/7/2013 11/22/2013 12/05/2013: Preliminary results are back (snap shot). Full report not available yet. From the preliminary report, it appears that we can't use the WCB material for impeller with cast iron components (i.e. diffuser and stage casing). If we have to use WBC material for impellers, then we need to add a wear ring. Final report will be published by 06-Dec-13. Ghassan to schedule a separate meeting to discuss test results

11/14/2013: Unfortunately the testing will not take place until the week of Nov 18th. They wanted to wait till they had all of the test pieces and their test guy won't return to the office until next week. Should have results by the end of the week, 22-Nov

10/31/2013: Received material on 31-Oct. Overnight the material to test facility in Texas. Expect results by end of week 08-Nov

10/24/2013: Material will be in by 25-Oct. Testing will start the week of 28-Oct

Open

173 Oracle/Flowselex: Jim to publish an advance copy of the part selection charts for the 2", 3",

and 4" RSX for Ductile, Chrome, and Duplex Jim Allen 8/28/2013 8/28/2013 8/28/2013: Jim published copies of the part selection charts for the 2", 3" and 4" RSX Closed 175 Component Stocking/Inventory Strategy: Supply Chain to advise the component stocking

strategy for discharge casing, suction casing, stage casing, diffuser, impeller, and flanges. The strategy to include: which parts, what quantity, what machining configuration, where, which materials, and lead-times

Serge Ireland 8/8/2013 11/14/2013 12/05/2013: A call between Supply Chain and Catherine is setup for Monday 8-Dec-13 to finalize the strategy. Serge will provide Catherine all she needs to finalize the stocking strategy for machined components. The strategy will be communicated to the sites by mid December. Feedback from site by early Jan-14

11/14/2013: The strategy for machined components is still being worked. A meeting is scheduled for 19-Nov-13 between Catherine and supply chain to finalize the plan. Afterwards, Catherine and Serge will have all the information needed to finalize the stocking plan and publish to sites by end of Nov. 10/24/2013: Catherine and Serge are formulating the plan. Supply Chain is fine tuning the plan. The plan is to finalize and publish the sourcing strategy for machined components by mid November. For cast components the strategy is already defined and published. In the last two weeks of November, Supply Chain will communicate the stocking program with sites. Sites to provide feedback within two weeks

10/17/2013: Supply chain shared the strategy with each of the sites. Coimbatore prefers to source locally instead of stocking. Catherine and Serge will work with each of the sites through the specifics

Open

177 Ship one pump model to Arnage for tear down and evaluation. Size and material type to be finalized at a later time

Ghassan Gebara 9/5/2013 3/30/2014 09/05/2013: Place holder Open

Items highlighted in Gray are considered closed. Closed items are hidden Items highlighted in Red are critical

Report Performance (5 of 10)

Project Forecasting

• Project forecasting is used to predict a projects status, progress and health. Forecasting answers questions such as:

– How long will it take to finish this project based upon the current information and trends?

– How much more money will be needed to finish this project based upon the current spend trend?

– What additional resource commitments will be needed?

Project Variance

• The difference between all estimated and all actual dollars. It is calculated by subtracting the Forecast Total from the Total Current Budget.

– A positive variance means that the actual cost of the product is less than the budgeted cost.

– A negative variance means that the actual cost of the product is greater than the budgeted cost.

• Whether positive or negative variance, the Project Manager needs to understand what is causing variance and take proactive steps to keep it under control.

• The Project Manager must be able to explain the cause of variance to stakeholders and determine if corrective actions need to be taken to maintain the project’s

Report Performance (6 of 10)

Time Reporting (Salary Expense)

• In order to properly track the progress of work, time reporting is needed to gather hours spent on assigned tasks

• Resources that are assigned work on a project must enter in a timesheet (manually or directly into Planview) the time they spent on their tasks. • It is important that resources accurately record their time

• Another component of accuracy, is to ensure that resources are reporting against the right task

• Resources are encouraged to capture their time on a weekly basis!

• Accuracy of timesheet information allows the project manager to better understand what’s happening on the activity and adjust the schedule and resource workload accordingly

Report Performance (7 of 10)

Time Reporting (Salary Expense) (continued) • Monthly timesheet template:

Report Performance (8 of 10)

• Capital and Non-Salary project expense report (New Template):

Project status indicators and gate dates are being managed on Planview by the project manager

Platform: Other Template rev 5 - June 21 2013

Primary Business Unit: Project ID:

Project Name:

Project Manager: The Project Manager listed here will be contacted if we have questions

Currency USD

Select Month: Business Unit Amount Business Unit Amount Business Unit Amount

0 0 0 E xp en se T yp e Capital Non Salary Development Other Expense Professional Services Travel Production Other Capital

RESEARCH & DEVELOPMENT - Monthly Project Expenses Report *****PLEASE DO NOT CHANGE THE FORMAT OF TEMPLATE***********

Totals:

Capital and Non -Salary Expenses The same currency should be used for all amounts in a month

June-13

Note: Capital amounts must be over $5k to be considered

capital

Select by using Drop Down List

Enter the Business Unit that paid for the expense - in order that the correct BU gets compensation for this. There is room for three different BUs for the same type of costs per month. Contact the R&D PMO if you need additional columns.

When filled out, please upload this document into the R&D PMO Sharepoint "Project Status" folders, in the appropriate month: http://teams.flowserve.com/Corp/RnDProjectManage mentTransformationProgramNA12194/SitePages/Hom e.aspx?RootFolder=%2FCorp%2FRnDProjectManageme ntTransformationProgramNA12194%2FShared%20Doc uments%2FIPO&FolderCTID=0x0120003D1D24D0CB02

654BA9AE6A4670AE5D21&View={4152C0A7-0B25-Report Performance (9 of 10)

• Example of Capital and Non-Salary project expense report:

Platform: IPO

Primary Business Unit: Chesapeake Project ID: CHE-013

Project Name:

Project Manager: The Project Manager listed here will be contacted if we have questions

Currency USD

Select Month: Business Unit Amount Business Unit Amount Business Unit Amount

CHE $75,550.00 CHE $61,900.00 CHE $121,275.00 CHE $18,909.50 CHE $12,291.50 CHE $81,112.50 CHE $29,137.50 CHE $69,195.00 CHE $22,410.00 CHE $64,483.00 CHE $22,050.00 CHE $100,000.00 CHE $19,444.00 CHE $1,395.00 CHE $3,780.55 $702,933.55 0 0

Suction Casings/Disch Casings (Iron) Impellers Diffusers Stage Casings Total Motor November-13

RESEARCH & DEVELOPMENT - Monthly Project Expenses Report *****PLEASE DO NOT CHANGE THE FORMAT OF TEMPLATE***********

E xp en se T yp e

Capital and Non -Salary Expenses

RSX (New ring section pump) Ghassan Gebara

Note: Capital amounts must be over $5k to be

considered capital The same currency should be used for all amounts in a month

Capital

Non Salary

Production (Patterns/Tooling):

Other Capital (Test Lab Upgrade)

Development

Other Expense (1-Oct - 3-Oct-13) Professional Services VFD Heat exchanger Alignment laser Electrical contractor Hydro upgrade

VFD for Heat Exhanger Pump Motor Total

Face-to-Face meeting in Chesapeake Suction Casings/Disch Casings (Steel) Suction Casings/Disch Casings (Steel) Brg Hsgs, Grease Covers, Oil Reservoir

$400,176.00

$298,977.00

Totals: Travel