PROJECT MANAGEMENT BASICS

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PROJECT MANAGEMENT

BASICS

1 DAY COURSE

TUTOR: SEAN PETRALIA C.Eng, CITP, FBCS

GTA University Centre

Contact: [email protected] Visit: //www.maroonconsult.com/

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About You

▪

Introductions

▪

Your reasons

▪

Your learning aims/

objectives

(3)

Objectives of Course

▪

Basic understanding of

projects:

•

Theory

•

Techniques

•

Tools

▪

Learning in a

non-examined environment

(4)

Topics Covered

1.

Introductions 09:00 - 09:15

2.

Definition of a project, project management and the project lifecycle 09:15 - 10:00

3.

Work Breakdown Structures (WBS) 10:00 - 10:30

4.

Coffee Break 10:30 - 10:45

5.

Cost Estimating & tracking 10:45 - 11:00

6.

Network Analysis, PERT & CPA 11:00 - 11:45

7.

Scheduling (Gantt Charts) 11:45 - 12:00

8.

Resourcing (OBS, Resource Smoothing) 12:00 - 12:15

9.

Lunch 12:15 - 12:40

10.

Project Risks 12:40 -13:00

11.

Project Plan 13:00 - 13:15

12.

Monitoring & Controlling a Project 13:15 - 13:30

13.

Issues & Change Control 13:30 - 14:00

14.

Questions & Answers 14:00 - 14:15

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SECTION 1 – Project

Management Basic Concepts

(6)

A

unique

,

transient

endeavour undertaken to

achieve a desired

outcome

British

Standards

6079

To meet specific

objectives within

defined schedule, cost

and performance

parameters

Association of

Project

Management

…is a

temporary

endeavour undertaken to

create a

unique product or

service

Project

Management

Institution

Project Management Primer

(7)

Scope, Time,

Cost, Quality,

Stakeholder

expectations,

Requirements

Knowledge

Skills

Tools

The application of…

Whilst…

1.2 What is Project Management? –

(8)

•

Complex nature of business

today

•

More cross functional

efforts

•

Need for greater

accountability

•

Stronger focus on results

“There is nothing permanent except change.”

HERACLITUS OF GREECE, 513 B.C

. Rogers’ Student’s History of

Philosophy

Current Issues

•

Projects fail to deliver as

expected

•

Cost over-runs/missed

deadlines

•

Challenging workload – “do

more with less”

1.2 What is Project Management?

-Why Project Management?

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1.3 Project Life Cycle

▪

Project Life Cycle defines

:

▪

Technical work performed in

each phase

▪

Who is involved in each phase

▪

Exit/Entry criteria

▪

Project Phases can overlap

– “Fast

Tracking”

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(12)

(Resources)

(13)

Scope

Cost

Time

Cost

Time

Scope

Tip: Scope is probably most fluid element, keep it as small as possible/allowable

Pick any 2

Quality

Fixed on time

Fixed on cost

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Project management is managing change

Bringing order to chaos

(15)

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2.2 Project’s within organisational

structures - comparison

(18)

Product based

Function based

PM

’s L

eve

l of

Inf

lue

nce

Project Management Primer

(19)

Propose a project team structure that also includes a project board

(20)

1.

Project Plan & Documentation

2.

Planning Techniques & Tools

i.

WBS

ii.

Network analysis & Critical Path

iii.

Scheduling

iv.

OBS/Resources

(21)

WP1

WP3

WP2

-PRG

DEP1

R1

S

P

S

N

S

P

Mth

1

WP1

2

3

4

5

6

Total

WP2

Total

Cum

3

1

10

2

12

5

3

22

5

10

13

16

19

22

£/$ - budgets

1. What - WBS

2. How - Network

3. When – Gantt Chart

5. How much - CBS

4.Who – OBS

EVA

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3. Identifying the Tasks – How?

▪

Brainstorm session – freethinking to identify tasks

▪

Structure tasks – order tasks into a work breakdown

structure (WBS)

▪

Cross-Reference List

▪

Research – past similar projects

▪

Experts - consultants, other PM’s, specialists

▪

Granularity – what level?

▪

Too high – then difficult to estimate

▪

Too Low – complex to difficult to manage

▪

Fix at about tasks that take no more than a week

(24)

Project Management Primer

▪

Identify the major task categories

▪

Identify sub-tasks, and sub-sub-tasks

▪

Use verb-noun to imply action to something

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Table

1. Design

Table

2. Obtain

Materials

3. Construct

Table

4. Finish

Table

5. Install

Table

1.1

Determine

Dimensions

1.2

Complete

Drawings

2.1 Calculate

Materials

2.2 Purchase

Materials

3.1 Prepare

Parts

3.2

Assemble

Parts

4.1 Sand

Table

4.2 Stain

Table

(26)

Replace System Hardware

1. Develop RFP

2. Select Vendor

3. Train Staff

4. Implement Hardware

1.1 Assess Needs

1.2 Analyse Needs

1.3 Write RFP

1.4 Finalise with Purchasing

2.1 Research Vendors

2.2 Research Sites

2.3 Select Vendors to mail RFP

2.4 Review Proposals

3.1 Identify training Plan

3.2 Schedule Training

3.3 Train Sys admins

4.1 Schedule Installation

4.2 Prepare Site

4.3 Arrange Vendor Support

2.5 Rank Proposals

4.4 Configure System

4.5 Install System

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Case study - Produce a WBS

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▪

Costs identified from WBS – all tasks carry a cost

▪

Budgets should be estimated from WBS then refined through

the planning stage

▪

Part of process is deciding on procurement strategy as there

may opportunity to reduce costs and leverage contracts

▪

Costs are generally:

▪

Resource related – staff time, contractor time

▪

Procurement costs – purchasing a system

▪

Service costs – consultancy, specialist, Legal

▪

Administrative -

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Indirect Costs

■

Your people’s time and effort

■

Estimated time on project

■

Estimated cost based on

hourly rate

■

Other’s time and effort

■

Opportunity cost

■

What projects or tasks are

NOT going to get done in

order to get this project

done

?

Year 1 Year 2 Year 3

Direct Costs

▪

Hardware

▪

Software

▪

Contractor fees

▪

Estimated hours

▪

Hourly Rates per contractor

▪

Various contractor rates

▪

Training

▪

Fanfare

▪

Other

TOTALS

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30

60

20

45

Good day

About

average

Bad day

90%

probability of

hitting this

point

10%

probability of

hitting this

point

Key point:

•

Don’t quote average as

overall probability of

hitting targets is only

10%

•

Go midway between

av and bad

•

Never quote ‘on a

good day’

(32)

▪

Key elements for tracking

are:

o

Expected/planned cost

o

Committed costs

o

Actuals (cash spent)

o

Purchase Order & invoice

control

o

Managing cost of change

(impact, approval etc.)

4. Budget Tracking

Planned

Committed

Actual

£

Task estimated

Purchase Order Raised

Invoice paid

Spreadsheet Tracker Example

When contract

signed, PO gets

raised and cost

item moves to

committed

When PO get

paid cost moves

to actual

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PERT - Program Evaluation & Review Technique

CPM - Critical Path Method

1. Sequence tasks

2. Work out critical path – longest path through network

(35)

Start

0

Task 1

2w

Task 2

4w

Task 3

1w

Task 4

1w

Task 6

1w

Task 7

1w

Task 5

2w

Task 8

2w

Finish

8w

4 weeks

8 weeks

CP is task 2, 5, 8 totalling 8 weeks

Project Management Primer

5. Network example

(36)

▪

The critical path is the

longest route

through the

network (has the least float and is sensitive to

slippage)

▪

Milestones that impact downstream milestones and

the overall timeline of project

▪

If you miss a CP milestone then the whole project is

delayed

(37)

5. Install

Table

1.1

Determine

Dimensions

1 day

1.2 Complete

Drawings

3 days

2.1

Calculate

Materials

2 days

2.2

Purchase

Materials

1 day

3.1 Prepare

Parts

1 day

3.2

Assemble

Parts

2 days

4.1 Sand

Table

2 days

4.2 Stain

Table

2 days

Start

4 days

3 days

11 days

10 days

CP is 1.1, 1.2 route

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Case study – produce a network diagram and identify the critical path

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▪

Milestones

– simplest method, identify the key events

useful but limited

▪

Bar Charts

(Gantt)

▪

Spreadsheets

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Milestones:

These are represented by a diamond symbol. A milestone marks the

end of a piece of work or phase of the project. They are often fixed dates or

important dates that you need to be aware of.

Dependencies:

These are links between tasks. For example, you can’t test the

software until the development is finished, so development and testing are linked.

Links are shown with lines on the Gantt chart. The arrow at the end of the line

shows which way the dependency goes. In other words, the arrow points to the

task that comes next.

Summary tasks:

A summary task is an ‘umbrella’ task that is made up of various

individual tasks. It is a good way of grouping tasks together, especially as part of a

project stage or phase.

You can ‘roll up’ your tasks (in other words, hide them from view) so that only the

summary task is on show. This is really helpful when you have hundreds of tasks, as

it lets you focus on the important ones for now. For example, you can roll up all the

5.Gantt Chart

(41)

Today’s date:

You can display a vertical line that shows you today’s date at a

glance.

5.Gantt Chart

From all the information on the Gantt chart you can easily see:

▪

The start date of the project

▪

What the project tasks are

▪

When each tasks starts and finishes

▪

How long each task will take

▪

How tasks group together, overlap and link with each other

▪

The finish date of the project.

And don’t forget that the columns – the right-hand section of the Gantt chart – give you even

more information.

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Case study - Produce a Gantt chart

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▪

OBS – who will do the project and how are they organised

(team structure etc.)?

▪

What are their skills and what do they require?

▪

What is their availability?

▪

Responsibility matrix may be needed – must be signed up to

(RACI)

6. Resourcing – Organisation Breakdown

Structure

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6. Resourcing: Histograms & Smoothing

(47)

(48)

▪

Probability of an event which will

impact T,C,Q

…which must be managed

(49)

Project Management Primer

▪

Business Risk

◦

Benefits

▪

Project Risk

◦

Time, cost & quality

(50)

▪

Business case viability

▪

Strategy

▪

Consequences of failure

▪

Business area stability

▪

Programme requirements

▪

Legislation

▪

Politics

▪

Impact on host org

▪

Not meeting expectations

(51)

▪

Contractual

▪

Project Culture & Environment

▪

Skills

▪

Requirements

▪

Reality

▪

Quality

▪

Complexity

▪

Innovation

▪

Third Party

(52)

1. Define Project - Clear understanding of what

is required

2. Define Risk Management Process

3. Identify risk - brainstorming, past projects,

experts

4. Ownership - allocate risk to person who can

resolve

5. Estimate - Identify the likelihood and impact

of each register - use risk register

6. Evaluate - Select most serious risk (risk matrix)

7. Develop responses –

8. Incorporate actions into planning - update risk

management plan

9. Continuous management - regular review,

monitor triggers

a. accept,

b. reduce,

c. transfer,

d. avoid,

e. contingency plan,

f. contingency allowance

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WHO?

•Stakeholders

•Project team

•Experts

WHEN?

•Prior to start

•Project start

•Throughout

lifecycle

Techniques?

•Brainstorming

•Workshops

•History (lessons learned)

•SWOT

•Assumptions

(54)

Reduce

Avoidance

Develop

Strategy

Continue to

Monitor

Contingency

Develop

P

roba

bi

li

ty

Low

High

Probability/Impact

(55)

Risk Details

Probability

Impact

Action

Status

Owner

RISK LOG

Proximity

To mitigate, actions are:

▪

Prevent

▪

Reduce

▪

Transfer

▪

Contingency

▪

Accept

▪

Close project

(56)

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PM'S VISION,

STRATEGY & ALL

ASPECTS OF

PROJECT

MANAGEMENT

ANSWERS THE

'HOW', 'WHO',

'WHEN', 'WHERE'

& 'HOW MUCH'

SUMMARISES

THE 'WHY' AND

'WHAT' OF THE

BUSINESS CASE

OWNED &

UPDATED BY

TEAM - VERSION

CONTROL,

BASELINE ETC.

CONTAINS 3

AREAS OF

INFORMATION:

'PLANS', 'PEOPLE',

'STRATEGY'

8. Fundamentals of Planning - Project

Management Plan/PID

(58)

ToRs

Environmental

Plan

H&S Plan

Quality Plan

Time Management

Plan

Cost Management

Risk Management

(59)

1.

Business Case

2.

Initiate Project – Kick-off meeting, Project Brief

3.

Work Breakdown Structure

4.

Estimate & Cost

5.

Schedule – PERT, Critical Path, Gantt

6.

Resourcing – smoothing, OBS etc

7.

Identify Key Project Risks

8.

Assess task durations

9.

PID/PMP – Final sign-off approval from sponsor/s

Start Project – Implementation phase

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1.

Introduction

2.

Reporting and documentation

3.

Delivery

4.

Budgets & tracking

5.

Risks

6.

Requirements

7.

Quality

8.

Change Control

9.

Issues

(62)

▪

Work packages

▪

Set regular progress reporting

▪

Set regular status meetings

▪

Catch ‘things’ early

▪

Document all status reports, update plans and report to

stakeholders/PM -

o

Use of framework methodology (processes, documentation) such

as PRINCE 2, BS 6079-1:2002, Agile etc

.

(63)

▪

Checkpoint meetings

▪

Project Board Meeting

▪

Risk/Issues Meeting

▪

Change Control Meeting

▪

Ad-hoc meetings/reports

▪

Product delivery

▪

Exception report/Meeting

(64)

▪

Check

o

Is it within tolerance? Remember 80-20 rule

o

Any rework? Benefit to business, watch scope

o

Can product/task be signed-off (‘snagging list’)

(65)

(66)

▪

Issues are problems, events that have already happened and

are impacted the project (may have previously been a risk!)

▪

Log Issue: issue raised (decision, open/closed)

Will lead to a…..

▪

Change Request

▪

Details

▪

Evaluation

▪

Decisions

▪

Status

10. Issues

(67)

10. Stakeholders & Changes

(68)

Issues Logged Change Request Resolved Impact assessed (T/C/Q) Decision Delay Refuse Implement Product Updated

(69)

Principles of Project Management