All PMP

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PROJECT MANAGEMENT FRAMEWORK

Project Management

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Agenda

 Definition of a Project

 What is Project Management

 What is Program Management

 What is Portfolio Management

 Project Management Office (PMO)

 The Triple Constraints

 Stakeholder Management

 Organization Structure

 Project Life Cycle vs. Product Life Cycle

 Quiz

(3)

What is Project?

 A project is a temporary endeavor undertaken to create a unique product, service or result.

 Temporary means that a project has a definite start and end date.  Temporary does not necessarily mean short in duration.

 A project comes to an end when either its objectives are met or its objectives can not be met because of various reasons.

 Project work is different from operational work. Operations is doing ongoing repetitive work. For example, the work of an office receptionist can be classified as operational.

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Project versus Operation

Project work is different from operational work. Operations is doing ongoing repetitive work. For example, the work of an office receptionist can be classified as operational. Both projects and operations are carried out by people, both require planning, both require management, and both are constrained by a fixed amount of budget, resources, and timelines. Projects require project management, while operations require business process management or operations management. Projects and Operations will

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Project versus Operation

PROJECT

• Temporary • Output: Unique • Purpose: Attain its objective and then terminate • Concludes when its specific objectives have been attained

OPERATION

• Ongoing • Output: Repetitive • Purpose: Sustain the business • Adopt a new set of objectives and the work continues

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Typical Sequence of Phases in a Project Life Cycle

INITIAL INTERMEDIATE FINAL

Charter Scope Statement Plan Baseline Progress Acceptance Approval Handover Product Idea _{Project Management Team} Inputs Phases Project Management Outputs Project Deliverable

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Portfolio – Program – Project

Portfolios

Program  Strategies and priorities Progressive elaboration Program  Governance

 Disposition on request changes

 Impact from changes in others portfolios, programs or project Project Project Project Project  Performance reports  Change requests with

impact on other portfolios, programs, or projects

 Performance reports  Change requests with

impact on other portfolios, programs, or projects

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What is Project Management?

 Project management is the application of knowledge,

skills, tools, and techniques to project activities to meet

the project requirements.

 Project management is accomplished through the

appropriate application and integration of the 47 project

management processes logically grouped into the 5

process groups.

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What is Program Management?

 A program is a group of related projects managed in a

coordinated way to obtain benefits and control not

available from managing them individually.

 For a group of projects to be classified as a program,

there must be some value add in managing them

together as a program. If there is no value add, they

should not be classified as a program.

 A project may or may not be part of a program, but a

program will always have projects.

 Program management focuses on the project

interdependencies and helps to determine the optimal

approach for managing them.

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Project Management Office

 The PMO is an organization structure. It’s not a person such as a project manager.  The PMO usually has one of the three roles mentioned below:  Providing the policies , methodologies and tools & templates for managing projects within the organization.  Providing support and training to others in the organization on how to manage projects.  Providing project managers for different ongoing projects in the organization.  Some of the functions of a PMO may include:  Managing interdependencies between projects  Selecting, managing, and deploying shared or dedicated project resources  Terminating projects  Coordinating communication across projects

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Project Constraint – NOW!

 The idea is that you need to balance scope (the features that

will go into the software, and the work needed to build

them), time (how long it takes to build the software), and

cost (in money or hours) in order to get your project to the

level quality that you need. Any time your project changes,

you'll need to know how that change affects all three

constraints.

 The funny thing about the triple constraint is that a lot of

project managers don't actually learn about it any more.

Instead, it's been replaced with a wider set of project

constraints, including (but not limited to) time, cost, scope,

resources, quality, and risk. Jenny came up with this really

cute graphic for it when we were working on the

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Stakeholder Management

 Stakeholders are people or organizations who are

actively involved in the project or whose interests may

be positively or negatively affected by the performance

or completion of the project.

 Examples of stakeholders include project managers,

customers, sponsors, the PMO, functional managers,

the project team, and operations management.

 Stakeholder management requires:

– Identifying both internal and external stakeholders – Determining stakeholder requirements – Determining stakeholder expectations

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Organizational Structure

There are three types of organizational structures based on the authority of the project manager. They include: – Functional: The organization is grouped by areas of specialization within different functional areas (e.g. accounting, marketing, and engineering). Each employee typically reports to a functional manager. – Projectized: The organization is often grouped by organizational units called departments. These groups either report directly to the project manager or provide support services to the various projects. – Matrix: This is organization is a blend of both the above types. The three matrix forms are strong matrix, weak matrix, and balanced matrix. – In a strong matrix, power rests with the project manager. In a weak matrix, power rests with the functional manager. In a balanced matrix, the power is shared between the functional manager and the project manager.

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Project Life Cycle vs Product Life Cycle

 A typical product lifecycle starts with the conception of the product and goes until its withdrawal from the market or when it becomes obsolete.  A product can require or spawn many projects over its life. For example, a project during the product conception phase could be “Determine customer’s need” and a project during the product maturity phase could be ”Do competitor analysis”.  A project has its own lifecycle. The lifecycle depends upon the control needs of the performing organization or the organization’s preference defined in their project execution methodology.  For example, typically in the IT industry, the project lifecycle can be “Requirement Analysis ‐ High Level Design ‐ Detailed Design ‐ Coding ‐ Testing ‐ Installation ‐ Hand over to Operation”.

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PROJECT MANAGEMENT PROCESSES

Project Management

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Agenda

 Project Life Cycle vs Project Management Process.  The Five Project Management Process Groups.

 Process Groups, Knowledge Areas and Project Management process Mapping

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Project Life Cycle Vs Project Management Process

 Project life cycle – “What to do to get the work done”

 Project management process – “What to do to manage

the project”

 Project management processes are grouped in 5

categories:

– Initiating Process Group – Planning Process Group – Executing Process Group – Monitoring & Control Process Group – Closing Process Group

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Project Management Process Groups

Initiating Processes Closing Processes Planning Processes Executing Processes Enter Phase Close Phase Monitoring and Controlling Processes

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5 Process Groups

Project Management Process Groups

Initiating Planning Executing Controlling Closing

9 Knowledge Areas

47 Project Management Processes

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Process Iteration Groups

Planning Processes Group Initiating Processes Group Level of Process Interaction T i m e Start Finish Executing Processes Group Monitoring Processes Group Closing Processes Group

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Initiating Process Group

The Initiating process group, as its name implies, occurs at the beginning of the project and at the beginning of each project phase for large projects. Initiating acknowledges that a project, or the next project phase, should begin. This process group grants the approval to commit the organization’s resources to working on the project or phase and authorizes the project manager to begin working on the project. The outputs of the Initiating process group, including the project charter and identification of the stakeholders, become inputs into the Planning process group.

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Planning Process Group

The Planning process is the process

group of formulating and revising project goals and objectives and creating the project management plan that will be used to achieve the goals the project was undertaken to address. The Planning process group also involves determining alternative courses of action and selecting from among the best of those to produce the project’s goals. This process group is where the project requirements are fleshed out and stakeholders are identified.

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Planning Process Group

Activity during planning process  Refine requirements to make it more specific  Define Project deliverables and work required to complete them  Get Stakeholder approval on scope  Select Project Team  Break down work into smaller manageable pieces (WBS)  Develop the project schedule  Determine project quality standards  Determine Project Team’s Roles & Responsibilities  Complete risk identification, analysis and risk response planning  Determine what needs to be purchased  Determine how to execute and control the project

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Executing Process Group

The Executing process group involves putting the project management plan into action. This process group involves coordinating people and resources, managing stakeholder expectations, as well as integrating and performing the activities of the project in accordance with the project management plan. The Executing process group will utilize the most project time and resources, and as a result, costs are usually highest during the Executing processes.

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Activities during Executing

 Manage Stakeholder’s satisfaction

 Complete work packages

 Implement Quality Assurance

 Produce project reports

 Remove project bottlenecks

 Organize team building activities

 Organize training for team members

 Conduct project progress meeting

 Implement approved change, corrective action ,

preventive action and defect repair

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Monitoring & Controlling Process Group

The Monitoring and Controlling process group is where project performance measurements are taken and analyzed to determine whether the project is staying true to the project plan. The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes.

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Activities during Controlling

 Measure against the performances baseline

 Determine variance and take appropriate action

 Recommended changes, preventive and corrective

action

 Facilitate conflict resolution

 Identify root causes of problems

 Obtain formal acceptance for deliverables

 Administer contract with seller

 Control changes

 Conduct status review meeting

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Closing Process Group

The Closing process group is probably the most often skipped process group in project management. Closing brings a formal, orderly end to the activities of a project phase or to the project itself. The Closing Process Group consists of those processes performed to conclude all activities across all Project Management Process Groups to formally complete the project, phase, or contractual obligations.

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Activities during Closing

 Confirm all Project requirements are met

 Obtain formal signoff from customer

 Make Payment to all parties and update cost records

 Complete Contract closure

 Update lesson learnt database

 Measure Customer Satisfaction

 Handover Project deliverables to Operations team

 etc

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Closing Process Group

 Confirm all project requirement are met

 Obtain formal signoff from customer

 Make payment to all parties and update cost records

 Complete agreement closure

 Update lesson learnt database

 Measure customer satisfaction

 Handover project deliverables to user/operation team

 Etc

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Recapitulation

Initiating Process Executing Process Initiating Process Approved corrective & preventive action or change request requires re‐planning Integrated Change Control results in hanged Project Management Plan Business Need Monitoring & control process Closing Process

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PROJECT MANAGEMENT

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What is Project Integration Management

 Project integration management involves unification,

consolidation, articulation and integrative actions that

are crucial for successfully completing the project.

 Project integration management is high level work that

involves the project manager managing

interdependencies among the other knowledge areas.

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Key Role of the PM, Team and Sponsor

 The key role of the project manager is to perform

integration.

 The key role of the project team is to concentrate on

completing the project activities.

 The key role of the project sponsor is to protect the

project team from unnecessary changes and loss of

resources.

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Origins of Projects

Why a new project ?

A project may originate as a result of one or more of the

following categories of reasons:

– Business/legal requirements – Market Opportunities – Problems/Issues – Ecological impact – Social needs

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Project Selection Method

 Benefit Measurement Methods

– Scoring Models – Economic Models – Benefit contribution

 Constrained Optimization Methods

– Linear – Nonlinear – Dynamic – Integer – Multiple objective programming

 Expert Judgment

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Project Integration Management Processes

Project Integration Management Process Time Develop Project Charter Initiating Process Develop Management Plan Planning Process Direct and Manage Project Execution Execution Process Monitor and Control Project work Monitoring and Control Process

Perform Integrated Change Control Monitoring and Control Process

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Develop Project Charter

Develop Project Charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. Input  Project statement of work  Business case  Agreement  Enterprise environmental factor  Organizational process assets

Tools and Techniques

 Expert judgment

 Facilitation techniques

Output

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Develop Project Management Plan

Develop Project Management Plan is the process of defining, preparing and coordinating all subsidiary plans and integrating them into a comprehensive project management plan. Input  Project charter  Output from others process  Enterprise environmental factor  Organizational process assets

 Expert judgment

 Facilitation techniques

Output

 Project management plan

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Direct and Manage Project Work

Direct and Manage Project Work is the process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives Input  Project management plan  Approved change requests  Enterprise environmental factor  Organizational process assets

 Expert judgment  Project management information system  Meetings Output  Deliverables  Work performance data  Change requests  Project management plan updates  Project document updates

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Monitor and control Project Work

Direct and Manage Project Work is the process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives Input  Project management plan  Schedule forecast  Cost forecast  Validated changes  Work performance information  Enterprise environmental factor  Organizational process assets

 Expert judgment  Analytical techniques  Project management information system  Meetings Output  Change request  Work performance reports  Project management plan updates  Project document updates

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Perform Integrated Change Control

Perform Integrated Change Control is the process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition. Input  Project management plan  Change request  Work performance report  Enterprise environmental factor  Organizational process assets

 Expert judgment  Meetings  Change control tools Output  Approved change requests  Change log  Project management plan updates  Project document updates

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Close Project or Phase

Close Project or Phase is the process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase. Input  Project management plan  Accepted deliverables  Organizational process assets

 Expert judgment  Analytical techniques  Meeting Output  Final product, service, or result transition  Organizational process assets updates

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What is Project Charter

 Formally authorizes the existence of the project

 Provides authority to the project manager to spend

money and other corporate resources

 Defines the high level project requirements

 It is issued by the project sponsor

 It is broad enough not to require any changes during

project execution

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Develop Project Management Plan

 Developing the project management plan is the process of documenting the actions necessary to define, prepare, integrate and coordinate all the subsidiary plans. It also contains all of the performance measurement baselines.

 Examples of subsidiary plans include the Cost Management Plan, Time Management Plan, Human Resource Management Plan, Quality Management Plan, and Risk Management Plan.

 The Project management plan defines how the project is to be executed, monitored & controlled, and closed.

Inputs to Develop Project Management Plan

 Project charter

 Output from planning process group  Enterprise environmental factors

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Terms

Work Authorization System  A system for authorizing work or notifying team members (or contractors) that they may begin work on a project work package or activity Corrective Action  Any action taken to bring actual or expected future project performance in line with the relevant baseline in the project management plan. Preventive Action  While corrective action involves implementing actions to deal with actual or future deviations from the performance baselines, preventive actions focus on reducing the probability of negative consequences associated with project risks. Change Control System  A system for formally collecting documented procedures, paperwork, and authorized changes

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Direct and Manage Project Execution

Direct and manage project execution is the process of performing the work defined in the project management plan to achieve the project objectives Project Management Plan Direct and Manage Project Execution Approved Corrective or Preventive Actions or Changes New Changes Project Deliverables Work Performance Information Implement Corrective and Preventive actions and approved changes

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Monitor and Control Project Work

 Monitor & control project work is the process of tracking, reviewing and regulating the progress to meet the performance objective(s) defined in the project management plan.  The results of monitoring & control are recommended changes to the project as well as recommended corrective actions, preventive actions, and defect repair actions. Inputs to Monitor and Control Project work  Project management plan  Work Performance information  Enterprise environmental factors

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Perform Integrated Change Control

 Perform integrated change control process is the process of reviewing all change requests, approving & managing changes to the project

deliverables, organizational process assets, project documents and the project management plan.

 Process of making changes

– Evaluate impact – Create option – Get internal buy‐in – Get customer buy‐in

 Change Control Board

Inputs to Develop Project Management Plan  Project management plan  Work performance information  Change request  Enterprise environmental factors  Organization process assets

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Corrective Action and Integrated Change Control

Measure Look for alternatives and make recommendation Corrective Action Process Is there any variance? Corrective Action Process Is corrective action required? Submit recommended action to change control board to approve or reject the change If approved, update project management plan Manage project as per the new plan If rejected look for alternative or accept the Impact Submit recommended action to change control board to

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Close project or phase

 Close project or phase is the process of finalizing all activities across all the project management process groups to formally complete the project or phase.  A project must be formally closed.  The project should always be closed no matter if it was completed, stopped, or terminated. Inputs to Close Project or Phase  Project management plan  Accepted deliverables  Organization process assets

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PROJECT MANAGEMENT

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Agenda

 What is Project Scope Management.  Product scope vs project scope.  The key terms in Project Management Scope.  The Project Scope Management Knowledge Area.  Collect requirement  Define scope  Create WBS  Verify scope  Control scope

 Quiz

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What is Project Scope Management

 Project scope management includes the processes

required to ensure the project includes the all the work

required and only the works required to complete the

project successfully.

 Managing the project scope is primarily concern with

defining and controlling what should be included in the

Project.

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What is Project Scope Management (cont’d)

 The key activities that happen as a part of project scope

management .

– Constantly checking to make sure that all the work is being completed – Not letting people randomly add to the project scope – Preventing gold plating ‐ doing more than is required on the project

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Product Scope vs Project Scope

 Product Scope: The features and functions that

characterize a product, service, or result.

 Project Scope: The work that needs to be accomplished

to deliver a product, service, or result with the specified

features and functions.

 Project scope management deals with managing both

the product scope, as well as the project scope.

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The Key Terms in Project Scope Management

WBS: Work Breakdown Structure

 The WBS breaks the project scope into smaller and more

manageable pieces called work packages.

 Each level of the WBS is a smaller piece of the level above.

 Work not in the WBS is not considered part of the project.

WBS Dictionary:

 Since work can not be defined in detail in the WBS, a WBS

dictionary is created to define the WBS work packages.

 It contains a description of the WBS, the person responsible,

the schedule, etc.

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Project Scope Management Processes

Project Scope Management Process Time Plan Scope Management Planning Process Collect Requirement Planning Process Define Scope Planning Process Create WBS Planning Process Verify Scope Monitoring and Control Process Control Scope Monitoring and Control Process

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Plan Scope Management

Plan Scope Management is the process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled. Input  Project management plan  Project charter  Enterprise environmental factor  Organizational process assets

 Expert judgment  Meeting Output  Scope management plan  Requirement management plan

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Collect Requirement

Collect requirements is the process of defining and documenting stakeholders’ needs to meet the project objectives Input  Scope management plan  Requirement management plan  Stakeholder management plan  Project charter  Stakeholder register

 Interview  Focus groups  Facilitated workshops  Group creativity techniques  Group decision making techniques  Questionnaire & surveys  Observations  Prototyping  Benchmarking  Context diagram Output  Requirements documentation  Requirements traceability matrix

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Define Scope

Define scope is the process of developing a detailed description of the project and product Input  Scope management plan  Project charter  Requirements documentation  Organizational process asset

 Expert judgment  Product analysis  Alternatives identification  Facilitated workshops Output  Project scope statement  Project document updates

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Create WBS

Create WBS is the process of subdividing project deliverables and project work into smaller, more manageable components. Input  Scope management plan  Project scope statement  Requirements documentation  Enterprise environmental factor  Organizational process assets

 Decomposition  Expert judgment Output  Scope baseline  Project document updates

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Validate Scope

Validate scope is the process of formalizing acceptance of the completed project deliverables. Input  Project management plan  Requirements documentation  Requirement traceability matrix  Validated deliverables  Work performance data

 Inspection  Group decision making techniques Output  Accepted deliverables  Change request  Work performance information  Project document updates

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Control Scope

Control scope is the process of monitoring the status of the project and product and managing changes to the scope baseline. Input  Project management plan  Requirements documentation  Requirement traceability matrix  Work performance data  Organizational process assets

 Variance analysis Output  Work performance information  Change request  Project management plan updates  Project document updates  Organizational process assets updates

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PROJECT MANAGEMENT

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Agenda

 What is Project Time Management.  What is a Project Schedule.  The key terms in Project Time Management.  The Project Time Management Processes.  Define Activities  Sequence Activities  Estimate Activity Resources  Estimate Activity Duration  Develop Schedule  Control Schedule

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What is Project Time Management

 Project scope management includes the processes

required to manage timely completion of the project.

 Project time management is primarily concerned with

developing realistic project schedule change to the

schedule.

 Schedule management plan: this plan define how

schedule contingencies will be reported and assessed.

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The Key Activities

 Identifying the list of project activities

 Estimating the time and resources required to complete

each of the identified activities

 Sequencing the activities to occur one after the other in

a logical manner.

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What is the project schedule?

 A schedule wherein activities are assigned a duration

and sequenced in a logical order.

 The project schedule defines the start and end dates of

the project and the project activities.

 Scheduling software is usually used to develop the

project schedule.

 Microsoft Project is the most popular tool used for

project schedule development.

 Many people confuse a project schedule with the

project management plan. The project management

plan is comprehensive and includes the project

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Estimation

One time Estimate: When estimating use only one time estimate per activity. For example, the person doing the estimating says that the activity would take 2 weeks. In real life, people make their best guess and just double the estimate to take care of any uncertainties. Adding this extra time is called “padding”. This techniques should only be used for high level estimates. Analogous Estimating: This estimating is based on previous projects (or activities). The last 5 similar projects took 6 months, so this one should also take 6 months. Parametric Estimating: This uses a mathematical model to calculate projected times for an activity based on historical records from previous projects and other information.

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Project Time Management Processes

Project Time Management Process Time Plan Schedule Management Planning Process Define Activities Planning Process Sequence Activity Planning Process Estimate Activity Resource Planning Process Estimate Activity Duration Planning Process Develop Schedule Planning Process Control Schedule Monitoring and Control Process

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Plan Schedule Management

Plan Schedule Management is the process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule. Input  Project management plan  Project charter  Enterprise environmental factor  Organizational process assets

 Expert Judgment  Analytical techniques  Meeting Output  Schedule management plan

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Define Activities

Define activities is the process of identifying the specific actions to be performed to produce the project deliverables. Input  Schedule management plan  Scope baseline  Enterprise environmental factor  Organizational process assets

 Decomposition  Expert judgment  Rolling wave planning Output  Activity list  Activity attribute  Milestone list

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Sequence Activity

Sequence activities is the process of identifying and documenting relationships (dependencies) among the project activities. Input  Schedule management plan  Activity list  Activity attributes  Milestone List  Project scope statement  Enterprise environmental factor  Organizational process assets

 Precedence Diagramming Method (PDM)  Dependency determination  Leads and lags Output  Project schedule network diagram  Project document updates

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Estimate Activity Resource

Estimate activity resources is the process of estimating the type and quantities of material, people, equipment or supplies required to perform each activity. Input  Schedule management plan  Activity list  Activity attributes  Resource calendars  Risk Register  Activity cost estimates  Enterprise environment factor  Organizational process assets

 Expert judgment  Alternative analysis  Published estimating data  Bottom‐up estimation  Project management software Output  Activity resources requirements  Resources breakdown structure  Project document update

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Estimate Activity Duration

Estimate activity durations is the process of approximating the number of work periods needed to complete individual activities with estimated resources. Input  Schedule management plan  Activity list  Activity attributes  Activity resources requirement  Resources calendars  Risk register  Resource breakdown Structure  Project scope statement  Enterprise environment factors

 Expert judgment  Analogous estimating  Parametric estimating  Three point estimate  Group decision‐making techniques  Reserve analysis Output  Activity duration estimate  Project document updates

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Develop Schedule

Develop schedule is the process of analyzing activity sequences, durations, resource requirements and schedule constraints to create the project schedule. Input  Schedule management plan  Activity list  Activity attributes  Project schedule network diagrams  Activity resource requirement  Resource calendars  Activity duration estimate  Project scope statement  Risk register  Project staff assignment  Resources breakdown structure  Enterprise environmental factors  Organizational process asset

 Schedule network analysis  Critical path method  Critical chain method  Resource leveling  What‐if scenario analysis  Applying leads and lags  Schedule compression  Scheduling tools Output  Schedule baseline  Project schedule  Schedule data  Project calendars  Project management plan updates  Project document update

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Control Schedule

Control schedule is the process of monitoring the status of the project to update project progress and manage changes to the schedule baseline Input  Project management plan  Project schedule  Work performance data  Project calendars  Schedule data  Organization process assets

 Performance review  Project management software  Resources optimization techniques  Modeling techniques  Leads and lags  Schedule compression  Scheduling techniques Output  Work performance information  Schedule forecasts  Change request  Project management plan updates  Project document updates  Organization process assets updates

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Schedule Network Analysis Techniques

Schedule Network Analysis is a technique that generates

the project schedule. This technique includes:

 PERT

 Critical Path Method

 What‐if scenario analysis

 Schedule compression

 Critical chain method

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PERT (Three Point Estimate)

Expected duration= (P+4M+O)/6

Standard deviation of an activity= (P‐O)/6

Variance of an activity = [(P‐O)/6]^2

P= Pessimistic estimate

M= Most likely estimate

O= Optimistic estimate

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PERT

If A, B, C and D are the only sequential activities in the project, what is the project duration?  The Answer is 179 with a standard deviation of 10.4, so the minimum project duration is 168.6 and maximum duration is 189.4  The Project standard deviation is calculated by adding all activity

Activity O M P PERT SD Var Range

A 20 30 40 30 3.33 11.08 30,+/‐3.33

B 40 60 90 61.6 8.33 69.38 61.6,+/‐8.33

C 35 50 60 49.1 4.16 17.30 49.1,+/‐4.16

D 25 40 45 38.3 3.33 11.08 38.3+/‐3.33

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Critical Path Method

 Critical Path:

The longest duration path through a network

diagram and determines the shortest time to complete the

project.

 Float (Slack):

– Total Float (Slack): The amount of time an activity can be delayed without delaying the project end date or an intermediary milestone. – Free Float (Slack): The amount of time an activity can be delayed without delaying the early start date of its successor(s). – Project Float (slack): The amount of time a project can be delayed without delaying the externally imposed project completion date required by the customer or previously committed by the project manager.

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How to Calculate Float?

ES LS EF LF F L O A T Backward Pass Forward Pass ES : Early Start LS : Late Start EF : Early Finish LF : Late Finish

Float = LS – ES

or

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Critical Path Example

Activity Duration Activity 1 3 Activity 2 3 Activity 3 6 Activity 4 8 Activity 5 4 0 0 3 3 Activity 1 Float=0 3 3 6 6 Activity 2 Float=0 Start 6 6 14 14 Activity 4 Float=0 14 14 18 18 Activity 5 Float=0 3 8 9 14 Activity 3 Float=5 End Path Duration Start, 1, 2, 4, 5, End 18

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Develop Schedule

Fast Tracking Crashing:

Increasing resources on critical path activities while making cost and schedule tradeoffs to determine how to obtain the greatest amount of schedule compression for the least incremental cost while maintaining project scope.  Schedule Compression: Schedule compression is done during project planning to see if the desired completion date can be met and what will have to change to meet that date.  Two techniques: – Fast Tracking – Crashing A B C A B

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Schedule Compression Example

 To suppress the project duration by 1 day. Which activity

would you crash?

 The answer is Activity A, as it has the minimum crash cost

Activity Original Duration Crash Duration Time Saving Original Cost Crash Cost Extra Cost Crash Cost per Day A 10 8 2 10,000 12,000 2,000 1,000 B 14 10 4 14,000 24,000 10,000 2,500 C 5 4 1 15,000 17,000 2,000 2,000 D 9 7 2 12,000 18,000 6,000 3,000

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Impact of Schedule Compression

Option General Impact to the Project Fast Track Adds risks Increases management time for the project manager Crash Adds costs Increases management time for the project manager Reduce Scope Saves time and cost Increases customer dissatisfaction Cut Quality Saves cost and Resources Increases risks Resource reallocation Does not add cost or increase risks

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Other Schedule Network Analysis Techniques

 What‐if Scenario Analysis: In this method the following question is asked to produce a realistic schedule: What if a particular scenario changed on the project, would that produce a shorter schedule?  Monte Carlo Analysis: This method of estimating cost or duration uses a computer to simulate the outcomes of a project making use of input values selected at random from probability distributions.  Resource Leveling: Resource leveling is used to produce a resource limited schedule. It results in a more even spread of the workload of resources used on the project.  Critical Chain Method: This is another technique used to develop the project schedule. It takes into account both the activity and resource dependencies. We will not go into detail of this technique, just remember that this technique exists.

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Control Schedule

Control schedule is the process of monitoring the status of the project to update project progress and manage changes to the schedule baseline.

Input

 Project management plan  Project schedule

 Work performance information  Organization process assets

 Performance reviews  Variance analysis  Project management software  Resource leveling  What‐if scenario  Adjusting leads and lags  Schedule compression  Schedule tool Output  Work performance measurements  Organizational process assets  Change requests

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PROJECT MANAGEMENT

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Agenda

 Process Flow Diagram  What is Project Cost Management.  Difference between Cost Estimating and Cost Budgeting  Control Account  The Project Cost Management Processes.  Estimate Cost  Determine Budget  Control Schedule  Earn value management  Project selection method

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What is Project Cost Management

 Project cost management includes the processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.  Cost Management Plan: This plan contains details like how to go about planning the project cost and how to effectively manage and control the project to the cost baseline and manage cost variance.  The cost management plan is a part of the project management plan.  The techniques for estimating the cost involved in performing each of the project activities are the same as estimating the time required.  Expert judgment, analogous estimating, bottom up estimating and reserve analysis are some of the techniques used in cost management.

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What is a Control Account

 In larger projects, its is difficult to do cost management

at each individual activity level and hence costs are

managed at a higher level.

 It is done at a level higher than the work package.

Remember, the project is broken into a WBS. The WBS is

further broken down into work packages and work

packages are finally broken into activities (WBS

Dictionary).

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Project Cost Management Processes

Project Cost Management Process Time

Cost Management Plan Planning Process

Estimate Cost Planning Process

Determine Budget Planning Process

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Plan Cost Management

Plan Cost Management is the process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs. Input  Project management plan  Project charter  Enterprise environmental factors  Organization process assets

 Expert judgment  Analytical techniques  Meetings

Output

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Estimate Cost

Estimating cost is the process of developing an approximation of the monetary resources needed to complete project activities. Cost estimates are a prediction that is based on the information known at a given point in time. Input  Cost management plan  Human resource plan  Scope baseline  Project schedule  Risk register  Enterprise environmental factors  Organization process assets

 Expert judgment  Analogous estimating  Parametric estimating  Bottom up estimating  Three point estimates  Reserve analysis  Cost of quality  Project management software  Vendor bid analysis  Group decision‐making techniques Output  Activity cost estimates  Basis of estimates  Project document updates

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Determine Budget

 Determining the budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

 The cost baseline includes all authorized budgets but excludes management Input  Cost management plan  Scope baseline  Activity cost estimates  Basis of estimates  Project schedule  Resource calendars  Risk register  Agreements  Organizational process assets

 Cost aggregation  Reserve analysis  Expert judgment  Historical relationships  Funding limit reconciliation Output  Cost baseline  Project funding requirements  Project document updates

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Control Cost

Controlling cost is the process of monitoring the status of the project to update the project budget and manage changes to the cost baseline. Any increase to the authorized budget can only be approved through the perform integrated change control process. Input  Project management plan  Project funding requirements  Work performance data  Organizational process assets

 Earned value management  Forecasting  To‐complete performance index  Performance reviews  Project management software  Reserve analysis Output  Work performance information  Cost forecasts  Change requests  Project management plan updates  Project management plan updates  Organizational process assets updates

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Earn Value Management Techniques

The earned value management technique is a method to measure project performance against the project baselines. It results from an earned value analysis indicating potential deviation of the project from the cost and/or schedule baselines.

Acronym Term Explanation

PV Planned Value Estimated value of the work to be done

EV Earn Value Estimated value of the work actually

accomplished

AC Actual Cost Actual cost incurred in work accomplished

BAC Budget at Completion The Budgeted amount for the total work

EAC Estimate at Completion The current estimate for the total project cost

ETC Estimate to Complete From this point, how much more the project

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Earn Value Management Formula

Acronym Formula Explanation

Cost Variant (CV) EV‐AC Negative is over budget, positive is

under budget.

Schedule Variant (SV) EV‐PV Negative is behind schedule, positive is

ahead of schedule.

Cost Performance Index (CPI) EV/AC We are getting $___worth of work out

of every $1 spent. Schedule Performance Index (SPI) EV/PV We are progressing at $___ percent of the rate originally planned. Estimate at Completion (EAC) BAC/CPI How much do we expect the Project to cost

Estimate to complete (ETC) EAC‐AC How much more the Project would

cost.

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EVM Problem Example

 Contract: To build 10 tanks in 12 months

– Construction Budget : 10 tanks @ $ 1000 = $ 10.000 – Construction period : 12 months

 Condition after 5 months:

– Planned Value (PV) : $ 3.600 (from S‐curve) – Actual Cost (AC) : $ 3.700 (from finance) – Earn Value (EV) : $ 2.500 (from site actual)

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EVM Problem Example

 Cost Variant (CV) : EV‐AC = 2.5 – 3.7 = ‐ 1.2  Schedule Variant (SV) : EV – PV = 2.5 – 3.6 = ‐ 1.1  Cost Perform. Index (CPI) : (EV)/(AC) = 2.5/3.7 = 0.676  Schedule Performance Index : (EV)/(AC) = 2.5/3.7 = 0.676

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PROJECT MANAGEMENT

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Agenda

 What is Quality.  What is Quality Management?  Cost of Quality  The Project Quality Management Knowledge Process.  Plan Quality  Perform Quality Assurance  Perform Quality Control  Basic tools of Quality

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Quality???

 Quality is defined as “conformance to requirement and

fitness for use”.

 So, if all the project requirements are met and the

resulting product/service is usable then quality has been

met.

 Quality is the responsibility of each and everyone in the

organization.

 The project manager is responsible for project quality,

 While senior management is responsible for quality of

the whole organization.

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Dimension of Quality

Crosby’s “Conformance to Specification” Juran’s “Fitness for Use” Deming’s “Customer Satisfaction” Ishikawa’s “Continuous Improvement” Quality

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What is Project Quality Management

 Quality management includes creating and following

policies and procedures that meet the project’s defined

quality needs.

 The aim of quality management is to ensure that the

specified approach to quality is implemented on the

project.

 The three aspects to quality management are:

– Quality planning – Quality assurance – Quality control

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Quality Planning vs QA vs QC

Quality

Planning

Quality

Assurance

Quality Control

Determine a plan for quality Determine if the project is complying with the organizational (as well as project) policies and procedures. Measure specific project result (product/deliverables) against standard. A major task is preparation of the quality management plan. A major task is conducting regular project audits Result of the audit are corrective and preventive A major activity is to inspect and verify the project’s product, defect repair, and measuring whether the quality indicators are

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Standard and Specification

 Technical Specification: Document that prescribe technical requirements to be fulfilled by a product, process or service ISO (1991)  Specification: A document intended primarily for use in procurement, which clearly and accurately describes the essential technical requirements for items, materials, or services including the procedures by which it will be determined that the requirements have been met. DOD‐STD‐480A  Standard: Document, established by consensus and approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at achievement of optimum degree of order in a given context. ISO (1991)

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Cost of Quality

 Cost of quality includes all costs incurred over the life of the product by investing in preventing nonconformance to requirements and ensuring that the product conforms to requirements (rework). Cost of Conformance  Quality training  Inspection  Testing This is cost spent during the project execution to avoid failures

Cost of Non Conformance

 Rework  Scrap  Warranty cost This is cost spent during and after project execution caused by failures

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Project Quality Management Processes

Project Scope Management Process Time

Plan Quality Management Planning Process

Perform Quality Assurance Execution Process

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Plan Quality Management

Plan Quality Management is the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with relevant quality requirements. Input  Project management plan  Stakeholder register  Risk register  Requirement documentation  Enterprise environmental factors  Organizational process assets

 Cost benefit analysis  Cost of quality  7 basic quality tools  Benchmarking  Design of experiments  Statistical sampling  Additional quality planning tools  Meeting Output  Quality management plan  Process improvement plan  Quality metrics  Quality checklist  Project document updates

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Perform Quality Assurance

Perform Quality Assurance is the process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used. Input  Quality management plan  Process improvement plan  Quality metrics  Quality control measurement  Project documents

 Quality management and control tools  Quality Audits  Process Analysis Output  Change request  Project management plan updates  Project document updates  Organizational process assets updates

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Control Quality

Control quality is the process of monitoring and recording results activities to assess performance and recommend necessary changes. Input  Project management plan  Quality metrics  Quality checklist  Work performance data  Approved change request  Deliverables  Organizational process assets

 7 quality tools  Statistical sampling  Inspection  Approve change requests review Output  Quality control measurements  Validated changes  Verified deliverables  Work performance information  Project management plan updates  Project document updates

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Ishikawa’s Seven Quality Tools

 Control charts

 Cause and effect diagram

 Flowcharting

 Histogram

 Pareto chart

 Run chart

 Scatter diagram

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Control Charts:

 Control charts graphically

help you to determine if

the process is within

acceptable limits.

 A control chart can be

used to monitor project

performance figures such

as cost or schedule

variance.

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Flowcharting

 Flowchart shows how a process or system flows from

beginning to end and how the elements interrelate.

 Graphically represent the process and helps analyze

how the problems occur.

 Used to identify redundancies and bottlenecks.

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Pareto Chart

 Also called 80/20 rule.

 Helps focus attention

on the most critical

issues.

 Prioritizes potential

causes of the problem.

 Helps identify the

critical few from the

uncritical many.

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Histogram

 It is a vertical bar chart showing how often a particular

variable occurred.

 The height of each column represents the relative

frequency of the variable.

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Run Chart

 Used to identify a pattern of variation.

 Used to identify a trend.

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Scatter Diagram

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PROJECT MANAGEMENT

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Agenda

 What is Human Resource Management.  Project Sponsor  Functional Manager vs Project Manager  The Project Human Resource Management Knowledge Process.  Develop Human Resource Plan  Acquire Project Team  Develop Project Team  Manage Project Team  Conflict Management  Power of Project Manager