Fundamentals of Project Management: Part 1a

1. Fundamentals of Project Management: Part 1a APEGGA Annual Conference April 24 & 25, 2003 Dr. George F. Jergeas PEng. University of Calgary

2. Day 1a Introduction 5-Step PM Planning and Definition Day 1b Estimating cost and time Organize project team Selecting PM and team Effective teams Day 2 c Project procurement Bidding process Building & sustaining project team Contract administration Day 2 d Schedule control Cost control Project Close-out Claims and disputes Schedule

3. References • This section is based on: • The 5-Phased Project Management- A Practical Planning and Implementation Guide by Joseph Weiss and Robert K. Wysocki • Project Management Institute: PMBOK Guide, http://www.pmi.org • Instructors’ notes

4. Introduction

5. What is a project? • A specific, finite task to be accomplished • Can be of a long or short term duration • Can be large or small task

6. Projects Vary in Size and Scope • NASA shuttle launch • Building a boat • Building a hospital • Building renovation and & space modification • Planning a party or wedding • Organizing the Olympic games • Developing a new software program • Getting a university degree • Company mergers

7. Constant communication across organizational boundaries Many people involved, across several functional areas Sequenced events Goal oriented Has an end product or service Multiple priorities Complex and numerous activities Unique, one-time set of events Deadlines Start and end dates Identifiable stakeholders Limited resources and budget Project Characteristics

8. When is a Project a Project? • A task or set of work assignments may be done by one or more persons using a simple “to do” list. • A task become a project when the characteristics of a project begin to dominate and overwhelm individuals • Unable to meet deadlines, budgets and corporate expectations

9. Project Management • Project management is a method and/or set of techniques based on the accepted principles of management used for planning, estimating and controlling work activities to reach a desired result on time, within budget, and according to the project specifications.

10. What is Project Management? • Tools/techniques • Processes and methodology • More than time, cost and scope • Hard and soft skills • A discipline evolving towards a profession

11. Project Management • Projects and project management are about people and teamwork • Who does what? • Who takes what risk? • Who else is involved or interested/affected?

12. Subprojects • Projects are frequently divided into more manageable components or subprojects • Subprojects are typically referred as projects and managed as such • Subprojects may be contracted to an external enterprise

13. Program(me) • A program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually • Program management: Management of a coherent group of projects to deliver additional benefits (PMBOK p.10, Turner p.345)

14. Value of Project Management (Why are we doing this?) • Improve project/program/firm performance as measured by efficiency, effectiveness • Add competitive advantage • Be more “Successful” • Proactive vs. Reactive • Root out ill-conceived, directionless projects

15. Major Causes of Project Success • A constructive goal-oriented culture • Technically competent team • Effective (and committed) team • Excellent communication • Trust

16. Major Causes of Project Success • Stakeholders are identified • Stakeholders expectations are known and met • Senior Management support • There is a clearly stated purpose and a sound plan • Goal and objectives are understood and communicated

17. Major Causes of Project Failure • Projects fail for the following reasons: • The project is a solution in search of a problem • Only the project team is interested in the result • No one is in charge • There is no project structure • The plan lacks detail

18. Major Causes of Project Failure • Projects fail for the following reasons: • The project has insufficient budget and/or resources • Lack of team communication • Straying from original goal • The project is not tracked against the plan

19. Project Lifecycle • Project management phases link the project to the firm’s operations • A project is a subset of the product lifecycle • The product lifecycle includes operation or production, decommissioning or closedown

20. Sample Lifecycle (Conceive, Develop, Execute, Finish – C, D, E, F)http://www.maxwideman.com/papers/framework/lifecycle.htm

21. 5-Step Project Management

22. 5-Step Project ManagementPLANNING IMPLEMENTATION CONTROL ORGANIZE DEFINE PLAN CLOSE Identify project activities State the Problem Determine Personnel Needs Define Management Style Obtain Client Acceptance Install Deliverables and Commissioning Document the Project Issue Final Report Conduct Post- Implementation Audit Identify Project Goal Estimate time and cost Recruit Project Manger Establish Control Tools List the Objectives Prepare Status Reports Review Project Schedule, cost, team reports Issue Change Orders Recruit Project Team Quality and Communication management Determine Preliminary Resources Organize Project Team Bidding Identify Risks and stakeholders Success criteria Assign Work Packages Write Project Proposal Decision Project charter WBS Recruit Criteria Variance Reports Final Report Project network Define Work Packages Status Reports Audit Reports Project proposal Assign Work Packages

23. Step 1- Define the Project

24. Agenda • State the problem/need/opportunity • Develop project goal • Develop project objectives • Determine preliminary resources • Identify assumptions and risks • Identify stakeholders • Identify criteria for project success • Issue Project Charter

25. State the Problem/Need/ Opportunity • A need that must be addressed or opportunity to be explored • New product, service, process, facility, system or technology • It may involve opening a new market • Identify and define in detail the investment opportunity, need or problem

26. State the Problem/Need/ Opportunity • Define client requirements and needs from the client’s original input • Review andenhance the client’s statement of needs: • Identify appropriate policies, standards, and jurisdictional requirements • Identify and assess feasible alternatives of satisfying the client’s statements

27. State the Problem/Need/ Opportunity • Advise the client of potential technology-related constraints in areas such as ... • Establish consensus on the requirements of the client • Assemble information including any relevant designs, charts, or diagrams ...

28. State the Problem/Need/ Opportunity • Short, crisp and to the point • Descriptor for those who although not directly involved on the project team are indirectly involved in supporting the project

29. State the Problem / Need / Opportunity: Training Example • “Membership in PM Association has declined in the past four years and attendance at conference has declined in the past three years. The viability and financial stability of the Association depends on maintaining membership and successful annual conference.”

30. State Project Goal • A statement of purpose and direction • Initiates the project • Serves as a point of reference for settling misunderstandings • Clarifies expectations • Helps in justifying requests for resources • Action oriented • Short and simple • Understandable

31. Goal Statements • Prepare and launch the International Space Station on April 21, 2000, from Cape Canaveral, Florida • Connect France and England via a covered tunnel and railway under the English Channel, facility to be opened to traffic no later than September, 1996

32. Goal Statement: Examples • Design and complete pilot testing by March 2002, a product accounting software package that performs basic financial analyses for the company • Obtain a BSc degree in engineering from U of C by spring, 2004

33. Goal Statement: Training Example • Reverse the downward trend in membership and annual conference attendance by organizing a highly successful conference

34. Develop Project Objectives • Objectives represent major scope components or milestones • Objectives are sub-goals • Roadmap to aid decision makers understand the purpose of the project • Basis for determining project time line and resource requirements • To achieve the goal all objectives must be realized

35. Objectives: Training Example • Develop the Program • Set the Conference Site and Date • Design and Implement the Marketing Plan

36. Resourcing Strategy For each objective: • Determine which internal resources are available • Determine which external resources will be required • Take any preliminary steps required to engage external resources • Expression of interest

37. Task Responsible Accountable Consulted Informed 1 2 RACI Chart

38. Identify Criteria for Evaluating Project Success Project expectations: • Project on time • Within budget • According to specifications • Happy client

39. Success Criteria: Training Example • At least 200 of 450 PM Association membership will register to attend • At least 50 of previous years conferences attendees will attend • At least 1.5% of the non-members receiving conference brochure will attend • At least 5% of the non-member attendees will join PM Association

40. Identify Assumptions and Risks • Each objective will have its own risks and assumptions • Helps think through the project process and issues associated with execution • Identifies resource needs and issues involving resource availability • Identifies potential delays and the impact of these delays • Potential cost overruns can be predicted and resolved

41. Risk Management KA7 • Identify risks • What could go wrong (harm, loss, opportunities and threats) • Consider ALL knowledge areas • Internal and external risks • Sources of risk: product technology, people (misunderstandings, skills), project management etc. Risk management is a process

42. Risk Management • Quantify risks • High, Medium, Low (HML) - qualitative • Expected Monetary Value (EMV) - quantitative

43. Risk Quantification Technique: High, Medium, Low (HML) • Probability of occurrence and impact • High, Medium, Low grid • Focus on HHs and less on LLs • Keep it simple

44. Risk Quantification Technique: High, Medium, Low (HML) • H HH • M Impact • L L M H Probability

45. Risk Management • Develop risk response plan • Opportunities and threats to respond to and opportunities and threats to accept • Avoid – eliminate cause • Mitigate – reduce risk occurrence • Accept – contingency plans, accept losses • Its OK to do any of these • Insurance, contingency plans, procurement, alternative strategies, contracts • Risk management template

46. Risk Probability Impact Owner of risk Response Plan Monitoring Schedule Risk Management Template

47. Assumption and Risks: Training Example • Interest in PM Association can be renewed through the annual conference • A quality professional program will attract members and non-members • Key speaker(s) fail to show up or submit written paper

48. Identify Stakeholders • Individual or organisations actively involved in the project or directly or indirectly affected by its execution or results. They can influence your success or decision makers. • Roles must be identified at the start of the project • Needs and expectations must be communicated and influenced in a positive and constructive manner so that the project will be success for all

49. Identify Stakeholders • How to find them? • Ask who will decide on the success of your project • How to involve them? • Ask for (appropriate) advice • Get their buy-in to project plans

50. Identify Stakeholders • How to work with them? • Active listening • Understand their interests and needs • Keep everyone informed • How to keep them on side? • Respond to concerns • Manage expectations and make adjustments