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Project Formulation PowerPoint Presentation
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Project Formulation

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Project Formulation

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  1. Project Formulation

  2. “According to Peter Drucker, the objective of any organization is to positively change the lives of those with whom it has direct contact. This encompasses employees, customers, suppliers and the community in which it operates. Management is not a science, art, program or gimmick; it is a practice based on a fundamental belief.” (Gorelick, 2003)

  3. What follows is a discussion on Project Management . This discussion takes you through some standards and best practices that are generally accepted. Generally , means most of the time and by most of the people or organizations.

  4. Agenda Session – 1 Definition of a project Projects and Operations Project Phases Project Life Cycle Project Initiation Project Charter Stakeholders Session – 2 Project Management Elements Process Groups Knowledge Areas Scope statement Project Management Plan

  5. Definition of a Project Project A project can be defined as a temporary endeavor undertaken for creating a unique product or service or a result. Temporary means that every project has a definite beginning and a definite ending. Unique means that the product or service or result is different in some distinguishing way from all other products or services or results Examples of projects Developing a software Building a new house Designing a new website

  6. Projects and Operations Project Vs Operations

  7. Projects and Operations • Common Characteristics and Differences between Projects and Operations Projects Temporary Unique Operations Ongoing Repetitive Common Characteristics • Performed • by people • Limited • Resources • Planned, • Executed and Controlled

  8. Project Phases and Project Lifecycle Projects are divided into project phases for better management control and reducing the degree of uncertainty All the project phases collectively are called as project life cycle Analysis Design Coding Testing Closing

  9. Construction Electrical Project Phases and Project Lifecycle Plumbing Phase to Phase relationships Sequential - One phase completes and the next phase starts. Low risk relationship. Analysis Design Development Testing Overlapping or Fast tracking - The next phase starts before the previous phase completes. This might be risky as rework may be triggered.

  10. Project Phases and Project Lifecycle Cyclic Incremental Phases Starting from the first phase work can be completed throughout all the phases taking one component. Then second component of work may be taken from the first phase and all related activities throughout all the phases will be completed. This cycle continues. Depending upon the situation any relationship may be used individually or in combination with other relationships. For example if the project risk is low and time constraint is there for one phase, Fast tracking may be useful.

  11. Start of project End of project Project Duration Project Phases and Project Lifecycle In the initial stages, Cost and staffing levels are low. They increase with project duration, and then decrease sharply when project nears completion Cost and Staffing levels

  12. Start of project End of project Project Duration Project Phases and Project Lifecycle Probability of successfully completing project, Cost of changes, Cost of Error Correction are low. They increase with project duration Probability of Project success

  13. Project Duration Start of project End of project Project Phases and Project Lifecycle Uncertainty/Risks about the project, the ability of stakeholders to influence the final characteristics of project’s product are high. They decrease with project duration. Project Risks and uncertainty

  14. Project Initiation • A business Strategy or a goal to be achieved triggers a needs analysis • A Portfolio steering committee, a Sponsor or a PMO is formed to work on the feasibility of the project . A Statement of work (SOW) is developed • Project selection methods are used to assess the value of investment and the viability of the project. A Business case is developed that contains • The business need/driving factors for the project • Cost benefit analysis • Results of the project selection factors

  15. Project Drivers – Business need • Market demand - Design a fuel efficient automobile • Organizational need - Develop orientation training material for new employees • Customer request - Integrate all systems in an IT organization • Technological advance - Develop dish antennas to replace cable transmission • Legal requirement - Cleanup the toxic materials from a factory • Community needs - Flyovers, sub-ways, Parks, Public latrines

  16. Problem Analysis - Tools Cause and effect Diagram This is also called as “Ishikawa diagram” or “Fish bone diagram”. This tool is used to identify the root causes underlying a problem. It determines the various factors that might be linked to potential problems or effects

  17. Problem Analysis - Tools Attitude No Training Customer dissatisfied

  18. Insufficient rice production in a village ABC Problem Analysis – Logic Tree Effects Unsuitable agricultural practices Faulty irrigation system No maintenance Some irrigation structures destroyed Farmers have no investment capacity Farmer support not available

  19. Problem transformation to objectives Objectives Problems Insufficient rice production in a village ABC Rice production in the village ABC is sufficient Faulty irrigation system Irrigation system is repaired Unsuitable agricultural practices Agricultural practices appropriate

  20. Enterprise Environmental Factors • These are factors that are external to the project and influence project success. Examples: • Organizational structure (functional vs. matrix) • Technological changes • Geographic conditions (Real Team vs. Virtual team) • Personnel Administration (Full time Vs. Contract) • Changes in Government rules and regulations • Economical (Budget Constraints) • Market Conditions • Project Management Information System (PMIS)

  21. Organizational Process Assets • These are assets related to organizational processes that influence project success. Examples: • Formal and informal plans • Procedures, policies and guidelines • Organizational processes • Project process guidelines • Financial control procedures • Communication requirements

  22. Project Charter • It documents the business needs and current understanding of the customer requirements. • Issued by the sponsor. Formally authorizes a project. • Project Manager is identified and given authority. • Project does not exists without a project charter. • It Contains Project Title, purpose, description, justification, goals and objectives, summary level requirements, Milestones Schedule, Budget and Risks. • Also contains Assumptions, Constraints, acceptance criteria

  23. Project Stakeholders Identifying all people or organizations affecting / affected by the project and documenting their interests, involvement and impact on the project success Project Stakeholders are • Persons or organizations • Actively involved in the project or • Whose interests are affected either positively or negatively • by the execution or completion of the project

  24. Project Stakeholders Individuals or a group of people or organizations who actively participate in the project activities or whose interests are affected either positively or negatively FMs Program Manager Customers Sponsor PMO Operations Management Project Manager PM Team Other Team members

  25. Project Stakeholders Project Sponsor: A Person or a group that provides financial resources for the project is called project sponsor or project initiator. Also approves project charter. Approves major changes to the project objectives Project Manager: Person responsible for managing the project. Project Manager is project integrator, manages the team, manages the stakeholders, manages communications and responsible for the overall quality of the project Customer: The person or organization that uses the project’s product

  26. Project Stakeholders Functional Manager: Functional manager assigns personnel. Receives and evaluates individual performance reports from the project manager Project team: The team members that perform the actual work of the project Project Management team: The team that provides PM support functions and group that is involved in Project Management Activities. It is subset of project team. Performing organization: The enterprise whose employees are most directly involved in performing the work of the project

  27. Stakeholders - Analysis This contains the processes of systematically gathering the interests of the stakeholders, analyzing them and arriving at a management strategy. This is conducted throughout the project life cycle. This process basically includes three steps. • Identifying all the stakeholders, their interests, their influence • and roles • Assessing their impact and support • Developing a management strategy Helps in identifying the opportunities and relations to build upon to make the project a success. Potential conflicts and Risks that may evolve

  28. Power / Interest Grid Stakeholder Analysis Keep them satisfied Manage them closely Medium to high Importance High Importance Power/Influence of the stakeholders Monitor them Keep them informed Low to Medium Importance Low Importance Interest of the Stakeholders

  29. Project Stakeholders Stakeholder Management Strategy • Stakeholder management strategy contains • Key stakeholders • Their level of participation • Strategies for increasing the support • Strategies to decrease the resistance • Main goal is to maximize the stakeholder support and minimize their resistance

  30. “As a manager the important thing is not what happens when you are there, but what happens when you are not there” - Ken Blanchard

  31. “All things are created twice; first mentally; then physically.  The key to creativity is to begin with the end in mind, with a vision and a blue print of the desired result.” • — Stephen R Covey

  32. Break

  33. Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall. - Stephen R Covey

  34. Project Management Project Management Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Scope Risk Quality Cost Balancing Competing Constraints Resources Schedule

  35. The Plan-Do-Check-Act Cycle Plan • What to do • How to Accomplish it • Analyze reason • or not getting • desired results • Determine • changes • Standardize if • desired results • have come Act Do • Carry out the plan Check • Check if the planned results • have come

  36. P A D C Process Groups and Knowledge Areas According to the Project Management Body of Knowledge PMBOK® There are five process groups and Nine knowledge areas. The process groups are, Executing Initiating Planning Closing Monitoring and Controlling PMBOK® Is a registered trademark of Project Management Institute (PMI), USA

  37. Process Groups and Knowledge Areas The Knowledge Areas are, Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resources Management Project Communications Management Project Risk Management Project Procurement Management PMBOK® Is a registered trademark of Project Management Institute (PMI), USA

  38. Defining Scope of the Project • Ensure that the project includes all the work and only the work required to complete the project. Managing project scope involves defining and controlling “what is” and “what is not” included in the project • Collecting Requirements - involves defining and documenting stakeholders’ needs and expectations to meet the project objectives • Defining Scope - is the process of developing a detailed description of the project and the product • Creating a WBS - is the process of subdividing project deliverables and project work into smaller, more manageable components

  39. Collect Requirements - Methods • Interviews • Focus groups • Facilitated workshops • Group creativity techniques • Group decision making techniques • Questionnaires and surveys • Observations • Prototypes

  40. Collect Requirements - Methods • Interviews – Formal or informal approach to discover information from stakeholders by talking to them directly • Focus Groups – Technique of bringing stakeholders and SMEs together to learn their needs and expectations by the help of a moderator • Facilitated Workshops – Sessions that bring cross-functional stakeholders together to define product requirements • JAD (Joint Application Design) Sessions between users • and development team • QFD (Quality Function Deployment) in manufacturing • industry

  41. Collect Requirements - Methods • GROUP CREATIVITY TECHNIQUES • Brainstorming – Collection of multiple ideas • Nominal group technique – Brainstorming plus voting • Delphi technique – Expert’s opinion (Anonymous) • Idea/mind mapping – Consolidation of individual ideas • Affinity diagram – Categorization of ideas • GROUP DECISION MAKING TECHNIQUES • Unanimity – Decision by consensus . All persons one • Majority – More than 50% support • Plurality - Decision of the largest block • Dictatorship – Only one individual taking a decision

  42. Collect Requirements - Methods • QUESTIONNAIRES AND SURVEYS • Predefined sets of questions designed to gather information • A better tool when the requirements are to be collected from a large audience • OBSERVATIONS • Viewing individuals in an environment performing his/her • job. Also called as “Job Shadowing” • PROTOTYPES • Building a working model of the expected product before actually building it then improving upon the requirements

  43. Defining Scope • Process of developing a detailed description of the project and the product • Project Scope Statement • Statement that describes project’s deliverables and the work required to create those deliverables. Acts as a baseline for managing change • Project Scope is progressively elaborated. It contains, • Constraints and Assumptions • Acceptance Criteria • In-Scope and Out-of-Scope

  44. Work Breakdown Structure (WBS) • Process of subdividing project deliverables and project work into smaller, more manageable components • Decomposition • The technique of breaking down the total work into more manageable chunks is called decomposition. • Decomposition could have major deliverables, phases or sub-projects as first level of WBS • 100% rule: no extra work left when lower levels are rolled up to higher levels to show the total work • Excessive decomposition may be ineffective

  45. Work Breakdown Structure (WBS) • A WBS is a deliverable oriented grouping of project • components. • It is created by the project team and serves as a team • development tool. • Helps communication between the project team and • the stakeholders. • It is not time based

  46. Work Breakdown Structure (WBS) Work Breakdown Structure

  47. Project Management Plan • A document containing the actions necessary to define, prepare, integrate and coordinate all subsidiary management plans and outputs of all the planning activities. • All subsidiary management plans (Ex. Scope management plan, Quality management plan, Communications management plan) and all baselines (Ex. Scope Baseline, Schedule Baseline) • Defines how the project is executed, monitored and controlled, and closed

  48. If you want to give a man credit, put it in writing. If you want to give him hell, do it on the phone - Charles Beacham

  49. THANK YOU