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Introduction to Project Management. Robert Barnes November 1998. Course Objectives. To give people an understanding of the STEPS and ISSUES of Project Management Appreciation of Project Reporting Participate in Projects Prepare for More Advanced Training. Course Outline.

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introduction to project management
Introduction to Project Management

Robert Barnes

November 1998

course objectives
Course Objectives
  • To give people an understanding of the STEPS and ISSUESof Project Management
  • Appreciation of Project Reporting
  • Participate in Projects
  • Prepare for More Advanced Training
course outline
Course Outline

1/ Introduction

Project Management Processes

2/ Initiation

3/ Planning

4/ Communicating and Controlling

5/ Human Factors and the Problem of Estimates

introduction
Introduction

What is a project?

Temporary, Unique

Has Start, Finish

Expected Outcomes (Deliverables)

Resources, Budget (time, $$)

Example

the project life cycle
The Project Life Cycle

Intermediate

Phase (s)

Cost

&

Staff

Level

Final

Phase

Initial

Phase

Time

getting the result that we want
Getting the result that we want

As proposed by the Project Sponsor

As Specified in theProject Request

As Designed by the Systems Analyst

As produced by the Programmers

As Installed at the User’s Site

What the User Really Wanted!

the waterfall sdlc

Analyse

Design

Code

Test

Deliver

The Waterfall SDLC

User staff changes?

Requirements

Changed?

New Insights?

Must ignore

prototyping
Prototyping

Successive refinement -

Creates excellent match

between system and requirement

Analyse

Build

What’s the Budget?

When are you finished?

Good for small

projects

conclusions
Conclusions -
  • No one answer is always right!
  • Vital to have feedback loops
  • Need to balance Planning and Doing
project processes
Project Processes

Planning

Initiating

Controlling

Executing

Closing

overlap of process groups
Overlap of Process Groups

What about

multi-phase

Projects?

Executing

Planning

Closing

Initiation

Controlling

the initiation process
The Initiation Process

Business

Case

Project Charter

Project

Manager

Sponsor

Champion

Project Team

project initiation
Project Initiation

Source of

Ideas?

Objective - get approval to proceed

[to next stage?]

“Identify and Enrol Stakeholders”

Top level commitment

Peer-level support

Authority over resources

Organisational priorities

Mission/vision Alignment

Financial commitment

What does it take?

project initiation involves
Project Initiation Involves
  • Gathering Information
  • Define Scope - WHAT
  • Understand Rationale for Project - WHY
  • Identifying Business need(s) to be satisfied - Criteria for Success
  • Risk Assessment
  • High Level Budget - How Much (time, $$)
  • Formally qualify Project - Priority
the business case project proposal
MUST Include

What? (deliverables)

Why? (objectives)

General, and

Specific ($$)

How much? ($$)

Budget

When?

MAY include

Background

Alternatives

Initial (high level) Project Plan

The Business Case(Project Proposal)

How do we justify a

proposal?

An example - Buscase Proforma.DOC

JobNotes proposal

basic cost benefit analysis
Basic Cost/Benefit Analysis
  • Improve efficiency of Business
    • Decrease Costs
    • Increase Revenue
  • Cost savings
    • Fewer Staff
    • Less material waste
    • Reduced inventory
  • Revenue Increases
    • More throughput with same resource
common measures of benefit
Common $ Measures of Benefit
  • Simple ROI
  • Discounted Rate of Return (IRR)
  • Net Present Value
  • Profitability Index
  • Payback Period

Problems: Risk not included

Non-financial critical factors simply ignored

scorecard s eg ie scorecard
Scorecard’s(Eg IE Scorecard)

A formal way of rating intangible factors

Headings not really important - key thing is the attempt to be systematic about benefits that are difficult to quantify.

planning processes core processes
Planning ProcessesCore Processes

Activity

Sequencing

Scope

Planning

Schedule

Development

Activity

Definition

Activity

Duration

Estimation

Scope

Definition

Cost

Budgeting

Resource

Planning

Cost

Estimation

Project Plan

Development

Actually, this is too idealised - in my experience,

much more iteration needed!

work breakdown structure wbs chunking
Work Breakdown Structure(WBS) “Chunking”
  • Break task down into smaller tasks
  • How fine?
    • Too much detail
      • always planning, never doing
    • Not enough
      • Plans worthless

S.M.A.R.T.

gantt charts
Gantt Charts
  • Probably the most important Project Planning/management Tool
    • Early stages - [graph] paper
    • Later - software (MS-Project?)
  • Shows Task schedule and relationships
    • Task relationships (although not the best diagram for this)
    • Task Start, Finish schedules
    • Resource assignments
  • Example MS-Project Printout - see “Model”
task relationships precedence and the critical path
Task Relationships - Precedence and the Critical Path

Exercise - “Plant Startup” Project

task list, with durations and precedence given

  • 1/ Draw a Precedence Diagram
  • 2/ Identify the Critical Path
  • 3/ Calculate the shortest duration
early late start slack

Unnecessary Risk - Now

Another Job is also on the

Critical Path!

  • Safest - BUT
  • Loss of Focus (thinking about unimportant task)
  • Parkinsons Law will apply to AnotherJob (WkrB not busy)
Early, Late Start. Slack.

5 -2 = 3 days slack

Late

Early

2 days

Another Job

Job 1

Job 2

5 days

When should non-critical tasks start?

Introduction to Project Management

critical path
Critical Path

Critical Path - longest dependent path

A -> B -> D

Assumes flexible resource

B

A

D

C

Available Manpower

Introduction to Project Management

critical chain a levelled cp

What determines which

order is best?

Critical Chain - a levelled CP

Critical Chain - takes into account resource limits

Either

A -> B -> C-> D

or

A -> C -> B -> D

B

A

D

C

Available Manpower

risks
Discussion - what can go wrong?

What are the sources of schedule risk?

What are the sources of cost risk?

What is a successfully-controlled project?

The Risk Register

External, Internal Risks

Risks

Introduction to Project Management

controlling processes
Controlling Processes

Direct

Work

Initial

Plan

Review

Plan

Do work

Report

Progress

Change

Requests

communication
Communication

Regular (monthly?) Steering Committee Meetings

1/ What does she need to

know to control the project?

Regular (weekly?) and ad-hoc Project Meetings

2. What does the

Steering Committee

want to know?

communication1
Communication

1/ What does she need to

know to control the project?

  • What’s done?
  • What’s in trouble?
  • What resources/options are needed?
  • What resources/options are available?
communication2
Communication

S.M[.A.R.T]

  • What’s done?
    • Estimating progress of partly-completed tasks
  • What’s in trouble?
    • Do we need to worry about every task
    • Do we care how long a non-critical task takes?
  • What resources/options are needed?
    • Do estimates need revision?
    • Are there new tasks?
    • Has the critical path/chain changed?
  • What resources/options are available?
    • when do staff become free?
communication3
Communication
  • When are we going to get it?
  • What’s it going to cost?
  • What are the risks?

2. What does the

Steering Committee

want to know?

May useEarned Value Analysis (EVA)

- a formal way of measuring progress

handling project tradeoffs
Handling Project Tradeoffs

The “Triple Constraint”

Scope

Cost.

Time

Cost

What about Risk <- - - > Certainty?

human factors and the problem of estimates
Human Factors and the Problem of Estimates
  • A Specialist Project Company (eg Civil & Civic) has few staff, uses many contractors
    • Can add resources as needed
    • Doesn’t pay for idle time
    • Each task is contracted, the contractor has no other work (as far as C&C are concerned)
functional organisations
Functional Organisations
  • At R&SA, project staff may be drawn from different areas
  • Project staff may have many tasks at once
  • This creates some difficult project issues
    • Joes Story

Claims

Accounts

Branch

project planning part 2
Project Planning (Part 2)
  • Take the “Reasonable Estimate” and multiply by fudge factor
    • necessary in order to meet promised delivery
  • Work on several things at once
    • how else to keep busy?
  • Both of these are the COMMON PRACTICE
  • According to “Critical Chain” they’re BOTH WRONG

Introduction to Project Management

the problem of estimates
The problem of estimates
  • “Task will take 5 days”
  • What does this mean?
    • Will take on average 5 days?
    • 50% probability that it will complete in 5 days?
    • Almost certainly (80%? 90%?) will complete in 5 days?

Introduction to Project Management

probability curve

Where are you

going to put

this line?

Probability Curve
  • Almost certainly estimates contain substantial buffers
  • Most workers are unaware of this, and can’t tell you “How much buffer is allowed?”
  • Even if they could, they’d be too suspicious of your motives to tell you

Introduction to Project Management

parkinson s law
Parkinson’s Law

Predicted effect?

Worker must slow down

or make work to look busy

Worker is undercommitted

Worker must keep busy

Introduction to Project Management

combining estimates serial tasks
Combining Estimates -Serial Tasks
  • Each job estimated as 5 days
  • How long will the project take?
  • If each task has safety margin, 20 must be a SAFE estimate!!!!

Job 1(Wkr A)

Job 2(Wkr B)

Job 3(Wkr C)

Job 4(Wkr B)

Introduction to Project Management

slide41

Job 1(Wkr A)

Job 2(Wkr B)

Job 3(Wkr C)

Job 4(Wkr B)

  • The “simple maths” answer (20) is invariably optimistic.
  • Experienced Project leaders add their own fudge factors
    • “5 + 5 = 13”
  • Yet we have already seen that each estimate has substantial safety
  • Why do we have to add more?
slide42

Non-critical Jobs

Another Job(Wkr B)

Another Job2(Wkr B)

Job 1(Wkr A)

Job 2(Wkr B)

Job 3(Wkr C)

Job 4(Wkr B)

  • If Job 1 finishes early, can Wkr B start on Job 2?
    • Perhaps - has he finished “Another Job”?
    • If not, does he know that “AJ” is not critical, and should be set aside? What if this makes AJ2 critical?
  • Result:-
    • Delays are passed on in full
    • Advances are usually wasted.
where do we go wrong
Where do we go wrong?

Introduction to Project Management

the solution critical chain

Should complete

somewhere within

this

The Solution (“Critical Chain”)
  • Replace this project plan, which we probably won’t meet
  • with one that is
    • ? Shorter
    • More likely to be met
    • easier to monitor

through intelligent use of explicit buffers

Project, with safety margins hidden

Project, with NO margin

Explicit Buffer

Introduction to Project Management

buffers and schedule pressure
Buffers and Schedule Pressure
  • Should project due-date be pushed to make room for buffers?YES!!!!!
  • BUFFERS ARE NOT OPTIONAL!!!!!
  • YOU HAVE ALREADY CHOPPED 25% OUT OF THE SCHEDULE - DON’T LET MANAGEMENT FORCE YOU TO HIDE YOUR BUFFERS, AS YOU USED TO!

Introduction to Project Management

exercise
Exercise
  • Replan Plant Startup Gantt Chart with Explicit Buffers
  • Discuss
    • What effect has this had on project time?
    • What effect is it likely to have on the project reporting
      • Upwards
      • Downwards
    • IF
      • People understand about buffers
      • If they don’t

Introduction to Project Management

early late start slack1
Early, Late Start. Slack.

Use (Latest - buffer) start

Late

Early

1 day

buffer

.

.

Job 1

Job 2

5 days

When should non-critical tasks start?

Introduction to Project Management

closure processes
Closure Processes
  • Closes [stage of] project
    • Acceptance - did it meet spec (contract)?
    • How did we do?
      • Cost, schedule variance
    • What can we learn for next time
    • Should we update our standards?
review
Review

1/ Introduction

Project Management Processes

2/ Initiation

3/ Planning

4/ Communicating and Controlling

5/ Human Factors and the Problem of Estimates