Project Management for Your Local Section / ChapterLee Stogner, PMP2005 Leadership WorkshopTucson, ArizonaMarch 12, 2005Seminar ObjectivesBenefits of Sound Project ManagementlLess overall project costlLess strain on working capitallEffective use of resourceslMore timely project completionlHigher quality of the final productProject Management OverviewlWhat is a project?lWhat is project management?lWhat is project success?lWhat factors determine project success?A Project When a task.lHas a defined objectivelHas a deadlinelRequires integration of knowledge and experience from various organizationsProject Management is:PMPMPMPMPMPMPMPMPMPMPMPMPMPMPMPMPMProject Management is:Causing a PlannedUndertaking to HappenPMPMPMPMPMPMPMPMPMPMPMPMPMPMPMPMPMProject ManagementlComplex and numerous activitieslUnique - a one time set of eventslFinite - a begin and end datelLimited resources and budgetlMany people involvedlSequenced activitieslEnd product or service must resultProgram ManagementlLarger in scope than a projectlMade up of several projectslMade up of a number of similar productslPrograms tend to be more permanentPeanuts What is Project Success?Factors in Project SuccesslProject Management PhilosophylProject Management Role and ResponsibilitylProject Management Principles and PracticesProject Management PhilosophylThe “Golden Rule” of Project Management is three words:lPlanlOrganizelControlProject Management Roles and ResponsibilitieslProject ExecutionlMaintain Customer RelationslCreate a Positive EnvironmentlProject Execution StrategylProject ManagementlQualitylSafetylRisk ManagementlDesign/Develop/ProgramlImplementationlDocumentationlTrainingProject Execution PlanCustomer RelationslDevelop CommunicationlEnsure Timely ParticipationlInclude the Customer on the Project TeamlDevelop Trust and ConfidenceCreate a Positive Environmentl_ Effectivelyl_ Member of the TeamlUtilize _ _ Activitiesl_ SuccessSafetyMaintain a safe working environmentProject Management Principles and PracticeslDefine Project ObjectiveslDevelop Project Execution PlanlDefine Baselines for ControllManage RisklClose out EffectivelyDefine Project ObjectiveslExpected deliverableslRequired resources (total installed cost)lRequired timing (opening date)lSafety and EnvironmentallTotal QualityDefine S.M.A.R.T. Project ObjectiveslS pecificlM easurablelA ssignablelR ealisticlT ime relatedAlignment ProcessTeam RequirementslSkills needed ?lIndividuals identified ?lWhen are they needed ?lWhere are they ?lTraining needed ?lInterpersonal compatibility ?The Four Cornerstones of Project ManagementCostScopeScheduleQualityCornerstones ofProject ManagementCostScopeScheduleQualityScopePoor scope definition is the major contributing factor to cost overruns in the engineering and construction industry.CAUTIONCost Influence Relative TimeInitial Scoping EffortlSets the baseline for cost and schedulelMust involve the right peoplelMust include implementationlIdentifies items not includedlMaximum influence on project costlBreaks project into manageable piecesDrawingsEstimateCostReportsContracts Facility ServicesBillofMaterialsWBS Element/Work PackageScheduleThe WBSSuccessful Work BreakdownlStatus and completion is easily measuredlDefinite beginning and endlIt is familiar with prior experiencelManageable work assignmentslOne continuous stream of work from start to finishSteps for constructing a WBSlDivide the project into major objectiveslPartition objectives into activitieslDivide activities with missing characteristics into subactivitieslRepeat #3 until all subactivities have desired characteristicslLowest subactivities are the basis of work packagesThe effect of “creeping scope” is a major cause of cost overruns$Creeping scopeTo manage creeping scopelKeep scope documents currentlFreeze design after the estimate has been approvedlAllow only those changes that are justified by benefitlUse an effective change management procedureThe Four Commandments of Good Project ScopeWritten Well defined Clearly understood AchievableCornerstones ofProject ManagementCostScopeScheduleQualityAspects of CostlEstimateBasis for ControllCost ControlApplication of control proceduresto follow financial progressEstimate RequirementslDefine project costintegrate scope, schedule, and resourceslDefine estimate basislIdentify potential riskslIdentify contingency/escalationlIdentify items not includedElements of Cost ControllEstablish the baseline (estimate)lMeasure variation from baselinelTake corrective actionCost Control SystemlDetailed project scope/work packagelControl estimatelChart of accountslCost status reportlForecasting processlChange management procedurelCash flow forecastProject ControlProjectDay 1-To do list:Kick off meetingProject scheduleIntegration of Cost and TimeBasic Elements of the Control SystemlA project plan: Scope, schedule, estimateslA monitoring system which measures performance against planlA reporting system which identifies deviations from the planlA system which communicates deviations to the right peoplelCorrective actionslForecasting the project outcomeKey Control PhilosophieslDefine the baseline for control1._ 2. _3. _ 4. _lDivide project into manageable pieceslRemember: Ability to influence cost is maximum early in the projectKey Control Philosophies (cont)lDefine and manage risk/opportunitylIntegrate scope and estimated cost into schedulelMake informed decisionslAnticipate deviations/changeslAdopt the “end product” approachlPlan ahead from phase to phaseBasic Project Control StepslDefine the project scopelDevelop a project plan consistent with:lproject scopelestimates (cost constraints)lschedule (constraintslresources availablelReport progress and compare with budget and forecastlControl by taking corrective actionContingency - Plan for Change Cornerstones ofProject ManagementCostScopeScheduleQualitySchedulelPlanning -Identification of the sequence of events necessary to completethe projectlScheduling - Determination of timing andassembly of project activities to give overall completion timeFront End ScheduleA way to get the project started rightDesign Program Install / Test System TurnoverBasis for Project SchedulelProject objectiveslProject scopelProject milestoneslProject estimate (budget)lResource availabilityThe Critical PathlIdentifies project prioritieslShows activity relationshipslEnables schedule analysislReflects project strategylPromotes teamworkBasic Network DiagrammingExpanded Network DiagrammingThe Bar ChartThe Gantt ChartProject Schedule - ToolsMicrosoft ProjectProject Schedule - Toolswww.primavera.comFive Phases of Project ManagementCornerstones ofProject ManagementCostScopeScheduleQualityDesignBasisContinuous ImprovementQuality AssuranceQualityControlTotal ProjectQualityManagementTotal Project Quality ManagementProject Quality ImprovementlDevelop a quality management plan early in the projectlInclude representatives from all affected organizational units on the project teamlInitiate the project effectively through kick-off and alignment meetingslReview performance and measure successProject Quality Improvement (cont)lDefine scope and review periodicallylLimit scope changesformal change procedurerequire justificationlComplete more engineering up-front before defining cost and schedulinglObtain constructability, operability and maintainability input to designCost of QualityRisk ManagementManage RisklWhat is risk?lSources of risklKinds of risklRisk Management ProcesslIdentify riskslDefine consequenceslDevelop a mitigation planlDocumentSources of RiskTechnicalFinancialSocio-EconomicContractualRisk Management ProcessIdentify RiskAnalyze RiskRespond to RiskDocument RiskSources of Help to Identify RisklSite investigationslContract documentslSchedulelTeam brainstorminglBody of experienceRisk Control MethodslAvoidlReducelSharelInsurelAcceptlwith contingencylwithout contingencylContainRisk ContainmentlClearly define insurance responsibilities in contractslUse qualified personnellDocument and communicate project strategylDefine roles and responsibilitieslPrepare contingency plans for critical activitieslUse up-front team buildingRisk Containment (cont)lUse qualifies contractors and vendorslPreconstruction work briefings (especially safety)lRehearse critical activities or use mock-upslUse strong project control systemslManage contingencyProject Close-outProject Closeout - Major PhaseslObtain client acceptancelDocument the projectlConduct the post implementation auditlIssue the final reportPyramid CartoonPlan the Work Work the PlanSuccessful Project ManagementSuccessful Project CompletionProject Management - Learning Morewww.pmi.orgProject Management - Learning MoreProject Management Body of KnowledgeProject Management - Learning Morewww.amazon.comProject Management - Get Certifiedwww.pmi.orgProject Management - IEEE EMSwww.ewh.ieee.org/soc/emsClass Exercise - Plan a ProjectLee Stogner - Contact InformationLee Stogner, PMPRockwell AutomationMobile 864-360-9415Email l.stognerieee.org