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PJM6000

Project Management Practices

Week 5

Deb Cote, MS, Professor Al Grusby, MBA, PMP®

Review Last Week ➢ Stakeholder identification and analysis

➢ Stakeholder register

➢ Communications planning

➢ Communications channels

➢ Communications tips – challenges, model, audience analysis, bad news, clarity, brevity, listening

➢ Communication management plan

➢ Role of PM and project team in stakeholder and communications planning and management

Lecture Overview

❑ Project execution

❑ Project monitoring and controlling

❑ Baselines

❑ Earned Value Management

❑ What is change?

❑ Change management

❑ Change control

❑ Change requests

❑ Team development

❑ Issues management

❑ Ethics 3

Project Management Processes

Initiating Planning Executing Monitoring and Controlling Closing

Develop Project Charter Develop Project Management Plan Direct and Manage Project Work Manage Project Knowledge

Monitor and Control Project Work Perform Integrated Change Control

Close Project or Phase

Plan Scope Management Collect Requirements Define Scope Create WBS

Validate Scope Control Scope

Plan Schedule Mgmt. Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule

Control Schedule

Plan Cost Mgmt. Estimate Costs Determine Budget

Control Costs

Plan Quality Management Manage Quality Control Quality

Plan Resource Management Estimate Activity Resources

Acquire Resources Develop Project Team Manage Project Team

Control Resources

Plan Communications Manage Communications Monitor Communications

Plan Risk Management Implement Risk Responses Control Risks

ID Stakeholders Plan Procurement Conduct Procurements Control Procurements

Plan Stakeholder Mgmt. Manage Stakeholder Engagement Control Stakeholder Engagement

Project Management Processes

Initiating Planning Executing Monitoring and Controlling Closing

Develop Project Charter Develop Project Management Plan Direct and Manage Project Work Manage Project Knowledge

Monitor and Control Project Work Perform Integrated Change Control

Close Project or Phase

Plan Scope Management Collect Requirements Define Scope Create WBS

Validate Scope Control Scope

Plan Schedule Mgmt. Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule

Control Schedule

Plan Cost Mgmt. Estimate Costs Determine Budget

Control Costs

Plan Quality Management Manage Quality Control Quality

Plan Resource Management Estimate Activity Resources

Acquire Resources Develop Project Team Manage Project Team

Control Resources

Plan Communications Manage Communications Monitor Communications

Plan Risk Management Implement Risk Responses Control Risks

ID Stakeholders Plan Procurement Conduct Procurements Control Procurements

Plan Stakeholder Mgmt. Manage Stakeholder Engagement Control Stakeholder Engagement

Project Execution

PMI Initiation Planning Execution, Monitoring, & Controlling Closure

❑Direct and manage project execution

❑Perform quality assurance

❑Manage project team

❑Procure equipment, materials, resources

❑Manage stakeholder expectations

❑Communicate project information

Project Execution

Project Management Processes

Initiating Planning Executing Monitoring and Controlling Closing

Develop Project Charter Develop Project Management Plan Direct and Manage Project Work Manage Project Knowledge

Monitor and Control Project Work Perform Integrated Change Control

Close Project or Phase

Plan Scope Management Collect Requirements Define Scope Create WBS

Validate Scope Control Scope

Plan Schedule Mgmt. Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule

Control Schedule

Plan Cost Mgmt. Estimate Costs Determine Budget

Control Costs

Plan Quality Management Manage Quality Control Quality

Plan Resource Management Estimate Activity Resources

Acquire Resources Develop Project Team Manage Project Team

Control Resources

Plan Communications Manage Communications Monitor Communications

Plan Risk Management Implement Risk Responses Control Risks

ID Stakeholders Plan Procurement Conduct Procurements Control Procurements

Plan Stakeholder Mgmt. Manage Stakeholder Engagement Control Stakeholder Engagement

Importance of Monitoring & Controlling – Software Project Scenario

• A project is highly visible and of utmost importance to the customer. The project manager has been providing status updates on a weekly basis indicating green status.

• Two weeks before the scheduled implementation, a significant amount of scripts do not pass user testing

• The customer issues a “Stop Work Order”.

• What happened? Was something missed?

Monitoring & Controlling

“You cannot manage what you cannot measure."

Peter Drucker

Monitoring & Controlling

Communicating critical updates to stakeholders so that expectations are met and/or managed.

• Data collected is determined by which metrics will be used for project control. Typical key data collected includes actual activity duration times; resource usage and rates; and actual costs, which are compared against planned times, resources, and budgets.

• Since a major portion of the monitoring system focuses on cost/schedule concerns, it is crucial to provide the PM and stakeholders with data to answer questions.

• Each project may require you to assess the control points and measures if you have variability in scope

Gray & Larson

What Data Should be Collected?

Monitoring & Controlling Questions

What is the current status of the project in terms of schedule and cost?

How much will it cost to complete the project?

When will the project be completed?

Are there potential problems that need to be addressed now?

If there is a cost overrun midway in the project, can we forecast the overrun at completion?

What, who, and where are the causes for cost or schedule overruns?

“How does the Pareto Principle apply to projects? In project management, the Pareto Principle is used to find the 20% of X that drives the 80% of Y.

Pareto Principle

For example, we could use the principle to find the 20% of activities that are responsible for 80% of the labor costs or the 20% of materials responsible for 80% of the material costs. We would then adjust the project monitoring to concentrate on those areas.”

Source: Project Monitoring and Control - techniques to control budget, status

and planning https://www.stakeholdermap.com/project-management/project-

monitoring-and-control.html

15 Sketchbubble.co

• Evaluate test results

– Do they meet our stated standards?

– What actions do we need to take?

• Refer to your Quality Management Plan

– What was acceptable? What were our standards?

• Take corrective action

– As defined in Quality Management Plan

Perform Quality Control

• Use key performance indicators (KPIs) that measure the major single points of failure

• Have a blend of leading vs. lagging

▪ Month end financials – lagging

▪ Forecasted metrics – leading

Lagging indicators can tell you where you’ve been and how you have performed. Leading indicators will tell you where you are going and how you may perform.

Monitoring & Controlling Best Practices

• Planned vs. Actual ▪ Planned budget, schedule, and scope are the costs, dates, and work agreed

upon by all project stakeholders ▪ Project manager baselines the budget, schedule, and scope – all future

measurements will be compared against these ▪ Actual budget, schedule, and scope are the true costs, dates, and deliverables

that occur

• Measure progress throughout the project ▪ Everyone wants to know:

➢ Are we on budget? ➢ Are we on schedule? ➢ Will we deliver what was promised?

▪ If wait to measure at the end, it’s too late; not enough time to recover ▪ Gantt Chart is most common visual to show progress

• Can you re-baseline? • Late or over budget if approved scope changes impact costs and/or dates?

Gantt Chart

Measuring Progress

• Baselines help you identify variances to the plan

• Those variances may indicate that attention is warranted, for example:

▪ After evaluating your cost baseline you note that, using the actuals provided, you are projecting to exceed your baseline by +20%

▪ You may see that the amount of approved change requests impacting the scope of the project are numerous. This may trigger a conversation with the sponsor.

Baselines are Critical

“I think the great part about what I do is that there's a scoreboard. At the end of every week, you

know how you did. You know how well you prepared. You know whether you executed your

game plan. There's a tangible score.”

-Tom Brady, New England Patriots Quarterback

Source: https://www.brainyquote.com/quotes/tom_brady_807009

Monitoring

Talk about these topics as a team:

• How are we doing in this project?

• Is everything under control?

• What are our major risks?

• Are we progressing as planned?

• How are we doing on budget?

• How are we doing on schedule?

• Is our sponsor/customer happy with our progress so far?

Monitoring & Controlling : What Questions

Need Answering?

• Monitor and control changes to the triple constraint: Scope, Schedule, Cost

• Scenarios for a training development project ▪ Example: Selecting vendor took longer than planned ▪ Example: Course costs more than planned ▪ Example: Customer requested multiple changes in course

Implement change control procedures

• Validate scope ▪ Are we producing what we said we’d produce in a quality

acceptable to the customer?

• What changes might you make to scope, schedule, cost?

Triple Constraint

Earned Value Management (“EVM”)

Background – Earned Value • Basic concepts conceived in industrial context

• More fully developed during 1950s – 1960s

• Emerged as a tool to:

– Track costs

– Report progress

• “What did we get for the costs we incurred?”

Purpose

• Example Construction Project:

• Project details:

– Total Budget: $200,000

– Baseline Schedule: 5 months

– Assume costs equally spread over 5 months at $40,000 per month

Purpose

• Current Status

– End of month 2

– Actual Cost to date: $100,000

Purpose

• What does this mean?

• Ahead of schedule?

• Over budget?

• Under budget?

• Behind schedule?

Overview of Terminology • BAC – Budget at

Completion

• AC – Actual Cost

• EV – Earned Value

• PV – Planned Value

• CV – Cost Variance

• SV – Schedule Variance

• SPI – Schedule

Performance Index

• CPI – Cost Performance

Index

• ETC – Est. to Completion

• EAC – Est. at

Completion

How to Determine Earned Value?

• Imagine a simple project with four phases

• When deliverables or tasks are partially complete, you estimate a percentage

Deliverable Budgeted Amount

Phase 1 $100

Phase 2 $100

Phase 3 $50

Phase 4 $250

Earned Value

$100

$200

$250

$500

Earned Value

Earned Value Numbers

Title Value

Actual Cost $100,000

Planned Value $80,000

Earned Value $90,000

Earned Value Analysis

• Variances:

– Cost Variance (CV) = EV – AC (-$10,000)

– Schedule Variance (SV) = EV – PV ($10,000)

• Indexes:

– Cost Performance Index (CPI) = EV / AC (.90)

– Schedule Performance Index (SPI) = EV / PV (1.125)

Negative

number ->

over budget

Performance Indices

• CPI – Cost Performance Index

– CPI = 1: project is on budget

– CPI > 1: project is under budget

– CPI < 1: project is over budget

• SPI – Schedule Performance Index

– SPI = 1: project is on schedule

– SPI > 1: project is ahead of schedule

– SPI < 1: project is behind schedule

Earned Value Forecasting

• BAC = $200,000

• EAC = BAC / CPI = $222,222

• ETC = EAC – AC = $122,222

• VAC = BAC – EAC = -$22,222

Illustration

Title Value Title Value

BAC $200,000 Schedule Variance $10,000

Actual Cost $100,000 Cost Perf. Index .90

Planned Value $80,000 Sched. Perf. Index 1.125

Earned Value $90,000 Est. to Completion $122,222

Cost Variance -$10,000 Est. at Completion $222,222

• Results:

– Over budget

– Ahead of

schedule

Summary

• It is a project performance & measurement tool

– Gain insight into past project performance

– Understand the current project position

– Forecast the future performance & outcomes

• Accomplished through revealing the relationship between actual cost, planned value, & earned value

Limitations • Understanding limitations creates realistic

expectations

• Doesn’t tell you how to correct variances

• Data can be manipulated

• Relies on accurate data

• Quality is not directly considered as part of metrics

Reporting Best practices

• Do

– Summarize the data (use chart, table, etc.)

– Explain terms (SPI, CPI, etc) in understandable language

– Explain why you are where you are

– Explain what next steps are

• Don’t

– Show calculations in body of report (put in an appendix)

Class Exercise – Earned Value

• On day 51 a project has an earned value of $600, and actual cost of $650, and a planned value of $560.

– What is the Schedule Variance (SV) for the project?

– What is the Cost Variance (CV) for the project?

– What is the Cost Performance Index (CPI) for the project?

– What is the assessment for the project on day 51?

Project Management, The Managerial

Process, Larson, Grey

Class Exercise – Earned Value

• Schedule Variance (SV) = EV – PV

– SV = $600 - $560 = $40

• Cost Variance (CV) = EV – AC

– CV = $600 - $650 = -$50

• Cost Performance Index (CPI) = EV / AC

– CPI = $600 / $650 = .92

• The project is ahead of schedule and over budget

Project Changes

Change Management

• Helping show the value of changes to those impacted and ease the transition

Change Control

• Approval of product/service and agreed upon process to control changes to it

Change Requests

• Requests from stakeholders to deviate from approved deliverables

Configuration Management

• Process for methodically implementing and tracking approved changes

Let’s Review What CHANGE is

• Planning process should include a defined process for making changes to the plan: – Who/how collects change requests?

– Who/how evaluates change requests?

– Who/how makes decision on change requests?

– PM updates plan and communicates change

• Change requests can originate from any stakeholder – Customers, end users, project team members,

sellers, sponsor, interested parties, etc.

Change Request Process

It documents the

process for:

▪ Who can submit change

requests.

▪ How change requests

submitted.

▪ How change requests

tracked

▪ What the approval

thresholds are

▪ How the change request

status is communicated

Change Control Form

Change Control Board

• Create a team culture of transparency

• Issues get raised; results in change request

• Why:

– Sponsor asks for a new feature

– If requirement not captured correctly, need to change scope

– Defect is detected

Project Change is Ongoing

As project managers we should embrace change…and then assess the impact.

Change needs to be assessed in relation

to the triple constraint

Change should never just be absorbed..but

documented fully and evaluated.

Change is Inevitable

Kotter’s Stages of Change

• Used when variance indicates a need for change

• Defined in the Change Control Document

• Formal

• Result in re-baseline

Change Requests

Information needed on a Change Request

• What needs to be changed: Original task, assignment, schedule, etc.

• What is the proposed change

• Reasons for the proposed change

• Analysis

– Impact of the proposed change

– Alternatives to the proposed change

Change Request Info

Integrated Change Control

• Why is it called “Integrated” Change Control?

– Changes that occur at any one part of a project need to be understood with respect to the whole project.

– What is the impact of the change?

• Avoid project surprises from changes that are not well thought out.

Integrated Change Control – Class Exercise

• You are the general contractor working with your client on their kitchen remodel project.

• Just after completing the demolition of the kitchen, the client decides they need to add a trash compactor to the kitchen. No problem right? You haven’t started re-building yet so the added cost to your original quote should just be the cost of the new compactor?

– Explain all the ways this probably isn’t the case.

– How might performing Integrated Change Control disappoint the client in the near term but save a lot of problems down the road?

– Work individually - 10 minutes.

– Get together in your groups and compare results – 10 minutes.

Everybody likes each other until things get tough. Then you will find out what kind of team you have, and I

understand that as much as anyone.

-Doc Rivers, Celtics Head Coach

Source: https://www.brainyquote.com/quotes/doc_rivers_573362

A Common Phenomena

Stages of Team Development • Bruce Wayne Tuckman (1938)

• Psychologist (Ohio State University)

• Developed five stages of team development

• Tuckman’s stages (1977)

Photo credit: www.toolshero.com

Stages of Team Development

www.toolshero.com

Issues Management

Issues Management Process

Sample Template

Issues Log

Ethics

Ethics are standards of beliefs and values that

guide conduct, behavior & attitudes…simply

doing the right thing”

From Managing for Dummies, Nelson, 2003

We each have a well-developed sense of what

the “right thing” is. We’re just putting our own

values into practice.

Standards, such as the Project Management

Institute’s (PMI) Code of Ethics & Professional

Conduct, help with details for our circumstances

Ethical Practices Paper

Lecture Review

✓ Project execution

✓ Project monitoring and controlling

✓ Earned Value Management

✓ Baselines

✓ What is change?

✓ Change management

✓ Change control

✓ Change requests

✓ Team development

✓ Issues management

✓ Ethics 61

What’s Next

• Secondary posts due by Saturday 11:59pm

• TWO written assignments (Ethics and Change) due Sunday 12:00 noon.

• Week 6 readings:

• The PMBOK Guide - Part 1 105-120 Part 2 613-632

• Gray & Larson - Chapters 10 and 13

• IMPORTANT: Plan Ahead.

– Week 6 (Closing/Lessons Learned & Curriculum Map) also has TWO written assignments, but because term ends on Saturday, curriculum map is due 11:59pm Thursday, and lessons learned is due 11:59pm Saturday, to get in before end of course and grade by deadline.