Project Management Techniques
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ProjectManagement.pptBenefits of Sound Project Management
- Less overall project cost
- Less strain on working capital
- Effective use of resources
- More timely project completion
- Higher quality of the final product
Project Management Overview
- What is a project?
- What is project management?
- What is project success?
- What factors determine project success?
A Project
When a task...
- Has a defined objective
- Has a deadline
- Requires integration of knowledge and experience from various organizations
Project Management is:
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Project Management is:
Causing a Planned
Undertaking to Happen
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Project Management
- Complex and numerous activities
- Unique - a one time set of events
- Finite - a begin and end date
- Limited resources and budget
- Many people involved
- Sequenced activities
- End product or service must result
Program Management
- Larger in scope than a project
- Made up of several projects
- Made up of a number of similar products
- Programs tend to be more permanent
Peanuts
What is Project Success?
Factors in Project Success
- Project Management Philosophy
- Project Management Role and Responsibility
- Project Management Principles and Practices
Project Management Philosophy
- The “Golden Rule” of Project Management is three words:
- Plan
- Organize
- Control
Project Management Roles and Responsibilities
- Project Execution
- Maintain Customer Relations
- Create a Positive Environment
- Project Execution Strategy
- Project Management
- Quality
- Safety
- Risk Management
- Design/Develop/Program
- Implementation
- Documentation
- Training
Project Execution Plan
Customer Relations
- Develop Communication
- Ensure Timely Participation
- Include the Customer on the Project Team
- Develop Trust and Confidence
Create a Positive Environment
- __________ Effectively
- __________ Member of the Team
- Utilize _______ _______ Activities
- __________ Success
Safety
Maintain a safe working environment
Project Management Principles and Practices
- Define Project Objectives
- Develop Project Execution Plan
- Define Baselines for Control
- Manage Risk
- Close out Effectively
Define Project Objectives
- Expected deliverables
- Required resources (total installed cost)
- Required timing (opening date)
- Safety and Environmental
- Total Quality
Define S.M.A.R.T. Project Objectives
- S pecific
- M easurable
- A ssignable
- R ealistic
- T ime related
Alignment Process
Team Requirements
- Skills needed ?
- Individuals identified ?
- When are they needed ?
- Where are they ?
- Training needed ?
- Interpersonal compatibility ?
The Four Cornerstones
of Project Management
Cost
Scope
Schedule
Quality
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Scope
Poor scope definition is the major contributing factor to cost overruns in the engineering and construction industry.
CAUTION
Cost Influence Relative Time
Initial Scoping Effort
- Sets the baseline for cost and schedule
- Must involve the right people
- Must include implementation
- Identifies items not included
- Maximum influence on project cost
- Breaks project into manageable pieces
Drawings
Estimate
Cost
Reports
Contracts
• Facility
• Services
Bill
of
Materials
WBS Element/
Work Package
Schedule
The WBS
Successful Work Breakdown
- Status and completion is easily measured
- Definite beginning and end
- It is familiar with prior experience
- Manageable work assignments
- One continuous stream of work from start to finish
Steps for constructing a WBS
- Divide the project into major objectives
- Partition objectives into activities
- Divide activities with missing characteristics into subactivities
- Repeat #3 until all subactivities have desired characteristics
- Lowest subactivities are the basis of work packages
The effect of “creeping scope” is
a major cause of cost overruns
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Creeping scope
To manage creeping scope
- Keep scope documents current
- Freeze design after the estimate has been approved
- Allow only those changes that are justified by benefit
- Use an effective change management procedure
The Four Commandments
of Good Project Scope
Written
Well defined
Clearly understood
Achievable
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Aspects of Cost
- Estimate Basis for Control
- Cost Control Application of control procedures to follow financial progress
Estimate Requirements
- Define project cost integrate scope, schedule, and resources
- Define estimate basis
- Identify potential risks
- Identify contingency/escalation
- Identify items not included
Elements of Cost Control
- Establish the baseline (estimate)
- Measure variation from baseline
- Take corrective action
Cost Control System
- Detailed project scope/work package
- Control estimate
- Chart of accounts
- Cost status report
- Forecasting process
- Change management procedure
- Cash flow forecast
Project Control
Project
Day 1
--------------
To do list:
Kick off meeting
Project schedule
Integration of Cost and Time
Basic Elements of the
Control System
- A project plan: Scope, schedule, estimates
- A monitoring system which measures performance against plan
- A reporting system which identifies deviations from the plan
- A system which communicates deviations to the right people
- Corrective actions
- Forecasting the project outcome
Key Control Philosophies
- Define the baseline for control 1._______ 2. ________ 3. _______ 4. ________
- Divide project into manageable pieces
- Remember: Ability to influence cost is maximum early in the project
Key Control Philosophies (con’t)
- Define and manage risk/opportunity
- Integrate scope and estimated cost into schedule
- Make informed decisions
- Anticipate deviations/changes
- Adopt the “end product” approach
- Plan ahead from phase to phase
Basic Project Control Steps
- Define the project scope
- Develop a project plan consistent with:
- project scope
- estimates (cost constraints)
- schedule (constraints
- resources available
- Report progress and compare with budget and forecast
- Control by taking corrective action
Contingency - Plan for Change
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Schedule
- Planning - Identification of the sequence of events necessary to complete the project
- Scheduling - Determination of timing and assembly of project activities to give overall completion time
Front End Schedule
A way to get the project started right
Design
Program
Install / Test
System Turnover
Basis for Project Schedule
- Project objectives
- Project scope
- Project milestones
- Project estimate (budget)
- Resource availability
The Critical Path
- Identifies project priorities
- Shows activity relationships
- Enables schedule analysis
- Reflects project strategy
- Promotes teamwork
Basic Network Diagramming
Expanded Network Diagramming
The Bar Chart
The Gantt Chart
Project Schedule - Tools
Microsoft Project
Project Schedule - Tools
www.primavera.com
Five Phases of Project Management
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Design
Basis
Continuous Improvement
Quality Assurance
Quality
Control
Total Project
Quality
Management
Total Project Quality Management
Project Quality Improvement
- Develop a quality management plan early in the project
- Include representatives from all affected organizational units on the project team
- Initiate the project effectively through kick-off and alignment meetings
- Review performance and measure success
Project Quality Improvement (con’t)
- Define scope and review periodically
- Limit scope changes formal change procedure require justification
- Complete more engineering up-front before defining cost and scheduling
- Obtain constructability, operability and maintainability input to design
Cost of Quality
Risk Management
Manage Risk
- What is risk?
- Sources of risk
- Kinds of risk
- Risk Management Process
- Identify risks
- Define consequences
- Develop a mitigation plan
- Document
Sources of Risk
Technical
Financial
Socio-Economic
Contractual
Risk Management Process
Identify Risk
Analyze Risk
Respond to Risk
Document Risk
Sources of Help to Identify Risk
- Site investigations
- Contract documents
- Schedule
- Team brainstorming
- Body of experience
Risk Control Methods
- Avoid
- Reduce
- Share
- Insure
- Accept
- with contingency
- without contingency
- Contain
Risk Containment
- Clearly define insurance responsibilities in contracts
- Use qualified personnel
- Document and communicate project strategy
- Define roles and responsibilities
- Prepare contingency plans for critical activities
- Use up-front team building
Risk Containment (con’t)
- Use qualifies contractors and vendors
- Preconstruction work briefings (especially safety)
- Rehearse critical activities or use mock-ups
- Use strong project control systems
- Manage contingency
Project Close-out
Project Closeout - Major Phases
- Obtain client acceptance
- Document the project
- Conduct the post implementation audit
- Issue the final report
Pyramid Cartoon
Plan the Work…
Work the Plan
Successful Project Management
Successful Project Completion
Project Management - Learning More
www.pmi.org
Project Management - Learning More
Project Management Body of Knowledge
Project Management - Learning More
www.amazon.com
Project Management - Get Certified
www.pmi.org
Project Management - IEEE EMS
www.ewh.ieee.org/soc/ems
Class Exercise - Plan a Project
Lee Stogner - Contact Information
Lee Stogner, PMP
Rockwell Automation
Mobile 864-360-9415
Email [email protected]
