Module 10
Project Management and Consulting
Importance of Project Management
Vital to Organizations- No matter what the major
–Well-defined goals
–Teams and Individuals have responsibilities
–Recommendations and Implementation
–Measurable Results – Success or Failure?
Resume Builder – Little stories about your career
–What you have done. Ability to get results. Leadership experience.
–How do you deal with adversity and ambiguity…
–Good way to document your accomplishments
Corporate Career
–Good project managers make good corporate leaders
–Top Project Managers have the ability to choose projects, teams…
–Opportunity for top talent to shine
Be a process doctor!
Devising a Solution
Being a Good Consultant
1. DATA SKILLS - Are you skilled at Data Collection, Data Analysis?
2. VALUES FEEDBACK - Seek Feedback, Use Feedback
3. CREATIVITY - Be creative in developing solutions
4. UNDERSTANDS PEOPLE - Create solutions that work for humans
5. CHANGE AGENT - Anticipate Learning Curves and Resistance to Change
6. DESIRE TO HELP PEOPLE – Don’t get angry. Remember you are there to help.
7. VALUES SIMPLICITY - Easy to Understand Solutions – Explain changes, benefits.
1. MAKING ASSUMPTIONS – Never assume. Investigate. Investigate more.
2. DEVELOPING SOLUTIONS TOO SOON - Long lasting solutions are rarely obvious
3. LISTENING TO CLIENT’s PRE-FABRICATED SOLUTIONS – Why now?
4. SCOPE INFLATION – Limited time. Limited Resources. Stay focused.
5. STICKING TO A DEAD-END SCOPE – Is it time to quit?
6. MAITAINING HAPPINESS – Change is difficult.
Being a Good Consultant – Things to Avoid
Improvement Projects:
The Process of Improvement
Business Process Improvement (BPI)
1. DESIRED STATE – Quantifiable Goals
2. PRESENT STATE – Collect Data and Observe
3. GAP ANALYSIS – Compare Present vs Desired State
4. PROJECT SCOPE – You can’t fix everything. Stay focused.
5. COLLECT and SHARE DATA, ANALYZE – Investigate. Get Feedback. Consider
solutions.
6. DEVELOP SOLUTIONS – Solutions they will buy. Make an impact. Push for creativity.
7. DEVELOP IMPLEMENTATION PLAN – Provide a path to adoption.
Step ONE: DESIRED STATE
Interview Client - Identify Objectives, Goals and Metrics
Goals must be quantifiable. Establish a hierarchy.
Step TWO: PRESENT STATE
Interview, Observe, and/or Collect Data Utilize the same metrics from “Step One”
Process Maps and Data Inspections – Do actions and documentation match?
Step THREE: Gap Analysis – Gap between Desired and Present State
Illustrate the GAP – utilize desired metrics and goals Do NOT develop Solutions!!!
Share and discuss the “GAP” with clients Why does the gap exist? Consider potential causes.
Business Process Improvement (BPI)
Step FOUR: Develop Project Scope
Develop a focused project. Which GAPS will be addressed on this improvement project?
Establish goals and desired outcomes.
What will be investigated? What will be developed?
Step FIVE: Collect Data, Share Data, Analyze
Deeper Internal and External Investigation - Benchmark, learn from others, success/failure
Get Feedback- Share and Discuss Findings
Consider possible elements of a solution
Business Process Improvement (BPI)
Step SIX: Develop Solutions and Recommendations
Does this problem require change and/or innovation?
If a solution is needed, where to start?
–Focus on YOUR client - Avoid one-size fits-all solutions
–Start with a couple of options
–Get Innovative: Be Bold
“Good Ideas” - Will they actually adopt the idea?
Do some issues require further study? Future projects
Step SEVEN: Develop an Implementation Plan
How should these ideas be put into action? Be Specific!
Timeline
Training and Development Considerations Outlined
Anticipated problems and corrective actions
Metrics, Standards, and Checkpoints
Business Process Improvement (BPI)
•Get Feedback Early
and Often
•Are you Preparing for
Resistance at Final
Presentation
Consulting
Selling your Solution
SECTION ONE – Present a Valuable Idea
1. List Values, Objectives, and Goals – What does the client want?
2. Recommend - Basic Solutions and Anticipated Benefits
SECTION TWO – Convince on all fronts
3. Cost-Benefit Analysis - Money is important
4. Value to Work Ratio – Expected outcome / Expected investment
5. Organizational fit – Rules, Regulations, Culture, Organizational structure
SECTION THREE – How will success be Measured?
1. Explain the GAP and the path to success with metrics
2. How will metrics signal positive and negative?
SECTION FOUR – Implementation (Making the idea happen)
Recommendations: Prepare to Sell
Managing Projects
Fundamentals
“An endeavor in which human, material, and financial resources
are organized, in a novel way,
to undertake a unique scope of work, of a given specification,
within the constraints of cost and time,
so as to achieve a beneficial change
defined by quantitative and qualitative objectives.”
What is a Project?
1. DEFINE THE PROJECT
–Clarity of objectives. Eliminate ambiguities. Avoid
Arguments later.
2. ESTABLISH PROJECT PRIORITIES
–Cost, Time, Performance – competing objectives –
pick two
3. WORK BREAKDOWN STRUCTURE
–Break work items into smallest units.
–Estimate of needs: people, Time, Cost
4. TRACK PROJECT PROGRESS -
–Are we on-time, ahead of schedule, behind
schedule?
–What happens when different groups need help?
–Importance of project management software
Project Management – Key Steps
Make Estimates
Project Priorities
YCLE.
ASSOCIATED
see”
RESOURCES
comnors
CONTROL
Banish
esPL
LANNING
zs
PR
OJEG:
Tanan
a
cate
im
EVENTS.
¢
TIME
=
MANAGEMENT
seine
nos
eee
ORGANZATION
cere
FIVER
“cea
CHAINS
COS
TDEVELOPMENT
=
zs
CONSTRAINT
TASKS
DOR
Ie
5
song
ANALYSIS
"=="
(MANAGER
FOLLOWS:
ame
Project Management Terminology
Objectives – Goals. Expectations or desired outcomes in the following categories”
Performance and Quality – Improve the design of product
Budget – Reduce the cost of logistics by 10%
Time – Reduce delivery times by 2 days
Deliverables – Description of services/products to be delivered
Presentation and/or Documents: Design, Process, Report, Contract
Research (Data or Document)
Physical item or Intangible outputs (Software)
Milestones – A Specific Event in a Project.
Date of an important decision – Choose location for Factory
Start of a new phase of project, End of a project phase – Begin electrical wiring in the home
A deadline – Date home must be completed and inspected
Project Management Terminology
•AON (Activity On Node) Network Diagram – Schematic representation of the
activities that need to be performed, a precedence criteria and duration.
•Critical Path – The Longest Path (in terms of time) in the AON Network
Diagram. This path dictates the expected completion time of the Project. Items
on this path must be completed in time in order for project to be completed on
schedule.
•Slack– The amount of time an activity or path can be delayed without
impacting the length of the critical path.
•Crashing the Project – Shortening the Time of the Project by increasing the
number of resources usually in the most cost effective manner. When
“Crashing” always choose the cheapest solution.
Project Management Terminology
Prep
Food & Eat
10
Read
Headlines
5
Dishes
5
Get Dressed
10
Shower
15
Weather &
Pick Clothing
5
AON Diagram
“Daily Project” Example
START
Hair/Make-up
15
Walk to Class
15
Project Management
Critical Path Method
Activity – Time (DAYS)
A-3 B- 5 C-3 D-1 E-4 F-6 G-2 H-3
PATH TIME SLACK
A B E H ____ ____
A B C F H ____ ____
A B C D G H ____ ____
15
20
17 3
0
5
CRITICAL PATH
ONLY E Can Be Late
NO Slack
Only D &G Can be Late
(combined)
AON NETWORK DIAGRAM
A
3
B
5 C
3
D
1
F
6
G
2
H
3
E 4
Level Yard
Irrigation
Plant Trees
Pavers Fire Pit
Turf Water Feature
Lighting
Why use Project Management Software?
ACTIVITY and DESCRIPTION IMMEDIATE
PREDECESSOR(S)
BEGIN NONE
A. Gather information on company A. Begin
B. Gather information on plant B. Begin
C. Gather information on process C. Begin
D. What are the value-added features of the process D. B, C
E. What is the condition and what are the symptoms E. A, B
F. What is the unknown and what are the
assumptions F. D
G. What is unknown and what are the assumptions G. C
H. Clearly establish project objectives H. D
I. Project scope and size defined explicitly I. E, F,
G, H
J. Literature and benchmarking search J. Begin
K. Identify similar problems solved in company K. A
L. Identify analysis tools available internally L. A
M. Restrictions identified M. I
N. Data collection tasks for subset one N. I
42
O. Data collection tasks for subset two O. I
P. Analysis of data set one P. L, N
Q. Analysis of data set two Q. L, O
R. Analysis of one and two results and
integration of results R. P, Q
S. Develop alternatives A & B for solution S. J, K, L,
M
T. Identify and analyze potential cost/benefits of
Alternative A T. S
U. Identify and analyze potential cost/benefits of
of Alternative B U. S
V. Conduct cost/benefit comparison of A and B V. R, T, U
W. Develop conclusions and recommendations W. V
X. Write executive summary and implementation plan X. W
Y. Write report sections on approach, limitations,
assumptions, etc. Y. R, S
Z. Create appendices with support materials Z. V
END X, Y, Z
ACTIVITY and DESCRIPTION IMMEDIATE
(continued) PREDECESSOR(S)
Begin
A
B
C
D
E
F
H
G
I
J
K
M
L
N
S
O Q
P
U
T
R
V
W
X
Z
Y
End
AON for Old Class Project
Project Management
Crashing the Project
1. Find all possible Paths from Start to End.
2. Find the Critical Path(CP) or Paths.
3. Find the Cheapest Task to Crash in the Critical Path.
–In some cases you may need to consider crashing more than one task in order to affect all Critical Paths.
–Suppose you have 2 Critical Paths - ABC and ABD (Both take the same amount of time to complete)
•If the Crash Costs are A-$10, B-$15, C-$5, and D-$4 crashing will improve cycle time by 1 week
•In this case Crash C and D ($9 total) - Reduces each CP by 1 week
–On the other hand, if instead A-$10, B-$15, C-$6, and D-$6
•In this case crash only A ($10 total) - Reduces each CP by 1 week
4. Crash that item (or those items) by one week.
5. Change completion time in the Activity On Node (AON) Diagram.
6. Change Path times for all affected Paths.
7. Find the New Critical Path or Paths.
8. Repeat steps 3 through 7 until you've reached the desired project time.
9. Find total cost to reduce Total Project time to desired project time.
10. Take note of the increased pressure on each activity. Only those items not in any critical path will have slack
time. All items on the Critical path must be completed within time allotted.
How to Crash a Project
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
OUR PROJECT
No additional
resources are being used
initially
Normal Time Minimum Time Cost/Week
A 3 2 200
B 4 2 600
C 5 3 350
D 6 5 100
E 4 2 450
F 3 2 400
G 4 2 750
H 3 3 ---
Crash the system to 15 weeks. Keep costs to a minimum.
You may go as low as the minimum times. IF you are willing to pay for
additional resources. Example: It would cost $900 in Additional Resources
to reduce E from 4 weeks to 2 weeks.
Step 1: Possible Paths
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
POSSIBLE PATHS
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
POSSIBLE PATHS
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
POSSIBLE PATHS 21
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
POSSIBLE PATHS
What is the Critical Path?
ABDH –
ABEGH–
ACEGH –
ACFGH –
Start Trial 1 Trial 2 Trial 3 Trial 4 Trial 5
Activity Crashed NONE
Cost NONE
16
18
19
18
Step 2: Crash the Project
Candidates for Crashing
X 2
Normal Time Minimum Time Cost/Week
A 3 2 200
B 4 2 600
C 5 3 350
D 6 5 100
E 4 2 450
F 3 2 400
G 4 2 750
H 3 3 ---
CRITICAL PATH - ACEGH
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
Crash A – 1 Day
XX
2
What is the Critical Path?
ABDH – 16
ABEGH– 18
ACEGH – 19
ACFGH – 18
Start Trial 1 Trial 2 Trial3 Trial 4 Trial 5
Activity Crashed NONE
Cost NONE
15
17
18
17
A -1Wk
$200
Continue Crashing
Normal Time Minimum Time Cost/Week
A 3 2 200
B 4 2 600
C 5 3 350
D 6 5 100
E 4 2 450
F 3 2 400
G 4 2 750
H 3 3 ---
Candidates for CRASHING?
Same Critical Path, Same Candidates
X 4
Same Critical Path - ACEGH
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
Crash C – 1 Day
XX
4
XX
2
21
What is the Critical Path?
ABDH – 16 15
ABEGH – 18 17
ACEGH – 19 18
ACFGH – 18 17
Start Trial 1 Trial 2 Trial3 Trial 4 Trial 5
Activity Crashed NONE A-1Wk
Cost NONE $200
15
17
17
16
C -1Wk
$350
What if C had been
Crashed by 2 weeks?
What is the Critical Path?
ABDH – 16 15
ABEGH – 18 17
ACEGH – 19 18
ACFGH – 18 17
Start Trial 1 Trial 2 Trial3 Trial 4
Trial 5
Activity Crashed NONE A-1Wk
Cost NONE $200
15
17
16
15
C -2Wk
$700
What is the Critical Path?
ABDH – 16 15
ABEGH – 18 17
ACEGH – 19 18
ACFGH – 18 17
Start Trial 1 Trial 2 Trial3 Trial 4 Trial 5
Activity Crashed NONE A-1Wk
Cost NONE $200
15
17
17
16
C -1Wk
$350
Continue Crashing
MULTIPLE Critical Paths:
ABEGH
ACEGH
What are your candidates?
Normal Time Minimum Time Cost/Week
A 3 2 200
B 4 2 600
C 5 3 350
D 6 5 100
E 4 2 450
F 3 2 400
G 4 2 750
H 3 3 ---
Who are the candidates for CRASHING?
MULTIPLE CRITICAL PATHS
X 4
TWO Critical Paths – ACEGH and ABEGH
MULTIPLE Critical Paths:
ABEGH
ACEGH
What are your candidates? B, C, E, G
(A and H are already at the minimum)
Crashing Options
Crash B and C
Crash E
Crash G
$950 (600/350)
$450
$750
Normal Time Minimum Time Cost/Week
A 3 2 200
B 4 2 600
C 5 3 350
D 6 5 100
E4 2 450
F 3 2 400
G 4 2 750
H 3 3 ---
Who are the candidates for CRASHING?
MULTIPLE CRITICAL PATHS
X 4
X 3
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
Crash E – 1 week
X
3
XX
2
XX
4
What is the Critical Path?
ABDH – 16 15 15
ABEGH – 18 17 17
ACEGH – 19 18 17
ACFGH – 18 17 16
Start Trial 1 Trial 2 Trial3 Trial 4 Trial 5
Activity Crashed NONE A-1Wk C-1Wk
Cost NONE $200 $350
15
16
16
16
E -1Wk
$450
Finish Crashing
MULTIPLE Critical Paths:
ABEGH
ACEGH
ACFGH
What are your candidates?
Normal Time Minimum Time Cost/Week
A 3 2 200
B 4 2 600
C 5 3 350
D 6 5 100
E 4 2 450
F 3 2 400
G 4 2 750
H 3 3 ---
Candidates for Crashing?
X 4
X 3
THREE Critical Paths ACEGH
ABEGH
ACFGH
MULTIPLE Critical Paths
ABEGH
ACEGH
ACFGH
What are your candidates? B, C, E, F, G
(A and H are already at the minimum)
Crashing Options
Crash B and C
Crash E and F
Crash G
$950 (600/350)
$850 (450/400)
$750
How about
E and C ?
Normal Time Minimum Time Cost/Week
A 3 2 200
B 4 2 600
C 5 3 350
D 6 5 100
E 4 2 450
F 3 2 400
G 4 2 750
H 3 3 ---
Candidates for Crashing?
X 4
X 3
THREE Critical Paths ACEGH
ABEGH
ACFGH
X 3
A
3
B
4
C
5
G
4
H
3
F
3
E
4
D
6
Start Point
END Point
CRASH G – 1 Week
X
3
XX
2
XX
4
XX
3
What is the Critical Path?
ABDH – 16 15 15 15
ABEGH – 18 17 17 16
ACEGH – 19 18 17 16
ACFGH – 18 17 16 16
Start Trial 1 Trial 2 Trial3 Trial 4 Trial 5
Activity Crashed NONE A-1Wk C-1Wk E-1Wk
Cost NONE $200 $350 $450
15
15
15
15
G -1Wk
$750
Total Cost?
What is the Critical Path?
ABDH – 16 15 15 15
ABEGH – 18 17 17 16
ACEGH – 19 18 17 16
ACFGH – 18 17 16 16
Start Trial 1 Trial 2 Trial3 Trial 4 Trial 5
Activity Crashed NONE A-1Wk C-1Wk E-1Wk
Cost NONE $200 $350 $450
15
15
15
15
G -1Wk
$750
Total Cost?
CRASHING COSTS
$200 + $350 + $450 + $750 = $1,750
Project now meets the goal.
ALL items are on a Critical Path.
Not one activity in the project has ANY slack time.
MORE COST AND MORE PRESSURE
