Project Management Behnam Faizabadi PhD, PMP, SSBB IMI Training Center Behnam Faizabadi PhD,PMP,...
Preview:
Citation preview
- Slide 1
- Project Management Behnam Faizabadi PhD, PMP, SSBB IMI Training
Center Behnam Faizabadi PhD,PMP, SSBB1
- Slide 2
- Topics Main functions in an Enterprise Operations perspective
Project definition Project Activity Project Management Behnam
Faizabadi PhD,PMP, SSBB2
- Slide 3
- Main functions in an Enterprise Behnam Faizabadi PhD,PMP,
SSBB3
- Slide 4
- Top-down Approach to OM Strategy Operations Strategy Decisions
Strategic (long-range) Needs of customers (capacity planning)
Tactical (medium-range) Efficient scheduling of resources
Operational planning and control (short-range) Immediate tasks and
activities Behnam Faizabadi PhD,PMP, SSBB4
- Slide 5
- Significant Events in Operations Management Behnam Faizabadi
PhD,PMP, SSBB5
- Slide 6
- New Challenges in OM Local or national focus Batch shipments
Low bid purchasing Lengthy product development Standard products
Job specialization Behnam Faizabadi PhD,PMP, SSBB6 Global focus
Just-in-time Supply chain partnering Rapid product development,
alliances Mass customization Empowered employees, teams FromTo From
To
- Slide 7
- Competitive Priorities Quality Cost Time Delivery Diversity
Behnam Faizabadi PhD,PMP, SSBB7
- Slide 8
- Dell Computer Company How can we make the process of buying a
computer better? Sell custom-build PCs directly to consumer
Integrate the Web into every aspect of its business Operate with
six days inventory Build computers rapidly, at low cost, and only
when ordered Focus research on software designed to make
installation and configuration of its PCs fast and simple Behnam
Faizabadi PhD,PMP, SSBB8
- Slide 9
- Operation Perspectives Behnam Faizabadi PhD,PMP, SSBB9 Process
focus projects, job shops,(machine, print, carpentry) Standard
Register Repetitive (autos, motorcycles) Harley Davidson Product
focus (commercial baked goods, steel, glass) Nucor Steel High
Variety One or few units per run, high variety (allows
customization) Changes in modules Modest runs, standardized modules
Changes in attributes (such as grade, quality, size, thickness,
etc.) Long runs only Mass Customization (difficult to achieve, but
huge rewards) Dell Computer Co. Poor strategy Low-Volume
(Intermittent) Repetitive Process (Modular) High-Volume
(Continuous)
- Slide 10
- Volume and Variety of Products Behnam Faizabadi PhD,PMP, SSBB10
Volume and Variety of Products Low Volume High Variety Process
(Intermittent) Repetitive Process (Modular) High Volume Low Variety
Process (Continuous) One or very few units per lot Projects Very
small runs, high variety Job Shops Modest runs, modest variety
Disconnected Repetitive Long runs, modest variations Connected
Repetitive Very long runs, changes in attributes Continuous
Equipment utilization5%-25%20%-75%70%-80% Poor Strategy (High
variable costs) Mass Customization
- Slide 11
- Project Definition (H.Kerzner) A project can be considered to
be any series of activities and tasks that: Have a specific
objective to be completed within certain specifications Have
defined start and end dates Have funding limits (if applicable)
Consume human and nonhuman resources (i.e., money, people,
equipment) Be multifunctional (i.e., cut across several functional
lines) Behnam Faizabadi PhD,PMP, SSBB11
- Slide 12
- Project Definition (James P. Lewis) In recent years writers
like Tom Peters have suggested that in typical organizations as
much as 50 percent of the work is done in a project format A
one-time, multitask job that has clearly defined starting and
ending dates, a specific scope of work to be performed, a budget,
and a specified level of performance to be achieved. Behnam
Faizabadi PhD,PMP, SSBB12
- Slide 13
- Project definition (Harvey A. Levine) A Project Is A group of
tasks, performed in a definable time period, in order to meet
specific set of objectives. It is likely to be a one-time program.
It has a life cycle, with a specific start and end. It has a work
scope that can be categorized into definable tasks. It has a
budget. It is likely to require the use of multiple resources. Many
of these resources may be scarce and may have to be shared with
others. It may require the establishment of a special organization,
or the crossing of traditional organizational boundaries. Behnam
Faizabadi PhD,PMP, SSBB13
- Slide 14
- Project Definition (PMI) A project is a temporary endeavor
undertaken to create a unique product, service, or result. Behnam
Faizabadi PhD,PMP, SSBB14
- Slide 15
- Project Characteristics Temporary Unique Progressive
Elaboration Behnam Faizabadi PhD,PMP, SSBB15
- Slide 16
- Projects vs. Operational Work Organizations perform work to
achieve a set of objectives. Generally, work can be categorized as
either projects or operations, although the two sometimes overlap.
They share many of the following characteristics: Performed by
people Constrained by limited resources Planned, executed, and
controlled. Behnam Faizabadi PhD,PMP, SSBB16
- Slide 17
- Projects vs. Operational Work Projects and operations differ
primarily in that operations are ongoing and repetitive, while
projects are temporary and unique. Behnam Faizabadi PhD,PMP,
SSBB17
- Slide 18
- Examples of projects include Developing a new product or
service Effecting a change in structure, staffing, or style of an
organization Designing a new transportation vehicle Developing or
acquiring a new or modified information system Constructing a
building or facility Building a water system for a community
Running a campaign for political office Implementing a new business
procedure or process Responding to a contract solicitation. Behnam
Faizabadi PhD,PMP, SSBB18
- Slide 19
- Projects and Strategic Planning Projects are a means of
organizing activities that cannot be addressed within the
organizations normal operational limits. Projects are, therefore,
often utilized as a means of achieving an organizations strategic
plan, whether the project team is employed by the organization or
is a contracted service provider. Behnam Faizabadi PhD,PMP,
SSBB19
- Slide 20
- Projects and Strategic Planning A market demand (e.g., an oil
company authorizes a project to build a new refinery in response to
chronic gasoline shortages) An organizational need (e.g., a
training company authorizes a project to create a new course in
order to increase its revenues) A customer request (e.g., an
electric utility authorizes a project to build a new substation to
serve a new industrial park) A technological advance (e.g., a
software firm authorizes a new project to develop a new generation
of video games after the introduction of new game playing equipment
by electronics firms) A legal requirement (e.g., a paint
manufacturer authorizes a project to establish guidelines for the
handling of a new toxic material). Behnam Faizabadi PhD,PMP,
SSBB20
- Slide 21
- What is Project Management? A BRIEF HISTORY OF PROJECT
MANAGEMENT Although human history is marked by projectsfrom the
Roman aqueducts to the American transcontinental railroadproject
management was not developed as a separate discipline until the
mid-twentieth century. Beginning with the nuclear weapons programs
after World War II, specific techniques emerged for planning and
managing their enormous budgets and workforce. Behnam Faizabadi
PhD,PMP, SSBB21
- Slide 22
- What is Project Management? The most well-known, PERT (Program
Evaluation and Review Technique) and CPM (Critical Path Method),
have become synonymous for project scheduling techniques. (Both
PERT and CPM were much more than scheduling techniques, but the
scheduling graphics they produced, called PERT charts and Critical
Path charts, were so distinctive that many people have mistakenly
equated project management with PERT and Critical Path charts.)
Behnam Faizabadi PhD,PMP, SSBB22
- Slide 23
- What is Project Management? PERT and CPM evolved through the
1950s and 1960s to become commonplace on major space and defense
programs, but they saw limited use beyond those industries. From
the mid-1960s through the mid-1980s, project management methods
grew and matured but still found a relatively limited audience.
Even at universities, project management was usually taught on a
limited basis in some engineering schools. Behnam Faizabadi
PhD,PMP, SSBB23
- Slide 24
- What is Project Management? However, in the 1990s, interest in
project management soared because of a convergence of several
factors. Computer technology was making a huge difference in the
way we worked. More powerful computers and software also made it
easier to use the classic project management techniques. Project
management methods today are not that much changed from a
generation ago, but they have become commonly accepted in every
industry. Behnam Faizabadi PhD,PMP, SSBB24
- Slide 25
- What is Project Management? Project management is the
application of knowledge, skills, tools and techniques to project
activities to meet project requirements. Project management is
accomplished through the application and integration of the project
management processes of initiating, planning, executing, monitoring
and controlling, and closing. The project manager is the person
responsible for accomplishing the project objectives. Behnam
Faizabadi PhD,PMP, SSBB25
- Slide 26
- Project Management Knowledge Areas Behnam Faizabadi PhD,PMP,
SSBB26
- Slide 27
- Project Life Cycle Project life cycles generally define: What
technical work to do in each phase (for example, in which phase
should the architects work be performed?) When the deliverables are
to be generated in each phase and how each deliverable is reviewed,
verified, and validated Behnam Faizabadi PhD,PMP, SSBB27
- Slide 28
- Project Life Cycle Who is involved in each phase (for example,
concurrent engineering requires that the implementers be involved
with requirements and design) How to control and approve each
phase. Behnam Faizabadi PhD,PMP, SSBB28
- Slide 29
- Project Life Cycle Behnam Faizabadi PhD,PMP, SSBB29 Typical
Project Cost and Staffing Level Across the Project Life Cycle
- Slide 30
- Portfolio and Program Management 30Behnam Faizabadi PhD,PMP,
SSBB
- Slide 31
- What Is a Portfolio? A portfolio is a collection of projects
(temporary endeavors undertaken to create a unique product,
service, or result) and/or programs (a group of related projects
managed in a coordinated way to obtain benefits and control not
available from managing them individually) and other work that are
grouped together to facilitate the effective management of that
work to meet strategic business objectives. The components of a
portfolio are quantifiable; that is, they can be measured, ranked,
and prioritized. 31
- Slide 32
- Behnam Faizabadi PhD,PMP, SSBB What Is a Portfolio? 32
- Slide 33
- Behnam Faizabadi PhD,PMP, SSBB33
- Slide 34
- Behnam Faizabadi PhD,PMP, SSBB What Is Portfolio Management?
Portfolio management is the centralized management of one or more
portfolios, which includes identifying, prioritizing, authorizing,
managing, and controlling projects, programs, and other related
work, to achieve specific strategic business objectives. (project
portfolio management) 34
- Slide 35
- Behnam Faizabadi PhD,PMP, SSBB What Is Portfolio Management?
Portfolio management combines : (a)the organizations focus of
ensuring that projects selected for investment meet the portfolio
strategy with (b)the project management focus of delivering
projects effectively and within their planned contribution to the
portfolio. 35
- Slide 36
- Behnam Faizabadi PhD,PMP, SSBB The Link With Organizational
Strategy 36
- Slide 37
- Behnam Faizabadi PhD,PMP, SSBB The Link Between Portfolio
Management and Organizational Governance 37
- Slide 38
- Behnam Faizabadi PhD,PMP, SSBB Cross-Company Portfolio
Management Process Relationships 38
- Slide 39
- Behnam Faizabadi PhD,PMP, SSBB Role of the Portfolio Manager
Playing a key role in project prioritization, making sure there is
a balance of components and that the components align with
strategic goals Providing key stakeholders with timely assessment
of portfolio and component performance, as well as early
identification of (and intervention into) portfolio-level issues
and risks that are impacting performance Measuring the value to the
organization through investment instruments, such as return on
investment (ROI), net present value (NPV), payback period (PP),
meeting Congressional or legislative mandates, achieving the
educational needs of current or future students, etc. 39
- Slide 40
- Behnam Faizabadi PhD,PMP, SSBB Role of the Portfolio Manager
Ensuring timely and consistent communication to the stakeholders on
progress, impacts, and changes associated with the management of
the portfolio, in order to maintain stakeholder understanding and
support of the objectives and approach Participating in program and
project reviews to reflect senior level support, leadership, and
involvement in important matters. 40
- Slide 41
- Behnam Faizabadi PhD,PMP, SSBB Typical criteria for Project
Selection Business criteria Strategic alignment Productivity
Process improvement Competitive advantage Business impact Employee
satisfaction Customer satisfaction Intellectual property Impact of
not undertaking the project. 41
- Slide 42
- Behnam Faizabadi PhD,PMP, SSBB Typical criteria may include
Financial benefits criteria Revenue growth Cost savings Cost
avoidance Internal Rate of Return (IRR) See IRR excel file Net
Present Value (NPV)- See NPV excel file Return on Investment (ROI)-
See ROI excel file Payback period see Payback period excel file
Cost Cash flow generation 42
- Slide 43
- Behnam Faizabadi PhD,PMP, SSBB NPV Net present value (NPV) is a
standard method for the financial appraisal of long-term projects.
NPV = Present value of net cash flows. If NPV > 0 the investment
would add value to the firm the project may be accepted NPV <
0the investment would subtract value from the firm the project
should be rejected NPV = 0 the investment would neither gain nor
lose value for the firm We should be indifferent in the decision
whether to accept or reject the project. This project adds no
monetary value. Decision should be based on other criteria, e.g.
strategic positioning or other factors not explicitly included in
the calculation 43
- Slide 44
- Behnam Faizabadi PhD,PMP, SSBB Typical criteria may include
Risk-related criteria Business risks Technology risks Project
management risks Implementation risks Market acceptance risks
Public relation risks Brand image risks 44
- Slide 45
- Behnam Faizabadi PhD,PMP, SSBB Typical criteria may include
Legal/Regulatory compliance criteria Human Resource (HR)-related
criteria Specific competency Employee satisfaction Resources
availability HR capacity HR capacity to integrate the solution
Impact on working condition 45
- Slide 46
- Behnam Faizabadi PhD,PMP, SSBB Typical criteria may include
Marketing criteria Market impact Probability of success Time to
market Impact on existing product lines Estimated product life
46
- Slide 47
- Behnam Faizabadi PhD,PMP, SSBB Typical criteria may include
Technical criteria Architectural alignment Information delivery
Success probability (inverse of risk) System RAS Reliability
Availability Supportability Conformity to standards 47
- Slide 48
- Methods of Project Selection Mathematical methods Scoring
Models Behnam Faizabadi PhD,PMP, SSBB48
- Slide 49
- Behnam Faizabadi PhD,PMP, SSBB Multiple Criteria Weighted
Ranking 49
- Slide 50
- Behnam Faizabadi PhD,PMP, SSBB Single Criterion Prioritization
Model 50
- Slide 51
- Behnam Faizabadi PhD,PMP, SSBB What is a Program? A program is
a group of related projects managed in a coordinated way to obtain
benefits and control not available from managing them individually.
Programs may include elements of related work (e.g., ongoing
operations) outside the scope of the discrete projects in a
program. 51
- Slide 52
- Behnam Faizabadi PhD,PMP, SSBB What is Program Management?
Program management is the centralized coordinated management of a
program to achieve the programs strategic benefits and objectives.
In addition, it allows for the application of several broad
management themes to help ensure the successful accomplishment of
the program. These themes are: benefits management, stakeholder
management,and program governance. 52
- Slide 53
- Behnam Faizabadi PhD,PMP, SSBB What is Program Management?
Managing multiple projects by means of a program allows for
optimized or integrated cost, schedules, or effort; integrated or
dependent deliverables across the program, delivery of incremental
benefits, and optimization of staffing in the context of the
overall programs needs. Projects may be interdependent because of
the collective capability that is delivered, or they may share a
common attribute such as client, customer, seller, technology, or
resource. 53
- Slide 54
- Behnam Faizabadi PhD,PMP, SSBB Program Management in
Organizational Planning 54
- Slide 55
- Behnam Faizabadi PhD,PMP, SSBB55
- Slide 56
- Behnam Faizabadi PhD,PMP, SSBB Project Management Office
Program Management Office Project Office or Program office Some of
the key features of a PMO include, but are not limited to: 56
- Slide 57
- Behnam Faizabadi PhD,PMP, SSBB PMO Shared and coordinated
resources across all projects administered by the PMO
Identification and development of project management methodology,
best practices, and standards Clearinghouse and management for
project policies, procedures, templates, and other shared
documentation Centralized configuration management for all projects
administered by the PMO Centralized repository and management for
both shared and unique risks for all projects 57
- Slide 58
- Behnam Faizabadi PhD,PMP, SSBB PMO Central office for operation
and management of project tools, such as enterprise-wide project
management software Central coordination of communication
management across projects A mentoring platform for project
managers Central monitoring of all PMO project timelines and
budgets, usually at the enterprise level Coordination of overall
project quality standards between the project manager and any
internal or external quality personnel or standards organization.
58
- Slide 59
- Behnam Faizabadi PhD,PMP, SSBB Structure 59
- Slide 60
- Behnam Faizabadi PhD,PMP, SSBB Structure Organizations are
structured into one of six models, the organizational structure of
which will affect the project in some aspect. In particular, the
organizational structure will set the level of authority, the level
of autonomy, and the reporting structure that the project manager
can expect to have within the project. 60
- Slide 61
- Behnam Faizabadi PhD,PMP, SSBB Structure Functional Weak matrix
Balanced matrix Strong matrix Projectized Composite 61
- Slide 62
- Behnam Faizabadi PhD,PMP, SSBB62
- Slide 63
- Behnam Faizabadi PhD,PMP, SSBB63
- Slide 64
- Behnam Faizabadi PhD,PMP, SSBB64
- Slide 65
- Behnam Faizabadi PhD,PMP, SSBB65
- Slide 66
- Behnam Faizabadi PhD,PMP, SSBB Functional Organization 66
- Slide 67
- Behnam Faizabadi PhD,PMP, SSBB Projectized Organization In a
projectized organization, team members are often collocated. Most
of the organizations resources are involved in project work, and
project managers have a great deal of independence and authority.
Projectized organizations often have organizational units called
departments, but these groups either report directly to the project
manager or provide support services to the various projects.
67
- Slide 68
- Behnam Faizabadi PhD,PMP, SSBB Projectized Organization 68
- Slide 69
- Behnam Faizabadi PhD,PMP, SSBB Matrix organization Matrix
organizations, are a blend of functional and projectized
characteristics. Weak matrices maintain many of the characteristics
of a functional organization and the project manager role is more
that of a coordinator or expediter than that of a manager. In
similar fashion, strong matrixes have many of the characteristics
of the projectized organization, and can have full-time project
managers with considerable authority and full-time project
administrative staff. While the balanced matrix organization
recognizes the need for a project manager, it does not provide the
project manager with the full authority over the project and
project funding 69
- Slide 70
- Behnam Faizabadi PhD,PMP, SSBB Weak Matrix Organization 70
- Slide 71
- Behnam Faizabadi PhD,PMP, SSBB Balanced Matrix Organization
71
- Slide 72
- Behnam Faizabadi PhD,PMP, SSBB Strong Matrix Organization
72
- Slide 73
- Behnam Faizabadi PhD,PMP, SSBB Composite Organization Most
modern organizations involve all these structures at various
levels, For example, even a fundamentally functional organization
may create a special project team to handle a critical project.
Such a team may have many of the characteristics of a project team
in a projectized organization. The team may include full-time staff
from different functional departments, may develop its own set of
operating procedures and may operate outside the standard,
formalized reporting structure. 73
- Slide 74
- Behnam Faizabadi PhD,PMP, SSBB Composite Organization 74
- Slide 75
- Project Processes Groups Behnam Faizabadi PhD,PMP, SSBB75
- Slide 76
- Behnam Faizabadi PhD,PMP, SSBB Plan-Do-Check-Act 76
- Slide 77
- Project Authorization Behnam Faizabadi PhD,PMP, SSBB77
- Slide 78
- Behnam Faizabadi PhD,PMP, SSBB Project Charter Developing the
project charter is primarily concerned with documenting the
business needs, project justification, current understanding of the
customers requirements, and the new product, service, or result
that is intended to satisfy those requirements. 78
- Slide 79
- Behnam Faizabadi PhD,PMP, SSBB Project Charter The project
charter, either directly, or by reference to other documents,
should address the following information: Requirements that satisfy
customer, sponsor, and other stakeholder needs, wants and
expectations Business needs, high-level project description, or
product requirements that the project is undertaken to address
Project purpose or justification Assigned Project Manager and
authority level Summary milestone schedule 79
- Slide 80
- Behnam Faizabadi PhD,PMP, SSBB Project Charter Stakeholder
influences Functional organizations and their participation
Organizational, environmental and external assumptions
Organizational, environmental and external constraints Business
case justifying the project, including return on investment Summary
budget. 80
- Slide 81
- Behnam Faizabadi PhD,PMP, SSBB81
- Slide 82
- Behnam Faizabadi PhD,PMP, SSBB82
- Slide 83
- Behnam Faizabadi PhD,PMP, SSBB Project Integration Management
What does integration means in project management? 83
- Slide 84
- Behnam Faizabadi PhD,PMP, SSBB84
- Slide 85
- Behnam Faizabadi PhD,PMP, SSBB85
- Slide 86
- Behnam Faizabadi PhD,PMP, SSBB86
- Slide 87
- Behnam Faizabadi PhD,PMP, SSBB87
- Slide 88
- Behnam Faizabadi PhD,PMP, SSBB88
- Slide 89
- Behnam Faizabadi PhD,PMP, SSBB Scope Definition Project Scope
Statement: The project scope statement describes, in detail, the
projects deliverables and the work required to create those
deliverables. The project scope statement also provides a common
understanding of the project scope among all project stakeholders
and describes the projects major objectives. It also enables the
project team to perform more detailed planning, guides the project
teams work during execution, and provides the baseline for
evaluating whether requests for changes or additional work are
contained within or outside the projects boundaries. 89
- Slide 90
- Behnam Faizabadi PhD,PMP, SSBB Project objectives Project
objectives include the measurable success criteria of the project.
Cost Technical Performance Schedule Quality 90
- Slide 91
- Behnam Faizabadi PhD,PMP, SSBB Product scope description
Describes the characteristics of the product, service, or result
that the project was undertaken to create. Less detail vs. More
detail 91
- Slide 92
- Behnam Faizabadi PhD,PMP, SSBB Project requirements Conditions
or capabilities that must be met or possessed by the deliverables
of the project to satisfy a contract Standard Specification
Formally imposed documents Stakeholder analyses of all stakeholder
needs, wants, and expectations are translated into prioritized
requirements. 92
- Slide 93
- Behnam Faizabadi PhD,PMP, SSBB Project boundaries What is
included within the project Explicitly what is excluded from the
project 93
- Slide 94
- Behnam Faizabadi PhD,PMP, SSBB Project deliverables Outputs
that comprise the product or service of the project As well as
ancillary results, such as project management reports and
documentation Summary level or in great detail. 94
- Slide 95
- Behnam Faizabadi PhD,PMP, SSBB Product acceptance criteria
Criteria for accepting completed products 95
- Slide 96
- Behnam Faizabadi PhD,PMP, SSBB Project constraints Conditions
limits the teams options Predefined budget or Imposed dates
(schedule milestones) that are issued by the customer or performing
organization Contractual provisions will generally be constraints.
96
- Slide 97
- Behnam Faizabadi PhD,PMP, SSBB Project assumptions Any
conditions without proofing. Frequently identify, document, and
validate assumptions True, real, or certain without proof or
demonstration 97
- Slide 98
- Behnam Faizabadi PhD,PMP, SSBB Initial project organization The
members of the project team, as well as stakeholders, are
identified. The organization of the project is also documented.
98
- Slide 99
- Behnam Faizabadi PhD,PMP, SSBB99
- Slide 100
- Behnam Faizabadi PhD,PMP, SSBB Initial defined risks Identifies
the known risks. 100
- Slide 101
- Behnam Faizabadi PhD,PMP, SSBB Schedule milestones The customer
or performing organization can identify milestones and can place
imposed dates on those schedule milestones. These dates can be
addressed as schedule constraints. 101
- Slide 102
- Behnam Faizabadi PhD,PMP, SSBB Fund limitation Describes any
limitation placed upon funding for the project, whether in total
value or over specified time frames. 102
- Slide 103
- Behnam Faizabadi PhD,PMP, SSBB Cost estimate Overall cost
Conceptual Definitive. 103
- Slide 104
- Behnam Faizabadi PhD,PMP, SSBB Project configuration management
requirements Describes the level of configuration management and
change control to be implemented on the project. 104
- Slide 105
- Behnam Faizabadi PhD,PMP, SSBB Project specifications
Identifies those specification documents with which the project
should comply. 105
- Slide 106
- Behnam Faizabadi PhD,PMP, SSBB Approval requirements Identifies
approval requirements that can be applied to items such as project
objectives, deliverables, documents, and work. 106
- Slide 107
- WBS 107Behnam Faizabadi PhD,PMP, SSBB
- Slide 108
- 108Behnam Faizabadi PhD,PMP, SSBB
- Slide 109
- Overview Successful project management relies on thorough
planning. This begins by defining the project objectives with
sufficiently detailed information. The Work Breakdown Structure
(WBS) provides the foundation for defining work as it relates to
project objectives. The WBS also establishes the framework for
managing the work to its completion. 109Behnam Faizabadi PhD,PMP,
SSBB
- Slide 110
- Concept To define the projects scope of work in terms of
deliverables and to further decompose these deliverables into
components. To provide the project management team with a framework
on which to base project status and progress reports. To facilitate
communication between the project manager and stakeholders
throughout the life of the project. As a key input to other project
management processes and deliverables. 110Behnam Faizabadi PhD,PMP,
SSBB
- Slide 111
- WBS Characteristics Supports the definition of all work
required to achieve an objective, tangible result. Is constructed
to illustrate and define the hierarchy of deliverables. This
hierarchy is organized into parent-child relationships. Has an
objective or tangible result that is referred to as a deliverable.
In a sense, the WBS can be thought of as a deliverable breakdown
structure. 111Behnam Faizabadi PhD,PMP, SSBB
- Slide 112
- WBS Benefits Clarify ambiguities, Bring out assumptions, Narrow
the scope of the project, Raise critical issues Effective schedule
Better cost estimation and budget plans Resource assignment and
accountability 112Behnam Faizabadi PhD,PMP, SSBB
- Slide 113
- WBS The WBS assists project leaders, participants, and
stakeholders in the development of a clear vision of the end
products or outcomes produced by the project. To be more precise,
the WBS provides a clear vision of the work of the project. The WBS
divides the project scope into hierarchical, manageable, definable
packages of work that balance the control needs of management with
an appropriate and effective level of detailed project data. The
WBS provides the framework for all deliverables across the project
life cycle. 113Behnam Faizabadi PhD,PMP, SSBB
- Slide 114
- WBS Definition A WBS is: A deliverable-oriented hierarchical
decomposition of the work to be executed by the project team to
accomplish the project objectives and create the required
deliverables. It organizes and defines the total scope of the
project.(PMI) 114Behnam Faizabadi PhD,PMP, SSBB
- Slide 115
- Work Breakdown Structure Work: Sustained physical or mental
effort, exertion, or exercise of skill to overcome obstacles and
achieve an objective. Commonly used to refer to a specific
activity, duty, function, or assignment often being a part or phase
of some larger undertaking; something produced or accomplished by
effort, exertion, or exercise of skill. In this context, work
refers to work products or deliverables that are the result of
effort and not to the effort itself. 115Behnam Faizabadi PhD,PMP,
SSBB
- Slide 116
- Types of Work Discrete effort Apportioned effort Level of
effort 116Behnam Faizabadi PhD,PMP, SSBB
- Slide 117
- Work Breakdown Structure Breakdown: Division into parts or
categories; separation into simpler substances; decomposition.
117Behnam Faizabadi PhD,PMP, SSBB
- Slide 118
- 118
- Slide 119
- Behnam Faizabadi PhD,PMP, SSBB119
- Slide 120
- Behnam Faizabadi PhD,PMP, SSBB120
- Slide 121
- Behnam Faizabadi PhD,PMP, SSBB WBS Dictionary Code of account
identifier, Statement of work, Responsible organization, List of
schedule milestones Associated schedule activities, Resources
required, Cost estimates Quality requirements, Technical
references, and Contract information. 121
- Slide 122
- The 100% Rule The 100% rule (Haugan, 2002, p 17) is a core
characteristic of the WBS. This rule states that the WBS includes
100% of the work defined by the project scope and captures ALL
deliverables internal, external, and interimin terms of work to be
completed, including project management. The 100% rule is one of
the most important principles guiding the development,
decomposition and evaluation of the WBS. The rule applies at all
levels within the hierarchy: the sum of the work at the child level
must equal 100% of the work represented by the parent and the WBS
should not include any work that falls outside the actual scope of
the project, that is, it cannot include more than 100% of the work.
It is important to remember that the 100% rule also applies at the
activity level. The work represented by the activities in each work
package must add up to 100% of the work necessary to complete the
work package. 122Behnam Faizabadi PhD,PMP, SSBB
- Slide 123
- WBS Definition Deliverable. Any unique and verifiable product,
result, or capability to perform a service that must be produced to
complete a process, phase, or project. Often used more narrowly in
reference to an external deliverable, which is a deliverable that
is subject to approval by the project sponsor or customer.
Oriented. Aligned or positioned with respect to a point or frame of
reference; focused toward the concerns and interests of a specific
group. Hierarchical. Classified according to various criteria into
successive levels or layers. Decomposition. A planning technique
that subdivides the project scope and project deliverables into
smaller, more manageable components, until the project work
associated with accomplishing the project scope and providing the
deliverables is defined in sufficient detail to support executing,
monitoring, and controlling the work. 123Behnam Faizabadi PhD,PMP,
SSBB
- Slide 124
- WBD Definition Activity. A component of work performed during
the course of a project Apportioned Effort. Effort applied to
project work that is not readily divisible into discrete efforts
for that work, but which is related in direct proportion to
measurable discrete work efforts. Contrast with discrete effort.
Discrete Effort. Work effort that is separate, distinct, and
related to the completion of specific work breakdown structure
components and deliverables, and that can be directly planned and
measured. Contrast with apportioned effort. 124Behnam Faizabadi
PhD,PMP, SSBB
- Slide 125
- WBS Definition Level of Effort (LOE). Support-type activity
(e.g., seller or customer liaison, project cost accounting, project
management, etc.), which does not produce definitive end products.
It is generally characterized by a uniform rate of work performance
over a period of time determined by the activities supported. Task.
A term for work whose meaning and placement within a structured
plan for project work varies by the application area, industry, and
brand of project management software. 125Behnam Faizabadi PhD,PMP,
SSBB
- Slide 126
- WBS Definition Work Breakdown Structure Component. An entry in
the work breakdown structure that can be at any level. Work
Package. A deliverable or project work component at the lowest
level of each branch of the work breakdown structure. The work
package includes the schedule activities and schedule milestones
required to complete the work package deliverable or project work
component. WBS Element. Any single work breakdown structure (WBS)
component and its associated WBS attributes contained within an
individual work breakdown structure. 126Behnam Faizabadi PhD,PMP,
SSBB
- Slide 127
- How WBS created I.Review scope definition II.Use WBS templates
(if exist) III.Create PBS IV.Decomposition V.Consider assumptions
and constraints VI.Prepare WBS dictionary (SOW) 127Behnam Faizabadi
PhD,PMP, SSBB
- Slide 128
- WBS Development Tools Outlines and organization charts Fishbone
Brainstorming Top down and bottom up development strategies WBS
templates, and Corporate standards can be referenced or copied for
quick-starting WBS development. 128Behnam Faizabadi PhD,PMP,
SSBB
- Slide 129
- 129
- Slide 130
- Behnam Faizabadi PhD,PMP, SSBB130
- Slide 131
- Behnam Faizabadi PhD,PMP, SSBB131
- Slide 132
- Behnam Faizabadi PhD,PMP, SSBB132
- Slide 133
- Behnam Faizabadi PhD,PMP, SSBB133
- Slide 134
- Behnam Faizabadi PhD,PMP, SSBB134
- Slide 135
- Behnam Faizabadi PhD,PMP, SSBB135
- Slide 136
- A ship in a harbor is safe, but thats not what ships are built
for. William Shedd 136Behnam Faizabadi PhD,PMP, SSBB
- Slide 137
- Project risk management is the art and science of identifying,
analyzing, and responding to risk throughout the life of a project
and in the best interests of meeting project objectives. Risk
management is often overlooked in projects, but it can help improve
project success by helping select good projects, determining
project scope, and developing realistic estimates. 137 The
Importance of Project Risk Management Behnam Faizabadi PhD,PMP,
SSBB
- Slide 138
- KPMG study found that 55 percent of runaway projectsprojects
that have significant cost or schedule overrunsdid no risk
management at all. Also another studies show risk has the lowest
maturity rating of all Project Management knowledge areas. 138
Research - Need to Improve Project Risk Management Behnam Faizabadi
PhD,PMP, SSBB
- Slide 139
- Project Management Maturity by Industry Group and Knowledge
Area* 139 KEY: 1 = LOWEST MATURITY RATING 5 = HIGHEST MATURITY
RATING Knowledge Area Engineering/ Construction
TelecommunicationsInformatio n Systems Hi-Tech Manufacturing
Scope3.523.453.253.37 Time3.553.413.033.50 Cost3.743.223.203.97
Quality2.913.222.883.26 Human Resources 3.183.202.933.18
Communications3.53 3.213.48 Risk2.932.872.752.76
Procurement3.333.012.913.33 Behnam Faizabadi PhD,PMP, SSBB
- Slide 140
- Project Risk Project Risk Management Negative Risks Positive
Risks Residual Risks Secondary Risks Contingency Plan SWOT Root
Cause Analysis Definition 140Behnam Faizabadi PhD,PMP, SSBB
- Slide 141
- Scope of Risk Management 141Behnam Faizabadi PhD,PMP, SSBB
- Slide 142
- 1.New South Wales 2.ALARM 3.PRAMA MODEL 4.Integrated RM
Framework- Canada 5.Iso 31000 Risk Management 6.PMBOK 7.Treasury
Board of Canada 8.SHAMPU 9.G.Smith 10.Leach 11.Pitchard 12.Wideman
13.Boehm 14.Fairly 15.Kilem & Ludin Project Management Risk
Models 142Behnam Faizabadi PhD,PMP, SSBB
- Slide 143
- Project Risk Management Model Risk Management Planning
Stakeholders Analysis Risk Identification Qualitative and
Quantitative Risk Analysis Risk Response Risk Monitoring and
Control 143Behnam Faizabadi PhD,PMP, SSBB
- Slide 144
- Risk analysis 144Behnam Faizabadi PhD,PMP, SSBB
- Slide 145
- Risk Management Planning Risk management planning is about
making decisions. The risk management process is in relation to the
scope of the project, the priority of the project within the
performing organization, and the impact of the project
deliverables. Referring to the Project Charter Relying on Risk
Management Policies Considering Roles and Responsibilities
Examining Stakeholder Tolerance Using a Risk Management Plan
Template Revisiting the Work Breakdown Structure 145Behnam
Faizabadi PhD,PMP, SSBB
- Slide 146
- Creating the Risk Management Plan Methodology The methodology
is concerned with how the risk management processes will take
place. The methodology asks What tools are available to use for
risk management? What approaches are acceptable within the
performing organization? What data sources can be accessed and used
for risk management? What approach is best for the project type,
the phase of the project, and which is most appropriate given the
conditions of the project? How much flexibility is available for
the project given the conditions, the timeframe, and the project
budget? 146Behnam Faizabadi PhD,PMP, SSBB
- Slide 147
- Creating the Risk Management Plan RBS Roles and
Responsibilities Budgeting Scheduling Risk Analysis Scoring
Thresholds Reporting Formats Tracking 147Behnam Faizabadi PhD,PMP,
SSBB
- Slide 148
- 148Behnam Faizabadi PhD,PMP, SSBB
- Slide 149
- Applying Probability and Impact 149Behnam Faizabadi PhD,PMP,
SSBB
- Slide 150
- Applying Probability and Impact 150Behnam Faizabadi PhD,PMP,
SSBB
- Slide 151
- Risk Identification Relying on Project Planning Effective risk
identification requires an understanding of why the project exists.
The people doing the risk identification have to understand the
projects purpose in order to recognize risks that could affect the
project. These risk identifiers should understand the customers
objectives, expectations, and intent. Project planning outputs
referenced here can include: The project charter The work breakdown
structure Duration estimates 151Behnam Faizabadi PhD,PMP, SSBB
- Slide 152
- Identifying the Project Risks Reviewing Project Documents
Brainstorming the Project Using the Delphi Technique Identifying
Risks Through Interviews Analyzing SWOT Utilizing Diagramming
Techniques 152Behnam Faizabadi PhD,PMP, SSBB
- Slide 153
- Preparing for Risk Identification The network diagram The
project schedule Cost estimates The project budget Quality plans
Resource requirements The resource management plan Procurement
issues Communication requirements Assumptions Constraints 153Behnam
Faizabadi PhD,PMP, SSBB
- Slide 154
- Preparing for Risk Identification Creating Risk Categories
Technical, quality, or performance risks Project management risks
Organizational risks External risks Referring to Historical
Information 154Behnam Faizabadi PhD,PMP, SSBB
- Slide 155
- Risk Questions - Scope Management Effective sponsor? Differing
needs/expectations of stakeholders? Priorities lack clarity?
Limitations/Constraints questionable? Schedule, resources, &
solution dictated and not in balance? Layoffs, cutbacks, or
unexpected absence? 155Behnam Faizabadi PhD,PMP, SSBB
- Slide 156
- Risk Questions - Scope Management Requirements baselined but
continue to change? Requirements/features added without going
through scope control? Work performed thats not within approved
scope? Client asks for extra functions (Gold plating) & extends
the project? 156Behnam Faizabadi PhD,PMP, SSBB
- Slide 157
- Risk Questions - Time Management Will the client: Be included
where needed? Attempt to micro-manage the project, resulting in
slower progress than planned? Require more design or testing than
anticipated? Take longer to complete their tasks than planned?
Tasks/Deliverables: Unclear or need more definition? Appropriately
sequenced, estimated, scheduled and assigned? Missing? Other
projects & support activities require more time than expected?
157Behnam Faizabadi PhD,PMP, SSBB
- Slide 158
- Risk Questions - Time Management Unexpected issues &
incidents jeopardize milestones? Upcoming events or large # of
variables outside the teams control? Revised estimates, in response
to schedule slips, overly optimistic or ignore project history?
Will productivity be affected by: Excessive schedule pressure
(overtime)? Tools that dont yield expected productivity gains? Low
motivation and morale? 158Behnam Faizabadi PhD,PMP, SSBB
- Slide 159
- Risk Questions - Time Management Delays on task prerequisites
or critical path tasks? Schedule based on team member(s) who may
not be available? Will management ask for: Anything that results
unnecessary, time consuming overhead? Management-level progress
reporting that take more team members time than expected? 159Behnam
Faizabadi PhD,PMP, SSBB
- Slide 160
- Risk Questions - Time Management More time needed than
estimated because: Working with unfamiliar, complex or error-prone
modules? Interfacing with complex systems or systems not under the
teams control? Pushing the computer science state-of-the-art
lengthens the schedule unpredictably? 160Behnam Faizabadi PhD,PMP,
SSBB
- Slide 161
- Risk Questions - Cost Management Budget cuts likely? Increased
dependency on other business units or vendors? Uncertain
costs/expenses? 161Behnam Faizabadi PhD,PMP, SSBB
- Slide 162
- Risk Questions - Human Resources Management Staff acquisition
take longer than expected? Critical skills needed, but not
available? Politics prevent most qualified personnel from working
on the project? Part-time availability, but needed full-time? Need
to include other affected groups/departments? 162Behnam Faizabadi
PhD,PMP, SSBB
- Slide 163
- Risk Questions - Human Resources Management Team members leave
before project completes? Tasks match team members strengths?
Inefficient team structure reduces productivity? Other work load on
team members? 163Behnam Faizabadi PhD,PMP, SSBB
- Slide 164
- Risk Questions - Quality Management Complexity?
Scope/requirements lack sufficient detail? Size/Time constraints
necessitate short-cuts? New standards & procedures available
when needed? Designs produced by someone other than person(s)
responsible for design implementation? Government regulations
subject to change? Integration of separately developed components
require rework? 164Behnam Faizabadi PhD,PMP, SSBB
- Slide 165
- Risk Questions - Quality Management Team members needs? Work
with unfamiliar software applications/programs, hardware, or
programming languages? Knowledge of policies, standards &
procedures? Additional tools, training, or expertise? Reviews? Time
allowed to do reviews of major deliverables? Qualified personnel
involved? Performed for baselined deliverables? Issues/Incidents
recorded & assigned for follow-up? 165Behnam Faizabadi PhD,PMP,
SSBB
- Slide 166
- Risk Questions - Quality Management Will the Client: Mandate
use of tools that dont perform/integrate well? Furnish components
that are defective or a poor match for product? Not accept the
project results even though the results meet all specifications? Be
knowledgeable in subject areas they represent? 166Behnam Faizabadi
PhD,PMP, SSBB
- Slide 167
- Risk Questions - Quality Management Technology? Test
environment sufficiently secured? Depend upon
technology/standardization still under development? User and
software interfaces work as expected? Solution must work on
multiple operating systems or equipment types? Service level
agreements in jeopardy? Changes necessitated by active or upcoming
projects? 167Behnam Faizabadi PhD,PMP, SSBB
- Slide 168
- Risk Questions - Communications Management Team meetings
effective & an efficient use of team members time? Client
expertise solicited where needed? Approved changes to controlled
documents communicated timely to the right people? Team members
know theyre using the current version of project documents? Status
information provided timely? Conflict among team members? 168Behnam
Faizabadi PhD,PMP, SSBB
- Slide 169
- Risk Questions - Procurement Management Computer
software/hardware/network resources be available when needed?
Disaster recovery resources still adequate? Will vendor-furnished
components be of acceptable quality & on time? Need anything
else from other departments or support vendors? 169Behnam Faizabadi
PhD,PMP, SSBB
- Slide 170
- Qualitative Risk Analysis Ranking Prioritizing Lead to more
in-depth quantitative risk analysis 170Behnam Faizabadi PhD,PMP,
SSBB
- Slide 171
- Planning for Risk Response Risk response planning is all about
options and actions. It focuses on how to decrease the possibility
of risks from adversely affecting the projects objectives, and on
how to increase the likelihood of positive risks that can aid the
project. Risk response planning assigns responsibilities to people
and groups close to the risk event. Risks will increase or decrease
based on the effectiveness of risk response planning. 171Behnam
Faizabadi PhD,PMP, SSBB
- Slide 172
- Preparing for Risk Response To successfully prepare for risk
response, the project manager, project team, and appropriate
stakeholders will rely on several inputsmany of which stem from
qualitative and quantitative risk analysissuch as: The risk
management plan A list of prioritized risks Risk ranking A
prioritized list of quantified risk A probabilistic analysis of the
project The probability of the project meeting the cost and
schedule goals The list of potential responses decided upon when
risks were first identified Any risk owners that have been
identified A listing of common cause risks to address multiple
risks with an achievable solution Trends from qualitative and
quantitative analysis 172Behnam Faizabadi PhD,PMP, SSBB
- Slide 173
- Negative Risk Response Strategies Avoidance Transference
Mitigation Acceptance 173Behnam Faizabadi PhD,PMP, SSBB
- Slide 174
- Avoiding the Risk Avoidance is simply avoiding the risk. This
can be accomplished many different ways and generally happens early
in the project when any change will result in fewer consequences
than later in the project plan. Examples of avoidance include:
Changing the project plan to eliminate the risk. Clarifying project
requirements to avoid discrepancies. Hiring additional project team
members that have experience with the technology that the project
deals with. Using a proven methodology rather than a new approach
174Behnam Faizabadi PhD,PMP, SSBB
- Slide 175
- Transferring the Risks Transference is the process of
transferring the risk (and the ownership of the risk) to a third
party. The risk doesnt disappear, its just someone elses problem.
Transference of a risk usually costs a premium for the third party
to own and manage that risk. Common examples of risk transference
include: Insurance Performance bonds Warrantees Guarantees
Fixed-priced contracts 175Behnam Faizabadi PhD,PMP, SSBB
- Slide 176
- Mitigating the Risk Mitigating risks is an effort to reduce the
probability and/or impact of an identified risk in the project.
Examples of mitigation include: Adding activities to the project to
reduce the risk probability or impact Simplifying the processes
within the project Completing more tests on the project work before
implementation Developing prototypes, simulations, and limited
releases 176Behnam Faizabadi PhD,PMP, SSBB
- Slide 177
- Accepting the Risks Risk acceptance is the process of simply
accepting the risks because no other action is feasible, or the
risks are deemed to be of small probability, impact, or both and
that a formal response is not warranted. Passive acceptance
requires no action; the project team deals with the risks as they
happen. Active acceptance entails developing a contingency plan
should the risk occur. 177Behnam Faizabadi PhD,PMP, SSBB
- Slide 178
- Exploit Enhance Sharing Acceptance Positive Risks response
strategies 178Behnam Faizabadi PhD,PMP, SSBB
- Slide 179
- Contingency plan & fallback plan A contingency plan is a
predefined set of actions the project team will take should the
risk event occur. A contingency plan has also been called a
worst-case scenario plan. A similar plan, a fallback plan,
instructs the project team on how to unravel the project work back
to an acceptable point in the project. Both fallback plans and
triggers or thresholds within the project conditions instigate the
plans. 179Behnam Faizabadi PhD,PMP, SSBB
- Slide 180
- Results of Risk Response Planning A description of the risk,
what area of the project it may affect, the causes of the risk, and
its impact on project objectives The identities of the risk owners
and their assigned responsibilities The outputs of qualitative and
quantitative analysis A description of the response to each risk,
such as: avoidance, transference, mitigation, or acceptance The
actions necessary to implement the responses The budget and
schedule for risk responses Both the contingency and fallback plans
180Behnam Faizabadi PhD,PMP, SSBB
- Slide 181
- Working with Residual Risks The risk response plan also
acknowledges any residual risks that may remain after planning,
avoidance, transfer, or mitigation. Residual risks are typically
minor and have been acknowledged and accepted. Management may elect
to add both contingency costs and time to account for the residual
risks within the project. 181Behnam Faizabadi PhD,PMP, SSBB
- Slide 182
- Accounting for Secondary Risks Secondary risks, however, are
risks that stem from risk responses. For example, transference may
elect to hire a third party to manage an identified risk. A
secondary risk caused by the solution is the failure of the third
party to complete their assignment as scheduled. Secondary risks
must be identified, analyzed, and planned for, just as any another
identified risk. 182Behnam Faizabadi PhD,PMP, SSBB
- Slide 183
- Risk Monitoring and Control Risks must be actively monitored
and new risks must be responded to as they are discovered. Risk
monitoring and control is the process of monitoring identified
risks for signs that they may be occurring, controlling identified
risks with the agreed responses, and looking for new risks that may
creep into the project. Risk monitoring and control also is
concerned with the documentation of the success or failure of risk
response plans, and keeping records of metrics that signal risks
are occurring, fading, or disappearing from the project. 183Behnam
Faizabadi PhD,PMP, SSBB
- Slide 184
- Goals of Risk Monitoring and control To confirm risk responses
are implemented as planned To determine if risk responses are
effective or if new responses are needed To determine the validity
of the project assumptions To determine if risk exposure has
changed, evolved, or declined due to trends in the project
progression To monitor risk triggers To confirm policies and
procedures happen as planned To monitor the project for new risks
184Behnam Faizabadi PhD,PMP, SSBB
- Slide 185
- Risk Response Audits A risk response audit examines the planned
risk response, how well the planned actions work, and the
effectiveness of the risk owner in implementing the risk response.
The audits happen throughout the project to measure the
effectiveness of mitigating, transferring, and avoiding risks. The
risk response audit should measure the effectiveness of the
decision and its impact on time and cost. 185Behnam Faizabadi
PhD,PMP, SSBB
- Slide 186
- T heres an old joke when it comes to project management time:
The first 90 percent of a project schedule takes 90 percent of the
time. The last 10 percent takes the other 90 percent of the time.
Project Time Management 186Behnam Faizabadi PhD,PMP, SSBB
- Slide 187
- Considering the Inputs to Activity Definition: WBS Scope
statement Historical information Constraints Assumptions Expert
judgment Decomposing the Project Work Packages Relying on Templates
Compiling the Activity List Organizing the Supporting Detail
Updating the Work Breakdown Structure Rolling wave planning
Defining the Project Activities 187Behnam Faizabadi PhD,PMP,
SSBB
- Slide 188
- A template can include several elements to make a project
managers life easier and the new project more successful: Required
actions to complete the project scope Required resources and skills
Required hours of duration for activities Known risks Outputs of
the work Descriptions of the work packages Supporting details
Template 188Behnam Faizabadi PhD,PMP, SSBB
- Slide 189
- Ways of Mapping the activities: Computer driven Manual process
Blended approach Considering the Inputs to Activity Sequencing
Activity list Product description Mandatory dependencies
Discretionary dependencies External dependencies Milestones Mapping
the Activities 189Behnam Faizabadi PhD,PMP, SSBB
- Slide 190
- Creating Network Diagrams Precedence Diagramming Method Arrow
Diagramming Method Conditional Diagramming Methods Utilizing
Network Templates Mapping the Activities 190Behnam Faizabadi
PhD,PMP, SSBB
- Slide 191
- I.Finish-to-start (FS) This relationship means Task A must
complete before Task B can begin. This is the most common
relationship. Example: The foundation must be set before the
framing can begin. II.Start-to-start (SS) This relationship means
Task A must start before Task B can start. This relationship allows
both activities to happen in tandem. For example, a crew of
painters is painting a house. Task A is to scrape the flecking
paint off the house and Task B is to prime the house. The workers
scraping the house must start before the other workers can begin
priming the house. All of the scraping doesnt have to be completed
before the priming can start, just some of it. Precedence
Diagramming Method 191Behnam Faizabadi PhD,PMP, SSBB
- Slide 192
- III.Finish-to-finish (FF) This relationship means Task A must
complete before Task B does. Ideally, two tasks must finish at
exactly the same time, but this is not always the case. For
example, two teams of electricians may be working together to
install new telephone cables throughout a building by Monday
morning. Team A is pulling the cable to each office. Team B is
connecting the cables to wall jacks and connecting the telephones.
Team A must pull the cable to the office so Team B can complete
their activity. The activities need to complete at nearly the same
time, by Monday morning, so the new phones are functional.
Precedence Diagramming Method 192Behnam Faizabadi PhD,PMP,
SSBB
- Slide 193
- IV.Start-to-finish (SF) This relationship is unusual and is
rarely used. It requires that Task A start so that Task B may
finish. Such relationships may be encountered in construction and
manufacturing. It is also known as just in time (JIT) scheduling.
An example is a construction of a shoe store. The end of the
construction is soon, but an exact date is not known. The owner of
the shoe store doesnt want to order the shoe inventory until the
completion of the construction is nearly complete. The start of the
construction tasks dictates when the inventory of the shoes is
ordered. Precedence Diagramming Method 193Behnam Faizabadi PhD,PMP,
SSBB
- Slide 194
- 194Behnam Faizabadi PhD,PMP, SSBB
- Slide 195
- AOA 195Behnam Faizabadi PhD,PMP, SSBB
- Slide 196
- Conditional diagramming methods are more complex and structured
than ADM or PDM. Conditional diagramming methods include system
dynamics and the graphical evaluation and review technique (GERT).
These models allow for loops and conditional branching. For
example, GERT may require that tests of the product be performed
several times before the project may continue. Based on the outcome
of the testing, the project may use one of several paths to enable
its completion. In addition, GERT allows for probabilistic
clarification of work package estimates. Conditional Diagramming
Methods 196Behnam Faizabadi PhD,PMP, SSBB
- Slide 197
- Only the required work should be scheduled. Finish-to-start
relationships are the most common and preferred. Activity
sequencing is not the same as a schedule. Scheduling comes after
activity sequencing. Examining the Sequencing Outputs 197Behnam
Faizabadi PhD,PMP, SSBB
- Slide 198
- Considering the Activity Duration Estimates Inputs: Activity
lists Constraints Assumptions Resource requirements Effort vs.
duration Resource capabilities Historical information Identified
risks Estimating Activity Durations 198Behnam Faizabadi PhD,PMP,
SSBB
- Slide 199
- Analogues estimating : Analogous estimating relies on
historical information to predict what current activity durations
should be. Analogous estimating is also known as top-down
estimating and is a form or expert judgment. To use analogous
estimating, the activities from the historical project are similar
in nature and are used to predict what the similar activities in
the current project will take. Estimating Activity Durations
199Behnam Faizabadi PhD,PMP, SSBB
- Slide 200
- Quantitative Estimates Quantitatively-based durations use
mathematical formulas to predict how long an activity will take
based on the quantities of work to be completed. For example, a
commercial printer needs to print 100,000 brochures. The workers
include two pressman and two bindery experts to fold and package
the brochures. Notice how the duration is how long the activity
will take to complete, while the effort is the total number of
hours (labor) invested because of the resources involved Estimating
Activity Durations 200Behnam Faizabadi PhD,PMP, SSBB
- Slide 201
- Parkinsons Law states: Work expands so as to fill the time
available for its completion. This little nugget of wisdom is
oh-so-true. Consider a project team member that knows an activity
should last 24 hours. The team member decides, in his own wisdom,
to say the activity will last 32 hours. This extra eight hours, he
figures, will allow plenty of time for the work to be completed
should any unforeseen incidents pop-up. The trouble is, however,
that the task will magically expand to require the complete 32
hours. Why does this happen? Consider the following: Factoring in
Reserve Time 201Behnam Faizabadi PhD,PMP, SSBB
- Slide 202
- Hidden time : Hidden time, the time factored in by the project
team member, is secret. No one, especially the project manager,
knows why the extra time has been factored into the activity. The
team member can then enjoy the extra time to complete the task at
leisure. Procrastination : Most people put off starting a task
until the last possible minute. The trouble with bloated, hidden
time is people may wait through the additional time theyve secretly
factored into the activity. Unfortunately, if something does go
awry in completing the activity, the work result is later than
predicted. Factoring in Reserve Time 202Behnam Faizabadi PhD,PMP,
SSBB
- Slide 203
- Demands: Project team members may be on multiple projects with
multiple demands. The requirement to move from project to project
can shift focus, result in loss of concentration, and require
additional ramp-up time as workers shift from activity to activity.
The demand for multitasking allows project team members to take
advantage of hidden time. On schedule :Activities are typically
completed on schedule or late, but rarely early. Users that have
bloated the activity duration estimates may finish their task ahead
of what they promised, but have a tendency to hold the results
until the activity was due. This is because workers arent usually
rewarded for completing work early. In addition, workers dont want
to reveal the inaccuracies in their time estimates. Workers may
believe future estimates may be based on actual work durations,
rather than estimates, so theyll sandbag the results to protect
themselves and finish on-schedule. Factoring in Reserve Time
203Behnam Faizabadi PhD,PMP, SSBB
- Slide 204
- Solutions : I.First off, the project manager should strive to
incorporate historical information and expert judgment to predicate
accurate estimates. II.Second, the project manager should stress a
genuine need for accurate duration estimates. III.Finally, the
project manager can incorporate a reserve time. Factoring in
Reserve Time 204Behnam Faizabadi PhD,PMP, SSBB
- Slide 205
- Start Date & Finish Date Iterative Revisiting the Project
Network Diagram Soft Logic Hard Logic Relying on Activity Duration
Estimates Considering the Resource Requirements Considering the
Resource Pool Availability Considering the Calendars ( Project
Calendar and Resource Calendar) Developing the Project Schedule
205Behnam Faizabadi PhD,PMP, SSBB
- Slide 206
- Evaluating the Project Constraints Reevaluating the Assumptions
Considering Leads and Lags Evaluating the Risk Management Plan
Examining the Activity Attributes Developing the Project Schedule
206Behnam Faizabadi PhD,PMP, SSBB
- Slide 207
- Start No Earlier Than (SNET) Start No Later Than (SNLT) Finish
No Later Than (FNLT) Finish No Earlier Than (FNET) Evaluating the
Project Constraints 207Behnam Faizabadi PhD,PMP, SSBB
- Slide 208
- Considering Leads and Lags 208Behnam Faizabadi PhD,PMP,
SSBB
- Slide 209
- Activity attributes are the characteristics of the work to be
completed, including Person(s) responsible for completing each work
package Where the work will take place (building, city, outdoors)
Type of activity (electrical, technical, supervised, and so on)
When the activity must take place (business hours, off-hours, more
unusual times) Examining the Activity Attributes 209Behnam
Faizabadi PhD,PMP, SSBB
- Slide 210
- Applying Mathematical Analysis Program Evaluation and Review
Technique (PERT) Graphical Evaluation and Review Technique (GERT)
Critical Path Method (CPM) Calculating Float in a PND Creating the
Project Schedule 210Behnam Faizabadi PhD,PMP, SSBB
- Slide 211
- PERT uses a weighted average formula to predict the length of
activities and the project. Specifically, PERT uses a pessimistic,
optimistic, and most likely estimate to predict when the project
will be completed. Note that PERT is rarely used in todays project
management practices. Program Evaluation and Review Technique
(PERT) 211Behnam Faizabadi PhD,PMP, SSBB
- Slide 212
- GERT uses conditional advancement, branching, and looping of
activities and is based on probable estimates. Activities within
GERT are dependent on the results of other upstream activities. For
example, the results of a work package may determine if additional
testing is needed, rework is required, or the project may continue
as planned. Graphical Evaluation and Review Technique (GERT)
212Behnam Faizabadi PhD,PMP, SSBB
- Slide 213
- This is the most common approach to calculating when a project
may finish. It uses a forward and backward pass to reveal which
activities are considered critical. Activities on the critical path
may not be delayed; otherwise, the project end date will be
delayed. The critical path is the path with the longest duration to
completion. Activities not on the critical path have some float
(also called slack) that allows some amount of delay without
delaying the project end date. The following illustration is an
example of the critical path Critical Path Method (CPM) 213Behnam
Faizabadi PhD,PMP, SSBB
- Slide 214
- 214Behnam Faizabadi PhD,PMP, SSBB
- Slide 215
- The following sections explain how to manually calculate the
early start, early finish, late start, late finish, float, and
critical path. CPM 215Behnam Faizabadi PhD,PMP, SSBB
- Slide 216
- A forward pass calculation is used to determine the early start
and early finish times for activities. The calculations, which are
expressed as units of time (such as hours, days, or weeks), do not
represent scheduled dates. Calculate the early start and finish
times as follows: 1.Write 0 for the early start time for the first
activity. 2.Add the duration to the early start time to calculate
the early finish time. Write these calculations in each box. The
early finish time of one activity becomes the early start time for
the next activity. 3.Repeat Step 2 for each activity working from
the beginning of the network to the end. Calculating Early Start
and Early Finish 216Behnam Faizabadi PhD,PMP, SSBB
- Slide 217
- A backward pass through the network computes the late start and
late finish times for activities as follows: 1.For late finish of
the last activity, write the latest time you want the project to
finish (generally, this would be the early finish time for the last
activity computed from the forward pass). 2.Subtract the duration
from the late finish to calculate the late start time. Write these
calculations in each box. The late start time of one activity
becomes the late finish time for the previous activity. 3.Repeat
Step 2 for each activity working from the end of the network to the
beginning. Calculating Late Start and Late Finish 217Behnam
Faizabadi PhD,PMP, SSBB
- Slide 218
- 218Behnam Faizabadi PhD,PMP, SSBB
- Slide 219
- 219Behnam Faizabadi PhD,PMP, SSBB
- Slide 220
- Float, or slack, is the amount of time a delayed task can delay
the projects completion. Technically, there are three different
types of float: Free float This is the total time a single activity
can be delayed without delaying the early start of any successor
activities. Total slack This is the total time an activity can be
delayed without delaying project completion. Project slack This is
the total time the project can be delayed without passing the
customer-expected completion date. Calculating Float in a PND
220Behnam Faizabadi PhD,PMP, SSBB
- Slide 221
- The critical path is typically the path with the longest
duration and will always have zero float. The critical path is
technically found once you complete the forward and backward pass.
Start with the forward pass, after the backwards pass you can
identify the critical and near critical path, as well as float.
Calculating Float in a PND 221Behnam Faizabadi PhD,PMP, SSBB
- Slide 222
- Calculating Float Float (slack) is calculated for each activity
by subtracting the early finish from the late finish. Float is the
amount of time the activity can slip without delaying the project
finish date. Calculating Float in a PND 222Behnam Faizabadi
PhD,PMP, SSBB
- Slide 223
- Picnic at the lake: critical path. 223Behnam Faizabadi PhD,PMP,
SSBB
- Slide 224
- Applying Duration Compression : Crashing Fast Tracking Using
Resource Leveling Heuristics Creating the Project Schedule
224Behnam Faizabadi PhD,PMP, SSBB
- Slide 225
- Project Network Diagram Outputs of Schedule Development
225Behnam Faizabadi PhD,PMP, SSBB
- Slide 226
- 226Behnam Faizabadi PhD,PMP, SSBB
- Slide 227
- 227Behnam Faizabadi PhD,PMP, SSBB
- Slide 228
- 228Behnam Faizabadi PhD,PMP, SSBB
- Slide 229
- Measuring Project Performance Returning to Planning ( Planning
is iterative,so it should be correct) Examining the Schedule
Variance Updating the Project Schedule Applying Corrective Action
Writing the Lessons Learned Controlling the Project Schedule
229Behnam Faizabadi PhD,PMP, SSBB
- Slide 230
- Project Cost Management Have you ever worked with a client who
had a huge vision for a project, but had little capital to invest
into the vision? Or have you worked with a client who gasped when
you revealed how much it would cost to complete their desired scope
of work? Or have you been fortunate and had a customer who accepted
the costs for the project at face value, made certain the funds
were available, and sent you on your way to complete the work? As a
general rule, management and customers are always concerned with
how much a project is going to cost in relation to how much a
project is going to earn. 230Behnam Faizabadi PhD,PMP, SSBB
- Slide 231
- Project Cost Management Most likely there is more negotiating,
questioning, and evaluating for larger projects than for smaller
ones. The relation between the project cost and the project scope
should be direct: you get what you pay for. Think its possible to
buy a mansion at ranch home prices? Not likely. Think its possible
to run a worldwide marketing campaign at the cost of a postcard
mailer? Not likely. A realistic expectation of what a project will
cost will give great weight to the projects scope. Costs associated
with projects are not just the costs of goods procured to complete
the project. The cost of the labor may be one of the biggest
expenses of a project. The project manager must rely on time
estimates to predict the cost of the labor to complete the project
work. In addition, the cost of the equipment and materials needed
to complete the project work must be factored into the project
expenses 231Behnam Faizabadi PhD,PMP, SSBB
- Slide 232
- Planning the Project Resources As part of the planning process,
the project manager must determine what resources are needed to
complete the project. Resources include the people, equipment, and
materials that will be utilized to complete the work. In addition,
the project manager must identify the quantity of the needed
resources and when the resources are needed for the project. The
identification of the resources, the needed quantity, and the
schedule of the resources are directly linked to the expected cost
of the project work, as shown here: 232Behnam Faizabadi PhD,PMP,
SSBB
- Slide 233
- Planning the Project Resources Consider a project to fully
automate a new home: the lights, heating and cooling, appliances,
and home security are all connected through a central computer
operating system. The resources to complete the project work would
include technicians, HVAC experts, electricians, and other people
with the knowledge to install and configure the components. The
resources in this case, however, would also include the network
cabling to connect the components, diagnostic tools to monitor and
test the installation, and the equipment and tools to physically
install the components. In addition, services and sites are
considered resources as well. Your project may require a vendors
service, such as a commercial printer, a carpenter, or other
service. If these services are not available for the project as
planned, the project will suffer. Some projects require you to
lease space; the leased space is considered a resource. In some
instances, it most cost effective to hire a consultant or subject
matter expert (SME) to identify details unique to the project work,
such as mandates, laws, standards, and so on. The expense of
relying on the SME may be far less than the cost of the time to
research the unique details and requirements of the project. The
knowledge gained from the SME can offset the expenses that would
otherwise result from not having specialized knowledge of the
project work. 233Behnam Faizabadi PhD,PMP, SSBB
- Slide 234
- Consider the Inputs to Resource Planning Work breakdown
structure Historical information Scope statement Resource pool
description Organizational policies Activity duration estimates
Expert Judgment Identifying Alternative Solutions Relying on
Project Management Software 234Behnam Faizabadi PhD,PMP, SSBB
- Slide 235
- Identifying Resource Requirements Once the project manager and
the project team have completed resource planning, the required
resources to complete the project will have been identified. The
resource identification is specific to the lowest level of the WBS.
The identified resources will need to be obtained through staff
acquisition or through procurement. 235Behnam Faizabadi PhD,PMP,
SSBB
- Slide 236
- Cost Estimating Using the Work Breakdown Structure Relying on
the Resource Requirements Calculating Resource Rates Estimating
Activity Durations Using Estimating Publications Using Historical
Information Referencing the Chart of Accounts Acknowledging the
Cost of Risk 236Behnam Faizabadi PhD,PMP, SSBB
- Slide 237
- Calculating Resource Rates The estimator has to know how much
each resource costs. The cost should be in some unit of time or
measuresuch as cost per hour, cost per metric ton, or cost per use.
If the rates of the resources are not known, the rates themselves
may also have to be estimated. Of course, skewed rates on the
estimates will result in a skewed estimate for the project. There
are four categories of cost: Direct costs These costs are
attributed directly to the project work and cannot be shared among
projects (airfare, hotels, and long distance phone charges, and so
on). Variable costs These costs vary depending on the conditions
applied in the project (number of meeting participants, supply and
demand of materials, and so on). Fixed costs These costs remain
constant throughout the project (the cost of a piece of rented
equipment for the project, the cost of a consultant brought onto
the project, and so on). Indirect costs These costs are
representative of more than one project (utilities for the
performing organization, access to a training room, project
management software license, and so on). 237Behnam Faizabadi
PhD,PMP, SSBB
- Slide 238
- Estimating Project Costs Analogous Estimating Parametric
Modeling Using Bottom-Up Estimating Using Computer Software
238Behnam Faizabadi PhD,PMP, SSBB
- Slide 239
- Estimating Project Costs Analogous Estimating : Analogous
estimating relies on historical information to predict the cost of
the current project. It is also known as top-down estimating. The
process of analogous estimating takes the actual cost of a
historical project as a basis for the current project Heres an
example of analogous estimating: the Carlton Park Project was to
grade and pave a sidewalk around a pond in the community park. The
sidewalk of Carlton Park was 1048 feet by 6 feet, used a textured
surface, had some curves around trees, and cost $25,287 to
complete. The current project, King Park, will have a similar
surface and will cover 4,500 feet by 6 feet. The analogous estimate
for this project, based on the work in Carlton Park, is $$108,500.
This is based on the price per foot of material at $4.021 note that
$4.021 is not the same as $4.21. 239Behnam Faizabadi PhD,PMP,
SSBB
- Slide 240
- Estimating Project Costs Parametric Modeling : Parametric
modeling uses a mathematical model based on known parameters to
predict the cost of a project. The parameters in the model can vary
based on the type of work being completed. A parameter can be cost
per cubic yard, cost per unit, and so on. A complex parameter can
be cost per unit with adjustment factors based on the conditions of
the project. In addition, the adjustment factors may have
additional modifying factors depending on additional conditions.
240Behnam Faizabadi PhD,PMP, SSBB
- Slide 241
- Estimating Project Costs To use parametric modeling, the
factors the model is based on must be accurate. The factors within
the model are quantifiable and dont vary much based on the effort
applied to the activity. And finally, the model must be scalable
between project sizes. The parametric model using a scalable
cost-per-unit approach is depicted here:. 241Behnam Faizabadi
PhD,PMP, SSBB
- Slide 242
- Types of parametric estimating Regression analysis This is a
statistical approach to predict what future values may be, based on
historical values. Regression analysis creates quantitative
predictions based on variables within one value to predict
variables in another. This form of estimating relies solely on pure
statistical math to reveal relationships between variables and
predict future values. Learning curve This approach is simple: the
cost per unit decreases the more units workers complete; this is
because workers learn as they complete the required work. The more
an individual completes an activity, the easier it is to complete.
The estimate is considered parametric, as the formula is based on
repetitive activities, such as wiring telephone jacks, painting
hotel rooms, or other activities that are completed over and over
within a project. The cost per unit decreases as the experience
increases because the time to complete the work is shortened.
242Behnam Faizabadi PhD,PMP, SSBB
- Slide 243
- Analyzing Cost Estimating Results The output of cost estimating
is the actual cost estimates of the resources required to the
complete the project work. Cost Categorization: Labor costs
Material costs Travel costs Supplies Hardware costs Software costs
Special categories (inflation, cost reserve, and so on) 243Behnam
Faizabadi PhD,PMP, SSBB
- Slide 244
- Cost Estimating Results Rough order of magnitude This estimate
is rough and is used during the Initiating processes and in
top-down estimates. The range of variance for the estimate can be
25 percent to +75 percent. Budget estimate This estimate is also
somewhat broad and is used early in the Planning processes and also
in top-down estimates. The range of variance for the estimate can
be 10 percent to +25 percent. Definitive estimates This estimate
type is one of the most accurate. It is used late in the Planning
processes and is associated with bottom-up estimating. The range of
variance for the estimate can be 5 percent to +10 percent.
244Behnam Faizabadi PhD,PMP, SSBB
- Slide 245
- Cost Estimating Results Supporting Detail : Information on the
project scope work This may be provided by referencing the WBS.
Information on the approach used in developing the cost estimates
This can include how the estimate was accomplished and the parties
involved with the estimate. Information on the range of variance in
the estimate For example, based on the estimating method used, the
project cost may be $220,000 $15,000. This project cost may be as
low as $205,000 or as high as $235,000. 245Behnam Faizabadi
PhD,PMP, SSBB
- Slide 246
- Cost Budgeting Cost budgeting and cost estimates may go
hand-in-hand, but estimating should be completed before a budget is
requestedor assigned 246Behnam Faizabadi PhD,PMP, SSBB
- Slide 247
- Consider the Inputs to Cost Budgeting Cost estimates Work
breakdown structure Project schedule Risk management plan 247Behnam
Faizabadi PhD,PMP, SSBB
- Slide 248
- Developing the Project Budget Analogous budgeting. This is a
form of expert judgment that uses a top down approach to predict
costs. It is generally less accurate than other budgeting
techniques. Parametric modeling. This approach uses a parametric
model to extrapolate what costs will be for a project (for example,
cost per hour and cost per unit). It can include variables and
points based on conditions. Bottom-up budgeting This approach is
the most reliable, though it also takes the longest to create. It
starts at zero and requires each work package to be accounted for.
Computerized tools The same software programs used in estimating
can help predict the project budget with some accuracy. 248Behnam
Faizabadi PhD,PMP, SSBB
- Slide 249
- Creating the Cost Baseline 249Behnam Faizabadi PhD,PMP,
SSBB
- Slide 250
- Cost Control Cost control is concerned with understanding why
the cost variances, both good and bad, have occurred. The why
behind the variances allows the project manager to make appropriate
decisions on future project actions. Ignoring the project cost
variances may cause the project to suffer from budget shortages,
additional risks, or scheduling problems. When cost variances
happen they must be examined, recorded, and investigated. Cost
control allows the project manager to confront the problem, find a
solution, and then act accordingly. Specifically, cost control
focuses on these activities: Controlling causes of change to ensure
the changes are actually needed Controlling and documenting changes
to the cost baseline as they happen 250Behnam Faizabadi PhD,PMP,
SSBB
- Slide 251
- Cost Control Controlling changes in the project and their
influence on cost Performing cost monitoring to recognize and
understand cost variances Recording appropriate cost changes in the
cost baseline Preventing unauthorized changes to the cost baseline
Communicating the cost changes to the proper stakeholders Working
to bring and maintain costs within an acceptable range 251Behnam
Faizabadi PhD,PMP, SSBB
- Slide 252
- Cost Control Cost Control Inputs Creating a Cost Change Control
System Measuring Project Performance Calculating the CPI
Calculating Estimate at Completion 252Behnam Faizabadi PhD,PMP,
SSBB
- Slide 253
- Cost Control Inputs Cost baseline Performance reports Change
requests Cost management plan 253Behnam Faizabadi PhD,PMP,
SSBB
- Slide 254
- Creating a Cost Change Control System 254Behnam Faizabadi
PhD,PMP, SSBB
- Slide 255
- Measuring Project Performance Earned Value Management (EVM) is
the process of measuring performance of project work against a plan
to identify variances. It can also be useful in predicting future
variances and th