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Slide 14.1
4E1 Project Management
Running the Project
Slide 14.2
Key Concepts
Day-to-day running of projects
Problems of project management
Communicating
Project Office
Earned value analysis
Qualities of a good project manager
Slide 14.3
Closed Loop Control in Projects
Issuefresh
instructions
Issuefresh
instructions
Monitorprogress
against plan
Monitorprogress
against plan
Identify variances in performance
Identify variances in performance
Decidecorrective
action
Decidecorrective
action
Performthe
Task
Performthe
Task
Assigntask as planned
Assigntask as planned
Task successfully
achieved
Task successfully
achieved
Lock p. 471
Slide 14.4
The Art of Project Management
Slide 14.5
What Could Go Wrong?
‘Routine’ problems• Small delays, minor technical hitches, inaccurate estimates
Large problems/major delays• Serious technical or legal problems, changes in project scope
Showstoppers
Problems fall into three groups levels• Self-generated (i.e. my fault)
• PM-controlled or owned (i.e. not my fault but my responsibility)
• Outside PM’s control (not my fault, not my responsibility)
Slide 14.6
Self-Inflicted Problems
Scope creep and minor design changes• Impact time and/or cost
Options• Fit in (use available slack)
• Refer up
• Revise plan
• No changes (the ‘N’ word)
Detection• Project Management Information Systems
• Traffic light systems
• Earned value analysis
Slide 14.7
Traffic Light System for a Programme
On time andbudget
BehindSchedule
Ahead ofSchedule(weeks)
Ahead of budget
Behind budget
- 500 - 400
- 300
- 200
- 100
+ 100
+ 200
+ 12 +10 +8 +7 +4 +2 -2 -4 -6 -8 -10 -12
3
15
5
26 9
8
111
12
13
16
7
10
4
14
Slide 14.8
Dealing with Major Problems
Substitution/alternatives
Accept and adjust
Try to makeup elsewhere
Major ProjectProblem/Delay
People,machinery
Time
Bypass
Unorthodoxmethods?
Additionalresources?(Crashing)
Overallre-planning?
Scopeculling
Slide 14.9
The Project Management OfficeTwo concepts
• (General) project management office• Site project office
Goals• Promote/spread good PM practice• Knowledge management• Improve success rate• Reduce lead times• Consolidate and simplify data• The PM’s PM
Slide 14.10
PM Office TasksChampion excellence in project management
• Establish good practice• Assess and improve PM maturity• Develop an enterprise approach• Provide training• Develop and mentor managers
Help with administration• Procedures, filing system• Tracking• Analyses• Report preparation• Maintaining archives, resources database/pool
Slide 14.11
PM Office Tasks (cont.)Provide technical support
• Assist with new project set-up and launch• Advise on cost-benefit analysis• Assist in estimating• Assist in management of risks• Conduct quality checks • Assist in project termination
General functions• Provide a centre of expertise• Offer consulting services• Conduct audits• Assess implications of changes• Collect and disseminate information on PM generally
Slide 14.12
Example: Dublin City CouncilDCC has a highly developed procedures manual
Amongst other procedures it contains:• Statement of confidentiality• Performance reviews• Making a change request• Cost management planning• Project organisation and roles• Requests for proposal• Bidders’ conference management• Reporting on works• Quality management planning• Risk response planning
Slide 14.13
The Site Project Office
Slide 14.14
Communication
Project Team
Partners/other managers
Users/customer
Management
Slide 14.15
CommunicationUp to 80% of PM’s time can be spent communicating
• A two-way process
Communicating upwards (with senior management)• Reporting
Communicating downwards (with subordinates)• Meetings (formal, informal)• Instructions
Sideways (with other project managers)• Liaison, coordination
Slide 14.16
Good CommunicationCharacteristics of good communication
• Regular• Open• Honest/accurate• Full• Two-way• Timely• Avoids conflict• Appropriate
Problems• Putting off the evil day• Games• Unnecessary confrontation
Greatest problem: assumption that communication has happened
Slide 14.17
Project Team MeetingsBasics
• Regular• Attendance is important• Agenda, action lists/minutes
Don’t get into fights or personalise issues
Do:• Control the process• Firmness• Ownership• Clarity • Fast follow-up• Take problems off-line
Slide 14.18
Action Lists
Date Action Responsibility Status Deadline
Slide 14.19
“Work To” ListsID Description Orig Sched. Sched. Rem. % % Progress expected by next review
durn Start Finish durn. 100 Com.
1 Project start 0 13MAY07 12MAY07 0 0
2 Make/prime door 1 13MAY07 13MAY07 1 0
3 Dig foundations 4 13MAY07 16MAY07 4 0
7 Position door frame 1 14MAY07 16MAY07 1 0
4 Make doors 3 15MAY07 17MAY07 3 0
8 Concrete foundations 2 17MAY07 20MAY07 2 0
9 Prime doors 1 20MAY07 20MAY07 1 0
11 Lay bricks for walls 10 21MAY07 03JUN07 10 0
13 Fit RSJ Lintel 1 04JUN07 04JUN07 1 0
18 Case lintel/ parapet 2 05JUN07 06JUN07 2 0
12 Lay floor base 2 07JUN02 10JUN02 2 0
6 Cut roof timbers 1 07JUN07 07JUN07 1 0
17 Screed floor 1 11JUN07 11JUN07 1 0
21 Hang doors 1 12JUN07 12JUN07 1 0
Slide 14.20
Cost ManagementKey concepts
• Budget• Actual• Variance• Forecast• Current period• Cumulative• Commitment accounting
Financial management is important
For costs, need to know where and why
Slide 14.21
Cost Profile
Budgeted
Actual
CumulativeCost
Time
Limitations of this information
Slide 14.22
Commitment Accounting
Task Status Budget Spent Balance Expected to Expected to date completion variance
___________________________________________________________________
0244H Ongoing €30,000 €22,000 €8,000 €8,000 €0
0246H Complete €45,000 €50,000 (€5,000) €0 (€5,000)
0347J Ongoing €7,000 €3,000 €4,000 €6,500 (€2,500)
1488C NS €17,250 €0 €17,250 €17,250 €0
4601H Ongoing €8,300 €7,000 €1,300 €4,300 (€4,000)
3122J Ongoing €12,000 €6,000 €6,000 €2,500 €3,500
…….
There are several variations on this
Slide 14.23
Earned Value AnalysisLinks cost reporting with cost control
Starts from the WBS and cost coding
Terminology:• ACWP: Actual Cost of Work Performed
• BCWP: Budgeted Cost of Work Performed
• BCWS: Budgeted Cost of Work Scheduled
• CPI: Cost Performance Index
• SPI: Schedule Performance Index
We have:
CPI = BCWP
ACWPSPI =
BCWP
BCWS
Slide 14.24
ExamplePlan
• Build a wall of 1,000 metres (estimate €40,000)• Time estimate 50 days (10 weeks @ 5 days)• Linear rate of progress
Implied budget• €800/20 metres per day, €40 per metre
At the end of day 20, 360 metres completed• ACWP = €18,000• BCWS = €16,000• BCWP = €14,400
Slide 14.25
EVA Example
What does this tell us?
Using a pro-rata approach we might:• forecast that the cost will rise by €10,000• forecast that the time will rise to 56 days
This must be done for each task
Progress may not be linear
Activity may be interrupted or completed
Tasks may be modified
CPI = BCWP
ACWP=
14,40018,000
= 0.8 SPI = BCWP
BCWS=
14,40016,000
= 0.9
Slide 14.26
Commissioning snagscause unexpected cost
OverspendPredicted
Cost-Profit Graph
1000
900
800
700
600
500
400
300
200
100
08 16 24 32 40 48 56 64 72 80 88 96 104 112 120 128
Too early to detectany clear trend
Management vigilance improves performance
XXXX
XXX X
X XXX
X XX
XX X
XX
X
X X X X X X XX X X X X
Selling price
Step caused by pricevariation
Cost budget
Projected cost
Actual cost
Weeks
Expd.
Slide 14.27
Project Manager’s RolesManagement by
• Exception• Walking about• Example (leadership and motivation)
Delegation
The iron fist in the velvet glove• Clarity and determination
Starting new tasks
Closing tasks and projects• The “95% complete” syndrome
Taking hard decisions
Slide 14.28
Summary: Key PointsProject managers need to be
• good communicators• strong personalities• firm, but fair• able to take hard decisions• capable of keeping focus in complex situations• able to work on their own
Running a project is about• Knowing what is happening at all times• Communicating with all relevant parties• Making sure that information gets to the right people• Taking appropriate actions quickly
Top class project managers are special
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