8/3/2019 04 Gido LPPT_Ch04

1/21

The Project

8/3/2019 04 Gido LPPT_Ch04

2/21

Planning the Project

Clearly define the project objective

Divide and subdivide the project

Define the specific activities to be performed Graphically portray the activities in a network diagram

Make a time estimate for how long it will take to complete eachactivity.

Make a cost estimate for each activity.

Calculate a project schedule and budget Determine if project can be accomplished within time, funds,

and available resources

Develop a baseline plan

8/3/2019 04 Gido LPPT_Ch04

3/21

Planning the Project (Cont.)

Keep in mind: Projects overrun their budgets, miss completion dates, or

only partially satisfy their technical specifications becausethere is no viable baseline plan

The people involved in performing the project shouldparticipate in planning the work; they are mostknowledgeable

Participating in the planning helps individuals becomecommitted to accomplishing it

8/3/2019 04 Gido LPPT_Ch04

4/21

Managing Risk

Risk is defined as the possibility that an unwantedcircumstance will occur that can result in some loss

Project managers must accept that risk is part of projectmanagement

They must encourage discussion of risks among the project team

Risk management consists of four components:

Risk Identification

Risk Assessment

Risk Response Planning Contingency Plan

Risk Monitoring

8/3/2019 04 Gido LPPT_Ch04

5/21

Risk Identification

Risk identification includes determining which risksmay adversely affect the project objective and what

the consequences of each risk might be if they occur Most common approach to identifying the sources of

risks is brainstorming

Another source helpful in identifying possible risks is

historical information from past projects

8/3/2019 04 Gido LPPT_Ch04

6/21

Risk Assessment

Assessing each risk involves determining likelihoodthat the risk event will occur and the degree of

impact the event will have on the project objective

Based on the potential likelihood of occurrence andpotential impact, the risks can be prioritized

Refer Figure 4.2 Risk assessment Matrix

8/3/2019 04 Gido LPPT_Ch04

7/21

Risk Assessment Matrix

Figure 4.2

8/3/2019 04 Gido LPPT_Ch04

8/21

Risk Response Planning

Risk response planning includes: Developing an action plan to reduce the impact or likelihood of

each risk Establishing a trigger point for when to implement action plans to

address each risk Assigning responsibility to specific individuals for implementing

each response plan

A risk plan is used to: avoid, mitigate, or accept the risk. Contingency Plan: Predefined set of actions that would be

implemented if the risk event occurs A contingency or management reserve should be included to pay

for the additional expenses of implementing contingency plans. It should also account for working overtime Must include a trigger point (warning flag)

8/3/2019 04 Gido LPPT_Ch04

9/21

Risk Monitoring

Involves regularly reviewing the risk managementmatrix throughout the project

It is important to determine if there are any changesto the likelihood of occurrence and/or the potentialimpact of any of the risk throughout the duration ofthe project

New risks may also be identified, and need to be

added to the risk assessment matrix The agenda for project status review meetings

should include risk assessment Particular attention should be given to the trigger points

8/3/2019 04 Gido LPPT_Ch04

10/21

Performing the Project

Once the baseline plan has been developed, projectwork can proceed

The project team, led by the project manager, willimplement the plan and perform the activities or workelements

The pace of project activity will increase as more and

various resources become involved

8/3/2019 04 Gido LPPT_Ch04

11/21

Controlling the Project

Monitor progress

Measure actual progress and compare it to plannedprogress

Track which activities have been started and/orcompleted, when, and how much money has beenspent

Take corrective action to get back on track

Compare on a timely and regular basis and takecorrective action

8/3/2019 04 Gido LPPT_Ch04

12/21

Controlling the Project (Cont.)

A regular reporting period should collect: Data on actual performance

Information on any changes in scope, schedule, and budget

Keep in mind: Data should be collected in a timely manner and used to

update the schedule and budget

Compare updated schedule and budget to the baseline and

analyze Shorter the reporting period, better the chances of

identifying problems early and taking effective correctiveactions

Controlling the Project (Cont.)

8/3/2019 04 Gido LPPT_Ch04

13/21

Controlling the Project (Cont.)

Project management is proactive

This third phase ends when the requirements havebeen met, project objective has been accomplished,and the customer is satisfied

Project management is proactive

This third phase ends when the requirements havebeen met, project objective has been accomplished,and the customer is satisfied

8/3/2019 04 Gido LPPT_Ch04

14/21

Terminating the Project

The purpose of properly terminating a project is tolearn from the experience in order to improve

performance on future projects

Termination activities should be identified in thebaseline plan

Verify that all agreed-on deliverables were provided

Organize and file project-related documentation

8/3/2019 04 Gido LPPT_Ch04

15/21

Terminating the Project (Cont.)

Assure that all payments have been collected fromthe customer

Assure that all payments for materials andsubcontractors have been paid

Prepare a written performance evaluation of eachmember of the project team

Hold post-project evaluation meetings Celebrate

8/3/2019 04 Gido LPPT_Ch04

16/21

Internal Post-Project Evaluation

Have individual meetings with team members and agroup meeting with the project team

Hold soon after the completion Announce meeting in advance so people can be

prepared

Individual meetings allow team members to give

their personal impressions

8/3/2019 04 Gido LPPT_Ch04

17/21

Internal Post-Project Evaluation (Cont.)

Develop an agenda for a group meeting

Group meeting should discuss performance andrecommendations for improvement

Issue a brief written report to management with asummary and recommendations

8/3/2019 04 Gido LPPT_Ch04

18/21

Internal Post-Project Evaluation (Cont.)

Some topics that might be discussed:

Technical performance

Cost performance Schedule performance

Project planning and control

Risk management

Customer relationships

Team relationships

Communications

Problem identification and resolution

Lessons learned

Recommendations

8/3/2019 04 Gido LPPT_Ch04

19/21

Customer Feedback

Meet to discuss whether the project provided thecustomer with the anticipated benefits, assess the

level of customer satisfaction, and obtain anyfeedback

Participants include the project manager, key projectteam members, and key representatives of thecustomer

Ask open-ended questions

Customers can express their level of satisfaction andprovide detailed comments

8/3/2019 04 Gido LPPT_Ch04

20/21

Customer Feedback (Cont.)

If the customer is satisfied with the project:

Ask about other projects you could doperhaps

without going through a competitive RFP process Ask permission to use the customer as a reference

Get feedback regarding satisfaction through a post-project customer evaluation survey

8/3/2019 04 Gido LPPT_Ch04

21/21

Early Project Termination

If research shows costs will be much more thanoriginally anticipated

If there is a change in a companys financial situation

Because of dissatisfaction of the customer

Avoid early termination due to customerdissatisfaction by monitoring customer satisfactioncontinually and taking corrective action