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