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Project ManagementIntroduction
Michel Tollenaere (INPG)http://www.g-scop.fr/~tollenam/best
AgendaAgenda Definitions
Project scope management Time, quality, cost
Human resources management Information management
Risk management Project Management Institute
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Definitions
A project is a temporary endeavour undertaken to create a unique product or service.
It is • performed by people
• constrained by limited resources• planned, executed and controlled
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Examples
• developing a new product or service • effecting change in a structure, staffing or style of an organisation• 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 in a developing country• running at campaign for political office• implementing a new business procedure or process• budget from 10k€ to many M€
• METEOR an automatic underground railway in Paris
• implementing SAP in multi-sites company
• the football world cup in Paris in 98
• from 8 to 10 digits numbering in a phone system
• implementing A380 in a company ..\..\
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Project features (1)
• A project has a definite beginning and definite end
• The duration of a project is finite
• The opportunity or market window is usually temporary, most projects have a limited time frame in which to produce the product or service
• The project team - as a team - seldom outlives the project. Most projects are performed by a team created for the sole purpose of performing the project
Temporary
• Projects involve doing something that has not been done before in the same environment
• The project may require some innovation to be completed
Unique result
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Project features (2)
Progressive elaboration
• A project occurs step by step to define the product or service, in a so called “progressive elaboration” process.
• for instance, the development of a chemical processing plant begins with the process engineering to define the characteristics of the process, and ends with the final assembly.
Development of a chemical processing plantDefine the chemical
characteristics of the process
General plant layout
Mechanical characteristics of the
process units (pumps..etc)
Detailed drawings
Manufacturing of the parts
Final Assembly
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Project features (3)
Progressive elaboration• In aerospace industry, projects are divided in milestones (M1, M3, M5, M7, M9, M11) corresponding to a “state” of the aircraft.
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Project Lifecycle
TimeStart Finish
Cost and Staffing
levelInitial Phase
Intermediate Phases (one
or more) Final Phase
Milestones : • defined state of the project • decision point
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Project Lifecycle : example US - DOD 5000.2
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Construction Project Lifecycle
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Pharmaceuticals Project Lifecycle
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Project scope management (PMI chap 5)
AgendaAgenda Definitions
Project scope management Time, quality, cost
Human resources management Information management
Risk management
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Project scope management (PMI chap 5)
• Product Scope : the features and functions that characterise a product or service
• Project Scope : the work that must be done to deliver a product with the specified features and functions
Both scopes are described and detailed with specific tools.
Project scope management consists to ensure that the project includes all the work required, and only the work required, to complete the product successfully.
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Product scope management
PROGRAMME
SERIES /DERIVES
COMPOSANTS PRINCIPAUX
ASSEMBLAGES
SOUS-ASSEMBLAGES
COMPOSANTS ELEMENTAIRES
A380
A380 800F A380 800 A380 700 ...
FUSELAGE AILE EMPENNAGE ...
CAISSON DE VOILURE LEADING EDGE BORD D’ATTAQUE ...
STRUCTURE SYSTEME ...
Part 10005
Part 10009
Part 10002
ATTACHE TRINGLERIE
MECANIQUE
STRUCTURE
PROGRAM
SERIES OF AIRPLANE
MAJOR COMPONENTS
ASSEMBLIES
SUB -ASSEMBLIES
COMPONENTS ELEMENTARY
A380
A380 800F A380 800 A380 700 ...
FUSELAGE WING TAILPLANE ...
CAISSON DE VOILURE LEADING EDGE BORD D’ATTAQUE ...
STRUCTURE SYSTEME ...
Part 10005
Part 10009
Part 10002
ATTACHE TRINGLERIE
PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE
MECANIQUE SYSTEMHYDRAULIC
STRUCTURE
• Bill of Materials• FAST Diagram• Structured tool that describes the product
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Project scope management : WBS Work Breakdown Structure
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Project scope management : WBS of a software release
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Project scope definition : from BOM to WBS
• Defining the right activities is essential for « project scope definition »
• a WBS from a previous project is often used as a template for a new project.• any component in a BOM must be purchased or manufactured.• in all cases (purchasing or manufacturing), it must be tested.• any assembly should be assembled and tested (especially in software engineering)• documentation activity is essential for robust project
Activity. An element of work performed during the course of a project. An activity normally has an expected duration, an expected cost, and expected resource requirements. Activities can be subdivided into tasks.
Activity Definition. Identifying the specific activities that must be performed to produce the various project deliverables.
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Project scope Change Management
• Any change to product and/or project scope must follow a formal process
• This process must finish with the formal acceptance of the change by the different stakeholders.
A change request may be the result of :
• An external event (eg. Change in a government regulation)• an error or omission in defining the scope of the product (adding a failure system regulation).• an error in defining the scope of the project (a missing inspection)• a value adding change (positive opportunity)• a response to an identified risk (see section about risk management)
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Customer needs :Customer needs
description :
simple, red, robust, with wheels
What is finally developedWhat is the
manufacturer expected to do
What the architect finally described
What the architect understands
Possible evolutions in Product scope
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Customer’s Needs
Specifications What has been realised
Errors in specifications
Waste
Unsatisfaction
AdequateQuality
Happy hazard
Overquality
Court circuit
Monitoring Project scope during the project
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Monitoring Project scope during the project
A universal tool ……
might be so heavy and expensive
??
??
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Project scope management (PMI chap 5)
Project Scope Management. A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully. It consists of initiation, scope planning, scope definition, scope verification, and scope change control.
Scope Definition. Subdividing the major deliverables into smaller, more manageable components to provide better control.Scope Planning. The process of progressively elaborating the work of the project, which includes developing a written scope statement that includes the project justification, the major deliverables, and the project objectives.Scope Statement. The scope statement provides a documented basis for making future project decisions and for confirming or developing common understanding of project scope among the stakeholders. As the project progresses, the scope statement may need to be revised or refined to reflect approved changes to the scope of the project.Scope Verification. Formalizing acceptance of the project scope.
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Project triangle Time, Cost, Quality
AgendaAgenda Definitions
Project scope management
Time, quality, cost Human resources management
Information management Risk management
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Project time management
• requires activity definition• includes activity sequencing• estimates activity duration• elaborates schedule of activities
Activity duration model
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Project time management
• estimates activity duration
Resource requirements : which resources are required for such activity ?Activity duration # activity work effortSome activities (eg. getting authorisation, transportation time) can require a long time without any work-effort.
• elaborates schedule of activities
Many software tools (MSProject) do the job quite well (in a deterministic manner)They offer many outputs (GANTT Chart, PERT … etc)
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Project time management
• relationships between activities : Logical Relationship
• Finish-to-start-the initiation of work of the successor depends upon the completion of work of the predecessor.
• Finish-to-finish-the completion of the work of the successor cannot finish until the completion of work of the predecessor.
• Start-to-start-the initiation of work of the successor depends upon the initiation of the work of the predecessor.
• Start-to-finish-the completion of the successor is dependent upon the initiation of the predecessor.
Activity A Activity B
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Project time management
• Network Logic Diagram
Precedence diagram method ; A, B, C, D, E, F are activities
A B
CD
E
FinishF
Start
Arrow diagramming method ; activities are shown as arrows
AB
CD
E
FinishF
Start
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Project time management
• Provides start and finish dates for all activities
A B
CD
E
FinishF
Start
AB
CD
E
FinishF
Start
Float. The amount of time that an activity may be delayed from its early start without delaying the project finish date. Float is a mathematical calculation, and can change as the project progresses and changes are made to the project plan. Also called slack, total float, and path float.
Free Float (FF). The amount of time that an activity can be delayed without delaying the early start of any immediately following activities. See also float.
Critical Path. The series of activities that determines the duration of the project. In a deterministic model, the critical path is usually defined as those activities with float less than or equal to a specified value, often zero. It is the longest path through the project. See critical path method.
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Project Cost management
• cost management includes the following processes
Resource planning - Cost estimating - Cost budgeting - Cost control
TimeStart Finish
Cumulative values
Initial Phase
Intermediate Phases (one or more)
Final Phase
Total budget of the project
The S – Curve of cost baseline
M€
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Project Cost management
• different cost for an activity
Planned Value (PV). The physical work scheduled, plus the authorized budget to accomplish the scheduled work. Previously, this was called the budgeted costs for work scheduled (BCWS).
Earned Value (EV). The physical work accomplished plus the authorized budget for this work. The sum of the approved cost estimates (may include overhead allocation) for activities (or portions of activities) completed during a given period (usually project-to-date). Previously called the budgeted cost of work performed (BCWP) for an activity or group of activities.
Actual Cost (AC). Total costs incurred that must relate to whatever cost was budgeted within the planned value and earned value (which can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs) in accomplishing work during a given time period.
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Project Cost Management
• different contractsA contract is a mutually binding agreement that obligates the seller to provide the specified product and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories:Fixed-price or lump-sum contracts - this category of contract involves a fixed total price for a well-defined product. Fixed-price contracts may also include incentives for meeting or exceeding selected project objectives, such as schedule targets.Cost-reimbursable contracts - this category of contract involves payment (reimbursement) to the contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by the project, such as wages for members of the project team) and indirect costs (costs allocated to the project by the performing organization as a cost of doing business, such as salaries for corporate executives). Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable contracts often include incentives for meeting or exceeding selected project objectives, such as schedule targets or total cost.Time and material contracts-time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed- price-type arrangements. Time and material contracts resemble cost-type arrangements in that they are open ended, because the full value of the arrangement is not defined at the time of the award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-unit arrangements when, for example, the unit rates are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior engineers."
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Project quality management
Let’s start with a story :
La Route du Rhum 2002
Only 3 sailers (upon 15) arriving at Pointe-à-Pitre !!!
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Project quality management
Quality management applies to :- project activities- and project results (deliverables, components)to fulfil quality objectives.
PLAN: Design or revise business process components to improve results DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the results to decision makers ACT: Decide on changes needed to improve the process
The Deming Cycle
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Project quality management
Quality Planning. Identifying which quality standards are relevant to the project, and determining how to satisfy them.
Quality Assurance (QA). 1) The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. 2) The organizational unit that is assigned responsibility for quality assurance.
Quality Control (QC). 1) The process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. 2) The organizational unit that is assigned responsibility for quality control.
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Human resources management
AgendaAgenda Definitions
Project scope management Time, quality, cost
Human resources management Information management
Risk management
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Human resources management
As project is performed by humans, Project management is human and organisation management.
• who decides ?• who is responsible on ?• who controls ?• who takes benefits of ?
Complex projects are based on complex organisations
Best skills for all complex tasks worldwide
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Human resources management
Airbus Company has been created to provide airplanesIt has been created from Aerospatiale, British Aerospace, CASA, DASA
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Human resources management
Is formalised in a Organisation Breakdown Structure (OBS)
A depiction of the project organization arranged so as to relate work packages to organizational unitsIt shows which work components have been assigned to which organizational units or persons.
Phase / Person A B C D E F …Requirements S R A P PFunctional S A P PDesign S R A I PDevelopment R S A P PTest S P I A P
Responsibility assignment matrix P = ParticipantA = AccountableR = Review requiredI = Input requiredS = Sign-off Required
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Sub-contracting requires internal resources for negociation and control.
Do not confuse : a subcontractor is not a partner
Subcontracting management
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Information management
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Some tools (1)
Ensure message storage ?Managing group lists ?Impossible to share large files
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Some tools (2)
annotation and correction of documents
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Some tools (3)
Powerpoint diapo conférence
Chats
Microsoft Netmeeting
Yahoo groups
Windows sharing, shared blackboard
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Extended entreprising information system
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ENTREPRISES INFORMATION SYSTEMS
Maintenance
Marketing Design Industrialisation Quality assurance
Commercial ProductionLogistics Quality
E.R.P.
P.D.M./P.L.M.
K.B.E. K. M.
C.R.M. S.R.M. A.P.S.M.E.S.
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Supplier
Orderer Sub-contractor B
Partner
Sub-contractor A
• deiversified technical products• multi-sites, multi organisation development and production• development under time constraints
• physical flows• information flows• financial flows• decision systems
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Space
TimeAsynchronousSynchronous
Sam
e lo
cati
onD
ista
nt
Internet, Intranet, PDM, PLM
Engineering et communication situations
Project location
Slides-conferenceVisioconference
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Organisations
Task 1
Task 2Task 3
Tasks, processus
Files and Documents
Systems ?
Information System
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Réseau de Paramètres
1
24
5
10
1214
15
Organisations
Task 1
Task 2Task 3
Tâches, processus
Files and Documents
Quels systèmes ?
Who is responsible on what?Configuration managezment
Link between parameters, functions,
items
Links between documents and assemblies and systems
Who do what ?Who has done what ?
Parameter :Physical valueUnitversiontolerance and gap….
Donneur d ’ordres
Partenaire rang 1
Equipementier
Sous traitant
Partenaire rang 1
Organisations, rôles au sein des projetsValue evolution
Value Evolution
Liens explicites entre paramètres, et objets
documentaires
ActionExécutionDécisionNotification
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Engineering change management
– Engineering Change management • Automatisation du traitement des "Change Process"
• S'assurer que toutes les étapes approbation/qualité ont été réalisées
– Document Review• Router automatiquement vers les "reviewers" (requis
ou optionnels)
• Gérer les approbations ou re-router pour révision
EC initialisation
EC Pre-feasibility studies
EC Impactsand feasibility
studies
Selection & Solution Definition
Associateddocumentation
up-date
New solutionnotification
New solutionembodiment
EngineeringChange Request(ECR)
Engineering ChangeProposal (ECP)
Solution to be implemented &Potential impacts assessedECO released
Solutionimplemented ¬ifiedDocumentationup-dated
ECR initialised
Potentialsolutionsdefined
Documentation up-dated
New solutionnotified
Stage 1: EC Proposal
Stage 2 : EC Investigation
Stage 3 : EC Embodiment
Notification
Files and Documents
Approva
l
Status evolution
Push of documents
Efficiency et Traçing
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Risk Management
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Project risk is an uncertain event or condition, that, if it occurs, has a positive or a negative effect on a project objective (cost, time, quality).
A risk has a cause and, if it occurs, a consequence.
In risk management, probability and impact (severity) of the risks are considered.
What is risk ?
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References
• Project Management Institute http://www.pmi.org/
• An example of students project http://192.168.41.10/~tollenaere/e-commerce/
• 2PLM lettre bimensuelle http://www.johnstark.com/xzxzx.html dernière édition sur http://www.johnstark.com/xzxzx.html
• PDM Information Center, http://www.pdmic.com/
• CIMdata, http://www.cimdata.com/
• PDM enablers de l’OMG http://www.omg.org/techprocess/meetings/schedule/PDM_RTF_1.5.html