Windows-1256 - Project Management-Summery

EF902-Project Work and Project Management
Project Management – Recap
Selim Alkaner, PhD, CEng, PMP
Department of Naval Architecture and Marine Engineering

Universities of Strathclyde and Glasgow
© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006
Project - Definition
A project is a
temporary endeavour
undertaken to create a unique
product or service.
(PMI, 1996)
Primary Project Objectives
Quality
Time Cost
© Dr.Selim Alkaner, NA-ME, 2004-2006

1
Project Life Cycle
Product Life Cycle
•Specify
•Idea •Design •Assess the
•Study •Develop benefit
•Trigger •Test •Use
•Change- •Scrap
•over
Project Life Cycle
Project Processes
Initiating Processes:
recognises that a project should begin
Initiating and commits to do so
Processes
Planning Processes:
devise and maintain a workable
scheme to accomplish the business
Planning needs that the project was undertaken
Processes to address
Executing Processes:
co-ordinate people and other
Executing Controlling resources to carry out the plan
Processes Processes
Controlling Processes:
ensure that project objectives are met
by monitoring and measuring progress
and taking corrective action when
Closing necessary
Processes
Closing Processes:
formalise acceptance of the project
(Ref: PMBOK, PMI, 1996)
and bring it to an orderly end
Overlap of Project Processes
(Ref: PMBOK, PMI, 1996)

2
What is Project Management?
Project Management is
the application of
knowledge, skills, tools, and techniques
to project activities
to meet or exceed stakeholder
needs and expectations
from a project.
(PMI, 1996)
Project Management
Knowledge Areas
(PMI)
Project Management Process

Project
Leadership Leadership
Develop
Project Announce
Statement
Project
Definition of Work
Project Create Perform Build Perform

Planning WBS Estimating Schedules Budgeting
Produce Project
Documentation Assemble Perform
Project & put Project Project Resource
Organisation Administrative Team Allocations
Activities in Place
Determine
how to get
back on track
N
Project Manage Track & Conduct
Controlling the Monitor Variance Re-planning?
Project Progress Analysis
Y
Determine
Where Make
Revisions are Revisions
necessary
Project Close
Closure Project

3
Project Scope Management

Scope Management
Project Scope Management includes the

processes required to ensure that the project
includes all the work required, and only the
work required, to complete the project
successfully (PMI).
Scope
Management
Initiation
Scope
Verification
Scope
Planning
Scope
Definition
Scope
Change
Control

4
Work Breakdown Structure (WBS)
WBS is a deliverable oriented hierarchical grouping of
project elements (products, tasks, and subtasks)
which organises and defines the total scope of the
project with no omissions and no duplicates.
Each descending level represents an increasingly

detailed definition of a project component.
Work not in the WBS is

outside the scope of the project!
Scope
Scope Verification Management
Scope verification is the process of

•Work results formalising acceptance of the project
•Product documentation
scope by the stakeholders.
It requires reviewing work products

and results to ensure that all were
•Inspection completed correctly and satisfactorily.
SV ≠ QC
Primary Focus
•Formal acceptance Quality Control:
correctness of the work results
Scope Verification:
acceptance of the work results
Project Human Resource

Management


5
Human Res.
Management
Team
Development
Organisational
Planning
[Ref: PMBOK, 1996]

Human Res.
Organisational Planning Management
•Project interfaces
Organisational planning involves
•Staffing requirements identifying, documenting, and
•Constraints assigning project roles,
responsibilities, and reporting
relationships. Roles, responsibilities,
and reporting relationships may be
•Human resource practices
•Organisational theory
assigned to individuals or to groups.
•Stakeholder analysis
OP is strongly linked with
Communications Planning since the
•Role & responsibility assignments project’s organisational structure will
•Staffing management plan have a major effect on the project’s
•Organisation chart
•Supporting detail
communication requirements.
Human Res.
Project Organisation Management
Project-based organisations are those whose

operations consist primarily of projects.
• Organisations that drive their revenue

primarily from performing projects for others,
• Organisations that have adopted
Management by Projects (Treats many
aspects of ongoing operations as projects in
order to apply project management to them).

6
Organisational Structures - Functional
[Ref: PMBOK, 1996]
The project is assigned to the functional unit that

has the most interest in ensuring its success or can
be most helpful in implementing it.
Organisational Structures - Project
[Ref: PMBOK, 1996]
Project becomes a self-contained unit with its own

technical staff, its own administration, tied to the
parent firm.
Organisational Structures - Matrix
[Ref: PMBOK, 1996]
Matrix type of organisation structure offers the

benefits of the project-type approach while retaining
technical experts of the functional-type.

7
Selecting an Organizational Form
Organizational Form Project Type Technology Type
Functional Large capital In-depth

investment
Matrix Integration of Reasonably

functional areas complex
Pure project Many similar projects Routine or highly

unique
Patterns of Project Management

Management by Crisis Management by Confusion
8 8
Management by Efficiency
Management by Drives and Effectiveness
8 9
Project Communications
Management


8
Communications Management
Project Communications Management
includes the processes required to ensure
timely and appropriate generation, collection,
dissemination, storage, and ultimate
disposition of project information.
Major Processes:
•Communications planning
•Information distribution
•Performance reporting
Comm’ns
Management
Administrative
Closure
Information
Distribution
Performance
Reporting
Communications
Planning
Project Time Management

(Scheduling)


9
Time
Management
Activity
Activity Sequencing Schedule
Definition Development
Activity
Duration
Estimating
Schedule
Control
Scheduling
The conversion of a project action plan into
an operating timetable
Serves as the basis for monitoring and controlling

the project
A major tool for the management of projects
Gantt Charts
JAN FEB MAR

1 8 15 22 29 5 12 19 26 5 12 19 26
• Advantages
– Easy to understand
– Easy to show progress and
status
– Easy to maintain
– Most popular view to
communicate project status
• Disadvantages
– Not always easy to see
precedence, relationships

10
Three Time (a, m, and b) Estimates
Example
Network Analysis Techniques

• Critical Path Method (CPM),
• Program Evaluation & Review
Technique (PERT),
• Graphical Evaluation & Review
Technique (GERT),
• Probabilistic Network Evaluation
Technique (PNET),

11
Project Cost Management

Cost
Management
Cost
Resource Budgeting
Planning Cost
Estimating
Cost
Control
Project Costs
• Direct costs
• Indirect costs
• Time related costs
• Labour costs
• Material and equipment costs
• Transport costs
• Project office costs
• Project team costs

12
Top-Down Budgeting
• Based on managerial judgment, and
historical data
• History can include actual costs from similar
projects, adjusted for differences and for
inflation
• Start at the top, and allocate down through
the WBS
Bottom-Up Budgeting
• Starts at the bottom of the WBS, with the
people who do the work
• Then costs are aggregated upward
• Overhead, project reserves, and profit have
to be added in
Learning Curve
1000 Unit Labor hours

Labour-hours per unit
req’d for
80% Slope that unit
800
1 1000
640 2 800
4 640
512
8 512
Learning Rate: 80%
1 2 4 8
Cumulative Units

13
Earned Value Analysis
Earned Value is a method for measuring project performance.
It compares the amount of work that was planned with

what was actually accomplished to determine
if cost and schedule performance is as planned.
Cost Reporting Cost Control

Consists of accumulation and Represents the use of these
processing of data on the costs data in a proactive way to
and commitments as defined by control and direct the destiny of
the contract and implemented the project and thus to effect
through project decisions, control over the expenditures
design, procurement and the ultimate overall cost of
commitments, labour reports, the work.
sub-contracts, and other project
documents. Proactive!
Passive and historical!
Project Performance – The “S-Curve”

Project Performance for Month: 6
Time now
24000
Budget (£) = 14400
Budget (BCWS)
19200
Earned Value (£) = 10000
(BCWP)
14400
Cost (£)
Cost Actual Cost (£) = 15000

Actual Cost Schedule Variance
Variance (ACWP)
9600 Cost Variance (£) = -5000
Earned Value (BCWP-ACWP)
4800 Cost Variance (%) = -50

(CV/BCWP)
0 Schedule Variance (£) = -4400

0 1 2 3 4 5 6 7 8 9 10 (BCWP-BCWS)
Time (month) Schedule Variance (%) = -0.31

(SV/BCWS)
BCWS BCWP ACWP
Cost Performance Index (CPI) = 10000/15000 = 0.67

(BCWP/ACWP)
Schedule Performance Index (SPI) = 10000/14400 = 0.69

(BCWP/BCWS)
Resource Planning


14
Resource
Planning
Activity
Sequencing
Resource
Planning
Resource Planning
Resource Planning involves determining

what physical resources (people, equipment, materials) and
what quantities of each should be used
to perform project activities.
It must be closely coordinated with cost estimating!
Cost Estimating:
developing an approximation (estimate) of the costs of the resources needed
to complete project activities.
Crashing - Example (Cost-Duration)
[Ref: Meredith & Mantel, 2003]

15
Resource Levelling
b
b
b
bbb
b A The schedule requires too
bb
bb
many men in week 4.
B
b D
E
Tasks need to be arranged in
order to “level” the resources.
bb
b b b F
C
G
1 2 3 4 5 6 7 week
7-
6-
5-
4-
b
bbb
b
Men Available
3-
2-
1-
1 2 3 4 5 6 7 week
Why Projects Fail?

Projects…
• fail to meet the user’s minimum requirements
• implemented too late to be effective
• exceed its development or operational budget by
an acceptable amount
Project Risk Management


16
Risk
Management
Risk
Risk
Risk Response
Identification
Quantification Development Risk
Response
Control
Risk Management
Project risk management includes

the processes concerned with identifying,
analyzing, and responding to project risk.
It includes maximising the results of positive events

and minimising the consequences of adverse events.
Major processes are:
– Risk identification
– Risk quantification
– Risk response development
– Risk response control
Risk
Risk Identification Management
Risk Statement: specifies the cause of the concern as well as its impact.
Given the <condition> there is a possibility that <consequence> will occur.

Sources of risk
•Potential risk events
•Risk symptoms
•Inputs to other processes
What is currently Intermediate and long-term

causing concern? impact of the risk

17
Risk Register – Sample Format
No. Description of Likelihood (L) Impact (I) Risk Rating Mitigation

Risk 0 (low) - 3 (high) 1 (low) – 3 (high) (L) x (I)
1 Poor cash flow 1 3 3
2 Late delivery 2 3 6
3 Multi-office input 2 1 2
PM’s technical
4 2 2 4
skills
[…] […] […] […] […]
Effective Risk Management
Identify Analyse Prioritise Risk

Uncertainties Risks Risks Assessment
Risk
Management
Measure Risk
Mitigate Plan for
and
Risks Emergencies Control
Control
What we anticipate seldom occurs;

what we least expected generally
happens.
Benjamin Disraeli, British politician (1804 - 1881)

18

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EF902-Project Work and Project Management

Project Management – Recap

Selim Alkaner, PhD, CEng, PMP

Department of Naval Architecture and Marine Engineering

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

Primary Project Objectives

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr.Selim Alkaner, NA-ME, 2004-2006

Product Life Cycle

Project Life Cycle

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

Overlap of Project Processes

(Ref: PMBOK, PMI, 1996)

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr.Selim Alkaner, NA-ME, 2004-2006

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

Project Management Process

Project Create Perform Build Perform

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr.Selim Alkaner, NA-ME, 2004-2006

Project Scope Management

Selim Alkaner, PhD, CEng, PMP

Department of Naval Architecture and Marine Engineering

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

Project Scope Management includes the

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr.Selim Alkaner, NA-ME, 2004-2006

Each descending level represents an increasingly

Work not in the WBS is

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

Scope verification is the process of

It requires reviewing work products

EF902-Project Work and Project Management

Project Human Resource

Selim Alkaner, PhD, CEng, PMP

Department of Naval Architecture and Marine Engineering

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr.Selim Alkaner, NA-ME, 2004-2006

[Ref: PMBOK, 1996]

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

Project-based organisations are those whose

• Organisations that drive their revenue

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

© Dr.Selim Alkaner, NA-ME, 2004-2006

[Ref: PMBOK, 1996]

The project is assigned to the functional unit that

Organisational Structures - Project

[Ref: PMBOK, 1996]

Project becomes a self-contained unit with its own

© Dr. Alkaner, NA-ME, Universities of Glasgow and Strathclyde, 2004-2006

Organisational Structures - Matrix

[Ref: PMBOK, 1996]

Matrix type of organisation structure offers the

© Dr.Selim Alkaner, NA-ME, 2004-2006

Organizational Form Project Type Technology Type