Mechanics of Project Management

SECTION THREE Mechanics of Project
Management
Real World Project Management

© Instructing.com, LLC
Joseph Phillips
PMP, PMI-ACP, Project+, PSM, ITIL, CTT+
(c)Instructing.com, LLC 1
SECTION OVERVIEW
Authorizes the project and project
manager
Authorized external to the project
DEVELOP
Appropriate power
PROJECT
Portfolio Steering Committee CHARTER
Usually once, can be multiple points in
project
DEVELOPING THE PROJECT CHARTER
Project purpose
Measurable project objectives
High-level requirements
Overall project risk
Summary milestone schedule
Preapproved financial resources
DEVELOPING THE PROJECT CHARTER
Key stakeholders
Approval requirements
Exit criteria – close or cancel
Assigned project manager
Sponsor
Anticipation Assistance
Location Timing
PREPARING
YOUR PROJECT
Precautions Rewards
Formal project definition document
Not a contract
STATEMENT OF
WORK
Tool for clarifying responsibilities
and relationships among project
stakeholders
Defined Purpose
Statement of Scope
Project Deliverables
Goals and Objectives
STATEMENT OF SWOT
WORK Cost and Schedule Estimates

List of Stakeholders
Authority Levels
Assumptions and Agreements
Communication Plan
Purpose Scope Project
Statement Statement Deliverables
Project Goals Project Tasks Stakeholders

STATEMENT OF
WORK: OPTIONS
Chain of Assumptions Communication
Command and plan
Agreements
Project Planning
Worksheet: the Name of project
basics
PLANNING THE Brief description

and overall
Project Number
(if applicable)
PROJECT WORK benefits
Priority Rating (if Request Date

applicable)
Project Planning
Worksheet: schedule Time targets
management
What are the primary

objectives of the What are the PLANNING THE
PROJECT WORK
project? secondary objectives?
Milestone descriptions How will you plan your

and dates time so you can still get
your other work done?
Project Planning Worksheet:
cost controls
Budget or estimate
Cost milestones and dates
Financial benefits to be
obtained
Costs included
How do you plan to keep
time or dollar
costs under control?
PLANNING THE PROJECT WORK
PLANNING THE PROJECT WORK
Project Planning Worksheet: expected results
Specific objectives/results expected in order of importance
Are there any constraints?
Triple constraints
Plan for control of results
Plan to minimize risks
Scope management plan: how the scope will be defined,
developed, monitored, controlled, and validated
PROJECT Requirements management plan: how the requirements will

be analyzed, documented, and managed
MANAGEMENT Schedule management plan: criteria and the activities for
developing, monitoring, and controlling the schedule
PLAN Cost management plan: how the costs will be estimated,
COMPONENTS structured, and controlled

Quality management plan: how an organization´s quality
policies, methodologies, and standards will be implemented
in the project
Resource management plan. Provides guidance on how
project resources should be categorized, allocated,
managed, and released.
PROJECT Communications management plan. Establishes how, when,

and by whom information about the project will be
administered and disseminated.
MANAGEMENT Risk management plan. Establishes how the risk management
PLAN activities will be structured and performed.

Procurement management plan. Establishes how the project
COMPONENTS team will acquire goods and services from outside of the
performing organization.
Stakeholder engagement plan. Establishes how stakeholders
will be engaged in project decisions and execution,
according to their needs, interests, and impact.
Scope baseline. The approved version of a scope
statement, work breakdown structure (WBS), and its
PROJECT associated WBS dictionary, which is used as a basis
for comparison.
MANAGEMENT Schedule baseline. The approved version of the
PLAN schedule model that is used as a basis for comparison
to the actual results.
COMPONENTS Cost baseline. The approved version of the time-
phased project budget that is used as a basis for
comparison to the actual results.
Change management plan
PROJECT Configuration management plan
MANAGEMENT Performance measurement baseline
PLAN Project life cycle
COMPONENTS Development approach

Management reviews
WHAT REALLY One of the toughest challenges is to identify all the
activities
NEEDS TO BE Sequence activities
DONE? Don’t worry about sequencing in

perfect order right at the start
Use sticky notes and write
every activity or task down.
WHAT REALLY When you think you have

NEEDS TO BE identified every task, start
trying to put them in order.
DONE?
It can be a lot more fun to do
it as a group.
Case Study Backfill Clear land Construct Consult
foundation frame architect
Install
WHAT REALLY Excavate Grade land Install doors

and windows electrical
wiring
Install floors
NEEDS TO BE Install heating Install

insulation
Install interior
and exterior
trim
Install
plumbing Landscape
DONE? Lay-up
masonry
exterior
Obtain bank
loan
Obtain
building
permit
Paint doors
and windows
Paint walls
and trim
Pour concrete Purchase Put up wall Roof house Sheath house

foundation materials board
Task Resources Needed
Consult architect o Architect
o Me (Pete)
WHAT REALLY Obtain bank loan o Bank manager
NEEDS TO BE o Me
DONE? Obtain building permit o City construction manager
o Me
Sample Resource List
Clear land o General contractor
o Five construction workers
o Backhoe
o Excavator
o Dump truck
How far do you go?
WHAT REALLY
NEEDS TO BE Depth depends on the project
DONE?
If you will need to purchase the
materials, then you should list all the
materials required so that they can
be included in your budget.
Resource Description Cost Availability
Pete Perfect Home builder $20/hour 24 hours/day
Mark Monson General contractor $45/hour 10 hours/day
Steve Smith Construction Worker 1 $15/hour 8 hours/day
Sarah Anderson Construction Worker 2 $15/hour 8 hours/day
Omar James Plumbing sub‐contractor $35/hour 5 hours/day from
February 2‐5
8 hours/day from
February 5‐10
WHAT REALLY NEEDS TO BE DONE? Sample Cost List (Excerpt)
People
Pete Perfect (Home builder)
PEOPLE ARE Mark Monson (General contractor)
RESOURCES: Steve Smith and Sarah Anderson

LABOR COSTS (Construction workers)
Three additional construction workers
Omar James (Plumbing sub-contractor)
No one works for free!
PEOPLE ARE Although Pete isn’t getting paid, we have included a
cost for him as he will be taking unpaid time off work.
RESOURCES: Don’t assume salaried staff works for free.
LABOR COSTS Pro-rated hourly amounts will help you work out your
resource costs.
Bank manager
PEOPLE ARE City construction manager

Roofing sub-contractor
RESOURCES: Electrical sub-contractor
LABOR COSTS Masonry sub-contractor
Landscaping sub-contractor
Construction Equipment
Dump truck
Cement mixer
Excavator
Backhoe
EQUIPMENT AND FACILITIES
WORK A Work Breakdown Structure takes the milestones and
breaks them down.
BREAKDOWN The idea of a Work Breakdown Structure is to break
STRUCTURE larger milestones down into smaller components
MILESTONE CHART
Up triangle is planned
Down triangle is actual
Line between shows variance
Milestone JAN FEB MAR APR MAY JUN
Permits
Foundation
Framing
Electrical
Plumbing
Milestones
WORK Milestones signify a key accomplishment in your project
BREAKDOWN They are markers for summarizing work that has been
done, not individual tasks
STRUCTURE Milestone chart or calendar is
posted for everyone to see
THE WORK
BREAKDOWN
STRUCTURE
Sample Work Breakdown Structure
MULTIPLE PAST PROJECTS
APPROACHES TO
HOW TO TIME ESTIMATING
ESTIMATE TIME
DEADLINE RESOURCE
AVAILABILITY
Bottom-up
Requires WBS
DEFINITIVE
ESTIMATE Estimate duration of each activity
Most accurate, longest to create
ANALOGOUS Analogy to past projects
Historical information
ESTIMATING Top-down estimating
Parameter for tasks
Repetitive tasks
4 hours per fixture x 1,000 fixtures

PARAMETRIC
ESTIMATING
Learning curve
Efficiency and productivity
PERT: SCHEDULING TECHNIQUES
Formula for Estimating Time
To 4Tm Tp
TRIANGULAR: SCHEDULING TECHNIQUES
Formula for Estimating Time
To Tm Tp
3
ASSIGNMENT: ESTIMATING DURATION
What approaches do you use to estimate time?
What if you’ve never done a project like this before?
What qualifiers can you add to your estimate type?
Consider a new project and management wants a quick estimate. What should you do?
Everyone participates in creating the schedule
Scheduling conflicts can be immediately

resolved
SCHEDULING Team members understand who will be
TECHNIQUES depending on whom
Team members can adjust start/delivery dates
Everyone understands the big picture
Gathering Resources
Schedules of people
Schedules for who will be working
SCHEDULING materials and

resources
on the project,
including outsourced
vendors
TECHNIQUES
Other projects that
team members are Vacation time for
involved in that may staff on the project
conflict with this
project
DEADLINES
Project deadline
Phase deadlines
Business cycles
Holidays
Murphy’s Law: “If something can go
wrong, it will.”
MANAGEMENT Management reserve time is the cushion

you build into projects so you can
RESERVE: accommodate the unexpected
SCHEDULING Many projects build in a 10-15%

TECHNIQUES contingency
Parkinson’s Law
PROJECT MANAGEMENT
INFORMATION SYSTEM
Microsoft Project
Primavera
Basecamp
Wrike
PMIS: SCHEDULING TECHNIQUES
GANTT CHART
Green is completed work

Red is work to-do
Length of bar shows duration
No resources – progress only
Burning down the number of
tasks per iteration or per
project
Shows ideal and actual
effort by project team
Usually in Agile projects
BURN DOWN CHART
SCHEDULING Critical path
No activity can be delayed
APPROACHES Float allows an activity to be delayed
PROJECT NETWORK DIAGRAM
4 6 9 10 2 11
B E 15 3 17
Duration 7 3 12 13 3 14 H
Early start Early finish
15 0 17
1 3 3 4 7 10 11 4 14 18 3 20 21 2 22
A C F J K
1 0 3 4 0 10 11 0 14 18 0 20 21 0 22
Late start Late finish

4 9 12 13 1 13 14 6 19
D G I
5 1 13 14 1 14 15 1 20 ABEHJK = 19 days
ACFHJK = 22 days
ADGIK = 21 days
Action Planning Worksheets
Same type of projects over and over

SCHEDULING
TECHNIQUES Only the steps required to complete a
project
Modify according to your project
SCHEDULING FACTORS
Lead time
A B
A B
SCHEDULING FACTORS
Lag time
A B
A B
Crashing
SCHEDULING
FACTORS
Fast tracking
BUDGETING TIPS AND TRICKS
Most projects run on tight budgets
Ideally, you will control the budget
Budget: actual allotment of monies to project
RESOURCE REQUIREMENTS COST
Direct Costs
Attributed directly to the project work and cannot
be shared among projects. Travel, materials.
Indirect Costs
Shared to more than one project
Facilities, project management software
licenses.
Resources Variable Costs

Vary based on conditions in the project
Number of meeting participants, supply
and demand of materials.
Fixed Costs
Constant throughout the project. Rented
equipment, fixed-price consultant.
COST PERFORMANCE BASELINE
Actual Costs
Cumulative Values
Step Funding
Requirements
Cost Baseline
Expenditures
Time
Gathering Information
Make sure you have answers to these questions:
 Who controls the budget?
 Can you get some signing authority?
 Do you control petty cash?
Establishing a reliable budget is the most difficult task
Management personnel will rarely accept your budget
Document and negotiate what you really need
Task Labor Overhead Materials Rental Total
Fees
BUDGETING TIPS
AND TRICKS TASK TOTAL
Sample Template
OTHER COSTS
Emergency Fund
Project Rewards
GRAND TOTAL
Variable sampling: results
rated on a continuous scale
that measures the degree of
conformity
Tolerances: specified range
of acceptable results
Control limits: identify the
boundaries of common
variation in a statistically
stable process or process
performance
QUALITY MANAGEMENT TERMS
STANDARDS AND
REGULATIONS
Standards are optional
Regulations are requirements
TYPES OF QUALITY COSTS
PREVENTION APPRAISAL FAILURE

Quality assurance: Quality control: Internal failure:
Deliver the exact Cost of measuring, testing, Scrap and rework.
project scope and the auditing, and evaluating External failure:
expected quality. Time for testing Loss of sales, loss of
Examples: training, customers, downtime, and
safety measures, and damage to reputation.
right tools and
equipment.
Control quality: Poor results need
results are root-cause
analysis
monitored for Quality control is
quality standards inspection-driven
QUALITY Managing quality: QA maps to an

organization’s
MANAGEMENT performance must

meet quality
quality policy
QA is typically a
managerial
PLAN standards process
Quality Improvements
improvement: depend on
quality
corrective actions philosophy of the
organization
improve the project
Quality standards
Quality objectives
QUALITY Roles and responsibilities
MANAGEMENT Deliverables and processes subject to quality review

Quality control and quality management activities
PLAN Quality tools
Dealing with nonconformance, corrective actions
procedures, and continuous improvement procedures
Monitor and measure project
results
Root-cause analysis is part
of quality control
Root-cause analysis
determine the cause
Apply corrective actions
QC occurs throughout the life
of a project
CONTROLLING QUALITY IN A
PROJECT
Product and the project
CONTROLLING Project management processes
QUALITY Measures performance, scheduling, and cost
Management of the project should be of quality
INSPECTING
RESULTS
Reviews
Product reviews
Audits
Walkthroughs
CAUSE-AND-EFFECT CHARTS
Cause Cause Cause
Contributing Cause Contributing Cause
Effect
Contributing Cause
Cause Cause Cause
EXAMINING A CONTROL CHART
Rule of Seven
Non-random
Upper Spec
Upper Control Limit
Mean
Lower Control Limit
Lower Spec
Assignable Cause
Out of control
CREATING PARETO DIAGRAMS
100%
75%
Total Number of Failures
50%
25%
10%
Interface
Tractor
Skills
USB
60
50 CREATING A
40 HISTOGRAM
30
20
10
SECTION WRAP

Mechanics of Project Management

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SECTION THREE Mechanics of Project

Real World Project Management

Measurable project objectives

Overall project risk

Summary milestone schedule

Preapproved financial resources

Exit criteria – close or cancel

Assigned project manager

WORK Cost and Schedule Estimates

Project Goals Project Tasks Stakeholders

PLANNING THE Brief description

Priority Rating (if Request Date

What are the primary

Milestone descriptions How will you plan your

PROJECT Requirements management plan: how the requirements will

COMPONENTS structured, and controlled

PROJECT Communications management plan. Establishes how, when,

PLAN activities will be structured and performed.

PLAN Project life cycle

COMPONENTS Development approach

DONE? Don’t worry about sequencing in

WHAT REALLY When you think you have

WHAT REALLY Excavate Grade land Install doors

NEEDS TO BE Install heating Install

Pour concrete Purchase Put up wall Roof house Sheath house

WHAT REALLY NEEDS TO BE DONE? Sample Cost List (Excerpt)

Pete Perfect (Home builder)

PEOPLE ARE Mark Monson (General contractor)

RESOURCES: Steve Smith and Sarah Anderson

Three additional construction workers

Omar James (Plumbing sub-contractor)

PEOPLE ARE City construction manager

EQUIPMENT AND FACILITIES

Sample Work Breakdown Structure

Most accurate, longest to create

4 hours per fixture x 1,000 fixtures

Efficiency and productivity

Scheduling conflicts can be immediately

SCHEDULING Team members understand who will be

TECHNIQUES depending on whom

Team members can adjust start/delivery dates

Everyone understands the big picture

SCHEDULING materials and

MANAGEMENT Management reserve time is the cushion

SCHEDULING Many projects build in a 10-15%

Green is completed work

BURN DOWN CHART

Late start Late finish

Same type of projects over and over

Modify according to your project

Resources Variable Costs

QUALITY MANAGEMENT TERMS

PREVENTION APPRAISAL FAILURE

QUALITY Managing quality: QA maps to an

MANAGEMENT performance must

PLAN standards process

QUALITY Roles and responsibilities

MANAGEMENT Deliverables and processes subject to quality review

Contributing Cause Contributing Cause

Contributing Cause Contributing Cause

Cause Cause Cause

Upper Control Limit

Lower Control Limit