Engineering Project Management

1
Engineering Project Management
ENG M 530 - Lecture No. 2
Project Initiation and Planning Processes

• By
• Sami Fahmy, Ph.D, P. Eng., PMP

2
Agenda

• Develop Preliminary Scope Statement
• Develop Project Charter
• Team Activity
• Introduction to Planning
• Scope Planning
• Scope definition
• Create work Breakdown Structure
• Team Exercise

3
Project Management Process
Initiation Process G.
Planning Process G.
Monitoring Controlling Process G.
Execution Process G.
Closing Process. G
4
1. Develop Scope statement

• First attempt to address the scope of work
• Ensure that the sponsor and the project manager
  are talking about the same thing
• Make it as comprehensive as you can at this time
• How to do it

5
1. Develop Scope Statement

• Project Scope Statement includes
• Project and product objectives
• Product or service requirements
• Characteristics Product acceptance criteria
• Initial WBS
• Project boundaries
• Project requirements and deliverables
• Project constraints
• Project assumptions
• Order of magnitude cost estimate
• Project configuration management
• Approval requirements

6
Develop Project Charter

• Contract
• External Customer
• Initiating document
• Legal and binding

7
Develop Project Charter

• Project Statement of Work (SOW)
• It is a narrative description of products or
  services to be supplied by the project.
• Internal projects
• External projects
• Indicate two key information
• Business need
• Product scope description

8
Expert Judgment

• It is used to assess the inputs needed to develop
  the project charter.
• Other units within the organization
• Consultants
• Stakeholders, including customers or sponsors
• Professional and technical associations
• Industry groups

9
Project Charter

• A document that
• formally authorizes a project
• Provides the project manager with the authority
  to apply organizational resources to project
  activities
• Issued by the project sponsor/Initiator

10
Project Charter includes

• Business needs, high-level project description
• Project purpose or justification
• Requirements that satisfy customer, needs, wants
  and expectations
• Assigned PM and authority level
• Summary milestone schedule
• Stakeholder influences
• Functional organization and their participation
• Organizational, environmental and external
  assumptions
• Organizational, environmental and external
  constraints
• Business case justifying the project, including
  return on investment Summary budget.

11

• Project Implementation
• Planning

12
Planning

• The plan
• establishes the project management teams
  interpretation
• of the
• when, what, who, how much
• and
• how of the project

13
Know the Difference

• Planning
• How to execute the project
• It covers what to be done
• General approach to start with

• Scheduling
• Use calendar to indicate when
• Consider resources availability
• Schedule is part of the plan
• You need a plan to do a schedule.

14
Know the Difference

• Planning
• Plans, assist the Project Manager in getting
  things done.
• Plans improve performance
• Done before execution.

• Forecasting
• Predict the outcome of the plan.
• It is an indication of performance. It does
  not improve performance. Done to predict
  execution results.
• Validity and reliability increases with good
  planning.

15
Planning Process group
16
Project Management Group Processes
Initiation Process G.
Planning Process G.
Monitoring Controlling Process G.
Execution Process G.
Closing Process. G
17
1. Scope Planning Processes
Information Required
Deliverable

• Expert Judgment
• Templates, forms
• and standards

Tools Techniques
Project Charter Prelim. Project Scope
Strategy
Project Scope Management Plan
18
Scope Planning

• It is the process necessary to create a project
  scope management plan on
• how the project will be defined, verified and
  controlled, and
• how the WBS will be created and defined

19
Scope Planning Input

• Preliminary Project Scope Statement
• Define the projects characteristics and its
  boundary
• Document the first basic understanding of the
  project

20
Scope Planning Tools Techniques

• Expert Judgment
• Relates how equivalent projects have managed the
  scope. Example
• Industry group
• Professional and technical associations
• Consultants
• Other units of the organization

21
Project Scope Management Plan

• A document that will provide guidance on how to
• Prepare detailed scope statement
• Create WBS
• Obtain formal verification and acceptance
• Process the requests for changes, and
• Integrate changes into project
• The document is part of the project management
  plan. It can be formal or informal.

22
2. Scope Definition Process

• It is the process of developing a detailed
  scope statement
• Emphasis the creation of written scope
  statement document
• needs a great deal of attention to ensure
  accuracy.
• Consider the 5 Cs, clear, complete, correct,
  concise and consistent

23
2. Scope Definition Processes
Tools Techniques 1. Product Analysis 2.
Alternative Identification 3. Expert
Judgment 4. Stakeholders Analysis
Project Charter Prelim. Scope Strategy Project
Scope Mgmt. Plan
Project Scope Statement
24
Impact of Scope Definition

• Basis for future project decisions
• Improve accuracy of resources, time and cost
  estimating for the project
• Define if the project or phase has been completed

25
Scope Definition Tools Techniques

• Product Analysis
• There are methods employed to translate project
  objectives into tangible deliverables. Example
• Product breakdown
• System analysis
• Function analysis
• System engineering or value engineering, value
  analysis

26
Scope Definition Tools Techniques

• Alternative Identification
• It is a technique used to generate different
  approaches to execute or perform the work.
  Example
• Brainstorming
• Lateral thinking

27
Scope Definition Tools Techniques

• Expert Judgment
• Definition
• Who
• How
• Each application area has its expert judgment to
  help develop the scope of work

28
Scope Definition Tools Techniques

• Stakeholder Analysis
• A technique used to identify the influence and
  the interests of various stakeholders by
• Identifying their needs, wants and expectations
• Then select, prioritize and quantify them.
• Stakeholders interests may positively or
  negatively impact the projects execution and
  completion.

29
Project Scope Statement

• A document that will describe in detail, the
  project deliverables and the work required to
  create these deliverables. It should include
• Project objectives
• Project requirements
• Schedule milestones
• Expected overall costs

30
Project Scope Statement

• It provides a common understanding of the project
  scope
• It forms the basis of agreement among projects
  team
• Used as a basis for future decisions
• It guides the project teams work during
  execution
• It helps control project scope
• Project objectives, product description, project
  requirements

31
Detailed Project Statement

• It should include the following
• Project objectives or deliverables
• Project boundaries
• Product description and acceptable criteria
• Project constraints and assumptions
• Initial project organization
• Initial defined risks
• Cost estimate and funding limitation and
  approvals
• Project configuration management
• Project schedule milestones

32
3. Create Work Breakdown Structure

• It is the process of decomposing the work to be
  executed by the project team into
  deliverable-oriented hierarchical structure.
• It defines the total scope of work
• It is an outline of the work to be done

33
Create WBS Processes

• Tools Techniques
• 1. WBS Template
• Decomposition

Project Scope Statement Project Scope Mgmt. Plan
WBS
34
Create WBS Inputs

• Project scope statement
• Project scope management plan

35
Create WBS (Tools Techniques)

• WBS Template
• Specific to industry, application area, and
  organization
• Use with caution
• Saves time and effort
• Review PMI Practice standards for WBS

36
Create WBS (Tools Techniques)

• Decomposition
• It is the subdivision of project deliverables
  into smaller, more manageable components until
  the work and deliverables are defined to work
  package level
• Time consuming
• Start from scratch

37
WBS Levels
Level 0 Level 1 Level 2 Level 3 Level
4 OR Level 5
38
Approaches to Creating WBS

• Analogy approach
• Top down approach
• Bottom Up approach
• Mind mapping approach

39
Decomposition Steps

• Identify the deliverables and related work
• Subdivide the work for each deliverable into its
  fundamental component.
• WBS components represent verifiable products,
  services, or results.

40
Create WBS Outputs

• Work Breakdown Structure
• It is a deliverable oriented grouping of project
  element that organizes and defines the total
  scope of the project.
• Task oriented family tree of activities which
  provide the basis for developing the scope
  definition cost control system and detailed
  schedule

41
Characteristics of WBS

• Work should only appear in one place in the WBS
• The work content of any item is the sum of what
  is included under that work item
• WBS must be consistent with the way the project
  will be performed and controlled
• Must be easy to update

42
Characteristics of WBS

• It is the scope baseline
• Helps the project team understand their role and
  the project
• Scheduling and costing tool
• Determine HR and communication needs for the
  project
• Reporting
• Cost control tool
• Decision making tool

43
Work Package

• It is the planned work contained within the
  lowest level of the WBS components
• Work package allows the project team to
• Produce a schedule
• Provide accurate cost estimating
• Monitor the progress
• Control project cost