Principles of Project Management

1
Principles of Project Management

• How to help make your projects more successful

2
Why Project Management?

• Learn from lessons, success, and mistakes of
  others
• Better understanding of financial, physical, and
  human resources
• Successful Project Management Contributes to
• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Improved productivity
• Project Management Generally Provides
• Better internal coordination
• Higher worker morale

3
Why Projects Fail

• Communications
• Misunderstandings
• Not Talking, Emailing etc.
• Scope Creep
• Poor planning
• Weak business case
• Lack of management direction involvement
• Lack of Resources
• Talking and Not Building
• Incomplete specifications
• Excessive Specifications
• Mismanagement of expectations

4
Project Management Benefits for the Individual

• Develops leaders in organization with a detailed
  understanding of multiple areas of the
  organization
• Cross departmental communication and networking
• Benefits not limited to just the Project
• Manager, Team members get same exposure
• Attention from executive management team
• Reputation of being a team player, problem
  solver, and a get things done person

5
Organization

• Lectures
• Presentations
• Book Chapters
• And Discussions!
• Sample Projects
• Plan, Schedule and Allocate Resources
• Review
• Practice Tests
• Joint Attempt At Questions
• http//www.yancy.org/research/project_management.h
  tml

6
Lectures

• 1 - Introduction to Project Management
• 2 - Project Management Context
• 2- Project Management for Dummies - Summary
• 3 - Project Management Integration
• 4 - Project Scope Management
• 5 - Project Time Management
• 6 - Project Cost Management
• 7 - Project Quality Management
• 8 - Project Human Resource Management
• 9 - Project Communications Management
• 10 - Project Risk Management
• 11 - Project Procurement Management
• 12 - Project Management as a Profession

7
Sources Use the Web

• Project Management Institute www.pmi.org
• Project World www.projectworld.com
• Software Program Managers Network www.spmn.com
• PM forum www.allpm.com
• ESI International www.esi-intl.com
• Project Bailout www.ProjectBailout.com
• Project Management for Dummies
• Project Planning Scheduling Control, James P.
  Lewis
• A Hands-on Guide to Bringing Projects in on time
  and On Budget

8
Why are you here?

• Who are you
• What is your background?
• Why
• What do you want to learn?
• How much effort?
• Me
• Jim Bullough-Latsch, jbl_at_ProjectBailout.com
• 20 years managing projects, 818-993-3722
• All material will be provided on a CD!
• Sign In, Email Addresses etc.
• Exchange Business Cards

9
Mapping Lectures and Lewis Book

• Introduction to Project Management
• Chapter 1 Introduction to PM
• Project Management Context
• Chapter 5 Headless Chicken
• Project Management Integration
• Chapter 6 Project Strategy
• Chapter 7 Implementation Plan
• Project Scope Management
• Chapter 9 Scheduling
• Project Time Management
• Project Cost Management
• Project Quality Management
• Project Human Resource Management
• Project Communications Management
• Project Risk Management
• Chapter 8
• Project Procurement Management
• Project Management as a Profession
• Chapter 3

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CHAPTER 1

• Introduction to Project Management

11
PM is used in all industries, at all levels
12
Why Project Management?

• Better control of financial, physical, and human
  resources
• Accountability
• Learn from mistakes of others!
• Improved customer relations
• More Managed Outcomes
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale

13
Why Projects Fail

• Poor communications
• Scope Creep
• Poor planning
• Weak business case
• Lack of management direction involvement
• Incomplete specifications
• Mismanagement of expectations

14
Project versus Program

• What is a project?
• Temporary and unique
• Definite beginning and end
• Unique purpose
• Require resources, often from various areas
  involve uncertainty
• Note temporary does not mean short in duration
• What is a program?
• A group of projects managed in a coordinated way
  to obtain benefits not available to managing them
  individually
• Long Term for a collection of projects
• Same Techniques Work for Projects, Products,
  Programs!
• Use them where they work!

15
Triple Constraints Theory

• Every project is constrained in different ways by
  its
• Scope goals What is the project trying to
  accomplish?
• Time goals How long should it take to complete?
• Cost goals What should it cost?
• It is the project managers duty to balance these
  three often competing goals

16
Project Management Framework
17
Project Stakeholders

• Stakeholders are the people involved in or
  affected by project activities
• Stakeholders include
• the project sponsor and project team
• support staff
• customers
• users
• Suppliers and vendors
• opponents to the project

18
PM Knowledge Areas

• Knowledge areas describe the key competencies
  that project managers must develop
• core knowledge areas lead to specific project
  objectives (scope, time, cost, and quality)
• facilitating knowledge areas are the means
  through which the project objectives are achieved
  (human resources, communication, risk, and
  procurement management
• knowledge area (project integration management)
  affects and is affected by all of the other
  knowledge areas

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Relationship to other disciplines
20
PM Tools Techniques

• Project management tools and techniques assist
  project managers and their teams in various
  aspects of project management
• 1 communicating with people!!
• Some specific ones include
• Project Charter and Work Breakdown Structure
  (WBS) (scope)
• Gantt charts, network diagrams, critical path
  analysis, critical chain scheduling (time)
• Cost estimates and earned value management (cost)

21
Sample GANTT Chart
22
Sample Network Diagram
23
Sample Earned Value Chart
24
Points From Lewis Chapter 1

• A project is a one-time job, as opposed to a
  repetitive activity
• Disagree, can make repetitive into a series of
  projects
• Project management is facilitation of the
  planning, scheduling, and controlling of all
  activities that must be done to meet project
  objectives.
• ???????????
• Principle Can assign values to only three of the
  PCTS constraints
• Performance, Cost, Time, Scope
• Disagree - There are relationship, but it is not
  magic
• Principle To reduce both cost and time in a
  project, must change the process by which you do
  work.
• Maybe Understand and control is better than
  change

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Lewis Principles Chapter 1

• Principle Improving quality reduces costs.
• Partially Agree
• Controlling quality contributes to controlling
  cost
• Bugs / Errors Cost Money
• Formal QA Organizations can be negative
• Good Project Management includes tools, people,
  and systems
• Tools are not very important!
• The people who must do the work should develop
  the plan
• Disagree The people who do the work should
  contribute to the plan, but some project
  management is needed to focus the effort.
• The Thought process can be applied to any project
  regardless o type or size
• Agree

26
Lewis Method Five Phases

• Definition
• Planning Strategy
• Implementation Planning
• Execution and Control
• Lessons Learned
• I have only worked at one company that practiced
  this, TRW called it a debriefing or post mortem
• Usually everyone is gone prior to the completion!

27
Projects for Homework

• Sample Project
• Plan, Schedule, and Presentation
• Develop a brief project plan and top-level
  schedule (MS Project is preferred).
• Effort at Each Session
• Discuss Concepts
• Assign Teams, Choose Subject, Divide work
• You can do home work to make it better
• Plan and Document
• Schedule
• Coordinate
• Keep it simple
• Present for Review
• Criticize Others
• Update
• Project Can Be Anything
• Suggested Projects - Defaults

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CHAPTER 2

• Project Management Context

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Projects are not Isolated

• Projects must operate in a broad organizational
  environment
• Project managers need to take a holistic or
  systems view of a project and understand how it
  is situated within the larger organization
• Systems View to Project Management
• Systems philosophy View things as systems,
  interacting components working within an
  environment to fulfill some purpose
• Systems analysis problem-solving approach
• Systems management Address business,
  technological, and organizational issues before
  making changes to systems

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Project Phases

• Projects are divided up into phases, collectively
  project phases are known as the project lifecycle
• The Phases often overlap!!!
• Project phases are marked by completion of one or
  more deliverables
• Deliverable is a tangible, verifiable work
  product
• Questions at the end of each phase (known as
  phase exits, kill points, or stage gates)
• Determine if the project should continue
• Detect and correct errors cost effectively
• Deliverables from the preceding phase are usually
  approved before work exceeds 20 of the next
  phases budget
• IE Overlapping work is done at cost risk to meet
  schedule
• FAST TRACKING projects that have overlapping
  phases

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Project Lifecycle

• Most project lifecycles have common
  characteristics
• Phases Concept, Development, Implementation,
  Support
• Cost and staffing levels are low to start and
  higher toward the end and drop rapidly as the
  project draws to conclusion
• Stakeholders have more influence in the early
  phases of the project
• Cost of changes and error correction often
  increases as the project continues
• Some changes can be deferred until after delivery

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Phases of the Project Life Cycle
Phase Deliverables Concept Development Implementation Close-Out
Planning Management Plan Project Plan Work Package Completed Work
Financial Preliminary Cost Estimate Budgetary Cost Estimate Costs and Over Runs Lessons Learned
Reporting / Decomposition 3-level WBS 6 level WBS Performance Reports Customer Acceptance
33
Project Life Cycle

• Determination of Mission Needends with Concept
  Studies Approval
• Concept Exploration and Definitionends with
  Concept Demonstration Approval
• Demonstration and Validation ends with
  Development Approval
• Engineering and Manufacturing ends with
  Production Approval
• Production and Deployment overlaps with
  Operations and Support

34
Systems Development Life Cycles

• Waterfall model has well-defined, linear stages
  of systems development and support
• Spiral model shows that software is developed
  using an iterative or spiral approach rather than
  a linear approach
• Incremental release model provides for
  progressive development of operational software
• RAD model used to produce systems quickly
  without sacrificing quality
• Prototyping model used for developing prototypes
  to clarify user requirements

35
The Waterfall Model of the Software Life Cycle

36
Spiral
37
Fast Tracking / Overlap of Processes
38
Extreme Programming- Focuses on customer driven
changes
39
Organizational Structures
40
Critical Success Factors

• Critical Success Factors According to the
  Standish Groups report CHAOS 2001 A Recipe for
  Success, the following items help IT projects
  succeed, in order of importance
• Executive support
• User involvement
• Experience project manager
• Clear business objectives
• Minimized scope
• Standard software infrastructure
• Firm basic requirements
• Formal methodology
• Reliable estimates

41
Headless Chicken (Lewis)

• Software Projects 1990s
• 17 Succeeded
• 33 Failed
• 50 Revised
• Headless Chick is about a bird dying
• Body keeps moving after head is cut off!

42
More on The Lewis Method

• Projects often fail at the beginning, not at the
  end.
• Agree
• The false consensus effect is a failure to manage
  disagreement, because no knows it exists.
• Not that important .
• I think this is also the blind leading the blind
• Process will always affect task performance.
• Agree

43
Lewis

• Write the Mission Statement
• Write something would be better
• The first objective for a project manager is to
  achieve a shared understanding of the teams
  mission.
• Disagree, it is important, but and convincing
  yourself are more important
• The way a problem is defined determines how we
  attempt to solve it.
• ???

44
Lewis and Strategy

• Strategy is an overall approach to a project.
• Game plan
• It is best not to employ cutting-edge technology
  in a project that has very tight deadline.
• It is usually best to use proven technology.
  (period!)
• It is best to separate discovery from
  development.
• Agree

45
Project Management For Dummies Chapter 2

• Project Management For DummiesBy Stanley E.
  PortnyISBN 0-7645-5283-XFormat PaperPages
  384 PagesPub. Date October 2000

46
PART I Defining Your Project and Developing Your
Game Plan.

• Chapter 1 What Is Project Management? (And Do I
  Get Paid Extra to Do It?).
• Chapter 2 Defining What You're Trying to
  Accomplish and Why.
• Chapter 3 Getting from Here to There.
• Chapter 4 You Want This Done When?
• Chapter 5 Estimating Resource Requirements.

47
PART II Organizing the Troops.

• Chapter 6 The Who and the How of Project
  Management.
• Chapter 7 Involving the Right People in Your
  Project.
• Chapter 8 Defining Team Members' Roles and
  Responsibilities.

48
PART III Steering the Ship.

• Chapter 9 Starting Off on the Right Foot.
• Chapter 10 Tracking Progress and Maintaining
  Control.
• Chapter 11 Keeping Everyone Informed.
• Chapter 12 Encouraging Peak Performance.
• Chapter 13 Bringing Your Project to a Close.

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PART IV Getting Better and Better.

• Chapter 14 Dealing with Risk and Uncertainty.
• Chapter 15 Using the Experience You've Gained.
• Chapter 16 With All the Great New Technology,
  What's Left for You to Do?

50
PART V The Part of Tens.

• Chapter 17 Ten Questions to Help You Plan Your
  Project.
• Chapter 18 Ten Ways to Hold People Accountable.
• Chapter 19 Ten Steps to Getting Your Project
  Back on Track.
• Chapter 20 Ten Tips for Being a Better Project
  Manager.

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Chapter 17 Ten Questions to Help You Plan Your
Project.

• Why is your project being Done?
• Who will you need to Involve?
• What results will you Produce
• What Constraints Must you Satisfy?
• What assumptions are you Making
• What work must be done?
• When will you start and end each activity?
• Wholl perform the project Work?
• What other Resources will you need?
• What could go wrong?

52
Chapter 18 Ten Ways to Hold People Accountable.

• Involve People who really have authority
• Be Specific
• Get a Commitment
• Put it in writing.
• Emphasize the Urgency and Importance of the
  assignment
• Tell others about the persons commitment
• Agree on a plan for monitoring the persons work.
• Monitor the persons work.
• Always Acknowledge Good Performance
• Act as if you have the authority

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Chapter 19 Ten Steps to Getting Your Project
Back on Track.

• Determine why project got off track
• Reaffirm key drivers
• Reaffirm Project Objectives
• Reaffirm activities remaining to be done.
• Reaffirm Roles and Responsibilities
• Develop a viable schedule
• Reaffirm Personnel assignments
• Develop a Risk-Management Plan
• Hold a midcourse Kick-off Session
• Closely Monitor Performance

54
Chapter 20 Ten Tips for Being a Better Project
Manager

• Be a why person
• Be a Can Do person
• Dont Assume
• Say what you mean Mean what you say
• View people as allies, not adversaries
• Respect other people
• Think big Picture
• Think Detail
• Acknowledge good performance
• Be both a manager and a leader

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Rest

• Appendix A Glossary
• Appendix B Earned Value Analysis.
• Index.

56
CHAPTER 3

• Project Management Integration

57
Project Integration Management
58
Planning and Control

• Project Plan Development taking the results of
  other planning processes and putting them into a
  consistent, coherent documentthe project plan
• Project Plan Execution carrying out the project
  plan
• Integrated Change Control coordinating changes
  across the entire project
• Influence the factors that create changes to
  ensure they are beneficial
• Determine that a change has occurred
• Manage actual changes when and as they occur

59
Project Plan Development

• A project plan is a document used to coordinate
  all project planning documents
• Its main purpose is to guide project execution
• Also helps the Project Management to Express
  their vision
• Project plans assist the project manager in
  leading the project team and assessing project
  status
• Project performance should be measured against a
  baseline project plan

60
What is a Project Plan?

• Common misunderstanding Project Schedule
• Introduction or overview of the project
• Description of how the project is organized
• Management and technical processes used on the
  project
• Work to be done, schedule, and budget information

61
Chapter 17 Ten Questions to Help You Plan Your
Project.

• Why is your project being Done?
• Who will you need to Involve?
• What results will you Produce
• What Constraints Must you Satisfy?
• What assumptions are you Making
• What work must be done?
• When will you start and end each activity?
• Wholl perform the project Work?
• What other Resources will you need?
• What could go wrong? (Project Management for
  Dummies)

62
Sample Project Plan Security Audits
1. Information Security - Introduction Why an
Information Security Audit? Referenced Documents
and Web Sites Customer Support to Audit Audit
Results 2. Tasks and Sub Tasks Preparation Technic
al Review End User Sample Discussion with
Responsible Management Final report (Hardcopy,
Executive Briefing, 2 CDs, Destroy Working
Notes) 3. Project Controls Confidentiality Need-to
-know Certification Secure Storage of
Results Progress reporting Security Quality
Assurance
63
More on Project Plan

• First Page needs to Sell the Project!
• Plan addresses what, how, which organizations,
  order of magnitude
• but generally does not whom, when, and exact

64
Stakeholder Analysis

• A stakeholder analysis documents important (often
  sensitive) information about stakeholders such as
• stakeholders names and organizations
• roles on the project
• unique facts about stakeholders
• level of influence and interest in the project
• suggestions for managing relationships
• Budget and Other Money!

65
Project Plan Execution

• Project plan execution involves managing
  performing the work described in the project plan
• Work Authorization System a method ensuring that
  qualified people do work at right time and in the
  proper sequence
• Common in Aerospace
• Status Review Meetings regularly scheduled
  meetings used to exchange project information
• Project Management Software special software to
  assist in managing projects

66
Integrated Change Control
Integrated change control involves identifying,
evaluating, and managing changes throughout the
project life cycle Three main objectives of
change control Influence the factors that
create changes to ensure they are beneficial
Determine that a change has occurred Manage
actual changes when and as they occur
67
Establish Change Control System

• A formal, documented process that describes when
  and how official project documents and work may
  be changed
• Describes who is authorized to make changes and
  how to make them
• Often includes a change control board (CCB),
  configuration management, and a process for
  communicating changes
• A formal group of people responsible for
  approving or rejecting changes on a project
• Provides guidelines for preparing change
  requests, evaluates them, and manages the
  implementation of approved changes
• Includes stakeholders from the entire
  organization

68
Lewis Developing an Implementation Plan

• The more important a project deadline, the more
  important the plan becomes.
• Planning versus Plan versus Work
• Never plan in more detail than control.
• Agree
• To ignore probable risk is not a can-do
  attitude but a fool hardy approach to project
  management.
• Yes/No Need to present positive face to extent
  feasible

69
More Lewis Points Chapter 7

• You dont worry about the sequence of tasks while
  constructing the WBS.
• Agree
• A work breakdown structure does not show the
  sequence in which work is performed!
• A WBS is a list activities.
• Parkinsons Law Work will expand to take the
  time allowed

70
CHAPTER 4

• Project Scope Management

71
What is Scope Management?

• Scope refers to all the work involved in creating
  the products of the project and processes used to
  create them
• Project scope management includes the processes
  involved in defining and controlling what is or
  is not included in the project
• The project team and stakeholders must have the
  same understanding of what products be produces
  as a result of a project and what processes will
  be used in producing them

72
Defining Scope The Process

• Initiation beginning a project or continuing to
  the next phase
• Scope planning developing documents to provide
  the basis for future project decisions
• Scope definition subdividing the major project
  deliverables into smaller, more manageable
  components
• Scope verification formalizing acceptance of the
  project scope
• Scope change control controlling changes to
  project scope

73
Project Organization Alignment
74
Project Organization Alignment - 2

• Stages / Results
• Ties technology strategy to mission and vision
• Key Business Processes
• Scope, Benefits, constraints
• Allocates People and

75
Project Financial Analysis

• Financial considerations are often an important
  consideration in selecting projects
• Three primary methods for determining the
• projected financial value of projects
• Net present value (NPV) analysis
• Return on investment (ROI)
• Payback analysis

76
Net Present Value (NPV)

• Net present value (NPV) analysis is a method of
  calculating the expected net monetary gain or
  loss from a project by discounting all expected
  future cash inflows and outflows to the present
  point in time
• Projects with a positive NPV should be considered
  if financial value is a key criterion
• The higher the NPV, the better

77
NPV Sample
78
Return on Investment

• Return on investment (ROI) is income divided by
  investment ROI (total discounted benefits -
  total discounted costs) / discounted costs
• The higher the realized ROI, the better
• Too Often, it is hyped
• Many organizations have a required rate of return
  or minimum acceptable rate of return on
  investment for projects

79
Sample NPV, ROI, Payback
80
Payback Analysis

• The payback period is the amount of time it will
  take to recoup, in the form of net cash inflows,
  the net dollars invested in a project
• Payback occurs when the cumulative discounted
  benefits and costs are greater than zero
• Many organizations want projects to have a fairly
  short payback period

81
Project Selection Tool Weighted Scoring
82
Project Charter

• After deciding what project to work on, it is
  important to formalize projects
• A project charter is a document that formally
  recognizes the existence of a project and
  provides direction on the projects objectives
  and management
• Key project stakeholders should sign a project
  charter to acknowledge agreement on the need and
  intent of the project
• Defines projects purpose, products, scope,
  objectives, constraints, assumptions, risks,
  organization, reporting structure, priority and
  completion criteria

83
Sample Project Charter
Project Title Information Technology (IT)
Upgrade Project Project Start Date March 4, 200
Projected Finish Date December 4, 2002 Project
Manager Kim Nguyen, 691-2784, knguyen_at_abc.com Pro
ject Objectives Upgrade hardware and software
for all employees (approximately 2,000) within 9
months based on new corporate standards. See
attached sheet describing the new standards.
Upgrades may affect servers and midrange
computers as well as network hardware and
software. Budgeted 1,000,000 for hardware and
software costs and 500,000 for labor
costs. Approach Update the IT inventory
database to determine upgrade needs Develop
detailed cost estimate for project and report to
CIO Issue a request for quotes to obtain
hardware and software Use internal staff as
much as possible to do the planning, analysis,
and installation
84
More
Name Role Responsibility Walter Schmidt, CEO
Project Sponsor Monitor project Mike Zwack CIO
Monitor project, provide staff Kim Nguyen Project
Manager Plan and execute project Jeff Johnson
Director of IT Operations Mentor Nancy Reynolds
VP, Human Resources Provide staff, issue memo to
all employees about project Steve McCann Director
of Purchasing Assist in purchasing hardware and
software Sign-off (Signatures of all above
stakeholders) Comments (Handwritten comments
from above stakeholders, if applicable) This
project must be done within ten months at the
absolute latest. Mike Zwack, CIO We are assuming
that adequate staff will be available and
committed to supporting this project. Some work
must be done after hours to avoid work
disruptions, and overtime will be provided. Jeff
Johnson and Kim Nguyen, Information Technology
Department
85
Scope Statement Planning

• A scope statement is a document used to develop
  and confirm a common understanding of the
  project.
• a project justification
• a brief description of the projects products
• a summary of all project deliverables
• a statement of what determines project success
• helps improve the accuracy of time, cost, and
  resource estimates
• defines a baseline for performance measurement
  and project control
• aids in communicating clear work responsibilities

86
Work Breakdown Structure (WBS)

• After completing scope planning, the next step is
  to further define the work by breaking it into
  manageable pieces
• A work breakdown structure (WBS) is an
  outcome-oriented analysis of the work involved in
  a project that defines the total scope of the
  project
• It is a foundation document in project management
  because it provides the basis for planning and
  managing project schedules, costs, and changes

87
Approaches to developing WBS

• 1. A unit of work should appear at only one place
  in the WBS.
• 2. The work content of a WBS item is the sum of
  the WBS items below it.
• 3. A WBS item is the responsibility of only one
  individual, even though many people may be
  working on it.
• 4. The WBS must be consistent with the way in
  which work is actually going to be performed it
  should serve the project team first and other
  purposes only if practical.
• 5. Project team members should be involved in
  developing the WBS to ensure consistency and
  buy-in.
• 6. Each WBS item must be documented to ensure
  accurate understanding of the scope of work
  included and not included in that item.
• 7. The WBS must be a flexible tool to accommodate
  inevitable changes while properly maintaining
  control of the work content in the project
  according to the scope statement.
• Cleland, David I. Project Management Strategic
  Design and Implementation, 1994

88
Sample WBS by product
89
Sample WBS by phase
90
Sample WBS tabular form
1.0 Concept 1.1 Evaluate current systems 1.2
Define Requirements 1.2.1 Define user
requirements 1.2.2 Define content
requirements 1.2.3 Define system
requirements 1.2.4 Define server owner
requirements 1.3 Define specific
functionality 1.4 Define risks and risk
management approach 1.5 Develop project plan 1.6
Brief web development team 2.0 Web Site
Design 3.0 Web Site Development 4.0 Roll Out 5.0
Support
91
WBS and GANTT in Project 2000
92
CHAPTER 5

• Project Time Management

93
Developing a project schedule

• Project schedules grow out of the WBS
• Activity definition
• developing a more detailed WBS to complete all
  the work to be done
• Activity sequencing
• Involves reviewing activities and determining
  dependencies
• Mandatory dependencies inherent in the nature of
  the work hard logic
• Discretionary dependencies defined by the
  project team soft logic
• External dependencies involve relationships
  between project and non-project activities
• You must determine dependencies in order to use
  critical path analysis

94
Project Network Diagrams

• Project network diagram is one technique to show
  activity sequencing, relationships among
  activities, including dependencies.
• Sample Activity-on-Arrow (AOA) Network Diagram
  Also called activity-on-arrow

95
Project Network Diagram
96
Precedence Diagramming Method (PDM)

• Activities are represented by boxes
• Arrows show relationships between activities
• Used by most PM software

97
Sample PDM
98
Activity Duration Estimating

• After defining activities and determining their
  sequence, the next step in time management is
  duration estimating
• Duration includes the actual amount of time
  worked on an activity plus elapsed time
• People doing the work should help create
  estimates, and an expert should review them
• Estimates should be
• Based on a set of assumptions and collected data
• Based on the current approved scope and project
  specifications
• Changed when the scope of the project changes
  significantly
• Changed when there are authorized changes in
  resources, materials, services, and so forth
• Budgets are only estimates

99
Schedule Development

• Schedule development uses results of the other
  time management processes to determine the start
  and end date of the project and its activities
• Ultimate goal is to create a realistic project
  schedule that provides a basis for monitoring
  project progress for the time dimension of the
  project

100
GANTT Charts

• Gantt charts provide a standard format for
  displaying project schedule information by
  listing project activities and their
  corresponding start and finish dates in a
  calendar format
• Symbols include
• A black diamond milestones or significant events
  on a project with zero duration
• Thick black bars summary tasks
• Lighter horizontal bars tasks
• Arrows dependencies between tasks

101
Tracking using GANTT charts
102
Tracking versus Planning

• Real world is never the same as the clean paper
• Too detailed and miss the bigger picture
• Too high level and are late to respond to
  problems
• People do not always tell the truth!

103
Critical Path Method

• CPM is a project network analysis technique used
  to predict total project duration
• A critical path for a project is the series of
  activities that determines the earliest time by
  which the project can be completed
• The critical path is the longest path through the
  network diagram and has the least amount of slack
  or float
• Finding the Critical Path
• First develop a good project network diagram
• Add the durations for all activities on each path
  through the project network diagram
• The longest path is the critical path

104
Program Evaluation and Review Technique PERT

• PERT is a network analysis technique used to
  estimate project duration when there is a high
  degree of uncertainty about the individual
  activity duration estimates
• PERT uses probabilistic time estimates based on
  using optimistic, most likely, and pessimistic
  estimates of activity durations
• PERT weighted average formula
• (optimistic time 4X most likely time
  pessimistic time)/W
• (8 workdays 4 X 10 workdays 24 workdays)/6
  12 days

105
CHAPTER 6

• Project Cost Management

106
Project Cost Management

• Costs are usually measured in monetary units like
  dollars
• Project cost management includes the processes
  required to ensure that the project is completed
  within an approved budget
• Resource planning determining what resources and
  quantities of them should be used
• Cost estimating developing an estimate of the
  costs and resources needed to complete a project
• Cost budgeting allocating the overall cost
  estimate to individual work items to establish a
  baseline for measuring performance
• Cost control controlling changes to the project
  budget

107
Basic Principles of Cost Management

• Profits are revenues minus expenses
• Life cycle costing is estimating the cost of a
  project over its entire life
• Cash flow analysis is determining the estimated
  annual costs and benefits for a project
• Benefits and costs can be tangible or intangible,
  direct or indirect
• Sunk cost should not be a criteria in project
  selection

108
Resource Planning

• The nature of the project and the organization
  will affect resource planning. Some questions to
  consider
• How difficult will it be to do specific tasks on
  the project?
• Is there anything unique in this projects scope
  statement that will affect resources?
• What is the organizations history in doing
  similar tasks?
• Does the organization have or can they acquire
  the people, equipment, and materials that are
  capable and available for performing the work?

109
Cost Estimating

• An important output of project cost management is
  a cost estimate
• It is also important to develop a cost management
  plan that describes how cost variances will be
  managed on the project
• 3 basic tools and techniques for cost estimates
• analogous or top-down use the actual cost of a
  previous, similar project as the basis the new
  estimate
• bottom-up estimate individual work items and sum
  them to get a total estimate
• parametric use project characteristics in a
  mathematical model to estimate costs

110
Type of Estimate

• WAG (Wild Ass Guess)
• Rough Order of Magnitude (ROM)
• Budgetary
• Definitive

111
Earned Value Management Terms

• The planned value (PV), formerly called the
  budgeted cost of work scheduled (BCWS), also
  called the budget, is that portion of the
  approved total cost estimate planned to be spent
  on an activity during a given period
• Actual cost (AC), formerly called actual cost of
  work performed (ACWP), is the total of direct and
  indirect costs incurred in accomplishing work on
  an activity during a given period
• The earned value (EV), formerly called the
  budgeted cost of work performed (BCWP), is the
  percentage of work actually completed multiplied
  by the planned value

112
Earned Value Calculations 1 wk
113
Formulas
114
Earned Value Formulas
To estimate what it will cost to complete a
project or how long it will take based on
performance to date, divide the budgeted cost or
time by the appropriate index.
115
CHAPTER 7

• Project Quality Management

116
What is quality management?

• The International Organization for
  Standardization (ISO) defines quality as the
  totality of characteristics of an entity that
  bear on its ability to satisfy stated or implied
  needs
• Other experts define quality based on
• conformance to requirements meeting written
  specifications
• Has the problem that specifications are not 100
  complete or correct
• fitness for use ensuring a product can be used
  as it was intended

117
Quality Management Processes

• Quality planning identifying which quality
  standards are relevant to the project and how to
  satisfy them
• Quality assurance evaluating overall project
  performance to ensure the project will satisfy
  the relevant quality standards
• Quality control monitoring specific project
  results to ensure that they comply with the
  relevant quality standards while identifying ways
  to improve overall quality
• Modern quality management
• SIX SIGMA
• requires customer satisfaction
• prefers prevention to inspection
• recognizes management responsibility for quality
• Noteworthy quality experts include Deming, Juran,
  Crosby, Ishikawa, Taguchi, and Feigenbaum

118
Sample Fishbone or Ishikawa Diagram
119
Pareto Analysis

• Pareto analysis involves identifying the vital
  few contributors that account for the most
  quality problems in a system
• Also called the 80-20 rule, meaning that 80 of
  problems are often due to 20 of the causes
• Pareto diagrams are histograms that help identify
  and prioritize problem areas

120
Standard Deviation

• Standard deviation measures how much variation
  exists in a distribution of data
• A small standard deviation means that data
  cluster closely around the middle of a
  distribution and there is little variability
  among the data
• A normal distribution is a bell-shaped curve that
  is symmetrical about the mean or average value of
  a population

121
QCC, Six Sigma, Rule of 7

• A control chart is a graphic display of data that
  illustrates the results of a process over time.
  It helps prevent defects and allows you to
  determine whether a process is in control or out
  of control
• Operating at a higher sigma value, like 6 sigma,
  means the product tolerance or control limits
  have less variability
• The seven run rule states that if seven data
  points in a row are all below the mean, above,
  the mean, or increasing or decreasing, then the
  process needs to be examined for non-random
  problems

122
Sample Quality Control Chart
123
Reducing Defects with Six Sigma
124
Cost of Quality

• The cost of quality is
• the cost of conformance or delivering products
  requirements and fitness for use
• the cost of nonconformance or taking
  responsibility failures or not meeting quality
  expectations
• Business Cost per Hour Downtime
• Automated teller machines (medium-sized bank)
• Package shipping service
• Telephone ticket sales
• Catalog sales center
• Airline reservation center (small airline)

125
Five Cost Categories Related to Quality

• Prevention cost the cost of planning and
  executing a project so it is error-free or within
  an acceptable error range
• Appraisal cost the cost of evaluating processes
  and outputs to ensure quality
• Internal failure cost cost incurred to correct
  an identified defect before the customer receives
  the product
• External failure cost cost that relates to all
  errors not detected and corrected before delivery
  to the customer
• Measurement and test equipment costs capital
  cost equipment used to perform prevention and
  appraisal activities

126
Quality, Security, etc

• Quality Assurance can often be another tool for
  uncovering cost, schedule, and other project
  problems.
• When QA says they can not evaluate because there
  is not enough detail, it is a red flag!

127
CHAPTER 8

• Project Human Resource
• Management

128
Start With Good People

• 1 Get Good People Assigned to your project
• Know who the good people are!
• 2 You usually get less than your pay for.
• Cheap people may cost a lot!
• Expensive consultants usually do not build things

129
Projects and HR?

• Project human resource management includes the
  processes required to make the most effective use
  of the people involved with a project. Processes
  include
• Organizational planning
• Staff acquisition
• Team development
• Keys to managing people
• Psychologists and management theorists have
  devoted much research and thought to the field of
  managing people at work
• Important areas related to project management
  include
• motivation
• influence and power
• effectiveness

130
Maslows Hierarchy of Needs
131
McGregors Theory X and Y

• Douglas McGregor popularized the human relations
  approach to management in the 1960s
• Theory X assumes workers dislike and avoid work,
  so managers must use coercion, threats and
  various control schemes to get workers to meet
  objectives
• Theory Y assumes individuals consider work as
  natural as play or rest and enjoy the
  satisfaction of esteem and self-actualization
  needs
• Theory Z introduced in 1981 by William Ouchi and
  is based on the Japanese approach to motivating
  workers, emphasizing trust, quality, collective
  decision making, and cultural values

132
Thamhain and Wilemons Influence on Projects

1. Authority the legitimate hierarchical right to
   issue orders
2. Assignment the project manager's perceived
   ability to influence a worker's later work
   assignments
3. Budget the project manager's perceived ability
   to authorize others' use of discretionary funds
4. Promotion the ability to improve a worker's
   position
5. Money the ability to increase a worker's pay and
   benefits
6. Penalty the project manager's ability to cause
   punishment
7. Work challenge the ability to assign work that
   capitalizes on a worker's enjoyment of doing a
   particular task
8. Expertise the project manager's perceived
   special knowledge that others deem important
9. Friendship the ability to establish friendly
   personal relationships between the project
   manager and others

133
Power

• Power is the potential ability to influence
  behavior to get people to do things they would
  not otherwise do
• Types of power include
• Coercive
• Legitimate
• Expert
• Reward
• Referent

134
Improving Effectiveness - Coveys 7 Habits

• Project managers can apply Coveys 7 habits to
  improve effectiveness on projects
• Be proactive
• Begin with the end in mind
• Put first things first
• Think win/win
• Seek first to understand, then to be understood
• Synergies
• Sharpen the saw

135
Empathic Listening and Rapport

• Good project managers are empathic listeners
  they listen with the intent to understand
• Before you can communicate with others, you have
  to have rapport
• Mirroring is a technique to help establish
  rapport
• IT professionals often need to develop empathic
  listening and other people skills to improve
  relationships with users and other stakeholders

136
Organizational Planning

• Organizational planning involves identifying,
  documenting, and assigning project roles,
  responsibilities, and reporting relationships
• Outputs and processes include
• project organizational charts
• work definition and assignment process
• responsibility assignment matrixes
• resource histograms

137
Sample Responsibility Assignment Matrix (RAM)
138
Staff Acquisition

• Staffing plans and good hiring procedures are
  important in staff acquisition, as are incentives
  for recruiting and retention
• Some companies give their employees one dollar
  for every hour a new person they helped hire
  works
• Some organizations allow people to work from home
  as an incentive
• Research shows that people leave their jobs
  because they dont make a difference, dont get
  proper recognition, arent learning anything new,
  dont like their coworkers, and want to earn more
  money

139
Resource Loading

• Resource loading refers to the amount of
  individual resources an existing project schedule
  requires during specific time periods
• Resource histograms show resource loading
• Over-allocation means more resources than are
  available are assigned to perform work at a given
  time

140
Resource Leveling

• Resource leveling is a technique for resolving
  resource conflicts by delaying tasks
• The main purpose of resource leveling is to
  create a smoother distribution of resource usage
  and reduce over allocation

141
Team Development MBTI

• Meyers-Briggs Type Indicator (MBTI) is a popular
  tool for determining personality preferences and
  helping teammates understand each other
• Four dimensions include
• Extrovert/Introvert (E/I)
• Sensation/Intuition (S/N)
• Thinking/Feeling (T/F)
• Judgment/Perception (J/P)

142
Social Styles Profiles

• People are perceived as behaving primarily in one
  of four zones, based on their assertiveness and
  responsiveness
• Drive
• Expressive
• Analytical
• Amiable
• People on opposite corners (drive and amiable,
  analytical and expressive) may have difficulties
  getting along

143
Reward and Recognition Systems

• Team-based reward and recognition systems can
  promote teamwork
• Focus on rewarding teams for achieving specific
  goals
• Allow time for team members to mentor and help
  each other to meet project goals and develop
  human resources

144
Organizational Systems

• Project based Operations consist primarily of
  projects. Two categories
• Organizations that derive their revenue primarily
  from performing projects for others
  (architectural firms, engineering firms,
  consultants, construction contractors, government
  contractors, etc.)
• Organizations that have adopted management by
  projects
• Have management systems such as accounting,
  financial, reporting and tracking in place to
  facilitate project management
• Non-project based
• Absence of project-oriented systems generally
  makes project management more difficult.
• Examples include manufacturing companies,
  financial service firms, etc.

145
Organizational Cultures and Style

• Culture is reflected in shared values, beliefs,
  norms, expectations, policies, procedures, view
  of authority relationships, etc.
• Organizational cultures often have a direct
  influence on the project.
• A team proposing an unusual or high-risk approach
  is more likely to secure approval in an
  aggressive or entrepreneurial organization.
• A project manager with a highly participative
  style may encounter problems in a rigidly
  hierarchical organization while a project manager
  with an authoritarian style may be equally
  challenged in a participative organization.
• Project managers need to be aware of the
  organization's cultures and style.

146
Organizational Structure types

• Functional
• A hierarchy where each employee has one clear
  superior.
• Staff are grouped by specialty, such as
  production, marketing, engineering, and
  accounting.
• Project work is done independently within each
  department.
• Project Expeditor (PE)
• The project expeditor acts as a staff assistant
  to the executive who has ultimate responsibility
  for the project.
• The workers remain in their functional
  organizations and provide assistance as needed.
• The PE has little formal authority. The PE's
  primary responsibility is to communicate
  information between the executive and the
  workers.
• Most useful in the traditional functional
  organization where the project's worth and costs
  are relatively low.
• Project Coordinator (PC)
• Project expeditor is moved out of facilitator
  position into a staff position reporting to a
  much higher level in the hierarchy.
• The project coordinator has more authority and
  responsibility than a PE.
• The PC has the authority to assign work to
  individuals within the functional organization.
• The functional manager is forced to share
  resources and authority with the PC.
• The size of projects in terms of dollars is
  relatively small compared to the rest of the
  organization.

147
Matrix

• Maintains the functional (vertical) lines of
  authority while establishing a relatively
  permanent horizontal structure to interact with
  all functional units supporting the projects.
• One result of the matrix is that workers
  frequently find themselves caught between the
  project manager and their functional manager.
• Advantages Improved PM control over resources,
  rapid response to contingencies, improved
  coordination effort across functional lines,
  people have a "home" after the project is over,
  etc. (See Principles of PM, pg. 18)
• Disadvantages Not cost effective due to excess
  administrative personnel, workers report to
  multiple bosses, more complex structure to
  monitor and control, higher potential for
  conflicts due to differing priorities, power
  struggles, and competition for resources, etc.
  (See Principles of PM, pg. 19)

148
Matrix Staffing!
Functions Project A Project B Project C Project K Project Z
QA 2 5 1 1/2 ½
Software 2 1 ½ ½
3 2 5 ½ 1 ½ 2 1/2
4 2 5 1 6
5 ½ 1 5
149
Matrix Types

• Weak matrix Maintains many of the
  characteristics of a functional organization. The
  project manager's role is more like that of a
  project coordinator or project expeditor.
• Balanced matrix In-between weak and strong. The
  project manager has more authority than in a weak
  matrix. The PM is more likely to be full-time
  than part-time as in a weak matrix.
• Strong matrix Similar in characteristics to a
  projectized organization. There is likely to be a
  department of project managers which are
  full-time.

150
Projectized

• Team members are often collocated.
• Most of the organization's resources are involved
  in project work.
• Project managers have a great deal of
  independence and authority.
• Departments either report directly to the project
  manager or provide services to the various
  projects.

151
Project Manager Roles and Responsibilities

• Integrator
• PM is the most likely person who can view both
  the project and the way it fits into the overall
  plan for the organization.
• Must coordinate the efforts of all the units of
  the project team.
• Communicator
• Communicates to upper management, the project
  team, and other stakeholders.
• The PM who fails to decipher and pass on
  appropriate information to the appropriate people
  can become a bottleneck in the project.
• The PM has the responsibility of knowing what
  kind of messages to send, who to send them to,
  and translating the messages into a language
  understood by all recipients.
• Team Leader
• Must be able to solve problems
• Guide people from different functional areas
• Coordinate the project to show leadership
  capabilities
• Decision Maker
• Makes key decisions such as allocation of
  resources, costs of performance and schedule
  tradeoffs, changing the scope, direction or
  characteristics of the project.
• This is an important role with significant
  consequences for the project as a whole.
• Climate Creator or Builder
• The PM should attempt to build a supportive
  atmosphere so that project team members work
  together and not against one another.
• Seek to avoid unrest and negative forms of
  conflict by building supportive atmosphere early.
  

152
General Advice on Teams

• Focus on meeting project objectives and producing
  positive results
• Make sure everyone understands the goals
• Fix the problem instead of blaming people
• Establish regular, effective meetings
• Use PM tools and reports to help focus
• Remember the product is important, not the paper
• Nurture team members and encourage them to help
  each other
• Acknowledge individual and group accomplishments
• Free Lunch etc.
• Establish accountability

153
Project Meals