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  • Central Concept - Innovation Dominant Project Characteristics - Overlapping, Fewer boundaries Main Thrust - Modifying and Adapting Demands Metaphor - Designing Means - Creativity, Higher Technology Ability
  • Central Concept - Innovation Dominant Project Characteristics - Overlapping, Fewer boundaries Main Thrust - Modifying and Adapting Demands Metaphor - Designing Means - Creativity, Higher Technology Ability
  • Central Concept - Innovation Dominant Project Characteristics - Overlapping, Fewer boundaries Main Thrust - Modifying and Adapting Demands Metaphor - Designing Means - Creativity, Higher Technology Ability
  • Central Concept - Innovation Dominant Project Characteristics - Overlapping, Fewer boundaries Main Thrust - Modifying and Adapting Demands Metaphor - Designing Means - Creativity, Higher Technology Ability

Fall2005.ppt Fall2005.ppt Presentation Transcript

  • Fall 2005 Tim Eiler CE 4101W-01 Project Management and Economics
    • If you are NOT officially enrolled in this class, see me at break or at end of class tonight
    • All students sign the sheet being passed around
    • All students obtain and complete an information sheet – turn in at class end
    Class Roll
    • Why are we here tonight?
    • Expectations – of the class, of me, of you
    • Course mechanics – how it all will work
    • What is PM and Why is it important?
    • Starting out with basic PM
    • Homework 1 assigned
    Agenda
    • Why are you in this class?
    • What questions do you have
    • about PM?
    Open PM Discussion
    • For those of you who see themselves as future PM’s…
      • Figure out what PM is and isn’t
      • More importantly, figure out why PM is important to your businesses and careers
    • For those who see themselves as engineers, but not PM’s…
      • It’s the soft stuff that’s hard, the hard stuff is easy (Doug Wilde, quoted in Leifer, 1997)
      • “ Those organizations that take project management seriously as a discipline, as a way of life, are likely to make it into the 21st century. Those that do not are likely to find themselves in good company with dinosaurs.” (Tom Peters)
      • In the new economy, all work is project work.
        • (Tom Peters; The Wow Project ;Fast Company, 24, 116)
    What’s The Point of This Class?
  • $ € £ ¥ Why is any business in business?
    • Increases profit (margin) by reducing cost/unit output
      • Increasing work output by the same resources
      • Reducing cost of work done
    • Drives Innovation
      • In how individual contributor & management (mgmt) work is done
      • In product
    Why Project Management (PM)?
  • “ The difference between a company and its competitor is the ability to execute. If your competitors are executing better than you are, they’re beating you in the here and now…Execution is the great unaddressed issue in the business world today. Its absence is the single biggest obstacle to success…” Ram Charan & Larry Bossidy, Execution: The Discipline of Getting Things Done , 2002, Crown Business
    • Increases sales
      • Improved quality
      • Ability to be a price leader
      • Differentiates your company
    Why PM?
    • In short:
    • Project Management (PM) strives to achieve success from entropy-driven chaos…
    Why PM?
    • A recent survey of technology projects in the United States by the Project Management Institute reveals some startling percentages:
    • Close to half of the projects started were
        • never finished
    • 30% were completed but took at least twice as
    • long - some took 5 times as long
    • Only 10% of the projects were finished on time
    Why Is PM Important?
    • This course has wide breadth with less topic depth
    Secret 1 About This Course
  • Project Management (PM) isn’t rocket science Secret 2 About This Course
    • This class is yours if you choose to own it.
      • If you choose not to get involved in it, you only have yourself to blame at the end for not getting something from it.
      • Being involved means joining in discussions, doing the work, understanding why things are done the way they are
    • "Learning occurs when people engage in complicated undertakings and find a way to reflect on how they're doing it - and perhaps engage a coach or mentor who has some tools and methods for learning. Those tools are different from answers. Answers are for lazy people who don't want to learn how to use a thinking method to learn how to deal with a practical problem. I have zero respect for trying to find an "answer". There is a profound difference between having an answer and having an approach you can use to deal with a complicated and difficult practical problem. "
    • Peter Senge
    Secret 3 About This Course
  • “ Simple is Sexy. Complex Sucks.” Rob Thomsett, Radical Project Management The Story of The Skilcraft Method… Secret 4 About This Course
    • This is an application-level course
      • Needs critical thinking…
      • not just formulaic regurgitation
      • Process:
        • 3 rd – Apply
        • 2 nd – Practice
        • 1st – Know
      • 5 th - Explain
      • 4 th - Synthesize
      • 3 rd - Challenge
      • 2 nd - Listen
      • 1 st - Read
    This is a PRACTICAL Course What You Can Expect…
    • Getting new knowledge…
      • Interactive, Socratic-style Lecture
        • Listen
        • Ask questions
        • Answer questions
        • Discuss topics
      • Examples
        • The right way (we hope) first
        • One planned for crucial or difficult topics
        • More as you require
    What You Can Expect…
    • Practicing to solidify new knowledge…
      • Facilitated Practice
        • Use the knowledge you have
        • Apply it to new situation
      • In class assignment
        • Given information
        • Do (use a tool, create a document, etc.)
      • Group-style work
        • Ask questions
        • Help each other
    What You Can Expect…
    • Applying what you know…
      • Requires melding of appropriate concepts
        • Given in the class
        • “ Common sense” and practical experience
        • Readings
      • You WILL NOT always have everything spelled out to you in checklist format
      • Sometimes you will have to MAKE ASSUMPTIONS to fill in the missing pieces
    What You Can Expect…
    • This is a Civil Engineering course
    • It will use mostly examples and homework related to Civil Engineering
    • It is also a course in Project Management
    • It is not exclusive to Civil Engineering
      • Not all the examples, homework, etc will be exactly in the CE domain
      • You are to focus on PM 1 st and CE second…I will not be evaluating you on your CE prowess
    What You Can Expect…
    • Do the readings
    • Attend class
    • Ask questions & challenge the instructor
    • Actively participate in discussions & groups
    • Speak up when you have a question or concern
    • Satisfactorily complete (on time) all writing assignments, examinations, projects, homeworks & exams.
    Be An Active Learner I Expect of You…
    • Syllabus is posted at course site on WebCT
    • You are responsible for printing it if you
    • want a printout
    • You are responsible to keep up with
    • revision updates
    Syllabus Review
    • Course Objectives
    • Teaching Team
    • Textbook(s)
    • Computer Use
    • Homework
    • Grading
    • Calendar
    • Attendance
    • Academic Honesty
    • Etc…
    READ THE SYLLABUS Syllabus Review
    • Available via WebCT
      • You are responsible for printing if you want a printout
      • All slides are posted already
    Syllabus Review - Slide Decks
    • Demonstrate knowledge of the concepts and principles of project management and economics
    • Formulate and analyze project management and engineering economics problems
    • Use project management and communications software
    • Demonstrate knowledge of teamwork and interpersonal skills
    • Process group work and the overall functioning of the course
    • Demonstrate written and verbal skills
    • Actively reflect on and process your learning in the course
    • Apply concepts, principles, methods, algorithms, and heuristics
    Syllabus – Cont’d
    • Teaching Team
      • Instructor : Tim Eiler
      • Office: CE 147
      • Phone 1 : 612.327.1553 (cell)
      • Phone 2: 952.446.1615 (home)
      • Email 1 : [email_address]
      • Email 2 : [email_address]
    Rhetoric Consultant : Dave Kmiec Office: Phone : 612.379.3251, 919.749.5580 (c ) Email : [email_address] Office Hours: As Needed Teaching Assistant : Ryan Owen Office: Phone : 952.239.9349 Email : [email_address] Syllabus – Cont’d
    • Program Manager GMAC-RFC, Bloomington, MN (current)
    • Manage software development program office and staff of project managers and technical resources (6)
    • Adjunct Professor of Project Management U of MN, Minneapolis, MN (current)
    • Manage and deliver project management course content
    • Partner RocketScienz Group LLC, Rosemount, MN
    • Graphic Design, Web Development and Hosting, Software Development, Training, PM Consulting
    • Release Manager Tellabs, Plymouth, MN
    • Led $300M, 36-month project to develop optical broadband switch
    • Manager of Project Management Digi International, Minnetonka, MN  
    • Managed project management office/project management staff
    • Project Manager ADC Telecommunications, Minnetonka, MN  
      • Managed broadband access equipment product development projects
    • Project Manager Microwave Network Systems, Houston, TX
      • Managed microwave radio/radio network equipment development projects  
    • Astronaut Instructor Rockwell Space Operations, Houston, TX
      • Provided multi-discipline technical training to US & foreign astronauts
    • PMP (Project Mgmt Professional) Certification Project Mgmt Institute (PMI)
    • MBA University of Houston
    • BS ME/IEOR University of Minnesota
    • CTM Certification Toastmasters International
    • National Board of Directors Triangle Fraternity
    Teaching Team – Tim Eiler
    • Computer Use
      • WebCT
        • This course uses WebCT for disseminating and collecting information
        • If you don’t know how to use WebCT, contact the department office for further instructions
      • MS-Project and Other Tools
        • You will be required to perform work using MS-Project and other software applications
        • If you do not now have access to MS-Project, please arrange to get it
    Syllabus – Cont’d
    • Calendar
      • See Syllabus
      • Shows week numbers and date of Monday of each week
      • Explains lecture material to be covered in class week
      • Identifies prep. reading assignments for each class:
        • PMBOK 2004 edition
        • Other
        • Note that reading assignments and/or homework assignments may not seem 100% synchronous with lecture material
      • Identifies work to be assigned in each class
      • Identifies work to be submitted in each class (or week)
    Syllabus – Cont’d
      • Expectation : All students are expected to complete coursework responsibilities with fairness and honesty.
      • Definition : Scholastic dishonesty means plagiarizing; cheating on assignments or examinations; engaging in unauthorized collaboration on academic work; taking, acquiring, or using test materials without faculty permission; submitting false or incomplete records of academic achievement; acting alone or in cooperation with another to falsify records or to obtain dishonestly grades, honors, awards, or professional endorsement; altering forging , or misusing a University academic record; or fabricating or falsifying data, research procedures, or data analysis.
      • Consequences : Scholastic dishonesty WILL result in disciplinary action. Within this course, a student responsible for scholastic dishonesty can be assigned a penalty up to and including an "F" or "N" for the course.
    Academic Honesty
      • If you have a special need that requires any additional reasonable accommodation, I encourage you to please see or contact me at any time
    Reasonable Accommodation
  • NOTE: In cases of conflict between these slides and the syllabus, the syllabus will have precedence Contract Grading Complete Writing Interview Form Receive P grade on Project Plan Receive P grade on Project Plan Receive a cumulative mean score of >= 70% for 2 exams Receive a cumulative mean score of >= 80% for 2 exams Receive a cumulative mean score of >= 90% for 2 exams Receive P grade on 80% quizzes and assignments given in class Receive P grade on 90% quizzes and assignments given in class Receive P grade on 100% quizzes and assignments given in class Receive P grade on Project Proposal Receive P grade on Project Proposal Receive P grade on Project Proposal Receive P grade on Problem/Solution Memo Receive P grade on Problem/Solution Memo Receive P grade on Problem/Solution Memo Submit 100% of homework Submit 100% of homework Submit 100% of homework Actively engage in class discussions – small group Actively engage in class discussions – small group and whole class Actively engage in class discussions – small group and whole class Abide by all Class Policies Abide by all Class Policies Abide by all Class Policies To Receive a C To Receive a B To Receive an A
      • Assignments
        • Exams  3
        • Out of class assignments 
        • In class assignments  TBD
        • Quizzes  TBD
        • Mastery Learning – you may, at my discretion only, resubmit homework NLT one week following receipt of graded work
    Grading – Cont’d Quality Quantity
        • Incredibly important in a class of this type
        • You lose much more than your grade by not coming
      • I will be flexible with attendance and assignments IFF…
    Attendance
    • Form groups of 6
    • Each person to collect contact information (phone, email, etc) from ALL 5 other people on the team – also submit your group’s info to me
    • Class Group is your first line of defense. Call them 1st to:
      • Get info you need if you missed class
      • Get help obtaining or using a tool
      • Etc.
    • Class Group is your team for assignments
    • If your group shrinks < 4 people, see me
    Class Groups
    • The literature says that classes should be broken up to have a break after roughly every 45-50 minutes of class.
    • I assume you’re all adults, though, and you can make your own choices and follow through on those choices.
    • Do you want 1 or 2 breaks during each class period?
    Breaks
        • PM Planning
        • PM Execution
        • PM Leadership and Ethics
        • Project Closure
    General Course Organization
  • Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. It is accomplished through the use of processes such as initiating, planning, executing, controlling, and closing. (PMBOK, 2000, PMI) Project Management is the intersection of: Tools People Systems (Lewis, James P. 2000. Project Planning, Scheduling & Control , 3rd ed. McGraw‑Hill) What Is Project Management?
    • What Employers Want
    • Learning to Learn
    • Listening and Oral Communication
    • Competence in Reading, Writing, and Computation
    • Adaptability: Creative Thinking and Problem Solving
    • Personal Management: Self-Esteem, Goal Setting/Motivation, and
            • Personal/Career Development
    • Group Effectiveness: Interpersonal Skills, Negotiation, and
    • Teamwork
    • Organizational Effectiveness and Leadership
    • Workplace basics: The skills employers want . 1988. American Society for Training and Development and U.S. Department of Labor.
    Why Is PM Important To You ?
    • Employer’s Checklist C: Boeing Company [1]
    •  
    • A good grasp of these engineering fundamentals:
      • Mathematics (including statistics), Physical & life sciences, Information technology
    • A good understanding of design & manufacturing processes
      • (i.e. understanding of engineering concepts and practice)
    • A basic understanding of the context in which engineering is practiced, including:
      • Economics and business practice, History, The environment, Customer and societal needs
    • A multidisciplinary systems perspective
    • Good communication skills: Written, Verbal, Graphic, Listening
    • High ethical standards
    • An ability to think critically, creatively, and independently & cooperatively
    • Flexibility--an ability and the self-confidence to adapt to rapid/major change
    • Curiosity and a lifelong desire to learn
    • A profound understanding of the importance of teamwork 
    • [1] ASEE Prism , December 1996, p. 11 .
    Why Is PM Important To You ?
    • Desired Attributes of a Global Engineer
    • A good grasp of these engineering science fundamentals, including:
      • Mechanics & dynamics, Math (including statistics), Physical & life sciences, Information science/technology
    • A good understanding of the design & manufacturing process
      • (i.e., understands engineering and industrial perspective)
    • A multidisciplinary, systems perspective, along with a product focus
    • A basic understanding of the context in which engineering is practiced, including:
      • Customer & societal needs/concerns, Economics & finance, The environment & its protection,
      • The history of technology & society
    • Awareness of the boundaries of one’s knowledge, along with an appreciation for other areas of
    • knowledge & their interrelatedness with one’s own expertise
    • Awareness & appreciation of other cultures & their diversity, distinctiveness, & inherent value
    • Commitment to teamwork, including extensive experience/understanding with team dynamics
    • Good communication skills, including written, verbal, graphic, and listening
    • High ethical standards (honesty, sense of personal and social responsibility, fairness, etc)
    • An ability to think both critically and creatively, in both independent and cooperative modes
    • Flexibility: the ability and willingness to adapt to rapid and/or major change
    • Curiosity and the accompanying drive to learn continuously throughout one’s career
    • An ability to impart knowledge to others
    • [ 1] A Manifesto for Global Engineering Education, Summary Report of the Engineering Futures Conference ,
    • January 22-23, 1997. The Boeing Company & Rensselaer Polytechnic Institute.
    Why Is PM Important To You ?
    • Professional skills – memos, reports, directives, plans, proposals, etc.
    • Critical element of engineering and project management
      • Key to project management effectiveness (90% rule)
      • Employers concerned about communication skills
    • Writing Intensive Curriculum Requirement
    Why Writing In this Course?
  • Why Writing Intensive?
    • ABET Criteria 2004-2005 Criteria for Accrediting Engineering Programs
      • Engineering programs must demonstrate that their graduates have:
      • (a) ability to apply knowledge of mathematics, science, and engineering
      • (b) ability to design and conduct experiments, & to analyze and interpret data
      • (c) ability to design a system, component, or process to meet desired needs
      • (d) an ability to function on multi-disciplinary teams
      • (e) an ability to identify, formulate, and solve engineering problems
      • (f) an understanding of professional and ethical responsibility
      • (g) an ability to communicate effectively
      • (h) the broad education necessary to understand the impact of engineering solutions in a global and societal context
      • (i) a recognition of the need for, and an ability to engage in life-long learning
      • (j) a knowledge of contemporary issues
      • (k) an ability to use the techniques, skills, and modern engineering tools necessary for engineering practice.
      • Source: ABET. 2004-2005 Criteria for Accrediting Engineering Programs. Accessed June 12, 2004. available: <http://www.abet.org/images/Criteria/E001%2004-05%20EAC%20Criteria%2011-20-03.pdf>
  • Meeting the ABET criteria
    • Interviewing a Practicing Engineer in your Area
      • (f) an understanding of professional and ethical responsibility
      • (g) an ability to communicate effectively
    • Writing and Peer Reviewing a Problem-Solution Memo
      • (d) an ability to function on multi-disciplinary teams
      • (f) an understanding of professional and ethical responsibility
      • (g) an ability to communicate effectively
    • Writing a Proposal in a Collaborative Team
      • (d) an ability to function on multi-disciplinary teams
      • (g) an ability to communicate effectively
  • Writing as a Process
      • To succeed in these assignments, you will need to think of writing as a process, not a product.
      • Be sure to follow the steps specified in the assignment for the purposes of this course. As you write in your career, you can find ways to adapt this basic process to the needs in your organization.
    • - Your writing assignments are graded pass/fail
    • based on whether you:
    • * follow the writing process
      • * apply the writing process effectively to your subject
    • Critical element of project management
      • economics used in making decisions
        • related to engineering projects
      • Even if you aren’t the decision maker, you will be a participant in some form
      • same principles are used for many other types of decisions
    • Life skills – loans, mortgages, etc.
    • FE, PE Exam
    Why Engineering Economics?
    • Is a 3-year payback on your project sufficient to meet company objectives?
    • If you have competing repeatable projects with different lives, you can use the lowest common multiple of their project lives as the period of analysis…True or False?
    • You just heard through the grapevine that the company is changing the way it handles depreciation expense. You shouldn’t worry about how that will affect how your project is accepted…True or False?
    • (FE exam problem) A bank uses the following formula to compound interest in a passbook savings account F = P (1 + i/4)4n. Interest is stated as an annual rate. How are they compounding? (1) Daily, (2) Weekly, (3) Monthly, (4) Quarterly, (5) Annually
    Engineering Econ - Examples
    • Earlier, we saw these definitions:
    • Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. (PMBOK, 2000)
    • Project management focuses on a project. Management, bringing together and optimizing the resources necessary to successfully complete the project. These resources include the skills, talents, and cooperative efforts of a team of people; facilities, tools and equipment; information, systems and techniques; and money . (Haynes, 1989)
    What Is Project Management? So, if Project Management (PM) “ focuses on a project,” what is a project?
    • “ A temporary endeavor undertaken to create a unique product or service”
    • A Guide to the Project Management Body of Knowledge ,
    • Project Management Institute
    A project is a one-time, multitask job with a definite starting point, definite ending point, a clearly defined scope of work, a budget, and (usually) a temporary team. Lewis (2000). … a combination of human and nonhuman sources pulled together in a temporary organization to achieve a specified purpose. (Cleland and Kerzner, 1985; Nicholas, 1990) What Is A Project?
    • Temporary, with specific endpoint
    • Unique
    • Specific Deliverable
    • Specific Spending Limit
    • (Typically) Involve groups, across organizational lines
    • Element of Risk
    Characteristics Of A Project?
  • TRIPLE CONSTRAINT Defining a Project - Old
  • Budget = Cost Schedule = Time Performance = Itself Client Acceptance a .k.a Customer Satisfaction QUADRUPLE CONSTRAINT Defining a Project – Current
    • Science
      • Tools-based
      • Process-based
      • Some things are essentially same across projects & time
    • Art
      • Relies on Heuristics (Rules of Thumb)
      • Many aspects not consistent across time or projects
      • Critical decisions require experience basis
    Is PM Art, Science, or Both?
  • Fundamental tools for the new generation of engineers and project managers…
    • Basic Thinking (Occam’s Razor)
    • Systems/ systems thinking/ systems engineering
    • Models
    • Teamwork
    • Quality
    Fundamental Tools
  • Customer Request Planning Execution Closure customer internal PM Process at the High-Level
  • The PM Process – Detail Level SOW Project Charter Requirements Document WBS Network Diagram Duration Estimation Resource Assignment Schedule Budget Stakeholder Analysis Critical Path Assessment Comm Plan Quality Plan Admin Plan Project Plan customer internal
  • Predictors of Lowered Project Success
    • Unrealistic project work plans
    • Inability to deal early with suspected problem issues
    • Technical complexities not well communicated to team members
    • Conflict between client expectations and the state of deliverables
    • Insufficient involvement on the part of senior management early in the life cycle
  • Function 1 Function 2 Function n Other Project Project Management
  • Project 1 Project 2 Project n Other Program Function 1 Function 2 Function n Other Program Management
    • Wild enthusiasm
    • Disillusionment
    • Total confusion
    • Search for the guilty
    • Punishment of the innocent
    • Praise and honors for the non-participants
    It’s only funny because it’s so true… Project Life Cycle
  • Feasibility, Planning/Design, Construction, Turnover/Startup Project Life Cycle
  • Project Life Cycle
    • Early: ensure project is defined correctly to:
      • Meet the needs of the client
      • Fit the abilities of the team
      • Be consistent with goals, objectives, values of the firm
      • Speculation
    • Middle: keeping project “on” triple constraint targets, negotiating project trade-offs
    • End: “Punch list” mentality…ensuring everything is done and done correctly
    PM Attention/Methods over PLC
  • • Planning • Organizing • Staffing • Directing • Controlling PM’s Role Over PLC
    • Planning
    • Establish project objectives and performance requirements
    • Involve key participants in the process
    • Establish well-defined milestones with deadlines
    • Build in contingencies to allow for unforeseen problems
    • Prepare formal agreements to deal with changes
    • Clearly define responsibilities, schedules, and budgets
    • 1 Oberlender, G.D. 1993. Project management for engineering and construction . New York: McGraw-Hill.
    PM Role Over PLC - Planning
    • Organizing
    •  
    • Develop a WBS that divides project into units of work 
    • Create a project organization chart
    •   Clearly define responsibilities, schedules, and budgets
    • Staffing
    • Select team members using work requirements and
    • input from appropriate managers’ input  
    • Orient team members to overall project
    •   Seek each team members’ input to define & agree
    • upon scope, budget, and schedule
    •   Set specific performance expectations with each team
    • member
    PM Role Over PLC – Organizing/Staffing
    • Directing  
    • Coordinate all project components
    • Display positive attitude
    • Be available to team members
    • Investigate potential problems as soon as they arise
    • Research and allocate necessary resources
    • Recognize good work of team members & guide necessary
    • improvement
    • Controlling  
    • Measure project performance using record of planned &
    • completed work 
    • Chart planned and completed milestones chart
    • Chart monthly project costs
    • Document agreements, meetings, telephone conversations
    • Communicate regularly with team members
    PM Role Over PLC – Directing/Controlling
  • The PM Process – Planning Detail SOW Project Charter Requirements Document WBS Network Diagram Duration Estimation Resource Assignment Schedule Budget Stakeholder Analysis Critical Path Assessment Comm Plan Quality Plan Admin Plan Project Plan customer internal
    • SOW – what the customer wants
    • Charter – turns the project “ON”, identifies project rules
    • Requirements Doc – Details of the customer “wants”
    • WBS – breaks work into manageable “packages”
    • Stakeholder Analysis – identifies who can impact project
    • Network Diagram – identifies dependencies of tasks
    • Duration Estimation – estimates task length
    • Critical Path Assessment – finds the longest schedule
    • Resource Assignment – assigning the right people to tasks
    • Schedule – ND + Duration Estimates + Resources
    • Communication Plan – who needs to know what, when, how
    • Budget – based on estimates, how many & for project
    • Quality Plan – how quality of project output will be ensured
    • Admin Plan – how mundane aspects of the project will be handled
    • Project Plan – single location of most of the above (and more)
    The Process Steps - Overview
    • Relentless Planning
    • Vision
    • Servant Leadership Approach
      • Delegation
      • Communication
      • Support
      • Optimism
      • Tenacity
      • Balance
      • Listening
    • Accountability
    What it takes to be successful PM
    • PM (indeed, management in general) requires a different way of thinking that most engineers are taught to use.
    • YOU have to figure out how to make the transition .
    • The good thing is that the shift is not as difficult as it might first seem.
    PM: A Different Way of Thinking Required
      • It is not only all about the customer…
      • It all starts with the customer!
        • Customer’s need
        • Internal vs external customer
    Where Do Projects Come From?
      • So how does the customer tell the “do-er” what is needed (and constraints)?
    The Statement of Work (SOW) Where Do Projects Come From?
    • What is the purpose of an SOW?
    • Is an SOW created before or after charter?
    • Who is accountable for creating the SOW?
    • What are the “typical” contents of a SOW?
      • Narrative description of the work/deliverables required for the project contract
      • Before OR After…depends on type of project and who the “vendor” is
      • The “customer” who requires the final output
      • User-level requirements
    Statement of Work (SOW)
    • Constraints
      • Procedural
      • Methodology
      • Materials
    • Documentation Rules
      • What documentation is required
        • Testing results
        • Manufacturers’ literature
        • Samples
        • Product data
        • Color selections
        • Etc.
      • When documentation is required
      • Format required for documentation
    SOW
    • There is no “official standard version” of an SOW
    • An example (paper airplane)
    Statement of Work (SOW)
      • Every project a company executes either contributes to that company's success of that company's failure.  There is no in-between.  A project that &quot;does no harm&quot; uses resources that could be better spent on a project that contributes to the company's objectives
      •  
      • All projects are not created equal.  Every project contributes differently.  In is not in the company's best interests to treat projects equally.
      •  
      • There are more good projects than there are resources with which to accomplish them.  The corollary is &quot;you can not do them all.&quot;  Many foolish companies try to do too much and the result of this is poor quality, missed dates, cost overruns, and dissatisfied customers.
      •  
      • Not all projects contribute to all corporate objectives.  It would be nice if everything we did contributed to every company objective, but the do not and will not.  It is acceptable to have a project that does not contribute to one or more company objectives.  It is even acceptable from time to time to have a project that actually goes against an objective!
    Where Do Projects Come From?
      • The Situation:
        • The Avanti Motors Corporation of Norcross, GA, has begun production of the Studebaker XUV and needs a new parts warehouse (depot) in the midwest. They’ve chosen Bloomington, MN, have purchased the land, and have solicited bids. Your company (your group) submitted a bid and won.
      • Further Definition To Be Available In:
        • SOW
        • Homework Instructions
    Case Study Used In Course
      • Statement Of Work
      • Parts Depot
      • 333 W 78th St
      • Bloomington, MN
      • Avanti Motor Corporation of America
      • 19740 Inglewilde Dr
      • Norcross, Georgia
      • Mark Ross, Customer Representative
    Case Study Used In Course
      • General Requirements
      • Not Applicable
      • Site work
          • 2.1 Excavation
          • Flat and compacted to support slab foundation and building
          • 2.2 Landscaping
          • Turf
      • Concrete
        • 3.1 Footing and Slab
      • Poured, reinforced concrete
        • 3.2 Parking lot and street edging
        • Curb and gutter
        • 3.3 Walls
        • Precast, reinforced concrete
    Case Study Used In Course
    • Request For Information (RFI)
      • A memo requesting specific information from someone
    • Transmittal
      • A memo that introduces/outlines/explains the material being sent (much like a fax cover sheet)
    Typical Project Documents
    • Genuinely and sincerely thank at least one person who performs routine
    • cleaning maintenance on a building in which you work or live.
    • Doing this activity in person is strongly recommended. If you choose to
    • do this activity other than in person, you must include a copy of any
    • correspondence you use to accomplish it.
    • You must provide the name of this person and the building in which s/he
    • works. You must also provide me with some way of remotely contacting
    • this person (phone number or email address preferred).
            • Submit via hardcopy
            • Submit in next class ( no late homework accepted)
            • Your signature must be on the submitted version
    Homework 1
    • Find 2 examples of SOWs to study and submit as part of the assignment. Answer the following questions:
          • What is the expected outcome required by each SOW (describe briefly )?
          • Were the formats similar? If not, what were some of the major differences between them?
          • Was the content of each similar even if the formats were not? What were some of the similar content items? What were some of the different content items?
          • Who (organization) wrote each SOW? Who was the SOW being given to do the work to develop the expected outcome (if you can tell)?
          • Submit by hardcopy a copy of each SOW and the answers to the questions.
          • Submit in next class ( no late homework accepted)
    Homework 1
    • What is the purpose of an SOW?
    • Who is accountable for creating the SOW?
    • What are the “typical” contents of a SOW?
      • Narrative description of the work/deliverables required for the project contract
      • The “customer” who requires the final output
      • User-level requirements
    Statement of Work (SOW)
    • What is a User-Level Requirement?
      • I (the customer) want the output to do x
      • I (the customer) want the output to be like y
    • How is a User-Level Requirement different than other requirements?
      • Focus on the need rather than the how need fulfilled
      • Often less detailed than requirements used to design/develop output
    User-Level Requirements
    • Who is accountable for creating project charter?
      • There is a project (formal authorization)
      • The project’s output will be “x” (product description)
      • The business need fulfilled by the project is “y”
      • The project manager will be <name>
      • The project manager has accountability & responsibility
      • The project will have listed constraints & assumptions
      • The Project Sponsor
    • What does charter tell the project team & others?
    The Project Charter
    • Break into support groups
    • In 10 minutes, create a project charter for the paper airplane project
    • If you have a question the answer to which all groups might need to know, please ask it
    • Turn in a copy of the charter with all group members’ names affixed
    Project Charter
    • Detailed description of the external perceptions of the desired outcome of project (triple constraint…transforming into quadruple constraint)
    • Can be several “levels” or “layers” of requirements, each with successive levels of detailed (recommended) or tailored to a different audience (be careful).
    • One of most reliable methods of ensuring project success is to have (& widely communicate) correctly & fully documented requirements
    Requirements
    • Need to be clear , complete , reasonably detailed , cohesive , attainable , and testable
    • Take care to involve as many of a project’s stakeholders in requirements development as feasible. Anyone who could later derail the project should her/his expectations not be met should be included as a customer here.
    • Quality Function Deployment (QFD) is a good tool for requirements development if you have available time to use it
    Requirements
    • Will:
    • Shall:
    • Should:
    Used to indicate a factual statement or assumption “ This class will end” “This class will end on time” Used to direct mandatory action “ The student shall complete the homework” Synonyms include must, required to, necessary to Used to request non-mandatory work “ The student should purchase supplementary reading materials” Requirements Semantics
    • Your design/build firm has been contracted to act as general contractor design and install a new parts depot at 333 W 78th St in Bloomington, MN for the Avanti Corporation of America. The company is based in Norcross, GA and has just launched the Studebaker XUV into the American automobile market. It also currently sells two models of the Avanti sports car originally introduced in 1963 by the original Studebaker Corporation of South Bend, IN.
    • At the initial meeting with your team, the client told you that it already has chosen the site.
    • The rough particulars of site and building are:
    • Facility to be used for automobile parts (14,000 parts) warehousing & some light assembly
    • 100,000 total square feet – 200’ x 500’ (lot size is 500’ x 1000’, details as attached)
    • One story
    • Steel frame
    • Concrete pre-fabricated exterior
    • Steel stud & drywall interior
    • Two closed offices (each 15’ x 15’)
    • One conference room (20’ x 20’)
    • Lunch room (20’ x 20’)
    • Restrooms (1 each for male and female)
    • Loading dock (2 delivery stalls)
    • Air conditioning & heating plant required to support entire space
    • Security & fire suppression systems required to support entire space
    • On-site parking required – 2 visitor spaces, 5 employee spaces 
    Statement of Work (SOW)
    • Break into support groups
    • In 5 minutes, create as detailed an SOW as possible for building a 3-car residential garage
    Statement of Work (SOW)
    • These are the measurements which the Project Manager (and hopefully others) will use to judge whether the project has been successful:
      • Along the way
      • When the project is complete
    • Why is this important? If you have:
      • a car that gets 30 mpg,
      • 10 gallons of gas in the car
      • $50 for gas @ $2/gallon
      • One day
    How far could you go? To what city could you get? Project Evaluation Criteria
    • To be manageable, criteria must originate from project goals & objectives (there is an important difference between those concepts, by the way)
      • Goal
      • Objective
    • From where do the goals and objectives – and then eval criteria - come?
    • What manageable targets should the evaluation criteria cover? (hint: TC)
    • Do they need to be approved once they’ve been identified? If so, by whom?
    Project Evaluation Criteria
    • PM gather personnel on the internal team
    • Meet to discuss the initial requirements-generation part of the project (a mini-project of its own, for the most part)
      • Establish objectives
      • Review the process to be followed
      • Determine the information to be obtained
      • Establish team member data-gathering/other roles to perform
    Small Team Kickoff Meeting
    • What’s the difference?
      • Goal: very broad in scope, only the final outcome measurable
      • Objective: a clearly measurable outcome, typically related to triple/quadruple constraint
      • Task: A specific, measurable activity required to accomplish the objective(s)
    • Determining which is which is often as much art as science
    Goals, Objectives (and Tasks)
    • Requirements are the detailed description of the external perceptions of the desired outcome of the project (triple constraint…transforming into quadruple constraint)
    • Requirements need to be clear, complete, reasonably detailed, cohesive, attainable, and testable
    Defining Requirements
    • One of the most reliable methods of ensuring project success is to have (and widely communicate) correctly and fully documented requirements
    • Take care to involve as many of a project’s stakeholders in requirements development as feasible. Anyone who could later derail the project should her/his expectations not be met should be included as a customer here.
    • Quality Function Deployment (QFD)
    Defining Requirements
  • Project Planning Project Planning is Extremely ITERATIVE Why? Because projects are progressively elaborated! Concept Note: Rolling Wave Planning
    • SOW, Requirements Documents, and charter (and other documents) “talk to each other”
    • Acceptance Criteria – how will the customer/you know when the project is done?
    Reflective Listening
  • Requirements Analysis/Agreement
    • Review SOW, specs, drawings for completeness
    • Document issues in Requests For Information (RFI)
    • Get customer addendums and do it all again until you’re satisfied
    • SOW says: “3.0 No more than three folds”
    • Requirements Document (Rdoc) says:
        • “ Requirement 3.0: No more than three folds
        • 3.1 Direction of folds not specified
        • 3.2 That any/all folds must be in parallel direction not specified
        • 3.3 That folds must be all in same direction not specified ”
    • From where did the Rdoc get the added detail?
    Reflective Listening Example
    • Differentiated by:
      • Whether PM coordination is vertical or horizontal
      • How much authority a PM has
    • On a linear continuum from functional to projectized
      • Functional: silos, staff reports to a mgr, PM reports to a mgr
      • Matrix: staff report to both mgr and PM
        • Weak Matrix
        • Balanced Matrix
        • Strong Matrix
      • Composite: same as matrix, but there is a “functional” PM group
      • Projectized: everyone reports to a PM (but…)
      • Mixed: Some projectized, some matrix
    • Important because it affects how a PM manages
    Organization Types
  • Project control CEO Engineering Manufacturing Human Resources Finance Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Organization Types - Functional
    • Advantages
      • technological depth
      • High degree of standardization and control in each silo
    • Drawbacks
      • lines of communication outside functional department slow
      • technological breadth
      • project rarely given high priority
    Organization Types - Functional
  • Project control CEO Engineering Manufacturing Human Resources Finance Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff In a Balanced Matrix, one staff is replaced by a PM In a Composite Matrix, PM has its own functional organization Organization Types - Matrix
    • Advantages
      • flexibility in way it can interface with parent organization
      • strong focus on the project itself
      • contact with functional groups minimizes projectitis
      • ability to manage fundamental trade-offs across projects
    • Drawbacks
      • violation of the Unity of Command principle
      • complexity of managing full set of projects
      • conflict
    Organization Types - Matrix
  • Project control CEO PM 1 PM 2 PM 3 PM 4 Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff There is likely to be a separate network of functional managers A Mixed Organization is a mix of projectized, matrix/functional Organization Types - Projectized
    • Advantages
      • Effective and efficient for large projects
      • Resources available as needed
      • Broad range of specialists
      • short lines of communication
    • Drawbacks
      • May require high levels of duplication for some specialties
      • Expensive for small projects
      • Specialists may have limited technological depth
      • No “home” for staff at end of project
    Organization Types - Projectized
    • Project Management Office (PMO)
      • Not very standard in objective/work
      • May be responsible for providing support functions (project coordination, other admin functions), to providing “process ownership” and training, to actually being responsible for project results
    • Sometimes known by other names
      • Project Management Process Group
      • Project Management Center Of Excellence
    Organization Types - PMO
  • Project Management Institute, 2000, PMBOK, p. 19 Full-time Full-time Part-time, if any Part-time, if any Part-time, if any PM Admin Staff Project Manager/ Program Manager Project Manager/ Program Manager Project Manager/ Project Officer Project Coordinator/ Project Leader Project Coordinator/ Project Leader Common PM Titles Full-time Full-time Full-time Part-time Part-time PM Role 85-100% 50-95% 15-60% 0-25% Virtually None % assigned personnel full-time on project work High/Total Moderate/High Low/Moderate Limited Little/None PM Authority Projectized Strong Matrix Balanced Matrix Weak Matrix Functional Organization Types - Summary
    • Organization types typically evolve,
    • rather than get “selected”
    • Some factors influencing the evolution
            • 1. Technology
            • 2. Finance and accounting
            • 3. Communication
            • 4. Responsibility to a project/product
            • 5. Coordination
            • 6. Customer relations
    Organization Types - Selection
    • Why would an organization choose functional form over projectized form?
    • Why would an organization choose strong matrix from the matrix options?
    Organization Types - Selection
    • Once the SOW and charter are available, PM begins the process of creating the Project Plan.
    • The Project Plan is a document that essentially:
          • Helps organize the project planning process
          • Helps communicate project planning information
          • Puts all project planning information into one, easily-obtained location
    • Why is is important to have a PM process?
    Project Plan
    • Overview
      • brief description of project
      • deliverables
      • milestones
      • expected profitability and competitive impact
      • intended for senior management
    • Objectives
      • detailed description of project’s deliverables
      • project mission statement
    • General Approach
      • technical and managerial approaches
      • relationship to other projects
      • deviations from standard practices
    • Contractual Aspects
      • agreements with clients and third parties
      • reporting requirements
      • technical specifications
      • project review dates
    Elements of a Project Plan
    • Now that you know what a Project Plan is, is for, and what specific concept areas make up its contents, we’re going to move on.
    • Keep those concepts in mind, however, as we move along.
    • The tools you learn during the next few weeks feed the Project Plan (they become the contents).
    Project Plan
    • What is a WBS?
      • deliverable-oriented grouping of project components that organizes and defines the total scope of the project
    • What is a DELIVERABLE?
    Work Breakdown Structure
    • What a WBS does:
      • Break the work down into smaller, more manageable parts (what does “more manageable” mean?)
      • Clearly/visually show the full scope of the project
        • Work not in the WBS is OUTSIDE scope of the project
        • Aids development/confirmation of common scope definition/understanding
    Work Breakdown Structure
    • Break down the project level either by functional area/activity or by timeline area/activity (Gozinto Analysis)
    • Can be graphical or numbered text (outline) format
    • Each descending level represents an increasingly detailed description of project deliverables
    Work Breakdown Structure
    • How to create it:
      • Break the work down (decompose the work) into smaller, more manageable parts (Identify deliverables)
        • Until sub/deliverables are defined in sufficient detail to support mgmt (can adequate duration & cost estimates be developed?)
        • Each descending level represents an increasingly detailed description of project deliverables
    • ID tangible, verifiable constituent components of deliverables (to facilitate performance measurement)
    • Verify correctness of the decomposition
    Work Breakdown Structure
  • The following activities must be accomplished to complete an office remodeling project: Create a WBS using this information Activity Estimated Duration (Days) Procure Paint 2 Procure New Carpet 5 Procure New Furniture 7 Remove Old Furniture 1 Remove Old Carpet 1 Scrub Walls 1 Paint Walls 2 Install New Carpet 1 Move in New Furniture 1 WBS Exercise
    • 1.0 Office Remodel Project
    • 1.1 Procure
    • 1.1.1 Procure Paint
    • 1.1.2 Procure New Carpet
            • 1.1.2.1 Request Bids
            • 1.1.2.2 Purchase
            • 1.1.2.3 Receive Carpet
    • 1.1.3 Procure New Furniture
    • 1.2 Prepare
    • 1.2.1 Remove Old Furniture
    • 1.2.2 Remove Old Carpet
    • 1.2.3 Scrub Walls
    • 1.3 Install
    • 1.3.1 Paint Walls
    • 1.3.2 Install New Carpet
    • 1.3.3 Move in New Furniture
    1. Create a WBS 2. Is this (at right) organized by project life cycle phase or by function? 3. What would happen when decomposing deliverables far in the future? WBS Exercise
  • 1.0 Office Remodel Project 1.1 Procure 1.2 Prepare 1.3 Install 1.1.1 Procure Paint 1.1.3 Procure New Furniture 1.1.2 Procure New Carpet 1.1.2.1 Request Bids 1.1.2.2 Purchase 1.1.2.3 Receive Carpet 1.1.1 Remove Old Furniture 1.1.3 Scrub Walls 1.1.2 Remove Old Carpet 1.1.1 Paint Walls 1.1.3 Move In New Furniture 1.1.2 Install New Carpet WBS Exercise
    • Ok, up to now you’ve learned to:
        • Receive the customer specification
        • Officially start the project
        • Get the requirements right
        • Figure out who the project stakeholders are and what they want
        • Break the work down
    • So now what?
    • Put the work into a flow/logical sequence
    • Identify and assign resources
    • Create a schedule plan
    Network Diagrams
    • How does PM put activities in logical order?
      • Activities progressively dependent upon each other
      • Start at the project end and work backward
      • Start at the project start and work forward
    • Purpose
      • Gives schematic display of the logic relationships of project activities
        • Note: Sequence order – NOT time order
      • Helps find which activities most important according to current plan
    Network Diagrams
    • The Language of Network Diagrams:
      • Task: specific work items that require resources
      • Activity: Synonymous with task, but may also be task groups
      • Event: Zero-time, zero-resource state resulting from completion of one or more predecessor activities
      • Milestone: Zero-time, zero-resource marking point (significant progress, etc)
      • Network: Diagram of nodes & lines (arrows) showing work flow logic
      • Path: Series of connected activities between 2 or more nodes
    Network Diagrams
    • Dependencies
      • Finish-Start: successor can’t start until predecessor finishes
      • Finish-Finish: successor cannot finish until predecessor finishes
      • Start-Start: successor can’t start until predecessor starts
      • Start-Finish: successor can’t finish until predecessor starts
    • AON vs AOA
      • AON = Activity on Node
      • (Precedence Diagramming – PDM)
      • AOA = Activity on Arrow
      • (Arrow Diagramming – ADM)
    Network Diagrams
  • Network Diagram Example - AON
  • Network Diagram Example - AOA
    • It really ISN’T project planning, but…
      • It is what is often done in practical settings
      • It is network diagramming
      • It leads to the initial stages of scheduling
    • How To:
      • Group (project team) activity
      • One task per sticky note
        • Task name
        • Task description
        • Estimated duration (see estimating duration)
      • Arrange sticky notes in network diagram form
      • Draw/string arrows to indicate dependencies
      • Rearrange, add tasks as required
    Sticky Note Project Planning
  •  
  • The following activities must be accomplished to complete an office remodeling project: Activity Estimated Duration (Days) Procure Paint 2 Procure New Carpet 5 Procure New Furniture 7 Remove Old Furniture 1 Remove Old Carpet 1 Scrub Walls 1 Paint Walls 2 Install New Carpet 1 Move in New Furniture 1 Network Diagram Example
  •  
    • THE WORK:
      • Tim shall walk across the room, turning off the projector along the way, & then write “The Instructor Is Only As Good As His or Her Students” on the chalkboard
    • YOUR TASK:
      • Individually estimate (write it) how long (seconds) the work will take
          • (30 seconds)
      • B) In Groups, estimate (write it) how long the work will take
          • (3 minutes)
    • How did your individual estimates compare to group estimates?
    • Why?
    • What strategies did you use to derive the estimates?
    • Consistency of estimate…
    Estimating Activity Duration
  • 1. Heuristic : Activity length between 0.5% and 2% of project duration. E.G. If an activity takes a year, each activity should be between a day and a week. 2. Critical activities that fall below this range should be included. 3. If the number of activities is very large (say, above 250), consider dividing the project into subprojects, and individual schedules developed for each. Why? Estimating Activity Duration
    • A next step beyond WBS for process of assignment of resources
    • Must have a good “catalog” or “database” of resource capabilities
    • Use functional managers to assign resources
    Responsibility Assignment
    • CPM = Critical Path Method
      • Method used to determine the longest time for the project to take according to plan
    • Critical Path
      • Path that, if delayed, will delay completion of project
      • The series of activities that determines project duration
      • The longest path through the project
      • Change in start or finish time of a critical task will affect project end
    • Critical Time
      • Time required to complete all activities on the critical path
    Network Diagrams - CPM
    • Calculate float to determine which activities have the least scheduling flexibility
    • Float = amount of time a task may be delayed without impacting project finish date
        • (a/k/a total slack)
    • Visual Method:
      • Find EVERY path
      • Add each path
      • Longest path is critical path
    Network Diagrams - CPM
  • Find the critical path and the critical time CPM Example
  • Bus Shelter Construction Example Job Name Duration Resources Predecessor(s) 1 Shelter Slab 2 2 5 2 Shelter Walls 1 1 1 3 Shelter Roof 2 2 2,4 4 Roof Beam 3 2 2 5 Excavation 2 3 6 Curb and Gutter 2 3 5 7 Shelter Seat 1 2 4,6 8 Paint 1 1 7 9 Signwork 1 2 2,6 CPM - Practice
  • 2 2 0 2 1 1 1 1 0 3 2 0
  • Bus Shelter Construction Critical Path Method Results ACT NAME DUR RES EARLY LATE FLOAT CUR start CRIT PATH ST FN ST FN TOT FREE 1 Shelter Slab 2 2 2 4 2 4 0 0 2 YES 2 Shelter Walls 1 1 4 5 4 5 0 0 4 YES 3 Shelter Roof 2 2 8 10 8 10 0 0 8 YES 4 Roof Beam 3 2 5 8 5 8 0 0 5 YES 5 Excavation 2 3 0 2 0 2 0 0 0 YES 6 Curb and Gutter 2 3 2 4 6 8 4 1 2 NO 7 Shelter Seat 1 2 8 9 8 9 0 0 8 YES 8 Paint 1 1 9 10 9 10 0 0 9 YES 9 Signwork 1 2 5 6 9 10 4 4 5 NO
    • Since critical path activities cannot be delayed without causing the project to be delayed, it follows that activities not on the critical path CAN be delayed without delaying the project.
    • BUT – only within limits.
    Slack
    • Critical Path activities have 0 slack
    • The amount of time a non-critical path task may be delayed without delaying the project end (or internally to the network, a later task) is called
      • slack or float .
    Task 1 Task 2 Task 3 Start End 3 3 3 Slack
    • Calculated by:
      • LST – EST = LFT – EFT = slack
        • Where:
          • LST = Latest Start Time
          • EST = Earliest Start Time
          • LFT = Latest Finish Time
          • EFT = Earliest Finish Time
    0 0 0 5 5 5 5 5 6 11 11 11 Forward Pass Backward Pass 1 5 6 7 8 9 10 11 2 4 3 0 4 5 6 7 10 11 12 1 3 2 Number Convention Slack Task LST LFT EFT EST Displayed by: S T A R T Task A Task B Task C END 5 6 6
    • PERT = Program Evaluation Review Technique
    • Formula calculation using std dev of project completion date using weighted averages of the durations
    • Uses 3 input estimates of duration to counter uncertainty in the individual activity durations (CPM only uses 1)
      • Low duration (fastest likely)
      • Medium duration (most likely)
      • High duration (longest likely)
    PERT
    • Sometimes called “Method of Moments”
    • Network Diagrams often mistakenly called PERT Charts
    • Examples of projects in which PERT is good?
    PERT
  • MS Project PERT representation Network Diagrams - PERT
    • Knowing what you have learned up to this point in the course:
    • What are some likely things that can cause project failure? (Impact, Probability)
    • What are some things you can try as PM to overcome the possible, typical causes of project failure?
    Questions
    • What is scheduling?
      • Bringing together as much information as is known at a given time regarding tasks, tasks sequence, and task durations
    Scheduling
    • What is the purpose of scheduling?
      • Helps PM/Team determine project task order, time requirements, personnel requirements/choices, budget, etc.
      • “ Whole project” big picture
      • Visual representation
      • “ One Stop” Convenience
      • Monitor/Control
        • What If? Analysis
        • Risk ID/Assessment
    Scheduling
    • How is scheduling done?
      • What do we know already?
      • What do we need to find out?
      • How should we go about getting that info?
    Scheduling
    • What do we know already?
      • Activities Identified (WBS)
      • Activities Sequenced (Network diagram)
    Scheduling
    • What do we need to find out?
      • Estimates of how long the tasks will take
    • How should we go about getting the info?
      • Personnel assignments
      • Expert input
      • Historical information
    • Can/should PM do this on her/his own?
    Scheduling
    • Who/What else could/should be involved?
      • Impacted by Organizational Structure
      • Functional Managers?
      • Expert Staff?
      • Resource skills database?
      • Other PMs?
      • Historical records?
    Resource Planning
    • At what level should PM’s schedule be?
      • Top-down estimation
      • Bottom-up estimation
    • How do you think the organizational structure of the company affects this effort?
    Scheduling
    • A next step beyond WBS for process of assignment of resources
    • Must have a good “catalog” or “database” of resource capabilities
    • Use functional managers to assign resources
    Responsibility Assignment
    • Used as a high-level summary
    • Typically Zero-Time Events
    • Easier to understand for managers Sometimes also called Waterfall Diagram because of the way the milestones tend to “flow” downward over time in the chart
    • Milestones may be events “inside” or “outside” schedule
    Milestone Chart
  • Class start Exam 2 Exam 3 Grades posted Exam 1 Jan Feb Mar May Apr CE 4101W-01: Spr 2005 Milestone Chart
  • Class start Exam 2 Exam 3 Grades posted Exam 1 Sep Oct Nov Jan Dec CE 4101W-01: Fall 2003 9/4 10/7 11/4 12/9 12/19 Labor Day 9/3 Milestone Chart
    • Break into support groups
    • 5 minutes
    • Using the course syllabus, create a milestone chart of the course assignments and exams
    Milestone Chart - Example
    • Used to represent the timing of tasks
    • Column 1 = task, each additional column is a time period
    • Each task on its own row
    • Expected time for each task represented by a horizontal bar
    • Left end of the bar marks the expected beginning of the task
    • Right end of the bar marks the expected end of the task
    • Tasks may run sequentially, in parallel, or overlapping
    • Milestones (tasks with no time) may be included (represented by diamonds, triangles, etc)
    Gantt Chart
  • Task 1 Task 3 Task 4 Task 5 Task 2 t1 t2 t3 10/7 Gantt Schedules
  • Task 1 Task 3 Task 4 Task 5 Task 2 t1 t2 t3
    • Project progress is marked by filling in a task bar
    75% 10/7 Gantt Schedules
  • Possible Modifications:
    • Show dependencies (this example)
    • Show resource assignments
    • Task roll-ups (this example)
    Modified Gantt Chart
  • Better way to do task ID notation Modified Gantt Chart
      • Draw two network diagrams (AON, AOA)
      • Determine the critical path (CPM)
      • Draw a Gantt AND a Modified Gantt chart
    Break into support groups…In 10 minutes: Scheduling - Practice
    • Which ones are there?
      • Microsoft Project
      • ABT Project Manager Workbench
      • Primavera Tools (SureTrak, Expedition, etc)
      • MS-Office tools (Exel, Word, Access, etc)
    • What are they good for?
      • Automation of tasks
      • Handling large numbers of tasks
    • Resource leveling
      • “ Any form of network analysis in which scheduling decisions are driven by resource management concerns (e.g. limited resource availability or difficult to manage changes in resource levels).”
      • Resource Histogram
    • AMS RealTime
    • Scitor Project Scheduler
    • Artemis
    • Many Others
      • Power to handle complex tasks
      • “ What if” Analysis
    Scheduling Computer Tools
    • Example Schedule in Microsoft Project
    • Use information from previous exercise
    Scheduling Computer Tools
    • Project Scheduling Tools have the option of setting project calendars
      • Number of hours/workday
      • Number of workdays/week
      • Default setting is *usually* 7 8-hour days/week
    Project Calendars
    • Why is it important to set your calendar for the correct days of the week, correct hours per day, and correct holidays?
    • How should overtime be factored into the project (tool) calendar?
    Project Calendars
    • What is it (TOC)?
      • Real systems must have at least one constraint – a factor that limits the system from getting more of whatever it is trying to achieve
      • To achieve more, one must manage the constraint(s)
      • TOC models system as a chain. To improve strength of a chain, must identify weakest link & concentrate efforts on strengthening weakest link
    Theory Of Constraints
    • TOC Goals:
      • Increase system throughput
      • Reduce work in process (WIP)
      • Decrease costs
      • Reduce lost income by achieving schedule prediction 90+% of time
    Theory Of Constraints
    • Processes & Tools
      • Problem-solving tools - the Thinking Processes (TP) – logically/systematically answer 3 questions needed for process of on-going improvement: &quot;What to change?&quot;, &quot;To what to change?&quot; & &quot;How to cause the change?&quot;;
      • Daily management tools - taken from Thinking Processes - can be used to significantly improve vital management skills, such as communication, effecting change, team building and empowerment
      • Proven solutions - created by applying Thinking Processes to specific application areas, such as production (as introduced in The Goal ), distribution ( Its Not Luck ), Marketing/Sales ( Its Not Luck ), project management, & setting company direction, to name only a few.
    Theory Of Constraints
    • How does it work?
      • Identify the System's constraints.
        • Analyze process to identify task/activity limiting system productivity
      • Decide how to exploit the system's constraints.
        • Modify/redesign task/activity to perform work more effectively/efficiently
      • Subordinate everything else to the step 2 decision.
        • Direct all efforts to improving performance of constraining task/activity &
        • other tasks/activities directly affecting constraining task/activity
      • Elevate the system's constraint .
        • Add capacity to increase (elevate) output of constraining task/activity
      • If a constraint has been broken in previous step, go back to step 1 but do not allow inertia to cause a new constraint
        • This sets up a process of ongoing improvement
    Theory Of Constraints
    • How to identify constraints?
    • Look for bottlenecks
    • Can stem from physical constraints or policy constraints
      • Physical :
      • Machine, people, facilities, tangible sources
      • Easier to identify and break
      • Policy :
      • Rules, training, measures (RTM)
      • More difficult to identify and break
    • Identify possible constraints in a building project
    Theory Of Constraints
    • Get realistic Commitments
    • Eliminate multi-tasking
    • Manage constraints
    • Manage Uncertainty
    Critical Chain
    • Rules:
      • Aggressive estimates
          • Planned pad hierarchy
          • Parkinson’s Law
          • Student Syndrome
      • Include dependencies other than time in management focus
      • No multi-tasking on critical chain
      • Relay-runner ethic/system
      • Report early finishes
      • Aggregate safety (buffers) and manage to the buffers
    Critical Chain
  • Feeder Task 1 Feeder Task 2 C.C. Task 1 C.C. Task 3 Feeding Buffer C.C. Task 2 C.C. Task 4 Project Buffer End Planned Pad Hierarchy
    • What is Project Communication?
      • Exchanging project-specific information from sender to recipient
      • Communication is best done when it is:
        • Recipient-focused
        • Done to serve an end
    Communication Planning
    • What is Communications Planning?
      • Determining the information and communications needs of the stakeholders:
        • Who needs information?
        • What information do they need?
        • When will they need that information?
        • What options do you have to give them the information and which way(s) are best?
    Communication Planning
    • What’s the purpose of it?
    • How is it done?
    • Why not just do it “on the fly” instead of early/in the project planning stages?
    • Does it change with scale (duration, cost, complexity) of project? Other scales?
    Communication Planning
    • Who needs information?
    • Do internal stakeholders need more or different information than external stakeholders? Explain…
    Communication Planning
    • What data/information do they need?
    • What’s the difference between “data” and “information?”
    Communication Planning
    • Communication Management Plan:
      • Methods/procedures for info collection/storage structure
      • Details of data/info distribution structure for various data/info types
      • Description of data/info to be distributed
      • Schedules showing when each type of communication is anticipated to be produced
      • Methods for accessing data/info between scheduled communications
      • Methods for updating/refining the CMP over time
    • Review PMBOK Chapter 10 !
    Communication Planning
    • When will they need that information?
      • Before “event”
      • During “event”
      • After “event”
      • Periodically vs. ad hoc
    Communication Planning
    • What options do you have to give them the information and which way(s) are best?
      • Reports
      • Briefings
      • Status meetings
      • Email
      • Others?
    Communication Planning
    • What options do you have to give them the information and which way(s) are best?
      • Reports
      • Briefings
      • Status meetings
      • Email
      • Others?
    Communication Planning
    • Project: Student going to school
    • Stakeholder 1 2 3 n
    • Data/Info Needed?
    • Main Distrib Method(s)?
    • When Distrib?
    • How Distrib?
    • Methods/Procedures for info collection/storage
    • Methods for data access between scheduled communications
    • Methods for updating/refining CMP over time
    • Who is responsible?
    • When will it be done?
    Communication Planning - Example
    • Submittal
      • A specific artifact/item to be reviewed for approval, archived, etc.
    • Transmittal
      • A memo that outlines/explains submittals included with the transmittal and the actions required by the recipient
    Typical Project Documents
    • There are no world-wide formats for these documents.
    • Formats will be:
      • Company specific
      • Recipient specific
      • Industry specific
      • Project specific
    Typical Project Documents
    • Is it likely that you will be able to do all the work with internal resources?
    • How do you decide what to outsource?
    • How do you procure the outsourced work?
    Procurement Planning
    • Procurement Management Plan : Describes how procurement process – from solicitation planning through contract closeout – will be managed
        • Types of contracts to be used
        • If independent estimates to be used, who will prepare them and when
        • If there is a procurement organization in your company, what actions PM/Project Team can take independently
        • Where procurement documents can be found
        • How each contractor will be managed
        • How procurement processes will coordinate with other PM processes
    • Includes your SOW to the contractor
    Procurement Planning
    • Expert Judgment
        • Do you have the right resources for the job?
        • Do you have the right skills to do a quality job?
        • Experts might include: internal experts, other units, consultants, professional and technical associations, other industry groups, etc.
    • Opportunity Cost Analysis & Cost/Benefit Analysis
        • Can we use internal resources more productively than this job?
    • Lease vs. Buy Analysis
    Make or Buy Analysis
    • What is it?
    • Why is important?
      • A well run business or project doesn’t have a great deal of excess (i.e. unallocated) cash/other resources lying around
      • Projects compete with one another for resources
      • Goal is to optimize use of limited supply
      • Requires making trade-offs
      • The cost of making a trade-off
    Opportunity Cost
    • Cost Benefit Analysis is a tool to evaluate options
      • Is it worth spending $5000 to crash a schedule and gain 5 days?
      • Is it worth dropping a product feature from this software release in order to be able to achieve the baseline schedule release or would it be better to keep the feature and slip the scheduled release by 20 days?
    • You first need to have the costs and benefits
      • Costs and benefits must be in a quantifiable unit (dollars, production units gained or lost, days, etc.)
      • Costs do NOT have to be in equivalent units to Benefits
    • You also need to know the acceptable target tradeoff range(s) if there are absolute values (otherwise, rely on relative comparisons)
      • I once caught a fish this big | 
    Cost/Benefit Analysis
  • Lessee : The one receiving the capital Lessor : The one who owns the capital A lease “acts like” an amortized purchase – for both lessor and lessee
    • Why lease instead of buying?
      • Avoid technical obsolescence
      • Tax advantages
      • Asset/payment flexibility
    • Why buy instead of leasing?
      • Possibility of salvage value + value obtained from asset use being greater than amortized cost
      • Tax advantages
    Buy vs. Lease
    • Firm Fixed Price
        • Buyer pays seller a set amount regardless of seller costs
    • Fixed Price Incentive Fee
        • Buyer pays seller a set amount & seller can earn additional fee if performance criteria are met
    • Cost Plus Fixed Fee
        • Buyer reimburses seller costs plus a fixed profit fee
    • Cost Plus Incentive Fee
        • Buyer reimburses seller costs & seller earns profit if performance criteria met
    • Time & Material (T&M)
        • “ Hybrid” of cost reimbursement and fixed fee
    • Purchase Order
    • Who has the risks in each type?
    Main Types of Contract
    • Send bid/proposal request documents to prospective vendors
      • Presumes you have a sufficient list of applicable vendors
      • Distribution may be direct, via bidder conference, via advertising, etc.
      • Bid & Quote used when selection based on price
      • Proposal used when other than price (tech skills, etc) paramount
      • Request for Bid (RFB), Invitation to Bid (IFB)
      • Request for Quote (RFQ), Invitation to Quote (IFQ)
      • Request for Proposal (RFP), Invitation for Proposal (IFP)
      • Include SOW, description of required response/response format, explanation of pro forma contract terms and agreement structure
    Solicitation
    • Obtain bids/proposals from sellers
    • Evaluate bids/proposals & cycle thru SOW updates
    • Select bidder (based on criteria), negotiate, & award contract
    Solicitation
    • You are the owner of a small excavation contracting business that has a multi-year T&M contract with a customer. The contract specifies the rate of pay for personnel types on the project.
      • Qualify the risks you face related to management of the contract.
      • Qualify the risks the buyer faces.
    Contracts
    • What does the word “quality” mean?
      • Features and functionality
        • Scope requirements filled and working properly
        • Conformance to specification or design
      • Fitness for use
        • Degree of excellence at an acceptable price
        • Control of variability at an acceptable cost
        • How well the product fits patterns of user preferences
    • Why is it important for the PM to focus on quality?
      • Driver of customer satisfaction: Triple/Quadruple Constraint
        • Time (schedule)
        • Cost (budget)
        • Performance (specifications/quality)
    Quality For Project Managers
    • What is the cost of quality?
      • Prevention costs – costs incurred to prevent failure and minimize
      • appraisal costs
      • Appraisal costs – discovering the condition of the process or
      • product
      • Internal Failure costs – costs due to raw materials, WIP, or finished goods not being manufactured right 1st time
      • External Failure costs – costs from customer discovering a lack of
      • product quality
    Quality For Project Managers
    • Management’s Role:
      • Ask questions:
        • What is next?
        • What can I do?
      • Preach
      • Teach
      • Be an example
      • Provide resources
      • Seek never-ending improvement
      • Follow Deming’s 14 points
    • It is the PM’s role to be a leader of quality in your projects
    Quality For Project Managers
    • Quality Systems
      • TQM (Kaizen/Continuous Improvement)
      • Six Sigma
      • ISO standards
      • Quality Circles
      • Minnesota Quality Award
      • Baldrige Award
      • Deming Prize
    Quality Systems You Can Use
    • TQM (Total Quality Management)
      • Objective: Improve quality by analyzing the whole “production process” using quantitative and qualitative information
      • Method:
        • Clear, visible leadership from top
        • Ensure that the system is ‘known’
        • Use statistical measurements to monitor the system
        • Use statistical measurements to make changes only when needed and relatively predictable
        • Use statistical measurements to monitor the changes
        • (PLAN, DO, CHECK, ANALYZE)
    Total Quality Management
    • Create constancy of purpose toward improvement
    • Adopt the new philosophy
    • Cease dependence on inspection.
    • Minimize total costs
    • Constant and perpetual improvement
    • Institute training
    • Institute leadership
    • Drive out fear
    • Break down internal barriers
    • Eliminate slogans, targets etc.
    • Eliminate management by objective
    • Remove barriers
    • Institute program of education and self-improvement.
    • Everybody’s job is to accomplish the transition.
    • - W. Edwards Deming
    Fourteen Points of Quality
    • Lack of constancy of purpose to improve products & services by providing resources for long-term planning, for research, & for training
    • An emphasis on short-term profits & quarterly dividend
    • Individual performance evaluations through merit ratings & annual reviews
    • Managers who are highly mobile & hop from company to company
    • Management use of numbers & figures that are visible & available with no thought of info that may be needed, but unknown or hidden
    • Excessive medical costs
    • Excessive legal liability costs, which can be swelled by lawyers who work on “contingency” fees
    Deming’s 7 Deadly Diseases
  • F our Basic Principles
    • Develop a Strong Customer Focus
    • 2. Continually Improve All Processes
    • Identify Them
    • Improve Them (Plan, Do Check, Act)
    • 3. Involve Employees
    • 4. Mobilize Both Data & Team Knowledge to Improve Decision Making
    • (The Memory Jogger: A Pocket Guide of Tools for Continuous Improvement and Effective Planning)
    Continuous Quality Improvement
    • Six Sigma
      • Objective:
        • A comprehensive and flexible system for achieving, sustaining, and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes.
        • Encompasses a broad array of business best practices and skills (some advanced, some common sense) that are essential ingredients for success and growth.
        • Applicable to all types of organizations
        • As much about people excellence as technical excellence
      • Method:
        • There are many “Six Sigma Ways.” – there is no fixed prescription
        • Sort of a culmination/combination of various other systems
    Six Sigma
    • A genuine focus on the customer
    • Data- and fact-driven management
    • Process focus, management & improvement as an engine for growth & success
    • Proactive management
    • Boundaryless collaboration
    • A drive for perfection, and yet a tolerance for failure
    Six Sigma – Essential Themes
  • Mc-Graw Hill, 2000 Six Sigma
    • Identify core processes & key customers
    • Define customer Requirements
    • Measure current Performance
    • Prioritize, analyze & implement improvements
    • Expand & integrate six sigma system
    • DMAIC: Define, Measure, Analyze, Improve, Control
    Six Sigma Roadmap
    • Continuous Improvement
    • Process Design/Redesign
    • Analysis of Variance
    • Balanced Scorecard
    • Voice of the Customer
    • Creative Thinking
    • Design of Experiments
    • Process Management
    • Statistical Process Control
    Six Sigma – Methods/Tools
      • ISO standards (900x, 1400x, etc.)
      • Objective:
        • Improve processes & reduce process variation
      • Method:
        • “ Tell me what you’re going to do. Do it. Show me that you did it.”
        • Set requirements for process performance in various operational areas
        • Company establishes process to comply with the ISO specifications
        • Registrar evaluates company ISO system
          • ISO system meets/exceeds ISO standard, company is “certified”/”registered”
          • ISO system does not meet/exceed, company goes back to previous step
        • Company uses periodic audits to validate process validity and adherence
          • Internal
          • External (registrar)
        • Failures found during audits must be dealt with via a process established as part of the company’s ISO system
    ISO Standards
      • Objective:
        • Improve product quality by soliciting group input from workers (and sometimes customers and/or users) in order to improve product process, features, etc.
      • Method:
        • Bring teams together to brainstorm solutions to a problem, then implement the ones that seem logical, are generally desirable, and are economically feasible and see what happens.
    Quality Circles
    • Quality Tools
      • Inspection
      • Benchmarking
      • Process flowcharting
      • Run chart
      • Histogram
      • Scatter diagram
      • Ishikawa Diagram
      • Pareto analysis
      • Fault-tree analysis/FMEA
      • Control Charts (X-bar, R)
      • Auditing
      • Simulation (Monte Carlo, What-if)
      • QFD
    Quality Tools
    • Is it likely that you will be able to do all the work with internal resources?
    • How do you decide what to outsource?
    • How do you procure the outsourced work?
    Procurement Planning
    • Procurement Management Plan : Describes how procurement process – from solicitation planning through contract closeout – will be managed
        • Types of contracts to be used
        • If independent estimates to be used, who will prepare them and when
        • If there is a procurement organization in your company, what actions PM/Project Team can take independently
        • Where procurement documents can be found
        • How each contractor will be managed
        • How procurement processes will coordinate with other PM processes
    • Includes your SOW to the contractor
    Procurement Planning
    • Expert Judgment
        • Do you have the right resources for the job?
        • Do you have the right skills to do a quality job?
        • Experts might include: internal experts, other units, consultants, professional and technical associations, other industry groups, etc.
    • Opportunity Cost Analysis & Cost/Benefit Analysis
        • Can we use internal resources more productively than this job?
    • Lease vs. Buy Analysis
    Make or Buy Analysis
    • What is it?
    • Why is important?
      • A well run business or project doesn’t have a great deal of excess (i.e. unallocated) cash/other resources lying around
      • Projects compete with one another for resources
      • Goal is to optimize use of limited supply
      • Requires making trade-offs
      • The cost of making a trade-off
    Opportunity Cost
    • Cost Benefit Analysis is a tool to evaluate options
      • Is it worth spending $5000 to crash a schedule and gain 5 days?
      • Is it worth dropping a product feature from this software release in order to be able to achieve the baseline schedule release or would it be better to keep the feature and slip the scheduled release by 20 days?
    • You first need to have the costs and benefits
      • Costs and benefits must be in a quantifiable unit (dollars, production units gained or lost, days, etc.)
      • Costs do NOT have to be in equivalent units to Benefits
    • You also need to know the acceptable target tradeoff range(s) if there are absolute values (otherwise, rely on relative comparisons)
      • I once caught a fish this big | 
    Cost/Benefit Analysis
  • Lessee : The one receiving the capital Lessor : The one who owns the capital A lease “acts like” an amortized purchase – for both lessor and lessee
    • Why lease instead of buying?
      • Avoid technical obsolescence
      • Tax advantages
      • Asset/payment flexibility
    • Why buy instead of leasing?
      • Possibility of salvage value + value obtained from asset use being greater than amortized cost
      • Tax advantages
    Buy vs. Lease
    • Firm Fixed Price
        • Buyer pays seller a set amount regardless of seller costs
    • Fixed Price Incentive Fee
        • Buyer pays seller a set amount & seller can earn additional fee if performance criteria are met
    • Cost Plus Fixed Fee
        • Buyer reimburses seller costs plus a fixed profit fee
    • Cost Plus Incentive Fee
        • Buyer reimburses seller costs & seller earns profit if performance criteria met
    • Time & Material (T&M)
        • “ Hybrid” of cost reimbursement and fixed fee
    • Purchase Order
    • Who has the risks in each type?
    Main Types of Contract
    • Send bid/proposal request documents to prospective vendors
      • Presumes you have a sufficient list of applicable vendors
      • Distribution may be direct, via bidder conference, via advertising, etc.
      • Bid & Quote used when selection based on price
      • Proposal used when other than price (tech skills, etc) paramount
      • Request for Bid (RFB), Invitation to Bid (IFB)
      • Request for Quote (RFQ), Invitation to Quote (IFQ)
      • Request for Proposal (RFP), Invitation for Proposal (IFP)
      • Include SOW, description of required response/response format, explanation of pro forma contract terms and agreement structure
    Solicitation
    • Obtain bids/proposals from sellers
    • Evaluate bids/proposals & cycle thru SOW updates
    • Select bidder (based on criteria), negotiate, & award contract
    Solicitation
    • You are the owner of a small excavation contracting business that has a multi-year T&M contract with a customer. The contract specifies the rate of pay for personnel types on the project.
      • Qualify the risks you face related to management of the contract.
      • Qualify the risks the buyer faces.
    Contracts
    • What does the word “quality” mean?
      • Features and functionality
        • Scope requirements filled and working properly
        • Conformance to specification or design
      • Fitness for use
        • Degree of excellence at an acceptable price
        • Control of variability at an acceptable cost
        • How well the product fits patterns of user preferences
    • Why is it important for the PM to focus on quality?
      • Driver of customer satisfaction: Triple/Quadruple Constraint
        • Time (schedule)
        • Cost (budget)
        • Performance (specifications/quality)
    Quality For Project Managers
    • What is the cost of quality?
      • Prevention costs – costs incurred to prevent failure and minimize
      • appraisal costs
      • Appraisal costs – discovering the condition of the process or
      • product
      • Internal Failure costs – costs due to raw materials, WIP, or finished goods not being manufactured right 1st time
      • External Failure costs – costs from customer discovering a lack of
      • product quality
    Quality For Project Managers
    • Management’s Role:
      • Ask questions:
        • What is next?
        • What can I do?
      • Preach
      • Teach
      • Be an example
      • Provide resources
      • Seek never-ending improvement
      • Follow Deming’s 14 points
    • It is the PM’s role to be a leader of quality in your projects
    Quality For Project Managers
    • (some) Quality Systems
      • TQM (Kaizen/Continuous Improvement)
      • Six Sigma
      • ISO standards
      • Quality Circles
    Quality Systems You Can Use
    • TQM (Total Quality Management)
      • Objective: Improve quality by analyzing the whole “production process” using quantitative and qualitative information
      • Method:
        • Clear, visible leadership from top
        • Ensure that the system is ‘known’
        • Use statistical measurements to monitor the system
        • Use statistical measurements to make changes only when needed and relatively predictable
        • Use statistical measurements to monitor the changes
        • (PLAN, DO, CHECK, ANALYZE)
    Total Quality Management
    • Create constancy of purpose toward improvement
    • Adopt the new philosophy
    • Cease dependence on inspection.
    • Minimize total costs
    • Constant and perpetual improvement
    • Institute training
    • Institute leadership
    • Drive out fear
    • Break down internal barriers
    • Eliminate slogans, targets etc.
    • Eliminate management by objective
    • Remove barriers
    • Institute program of education and self-improvement.
    • Everybody’s job is to accomplish the transition.
    • - W. Edwards Deming
    Fourteen Points of Quality
    • Lack of constancy of purpose to improve products & services by providing resources for long-term planning, for research, & for training
    • An emphasis on short-term profits & quarterly dividend
    • Individual performance evaluations through merit ratings & annual reviews
    • Managers who are highly mobile & hop from company to company
    • Management use of numbers & figures that are visible & available with no thought of info that may be needed, but unknown or hidden
    • Excessive medical costs
    • Excessive legal liability costs, which can be swelled by lawyers who work on “contingency” fees
    Deming’s 7 Deadly Diseases
  • F our Basic Principles
    • Develop a Strong Customer Focus
    • 2. Continually Improve All Processes
    • Identify Them
    • Improve Them (Plan, Do Check, Act)
    • 3. Involve Employees
    • 4. Mobilize Both Data & Team Knowledge to Improve Decision Making
    • (The Memory Jogger: A Pocket Guide of Tools for Continuous Improvement and Effective Planning)
    Continuous Quality Improvement
    • Six Sigma
      • Objective:
        • A comprehensive and flexible system for achieving, sustaining, and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes.
        • Encompasses a broad array of business best practices and skills (some advanced, some common sense) that are essential ingredients for success and growth.
        • Applicable to all types of organizations
        • As much about people excellence as technical excellence
      • Method:
        • There are many “Six Sigma Ways.” – there is no fixed prescription
        • Sort of a culmination/combination of various other systems
    Six Sigma
    • A genuine focus on the customer
    • Data- and fact-driven management
    • Process focus, management & improvement as an engine for growth & success
    • Proactive management
    • Boundaryless collaboration
    • A drive for perfection, and yet a tolerance for failure
    Six Sigma – Essential Themes
  • Mc-Graw Hill, 2000 Six Sigma
    • Identify core processes & key customers
    • Define customer Requirements
    • Measure current Performance
    • Prioritize, analyze & implement improvements
    • Expand & integrate six sigma system
    Six Sigma Roadmap
    • Continuous Improvement
    • Process Design/Redesign
    • Analysis of Variance
    • Balanced Scorecard
    • Voice of the Customer
    • Creative Thinking
    • Design of Experiments
    • Process Management
    • Statistical Process Control
    Six Sigma – Methods/Tools
      • ISO standards (900x, 1400x, etc.)
      • Objective:
        • Improve processes & reduce process variation
      • Method:
        • “ Tell me what you’re going to do. Do it. Show me that you did it.”
        • Set requirements for process performance in various operational areas
        • Company establishes process to comply with the ISO specifications
        • Registrar evaluates company ISO system
          • ISO system meets/exceeds ISO standard, company is “certified”/”registered”
          • ISO system does not meet/exceed, company goes back to previous step
        • Company uses periodic audits to validate process validity and adherence
          • Internal
          • External (registrar)
        • Failures found during audits must be dealt with via a process established as part of the company’s ISO system
    ISO Standards
      • Objective:
        • Improve product quality by soliciting group input from workers (and sometimes customers and/or users) in order to improve product process, features, etc.
      • Method:
        • Bring teams together to brainstorm solutions to a problem, then implement the ones that seem logical, are generally desirable, and are economically feasible and see what happens.
    Quality Circles
    • Quality Tools
      • Inspection
      • Benchmarking
      • Process flowcharting
      • Run chart
      • Histogram
      • Scatter diagram
      • Ishikawa Diagram
      • Pareto analysis
      • Fault-tree analysis/FMEA
      • Control Charts (X-bar, R)
      • Auditing
      • Simulation (Monte Carlo, What-if)
      • QFD
    Quality Tools
      • ISO standards (900x, 1400x, etc.)
      • Objective:
        • Improve processes & reduce process variation
      • Method:
        • “ Tell me what you’re going to do. Do it. Show me that you did it.”
        • Set requirements for process performance in various operational areas
        • Company establishes process to comply with the ISO specifications
        • Registrar evaluates company ISO system
          • ISO system meets/exceeds ISO standard, company is “certified”/”registered”
          • ISO system does not meet/exceed, company goes back to previous step
        • Company uses periodic audits to validate process validity and adherence
          • Internal
          • External (registrar)
        • Failures found during audits must be dealt with via a process established as part of the company’s ISO system
    ISO Standards
      • Objective:
        • Improve product quality by soliciting group input from workers (and sometimes customers and/or users) in order to improve product process, features, etc.
      • Method:
        • Bring teams together to brainstorm solutions to a problem, then implement the ones that seem logical, are generally desirable, and are economically feasible and see what happens.
    Quality Circles
    • Quality Tools
      • Inspection
      • Benchmarking
      • Process flowcharting
      • Run chart
      • Histogram
      • Scatter diagram
      • Ishikawa Diagram
      • Pareto analysis
      • Fault-tree analysis/FMEA
      • Control Charts (X-bar, R)
      • Auditing
      • Simulation (Monte Carlo, What-if)
      • QFD
    Quality Tools
      • Inspection
      • OLD WAY: Check at the end of a process to see if it meets specified parameters. Throw away or rework (and check again) output that doesn’t meet specifications.
      • YOU CAN’T INSPECT QUALITY INTO A PRODUCT
      • NEW WAY:
        • Confirm the process is in statistical control by checking planned random samples of output at planned stages of the process
        • Feedback to the production process to correct the process for future revisions
        • Throw away or rework (and check again) output that doesn’t meet specifications
    • Where will you find inspection during your typical projects?
    Inspection
      • Systematized, planned method of looking at processes other than the one in which you’re interested to
        • Compare the process in question to the comparable processes
        • Find out new ways to make the process in question better (Best Practices)
      • Be very careful with benchmarking…It seems easy, but without proper analysis, it is very easy to fool oneself into thinking
        • that a = b = c and that is NOT ALWAYS THE CASE.
    Benchmarking
      • Can’t improve a process until all understand and agree what the process actually is
      • Flowchart is a model of the process
      • Improvement can come in the form of:
        • Whole team working in concert rather than against each other
        • Make changes to the process steps
          • Eliminate
          • Shorten
          • Rearrange
    Start End Step A Step B Step C Pass? Yes No Flowcharting
      • The 80/20 chart
      • Used to determine priorities
      • May be able to determine what you can do to fix the problem directly from this chart
      • May need to subsequently use other tools to figure out what to fix
      • Once you’ve corrected the first priority problem, may need to go through subsequent rounds
    Process step A Process step B Process step C Process step D Defects Pareto Analysis
      • Also known as Cause & Effect Diagram, Fishbone Diagram
      • The process of chart creation is itself useful (discussion that causes people to learn)
      • Helps keep focus on issue at hand, reducing complaints & irrelevant discussion
      • Results in an active search for the cause
      • Data often must be collected for study
      • Demonstrates the level of understanding…more complex the diagram, the more sophisticated the users are about the process
      • Problem Agnostic
    Problem to solve Major Cause 1 Major Cause 4 Major Cause 3 Major Cause 2 Minor Cause Minor Cause Minor Cause Minor Cause Minor Cause May also be situation desired Ishikawa Diagram
  • A.0 A.1 A.2 A.3 A.3.1 A.3.2
      • “ What happens if” chart
      • Study causes and effects of failures
      • Focuses thinking on system functioning and interaction of system component parts
      • Define all ways that a system can fail
      • Decomposes potential faults through several fault ‘layers’
      • Allows assignment of risk factors to the possible faults
      • Next probable step is a Pareto
    Fault Tree Analysis/FMEA
      • Run Chart
      • Trend analysis
      • Histogram
      • Trend analysis
      • Scatter Plot
      • Trend analysis
      • Should use some statistical validation as well as visual
    Statistical Process Control
      • Control Charts
      • Sometimes called Statistical Process Control (SQC) or Statistical Quality Control (SQC)
      • A run chart with statistically determined upper and lower control limits drawn on either side of the process average. (limits are NOT specifications)
      • Every process has variation. Once the process is in statistical control (i.e. it is running on its own – no special correcting influence from humans – and there are very few points beyond the control limits), it is possible to more economically and scientifically decrease variation in the process output
      • Special cause: 90%. easier to eliminate. Show up as points outside the limits
      • Common cause: 10%. changeable only by management
    Lower Control Limit (LCL) Upper Control Limit (UCL) Average time Measurement (# defective, etc)
      • Rule of 7: a process can be out of control even if there are no outliers…for instance, when there are 7 contiguous points on either side of the line.
      • You’ll never eradicate variation…(“average” will get in your way), but see Deming point 5
    Statistical Process Control
      • Auditing
      • Independent, objective review of the effectiveness of a system
        • Process
        • Product
        • System
        • Management
      • Identify whether process failure is common cause or special cause
      • Provide for tracking of appropriate corrective actions to process
      • Everyone dislikes being criticized, but REMEMBER that the audit function is intended to help the company be better at what it does.
        • Being better can mean a competitive advantage (cha-ching) or, as in most cases, it can simply mean that you are able to remain competitive (like the ante into a poker game).
        • Don’t hate the auditor…unless he comes to deserve it!
    Process Auditing
      • Set up models of a process or situation and vary parameters to see what outcome will be after simulating what might happen
      • “ What if” Analysis
        • Once the model is established and verified, varying a parameter by a specified amount and see what happens to the outcome parameter(s)
      • Monte Carlo Simulation
        • Once the model is established and verified, vary a parameter or parameters through use of randomized (statistically distributed histogram randomization) trials to see what happens to the outcome parameter(s).
    Simulation
      • Focus on creating a connection between quality, from the perspective of the user, through the ENTIRE process of creation
      • QFD matrices are used to show the links between the user’s quality concepts and technical quality. Successive decompositions of needs-related quality into quality associated with subsystems allows relation of every important aspect of project quality to competitive quality
    Product Planning Customer Requirements Design Requirements Product Design Design Requirements Component Characteristics Process Planning Component Characteristics Key Processes Process Control Planning Key Processes Control Methods Quality Function Deployment
      • Please Remember :
      • 1)
      • No chart or equation will ever improve a process…
      • People improve processes
      • 2)
      • Think before you decide.
      • Numbers are only models of reality.
      • Garbage In…Garbage Out (GIGO)
    Quality For Project Managers
    • “ It’s hard to predict, especially the future”
          • – Niels Bohr
    • “ Life is what happens when you’re making other plans”
          • – John Lennon
    • If it’s so hard to predict and everything is already obsolete by the time it’s “on paper,” why budget?
    Project Budgeting
    • Budgets are plans for allocating organizational resources to project activities
      • Must forecast required resources, quantities needed, when needed, and costs
    • Budgets help tie project to organizational objectives
      • Requires decisions of priority
    • Budgets can be used as tool by upper management to monitor and guide projects
      • We anticipated spending $100M by this time. How much did we actually spend?
    Project Budgeting
    • Most budgeting is done by multiplying a factor x “last year’s budget data”
    • ZBB calls for starting from a “clean sheet of paper” and then estimating the necessary functions from educated “scratch.” Often goes hand-in hand with Activity Based Costing Practice.
    • This can be tedious, but is very useful because it requires you to think about each budget line item more clearly
    Zero Base Budgeting
    • Non ZBB:
      • This year’s budget had $5000 for employee project management training
      • For next year’s budget, because we know that we are intending to continuously move toward PM practice at our company (but don’t have everything planned out yet), we’ll “bump” the budget up from last year by 1.5
    • ZBB:
      • Throw out last year’s budget
      • Start over with a total replanning effort using more distinct, factual analysis
    Zero Base Budgeting
    • Based on collective judgements and experiences of top and middle managers.
    • Overall project cost estimated by estimating costs of work packages/major tasks from WBS
    • Advantages
      • Accuracy of estimating overall budget
      • Errors in funding small tasks need not be individually identified
    • Disadvantages
      • May miss a material, though small-appearing, item
    Top Down Budgeting
    • How Top-Down Budgeting works (a very, very basic example):
    • WBS Task Cost
    • 2.0 Design $50,000
    • 3.0 Concrete $500,000
    • 4.0 Frame $200,000
    • 5.0 Electrical $ 75,000
    Project Budgeting
    • WBS identifies elemental tasks
    • Those responsible for executing these tasks estimate resource requirements
    • Technical Estimation
    • Time & Cost Estimation
    • Advantage
      • More accuracy from detailed lower-level analysis
    • Disadvantage
      • Tedious, long
      • Not focused on larger picture; can get lost in details
      • GIGO
    Bottom Up Budgeting
    • How Bottom-Up Budgeting works (a very, very basic example):
    • WBS Task Resource Duration (day) Cost
    • 2.0 Design $44,160
      • 2.1 Site Survey 4 3 $ 7,680
      • 2.2 Architectural Design 1 20 $24,000
      • 2.3 Drafting 2 12 $12,480
    • 3.0 Concrete
      • 3.1 Excavation
      • 3.2 Pour Concrete
      • 3.3 Test Concrete
    • 4.0 Frame
      • 4.1 Arrange Materials
      • 4.2 Erect Walls
    • 5.0 Electrical
      • 5.1 Arrange Materials
      • 5.2 Run Circuit Wiring
      • 5.3 Test Electrical Systems
    Project Budgeting
    • Determine resource requirements, then task costs
      • fixed costs (e.g., materials)
      • labor time & labor rate
      • equipment time & equipment rate
      • Overhead/G&A
    • Levels of Estimate
      • ROM = Rough Order of Magnitude (~20% accurate, 10 minutes)
      • System Estimate (~10% accurate, 1 day)
      • Unit Estimate (~5% accurate, 1-3 weeks)
    Work Element Costing
  •  
  • Engineering News Record, http//:www.enr.com/cost/cost1.asp ENR publishes both a Construction Cost Index and a Building Costs Index that are widely used in the Construction Industry. This web site contains an explanation of the indexes methodology and a complete history of the 20-city national average for the CCI and BCI. Both indexes have a material and labor component. In the second issue of each month ENR publishes the CCI and BCI, materials index, skilled labor index and common labor index for 20 cities and the national average. The first issue also contains an index review of all five national indexes for the latest 14 month period. ENR also publishes various materials prices in each issue for the 20 US cities and 2 Canadian cities. The first issue of the month contains prices for paving asphalt, portland cement, ready-mix concrete, concrete block, brick and aggregates. The second issue for the month has prices for various pipe including reinforced concrete pipe, corrugated steel pipe, PVC water and sewer pipe, ductile iron pipe and copper water tubing. The third issue of the month contains prices for lumber, plywood, plyform, particle board and gypsum board. The fourth issue of the month has prices for structural steel reinforcing bar, aluminum, and stainless steel sheet and plate. If a month has 5 Mondays, the fifth issue will have union wage rates for 21 trades in all 20 cities. The 20 US cities that ENR maintains cost data on are: Atlanta, Baltimore, Birmingham, Boston, Chicago, Cincinnati, Cleveland, Dallas, Denver, Detroit, Kansas City, Los Angeles, Minneapolis, New Orleans, New York, Philadelphia, Pittsburgh, St. Louis, San Francisco, Seattle. ENR also tracks cost data for Montreal and Toronto, Canada. In addition, ENR publishes four quarterly cost reports in the last issue of March, June, September and December. These issues analyze cost trends from ENR’s data base and explain the movement in the indexes. They also contain various other cost data including open-shop wage rates, workers compensation rates and international prices, wages and cost indexes just to name a few. Tim Grogan, Senior Editor, Costs, Data & Material Prices. Work Element Costing
  •  
  • ENR - Building Cost Index History How ENR builds the Index: 66.38 hours of skilled labor at the 20-city average of bricklayers, carpenters and structural ironworkers rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20-city price from 1996, plus 1.128 tons of Portland cement at the 20-city price, plus 1,088 board.ft of 2X4 lumber at the 20-city price (cwt = hundred weight. 45.36 kg, 0.04536 tons).     YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVER 1978 1609 1617 1620 1621 1652 1663 1696 1705 1720 1721 1732 1734 1674 1979 1740 1740 1750 1749 1753 1809 1829 1849 1900 1900 1901 1909 1819 1980 1895 1894 1915 1899 1888 1916 1950 1971 1976 1976 2000 2017 1941 1981 2015 2016 2014 2064 2076 2080 2106 2131 2154 2151 2181 2178 2097 1982 2184 2198 2192 2197 2199 2225 2258 2259 2263 2262 2268 2297 2234 1983 2311 2348 2352 2347 2351 2388 2414 2428 2430 2416 2419 2406 2384 1984 2402 2407 2412 2422 2419 2417 2418 2428 2430 2424 2421 2408 2417 1985 2410 2414 2406 2405 2411 2429 2448 2442 2441 2441 2446 2439 2428 1986 2440 2446 2447 2458 2479 2493 2499 2498 2504 2511 2511 2511 2483 1987 2515 2510 2518 2523 2524 2525 2538 2557 2564 2569 2564 2589 2541 YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVER 1988 2574 2576 2586 2591 2592 2595 2598 2611 2612 2612 2616 2617 2598 1989 2615 2608 2612 2615 2616 2623 2627 2637 2660 2662 2665 2669 2634 1990 2664 2668 2673 2676 2691 2715 2716 2716 2730 2728 2730 2720 2702 1991 2720 2716 2715 2709 2723 2733 2757 2792 2785 2786 2791 2784 2751 1992 2784 2775 2799 2809 2828 2838 2845 2854 2857 2867 2873 2875 2834 1993 2886 2886 2915 2976 3071 3066 3038 3014 3009 3016 3029 3046 2996 1994 3071 3106 3116 3127 3125 3115 3107 3109 3116 3116 3109 3110 3111 1995 3112 3111 3103 3100 3096 3095 3114 3121 3109 3117 3131 3128 3111 1996 3127 3131 3135 3148 3161 3178 3190 3223 3246 3284 3304 3311 3203 1997 3332 3333 3323 3364 3377 3396 3392 3385 3378 3372 3350 3370 3364 YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVER
    • There is no evidence of mystical inborn talent for cost- estimating.
    • ‘ Expertise ’ is not a universal phenomenon, but rather very project-specific.
    • The most crucial attributes of good estimators are knowledge and care.
    • Good estimators have exactly the same attributes as good gamblers:
      • they research selectively and thoroughly.
      • they weigh each decision against possible outcomes & behave accordingly
    • Different building types demand different approaches.
    • Special attention is required for complexity of the project.
    • The easiest projects to estimate are the industrial factories and residential houses.
    • Office construction projects are hardest to estimate, due to design/option variety
    • Skitmore, R.M., Stradling, S.G., & Tuohy, A.P. 1994. Human effects in early stage contract price forecasting. IEEE Transactions on Engineering Management, 41 (1), 29-39.
    Estimating Expertise
    • Best of both Top-down and Bottom-up mixed
    • Can be conflict (in fact, you want it)
    • If you have the time and the expertise available, this is, IN MY OPINION, the best approach
    Hybrid Budgeting
    • Find FV of $1 today invested for n years at i%/year
    • Timeline Method
    Future Value (FV) FV 1 = PV 1 (1 + i) 0 5 4 3 2 1 $PV i% i% i% i% i% FV 1 FV 2 FV 5 FV 4 FV 3 FV = PV (1 + i) n
    • Generic Case Equation
    • Find PV of $1 today of FV dollars received n years in the future, assuming i%/year
    PV = FV x 1 FV (1+i) n (1+i) n = Present Value (PV)
    • What is it?
    • Why is important?
    Compounding
    • Use Timeline Method: How much money will be your return at the end of 5 years with 5% annual interest on a deposit of $500
    • Think of 3 specific examples when you might need to know the concept of PV/FV and how to calculate it.
    • How would the situation change if you had a second investment of $250 in the third year? How would the formulaic calculation change?
    Group Work
    • What is it?
    A series of equal payments at fixed intervals for a specified number of periods E.G. – marketing tells you that Project X, of which you’ll be the PM, will generate $1M per year for 5 years starting at project release in January 2005
    • How is it calculated?
    Annuity FVAn = PMT/(1+i) + PMT/(1+i) 2 + … + PMT/(1+i) t = PMT Σ 1/(1+i) t t=1 n
    • Why is it important?
      • Couldn’t we just do an FV analysis on a $5M payback at the end of 5 years in the 5 year, $5M project example?
      • In the example above, what amount of money would you want to receive now to be able to turn down the $1000/year for 3 year deal?
    • Example
    Promise to pay $1000/year for 3 years. If you were to receive this money and invest it with a 4% return, how much would you have at the end of 3 years? i = t = n = PMT = Are we solving for PV or FV? Answer? Annuity 0 3 2 1 i% i% i% $1000 $1000 $1000
  • NPV = Σ (FV t / (1+i) t ) - I t=1 n FV t = incremental, after tax net cash flow in year t I = the investment (capital outlay), which is assumed to all happen in year 0) NPV > 0 is good (project or activity may be chosen) Net Present Value (NPV)
    • Paying the equipment
    Suppose you buy a machine for $100k, use it for 5 years to do “your thing,” and then scrap it. The cost of the work produced by the machine must include a charge for the machine (depreciation). As depreciation increases, net income decreases Unlike paying the staff, depreciation is NOT a cash charge – cash flows are not decreased…
    • Methods
    • Straight Line
    • Double declining balance
    • Sum of the years’ digits
    • Accelerated Cost Recovery System (ACRS)
    • Modified Accelerated Cost Recovery System (MACRS)
    Depreciation actually increases cash flow!!! Depreciation
  • (Purchase Amount – Salvage Value) / Depreciation life
    • Straight Line Method
    Depreciation Life determined by the estimated useful life of the asset Salvage Value = value the asset is expected to have at end of depreciation life What is the effect on cash flow of changing the salvage value? Depreciation Year 1 Year 2 Year 3 Year 4 Purchase Value Salvage Value
    • Sum of purchase price for any year x the depreciation % for that year
    • MACRS
    • Depreciation Life determined by Asset Class rules
    Modified Accelerated Cost Recovery System Non-residential property 31.5 year Residential rental property 27.5 year Certain long-lived equipment 10 year Industrial equipment, furniture, fixtures 7 year Automobiles, tractors, light duty trucks, computers 5 year Computers & research equipment 3 year Asset Type Class
    • 21.5 and 31.5 year class property uses straight line method
    • 3, 5, 7, 10 year class property uses accelerated method in table below (or alternative straight line method for very small businesses)
    MACRS Continued 3 11 6 10 7 9 7 4 8 7 9 7 7 9 6 6 9 9 11 5 12 13 12 7 4 14 17 19 15 3 18 25 32 45 2 10% 14% 20% 33% 1 10 7 5 3 Ownership year
  • Salvage Value: Add the difference of (actual sale price – undepreciated value) to normal operating income for taxation at the normal rate E.G. - $100k equipment with 5 year class life sold at end of year 4 for $25k $25,000 – ($100,000(.11+.06)) = $8000 to add to operating income Depreciable basis: Purchase price + shipping and installation costs [NOTE: NO classes allow salvage value as part of depreciable basis] Half-year convention: Assumes property put in service in middle of first year – extends recovery period by one more year (3 year class property is depreciated over 4 years) MACRS Continued
  • Excellanz buys a computer for $150k. It requires an additional $15k for delivery and $15k for installation. The company expects to be able to sell the equipment for $25k at the end of the straight line depreciable life. What is the depreciable basis? What is the depreciation for each year and the total depreciation? MACRS Example
    • How are they used?
    • What is a baseline?
    “ snapshot” of project schedule, cost (budget), or scope
    • Used as the basis for measuring and reporting actual performance against the plan (schedule, cost, scope)
    • Used to manage project changes to scope, schedule, cost (i.e. – get rid of the “creep”)
    • When are the “snapshots” taken?
    When the plan (schedule, scope (budget), scope) is considered feasible technically and in terms of resources Baselines
    • Posted via WebCT
      • Project Control and Configuration Mgmt
      • Risk Mgmt
      • Project Budgeting
    • Due 7/18 via hardcopy
    • Work in support groups (only)
    Homework 4
      • Set up models of a process or situation and vary parameters to see what outcome will be after simulating what might happen
      • “ What if” Analysis
        • Once the model is established and verified, varying a parameter by a specified amount and see what happens to the outcome parameter(s)
      • Monte Carlo Simulation
        • Once the model is established and verified, vary a parameter or parameters through use of randomized (statistically distributed histogram randomization) trials to see what happens to the outcome parameter(s).
    Simulation
    • What is it?
      • Risk is anything that affects triple constraint objectives
      • PMBOK: Systematic process of identifying, analyzing, and responding to project risks
      • AKA: Crossing bridges before you get to them
    Risk Management
    • Why do it?
      • The future is uncertain
      • When those unplanned, unplannable good or bad things happen to a project, the PM must be ready to deal with them and their consequences in order to meet the triple/quadruple constraint
    Risk Management
    • How do you manage risks?
      • Initiate the process,
      • Identify the risks,
      • Assess/analyze the risks,
      • Organize (rank) the risks,
      • Plan responses to the important risks,
      • Implement the RMP (Risk Management Plan),
        • Monitoring
        • Reporting
        • Responding
      • Review (cyclical)
    Risk Management
    • How you do it? - The Risk Mgmt Plan table
      • Risk Identifier
      • Risk
      • Probability of risk occurrence (P)
      • Impact if risk occurs (I)
      • Risk “Rank”
      • Risk Owner
      • Monitoring Plan
      • Response Strategy
      • Response Plan (outline)
    The RMP Table
    • Risk Identifier
    • Helps you track the risk
    • Helps you communicate the risk
    • May be nothing more than a sequential system
    • May be something other than sequential
    • What do you do with the risk ID when the risk “goes away?”
    • Critical person lost time injury
    • Fire damages structure
    • Rain delay to critical path task
    • Critical person lost time injury
    • Fire damages structure
    Risk Management
    • Risk (Identification)
    • Something that affects triple constraint objectives
      • Negative
      • Positive (Examples?)
    • Measurable/Quantifiable is best, but sometimes there will be qualifiable-only risks
    • Risks can be identified with use of many tools, methods
      • Project Plan, Network Diagram, Schedule, Policies, Expert Opinion, Historical Information, WBS, FMEA, etc.
    • Risk identified by a group effort
    • Risk identified
      • At project start
      • Over and over, repeatedly, again and again, until project end
    Risk Management
    • Probability of risk occurrence (P)
    • How likely is the risk event?
    • Can be classified by judgment
    • Can be classified by statistical tools
    Risk Management
    • Impact if risk occurs (I)
    • What will happen if the risk event occurs?
    • Can be classified by judgment
    • Can be classified by statistical tools
    Risk Management
    • Risk Rank
    • You can’t have everything…where would you put it?
    • P x I
    • Group all the equally ranked items together
    • There can be multiple 1, 2, 3, etc.
    • If multiple 1’s, 2’s, etc, can rank inside each group (use time of likely occurrence, relative impact, etc)
    • May have to go through several rounds of successively detailed analysis to get top (10, 20, 50, 75, 100)
    Risk Management
    • Risk Owner
    • Handles monitoring & responding (within constraints)
    • Why doesn’t the PM just do the risk monitoring?
    • Who can the PM assign to be a risk monitor?
    Risk Management
    • Monitoring Plan
    • How/what will you/r team watch to see if the risk may be happening?
    • Discuss some examples
    Risk Management
    • Response Strategy
    • Avoid: Do something to ensure risk won’t occur (100% mitigation)
    • Mitigate: Accept that risk might happen, but do something to alleviate the either/both the P or I if it does
    • Accept: What’s left when there’s nothing feasible to do
    • Transfer: Do something to allocate the risk onto someone else
    Accept Mitigate Avoid Risk Management
    • Response Plan
    • What do you intend to do if the risk starts happening/happens?
    • In outline form – things change too rapidly, frequently to warrant more
    • Who is responsible for keeping the Risk Management Plan (RMP)?
    Risk Management
  • Example: Project: Create a lighted sign for a new building into which an engineering forensics company will be moving in 2 months. RMP creation example/discussion Risk Management
  • In support groups: Project : Build a four-car garage Constraints : Cost not to exceed $10,000, Construction to be completed NLT 2 months from project initiation Complete an RMP with 10 risks. At least 3 must be cost-related, 3 must be quality-related, and 4 must be schedule-related Risk Management
  • How can you use a project schedule to actually manage (not just plan) a project?
    • How do you collect status from the people doing the work?
      • GIGO
      • Reporting/data gathering systems
      • use of % complete
    Schedule Management
    • Scheduling is extremely iterative process
      • In fact, changes during last few days are likely!
      • Management always wants it done faster and/or cheaper!
    • So how can you shorten the schedule?
      • Scope Modification : Delete task(s)
      • Crashing : Adding more resources to task(s)
      • Fast Tracking : Doing more tasks in parallel
    Schedule Compression
    • Scope Modification
      • Eliminate task(s)
      • Shrink work required to do particular task(s)
      • Not always viable – why not?
    Schedule Compression
    • Crashing
      • Add more resources to shorten time required to do the work (1+1=2)
      • Appropriate resources may not be available at all or only with equal or worse impact
      • Learning curves can actually result in 1+1=0.5
      • Can increase cost more than budget allows
    Not always feasible/viable option – why not? Schedule Compression
    • Fast Tracking
      • Reworking task sequencing so more activities are done in parallel rather than sequentially
    Not always feasible/viable option – why not?
      • Often results in rework
      • Increases risk (often dramatically)
      • Increases confusion
    Schedule Compression
    • Can we agree that getting the project done late (after pre-agreed time) is BAD?
    • Is it BAD to come in ahead of schedule:
      • By a little bit?
      • By a lot?
      • Why/Why not?
    Schedule Compression
    • What is it?
      • Establish revision control and change control methods
      • Similar to baseline
    • Why is it done?
      • Communication – keeping everyone on the same page
      • Limit unnecessary scope creep
      • Change impact estimation
      • Work billing
    Configuration Management
    • How does it work?
      • Written process (per project, per company, etc)
      • Identify change possibility (acceptable person?)
      • If CR accepted, evaluate
      • Decide outcome of change
      • If outcome is to proceed,
        • create/publish ECN
        • Update plan information
    Configuration Management
  • This page intentionally left blank Configuration Management
  • What is it? Exception Management for the Manager(s) of the Project Manager Reqmts Gathering Solicitation Pre-solicitation Bid Award Buildout Completion Do you suppose your (PM) manager will just say “go at it and let me know when you’re done”? Project Planning Project Execution Management by Stage Gates
    • What is it?
    • Why is important?
    Compounding
    • Find FV of $1 today invested for n years at i%/year
    • Timeline Method
    Future Value (FV) FV 1 = PV 1 (1 + i) 0 5 4 3 2 1 $PV i% i% i% i% i% FV 1 FV 2 FV 5 FV 4 FV 3 FV = PV (1 + i) n
    • Generic Case Equation
    • Find PV of $1 today of FV dollars received n years in the future, assuming i%/year
    PV = FV x 1 FV (1+i) n (1+i) n = Present Value (PV)
    • Use Timeline Method: How much money will be your return at the end of 5 years with 5% annual interest on a deposit of $500
    • Think of 3 specific examples when you might need to know the concept of PV/FV and how to calculate it.
    • How would the situation change if you had a second investment of $250 in the third year? How would the formulaic calculation change?
    Group Work
    • What is it?
    A series of equal payments at fixed intervals for a specified number of periods E.G. – marketing tells you that Project X, of which you’ll be the PM, will generate $1M per year for 5 years starting at project release in January 2005
    • How is it calculated?
    Annuity FVAn = PMT/(1+i) + PMT/(1+i) 2 + … + PMT/(1+i) t = PMT Σ 1/(1+i) t t=1 n
    • Why is it important?
      • Couldn’t we just do an FV analysis on a $5M payback at the end of 5 years in the 5 year, $5M project example?
      • In the example above, what amount of money would you want to receive now to be able to turn down the $1000/year for 3 year deal?
    • Example
    Promise to pay $1000/year for 3 years. If you were to receive this money and invest it with a 4% return, how much would you have at the end of 3 years? i = t = n = PMT = Are we solving for PV or FV? Answer? Annuity 0 3 2 1 i% i% i% $1000 $1000 $1000
  • NPV = Σ (FV t / (1+i) t ) - I t=1 n FV t = incremental, after tax net cash flow in year t I = the investment (capital outlay), which is assumed to all happen in year 0) NPV > 0 is good (project or activity may be chosen) Net Present Value (NPV)
    • Paying the equipment
    Suppose you buy a machine for $100k, use it for 5 years to do “your thing,” and then scrap it. The cost of the work produced by the machine must include a charge for the machine (depreciation). As depreciation increases, net income decreases Unlike paying the staff, depreciation is NOT a cash charge – cash flows are not decreased…
    • Methods
    • Straight Line
    • Double declining balance
    • Sum of the years’ digits
    • Accelerated Cost Recovery System (ACRS)
    • Modified Accelerated Cost Recovery System (MACRS)
    Depreciation actually increases cash flow!!! Depreciation
  • (Purchase Amount – Salvage Value) / Depreciation life
    • Straight Line Method
    Depreciation Life determined by the estimated useful life of the asset Salvage Value = value the asset is expected to have at end of depreciation life What is the effect on cash flow of changing the salvage value? Depreciation Year 1 Year 2 Year 3 Year 4 Purchase Value Salvage Value
    • Sum of purchase price for any year x the depreciation % for that year
    • MACRS
    • Depreciation Life determined by Asset Class rules
    Modified Accelerated Cost Recovery System Non-residential property 31.5 year Residential rental property 27.5 year Certain long-lived equipment 10 year Industrial equipment, furniture, fixtures 7 year Automobiles, tractors, light duty trucks, computers 5 year Computers & research equipment 3 year Asset Type Class
    • 21.5 and 31.5 year class property uses straight line method
    • 3, 5, 7, 10 year class property uses accelerated method in table below (or alternative straight line method for very small businesses)
    MACRS Continued 3 11 6 10 7 9 7 4 8 7 9 7 7 9 6 6 9 9 11 5 12 13 12 7 4 14 17 19 15 3 18 25 32 45 2 10% 14% 20% 33% 1 10 7 5 3 Ownership year
  • Salvage Value: Add the difference of (actual sale price – undepreciated value) to normal operating income for taxation at the normal rate E.G. - $100k equipment with 5 year class life sold at end of year 4 for $25k $25,000 – ($100,000(.11+.06)) = $8000 to add to operating income Depreciable basis: Purchase price + shipping and installation costs [NOTE: NO classes allow salvage value as part of depreciable basis] Half-year convention: Assumes property put in service in middle of first year – extends recovery period by one more year (3 year class property is depreciated over 4 years) MACRS Continued
  • Excellanz buys a computer for $150k. It requires an additional $15k for delivery and $15k for installation. The company expects to be able to sell the equipment for $25k at the end of the straight line depreciable life. What is the depreciable basis? What is the depreciation for each year and the total depreciation? SL Example
    • How are they used?
    • What is a baseline?
    “ snapshot” of project schedule, cost (budget), or scope
    • Used as the basis for measuring and reporting actual performance against the plan (schedule, cost, scope)
    • Used to manage project changes to scope, schedule, cost (i.e. – get rid of the “creep”)
    • When are the “snapshots” taken?
    When the plan (schedule, scope (budget), scope) is considered feasible technically and in terms of resources Baselines
    • Earned Value Management
      • Performance measurement system:
        • A methodology used to measure & communicate the real, physical progress of a project.
      • Integrates scope, cost, & schedule measures:
        • Takes work complete, time taken, and costs incurred to complete that work into account.
      • Useful as a risk management monitoring tool
        • EV helps evaluate & control project risk by measuring project progress using a standard measure (monetary terms).
    Earned Value
    • Earned Value Management
      • How it works:
        • We plan how we will accomplish a task(s)
          • How long it will take
          • Resources required
          • Estimated costs
        • We spend time and materials in completing a task.
          • If we are efficient, we complete task with time to spare & minimum wasted materials.
          • If we are inefficient, we take longer than planned and waste materials.
        • Take a snapshot of the project and calculate EV metrics to:
          • Compare planned vs actual and use that to make a subjective assessment of progress
          • Extrapolate the information to estimate future costs & probable completion date
    Earned Value
    • Planned Value (PV – aka BCWS)
      • Budgets for each activity planned (Portion of cost estimate planned to be spent on an activity during a given period)
    • Actual Cost (AC – aka ACWP)
      • Real, Total cost incurred during work on an activity during a given period
      • Must correspond to budgeted value for the PV and EV
    • Earned Value (EV – aka BCWP)
      • Value of work actually completed (The planned costs of the work allocated to the completed activities)
    • Cost Variance (CV) = EV – AC
    • Schedule Variance (SV) = EV – PV
    • Cost Performance Index (CPI) = EV/AC (CPI < 1 is bad)
    • Schedule Performance Index (SPI) = EV/PV (SPI < 1 is bad)
    • Estimate at Completion (EAC) = ACWP + ((BAC-BWCP)/CPI)
    Earned Value
    • You’re having a problem on your project –
    • when do you tell the stakeholders?
    • You’re *not* having a problem on your project –
    • when do you tell the stakeholders?
    • Is there such a thing as overcommunication?
    • An example of the communication balance
    Communications During Execution
    • From: Eiler, Timothy Sent: Wednesday, August 31, 2003 11:27 AM To: Bob Jones (contractor)
    • Subject: Communication
    • Bob,
    •  
    • When a customer-affecting release does not go as planned, you need to call the appropriate Account Manager to let her know that it failed, even if you don't yet know why that happened.   They need to know so that they can decide what communication is needed with the customer's business contacts to smooth feathers, etc.  This is particularly critical now as we try to assuage hurt customer feelings so that we can keep relationships with them alive for loan purchases.  Depending on the impact scope, of course, you probably don't need to call them seconds after the failure or anything, but they do need to know fairly soon.
    •  
    • After you've let them know about the initial failure, as you learn more and have updates to status and correction plans and progress, call them again as judgment dictates.
    •  
    • Even if the failure is corrected fairly quickly, you should let them know it occurred so they can be aware of what happened.  Essentially, after any customer-affecting release, call them to let them know an executive summary of how it went - success or failure.  I'm assuming, given the time of day most releases happen, that they will each want to be called at their desk phones, with you leaving voice mail, but you need to work that out with each of them individually, and probably for individual releases, as well.
    •  
    • You also need to call me to let me know of the failure, though I have less need for late night calls about correction plans and progress.  I can generally, depending on the impact of the failure, of course, wait until morning to know about correction plans and progress.  Calls to my cell, with voice mail left if I don't answer, are what I need.
    •  
    • Overall, the goal is to rationally over communicate this information - while not being passive-aggressive, of course.  :-)
    • Tim
    Communications During Execution
    • Use of examples – how could I have used an example to help Bob understand and accept?
    • Use of analogies – how could I have used an analogy to help Bob understand and accept?
    • Other ways storytelling can be an aid
    Storytelling for Communication
    • Dunning Letter
      • A memo identifying specific things done wrong/currently late/etc and the ramifications of continuing to fail to address the issues
    • Transmittal
      • A memo that outlines/explains submittals included with the transmittal and the actions required by the recipient
    Typical Project Documents
    • Is the plan right?
      • Are things going as they should?
      • If not, how far off are we?
      • Does it need changes?
    • What do we need to do to be where we need to be?
      • What changes or corrections are needed?
      • When do the changes need to be made?
      • Who on the project team needs to make “course corrections” in order to achieve the plan?
    • Iterate!
    Managing
    • What do you watch?
    • How often?
    • How?
    Managing
    • “ Design team failure is usually due to failed team dynamics.”
    • (Leifer, Koseff & Lenshow, 1995).
    • “ It’s the soft stuff that’s hard; the hard stuff is easy.”
    • (Doug Wilde, quoted in Leifer, 1997)
    • In order to make sense out of leading project teams, you need to understand
    • the concept of “ team ,”
    • the concept of “ lead ,” and
    • the concept of “ manage .”
    Managing Project Teams
  • Be Pro-Active : Take initiative & the responsibility to make things happen. Begin With an End in Mind : Start with a clear destination to understand where you are now, where you're going, & what you value most. Put First Things First : Manage yourself. Organize & execute around priorities. Think Win/Win : See life as a cooperative, not a competitive arena where success is not achieved at the expense or exclusion of the success of others. Seek First to Understand : Understand then be understood to build the skills of empathic listening that inspires openness and trust. Synergize : Apply the principles of cooperative creativity and value differences. Renewal : Preserving and enhancing your greatest asset, yourself, by renewing the physical, spiritual, mental and social/emotional dimensions of your nature. Steven Covey, 1989 Seven Habits Of Highly Effective People
  • A team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable • SMALL NUMBER • COMPLEMENTARY SKILLS • COMMON PURPOSE & PERFORMANCE GOALS • COMMON APPROACH • MUTUAL ACCOUNTABILITY (to project, to team, to each other) --Katzenbach & Smith (1993) The Wisdom of Teams Managing Project Teams
    • Is there a difference?
    • http://www.see.ed.ac.uk/~gerard/MENG/ME96/Documents/Intro/leader.html
    • http:// www.bus.ualberta.ca/rfield/papers/LeadershipDefined.htm
    • http://www.lazarusconsulting.com/company/hot_topics/leadership_vs_management.html
    Hey!!! Wrong Forest!!! Leadership vs Management
  • MANAGEMENT FUNCTIONS Tracking Operational Performance Aligning Operations with Customers' Values Maintaining Operational Practices & Standards Implementing Operational Plans & Projects Solving Operational Problems Procuring Operational Resources Accounting for Resource Performance LEADERSHIP FUNCTIONS Assessing Organizational Performance Aligning Organizational Practices with Values & Vision Altering Organizational Practices & Standards Initiating Organizational Improvements Facilitating Quality Interactions Integrating Organizational Systems & Processes Educating for Quality Performance Leadership vs Management
  • http://www.bus.ualberta.ca/rfield/papers/LeadershipDefined.htm Leadership vs Management
    • Six Basic Principles of Team Discipline
    • Have and develop a common purpose
    • Keep team membership small
    • Ensure team members have complementary skills
    • Set common goals
    • Establish agreed-upon ground-rules and approach
    • Integrate team and individual accountability
    • Katzenbach & Smith (2001) The Discipline of Teams
    Managing Project Teams
  • Leadership is any action that helps a group achieve its goals AND maintain cooperative relationships among members of the group.
    • List as many characteristics in 2 minutes that come to mind for followers you admire
    • List as many characteristics in 2 minutes that come to find for followers you admire
    Leading Project Teams
  • 1. Ability to think in terms of systems & knowing how to lead systems. 2. Ability to understand the variability of work in planning & problem solving. 3. Understanding how people learn, develop, & improve; leading true learning and improvement. 4. Understanding people & why they behave as they do. 5. Understanding the interaction & interdependence between systems, variability, learning, and human behavior; knowing how each affects the others. 6. Giving vision, meaning, direction, & focus to the organization. The Leader's Handbook (Scholtes, 1998) New Leadership Competencies
  • (Kouzes & Posner, 1987) Challenging the Process 1. Search for Opportunities 2. Experiment and Take Risks Inspiring a Shared Vision 3. Envision the Future 4. Enlist Others Enabling Others to Act 5. Foster Collaboration 6. Strengthen Others Modeling the Way 7. Set the Example 8. Plan Small Wins Encouraging the Heart 9. Recognize Individual Contribution 10. Celebrate Accomplishments Ten Commandments of Leadership
    • Quality information must be used for improvement, not to judge or control people
    • Authority must be equal to responsibility
    • There must be rewards for results
    • Cooperation, not competition, must be the basis for working together
    • Employees must have secure jobs
    • There must be a climate of fairness
    • Compensation should be equitable
    • Employees should have an ownership stake
    8 Crucial Elements of System Leadership
    • What’s involved in managing teams?
    • What are the obstacles a PM must overcome to create and manage a successful project team?
    Managing Project Teams
    • Team Charter
    • Team name, membership, roles
    • Team Mission Statement
    • Anticipated results (goals)
    • Specific tactical objectives
    • Ground rules/guide principles for team participation
    • Shared expectations/aspirations
    Managing Project Teams
  • Communication Skills (84%) Listening Persuading Organizational skills (75%) Planning Goal-setting Analyzing Team Building Skills (72%) Empathy Motivation Esprit de Corps Leadership Skills (68%) Sets Example Energetic Vision (big picture) Delegates Positive Coping Skills (59%) Flexibility Creativity Patience Persistence Technological Skills (46%) Experience Project Knowledge What it takes to be a good project manager (Posner, 1987) Percentages represent the percentage of respondents to a Posner survey who included the skill in the list of importance Managing Project Teams
  • Skills necessary for effective project managers Planning • Work breakdown • Project scheduling • Knowledge of PM software • Budgeting and costing Organizing • Team building • Establishing team structure and reporting assignments • Define team policies, rules and protocols Leading • Motivation • Conflict management • Interpersonal skills • Appreciation of team members' strengths and weaknesses • Reward systems Controlling • Project review techniques • Meeting skills Pinto and Kharbanda (1995): Managing Project Teams
  • James M. Kouzes & Barry Z. Posner. 1993. Credibility: How leaders gain and lose it, why people demand it. San Francisco: Jossey-Bass. Characteristics of Admired Leaders 1 Characteristic 1993 U.S. Percentage of People Selecting 1987 U.S. Percentage of People Selecting Honest 87 83 Forward-looking 71 62 Inspiring 68 58 Competent 58 67 Fair-minded 49 40 Supportive 46 32 Broad-minded 41 37 Intelligent 38 43 Straightforward 34 34 Courageous 33 27 Dependable 32 32 Cooperative 30 25 Imaginative 28 34 Caring 27 26 Mature 14 23 Determined 13 20 Ambitious 10 21 Loyal 10 21 Self-controlled 5 13 Independent 5 13
  • Group Task and Maintenance Roles Managing Project Teams Group Task Roles Group Maintenance Roles Initiating Encouraging Seeking Information Expressing Feelings Giving Information Harmonizing Seeking Opinions Compromising Giving Opinions Facilitating Communications Clarifying Setting Standards or Goals Elaborating Testing Agreement Summarizing Following
    • Five Top Criteria of a Competent Project Manager
    • They have enthusiasm
    • They have high tolerance for ambiguity
    • They possess high coalition and team-building skills
    • They have client-customer orientation
    • They have a business orientation
    • Graham, Robert J. & Englund, Randall L. 1997.
    • Creating an environment for successful projects .
    • San Francisco: Jossey-Bass
    Managing Project Teams
    • 5 Types of Power for Leaders and Managers
    • Situational!!
    Power Tools You can take something from them/hurt them Coercive You can give them something in return Reward They like or trust you Referent You are perceived as an expert in “x” Expert Organization tells them to Formal People do what you ask because… Type
  • • Communicate regularly in person with key team members • Keep management informed • Keep informed on all aspects of the project • Delegate tasks to team members • Listen to input from team members • Be able to take criticism • Respond to and/or act on suggestions for improvement • Develop contingency plans • Address problems • Make decisions • Learn from past experience • Run an effective meeting • Set up and manage the project file • Use project management tools to generate reports • Understand trade-offs involving schedule and budget • Have a sense of humor --Lientz and Rea (1996) Keys For PM Success
  • “ I used to think, ‘oh no, not another meeting’ until I worked for you.” - A former employee of mine People hate meetings. People think meetings are a waste of time - The sad part is that most of them are You will spend a good portion of your work in meetings. Fool people – make them gain respect for you by making your meetings an EFFECTIVE use of their time Meetings and More Meetings
    • Some reasons that people think badly of meetings:
    • Purpose is unclear
    • Participants are unprepared
    • Key people are absent or missing
    • The conversation veers off track
    • Participants don’t discuss issue but instead
    • dominate, argue, or take no part at all
    • Meeting decisions not followed up
    Meetings and More Meetings
    • Hold meetings for group decision making
      • avoid weekly progress report meetings
    • If meeting is held to address a specific issue, restrict meeting to this issue alone
    • Ensure everyone properly prepared
      • Distribute written agenda in advance of meeting
      • Tell where and when
      • State and repeat the objective of the meeting
    • Avoid excessive formality
    • Chair and participants control
      • Meeting – use groundrules
    Guidelines for Holding Meetings
    • BEFORE
      • Plan: Clarify meeting purpose & outcome, Identify meeting participants, Select methods to achieve purpose, Develop & distribute agenda, Set up room
    • DURING
      • Start: Check-in, Review agenda, Set/review ground rules, Clarify roles
      • Conduct: Cover one item at a time, Manage discussions,
      • Maintain focus & pace
      • Close: Summarize decisions, Review action items, Solicit agenda items for next meeting, Review time & place for next meeting, Evaluate the meeting, Thank participants
    • AFTER
    • Follow-up: Distribute or post meeting notes promptly, File agendas, notes, & other documents, Do and/or check up on action items/assignments.
    Meetings – The Right Way
    • Five Meeting Roles
      • Chair
      • Recorder
      • Timekeeper
      • Presenter
      • Participant
    • NO ONE SHOULD PLAY MORE THAN 2 ROLES AT ONCE!!!!!
    Meetings – The Right Way
    • Virtual PM – what’s different?
      • Virtual Project Teams
      • Use of the Technology to meet
      • Use of Software Programs
    • How does the new situation change PM processes?
    Meetings and More Meetings
  • Groups without conflict where there is a strong norm of “Concurrence Seeking” Groupthink
    • 1. Know the Symptoms of Groupthink
    • Overestimation of the Group
      • Illusion of invulnerability
      • Belief in group morality
    • Closed Mindedness
      • Rationalization
      • Stereotyping Outgroups
    • Pressures Toward Uniformity
      • Self-censorship
      • Direct pressure
      • Mindguards
      • Illusion of unanimity
    Avoiding Groupthink
        • 2 . Strategies for avoiding Groupthink
        • Promote an open climate
        • Avoid the isolation of the team
        • Appoint critical evaluators
        • Avoid being too directive
    Avoiding Groupthink
  • Controversy exists when one person’s ideas, information, conclusions, theories, and opinions are incompatible with those of another person and the two seek to reach an agreement. Controversy
  • “ . . . Controversy is a great thing. Unfortunately, controversy gets a bad rap. Most people scurry about their lives trying to avoid controversy, avoiding disagreements with others, avoiding messy debates. . .Our world is awash in controversy. And rightly so. . . We need it. We need to discuss controversial subjects. We need to settle differences of opinion. . . Acknowledging and resolving issues that divide us is a good thing. It’s what separates us from the apes. . . “ Vernon Felton, Frame of Mind -- Bike, 8 (4), May 2001 Controversy
  • “ The work life of a project manager is a life of conflict. Although conflict is not necessarily bad, it is an issue that has to be resolved by the project manager. Without excellent negotiation skills, the project manager has little chance for success.” Taylor, J. 1998. A survival guide for project managers. AMACON. Managing Conflict
    • Mitigating The Bad Effects of Controversy
    • Cooperative Context
    • • Positive Interdependence – Commitment to a Common Goal
    • • Individual and Group Accountability
    • • Face-to-Face Promotive Interaction
    • • Teamwork Skills
    • • Group Processing
    • Heterogeneity Among Members
    • Distribution of Information
    • Skilled Disagreement
    Managing Controversy
    • Rules for Constructive Controversy
    • I am critical of ideas, not people. I challenge & refute the ideas of the opposing group, but I do not personally reject them.
    • I remember that we are all in this together, sink or swim. I focus on coming to the best decision possible, not on winning.
    • I encourage everyone to participate & to master all relevant info.
    • I listen to everyone’s ideas, even if I don’t agree.
    • I restate what someone has said if it is not clear.
    • I first try to bring out all the ideas & facts supporting both sides, and then I try to put them together in a way that makes sense.
    • I try to understand all sides of the issue.
    • I change my mind when evidence clearly indicates I should
    Managing Controversy
  • • EVERY member is responsible for the team ’ s progress and success. • Attend all team meetings and be on time, Come prepared. • Carry out assignments on schedule. • Actively l isten to & show respect for contributions of other members • CONSTRUCTIVELY criticize ideas, not persons. • Resolve conflicts constructively, • Pay attention, avoid disruptive behavior like holding side conversations • Only one person speaks at a time. • Everyone participates, no one dominates. • Be succinct, avoid long anecdotes and examples. • No rank in the room. • Respect those not present. • Ask questions when you do not understand. • Attend to your personal needs at any time but minimize team disruption. • HAVE FUN!! • ? Adapted from Boeing Aircraft Group Team Member Training Manual BOEING Code of Cooperation
  • • Help each other be right, not wrong. • Look for ways to make new ideas work, not for reasons they won't. • If in doubt, check it out! Don't make negative assumptions about each other. • Help each other win, and take pride in each other's victories. • Speak positively about each other & your organization at every chance. • Maintain positive mental attitude no matter what the circumstances. • Act with initiative and courage, as if it all depends on you. • Do everything with enthusiasm; it's contagious. • Whatever you want; give it away. • Don't lose faith. • Have fun FORD Code of Cooperation
  • Strategies for Dealing With Conflict Withdrawing : Neither the goal nor the relationship are important - withdraw from the interaction. Forcing : The task is important but not the relationship - use all your energy to get the task done. Smoothing : The relationship is more important than the task. - work to be liked and accepted. Compromising : Both task & relationship important but there is lack of time - you both gain and lose something. Confronting : Task & relationship are equally important. - define conflict as a problem-solving situation and resolve through negotiation. Managing Conflict
  • Which strategies do effective team members use? Ineffective team members? Under what conditions are each of these conflict strategies important? What words and phrases are needed to set up each strategy? Managing Conflict
  • Blake & Mouton Conflict Model - Importance of the Goal - Importance of the Relationship Managing Conflict
    • Heuristics for dealing with conflicts :
    • Do not withdraw from or ignore the conflict.
    • Do not engage in &quot;win-lose&quot; negotiations.
    • Assess for smoothing.
    • Compromise when time is short.
    • Confront to begin problem-solving negotiations.
    • 6. Use your sense of humor.
    Managing Conflict
    • A confrontation is the direct expression of one's view of the conflict and one's feelings about it while inviting the opposition to do the same. Suggested guidelines for confrontation are:
      • 1. No &quot;hit-and-run&quot;: confront only when there is time to
      • jointly define the conflict and schedule a negotiating session.
      • 2. Openly communicate: express feelings about & perceptions of issues involved in the conflict, & try to do so in minimally threatening ways.
      • 3. Seek 1 st to understand: accurately & fully comprehend opponent's views of the feelings about the conflict.
    • A successful confrontation sets up opportunity to negotiate.
    Managing Conflict
    • Skilled Disagreement
    • Define Decision as a mutual problem, not as a win-lose situation.
    • Be critical of ideas, not people (Confirm others' competence while disagreeing with their positions).
    • Separate one's personal worth from others' reactions to one's ideas.
    • Differentiate before trying to integrate.
    • Take others' perspectives before refuting their ideas.
    • Give everyone a fair hearing.
    • 7. Follow the canons of rational argument.
    Managing Conflict
    • Escalation of Conflicts – Strategies for Resolving
    • Informal Negotiation
    • Formal Negotiation
    • Mediation
    • Third-Party Mediation
    • Arbitration
    • Binding Arbitration
    • Litigation
    Managing Conflict
  • Negotiation is a conflict resolution process by which people who want to come to an agreement, but disagree about the way to resolve, try to work out a settlement. Managing Conflict
    • Recommended steps in conflict negotiation:
      • Define the conflict mutually.
      • Communicate feelings and positions.
      • Communicate cooperative intentions.
      • Take the other person's perspective.
      • Coordinate the motivation to negotiate.
      • Reach agreement satisfactory to both sides --
      • SEEK WIN-WIN OR DON’T NEGOTIATE.
    Managing Conflict
    • Negotiating Guidelines
    • 4 Steps in Principled Negotiation
    • Separate the people from the problem
    • Focus on interests, not positions
    • Create options
    • Insist on standards
    • Fisher & Ury - Getting to Yes
    Managing Conflict
    • Promoting Controversy
    • Present Viewpoints.
    • Highlight Disagreements.
    • Be Impartial and Rational.
    • Require Critical Evaluation.
    • Assign Devil’s Advocate Role.
    • Use Advocacy Subgroups
    • Have “Second Chance” Meetings
    Managing Conflict
  • Star Tribune 12/3/98 Star Tribune 12/3/98
  • Job-related fatalities up in '04 http://www.bizjournals.com/twincities/stories/2005/08/22/daily40.html?hbx=e_du John Vomhof Jr. Staff Writer, The Business Journal – 8/25/2005 There were 80 fatal work-related injuries recorded in the state in 2004, the Minnesota Department of Labor & Industry reported Thursday. That is up from 72 in 2003, and one less than in 2002. The state averaged 74 work-related deaths from 1999 to 2003. In 2004, the agriculture industry recorded the most worker fatalities, with 18; the industry had 19 deaths in 2003 and 21 in 2002. Construction had 16 fatalities in 2004, an increase from 10 in 2003 and 15 in 2002. Nine government workers were fatally injured in 2004, up from three in 2003, but down from 12 in 2002. Transportation incidents accounted for 29 of the 80 work-related deaths in 2004. That compares to 30 in 2003 and 44 in 2002. Contact with objects and equipment led to 18 fatalities in 2004, while assaults and violent acts killed 11. Falls also led to 11 work-related deaths. Women accounted for seven of the 80 people fatally injured on the job in 2004. The Census of Fatal Occupational Injuries is conducted annually by the U.S. Department of Labor's Bureau of Labor Statistics. There were a total of 5,703 fatal work injuries recorded nationwide in 2004. Health & Safety
  • Source : U.S. Department of Labor, Star Tribune 12/3/98 Cause   Deaths Falls   377 Transportation   283 Contact with Objects, Equipment 200 Harmful Substances, Environment 186 Violence   32 Other 29 Causes of Constr. Deaths
  • Star Tribune, 12/3/98, Two killed in accident at Piper Site, By Joy Powell Two electricians were killed at a downtown Minneapolis construction site on 12/2/98, after a 10,000-pound steel column being moved by a crane slipped off its mark and slammed into a beam. That apparently dislodged a storage bin weighing more than a 1,000 pounds that was resting on the beam. The bin, full of nuts and bolts and studs, crashed through eight floors to the ground. Darryl J. Hilgendorf, 49, of Minneapolis, and a second worker whose name wasn’t released died in the 9:20 a.m. accident. They were working on the 6 th floor of the Piper Jaffray Center under construction at S. 8 th St. and Nicollet Mall when they were either hit by the bin or fell through the hole alongside it. “ We’re just sick about this”, said Robert Cutshall, vice president of construction for Ryan Companies, the general contractor. ”We feel terrible, and our hearts go out to the families of these two men killed today”. A Minneapolis building inspector is also expected to tour the site today, and state investigators will continue to look into the case. Workers were building the 8 th story of a 30 story tower. They had laid decking, sheets of corrugated steel 1/16 th of an inch thick, that will have concrete poured on them to make floors. Health & Safety
  • History: Other Construction Fatalities in the Twin Cities June 1992, Minnesota Zoo: A worker on the zoo’s amphitheater was fatally injured when a 400-pound fixture holding 8 bird cages fell on him. May 1991, Mall of America: One man died and another was injured when scaffolding they were on collapsed. April 1991, Mall of America: One man died and two other workers were injured when concrete flooring collapsed in a mall parking garage. April 1990, Lake St. Marshall Av. bridge: A worker fell 90 feet to his death when a concrete arch span of the new bridge collapsed into the Mississippi river. April 1990, Minneapolis Veterans Medical Center: A construction worker was killed when a section of crane he was helping dismantle collapsed on him October 1989, Cray Research, Inc.: A fall from a scaffold killed a worker at the Eagan site of a Cray building. Star Tribune 12/3/98, by Linda Scheimann and James Walsh Health & Safety
  • Workers – 100,000s Deaths – 100s Death rate – per 100,000 workers Disabling injury rate – per 1,000 workers Health & Safety
    • What responsibilities do engineers and PMs have for health and safety?
    • What can PMs do to minimize risks and make the workplace safer?
    Health & Safety
    • What is ethics?
      • Definition
      • Fundamentals
      • Codes of ethics
    • Why do we care about ethics?
    Ethics Outline
    • Ethics provide a systematized framework for making decisions where values conflict
    What Is Ethics??
    • Ethical – decision-making in a systemic manner that conforms to accepted professional standards of conduct
    • Moral – decision-making based on principles of right and wrong behavior
    • Legal – decision-making conforming to rules of the law
    Source: WWWebster Dictionary Differentiating the Confusion
    • Trust is defined as “ certainty based on past experience ”
    • … . ethics concerns concepts of the individual or group by which actions are judged “right” or “wrong.” Source: J Campbell Martin
    • Systems of ethics are used to guide our decision-making and behavior in human-to-human relationships
    Why Is Ethical Behavior Important??
    • There are many systems of ethics
    • The two major theories:
      • Decisions are made on the basis of the consequences of an act or decision
      • Decisions are made on the basis of the morality of acts (is act right or wrong?)
    Systems of Ethics
    • Is the commonly made decision always the right one ?
    • Is the legal decision always the morally right decision?
    • Is the morally right decision always the one in your best interest?
    • Is the morally right decision always the most economical?
    • Is following orders that are not proper a legal or a moral defense?
    Ethics – What Guides Your Choices?
    • Attributed to Kohlberg
    • Preconventional level - Moral behavior or actions are judged by the person the behavior or actions benefits. e.g. to a child taking a toy from another child is moral (ethical.)
    • Behavior can be modified by desire to avoid punishment or to seek approval.
    Fundamentals – Moral Development
    • Conventional level - behavior is based on the norms of the family, group or society that are accepted. Most adults do not go beyond this level.
    • Postconventional level - At this level the individual is autonomous and can ask “what is best?” Individuals are guided by integrity, self respect and respect for others.
    Fundamentals – Moral Development
    • Attributed to Mill
    • Balance between good and bad consequences.
    • Utilitarianism - acts should always maximize utility.
    Utility Theory
    • Attributed to Kant
    • Duties - honesty, fairness, commitment, gratitude, ......
    • Duties
      • show respect for others,
      • express moral imperatives, and
      • are universal.
    Duty Theory
    • Attributed to Kant.
    • Duties exist because of the rights of others.
    • Rights are to
      • life,
      • liberty, and
      • property gained by one’s labor.
    Human Rights Theory
    • Attributed to Aristotle
    • Moral virtues represent a balance between extremes between excess and deficiency in conduct, emotion, desire and attitude.
    Virtues Theory
    • A dilemma is a choice between two (or more) options that are fundamentally opposed and which carry generally equal weight.
    • “ Engineers are always confronted with two ideals, efficiency and economy, and the world’s best computer could not tell them how to reconcile the two. There is never ‘one best way.’ Like doctors or politicians or poets, engineers face a vast array of choices every time they begin work, and every design is subject to criticism and compromise .”
    Source: Billington, D.P., 1986, “In defense of engineers,” The Wilson Quarterly, January. Ethics – The Dilemma
    • “ Treat others as you would want them to treat you”
    • Engineering ethics is important in
      • interpersonal relationships
      • developing products and facilities
      • impacting future generations......
    Ethics in Practice
    • If a builder builds a house for man and does not make its construction firm and
    • the house collapses and causes the death of the owner of the house - that builder shall be put to death.
    • it destroys property, he shall restore whatever is destroyed, and because he did not make the house firm he shall rebuild the house which collapsed at his own expense.
    • If a builder builds a house for a man and does not make its construction meet the requirement and a wall falls - that builder shall strengthen the wall at his own expense.
    • The Code of Hammurabi (2250 BCE)
    Ethics in Practice
  • I recognize academic integrity as essential to the University of Minnesota’s and its students’ equitable and uncompromised pursuit of their joint endeavors. As a student I promise to practice it to the best of my ability and to do nothing that would give me unfair advantage at the expense of my fellow students. If I cheat in spite of making this declaration, I expect to be penalized according to the offense, up to and including notation of cheating recorded on my transcript and permanent expulsion from the University of Minnesota. http://www1.umn.edu/usenate/reports/saicrept.html (accessed 4/25/00) University of MN Honor Code
  • Our Ethical Values (Lockheed-Martin)
    • HONESTY: to be truthful in all our endeavors; to be honest and forthright with one another and with our customers, communities, suppliers and shareholders.
    • INTEGRITY: to say what we mean, to deliver what we promise, and to stand for what is right.
    • RESPECT: to treat one another with dignity and fairness, appreciating the diversity of our workforce and the uniqueness of each individual.
    • TRUST: to build confidence through teamwork and open, candid communication.
    • RESPONSIBILITY: to speak up – without fear of retribution – and report concerns in the work place, including violations of laws, regulations and company policies, and seek clarification and guidance whenever there is doubt.
    • CITIZENSHIP: to obey all the laws of the United States and the foreign countries in which we do business and to do our part to make the communities in which we live a better place to be.
    • Preamble: In the pursuit of the PM profession, it is vital that PMI members conduct their work in an ethical manner in order to earn & maintain the confidence of team members, colleagues, employees, employers, clients, the public, & the global community
    • Member Code of Ethics: As a professional in the field of PM, I pledge to uphold and abide by the following:
    • I will maintain high standards of integrity & professional conduct
    • I will accept responsibility for my actions
    • I will continually seek to enhance my professional capabilities
    • I will practice with fairness & honesty
    • I will encourage others in the profession to act in an ethical & professional manner
    • Project Management Institute
    PM Ethics
    • Engineers, in the fulfillment of their professional duties, shall:
    • Hold paramount the safety, health and welfare of the public.
    • Perform services only in areas of their competence.
    • Issue public statements only in an objective and truthful manner.
    • Act for each employer or client as faithful agents or trustees.
    • Avoid deceptive acts.
    • Conduct themselves honorably, responsibly, ethically, and lawfully so as to enhance the honor, reputation, and usefulness of the profession.
    • National Society of Professional Engineers (NSPE)
    • http://www.nspe.org/ethics/eh1-code.asp
    Engineering Ethics
    • Possible Process
    • Problem Definition
      • Identify ethical issues
      • Determine relevant facts
      • Identify/Gather required missing data
    • Determine relevant ethical principles
    • Discuss practical constraints
    • Identify possible solutions
      • Seek ways to avoid the original problem
      • List action items
    • Make preliminary judgments (apply evaluation tests)
    • Review decisions and synthesize discussion into a solution
    Ethical Decision Evaluation
  •  
    • Harm Test: Does this option do less harm?
    • Publicity Test: Would I want my choice to appear in the newspaper next to my name?
    • Mother Test: What if my mom knew about the choice I made?
    • Defensibility Test: Could I defend my choice before a committee of my peers (or others)?
    • Reversibility Test: Would I think the choice was good if I were the one affected by it?
    • Colleague Test: What do my colleagues say when I describe the problem and my solution?
    • Professional/Organizational Test: What might ASCE (IIE, IEEE, ASME, etc) say about my choice?
    Ethics Evaluation Tests
    • Is it honorable (would you hide this action from anyone)?
    • Is it honest (does it betray a trust)?
    • Does it fall within your area of competence?
    • Does it avoid a conflict of interest (will your judgment be biased)?
    • Is it fair (does it violate the legitimate interests of others)?
    • Is it considerate (does it violate privacy or confidentiality)?
    • Is it conservative (in terms of time and resources required)?
    Ethics EvaluationTests
  • You're sitting across from a peer of yours, who is also a good friend on a professional level, who you know is trying to get a small business up and running &quot;on the side.&quot;  You already have recognized that he is, frankly, not the highest performer.  Over the past several weeks, you have also noticed that he is doing things for his business while at work.  Today, you notice that he has been holding a phone call with someone about his side business (not chatting, but actually conducting business) and that call is now just into the start of the second hour.   What do you do?
    • You are attending a conference in the U.S. as a representative of your company. A supplier passes out a small electronic gadget, valued at about $40, to everyone at the meeting. What do you do?
    • Accept the thoughtful gesture – since the gift is valued under $50, there is no need to report it.
    • Accept the gift, but be sure and report it to your manager. If your manager tells you to return it, you are required to comply.
    • Accept the gift, if declining puts you or the company in a awkward position. Then, immediately consult the Ethics Office for disposition.
    • Politely refuse to accept the gift.
    • (Ethics Challenge -- Case 6)
    • You work in Quality Assurance. You rejected some parts as non-conforming to specifications, but your manager told you to accept the part “As Is.” You don’t agree with the decision. What do you do?
    • Do nothing. It’s the manager’s decision to make.
    • Discuss it with your manager.
    • Call the Ethics HelpLine.
    • Ask the engineers who are responsible for the specification to clarify the situation.
    • (Ethics Challenge -- Case 18)
    • Employees in the department have noticed that your supervisor spends a good portion of his day doing homework for a company-sponsored college course. He also spends a significant amount of time making phone calls that they suspect are personal, and may be made a company expense. What should you do?
    • Tell the employees to just do their work & mind their own business.
    • Tell the employees that you don’t want to risk your job by becoming involved.
    • Suggest that your fellow employees contact the Ethics Officer or another company official.
    • Raise the issue directly with your supervisor.
    • (Ethics Challenge -- Case 24)
    • In a department meeting, your supervisor takes credit for some excellent work done by an absent colleague. What do you do?
    • Put the word out to your fellow workers as to who really did the work.
    • Seek a private meeting with the supervisor in order to make sure your colleague gets proper credit.
    • During an informal conversation with “the big boss,” casually let it slip that your colleague did not get the credit he deserved on a recent project.
    • Inform your colleague as to what took place, and let him take whatever action he desires.
    • (Ethics Challenge -- Case 29)
    • A co-worker is injured on the job. You are a witness and what you saw reflects poorly on the company. What do you do?
    • Don’t get involved
    • Contact the injured co-worker and offer to testify on her behalf.
    • Report what you saw to the company.
    • Protect the company by refusing to testify as a witness for the injured person.
    • (Ethics Challenge -- Case 30)
    • When a particular male supervisor talks to any female employee, he always addresses her as “Sweetie.” You have overheard him use this term several times. As the supervisor’s manager, what should you do?
    • Nothing, since no one has complained.
    • Talk to the supervisor and explain that, while he may have only good intentions, his use of “Sweetie” could be offensive to employees and must stop.
    • Order the supervisor to call an all-hands meeting to discuss the company policy on sexual harassment.
    • At the next staff meeting, remind all supervisors of their obligation to maintain a professional work environment, free of discrimination or harassment of any kind.
    • (Ethics Challenge -- Case 42)
    • You work in Production Control. You plan to add a porch to your house, and you visit a lumberyard to get ideas and a price. During the discussion, the sales manager says, “Oh, you work for the XYZ company. They buy a lot from us, so I’m going to give you a special discount.” What do you do?
    • Like finding a $20 bill on the street, take the discount. When you get back to the office on Monday, ask the supervisor if all employees were eligible for the discount.
    • Say “I work for a different division of the XYZ Company – am I still eligible for the discount?”
    • Ask for clarification – “Is that special discount available to all XYZ employees?”
    • If a deal sounds too good to be true, it probably is.
    • (Ethics Challenge -- Case 44)
    • A subordinate (direct report) on one of your projects has trouble getting along with others. What do you do?
    • Don’t get involved.
    • Confront the worker, indicating what needs to change, how it needs to change, how you will monitor for improvement, and working with the employee to come up with solutions, etc.
    • Report what you saw to your manager.
    • Protect the company by documenting the problem.
    • As a senior research scientist, you receive a research paper for peer review. The paper essentially duplicates research you are writing for publication. If this paper is published before your paper you will be “scooped” in the profession. Christmas holidays are coming – and you had planned to use the free time to complete your paper and submit it for open literature review. Reviewing the competing paper will take valuable time, and allowing it to be published first will drastically affect your career. What do you do?
    • Without reading the paper, and knowing its contents could affect your conclusions, you return the manuscript to the journal editor, explaining your situation. Then you quickly finalize your paper and submit it.
    • Let Christmas holidays “conveniently” delay the review, then provide negative review comments, knowing that this will delay publication.
    • With the editor’s permission, contact the other author to see if you might combine efforts and produce an even better paper.
    • Review the paper, provide objective comments and return it promptly.
    • (Ethics Challenge -- Case 47)
    • As an engineer, you have a duty to protect the safety of workers and the public
    • As an engineer, you also have a duty to respect the interests/desires of your employer or client
    • At times, these two goals may be at odds
    • Having a basis on which to evaluate the ethics of decisions is extremely important
    Ethics Summary
    • Also known as:
      • Project Termination
      • Project Administrative Closure
      • Project Feedback
      • Project Audit
    • Why should this be a formal, pre-planned activity rather than just an ad hoc, deal with it as it happens situation?
    Project Closure
    • Closure activities?
      • Verify product/service output
      • Closeout financial system
      • Gather lessons learned
      • Update records
      • Complete final project performance reporting
      • Archive records
    • Closure results/outputs?
      • Project Closure/Formal Acceptance
      • Lessons Learned Documents
      • Project Archives
      • Released Resources
    Project Closure
    • Verify product/service output
      • Does/Did it do everything you said it would?
        • As judged by the CUSTOMER
        • Partly objective judgment based on hard metrics
      • Is the customer satisfied?
        • As judged by the CUSTOMER
        • Partly subjective judgment
        • What might make customer dissatisfied even though the objective evidence says it was good?
    Project Closure
    • Closeout financial system
      • “ Collect” revenue
        • What do you do if revenue is to be paid you over a time period?
      • Pay final bills
        • How do you “close out” a long term bill?
      • Complete cost records
        • What records?
        • How does organization structure affect how this is handled?
    Project Closure - Financial
    • Gather lessons learned
      • Sometimes called “post mortem”
      • Analyze what went right and what went wrong on project
      • Analyze what would have been done differently in hindsight
      • Quite a few companies fail to do this at all
      • Most companies try to do this in one meeting at the end
      • Best practice:
        • Plan for “interim” evaluation along the way
        • Have the meetings necessary to evaluate outcome
        • Get information via “non meetings” also
    Project Closure – Post Mortem
    • Update and Archive records
      • Finalize project records
      • Put all files, letters, correspondence, and other records of the project into an ORGANIZED file
      • Ensure the organized file is in a place that is accessible by the appropriate people for future projects
      • How would you protect the records for future use?
      • Update skill set information for resources
    Project Closure - Archiving
    • Complete final project performance reporting
      • Analyze, document, and report success and effectiveness of project
    Project Closure
    • Closure results/outputs?
      • Project Closure/Formal Acceptance
        • “ Last minute” documents to customer
          • As Builts
          • Manuals
        • A formal document of acceptance
      • Lessons Learned Documents
      • Project Archives
      • Released Resources
        • Final resources need formal leave from the project
        • The PM can check out but can never leave
    Project Closure
    • Project Management Office (PMO)
      • Not very standard in objective/work
      • May be responsible for providing support functions (project coordination, other admin functions), to providing “process ownership” and training, to actually being responsible for project results
    • Sometimes known by other names
      • Project Management Process Group
      • Project Management Center Of Excellence
      • Program Management Office
    Project Management Office
    • Project Management Institute (PMI) and Various Engineering Discipline Institutes
      • Valuable education and extra insight
      • Help make you that extra bit competitive
      • Benchmarking opportunity
      • Networking, Networking, Networking
    PM Miscellaneous - PMI
    • Project Management Maturity Model (PMMM)
      • Organizations with a solid project management infrastructure achieve an average of 20 % improvements in productivity, customer satisfaction, cost reductions, & ROI.
    • From &quot;The Value of Project Management in Organizations,&quot; a report based on research conducted by Project Management Solutions Inc. & The Center for Business Practices
    PM Miscellaneous - PMMM
    • Project Management Maturity Model (PMMM)
      • Progressive development of an enterprise-wide project management approach, methodology, strategy, and decision-making process. Appropriate level of maturity will vary by organization based on specific goals, strategies, resource capabilities, scope, needs, etc.
      • Maturity to which an organization should strive is determined during a detailed assessment conducted by a professional PM consulting team. The organization has achieved full project management maturity when it has met the requirements and standards for project management effectiveness as defined by the Project Management Maturity Model and can demonstrate improvements like organizational efficiency, on-time project delivery, cost control/controlled cost reductions, and profitability.
    PM Miscellaneous - PMMM
  •  
    • Learn how your business works!
      • How the business makes money
      • How what you do contributes to making money
      • How you can do things better to make money
      • How you can avoid doing things that will hurt other parts of the business’ ability to make money
    My PM Words To Live By
  • In order to win the game, you must score more than your opponent. Knowing that even the best athlete only scores a certain percentage of the times s/he makes an attempt, to increase the number of points s/he scores, s/he must take more shots and/or improve her/his skills. Those are the only choices available. A new player, particularly one without a great deal of natural talent, can improve his/her percent of shots scored to shots taken through diligent practice. Practice with the help of an experienced coach can increase the percentage even further. There comes a point where the athlete will score fewer and fewer additional points for every hour spent practicing (the law of diminishing returns). Her/his gains from learning fall off more and more drastically. That doesn’t mean the athlete should stop practicing! It only means s/he needs to find another way of increasing the chances of scoring. Short of cheating or only playing against drastically inferior opponents, the sole, honest remaining other way to score more is to make more attempts! My PM Words To Live By
    • Be honest, always
    • Be straightforward, always
    • Don’t be afraid to admit you’re wrong
    • Take your work seriously, not yourself
    • Don’t let your fears get in the way of progress
    • Learn to understand and be proficient at politics
    • Remember * everyone * on your team – even a small, innocuous thing like a piece of foam can destroy a complex machine like the space shuttle
    My PM Words To Live By