FUNDAMENTALS OF PROJECT MANAGEMENT

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  • 1. Project Management for Your Local Section / Chapter Lee Stogner, PMP 2005 Leadership Workshop Tucson, Arizona March 12, 2005
  • 2. Seminar Objectives
  • 3. Benefits of Sound Project Management
    • Less overall project cost
    • Less strain on working capital
    • Effective use of resources
    • More timely project completion
    • Higher quality of the final product
  • 4. Project Management Overview
    • What is a project?
    • What is project management?
    • What is project success?
    • What factors determine project success?
  • 5. A Project When a task...
    • Has a defined objective
    • Has a deadline
    • Requires integration of knowledge and experience from various organizations
  • 6. Project Management is: PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM
  • 7. Project Management is: Causing a Planned Undertaking to Happen PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM
  • 8. Project Management
    • Complex and numerous activities
    • Unique - a one time set of events
    • Finite - a begin and end date
    • Limited resources and budget
    • Many people involved
    • Sequenced activities
    • End product or service must result
  • 9. Program Management
    • Larger in scope than a project
    • Made up of several projects
    • Made up of a number of similar products
    • Programs tend to be more permanent
  • 10. Peanuts
  • 11. What is Project Success?
  • 12. Factors in Project Success
    • Project Management Philosophy
    • Project Management Role and Responsibility
    • Project Management Principles and Practices
  • 13. Project Management Philosophy
    • The “Golden Rule” of Project Management is three words:
      • Plan
      • Organize
      • Control
  • 14. Project Management Roles and Responsibilities
    • Project Execution
    • Maintain Customer Relations
    • Create a Positive Environment
  • 15.
    • Project Execution Strategy
    • Project Management
    • Quality
    • Safety
    • Risk Management
    • Design/Develop/Program
    • Implementation
    • Documentation
    • Training
    Project Execution Plan Project Execution Plan
  • 16. Customer Relations
    • Develop Communication
    • Ensure Timely Participation
    • Include the Customer on the Project Team
    • Develop Trust and Confidence
  • 17. Create a Positive Environment
    • __________ Effectively
    • __________ Member of the Team
    • Utilize _______ _______ Activities
    • __________ Success
  • 18. Safety Maintain a safe working environment
  • 19. Project Management Principles and Practices
    • Define Project Objectives
    • Develop Project Execution Plan
    • Define Baselines for Control
    • Manage Risk
    • Close out Effectively
  • 20. Define Project Objectives
    • Expected deliverables
    • Required resources (total installed cost)
    • Required timing (opening date)
    • Safety and Environmental
    • Total Quality
  • 21. Define S.M.A.R.T. Project Objectives
    • S pecific
    • M easurable
    • A ssignable
    • R ealistic
    • T ime related
  • 22. Alignment Process
  • 23. Team Requirements
    • Skills needed ?
    • Individuals identified ?
    • When are they needed ?
    • Where are they ?
    • Training needed ?
    • Interpersonal compatibility ?
  • 24. The Four Cornerstones of Project Management Cost Scope Schedule Quality
  • 25. Cornerstones of Project Management Cost Scope Schedule Quality
  • 26. Scope P oor scope definition is the major contributing factor to cost overruns in the engineering and construction industry. CAUTION
  • 27. Cost Influence Relative Time
  • 28. Initial Scoping Effort
    • Sets the baseline for cost and schedule
    • Must involve the right people
    • Must include implementation
    • Identifies items not included
    • Maximum influence on project cost
    • Breaks project into manageable pieces
  • 29. Drawings Estimate Cost Reports Contracts • Facility • Services Bill of Materials WBS Element/ Work Package $ Schedule The WBS
  • 30. Successful Work Breakdown
    • Status and completion is easily measured
    • Definite beginning and end
    • It is familiar with prior experience
    • Manageable work assignments
    • One continuous stream of work from start to finish
  • 31. Steps for constructing a WBS
    • Divide the project into major objectives
    • Partition objectives into activities
    • Divide activities with missing characteristics into subactivities
    • Repeat #3 until all subactivities have desired characteristics
    • Lowest subactivities are the basis of work packages
  • 32. The effect of “creeping scope” is a major cause of cost overruns $ Creeping scope
  • 33. To manage creeping scope
    • Keep scope documents current
    • Freeze design after the estimate has been approved
    • Allow only those changes that are justified by benefit
    • Use an effective change management procedure
  • 34. The Four Commandments of Good Project Scope Written Well defined Clearly understood Achievable
  • 35. Cornerstones of Project Management Cost Scope Schedule Quality
  • 36. Aspects of Cost
    • Estimate Basis for Control
    • Cost Control Application of control procedures to follow financial progress
  • 37. Estimate Requirements
    • Define project cost integrate scope, schedule, and resources
    • Define estimate basis
    • Identify potential risks
    • Identify contingency/escalation
    • Identify items not included
  • 38. Elements of Cost Control
    • Establish the baseline (estimate)
    • Measure variation from baseline
    • Take corrective action
  • 39. Cost Control System
    • Detailed project scope/work package
    • Control estimate
    • Chart of accounts
    • Cost status report
    • Forecasting process
    • Change management procedure
    • Cash flow forecast
  • 40. Project Control Project Day 1 -------------- To do list: Kick off meeting Project schedule
  • 41. Integration of Cost and Time
  • 42. Basic Elements of the Control System
    • A project plan: Scope, schedule, estimates
    • A monitoring system which measures performance against plan
    • A reporting system which identifies deviations from the plan
    • A system which communicates deviations to the right people
    • Corrective actions
    • Forecasting the project outcome
  • 43. Key Control Philosophies
    • Define the baseline for control 1._______ 2. ________ 3. _______ 4. ________
    • Divide project into manageable pieces
    • Remember: Ability to influence cost is maximum early in the project
    Project Success
  • 44. Key Control Philosophies (con’t)
    • Define and manage risk/opportunity
    • Integrate scope and estimated cost into schedule
    • Make informed decisions
    • Anticipate deviations/changes
    • Adopt the “end product” approach
    • Plan ahead from phase to phase
    Project Success
  • 45. Basic Project Control Steps
    • Define the project scope
    • Develop a project plan consistent with:
      • project scope
      • estimates (cost constraints)
      • schedule (constraints
      • resources available
    • Report progress and compare with budget and forecast
    • Control by taking corrective action
  • 46. Contingency - Plan for Change
  • 47. Cornerstones of Project Management Cost Scope Schedule Quality
  • 48. Schedule
    • Planning - Identification of the sequence of events necessary to complete the project
    • Scheduling - Determination of timing and assembly of project activities to give overall completion time
  • 49. Front End Schedule A way to get the project started right Design Program Install / Test System Turnover
  • 50. Basis for Project Schedule
    • Project objectives
    • Project scope
    • Project milestones
    • Project estimate (budget)
    • Resource availability
  • 51. The Critical Path
    • Identifies project priorities
    • Shows activity relationships
    • Enables schedule analysis
    • Reflects project strategy
    • Promotes teamwork
  • 52. Basic Network Diagramming
  • 53. Expanded Network Diagramming
  • 54. The Bar Chart
  • 55. The Gantt Chart
  • 56. Project Schedule - Tools Microsoft Project
  • 57. Project Schedule - Tools www.primavera.com
  • 58. Five Phases of Project Management
  • 59. Cornerstones of Project Management Cost Scope Schedule Quality
  • 60. Design Basis Continuous Improvement Quality Assurance Quality Control Total Project Quality Management Total Project Quality Management
  • 61. Project Quality Improvement
    • Develop a quality management plan early in the project
    • Include representatives from all affected organizational units on the project team
    • Initiate the project effectively through kick-off and alignment meetings
    • Review performance and measure success
  • 62. Project Quality Improvement (con’t)
    • Define scope and review periodically
    • Limit scope changes formal change procedure require justification
    • Complete more engineering up-front before defining cost and scheduling
    • Obtain constructability, operability and maintainability input to design
  • 63. Cost of Quality
  • 64. Risk Management
  • 65. Manage Risk
    • What is risk?
    • Sources of risk
    • Kinds of risk
    • Risk Management Process
      • Identify risks
      • Define consequences
      • Develop a mitigation plan
      • Document
  • 66. Sources of Risk Technical Financial Socio-Economic Contractual
  • 67. Risk Management Process Identify Risk Analyze Risk Respond to Risk Document Risk
  • 68. Sources of Help to Identify Risk
    • Site investigations
    • Contract documents
    • Schedule
    • Team brainstorming
    • Body of experience
  • 69. Risk Control Methods
    • Avoid
    • Reduce
    • Share
    • Insure
    • Accept
      • with contingency
      • without contingency
    • Contain
  • 70. Risk Containment
    • Clearly define insurance responsibilities in contracts
    • Use qualified personnel
    • Document and communicate project strategy
    • Define roles and responsibilities
    • Prepare contingency plans for critical activities
    • Use up-front team building
  • 71. Risk Containment (con’t)
    • Use qualifies contractors and vendors
    • Preconstruction work briefings (especially safety)
    • Rehearse critical activities or use mock-ups
    • Use strong project control systems
    • Manage contingency
  • 72. Project Close-out
  • 73. Project Closeout - Major Phases
    • Obtain client acceptance
    • Document the project
    • Conduct the post implementation audit
    • Issue the final report
  • 74. Pyramid Cartoon
  • 75. Plan the Work… Work the Plan Project Execution Plan Successful Project Management
  • 76. Successful Project Completion
  • 77. Project Management - Learning More www.pmi.org
  • 78. Project Management - Learning More Project Management Body of Knowledge
  • 79. Project Management - Learning More www.amazon.com
  • 80. Project Management - Get Certified www.pmi.org
  • 81. Project Management - IEEE EMS www.ewh.ieee.org/soc/ems
  • 82. Class Exercise - Plan a Project
  • 83. Lee Stogner - Contact Information Lee Stogner, PMP Rockwell Automation Mobile 864-360-9415 Email [email_address]