Project Management Training

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Project Management Training

  1. 1. Project Management A Tool For ATO Success Presented by: Pat A. Eigbe, PMP ® Office of Innovations and Solutions, ATO-P February 18, 2004
  2. 2. Briefing Outline <ul><li>Project Management (PM) as a Tool </li></ul><ul><li>Project Management Terminology </li></ul><ul><li>PM Relationship to other Disciplines </li></ul><ul><li>Project Management Processes </li></ul><ul><li>Project Management Tools & Techniques </li></ul><ul><li>Summary/Conclusion </li></ul><ul><li>Questions </li></ul>
  3. 3. Project Management as a Tool <ul><li>Minimize Fire Drills </li></ul><ul><li>Efficient Use of Resources </li></ul><ul><li>Develop Better Metrics </li></ul><ul><li>On-time and On-budget Product Delivery </li></ul><ul><li>Apply Lessons Learned </li></ul><ul><li>Better Communications Between Stakeholders </li></ul><ul><li>Make Proactive Decisions </li></ul>
  4. 4. Communications Tell the Marine to secure a building: they will kill everybody and point guns at the building. Tell the Army to secure a building: they will drive everybody out and lease the building to the highest bidder. Tell the Air Force to secure a building: they will surround the building and point guns at the house. Tell the Navy to secure a building: they will turn off all the lights, lock up the house, and go home. Understanding our Environment
  5. 5. Project Management (PM) Terms <ul><li>Project - A temporary endeavor undertaken to create a unique product or service . </li></ul><ul><ul><li>ATOP or VSCS - Project has a specific purpose with a start and an end date. </li></ul></ul><ul><li>Project Management - the Application of Knowledge, Skills, Tools, and Techniques to Project Activities to Meet Project Requirements. </li></ul>
  6. 6. Project Management Terms II <ul><li>Program - A group of related projects managed in a coordinated way. Programs usually include an element of ongoing activity. </li></ul><ul><ul><li>CPDLC, SMA, URET CCLD, pFAST,as FFP1 </li></ul></ul><ul><ul><li>PM Tools Development as part of Program Management </li></ul></ul><ul><li>A Project/Program Manager (PM) - The Individual Responsible for Managing a Project/Program. </li></ul>
  7. 7. Project Management Terms III <ul><li>Work Breakdown Structure (WBS) - “A deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. Each descending level represents an increasingly detailed definition of a project work. </li></ul>
  8. 8. Project Management Terms IV <ul><li>FAA standard wbs1-0.ppt </li></ul><ul><li>WBS Dictionary 3.1 </li></ul><ul><li>Requirement to use FAA Standard WBS – Mandatory </li></ul>
  9. 9. Project Management Terms V <ul><li>Deliverable – Tangible, verifiable work product/service. </li></ul><ul><li>Work Package – A deliverable at the lowest level of the work breakdown structure. A work package may be divided into activities. </li></ul><ul><li>Activity - Work elements with expected duration, cost, & resources that may be subdivided into tasks. </li></ul>
  10. 10. Project Management Terms – VI <ul><li>Stakeholder – Individuals or Organizations that will be Impacted by the Outcome of a Project. </li></ul><ul><li>OBS: An Organizational Chart Relating Work Packages to Organization Units. </li></ul><ul><li>Responsibility Matrix: Relates Organization Structure to WBS & Ensures that each Element of the Project’s Scope is Assigned to a Responsible Individual(s). </li></ul>
  11. 11. Project Management: Relationship to Others Disciplines Project Management Knowledge and Practice General Management Knowledge and Practice Application Area Knowledge and Practice The PMBOK ™ Figure is conceptual and overlaps are NOT proportional
  12. 12. Systems Engineering/PM Relationship – I <ul><li>PM Needs SE for </li></ul><ul><ul><li>Integrated PM System Design & Implementation </li></ul></ul><ul><ul><li>Requirements for HW and SW Tools </li></ul></ul><ul><li>SE Needs PM for </li></ul><ul><ul><li>Planning and tracking </li></ul></ul><ul><ul><li>Managing Resources </li></ul></ul><ul><li>PM System Designer Must Understand both </li></ul><ul><li>SE Not Necessary for PM Practitioners </li></ul>
  13. 13. Systems Engineering/PM Relationship - II <ul><li>Risk Management </li></ul><ul><ul><li>PM - Schedule, Cost & Technical/Quality </li></ul></ul><ul><ul><li>SE – Compatibility of Components of a System or Sub-System </li></ul></ul><ul><li>Quality Management </li></ul><ul><ul><li>PM - Process for Producing the Product </li></ul></ul><ul><ul><li>SE - Ensure Product Meets the Technical or Quality Specifications </li></ul></ul>
  14. 14. Systems Engineering/PM Relationship - III <ul><li>Configuration Management </li></ul><ul><ul><li>PM - Ensure Integrity of Schedule and System for Schedule Management </li></ul></ul><ul><ul><li>SE - Ensure Integrity of the System as Designed </li></ul></ul><ul><li>Change Management </li></ul><ul><ul><li>PM - Changes to Project Scope </li></ul></ul><ul><ul><li>SE - Changes to System Requirement </li></ul></ul><ul><li>Measurement </li></ul><ul><ul><li>PM – Program cost & schedule performance </li></ul></ul><ul><ul><li>SE – Technical Performance </li></ul></ul>
  15. 15. PMI Certification <ul><li>What is PMP ® </li></ul><ul><li>What PMP ® is not </li></ul><ul><li>PMP ® Value to Holder & Employer </li></ul><ul><li>PMP ® Certification Process link – visit </li></ul><ul><li>http://pm.act.faa.gov </li></ul>
  16. 16. PM Process Groups Project Information Flow Initiating Processes Planning Processes Control Processes Executing Processes Closing Processes
  17. 17. PM Process Flow
  18. 18. Initiation Processes <ul><li>Identify project and sponsor </li></ul><ul><li>Appoint Project Manager </li></ul><ul><li>Train team on </li></ul><ul><ul><li>Project Management Process </li></ul></ul><ul><ul><li>Project Plan (PMIP) </li></ul></ul><ul><li>Develop Program Directive to Include </li></ul><ul><ul><li>WBS that Covers the Scope </li></ul></ul><ul><ul><li>High-level Milestones </li></ul></ul><ul><ul><li>Budget resources </li></ul></ul>
  19. 19. Planning Processes I <ul><li>Identify Life Cycle approach </li></ul><ul><ul><li>Evolutionary (AMS 6101, Section 2.2) </li></ul></ul><ul><ul><li>Incremental </li></ul></ul><ul><ul><li>Waterfall </li></ul></ul><ul><li>Risk Management plan </li></ul>
  20. 20. Planning Processes II <ul><li>Get approval for Program Directive </li></ul><ul><li>Identify quality standards - use specs, IEEE, ISO, PMBOK ® </li></ul><ul><li>Organizational structure </li></ul><ul><li>Communications - who needs, what </li></ul><ul><li>Acquire human resources for projects </li></ul>
  21. 21. Planning Processes III ( Schedule Development) <ul><li>Update & Decompose WBS </li></ul><ul><li>Identify activities </li></ul><ul><li>Sequence </li></ul><ul><li>Estimate duration </li></ul><ul><li>Estimate cost </li></ul><ul><li>Allocate resources to work packages </li></ul><ul><li>Baseline schedule </li></ul>
  22. 22. Planning Processes IV <ul><li>Risk management detail: </li></ul><ul><ul><li>Identification </li></ul></ul><ul><ul><li>Analysis </li></ul></ul><ul><ul><li>Response </li></ul></ul><ul><ul><li>Procurement </li></ul></ul>
  23. 23. Implementation/Execution Processes <ul><li>Use the PMIP to execute project activities </li></ul><ul><li>Assess Technical Performance to assure product acceptance </li></ul><ul><li>Distribute project information </li></ul><ul><li>Make purchases </li></ul><ul><li>Develop team skills/competencies </li></ul><ul><li>Develop a Configuration Management plan </li></ul>
  24. 24. Performance Measurement <ul><li>Variances </li></ul><ul><li>Performance Indices </li></ul><ul><ul><li>Schedule performance Index (SPI) </li></ul></ul><ul><ul><li>Cost performance Index (CPI) </li></ul></ul><ul><li>Earned Value Management System (EVMS) </li></ul>
  25. 25. Earned Value Management System Highlights <ul><li>What is EVMS </li></ul><ul><li>Planning for EVMS </li></ul><ul><li>Tracking & Analysis </li></ul><ul><li>Elements of EV Analysis </li></ul><ul><li>Project Cost & Schedule Forecasting </li></ul><ul><li>EV Reporting </li></ul>
  26. 26. Earned Value Management System (EVMS) - I <ul><li>EV - Tool for Measuring Project Performance </li></ul><ul><li>Integrates Cost, Scope & Schedule measurements </li></ul><ul><li>Compares work actually accomplished to work planned </li></ul><ul><li>EV is an Early Warning System </li></ul><ul><li>Helps management make proactive decisions to keep projects on course </li></ul>
  27. 27. Earned Value Management System (EVMS) - II <ul><li>Involves Calculating 3 key Elements </li></ul><ul><ul><li>Budget - BCWS </li></ul></ul><ul><ul><li>Actual Cost - ACWP </li></ul></ul><ul><ul><li>Earned Value/Physical Progress - BCWP </li></ul></ul><ul><li>Basis for variance analysis </li></ul>
  28. 28. Planning for EVMS - I <ul><li>Create a work breakdown structure </li></ul><ul><li>Organize work into discrete work packages and activities </li></ul><ul><li>Allocate a budget to each of the activities </li></ul><ul><li>Develop a schedule and Assign resources </li></ul><ul><li>Must include all project work in the schedule </li></ul><ul><li>Establish the Project Baseline </li></ul>
  29. 29. Planning for EVMS - II <ul><li>Award performance credit for physical % complete: </li></ul><ul><li>0-100 </li></ul><ul><ul><li>Short duration tasks < 160 hours </li></ul></ul><ul><ul><li>EV is Zero until activity is complete </li></ul></ul><ul><li>50-100 </li></ul><ul><ul><li>Duration less than 600 hours </li></ul></ul><ul><ul><li>50% at start of activity & 50% at completion </li></ul></ul>
  30. 30. Planning for EVMS - III <ul><li>Interim milestone; </li></ul><ul><ul><li>Duration less than 600 hours </li></ul></ul><ul><ul><li>Based on completed milestone for task </li></ul></ul><ul><li>Level of Effort (LOE) </li></ul><ul><ul><li>Long duration & consistent tasks </li></ul></ul><ul><ul><li>Difficult to measure - no deliverables </li></ul></ul><ul><ul><li>Measured by duration of time used e.g. 10 weeks support is 50% complete at 5 weeks </li></ul></ul>
  31. 31. Tracking & Analysis <ul><li>Each update cycle/Reporting Period: </li></ul><ul><ul><li>Obtain physical % complete for each task </li></ul></ul><ul><ul><li>Calculate EV for each task </li></ul></ul><ul><ul><li>Sum up EV for all tasks as project EV </li></ul></ul><ul><ul><li>Calculate actual expenditure for actual work completed during the period </li></ul></ul><ul><ul><li>Compare the Cumulative EV to Actual expenditure </li></ul></ul>
  32. 32. Elements of EV Analysis - I <ul><li>Performance indices relate value of work performed to dollar spent. e.g. CPI = 0.65 means that for every dollar spent, actual value of the work performed is $0.65. </li></ul><ul><li>Cumulative CPI used to forecast project cost at completion </li></ul><ul><li>Cumulative SPI used to forecast project completion date </li></ul>
  33. 33. Elements of EV Analysis - II <ul><li>Cost Variance - Difference between budgeted cost an activity & actual cost of that activity </li></ul><ul><ul><li>CV = EV - ACWP </li></ul></ul><ul><li>Schedule Variance - Difference between scheduled completion & actual completion of an activity </li></ul><ul><ul><li>SV = EV - BCWS </li></ul></ul>
  34. 34. Elements of EV Analysis - III <ul><li>SPI – EV/Planned Value </li></ul><ul><li>SPI => 1.0, Project Schedule performing as planned or better </li></ul><ul><li>SPI < 1.0, Project not performing as planned - needs help </li></ul>
  35. 35. Elements of EV Analysis - IV <ul><li>CPI – EV/Actual Cost </li></ul><ul><li>CPI => 1.0, Project Cost performing as planned or better </li></ul><ul><li>CPI < 1.0, Project Cost not performing as planned - needs help </li></ul><ul><li>% Over/Under Budget = CAC - BCWS </li></ul>
  36. 36. Tracking & Analysis <ul><li>Each update cycle/Reporting Period: </li></ul><ul><ul><li>Obtain physical % complete for each task </li></ul></ul><ul><ul><li>Calculate EV for each task </li></ul></ul><ul><ul><li>Sum up EV for all tasks as project EV </li></ul></ul><ul><ul><li>Calculate actual expenditure for actual work completed during the period </li></ul></ul><ul><ul><li>Compare the Cumulative EV to Actual expenditure </li></ul></ul>
  37. 37. Project Cost & Schedule Forecast Methods <ul><li>Estimate at Completion (EAC) is total cost to complete an activity, work package, or a project expressed as: </li></ul><ul><ul><li>EAC = Actuals-to-date + Estimate to complete (ETC) </li></ul></ul><ul><li>Cost EAC = BAC/CPI </li></ul>
  38. 38. EV Reporting <ul><li>Interpret the output of EV calculations </li></ul><ul><li>Take corrective action as necessary </li></ul><ul><li>Recommend corrective action as necessary </li></ul>
  39. 39. Control Processes I <ul><li>Coordinate and control changes to project </li></ul><ul><ul><li>scope/requirements </li></ul></ul><ul><ul><li>schedule </li></ul></ul><ul><ul><li>budget </li></ul></ul><ul><li>Monitor and manage product quality </li></ul><ul><li>Measure progress and report performance </li></ul>
  40. 40. Control Processes II <ul><li>Monitor and control risks </li></ul><ul><ul><li>keep track of identified risks </li></ul></ul><ul><ul><li>monitor residual risks </li></ul></ul><ul><ul><li>identify new risks </li></ul></ul><ul><ul><li>ensure execution of risk plans </li></ul></ul><ul><ul><li>assess effectiveness in reducing risk </li></ul></ul>
  41. 41. Closing Processes <ul><li>Close out contracts </li></ul><ul><li>Resolve any outstanding issues </li></ul><ul><li>Document lessons learned </li></ul><ul><li>Evaluate project </li></ul><ul><li>Archive all project documents </li></ul>
  42. 42. Conclusion <ul><li>Defined Frequently used PM Terminologies </li></ul><ul><li>Discussed Objectives of Adopting Project Management Principles. </li></ul><ul><li>Discussed PM Processes, Tools & Techniques </li></ul><ul><li>Discussed EVMS Overview </li></ul><ul><li>Questions </li></ul>
  43. 43. References <ul><li>Project Management Institute (PMI), 2000. A Guide to the Project Management Body of Knowledge (the PMBOK ® Guide) </li></ul><ul><li>Stratton R. W., 1999. Improving SPI and CPI Calculations on LOE Heavy Programs, Proceedings of the 30th Annual PMI Seminars & Symposium </li></ul><ul><li>Fleming and Koppeman, 1996. Earned Value Project Management. </li></ul><ul><li>Ibbs W & Reginato J., 2002. Quantifying the Value of Project Management </li></ul><ul><li>Kerzner H, 2003. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. </li></ul><ul><li>FAST @ http://fast.faa.gov/wbs/wbssec.htm </li></ul>
  44. 44. Questions/Need Help? http://pm.act.faa.gov <ul><li>Pat A. Eigbe, PMP ® </li></ul><ul><li>Ext. 5-7857 </li></ul><ul><li>[email_address] </li></ul>

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