Project Mng Basics Belarusian State University Final

Project Management Basics Belarusian State Economic University 22 March 2010, Minsk Nejat Murat Erkan, PMP Project Manager

Biography of the Presenter
Murat Erkan started out his career as a business consultant in USA. In the following years, he continued his career in pharmaceutical industry. He worked as a Project Leader in Health Marketing at Glaxo Wellcome, Inc. L ater on, he worked as a Project Manager in the field of allergy and immunology at Greer Laboratories, Inc. in North Carolina. After spending 7 years in USA, he moved back to Turkey in 2000. H e continued his career in telecommunication industry at Telsim (now Vodafone Turkey). In 2005, he started to work at the leading GSM operator in Turkey. Since then, he is working as Senior Project Manager at Turkcell Telecommunication, Inc. and currently, managing multinational/multi vendor Telco/IT projects.
Mr. Erkan holds a Bachelor of Science degree (BSChE) from Yildiz Technical University, Istanbul and a Master of Business Administration (MBA) degree from Campbell University in N C , USA. Currently, h e is the president of IPYD (Istanbul Project Management Association), he is a member the Project Management Institute and PMI Turkey Chapter and he is the PMI College of Performance Management-Global Advisory Committee representative for Turkey.
He gained his PMP certification in September 2005. Currently is the sponsor for Dynamics 2010 which is the largest international project management congress in Turkey ( www.ipyd.org ) .

Murat Erkan was born in Istanbul in 1970. He fluent ly speaks Turkish, English, French and basic Spanish. He is married and has a 2,5 year old son.

Agenda
Project General Description
Project Manager Skills Set
Project Management Basic P rocesses
Project Management Knowledge Areas
Project Management as a New Profession

“ A project is a temporary endeavor undertaken to create a unique product, service, or result. ” (PMBOK) What Is Project?

(1) defined start and finish date,
(2) defined objectives,
(3) defined scope,
(4) defined budget,
(5) “one-time event planning”
A Project Should Have:

Benefits of Project Management
Meet Stakeholder Expectations
Define and Achieve Project Objectives
Scope
Quality
Cost
Time
Others (Environmental, Safety, etc.)
Use of a common vocabulary
Develop high performing teams

Developping a new service or a product
Designing an engine, car, train etc…
To build a bridge, house etc…
Sending spaceships to planets
ERP, Billing Systems, Base Stations etc…
Social projects, Unicef, Greenpeace etc..
Project Application Areas

A Successful Project Quality Time Cost Scope

10 Factors For Successful Projects
Management Support
User Involvement
Experienced Project Manager
Clear Business Goals
Realistic Scope
Standardized Project Management Tools
Meeting Company’s Basic Needs
Methodology
Trustworthy Estimations
Others

66 % of project could not meet its objectives, overran budget and time
20% of projects which are budgeted above 200K USD are canceled due to lack of risk management plan aligned with project plan
75% of unsuccessful projects fail due to lack of PMO organisation within the company
2007 Gartner’s IT Research

2002 S tandish S tudy
34% successful - on time, within budget, met the specs, and produced useful deliverables
51% mixed success-cost and/or schedule overruns
22% overran the financial budget
42% overran the schedule budget
15% outright failures - no results

2002 S tandish S tudy - Conclusions
Results after seven years (2009) :
Successful projects: improved from 15% success to 34% success
But, plenty of room for further improvement, amid tightening schedules and financial budgets

Failure Reasons in Projects

Transitioning to the new PM
CONVENTIONAL PM
Tangible Results
Authoritarian Management
Clear Goals and Roles
MODERN PM
Leadership-based
Time over Cost
Matrix problems
THE NEW PM
Uncertainty
Complexity
Progressive Elaboration
Before 1970 21 st Century

The Project Management Office
The proliferation of the PMO …
Manage the utilization of shared resources allocated to projects
Identify and develop PM Best Practices and Standards
Coach, Mentor, Train, and provide Oversight to Project Teams
Monitor compliance with established methodology and standards

Program and Portfolio Management
Emergence of program and portfolio mgt
Discrete programs and projects
Integration of work schedules & resource plans
Prioritization of projects and programs
Linking project management to Strategic Plans
All projects, programs, and portfolios must support strategic plans
Resources are assigned to projects through portfolios and programs in accordance with business objectives and priorities
Strategic Plans drive performance measurement

Project Teams
Team makeup, skills, and qualifications
Team organization
Effective teamwork
Effective use of project management processes
Effective use of organizational process assets
Adapt to enterprise environmental factors
Empowered to take ownership & make decisions
Manage stakeholder expectations

Product Owner and Clients
Define and communicate expectations
Take ownership for the product
Stay involved during project execution
Respond to requests for information & decisions in timely manner
Voice concerns in a timely manner

What is PMI?
Founded by 6 visionaries in 1969
Dedicated to advancing the State-of-the-Art in PM
Early growth in Construction, Defense and Aerospace
Accelerated growth in the 80’s with IT sector’s entry
Certification exams started in 1984
PMBOK introduced in 1985
PMBOK revised in 1996, 2000, 2004 and in 2008; 300+ members contributed
www.pmi.org

PMI Now
PMBOK 2008 (Fourth Edition) is the current version since January 2009
PMI statistics (PMI.org):
Approximately 340,000 members
Nearly 250 chapters in 70 countries
Approximately 360,000 Certified PMPs

What is PMBOK?
PMBOK = Project Management Body of Knowledge
The PMBOK identifies that subset of the project management body of knowledge generally recognized as good practice that are applicable to most projects most of the time.
“ Application area extensions” are additionally accepted knowledge and practices for a category of projects in one application area.

The PMBOK Knowledge Areas
Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resources Management
Communications Management
Risk Management
Procurement Management
SCOPE PROJECT INTEGRATION QLTY TIME COST CONTR. /PROC. COMM. HR RISK

Project Life Cycle Process Groups INITIATING PLANNING EXECUTING MONITORING & CONTROLLING CLOSING Define a new project or phase by obtaining authorization. Establish scope, refine objectives and develop course of action to attain those objectives. Complete the work defined in the project management plan to satisfy the specifications. Track, review and regulate the progress to meet the performance objectives defined in the project management plan. Finalize all activities to formally complete all project / phase / contractual obligations.

Types of Projects SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
PROJECTS WITH TANGIBLE PRODUCTS
Engineering / Construction
Weapons Development
Industrial Production
PROJECTS WITH INTANGIBLE PRODUCTS
Business Process Reengineering
Software and System Development
Organizational Development
Event Management
R & D Projects
IN - HOUSE PROJECTS
CONTRACTED PROJECTS

Definition of a Program SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program. Project PROGRAM Related work Project Sub-Program Project Project

Definition of a Portfolio The projects and programs of the portfolio may not necessarily be interdependent or directly related; they compete for monetary and other corporate resources. Program PORTFOLIO A collection of projects, programs and other related work that are grouped together to facilitate effective management of the work to meet strategic business objectives. Other related work Project Program Project Project

Project Phases SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Project Phases are divisions within a project where extra control is needed to effectively manage the completion of a major deliverable.
Project phases can be sequential, overlapping, or interactive.
The five process groups (initiating, planning, executing, monitoring & controlling, closing) are NOT project phases.
The five process groups should be followed for each phase.

Product Life Cycle TIME
Effort
Source
Cost
Time Design Development Application Closing The PRODUCT life cycle adds operational and support costs to the total cost of owning and operating. Level

Project and Product Life Cycles SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK Corporate or Business Life Cycle Policy Identify Project Realization Product Dispose Planning Needs Conception In Service Product Life Cycle Feasibility Acquisition Operations Dispose Concept Develop Implement Closeout Project Life Cycle

About the Project Manager SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
The Project Manager (PM) is the focal point that ties together the various parts of the project, and acts as a center of communication between the various parties and stakeholders involved in a project.
The PM needs to be a patient and mature person who can lead by example and handle stress caused by setbacks and uncertainty.
Attributes
Knowledge (Know)
Personal (Be)
Performance (Do)

Requisite Project Manager Skills SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Demonstrated ability to:
Lead
Manage Change
Recruit And Retain Staff
Map And Manage Risk
Plan Effectively
Communicate
Listen
Empathize
Motivate
Problem Solver
Decision Maker
Influence (Esp. Senior Management)

Critical PM Responsibilities SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Develop Project Charter
Influence Project Team Selection
Direct The Planning Of The Project
Assure Team Members Understand/Accept Roles
Manage Stakeholder Expectations
Obtain Essential Approvals And Commitments
Coordinate And Direct All Project Activities
Achieving The Goals And Objectives Of The Project
Keep Project Stakeholders Informed
Direct The Handover Of The Product
Ensure Proper Close - Out Of The Project
Arrange For Post-completion Support And Audit

PM Authority SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Direct access to the Project Sponsor and/or Client
Select tools and methods
Obtain contributing resources
Establish project priorities
Resolve internal and external conflicts
Obtain project performance data
Initiate, review, approve project communications
Approve all project commitments
Control contingency assignments
Obtain information from stakeholders
Input performance evaluations of team members

Project Management Roles SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK Project Sponsor Project Manager Project Leader Project Leader Project Leader

Project Management Roles SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
PROJECT SPONSOR
Responsible for feasibility, authorization & chartering
Responsible for providing financial resources
PROJECT MANAGER
Responsible for the total project from initiation to closing
Leader of the Project Team
Communication, Planning, Leadership, Diplomacy
Serves as a single Point of Contact (POC) for the Client
PROJECT (Technical, Team, Functional) LEADER
Leading subject matter experts (SMEs)
Half expert, half manager
Member of the Project Management Team

Fuctional Organization General Manager Fuctional Manager Fuctional Manager Fuctional Manager Project Manager Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member

Matrix Organization (Weak) General Manager Functional Manager Functional Manager Functional Manager Team Member Team Member Team Member Project Manager Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Project Team

Matrix Organization (Strong) General Manager Manager of Project Manager Functional Manager Functional Manager Project Manager Project Manager Project Manager Project Manager Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Project Team

Where Do Projects Come From? SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
New Product Development
A Legal Requirement
Staying Abreast Of Technology
The Result Of A Proposal
Restructuring
Operational
Organizational
Staying Ahead Of The Competition
The primary source of projects is a strategic or business plan

Project Selection Criteria SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
RETURN ON INVESTMENT (ROI)
Product Life Span
Present Value of all Capital Investment Costs
Present Value of Cash Flows
During Product Life
INTERNAL RATE OF RETURN (IRR)
Interest Rate that yields NPV = 0
Targeted ROI for the Enterprise
Prime Rate + Riskiness Factor

Project Approval & Prioritization SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Submit Project proposal to the governing board
Board Decision: GO/NO GO
Establish Portfolio and/or Program Prioritization Criteria
Prioritize Projects
Select Projects based on priorities and available resources (e.g. financial, HR, others)

Project Definition Uncertainty SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
How well is the final result defined?
Use Organizational Process Assets to analyze the levels of uncertainty
Results from past projects
Expertise of the Feasibility Study Team
Total Uncertainty General Uncertainty Specific Uncertainty Total Certainty No Information Partial Information Complete Information

Project Life Cycle Process Groups

Level of Activity in Project Life Cycle

Project Initiation SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Select the Project Manager
Finalize Project Statement of Work (high level requirements)
Prepare and issue the Project Charter
The Project Manager assembles the Project Management Team
Identify Stakeholders
Conduct the Kick-Off and Partnering Meetings
INITIATING STEPS IN:

Project Charter SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
The Project Charter documents the business needs, current understanding of the customer’s needs, and the new product, service or result that it is intended to satisfy ; it is an announcement that legitimizes the Project and the Project Manager.
It enables the Project Manager to solicit and obtain resources and professional support from functional managers in staffing the project team and executing the project.

The Project Planning Process SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK Ref: PMBOK 4 th Ed., Figure 3-8, page 47

The Work Breakdown Structure (WBS) SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team, to accomplish the project objectives and create the required deliverables.
The WBS subdivides the project work into smaller, more detailed and manageable pieces of work.
Work Packages (lowest level component), can be scheduled, cost-estimated, monitored and controlled

The WBS Is Used For: SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Detailing Project Objectives into Scope Documents
Assigning Responsibilities
Generating Project Schedules
Resource Planning
Developing Cost Estimates
Implementing Scope (Change) Management
Risk Management
Project Performance Management
Team Building

Key Definitions SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Rolling wave planning (progressive elaboration)
Precedence Diagramming Method (PDM=AON)
Dependencies (logical relationships)
Finish-to-Start – FS
Finish-to-Finish – FF
Start-to-Start – SS
Start-to-Finish – SF
Dependency Types:
Mandatory
Discretionary
External
Leads or Lags
Schedule Network Diagrams

Network-Based Scheduling SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
CPM by DuPont/Sperry Rand for Maintenance Planning
Used when durations can be estimated with confidence
PERT by US Navy/Booz, Allen Hamilton for POLARIS
Used when durations can not be based on experience
ADM(Arrow Diagramming Method) = AOA(Activity On Arrow)
PDM(Precedence Diagramming Method) = AON(Activity On Node)

Definitions of the Critical Path SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
The sequence of activities that determines the duration of the project. It is :
The longest path through the project
The path with minimum float (slack)
The path that determines the shortest time in which the project can be completed; the project can not be completed in less time than its critical path.

Work Breakdown Structure Project Main Tasks Sub-Tasks Activities 001 100 200 300 110 120 111 112 113 310 320 321 322

Project Organisation WBS Leve 1 WBS Level 2 Project Manager Feasibilty Management Prototype Management Manufacturing Management Project Management Planning Management Advetisement Planning Communic. Planning Training Planning Stocking Planning

Forming A Project Plan
What activities needs to be done?
In what order do we do the activities?
How long does it take to complete the activity?
Who will do the activity?
How long will it take to complete all of the activities?

Prioritizing the Activities
Putting the activies in order
Defining the milestones
Planning the precedence between the activities
Techniques Used
Gantt Diagram
CPM
(Critical Path M ethod)

Gantt View in MS Project

Estimating the Activities
Expert Opinion
Brain storming with project team
Parametric Estimating
Weighted Average

Network Diagram
AOA (Activity on arrow)
AON (Activity on node)
A B C D E F 2 3 4 5 1 b c a d e f

Defining the Crtical Path Exercise: Which is CP? And how many days? A B C D E F 3 7 2 3 4 3 0 G 2 2

Schedule Compression Techniques SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
CRASHING
For Resource/Effort driven activities
Reducing duration by increasing resources
Obtaining the greatest compression for the least incremental cost
FAST TRACKING
For Time or Process driven activities
Phases or activities normally performed in sequence are performed in parallel (concurrently)

Risk Management SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Risk Management includes the processes of conducting risk management planning, identification, analysis, risk response planning, and monitoring and control on a project.
The objectives of Project Risk Management are to increase the probability and impact of positive events, and to decrease the probability and impacts of negative events in the project.

Risk Definition SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK RISK EVENT A
… likely impact or amount
at stake should it occur.
it has a likelihood / probability
of occurring, and a…
is an uncertain event that, if it occurs, has a positive or negative effect on the attainment of a project’s objectives;

Project Risk Categories (RBS) SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK
Financial – Cost of Money
Resource – Availability and Market Prices
Technical or Quality – State of the Art, Emerging
Commercial - Competitor Activities, Market
Corporate – Organizational Structure & Stability, Labor
Legal – Licenses, patents, lawsuits, contracts
Project Management – PM Resources, Planning etc.
Environmental
Others
* RBS: Risk Breakdown Structure

Benefits of Alignment to Business Outcomes SCOPE QLTY TIME COST CONTR. /PROC. COMM. HR RISK Planning Definition Execution Start Up Ability to influence the outcomes Closure Cost of Mitigation Steps High Low Early risk management and mitigation builds better valued projects Full None

ISO 3 1 000 & Project Risk Management Process QLTY TIME PMBOK vs. ISO 31000 risk process – differences lie in the framework & context

QLTY TIME www.theirm.org [email_address]
Education, training and professional development
Enterprise risk management
Sector independent
Academic + practical
2200 members worldwide
Networking and information

Response Planning Strategies QLTY TIME
Negative Risks (Threats)
Avoid
Mitigate
Transfer
Accept
Positive Risks (Opportunities)
Exploit
Share
Enhance
Accept

Performance Measurement Baseline QLTY TIME 1. Define the work scope 2. Schedule the work 3. Allocate budgets to schedule 100 40 60 80 BUDGET AT COMPLETION PERFORMANCE MEASUREMENT BASELINE TIME $ PROGRAM BUDGET MANAGEMENT RESERVE

Scope Change Control

Earned Value Management

Performance Measurement
EARNED VALUE DEFINITIONS & FORMULAE:
BCWS = PV = PLANNED VALUE
BCWP = EV = EARNED VALUE
ACWP = AC = ACTUAL COST
CV = COST VARIANCE (EV - AC)
CPI = COST PERFORMANCE INDEX (EV/AC)
SV = SCHEDULE VARIANCE (EV-PV)
SPI = SCHEDULE PERFORMANCE INDEX ( EV/PV )

Performance Forecasting
DEFINITIONS
BAC = BUDGET AT COMPLETION
ETC = ESTIMATE TO COMPLETE
EAC = ESTIMATE AT COMPLETION
FORECAST
EAC = AC + ETC
EAC = AC + (BAC – EV)
EAC = BAC / CPI
EAC = AC + ((BAC – EV) / (CPI) (SPI))
VAC = VARIANCE AT COMPLETION (BAC – EAC)

Theories on HR
Douglass Mc Gregor: Theory X ve Y
Maslow Hierarchy Theory
Frederic Herzberg Theory
Conflict Solving
Power Types

Quality Planning Quality Control Point Quality Control Point Quality Control Point => Phase Deliverables => Final Deliverables Analysis Phase Developing Phase Executing Phase Closing Phase => Phase Deliverables => Phase Deliverables

Communication Planning
Progess Meeting Planning
Regular Status Reporting
Deciding project communiting tools/media
Communicating Language (in intern’l projects)

Procurement / Contracting
Contract Types:
Fixed Price Contracts
Fixed Price + Incentives
Time & Material
Required documents in contracts
Project Plan
SOW (statement of work)
Acceptance Criteia

Procurement / Contracting

Closing the Project
Get approval from the customer in written
Deliver all components of the project
Returnall of the project resources
Finalize the project documentation and archieve them
Close the project accounts and contract
Announce the closing to all stakeholders

Project Management Websites
Project Management Institute (PMI)
www.pmi.org
International Project Management Association (IPMA)
www.ipma.ch
Association for Project Management (APM)
www.apm.org.uk
İstanbul Proje Yönetim Derneği (İPYD)
www.ipyd.org

Спасибо = Teşekkür The Maiden’s Tower

N. Murat Erkan Project Manager Turkcell & Life:) [email_address] +90 532 210 2437 Turkey 25 909 00025 Belarus Contact Details

College degree plus 4,500 hrs of PM experience
35 hours of contact training in PM
Computer-based exam with 200 questions; 107 correct answers required to pass
Test of competency: questions on knowledge and ability to solve problems
Increasingly becoming a pre-requisite for employment & career growth
PMP CERTIFICATION

BENEFITS OF PMP CERTIFICATION
A Documented proof of proficiency in Project Management
Knowledge of Project Management Standards and Guidelines
Documented commitment to comply with the Project Management Code of Ethics
Preferred status in job search* and upward mobility:
US and Canada: many of the job postings
In the EU, Japan and Australia: almost 50% of job postings (estimate )
In the rest of the world: beginning to appear in job postings

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Project Mng Basics Belarusian State University Final

by Artem Gerasimovich on Mar 24, 2010

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Project Mng Basics Belarusian State University Final — Presentation Transcript