Project Management
Second Session
Egypt Scholars
Presented by
Mohamed Khalifa Hassan
Jan 2014
© Mohamed Khalifa, 2014 All ...
2
Benefit
measurement
methods
Scoring and
Rating
System
Benefit &
Cost
Cash Flow
Analysis
Techniques
Pay Back Period
Disco...
1- Benefit Cost Ratio (BCR)
A ration attempting to identify the relationship between the Benefits and
Costs of proposed pr...
Scoring and Rating System
4
System Description
Decision tree
In a decision tree model, selection criteria are arranged alo...
1- Pay Back Period Analysis:
Time to “Break Even” or payback initial
investment.
5
Year Project A Project B
0 -1000 -1000
...
4 - Internal Rate of Return
• The discount rate that makes the NPV of the future cash return equal to the initial
investme...
2.2 Project governance
7
© Mohamed Khalifa, 2010 All Rights
Reserved
• Stakeholders:
- People or organization that have a vested interest
in the outcome of the project or who is actively
invo...
• Project Sponsor:
– An Executive who has the power and authority to
make decisions. (If the sponsor is outside of the com...
• Project Manager:
– The individual responsible for managing all aspects of
the project. The Project manager:
• Works with...
• Project team members:
(May include internal and/or external resources)
The individuals who work with project manager to ...
12
© Mohamed Khalifa, 2010 All Rights
Reserved
2.3 Initiating the project and developing the
project charter
13
1 – Project Statement Of Work (SOW)
• A document describing the product or services to be supplied for the project.
• S...
4 – Enterprise environmental factors:
• Enterprise environmental factors are external influences that affect project succe...
1 – Expert judgment
Knowledge provided based upon expertise in a knowledge area, an application area, an
industry, or disc...
• Project Charter Development Outputs:
– The Project charter is the only output from develop project charter
process.
– In...
Develop Project Charter
Workshop
(20 Min.)
17© Mohamed Khalifa, 2010 All Rights Reserved
2.8 Initiating the project and de...
© Mohamed Khalifa, 2010 All Rights
Reserved
18
3. Requirements
3.1 Conducting stakeholder assessments
3.2 Understanding and managing resistance
3.3 Communicating and refining requiremen...
20
Identify Stakeholders
Identify stakeholders is the process of identifying all people or organizations impacted
by the p...
1. Project Charter:
Project charter can provide information about internal and external parties
involved in and affected b...
Stakeholder analysis is a process of systematically and gathering and
analyzing quantitative and qualitative information t...
23
Power
Interest
Keep
Satisfied
Monitor
(Minimum Effort)
Manage
closely
Keep
Informed
Power / Interest Grid with Stakehol...
24
Stakeholder Register
This contains all details related to the identified stakeholders including but not limited to:
Sta...
Identify Stakeholders
Workshop
(20 min.)
25
© Mohamed Khalifa, 2010 All Rights
Reserved
3.2 Understanding and managing
resistance
– Technical
• Process, procedures, and technology
– Social/political
• Changes i...
27© Mohamed Khalifa, 2010 All Rights Reserved
3.3 Communicating and refining requirements
1 – Interviews
An Interview is a formal or informal approach to discover information from
stakeholders by talking to them ...
4 – Group Creativity Techniques
Several group activities can be organized to identify project and product
requirements.
Cr...
6 – Questionnaires and Surveys
The most appropriate with broad audiences, when turnaround is needed, and
where statistical...
Requirements Documentation
Describes how individuals requirements meet the business need for the
project.
It may start out...
32
Plan Communication is the process of determining the project
stakeholder information needs and defining a communication...
Communication Models
A basic model of communication demonstrates how information is
sent and received between two parties,...
Communication Methods :
Interactive Communication : Between two or more parties
perform multidirectional exchange of infor...
• Communication management plan :
– Describes the project team’s approach to communication project
information this includ...
© Mohamed Khalifa, 2010 All Rights
Reserved
36
4. Work Breakdown Structure (WBS)
4.1 The central role of the WBS
4.2 Developing a usable WBS
4.3 Using the WBS to clarify product constraints
and activitie...
• Definition:
– A work breakdown structure is a logical of project deliverables
arranged in a hierarchical structure.
– A ...
Create WBS is the process of dividing project deliverables and
project work into smaller, more manageable components.
39© ...
WBS:
It will organize deliverables and work packages into a manageable
hierarchy. It should not be confused with other kin...
• Activity :
– Is an element of project work that requires action to produce a deliverable.
• Activities share some common...
42
Define activities is the process of identifying the specific actions to be
performed to produce the project deliverable...
43
Activity List:
A definitive list of activities that are
necessary to complete in order to
produce deliverables.
Milesto...
© Mohamed Khalifa, 2010 All Rights Reserved
44
WORK PACKAGE/ACTIVITY DESCRIPTION
Project Name/Number: Prepared by: Date:
C...
4.4 Using the WBS to facilitate project
development
– Planning
– Budgeting
– Estimating
– Scheduling
– Performance measure...
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المحاضرة الثانية - إدارة المشاريع

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سلسلة محاضرات إدارة المشاريع المقدمة من مؤسسة علماء مصر http://www.egyptscholars.org/pm

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المحاضرة الثانية - إدارة المشاريع

  1. 1. Project Management Second Session Egypt Scholars Presented by Mohamed Khalifa Hassan Jan 2014 © Mohamed Khalifa, 2014 All Rights Reserved 1
  2. 2. 2 Benefit measurement methods Scoring and Rating System Benefit & Cost Cash Flow Analysis Techniques Pay Back Period Discounted Cash Flow Net Present Value (NPV) Internal Rate of Return (IRR) Decision tree Criteria profiling Weighted factor Q-Sorting Delphi technique © Mohamed Khalifa, 2010 All Rights Reserved 2.1 Project selection
  3. 3. 1- Benefit Cost Ratio (BCR) A ration attempting to identify the relationship between the Benefits and Costs of proposed project. Used to measure both quantitative and qualitative factors since some cost and benefits cannot be measured exclusively in financial terms. BCR = PV benefits / PV Costs PV benefits = Present Value of Benefits PV Costs = Present Value of Cost Example : PV Revenue = $ 4000 PV Cost = $ 2000 Benefit Cost Ratio = PV benefits / PV Costs = 4000/2000 = 2 Indicate that for every $1 investment (Costs) the company will gain $2 (Benefits) 3 © Mohamed Khalifa, 2010 All Rights Reserved 2.1 Project selection
  4. 4. Scoring and Rating System 4 System Description Decision tree In a decision tree model, selection criteria are arranged along the branches of a tree flowchart. The project is evaluated against criterion. If the project fails to meet any criterion, it is removed from consideration. Criteria profiling This is similar to the decision tree in that the project is evaluated using one criterion at a time. However, in this model the project continues to be considered even if it fails to meet some of the criteria. Weighted factor This type of model is similar to criteria profiling, but different criteria may be weighted and factored into the scoring. Q-sorting In a Q-sorting model, groups of people rate the relative priority of a number of projects. Delphi technique In the Delphi technique, individuals can be located remotely and may remain anonymous, yet still participate in group decision making. People participating in a Delphi process are given criteria, asked to rate a project on a zero-to-ten scale, and provide reasons for their ratings. © Mohamed Khalifa, 2010 All Rights Reserved 2.1 Project selection
  5. 5. 1- Pay Back Period Analysis: Time to “Break Even” or payback initial investment. 5 Year Project A Project B 0 -1000 -1000 1 500 100 2 400 300 3 300 400 4 100 600 Pay back 2.33 yrs 3.33 yrs 2- Return On Investment (ROI) (Net Income) Cash Invested = 1000 Project A : Avg Annual Income = (500 +400+300+100) /4 = 325 ROI = (325 / 1000) * 100 = 32.5% Project B : Avg. Annual Income = (100+300+400+600)/4= 350 ROI = (350 / 1000)* 100 = 35% 3 – Net Present Value (NPV) The present value of an investment minus the initial investment. A negative NPV signals a poor investment risk. i : Project Cost of capital (Interest Rate) If NPV > 0 Accepted Project If NPV < 0 Rejected Project If NPV in both project > 0 Choose the biggest value ni CFn i CF i CF CFNPV )1( ........ 2)1( 2 )1( 1 1 0 + ++ + + + += 18.49 )10.01( 600 )10.01( 400 )10.01( 300 )10.01( 100 1000 82.78 )10.01( 100 )10.01( 300 )10.01( 400 )10.01( 500 1000 4321 4321 = + + + + + + + +−= = + + + + + + + +−= B A NPV NPV Cash Flow Analysis Techniques © Mohamed Khalifa, 2010 All Rights Reserved 2.1 Project selection
  6. 6. 4 - Internal Rate of Return • The discount rate that makes the NPV of the future cash return equal to the initial investment. A Favorable IRR should be higher than the hurdle rate. • The discount rate that makes the PV(inflows) = PV (outflows) After solve the IRR for A & B For Project A, The IRR that solves this equation is 14.5% For Project B, The IRR that solve this equation is 11.8% 6 n IIR CFn IRR CF IRR CF CFNPV )1( ........ )1()1( 2 2 1 1 0 + ++ + + + += 0 )1( 600 )1( 400 )1( 300 )1( 100 1000 0 )1( 100 )1( 300 )1( 400 )1( 500 1000 4321 4321 = + + + + + + + +−= = + + + + + + + +−= BBBB B AAAA A IRRIRRIRRIRR NPV IRRIRRIRRIRR NPV © Mohamed Khalifa, 2010 All Rights Reserved 2.1 Project selection
  7. 7. 2.2 Project governance 7 © Mohamed Khalifa, 2010 All Rights Reserved
  8. 8. • Stakeholders: - People or organization that have a vested interest in the outcome of the project or who is actively involved in a project. - Stakeholders take on various roles and responsibilities on projects. - They may have a positive or negative influence on a project 8© Mohamed Khalifa, 2010 All Rights Reserved 2.2 Roles and responsibilities of the project manager and the project sponsor
  9. 9. • Project Sponsor: – An Executive who has the power and authority to make decisions. (If the sponsor is outside of the company, such as a customer, the duties listed here may be the responsibility of the project manager.) • Has the financial resources for the project. • Sign and publishes the project charter. • Has ultimate responsibility for project success. • Sign off on all planning documents and change requests. • Authorize team to use resources. • Champion and mentors the project manager and team • Reviews progress and quality. • Cuts through red tape and expedites activities 9© Mohamed Khalifa, 2010 All Rights Reserved 2.2 Roles and responsibilities of the project manager and the project sponsor
  10. 10. • Project Manager: – The individual responsible for managing all aspects of the project. The Project manager: • Works with stakeholders to define the project. • Plans, Schedule and budgets project activities with team input. • Works with the team to carry out project plans. • Monitors performance and takes corrective action. • Keeps the sponsor and the stakeholders informed. • Request and documents scope changes. • Acts as a liaison between the project team and other stakeholders. 10© Mohamed Khalifa, 2010 All Rights Reserved 2.2 Roles and responsibilities of the project manager and the project sponser
  11. 11. • Project team members: (May include internal and/or external resources) The individuals who work with project manager to carry out plans and produce the project work result. • Project management team : The project team members who perform project management activities. 11 © Mohamed Khalifa, 2010 All Rights Reserved 2.2 Roles and responsibilities of the team
  12. 12. 12 © Mohamed Khalifa, 2010 All Rights Reserved 2.3 Initiating the project and developing the project charter
  13. 13. 13 1 – Project Statement Of Work (SOW) • A document describing the product or services to be supplied for the project. • SOW documents the business need for the project, a description of the project and a description of the product requirements and characteristics. • SOW specifies the relationship between the business need and the product or services being created to meet that need. • internal Projects : Developed by Initiators or Sponsors External Projects : Developed by Customer as a part of bid document. 2 – Business Case Business case is created as a result of one or more of the following: - Market demand - Organizational need - Customer request - Technology advance - Legal requirement - Social need 3– Contract (When Applicable) : If the project is commissioned for an external customer’s organization is an input for project charter development. © Mohamed Khalifa, 2010 All Rights Reserved 2.3 Initiating the project and developing the project charter
  14. 14. 4 – Enterprise environmental factors: • Enterprise environmental factors are external influences that affect project success like : – Company culture and organization structure - Existing Human Resources. – Marketplace condition - Government or Industry Standards – Stakeholder risk tolerances - Information System Infrastructure 5 – Organizational Process Assets: • Policies and procedures - Learning and Knowledge from previous projects • Template and guidelines - Corporate Knowledge base for sorting and retrieving information 14 © Mohamed Khalifa, 2010 All Rights Reserved 2.3 Initiating the project and developing the project charter
  15. 15. 1 – Expert judgment Knowledge provided based upon expertise in a knowledge area, an application area, an industry, or discipline relevant to the project charter development process. Expert Judgment may be from internal or external sources such as stakeholders, industry group, functional units, and so on. 15 © Mohamed Khalifa, 2010 All Rights Reserved 2.3 Initiating the project and developing the project charter
  16. 16. • Project Charter Development Outputs: – The Project charter is the only output from develop project charter process. – In many companies the project manager is responsible for its creation, but is issued by the sponsor. – The Project Charter is a document that makes the project official and authorized the project manager to lead the project and draw on organizational resources as needed. – It include:- • Project purpose or justification • Measurable project objectives and related success criteria. • High-level requirements • High-level project description • High-level risks • Summary milestone schedule • Summary budget 16 © Mohamed Khalifa, 2010 All Rights Reserved 2.3 Initiating the project and developing the project charter
  17. 17. Develop Project Charter Workshop (20 Min.) 17© Mohamed Khalifa, 2010 All Rights Reserved 2.8 Initiating the project and developing the project charter
  18. 18. © Mohamed Khalifa, 2010 All Rights Reserved 18 3. Requirements
  19. 19. 3.1 Conducting stakeholder assessments 3.2 Understanding and managing resistance 3.3 Communicating and refining requirements 3.4 Change control process 3.5 Communications © Mohamed Khalifa, 2010 All Rights Reserved 19 3. Requirements
  20. 20. 20 Identify Stakeholders Identify stakeholders is the process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success © Mohamed Khalifa, 2010 All Rights Reserved 3. 1 Conducting stakeholder assessments
  21. 21. 1. Project Charter: Project charter can provide information about internal and external parties involved in and affected by project. 2. Procurement documents: If the project is the result of a procurement activity or is based on an established contract, the parties in that contract are key project stakeholders. 3 – Enterprise Environmental factors : The enterprise environmental factors that can influence the identify stakeholders process include, but not limited to: - Organization or company culture and structure - Governmental or industrial standards. 4 – Organizational Process Assets: - Stakeholder register templates - lessons learned from previous projects - Stakeholder registers from previous projects. 21 © Mohamed Khalifa, 2010 All Rights Reserved 3. 1 Conducting stakeholder assessments
  22. 22. Stakeholder analysis is a process of systematically and gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project. Stakeholder analysis generally follows the steps described below:- – Step one: Identify all potential project stakeholders and relevant information such as their roles, departments, interest, knowledge levels, expectations and influence levels. - Step two: Identify the potential impact, classify them so as to define an approach strategy. - Step three: Assess how key stakeholders are likely to react or respond in various situations. 22 © Mohamed Khalifa, 2010 All Rights Reserved 3. 1 Conducting stakeholder assessments
  23. 23. 23 Power Interest Keep Satisfied Monitor (Minimum Effort) Manage closely Keep Informed Power / Interest Grid with Stakeholders © Mohamed Khalifa, 2010 All Rights Reserved 3. 1 Conducting stakeholder assessments High HighLow
  24. 24. 24 Stakeholder Register This contains all details related to the identified stakeholders including but not limited to: Stakeholder Management Strategy:- The stakeholder management strategy defines an approach to increase the support and minimize negative impact of stakeholders throughout the entire project life cycle. Name Position Location Role in the project Contact Information Major Requirements Main Expectations Phase with the most interest Classification (Internal / External) © Mohamed Khalifa, 2010 All Rights Reserved 3. 1 Conducting stakeholder assessments
  25. 25. Identify Stakeholders Workshop (20 min.) 25 © Mohamed Khalifa, 2010 All Rights Reserved
  26. 26. 3.2 Understanding and managing resistance – Technical • Process, procedures, and technology – Social/political • Changes in established relationships with others and the organization – Personal – “What’s in it for me?” – Company – “What’s in it for the company?” – Professional interests – “What’s in it for my career?” – Peers’ and friends’ interests – “What’s in it for others?” © Mohamed Khalifa, 2010 All Rights Reserved 26
  27. 27. 27© Mohamed Khalifa, 2010 All Rights Reserved 3.3 Communicating and refining requirements
  28. 28. 1 – Interviews An Interview is a formal or informal approach to discover information from stakeholders by talking to them directly. 2 – Focus group Focus groups bring together prequalified stakeholders and subject matter experts to learn about expectations and attitudes about the proposed product, service or result. 3 – Facilitated Workshops: Requirements workshop are focused sessions that bring key cross-functional stakeholders together to define product requirements. Workshops are considered a primary technique for quickly defining cross-functional requirements and reconciling stakeholder differences. 28© Mohamed Khalifa, 2010 All Rights Reserved 3.3 Communicating and refining requirements
  29. 29. 4 – Group Creativity Techniques Several group activities can be organized to identify project and product requirements. Creativity techniques that can be used are : Brainstorming, Nominal group technique, Delphi Technique, Idea/mind mapping affinity diagram. 5 - Group Decision Making Techniques: Group decision making is an assessment process of multiple alternatives with an expected outcome is the form of future actions resolution. Methods of reaching a group decision are Unanimity , Majority , Plurality, Dictatorship 29© Mohamed Khalifa, 2010 All Rights Reserved 3.3 Communicating and refining requirements
  30. 30. 6 – Questionnaires and Surveys The most appropriate with broad audiences, when turnaround is needed, and where statistical analysis is appropriate. 7 – Observations It called “Job Shadowing” is usually done externally by observer viewing the user performing his /her job. It cal also be done by a “Participant observer” who actually performs a process or procedure to experience how it is done to uncover hidden requirements. 8 – Prototype It allows stakeholders to experiment with a model of their final product rather than only discussing abstract representations. 30 © Mohamed Khalifa, 2010 All Rights Reserved 3.3 Communicating and refining requirements
  31. 31. Requirements Documentation Describes how individuals requirements meet the business need for the project. It may start out at a high level and become progressively more details as more is known. It must be Measurable and testable, traceable, complete, consistent and acceptable to key stakeholders. Requirements Management Plan Document how the requirements will be analyzed , documented , and managed throughout the project. Requirement Tractability Matrix 31 © Mohamed Khalifa, 2010 All Rights Reserved 3.3 Communicating and refining requirements
  32. 32. 32 Plan Communication is the process of determining the project stakeholder information needs and defining a communication approach © Mohamed Khalifa, 2010 All Rights Reserved 3.4 Communications Communication Plan
  33. 33. Communication Models A basic model of communication demonstrates how information is sent and received between two parties, defined as the sender and receiver. The key components of this model include : - Encode : To translate thoughts or ideas into a language that is understood by others. - Message and feedback- message : the output of encoding - Medium : The method used to convey the message - Noise: Anything that interferes with the transmission and understanding the message. - Decode: to translate the message into meaningful thoughts or ideas. 33 © Mohamed Khalifa, 2010 All Rights Reserved 3.5 Communications
  34. 34. Communication Methods : Interactive Communication : Between two or more parties perform multidirectional exchange of information (Meeting , Conference call, video , ..). Push Communication : Sent to specific recipients who need to know the information (Fax , E-mail, letters, Memo, ..). Pull Communication : Used for very large volumes of information, or very large audience ( e-learning, Intranet and knowledge repositories) © Mohamed Khalifa, 2010 All Rights Reserved 34 3.5 Communications
  35. 35. • Communication management plan : – Describes the project team’s approach to communication project information this includes:- • What information is communicated to whom , by whom , when and in what manner. • It document how information is collected, archived and accessed. • Flow charts of the information flow in the project, workflow with possible sequence of authorization, list of reports and meeting plans. • Communication constraints . 35 © Mohamed Khalifa, 2010 All Rights Reserved 3.5 Communications
  36. 36. © Mohamed Khalifa, 2010 All Rights Reserved 36 4. Work Breakdown Structure (WBS)
  37. 37. 4.1 The central role of the WBS 4.2 Developing a usable WBS 4.3 Using the WBS to clarify product constraints and activities 4.4 Using the WBS to facilitate project development © Mohamed Khalifa, 2010 All Rights Reserved 37 4. Work Breakdown Structure (WBS)
  38. 38. • Definition: – A work breakdown structure is a logical of project deliverables arranged in a hierarchical structure. – A WBS defines the total scope of work required to complete the project. – The deliverables and their component sub-deliverables are represented on the WBS in levels of descending order. 38 Project Phase 1 Deliverable 1.1 Deliverable 1.2 Phase 2 Deliverable 2.1 Work Package 2.2.1 Work Package 2.2.2 Deliverable 2.2 Deliverable 2.3 Phase 3 Phase 4 Organization of Work in a WBS In WBS, major components of work can be grouped by: Major project deliverables. Life cycle phases. Organizational or functional responsibility. Geographical location. © Mohamed Khalifa, 2010 All Rights Reserved 4. The central role of the WBS
  39. 39. Create WBS is the process of dividing project deliverables and project work into smaller, more manageable components. 39© Mohamed Khalifa, 2010 All Rights Reserved 4.2 Developing a usable WBS
  40. 40. WBS: It will organize deliverables and work packages into a manageable hierarchy. It should not be confused with other kinds of breakdown structure like: Bill Of Material (BOM) or Resource Breakdown Structure (RBS). WBS Dictionary: – An auxiliary document containing details about each element in the WBS process, It may includes: • Code of accounts identification. * Quality requirements • Milestones * Time estimates • Contract information * Resources estimates • Cost * Information for measuring performance 40© Mohamed Khalifa, 2010 All Rights Reserved 4.2 Developing a usable WBS
  41. 41. • Activity : – Is an element of project work that requires action to produce a deliverable. • Activities share some common characteristics like : – Has an expected duration. – Consumes budget and/or human resources. – Is named in verb-noun format. Example (Revising a user manual – Digging footers). • The 8/80 rule : – The 8/80 rule refers to a guide line suggesting that activities should require more than 8 and fewer than 80 hours of effort to complete. 41© Mohamed Khalifa, 2010 All Rights Reserved 4.3 Using the WBS to clarify product constraints and activities
  42. 42. 42 Define activities is the process of identifying the specific actions to be performed to produce the project deliverables. © Mohamed Khalifa, 2010 All Rights Reserved 4.3 Using the WBS to clarify product constraints and activities
  43. 43. 43 Activity List: A definitive list of activities that are necessary to complete in order to produce deliverables. Milestone list: Helps prioritize activities during scheduling. © Mohamed Khalifa, 2010 All Rights Reserved 4.3 Using the WBS to clarify product constraints and activities
  44. 44. © Mohamed Khalifa, 2010 All Rights Reserved 44 WORK PACKAGE/ACTIVITY DESCRIPTION Project Name/Number: Prepared by: Date: Customer/End User Group: Contact Name: Project Type (S/M/L): Please complete a form for each WorkPackage item in the Project. See Work Package List for a full listing of the project Work Packages. Note that some fields will be completed after scheduling is completed. WORK PACKAGE LEADER INFORMATION Name Organization, phone number, email WORK PACKAGE FUNCTIONAL MANAGER INFORMATION Name Organization, phone number, email WBS Component Name and Number: Description: Deliverable(s) and Acceptance Criteria: Assumptions: Dependencies (Predecessor and successor tasks): Inputs: Outputs: Resource Requirements (Type of resource(s)): Responsible org. units and Responsibility (RASCI): Staff Assigned: Effort Estimate (Number of resource hours per type of resource): Estimated Cost: Estimated Duration: Start date: End date: Remarks: Current effort estimate to completion Actual Duration: Actual Start date: Actual End date: Actual Effort: 4.3 Using the WBS to clarify product constraints and activities Activity attributes : Information describing the different activities (Such as responsible team members, manpower required, and so on).
  45. 45. 4.4 Using the WBS to facilitate project development – Planning – Budgeting – Estimating – Scheduling – Performance measurement – Communication – Change management – Coordination – Control – Risk management © Mohamed Khalifa, 2010 All Rights Reserved 45
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