Project Management 3 Project Management 3 Future Managers

Module 1: Fundamentals of project management Project Management 3 Future Managers

Module 2: Project management tools and techniques After completing this outcome, you will be able to: Demonstrate an understanding of project management tools and techniques Project Management 3 Future Managers

After completing this outcome, you will be able to:

Demonstrate an understanding of project management tools and techniques

Project management tools and techniques After completing this outcome, you will be able to: Collect and organise information to identify techniques and tools used in accordance with a project Identify the established standards and procedures for a range of project management tools and techniques Discuss and explain advantages and limitations of project management tools and techniques Demonstrate the application of project management tools and techniques and provide hard copy example Project Management 3 Future Managers

After completing this outcome, you will be able to:

Collect and organise information to identify techniques and tools used in accordance with a project

Identify the established standards and procedures for a range of project management tools and techniques

Discuss and explain advantages and limitations of project management tools and techniques

Demonstrate the application of project management tools and techniques and provide hard copy example

Key management tools and techniques We will look at the following: Project Management 3 Future Managers Benchmarking Project organisational structure Work breakdown structure Work packages Project scope statement Project scope change control Change control system Project charter Statement of work Contracts Network diagram Critical path Project duration compression Gantt or bar chart Milestones Cost control Cost estimating Control charts Cost/benefit analysis Project budgeting Project management information systems Status review meetings Quality audits Inspection Contingency plan

We will look at the following:

Benchmarking Benchmarking involves comparing actual or planned project practices to those of other projects to generate ideas for improvement and to provide a standard by which to measure performance Project Management 3 Future Managers

Benchmarking involves comparing actual or planned project practices to those of other projects to generate ideas for improvement and to provide a standard by which to measure performance

Purely project organisational structure When the project is separated from the rest of the parent organisation and becomes a self-contained unit, it is called a purely project organisation structure The advantages of this tool are: Communication is easier when team members are only required to communicate with other members of the team Team members report directly to the project manager The project manager has full authority over the project A project team can develop a strong sense of commitment Decision-making is easier, since the entire organisation does not need to be involved Project Management 3 Future Managers

When the project is separated from the rest of the parent organisation and becomes a self-contained unit, it is called a purely project organisation structure

The advantages of this tool are:

Communication is easier when team members are only required to communicate with other members of the team

Team members report directly to the project manager

The project manager has full authority over the project

A project team can develop a strong sense of commitment

Decision-making is easier, since the entire organisation does not need to be involved

Work breakdown structure A WBS identifies all of the deliverables required for a project and is a standard way to organise the work Outlined WBS Graphical WBS Project Management 3 Future Managers

A WBS identifies all of the deliverables required for a project and is a standard way to organise the work

Outlined WBS

Graphical WBS

Work breakdown structure Benefits of a WBS The project team develops confidence in their goal A framework is provided within which you can identify projects separately from organisations, accounting systems, and funding sources Specific work packages are available with which you can estimate and assign work Responsibilities are clearly defined, resulting in accountability Team members find it easier to focus their attention on project objectives It is easier to develop detailed planning and documentation. Project Management 3 Future Managers

Benefits of a WBS

The project team develops confidence in their goal

A framework is provided within which you can identify projects separately from organisations, accounting systems, and funding sources

Specific work packages are available with which you can estimate and assign work

Responsibilities are clearly defined, resulting in accountability

Team members find it easier to focus their attention on project objectives

It is easier to develop detailed planning and documentation.

Other breakdown structures A bill of materials (BOM) is a breakdown of the physical elements needed to assemble a manufactured product A contractual work breakdown structure (CWBS) is used to detail the work breakdown of any products or services related to a project that are provided by someone outside the organisation. An organisational breakdown structure (OBS) identifies which deliverables have been assigned to functional departments within the organisation A resource breakdown structure (RBS) identifies which deliverables have been assigned to individuals within the organisation. Project Management 3 Future Managers

A bill of materials (BOM) is a breakdown of the physical elements needed to assemble a manufactured product

A contractual work breakdown structure (CWBS) is used to detail the work breakdown of any products or services related to a project that are provided by someone outside the organisation.

An organisational breakdown structure (OBS) identifies which deliverables have been assigned to functional departments within the organisation

A resource breakdown structure (RBS) identifies which deliverables have been assigned to individuals within the organisation.

Work packages What are work packages? The lowest level of a deconstructed package Benefits of work packages Work packages are a way of modularising the project into manageable segments. Thus, tracking the progress of work packages is a way to assess and control the work done on a project By breaking work into work packages, you can determine the skills you need to complete the work on a project, and you can quantify how many people will be required to do the work Work packages allow you to communicate the work that needs to be done to other team members without getting into too much detail Breaking the work into work packages ensures that all work sequences are identified and understood. Project Management 3 Future Managers

What are work packages?

The lowest level of a deconstructed package

Benefits of work packages

Work packages are a way of modularising the project into manageable segments. Thus, tracking the progress of work packages is a way to assess and control the work done on a project

By breaking work into work packages, you can determine the skills you need to complete the work on a project, and you can quantify how many people will be required to do the work

Work packages allow you to communicate the work that needs to be done to other team members without getting into too much detail

Breaking the work into work packages ensures that all work sequences are identified and understood.

Project scope statement A scope statement defines the project’s scope, or size A scope statement also describes the problems or opportunities addressed by the project, the project’s objectives, how progress will be measured, and what risks and assumptions can affect the project’s outcome Project Management 3 Future Managers

A scope statement defines the project’s scope, or size

A scope statement also describes the problems or opportunities addressed by the project, the project’s objectives, how progress will be measured, and what risks and assumptions can affect the project’s outcome

Project scope change control A scope change is any adjustment that is made to the approved project scope as it is defined by the work breakdown structure (WBS) Scope change control is one part of overall project control, which also includes time control, cost control, quality control, risk control, and contract control. Depending on the modification, scope change control can either widen or narrow the overall project scope. Project Management 3 Future Managers

A scope change is any adjustment that is made to the approved project scope as it is defined by the work breakdown structure (WBS)

Scope change control is one part of overall project control, which also includes time control, cost control, quality control, risk control, and contract control. Depending on the modification, scope change control can either widen or narrow the overall project scope.

Change control system A change control system is a collection of formal, documented procedures that defines how project performance will be monitored and evaluated, and includes the steps by which official project documents may be changed Many change control systems include a group responsible for approving or rejecting proposed changes The change control system must also include procedures to handle changes that may be approved without prior review Project Management 3 Future Managers

A change control system is a collection of formal, documented procedures that defines how project performance will be monitored and evaluated, and includes the steps by which official project documents may be changed

Many change control systems include a group responsible for approving or rejecting proposed changes

The change control system must also include procedures to handle changes that may be approved without prior review

Project charter The document that formally authorises the project Provides project manager with the authority to apply organisational resources to project activities Project Management 3 Future Managers

The document that formally authorises the project

Provides project manager with the authority to apply organisational resources to project activities

Statement of work (SOW) A statement of work (SOW) is a description of the products or services for a project that are completed by a group outside the organisation. Once you determine that part of a project is going to be outsourced, the SOW should be included in the scope statement Project Management 3 Future Managers

A statement of work (SOW) is a description of the products or services for a project that are completed by a group outside the organisation.

Once you determine that part of a project is going to be outsourced, the SOW should be included in the scope statement

Contracts A contract is a legally binding agreement A contract can be terminated if there is contract violation A contractor might also have the right to terminate a contract if the project is not going well Project Management 3 Future Managers

A contract is a legally binding agreement

A contract can be terminated if there is contract violation

A contractor might also have the right to terminate a contract if the project is not going well

Network diagram Project Management 3 Future Managers A B C F G K D E H I J

Network diagrams Networks are used when planning a project’s schedule for a variety of reasons: Networks highlight dependencies among project activities Networks identify the critical path Networks indicate amounts of time needed for each activity Networks illustrate float and free float Networks indicate milestones on a network diagram Project Management 3 Future Managers

Networks are used when planning a project’s schedule for a variety of reasons:

Networks highlight dependencies among project activities

Networks identify the critical path

Networks indicate amounts of time needed for each activity

Networks illustrate float and free float

Networks indicate milestones on a network diagram

Critical path As part of a project network diagram, the critical path indicates the sequence of activities flow from a project’s start to finish and represents the earliest possible completion date for the project or the longest time duration of the project. Project Management 3 Future Managers

As part of a project network diagram, the critical path indicates the sequence of activities flow from a project’s start to finish and represents the earliest possible completion date for the project or the longest time duration of the project.

Project duration compression Crashing Crashing accelerates activity completion by using more resources to complete activities on the critical path Fast tracking Fast tracking is the rearrangement of activities in the network diagram to perform the activities simultaneously and therefore reduces project duration Project Management 3 Future Managers

Crashing

Crashing accelerates activity completion by using more resources to complete activities on the critical path

Fast tracking

Fast tracking is the rearrangement of activities in the network diagram to perform the activities simultaneously and therefore reduces project duration

Gantt or bar chart Project Management 3 Future Managers

Gantt or bar chart Advantages of a Gantt chart are: Incorporate the work breakdown structure to illustrate a project’s activity sequence from start to finish Show individual activity start and finish dates Summarise activity descriptions, which makes the charts easy to understand Can be updated simply by adding or deleting lines and columns from the chart Can be read easily by team members Project Management 3 Future Managers

Advantages of a Gantt chart are:

Incorporate the work breakdown structure to illustrate a project’s activity sequence from start to finish

Show individual activity start and finish dates

Summarise activity descriptions, which makes the charts easy to understand

Can be updated simply by adding or deleting lines and columns from the chart

Can be read easily by team members

Gantt or bar chart Disadvantages of a Gantt chart Doesn’t illustrate activity dependencies Doesn’t exhibit the effects of early or late activity start times Doesn’t show variations in activity duration Project Management 3 Future Managers

Disadvantages of a Gantt chart

Doesn’t illustrate activity dependencies

Doesn’t exhibit the effects of early or late activity start times

Doesn’t show variations in activity duration

Milestones Indicate that a series of activities is complete; Represent progress points Denote when a meeting should be held Although milestones might appear along the critical path in a project network diagram, it is important to note that milestones don’t affect the flow of a project Project Management 3 Future Managers

Indicate that a series of activities is complete;

Represent progress points

Denote when a meeting should be held

Although milestones might appear along the critical path in a project network diagram, it is important to note that milestones don’t affect the flow of a project

Cost control Steps to follow when controlling project costs include: Monitor project costs through status reports to detect variances from the cost baseline Identify why the variance has occurred Record any changes that are made to the cost baseline Avoid making inappropriate or unauthorised changes to the cost baseline Acquire authorisation for changes made to the cost baseline Inform project stakeholders of any changes made to the cost baseline Project Management 3 Future Managers

Steps to follow when controlling project costs include:

Monitor project costs through status reports to detect variances from the cost baseline

Identify why the variance has occurred

Record any changes that are made to the cost baseline

Avoid making inappropriate or unauthorised changes to the cost baseline

Acquire authorisation for changes made to the cost baseline

Inform project stakeholders of any changes made to the cost baseline

Cost estimating Cost estimating involves developing an approximation (estimate) of the costs of the resources needed to complete project activities Project Management 3 Future Managers

Cost estimating involves developing an approximation (estimate) of the costs of the resources needed to complete project activities

Control charts Control charts are a graphic display of the results, over time, of a process. They are used to determine if the process is “in control”. When a process is in control, the process should not be adjusted. Project Management 3 Future Managers

Control charts are a graphic display of the results, over time, of a process. They are used to determine if the process is “in control”. When a process is in control, the process should not be adjusted.

Control Charts Project Management 3 Future Managers

Cost / benefit analysis Benefit/cost analysis involves estimating tangible and intangible costs (outlays) and benefits (returns) of various projects and product alternatives, then using financial measures, such as return on investment or payback period, to assess the relative desirability of the identified alternatives. Project Management 3 Future Managers

Benefit/cost analysis involves estimating tangible and intangible costs (outlays) and benefits (returns) of various projects and product alternatives, then using financial measures, such as return on investment or payback period, to assess the relative desirability of the identified alternatives.

Project budgeting Cost budgeting involves allocating the overall cost estimates to individual activities or work packages to establish a cost baseline for measuring project performance The benefit of a budget is that it serves as a control mechanism Project Management 3 Future Managers

Cost budgeting involves allocating the overall cost estimates to individual activities or work packages to establish a cost baseline for measuring project performance

The benefit of a budget is that it serves as a control mechanism

Project management information system A PMIS consists of the tools and techniques used to gather and disseminate the outputs of project management processes. It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems Computerised tools Work breakdown structure (templates) Network templates Project Management 3 Future Managers

A PMIS consists of the tools and techniques used to gather and disseminate the outputs of project management processes. It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems

Computerised tools

Work breakdown structure (templates)

Network templates

Status review meetings Status review meetings are regularly scheduled meetings held to exchange information about the project Project Management 3 Future Managers

Status review meetings are regularly scheduled meetings held to exchange information about the project

Quality audits A quality audit is a structured review of other quality management activities. The objective of a quality audit is to identify lessons learned that can improve performance of this project or of other projects within the performing organisation Project Management 3 Future Managers

A quality audit is a structured review of other quality management activities. The objective of a quality audit is to identify lessons learned that can improve performance of this project or of other projects within the performing organisation

Inspection Inspection includes activities such as measuring, examining, and testing undertaken to determine whether results conform to requirements Project Management 3 Future Managers

Inspection includes activities such as measuring, examining, and testing undertaken to determine whether results conform to requirements

Activity 1 As an experienced project manager, advise a newly appointed project manager on the importance of project management tools, referring to the following: What is a project tool? Inform the newly appointed project manager on any ten basic, but valuable tools that he/she can use to help him/her to be successful with the project. Project Management 3 Future Managers

As an experienced project manager, advise a newly appointed project manager on the importance of project management tools, referring to the following:

What is a project tool?

Inform the newly appointed project manager on any ten basic, but valuable tools that he/she can use to help him/her to be successful with the project.