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Project Management Toolkit - Presentation

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  • Just like the project itself, project team is also temporary. Most often project teams are established for the sole purpose of the project. Unique outcome means that the project is designed to produce a new product or a new capability - for example, establishing of TQM to improve service standards. Similarly, a project could also be designed to produce research work.Progressive elaboration means that the project is constantly changing work in progress. The initially identified scope hardly ever remains the same as the project reaches its maturity. It also means that any project starts off with a simpler plan or idea which continues to become more and more elaborated as the work continues.
  • Examples of projects include but are not limited to: Developing a new product or service Resulting a change in culture, staffing or style of an organzation Acquiring a new system or set of processes Establishing or constructing a new facility Organizing an event Running a campaign Implementing a new business process Preparing to design a sales proposal / business development effort
  • PMs often talk abt the ‘Triple Constraint” - Project scope, cost and time. Project quality is affected by balancing these three factors. High quality projects deliver the project as per the planned scope, time and cost.
  • Pros of being a project managerSteppingstone to recognition and promotion Lots of variety - no two days are alike Gives a strong sense of accomplishment - IF the project is successfully completed These is significant freedom of choice - as you are in charge of making decisions and setting policies that other will follow It is a great leadership opportunityCons of being a PMRequires significant people skills - might have to deal with lots of politics Requires tolerance of ambiguity and uncertainty - since the project is constantly experiencing changes There is a lot of responsibility - but not enough authorit with respect to changing scope, time or cost of the project If you are a techie, you may feel disconnected from your main line of expertise You may be perceived by some as not having a “read job” :)
  • Exercise: Let’s suppose you are in charge of establishing a new territorial sales office / branch for your organization. Who all can be stakeholders in this project?Who all can be stakeholders?
  • Show a different presentation on how to use CPM
  • Transcript

    • 1. Manage Projects Professionally
      Project Management Toolkit
    • 2. Important Stuff
      Setting Standards
      What setting you want today?
      Formal or Informal?
      What learning environment would you prefer?
      Lecture-based or interactive?
      Would you like others to talk on the phone during the program?
      Would you like to receive rewards for good performance?
    • 3. Important Stuff
      Setting Standards
      Not a training program
      This is an EXPERIENCE – Learning Experience for ALL of us
      Be ready to give and receive constructive criticism
    • 4. Learning Contract
      A contract between YOU and YOURSELF
      Write ONLY what you want to remember later
      Not more than 10 points
      “The Only Barrier to Learning the Truth is to Assume You Already Know It”
      Confucius
    • 5. Why perform Project Management
      Preparation
    • 6. Understanding the Expectation Game
      Project Intro
    • 7. What is a Project
      Project Definition : "A temporary endeavor undertaken to create a unique product, service or result"
      Features
      Temporary: Has a finite duration, project ceases when its objective is achieved. Does not mean short duration. Normally, the product/service will outlive the project
      Unique : Doing something that has not been done earlier
      Progressive Elaboration: "Developing in steps, and continuing in increments". Development of details progressively
      Environment
      Constantly changing
      Building and Dismantling
      Precedes Operations
    • 8. What is a Project
      Projects and Operations
      Similarities:
      Performed by people
      Constrained by limited resources
      Planned, executed and controlled
      Differences:
      Operations: Ongoing, repetitive, necessary for sustaining the business
      Projects: Temporary, unique.
      Projects and Strategic Planning
      Projects are used to achieve strategic plans
      In response to market demands, customer requests, organizational needs, technological advances, legal requirements.
    • 9. What is Project Management
      Application of
      Knowledge (e.g. Domain areas - Pharmaceutical, construction, etc.)
      Skills (Managing)
      Tools & Techniques (Software)
      Project activities (e.g Time Management, Cost Management, etc.)
      The GOAL
      Project objectives
      PM is accomplished through processes
      Prepare – Plan – Execute - Close
      Project work typically involves
      Identifying requirements
      Defining objectives
      Balancing the competing demands for Scope, Time, Cost, and Quality
      Managing stakeholders
    • 10. Why Project Management?
      To enhance the probability of project success
      To focus on objectives - Scope, Time, Cost, Quality & Risk
      For effective response to rapid changes
      To manage effective utilization of resources
      To address stakeholders interests
      To manage risks effectively
      Achieve Financial Efficiency
      Project Cost
      Project Time
      Project Quality
      Lessons Learnt
      Create re-usable data and information for future use
    • 11. Project Lifecycle
      No ‘ideal’ project lifecyle
      It defines
      What work to do in each phase
      What deliverables to be generated
      Who all are involved in each phase
      How to manage each phase
    • 12. Project Lifecycle
      Common characteristics
      Phases are generally sequential
      Cost and staffing are low at the start, peak in the middle and are low again
      Risk is high at the start and slowly declines
      Influence of stakeholders is highest at the start and declines slowly
    • 13. Project Phases
      Preparaing
      Defines and authorizes the project or a project phase
      Panning
      Defines and refines objectives, and plans the course of actions required to attain the objectives and scope that the project was undertaken to address
      Executing
      Integrates people and other resources to carry out the project management plan for the project
      Regularly measures and monitors progress to identify variances from the project management plan so that corrective action can be taken when necessary to meet project objectives
      Closing
      Formalizes the acceptance of the product, service or result, and brings the project or a project phase to an orderly end
    • 14. Project Charter
      The document that formally authorizes the project
      Authorizes Project Manager to apply organizational resources
      PM should be assigned at the earliest feasible, but should always be assigned before start of the planning phase, or during charter development
      The Initiator or Sponsor is external to the project organization at a level appropriate to funding the project
    • 15. Project Charter
      Project Charter should address the following
      Requirements of the customers, sponsors and other stakeholders
      Business needs, project justification, strategic plan
      Assigned PM and authority (some other resources may also be pre-assigned)
      Product description/deliverables
      Summary milestone schedule
      Stakeholder influences
      Functional organization and its participation
      Constraints and assumptions relating to organization, environment and external factorsSummary budget
      Any change in the Project Charter should question the continuance of the project
    • 16. Well planned is almost done
      Planning
    • 17. Project Activity Planning
    • 18. The Columbus Disease
    • 19. Project Planning
      Planning is a process – not an outcome
      Planning should address
      Setting the boundaries | Scope statement
      Activity planning
      Activity schedule development
      Cost planning
      Risk planning
    • 20. Scope Statement
      Project scope statement should address the following areas:
      Project and product objectives
      Product/service requirements and characteristics
      Product acceptance criteria
      Project boundaries – What is included and what is not
      Project requirements and deliverables
      Project constraints
      Project assumptions
      Initial project organization
      Initial defined risks
      Schedule milestones
      Initial Work Breakdown Structure
    • 21. Project Activity Planning
      Steps to develop project activity schedule
      Specify the individual activities (WBS)
      Determine the sequence of these activities (Activity Table)
      Draw a sequence diagram (AON or AOA)
      Estimate the completion time for each activity (Activity Estimates)
      Identify the critical path (Using CPM)
      Create a schedule of activities
      Update the schedule / diagram as the project progresses
    • 22. Activity Identification Tool - WBS
      Deliverable-oriented hierarchical decompositions of project work
      Creates the required deliverables
      WBS organizes and defines the total scope of the project
      Subdivides the project work into smaller, more manageable pieces of work
      Has descending levels with increasingly detailed definition of the project work
      Lowest level WBS components are called work packages; they can be scheduled, cost-estimated, monitored and controlled
    • 23. WBS
      Characteristics
      Manageable (specific authority/responsibility assigned)
      Independent (with respect to other elements o( projects)
      Integrateable {so that the total package can be seen)
      Measurable (each deliverable)
      Purpose
      To simplify a complex project - it is a summation of elements
      Planning can be better performed
      Duration, cost and budget can be established
      Time, expenditure, and performance can be tracked
      Network and Control Planning can be initiated
      Responsibilities and Resources can be assigned
      Omission/duplication of tasks can be avoided
      Provide a common structure and coding system
    • 24. Creating WBS
      Templates
      Decomposition
      Subdivision of project deliverables into smaller chunks
      Goal : create work packages
      May not be possible for deliverables that are far into the future
      Different deliverables may have different levels
    • 25. Sample WBS
    • 26. Sample WBS
    • 27. Task Sequencing
      Identification of logical sequencing among schedule activities
      Allows for a smooth flow of project activities
      Helps to identify the most efficient way to reach project milestones
    • 28. Task Sequencing Tool - PDM
      Precedence Diagram Method
      Helps to develop project schedule
      Identifies dependencies of different activities to establish the fastest path to task completion
      Most useful for complex projects
      Visual display helps to communicate activity execution
      Identifies missing activities
      Also known as AON
    • 29. PDM
      Terms to remember
      Events
      Activity
      Dependency
      Four types of dependencies
      Finish to Start (most common)
      Start to Start
      Finish to Finish
      Start to Finish (rarely used)
      Practice
    • 30. Building a PDM
    • 31. Task Sequencing Tool - ADM
      Arrow Diagram Method
      Another way to create a schedule network diagram
      AOA – Activity on Arrow
      Difference
      Activities are identified on arrows
      Activities connect on nodes to show dependencies
      Only has Finish to Start dependency
      Can also have dummy nodes
      Less commonly used in project planning
      Sample ADM
    • 32. Practice
      Perform Task Sequencing through
      PDM
      ADM
      Sample Project Activities
    • 33. Duration Estimate Tools
      Parametric Estimate
      Determined by multiplying the quantity of work by the productivity rate
      Construction work – per square foot
      Design work – labor hour per design
      Drilling – time taken per cubic inch
      Three-point Estimate
      Helps to consider the amount of risk in the initial estimate
      Considers 3 types of estimates
      Most likely
      Optimistic
      Pessimistic
    • 34. Schedule Development
      Outlines the proposed timelines for the project activities
      Is an iterative process
      Is typically completed AFTER activity duration estimate
      Serves as the baseline against which project progress can be tracked
    • 35. Schedule Development Tool - CPM
      Dupont developed the concept in 1957 – to address the shutting of plants for maintenance
      Helps to identify the path of activities where any delay WILL cause a delay in the project timeline
      For activities outside the Critical Path, there is tolerance for
      Late start
      Late finish
      Early start
      Used to be carried out by hand – now there are software available
      MS Project
      Primavera
      Schedule activities on the Critical Path are called Critical Activities
    • 36. More on CPM
      Calculated by estimating the following 4 parameters for each activity
      ES - Earliest start time
      Earliest time at which the activity can start given that its precedent activities must be completed first
      EF - Earliest finish time
      Equal to the earliest start time for the activity plus the time required to complete the activity
      LS - Latest start time
      Equal to the latest finish time minus the time required to complete the activity
      LF - Latest finish time
      Latest time at which the activity can be completed without delaying the project
      Slack Time
      Time between its earliest and latest start time
      Amount of time that you can delay an activity without delaying the project schedule
      Critical Path
      A path in which all activities have ES = LS and EF = LF
    • 37. Why CPM
      CPM helps to identify
      Different activities that MUST be completed on time for the project to stay on schedule
      Which activities can be delayed and their resources can be reallocated
      Minimum duration of the project
      Early start and late start time for each activity in the schedule
    • 38. Schedule Compression Tools
      Schedule Compression
      Helps to shorten project schedule WITHOUT changing the project scope
      Compression techniques
      Crashing
      Cost and Time tradeoffs are analyzed to determine the greatest amount of project compression
      Often results in increased cost
      Fast Tracking
      Sequenced activities are performed in parallel
      E.g. – foundation work is started before detailed architecture drawings are complete
      Increases project risks
    • 39. Project Cost Planning
    • 40. Why Perform Cost Planning
      Helps to manage the cost of the resources needed to complete schedule activities
      Projects cash outflows at different stages of the project
      Helps to highlight the risk of major cost over-runs
      Establishes a baseline to compare with the actual project cost
      Helps the sponsors to decide whether to continue or shut the project
    • 41. Cost Planning Tools
      Bottom-up Estimating
      Starts from Work Packages – from bottom level activities
      Add up their costs and work upwards
      Aggregate the costs to reach a final figure
      Pros and Cons
      Upside – is more accurate, cost changes can be recorded easily
      Downside – takes more time, requires detailed knowledge
      Parametric Estimating (discussed earlier)
    • 42. Cost Planning Tools
      Top-down Estimating (Analogous Estimating)
      Takes cost inspiration from similar projects, tasks
      Starts from the top and work downwards
      Divide the cost figures among different sub-projects or tasks
      Pros and Cons
      Upside – quick and easy to use, good for early-stage planning
      Downside – often is very inaccurate, can mislead if used at a later stage
      Reserve Analysis
      Contingency factor – what-if scenario
      Downside – can over-state the cost estimate of schedule activity
      Remedy – aggregate reserves for a group of activity and assign it to a dummy task
    • 43. Inputs for Cost Planning
      Enterprise Environment Factors
      Organizational Process Assets
      Project Scope Statement
      Work Breakdown Structure
      WBS Dictionary
      Project Management Plan
      Schedule Management Plan
      Staffing Management Plan
      Risk Register
    • 44. Project Risk Planning
    • 45. What is Project Risk
      Probability of an uncertain event or condition with a positive or negative effect on any one of the following project objectives
      Scope
      Cost
      Time
      Quality
      Examples
      Probability of delay in acquiring a permit from the government for an aspect of the project
      Probability of unavailability of adequate resources assigned for a particular task
      Probability of increase in resource cost
    • 46. Understand Risk
      Types of risks
      Known risks – something we can plan for
      Unknown risks – we are caught off guard
      Risks – threats or opportunities?
      Taking risk against profitable gain
      Using Fast Tracking to shorten project timeline
      Risks that offer opportunities
      Lowering of taxes on project resources, brining cost down
      Attitude toward risk?
      Fear and avoid
      Accept and face
    • 47. Risk Planning Process
    • 48. Risk Identification
      Documenting which risks might affect the project
      Is an iterative process
      PM should decide the frequency of review
      Leads commonly to qualitative analysis
      Grouping of risks with respect
      How they relate to each other
      How they impact the project objectives
      Their probability
      Risk Register
      A collection of all types of risks and their characteristics
      This is the output of the process
    • 49. Risk Identification Tools
      Brainstorming
      Gather with different stakeholders in separate groups
      Collect the risks they identify
      Consolidate
      Delphi Technique
      Asks a group of experts anonymously a set of questions about potential risks
      Consolidate data
      Send it to the experts again and seek comment
      Repeat 3-5 times
      SWOT Analysis
      Strengths
      Weaknesses
      Opportunities
      Threats (these are your risks)
      Checklist Analysis
      Historical data
      Risk Register from another project
      Use the data gathered to prepare a checklist
    • 50. Sample Risk Register
    • 51. Risk Impact Scales
    • 52. Qualitative Risk Analysis
      Helps to prioritize project risks
      Sets you up for the next step
      Either quantitative risk analysis
      Or risk response planning
      Main ingredients
      Risk probability
      Risk impact
      Risk tolerance for Scope, Cost, Quality and Time
      Advantages
      Easy and simple to use
      Gives a ballpark figure of risk impact value
      Disadvantages
      Too simple for complex projects
      May be inaccurate
    • 53. Tool | Risk Matrix
      Helps you to
      Visualize the effect of different risks
      Gives you the ‘big’ picture
      Charts risks
      X-axis – Risk Impact
      Y-axis – Risk Probability
      Risk Matrix
    • 54. Tool | Probability-Impact Matrix
      Risk probability
      Likelihood that a certain probability will occur
      Risk impact
      Potential effect of a certain risk on any of the four project objectives: scope, time, quality and cost
      Assesses both positive as well as negative risk
      Positive risk – opportunities
      Negative risk – threats
      Risk Factor
      Result of multiplying risk probability with risk impact
      Gives the final impact of a certain risk
      Risk data quality
      Ask experts – avoid bias – look at historical data
    • 55. Sample | Probability-Impact Matrix
      Project Objective
      To establish a new territorial office
      Potential Risks
      Inflation higher than estimated
      Project team members leaving before project completion
      Changes in project scope
      Security situation of the area
    • 56. Qualitative Risk Analysis | Output
      Qualitative analysis results in
      Ranking of different risks
      Grouping of risks
      List of risks requiring response in the near-term / long-term
      List of risks for additional analysis
    • 57. Risk Response Planning
      Process of developing responses to
      Enhance opportunities
      Reduce threats
      Should address risks based on their Risk Factor or priority
      Helps to create some cushion by
      Allocating extra budget
      Allocating extra time
    • 58. Tools | Risk Response Strategies
      Responding to Threats
      Avoid
      Change the PM plan to avoid a risk
      Transfer
      Shifting the impact and ownership of risk to third party (insurance policy)
      Mitigate
      Work to reduce the probability or impact of a risk (test marketing, prototyping)
      Proactive Vs Reactive
      Responding to Opportunities
      Exploit
      Seek to face the risk head on (assigning better talent to a task)
      Share
      Sharing the ownership with a third party (JVs)
      Enhance
      Seek to increase the probability or impact of the positive risk
    • 59. Executing to Perfection
      Executing
    • 60. Communicating What Needs Execution
      Project Communication Management
    • 61. Communications Management
      Objective
      To ensure timely and appropriate generation, collection, distribution, storage, retrieval and ultimate disposition of project information
      Processes for communication management
      Information distribution
      Performance reporting
      Stakeholder communication management
    • 62. Information Distribution
      Broad Strategy
      Need-to-know basis
      Restricts access – Keeps security intact – Maintains strong lines of separation – Keeps the focus of the members intact
      Want-to-know basis
      Opens access – Risks information proliferation – Allows for involvement – May increase distraction
    • 63. Information Distribution | Tools
      Distribution Triggers
      Time-based reports / meetings
      Frequency
      Event-based reports / meetings
      Event significance identification
      Style
      Formal
      Standard templates
      Informal
      No specific formats
      Methods
      Isolated meetings
      Project team meetings
      E-sharing thru project management systems
      E-mails and file sharing systems
      Content
      High-level
      Less details
      Focuses on output / deliverable
      Low-level
      More details
      Focuses on processes
    • 64. Performance Reporting
      Purpose
      To continuously assess current project performance against project estimated baselines related to
      Scope
      Quality
      Time
      Cost
    • 65. Performance Reporting | Tool
      KPI – Key Performance Indicator
      Why
      “Numbers don’t lie”
      Helps to measure performance objectively
      Remember that KPIs should
      Connect with either one of the four project objectives (SCTQ)
      Measure live project performance
      Should be designed so they result in numbers or %
      Will measure the performance result against baseline estimates
    • 66. Stakeholder Communication Management
      Purpose
      To satisfy the needs of and resolve issues with project stakeholders
      Suggested Strategy
      “Need to know basis” – well-defined lines of communication separation
      Active engagement – answer before they question
    • 67. Communicating What Needs Execution
      Risk Management
    • 68. Risk Management
      Objective
      Executing the risk plans and reassessing them to meet project objectives
      Risk Monitoring and Control
      Assess the assumption of earlier identified risks
      Monitor the progress of risk response execution
      Identify and analyze new risks
    • 69. Risk Management | Tool
      Risk Audit
      Examines and documents the risk responses and compares it against the established baselines
      Subjective activity – helps to see the trend and reassess the risk responses
      Variance Analysis
      Identifies how much the actual progress has deviated from the baseline estimates
      Statistical method
      Provides an objective analysis
      Reserve Analysis
      Risks will occur – your reserves will get consumed, but how much?
      Analyze the use of reserves consumption
    • 70. Quality Management
    • 71. Quality Management
      Quality
      Degree to which a set of inherent characteristics meet requirements
      Purpose
      To ensure the baseline quality targets are met through
      Achieved through
      Quality Assurance
      To ensure that processes are being followed as planned and proposed
      Quality Control
      To ensure specific project deliverables meet the quality standard that was planned and proposed
    • 72. Quality Assurance
      Application of planned and systematic activities to ensure that processes are in line to meet the project objectives
      Negates “Don’t fix it if it isn’t broken” philosophy
      Setup
      A separate designated team
      Quality Circles
      Members from within the team are assigned and rotated to perform QA
      Benefits
      Checks deviations before they result in bad quality deliverable
      Paves way for Continuous Improvement (Kaizen?)
      Helps to develop stronger standards for processes
    • 73. QA | Tools
      Quality Audits
      Structured review activity to check whether project processes comply with organizational / project policies and procedures
      Shouldn’t be announced – best when done without prior notice
      Conducted by trained in-house personnel
      Process Analysis
      A scheduled activity to systematically review processes in view of the deliverables and project objectives
      Feedback from project members
    • 74. Quality Control
      Monitoring of specific project deliverables to check whether they comply with planned / proposed quality standards
      Setup
      An independent team performs quality checks
      Done through sampling
      Statistical analysis – to identify patterns and then identify root cause
      Benefits
      Keeps poor quality deliverables from reaching in the hands of the customer or sponsor
      Helps to identify poor inputs into activities
      Arrests trends that could lead to further deterioration in quality of the deliverables
    • 75. Change Management
    • 76. Change Management
      Purpose
      To assess, record and incorporate any changes to the project objectives mainly T-Q-S-C
      Is performed from inception to completion
      Is important as projects seldom get executed exactly as planned
      Is often a result of a risk being materialized
      Positive risk – positive change
      Negative risk – negative change
    • 77. Change Management
      Steps to perform control and manage changes
      Identify the need for a change in the project objectives
      Review request for changes
      Assessing the effects of proposed changes to SCTQ
      Inform and review the proposed changes with stakeholders
      If approved, document and update all SCTQ baselines
    • 78. The Destination
      Closing
    • 79. Closing Project
    • 80. Closing Project
      Structured process
      Ensure that deliverables are handed over to project sponsors or customers
      Document and archive project records for future projects
      Ensure project deliverables are accepted by sponsors / customers
      Perform comparative analysis of initial baseline estimates and final output
    • 81. Documentation
      Purpose
      To ensure that all important activities, policies, processes and deliverables are documented for review
      Benefit
      Facilitates project performance analysis
      Allows for comparative analysis between projected and actual
      Makes templates available for future projects
      Some policies and processes can be utilized by other departments in organizations
      Provides important data for operations
    • 82. Thanks