Pm fundamentals


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Pm fundamentals

  1. 1. PROJECT MANAGEMENTFundamental Elements
  2. 2. Fundamental QuestionsWHATWHYWHENHOWWHEREWHOI keep six wise serving men.(They taught me all I knew).There names are What & Why & When,and How & Where & Who(Rudyard Kipling 1902)
  3. 3. Project Management, Businessand CustomersBusiness today demands faster projects, decreased deliverytimes.Customers want to know what is happening and are moredemanding as they too are under pressure to deliver faster.This leads to an environment of increased competition.In competitive environments the rewards will go to thoseorganizations which are more flexible, more in tune with theircustomers wants and focused on their main product or service,.In order to do this all aspects of business (product delivery,profit, growth & market share) need to be optimised.
  4. 4. Why do we need ProjectManagement?Project management enables organisations toIdentifying problems with the project and enableissues to be escalated which allowsTasks to be done more efficiently by identifyingissues earlier which results inGetting things done more cost-effectively andDelivering projects on time, in budget and to theright quality.
  5. 5. Which means thatProblems may be managed in a timely manner soproducts are delivered to deadlines.Organisations have an opportunity to mitigatepossible cost overrunsCustomers expectations and requirements are metOrganisations & individuals gain a reputation forsuccessful delivery which often equates toPROFITS & BONUSESGreater Market Share, less competition, increasedcustomer confidence etc
  6. 6. What is a Project?An activity of limited durationThe purpose of which is to create some sort ofoutcome / deliverableThat has generally not been done before in termsof client / team/ contract / environment, andThe achievement of which signals completion ofthe activity.
  7. 7. Typical Project
  8. 8. What is Project ManagementPM is a technique for ensuring that we do the followingsystematically…- scheduling tasks (time management)- defining the work and risks (scope & risk management)- budget specification (cost management)- assigning responsibility for tasks (quality and organisation)Plus recognising, analysing and implementing changes in acontrolled manner
  9. 9. Project vs Technical ManagementManaging the project is similar for all types ofproject,ButManaging the technical aspects can be different foreach project
  10. 10. Systematic Approach
  11. 11. PM Standards & PracticesInternational Bodies (Association of Project Managers(UK); Project Management Institute (USA)National / Statutory BodiesSocietiesCompanies
  12. 12. Project PhasesInitiatingPlanningExecutionMonitoring & ControlClose Out
  14. 14. Project Components – TripleConstraintTo meet the scope of the project we work within:Time – schedule, delivery datesC0st – cost of material, resource, servicesQuality – standard to be achievedYou can have it cheap, fast or good – choose any two
  15. 15. Change - Trade Off
  16. 16. Why Project Management
  17. 17. Fundamental PM ElementsRequirementsScope – Work / Product Breakdown StructureOrganisation / Individual Responsible for each elementPrice / Cost per elementSchedule – Durations & DependenciesChange ControlReporting / CommunicatingDocumentation
  18. 18. Requirements (FACTS)FEASIBLE – able to be satisfiedAMBIGUITY FREE- not vagueCOMPLETE – all information availableTESTABLE – able to be verifiedSIMPLE – short, conciseIf requirements are not defined the project plan is compromised,work can be abortive, work may need to be repeated, price/costincreases, resources are tied up, delivery is late, expectations notmet.
  19. 19. Scopethe work that must be done in order to deliver a product withthe specified features and functionsA work breakdown structure is a grouping of project deliveryelements that organizes and defines the total scope of theproject: work not in the WBS is outside the scope of theproject.It essential that the scope is defined rigorously or the project willhave gaps from the outset. Scope is categorised into componentparts which can be assessed for their risk, logical sequence, andwho is responsible.
  20. 20. WBS – Marine Fire SystemsRequirements 3rd Party Materials Mechanical System Transport Clash Resolution Component TestsSpecifications Documents COTS Electrical System Insurance Site Attendence FATInterfacing Needs Approval Specialists Control System Storage SATConfiguration System Integration Spares Integrated T& CSystem Level Assembly AcceptanceDetailed Design Packaging ManualsDesign Review ManualsDesign CompleteDesign VerificationPLUS - Project Reports- Invoicing- Mandatory Meetings / Reviews- Other requirements- Defects LiabilityFabrication DeliveryTesting &CommissioniongMarine Fire SystemsInstallation SupportDesign Approval Procurement
  21. 21. WBSProvides the basis for planning, scheduling, costestimating, configuring, monitoring, reporting,directing and controlling the project.Identify risks associated with each element of theWBS so ‘uncertainties’ made visible.Aids communication with vendors/team members /managementEssential to breaking down the project into manageablecomponents and assigning risk, owner, duration, cost.Allows change and impact of change to be analysed.
  22. 22. Organisational AspectsOrganisational Breakdown Structure for delivery/service–indicating responsible person / organisation (& point ofcontact)SuppliersInternal Resource / DepartmentExternal Resources / SuppliersClient – yes the Client - as they need to make decisions/pay andtake time for meetings etc.If a delay/overrun/problem is occurring the responsible party mustbe identifiable and made accountable to provide a workaround toresolve the problem…this includes the Client
  23. 23. CostEstimates for each element – Budgeted costActual Costs incurred –Payment ReceivedValue of Work DoneProportional costs aggregated for overall progressForecastingTracking of costs is essential in the performance of a projectcommercially. Deviation from forecast must be flagged/escalatedso mitigation measures may be instigated in a timely manner.
  24. 24. PM Technique – Earned Value
  25. 25. ScheduleActivities required for project completionDurations of each taskDurations for Approvals / testsLead timeRegular Milestones based on tangible and objectiveevents to demonstrate progress.Essential to ensuring that all work is programmed andsequence is logical. Allows for dependencies to beshown and impacts of change/delays to be analysed.
  26. 26. Basic Project Plan
  27. 27. ChangeClient RequirementsCreeping ScopeCreeping eleganceLack of planningRisks realisedChange is inevitable be it from internal or externalagencies. Change means that the original plan maynot be valid and re-planning is required affectingcost/time/quality.
  28. 28. Scope CreepLack of clarity or detail in the original description ofscope, objectives, or workWillingness to modify a project without formalreview or approvalAllowing participants who do not do the workassociated with any change to decideFeeling that you should never say “NO” to a ClientPersonal pride that makes you believe you canaccommodate anything
  29. 29. Reporting / CommunicatingProgress MeetingsRegular Project Reporting (Weekly)Meaningful Reports addressing:Schedule / TimeCostsResourcesChanges / Risks / IssuesProblems and Actions being taken/neededOverall Status
  30. 30. 28% of projects fail due to poorcommunication– A recent research in 2012 conducted by PMI®
  31. 31. Reporting / CommunicatingUse predetermined metrics to measure work doneUse baselines to measure progressStatus reports identifying issues and actions toresolve issuesEscalate issues when they occur rather than ‘ponder’(“Contact-wait out” or interim SITREPs)‘No news’ does not mean ‘good news’ on a projectMeetings to ensure messages are communicated andunderstood…“I sent an email” has never solved any project problem
  32. 32. HidingYES YESNO NOYESNONOYESA risk manifests itselfProblem AvoidedConceal it beforeanybody finds outBury itGet in firstwith yourstorySit tight and hope the riskgoes away.Will it show? Can youhide it?Can you blame somebodyelse, circumstances,client?Could admission damageyour career?
  33. 33. LearningNO YESYESNOA risk manifests itselfTake ownership &assess possibleconsequencesTake correctiveaction & informthose affectedTell somebody inauthorityimmediatelyCooperate fully tocorrect risk andreview proceduresRisk ManagedInvestigate whymistake occurredTry to learn frommistakesShare discovery &improve processCould admissiondamage yourcareer/company?Is it a flaw inthe process /system?
  34. 34. Project DocumentationProject Plan stating the scope (WBS), how work willbe undertaken and by whom, programme andmilestones, quality requirements, risks identified.Baseline ProgrammeBaseline BudgetBaseline ResourcesProgress Reports measuring progress againstbaselinesChange AuthorisationsContract Correspondence
  35. 35. SummaryProject management is a management technique forGetting things done efficiently /fasterGetting things done right, more cost-effectively.Identifying problems with the project and escalatingissuesProject Management allows for the systematic planning,organising and controlling of the Project Componentsof TIME, COST, QUALITY & SCOPE andcommunicating the status of a project to theparticipants.
  36. 36. SummaryScope is established from the Requirements and developed intoa WBSWork is allocated to resources and every element of work hasan owner which carries a cost/budgetWork is planned to be carried out in a logical sequence and aschedule is developedChanges are inevitable and their impact on time, cost andresources can be analysed against the baseline plan.Reporting against the original plan is essential to ensuring thatthe right actions are taken in a timely manner.Routine and escalation reporting gives visibility on a projectDocumentation of the plan and changes ensures that there isvisibility and accountability in the management of the project.
  37. 37. What, why, when, how and whereWHO?Just because there is no ‘project’ in your title does notmean you are not part of a project.Everybody contributes and plays a part
  38. 38. AfterwordsGood Project Management cannot guarantee projectsuccess, but…Bad or Absent Project Management will usually resultin project failure.People make (or break) projects.
  39. 39. Questions