Project management


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Project management

  1. 1. Systems approach to Project Management ByInstitute of Public Enterprise Hyderabad
  2. 2. Characteristics of Project Has Objectives Has a Schedule Has Complexity Has a Size and Nature of Tasks Needs Resources Needs Organization Structure Has Information and Control Systems Has Progressive Elaboration Frequently influenced by the Environment Mostly some of the stakeholders have vested interests
  3. 3. Challenges being faced in Project Management• 1.• 2.• 3.• 4.• 5.• 6.• 7.• 8.• 9.• 10.
  4. 4. When do we declare a project Successful1. -2. -3. -4. -5. -6. -7. -8. -9. -10. -11. -12. -
  5. 5. Benefits of following Project Management Principles A clear focus on TASK/Project. Buy in by all the stakeholders. Tight achievable targets by way of Time and Cost. Optimum Resource utilization. Roles and responsibilities of all associated with the task/project, well defined. Good Communication practices used to accelerate the task/project and to keep all stakeholders happy. Well established world practices/processes enable formal initiation and proper closure of the task/project. Close monitoring to avoid deviation from set targets. A good risk management exploits every opportunity and minimizes the effect of adverse events to get best task/project results.
  6. 6. Projects-Examples• 1• 2• 3• 4• 5• 6• 7
  7. 7. Project DefinitionA Project is a temporary endeavor undertaken to create a unique product or service And is Progressively elaborate.( Discuss Difference between Project and Operation)
  8. 8. Project Management- Definitions• Project Management is the application of knowledge and skills of the Project team and using required tools and techniques to meet Project Objectives.• Process of Converting a Concept into a Reality-Efficiently within given Resources and Time.• Project management is a highly demanding and complex task. It requires organizational skills, the foresight to anticipate the unexpected, and the ability to monitor progress and change course as needed.• Project management is about managing people so they achieve valued end result.• If change is becoming routine and is being encountered on a regular basis, project management principles can certainly be employed to meet the challenges of change. (The better we know the project, the better we can manage it)
  9. 9. What are Project Phases• The stages in which a Product gets developed from concept are called phases like:- Idea, Conceptualization, Develop Prototype, Project Report, Design, Execution, Commissioning, Operation etc.• Each phase is associated with one or more deliverables which are Tangible, Verifiable work products.• Conclusion of a phase is marked by review of key deliverables and project performance to determine if project should continue to next phase.• The idea is the defects have to be identified and corrected at the end of each Phase, so that the cost of rectification is lower when detected and corrected as early as possible.
  10. 10. Progressive Elaboration• What is Progressive elaboration? – continuously improving and detailing the plan as more detailed & specific information and more accurate estimates become available• Why Progressive elaboration? – Potential for change – Iterative nature of the project management plan – Progressive elaboration is throughout the project lifecycle• Progressive elaboration allows… – The project management team to manage the project to a greater level of detail as the project evolves.
  11. 11. Product Lifecycle vsProject Management Lifecycle • Discuss and Evolve
  12. 12. Common Lifecycle Characteristics• Cost - month( period ) wise & Cumulative• Level of Uncertainty• Risk in achieving the Project Objectives• Impact if a Risk occurs• Stakeholders ability to influence the final outcome of the project• Cost of changes
  13. 13. Areas of Expertise needed by the Project Team Project Management Body of Knowledge PMBOK Guide Application AreaInter Personal Skills Knowledge, Standards and Regulations GM Knowledge Understanding and skills the project environment
  14. 14. Processes• Process Definition- a series of activities when performed in a predetermined sequence, brings about the desired results, repetitively.• Product Oriented Processes – Specify and create the project’s product( Application based processes- Fabrication, Welding, Erection, Commissioning, Techn ology based Etc) )• Project Management Processes – Interact with Product Oriented Processes, organize and overview them in a manner to achieve the set project objectives.
  15. 15. Interaction of- Product Oriented Process. and Project Management Processes Project Management Processes IDEA Product Oriented Processes PRODUCT
  16. 16. Project Management Processes and their communication channels Sponsor Authorization ofBusiness Case OR Project Charter Project SOW Initiating Planning Project OR Processes-2 Processes-20 Plans and Updates Contract Changes Monitoring Status Executing & Controlling Processes-8 Guidance Processes-10 Accepted Deliverables Lessens Learned Closing Processes-2 Deliverables+ Knowledge
  17. 17. Project Management Boundaries Project Boundaries Monitoring & Deliverables End Controlling Processes Users Planning ProcessesInitiator/ Project Initiating ClosingSponsor Input Process Process Executing Processes Process Records & LL Assets P A D C
  18. 18. Overlap of process groups Executing Processes Planning Processes Initiating Closing Processes Controlling Processes ProcessesProject/ Time Project/Phase start Phase end
  19. 19. PMO• Shared resources• Common Processes and Methodologies• Clearinghouse and management of policies, processes, templates etc• Centralized configuration management, Risk repository• Centralized management of tools and dashboard• Mentoring and coaching for Project Managers• Centralized monitoring of projects, programs and communication• Coordination of overall project quality standards
  20. 20. Enterprise Environmental Factors Organizational Culture and Structures and processes Governmental / Industry standards Infrastructure Existing human resources and personnel administration Company Work Authorization systems Commercial data bases Marketplace conditions Project management information system Political climate Organization’s established communication channels
  21. 21. Organizational Process Assets Processes and Procedures Corporate Knowledge Base• Organizational Standard Processes • Process measurement database• Standardized Guidelines, Work • Project files instructions • Historical information• Criteria for performance measurement, proposal evaluation • Issue / defect management• Templates database• Tailoring guidelines • Configuration management• Project Closure guidelines knowledge base• Procedures on financial • Financial database control, change control, issue and defect management• Risk categorization and control
  22. 22. Project Management Process Groups … Project •PSOW Initiating Process Sponsor •Business case Group •Contract •Project Charter •Stakeholder Register •Stakeholder management strategy Enterprise/ • OPA Planning Process Organization Group • PMP Monitoring• OPA• EEF and Project • PMP Control • Make or buy Customer •Requirement Documents Process Group • Approved CR Executing Process • QC Measurement • Proposal Group • Per Reports • Deliverables •CRs, WPI Sellers •Contract • Selected sellers • Final Product Closing Process Group •Accepted Deliverable •Procurement documents
  23. 23. Project Initiation• Project Initiation is the process of understanding the inputs given by the sponsor in the form of a Business Case, OR Project Statement of work, OR Contract received from a customer.• Collecting all the data relating to this input from the stakeholders involved in identifying that project to arrive at High level budget, schedule and arrive at Project Objectives through Stakeholder Management.• The Charter which is the output of the Initiation Process should contain all the inputs necessary for creating a good project management plan.
  24. 24. Project Charter• The Project Charter Documents business needs, current understanding of customer’s needs, and the new product, service, or result that is intended to satisfy, such as: – Project purpose or Justification – Measurable Objectives and related success criteria – High level requirements – High level project description – High level risks – Summary milestone schedule – Summary budget – Project approval requirements – Assigned Project manager-responsibility and authority level. – Name and authority of sponsor or other persons authorizing charter.
  25. 25. Project Objectives• The quantifiable criteria that must be met, for the project to be considered successful• Each objective should have a measurable attribute• Each attribute shall have a yardstick (units) – E.g. in Rs for cost, defects in % etc.• An absolute or relative value to be attached to each attribute.• Key Project Objectives are:- Scope, Quality, Time and Cost.
  26. 26. Project StakeholdersProject stakeholders are individuals and/or organizations who areactively involved in the project, and/or whose interests may be positivelyor negatively affected as a result of project execution/ successful projectcompletion and who can influence the project Positively/Negatively.Key stakeholders on every Other stakeholdersproject include the following Owners and investors Project manager Suppliers and Contractors. Customer/User family members. of team Performing organization, Govt./statutory agencies Project Team members Temporary and permanent Project Management Team lobbying organizations. Sponsor Media, general public and Influencers society at large . PMO ( if it exists )
  27. 27. Develop Stakeholder Management Strategy• Categorize the stakeholders• Identify as many stakeholders as possible• Discuss their interest in the project• Prioritize• Evolve Stakeholder Management strategy• Recommend to the management if the project can be successfully managed
  28. 28. Stakeholder Management Strategy High Keep satisfied Manage CloselyPower /Influence Monitor (minimum Keep informed effort) Low High Low Interest / Impact
  29. 29. Managing a project typically includes…• Identify Stakeholders• Gather through appropriate method Their- Needs, wants, concerns, and expectations related to Project’s Product and Project Execution and any related issue.• Convert these into REQUIREMENTS through Discussion.( Requirements define the Features, Functions, Characteristics of the Product and related issues)• Balancing the competing project constraints that includes but not limited to :  Scope , Quality, Schedule, Budget, Resources, and Risk
  30. 30. Requirements documentation and Traceability MatrixReq. Documentation describe how Req. Traceability Matrix links theindividual requirements meet requirements to their origin andthe business need for the project. traces throughout the project life• Business Need or Opportunity to be cycle. It also provides a structure seized for managing changes to the• Project Objectives product scope. Reqts are traced• Functional Requirements to;• Non- functional Requirements  Business• Quality Requirements needs, opportunities, goals, and objectives.• Acceptance Criteria Project scope/WBS• Impact to Organizational Sub systems Product design.• Support & Training requirements Product development• Requirements Assumptions Test strategy and scenarios• Requirements Constraints High-level requirements.
  31. 31. Plan Project Scope Includes processes required to ensure that the project includes- “All the work” and “ Only the work” required, to complete the project successfully.• Product scope: • Project scope: – The features and functions that – The work that needs to be characterize a product service accomplished to deliver a or result product, service or result with the specified features and functions. – Completion of product scope is – Completion of a project is measured against the product measured against the project requirements management plan, scope statement and WBS
  32. 32. Project Scope Statement – Key elements Product scope Product acceptance Project deliverables description criteria Description of the Project constraints Project Exclusions work and Assumptions
  33. 33. Assumptions and Constraints• Assumptions are factors that, for planning purpose, are considered to be true, real, or certain without proof or demonstration. Assumptions affect all aspects of project planning, and are part of the progressive elaboration of the project. Project teams need frequently identify, document, and validate the assumptions. Assumptions generally involve a degree of risk.• Constraints are defined as the state, quality, or sense of being, that will effect the performance of the project or a process. Mostly constraints are imposed by the Customers, Sponsor or Senior management OR by the nature of Project itself. Constraints can also be understood as the boundaries imposed upon the project within which it has to be planned.
  34. 34. Create WBS Scope definition involves subdividing the major project deliverables in to smaller, more manageable components (Work Packages ) which provide common framework from which:-• Planning can be performed.• Cost and Budgets can be established.• Time, cost and performance can be tracked.• Objectives can be linked to company resources in a logical manner.• Schedules and status reporting procedures can be established.• Network construction and control planning can be initiated.• The responsibility assignment for each element can be established. Organisation Structure will be defined to suit the specific Project.
  35. 35. WBS -DecompositionInvolves subdividing the deliverables and sub- deliverables into smaller and more manageable components until these are defined in sufficient detail in following steps:--• Identify the major deliverable incl. Project Management.The phases of the project can be used as first level decomposition.• Decide if adequate (cost and duration estimate can be developed)• Identify constituent components which will produce tangible and verifiable results.• Verify the correctness of the decomposition-if lower level items necessary or sufficient ; is it clearly and completely defined; if each item can be appropriately- Scheduled? Budgeted ? Responsibility assigned? ( The decomposition can be done on the basis of Phases, Skill set, Deliverables, Raw Materials etc )
  36. 36. WBS Decomposition Level Description 1 Project 2 Phases 3 Sub division 4 Work Package 5 Level of effortThese work packages have to be properly numbered for better project monitoringand control.
  37. 37. Work Package/ WBS Dictionary• Represents units of work at the level where the work is managed by the Project Team.• A good work breakdown structure ensures minimum scope creep and better clarity and understanding of work among the team members.• WBS Dictionary details all features of a Work Package:-  Code of account identifier,  Statement of work,  Responsible organization,  Schedule milestones,  Contract information,  Quality requirements,  Technical references. ( Depending on the clarity on the project scope, the immediate phases can be drilled down to lower WBS and the future phases can be left at high level till the clarity is achieved.)
  38. 38. Work Breakdown Structure Project summary 990 H SAI-700Level 2 Proj. Mngment Level 2 Design Development Implement 80 H 700.01 310 H 700.02 350 H 700.03 250 H 700.04 Prototype. Components Drawings 10 H 700.02.01 50 H 700.02.02 250 H 700.02.03 Civil/Structural Mechanical Electrical/Control 180 H 700.02.03.01 30 H 700.02.03.02 40 H 700.02.03..03
  39. 39. Waste Water Treatment PlantProj. Mngt
  40. 40. Schedule DevelopmentDefine ActivitiesSequence ActivitiesActivity Resource EstimationActivity Duration EstimationDevelop Schedule
  41. 41. Activity DefinitionIdentifying and Documenting specific activities that must beperformed to produce deliverables and sub-deliverablesidentified in WBS. USING as INPUTS:-Work Breakdown Structure, Scope statement, HistoricalInformation, Constraints, Assumptions and Expertjudgments where-ever necessary.Activity Attributes— Include activity identifier, activity codes, activitydescription, predecessor activity, successor activity, logical relationship, leadsand lags, resource requirements, imposed dates, constraints and assumptions.
  42. 42. Activity Sequencing•Identifying and documenting interactive logical relationship including dependencies like:-. •Mandatory dependencies (Hard logics) •Discretionary dependencies (Soft logics) •External dependencies•Sequenced accurately to support development of realistic andachievable schedule.•Modify/update the Activity List where-ever necessary duringsequencing process.There are 2 methods for sequensing :- •Precedence diagramming method PDM •Arrow diagramming method ADM
  43. 43. Dependencies- Mandatory A B C DThe successor activity is totally dependant on the completion of predecessor activity therefore activity B is dependant on completion of activity AExamples• Foundation work can be started only after the excavation is completed and the pit is inspected and approved.
  44. 44. Dependencies- Discretionary C A B D EExamples• The living room can be painted before painting the dining room, although it could be done other way round, too – with out constrain• It is logically possible to paint four walls in a room simultaneously but there is only one painter – with constrain
  45. 45. Dependencies - External Pipe Welding Hydro Test CommissionA B DObtain Approval Inspection / Certification CWhen there is an external inspection mandatory before starting the nextactivity.
  46. 46. Arrow Diagramming Method ( Activity-On-Arrow AOA, Critical Path Method CPM) Dummy E C F F A HStart B Finish Nodes D G Activity Uses only Finish to Start dependencies
  47. 47. Network – Precedence Diagramming Method A C E Start Finish B D F dependencies activitiesTypes of Dependencies.• Finish to Start• Finish to Finish• Start to Start• Start to Finish
  48. 48. DependenciesFinish-to-Start (FS)Task (B) cannot be started until task (A) finishes.Task A “Reaction” and Task B “Analysis”• “ Concreting” cant be started until “Shuttering” finishes. A B
  49. 49. DependenciesFinish-to-Finish (FF)Task (B) cannot finish until task (A) finishes.Task A “Wiring” and Task B “Inspection”• “Inspection” cant finish until “Wiring” finishes. A B
  50. 50. DependenciesStart-to-start (SS)Task (B) cannot start until task (A) starts.• Task A "Pour foundation" and Task B "Level concrete," "Level concrete" cant begin until "Pour foundation" begins. A B
  51. 51. DependenciesStart-to-Finish (SF)Task (B) cannot finish until task (A) Starts. A B
  52. 52. Critical path 6 7 3 8 5 4 3 4 1 2 5 6 7 8 4 4 4 9Critical path – Longest path, float less than or equal tospecified value – mostly Zero.Path 1-2-3-6-7-8 = 5+7+6+3+4 = 25 unitsPath 1-2-4-5-6-7-8 = 5+4+4+4+3+4 = 24 unitsPath 1-2-3-5-6-7-8 = 5+7+8+4+3+4 = 31 units.Path 1-2-4-7-8 = 5+4+9+4 = 22 units
  53. 53. Diagrammatic representation of PERT Earliest StartActivity identification Earliest Finish A (8,10) A B 2 (15,17) Activity Time Latest Finish Latest Start
  54. 54. Calculate Slack/Float time C,6 B,7 D,3 I, 8A,5 E,4 F,4 G,3 H,4
  55. 55. Step-1- Calculate Earliest Start time TE TE= 12 TE= 18 C,6 B,7 D,3 I, 8 A,5 E,4 F,4TE= 0 TE= 5 TE= 24 G,3 H,4 TE= 28 TE= 21 TE= 9 TE= 20 TE= 12
  56. 56. Step-2-Calculate Latest Start time TL TL= 12 TL= 21 TL= 15 C,6 B,7 D,3 I, 8 A,5 E,4TL= 0 TL= 5 F,4 TL= 24 TL= 28 TL= 13 G,3 H,4 TL= 17 TL= 20
  57. 57. Slack or Float timeEarliest Start- (TE )--- The earliest possible time the said activity canbegin, which means that all the predecessor jobs on which thisactivity is dependant, have been completed.( When the Tortoise reaches the node)( Highest of the times at a node when analyzing in the Forward pass )Latest Start – ( T L )-- How late a particular activity can be startedwithout effecting the overall project schedule.( Till when the Heir can wait )( Lowest of the times at a node when analyzing in the Backward pass )Slack or Float time---- Latest Start TL – Earliest Start TE
  58. 58. Critical path – Longest path, float less than or equal to specified value – mostly Zero. TL= 12 TL= 21 TE= 12 TE= 18 C,6 B,7 D,3 I, 8 A,5 E,4TL= 0 TL= 5 F,4 TL= 24 TL= 28TE= 0 TE= 5 TE= 24 G,3 H,4 TE= 28 TL= 17 TL= 20 TE= 9 TE= 20 Float / Slack time = Longest time – Earliest time
  59. 59. Critical path – Longest path, float less than or equal to specified value – mostly Zero. TL= 12 TL= 21 TE= 12 TE= 18 C,6 B,7 D,3 I, 8 A,5 E,4TL= 0 TL= 5 F,4 TL= 24 TL= 28TE= 0 TE= 5 TE= 24 G,3 H,4 TE= 28 TL= 17 TL= 20 TE= 9 TE= 20
  60. 60. Activity Resource Estimation• What resources ( Persons, equipments, tools, tackles or material ) and what quantities of each resource will be used, and when each resource will be available to perform project activities.• Expert judgment, Alternatives Analysis, Published data, Bottom-up estimate are some of the methods used to estimate the resources requirement.• These resources can then be structured into categories and types for easy management and control.• A resource calendar is then prepared showing the quantity of each resource available during each available period.
  61. 61. Activity Duration Estimation• The process of estimating schedule activity duration usinginformation on scope of work, resource types, resource quantitiesand resource calendars.•The estimates are generated by the person or group in the projectteam who is most familiar with the nature of work.•The estimate is progressively elaborated to get precise data ofbetter quality.•All data and assumptions that support duration estimating aredocumented ( Support documents ).•The effect of identified Risks on the schedule development arealso considered.•Methods- Analogous, Parametric, 3-Point, Bottom-Up.
  62. 62. Develop Schedule• Incorporate the Duration estimates on The Network Developed.• Superimpose calendars on the Network.• Impose any constraints.• Introduce start date to get the project end date.
  63. 63. Network re-planning1. Resource Leveling2. Resource allocation3. Elimination of some parts of project4. Addition of more resources5. Substitute with less time consuming components or activities.6. Parallelization of activity7. Shortening longest activities8. Shortening activities that are least costly to speed up.9. Shortening activities for which you have more resources.10. Increasing the working hours.
  64. 64. Resource Histogram
  65. 65. Latest Techniques in Scheduling• Critical Chain Methods• Theory of Constraints
  66. 66. Project Cost Estimation• Estimate Costs is the process of estimating the monetary resources needed to complete project activities. Cost estimates are a prediction that is based on the information known at a given point in time:- Analogous, Parametric, 3-Point Estimate, Bottom-Up.• Cost estimating is iterative from phase to phase. ROM during initiation phase could be ±50%. Later on the estimates could narrow to a range of ±10%at the end of Planning process.• Scope Statement as part of the Scope BL is also an input to the Estimate Costs process wherein one basic assumption that needs to be made is whether the estimates will be limited to direct project costs only or whether the estimates will also include indirect costs.• Indirect costs are those costs that cannot be directly traced to a specific project and therefore will be accumulated and allocated equitably over multiple projects by some approved and documented accounting procedure.
  67. 67. BudgetingAggregating the individual cost of all project activities over the project lifecycle gives the “S” Curve. The budgets are derived from this throughnegotiations with the Sponsor/Finance Department . Funding Final Cost Funding 2nd Funding Initial Time
  68. 68. Why Project Fundingcustomer VC BANKS Project Parent Organization
  69. 69. Project Opportunity/Risk Management Risk is any potential Threat or occurrence which may prevent the project to achieve its desired objective by affecting--Schedules, cost, quality or benefits. Risk is a measure of the extent to which a given outcome might deviate from what is expected or desired. Risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on a project objective.---PMBOK. The positive variation can be termed as OPPORTUNITY and the negative as RISK
  70. 70. What is Risk? Cause- Requirement, CausesAssumption, Constraint, Condition If occurs results Risk- Uncertain Event OR Condition incl. Project’s/Organization’s environment Impact- Cost, Schedule OR Performance.
  71. 71. Risk Management Risk Management is a systematic process of identifying, analyzing, and responding to project risks- maximizing the probability and consequence of positive events( Opportunity) and minimizing the probability and consequence of adverse events( Risk) to Project Objectives. If you don’t actively attach the risks, they will actively attack you.---Tom Gilb.
  72. 72. Risk Identification Determining which risks might affect the projectand documenting their characteristics by allconcerned including subject matter experts.The risk identification process involves reviewing---Project Charter, WBS, Productdescription, Schedule and cost estimates, Resourceplan, Procurement plan, Assumptions andconstraintsBoth Project Risks and Opportunities have to beseparately identified and analyzed.
  73. 73. Technical, Quality and Performance risks---Examples• Reliance on outdated, unproven or Complex Technology.• Unrealistic Performance Goals/ Gold plated.• Changes to the Technology used.• Changes in the Industry Standards of Technology.• Is the Technology new to the organisation.
  74. 74. Project Management Risks---Examples• Poor allocation of Time and Resources.• Technical team under-qualified for the job.• Third party supplied resources.• Inadequate quality of Project Plan-like Bad Product specification, unclear/undefined milestones, communication systems, etc.• Crash Projects.• Poor use of Project Management discipline.
  75. 75. Organizational risks---Examples• Inconsistent objectives of cost, time and scope.• Lack of prioritization of Project.• Inadequate or interruptions in funding.• Unspecified payment/budget.• Resources conflict with other projects.• Improper working environment.• Distributed Project Management.• Over-ambitious Management.• User is unable to and has no authority to clarify doubts.
  76. 76. External risks---Examples• Shifting Legal and Regulatory Environment.• Labor issues.• Changing owner priority.• Country Risk.• Force Majeure Risks--requires disaster recovery actions.
  77. 77. ****Add--Fish Bone Diagram .
  78. 78. Qualitative Risk Analysis• Prioritization of Risks for subsequent further analysis and action.• Risk Probability is the likelihood that a risk will occur.• Risk Impact is the effect on project objectives , if the risk event occurs.• The product of the Impact and the Probability gives a Value for each risk which can be used for prioritizing the risks.
  79. 79. Impacts Rating guidelines for a risk – Qualitative analysis
  80. 80. Qualitative Risk Analysis Probability - Impact MatrixImpact ( relative scale ) on an objective ( e.g. cost, time. Scope or quality.)
  81. 81. Risk Categorization – Example Risk Categories PM HumanSchedule Cost Quality Procurement ResourcesExpectations Unrealistic Availability Stringent Performance Mismatch Target Standards Support
  82. 82. Strategies for Negative Risks (Threats)• Avoid – Eliminate a specific threat, usually by eliminating the cause. – Examples: reduce the scope; or extend the schedule in a way such that the risk is no longer a risk• Transfer – Shifts the impact of threat along with ownership of the response to 3rd party. – Does not eliminate it. – Involves payment of premium• Mitigate – Reduce the expected monetary value of a risk event by reducing the probability of occurrence or reducing the risk event value (impact of the risk) – Taking early actions to reduce probability an/or impact – Example: designing redundancy into subsystem may reduce the impact from a failure of the original component
  83. 83. Strategies for Opportunities• Exploit – An opportunity can be realized – Making an opportunity definitely happen• Share – Involves allocating ownership to a third party who can best able to capture the opportunity for the benefit of the project.• Enhance – Modifies “size” of the opportunity by increasing probability and/or positive impacts by identifying and maximizing key drivers of these +ve risks. – Strengthening the cause of opportunity, proactively targeting and reinforcing trigger conditions might increase probability.
  84. 84. Reserve………. Is a provision in the project plan to mitigate cost and/or schedule risk. Often used with modifiers Contingency Reserve A separately planned quantity used to allow for future situations which may be planned only in part(Known unknowns). Contingency reserves are normally included in project’s cost and schedule baselines Management Reserve A separately planned quantity used to allow for future situations which are impossible to predict( unknown unknowns). Use of management reserve requires a change to the project’s cost/schedule baseline
  85. 85. Project Quality Management• The processes which ensure that the project will satisfy the needs for which the project was undertaken. This includes all activities of the overall management function that determine the quality policy, objectives and responsibilities and implements them. This consists of:-• Quality Planning processes• Perform Quality Assurance processes• Perform Quality Control processes ( Discuss Quality Policy, Quality Metrics, Cost Of Quality)
  86. 86. Human Resource Planning Human resource Planning involves identifying, documenting project roles and responsibilities, and reporting relationships as well as creating the staffing management plan.. which contain  Roles, responsibilities, authority, competency of the human resources.  Project organization chart.  Staff acquisition time table.  Training needs etc.
  87. 87. Responsibility Assignment matrix
  88. 88. Project Communication PlanThe information needs and the methods of distribution varywidely from project to project.This determines the information and communication needs ofthe stake holders– Who needs– What information– When will they need it– How will it be given to them– By whom (A Communication Matrix will help)
  89. 89. Communication Channels Upward Communication ManagementLateral Communication Lateral communication Peers, Friends, Social groups, PMOther functional groups Formal and informal org And customers Downward Communication Subordinates, Project Office Personnel
  90. 90. Performance reportingCollecting the information from project plan, workresults and other project records and disseminatingthe project performance information to providestakeholders with information about how resourcesare being used to achieve project objectives. • Status reporting • Progress reporting • ForecastingPerformance reporting should primarily cover information on scope, schedule, cost, quality, risk and procurement.
  91. 91. Earned Value Analysis Cost Variance Schedule Variance
  92. 92. Spec OrderVisual Communication Aids Inspect Delivery Erect Trail M101 P203 C104 H301 M201 P305 C204 H401
  93. 93. Continuous Process Improvement Process Improvement Plan – Details the steps for analyzing processes that will facilitate the identification of waste and non-value added activity, thus increasing customer value, such as:  Process boundaries: Describes the purpose, start and end of processes, their inputs and outputs, data required and the owner and stakeholders of processes.  Process configuration: A flowchart of processes to facilitate analysis with interfaces identified.  Process metrics: Maintain control over status of processes.  Targets for improved performance: Guides the process improvement activities.
  94. 94. Lessons Leaned ProcessWENT WRONG Information Gathering WENT RIGHT From Stakeholders/Team Brainstorming Lessons Learned Knowledge Base
  95. 95. PM’s Professional Responsibility1. Ensure individual Integrity and • by adhering to legal requirements and ethical standards in order to protect Professionalism the community and all stakeholders. • by sharing lessons learned, best practices, research etc within2. Contribute to the PM Knowledge appropriate communities in order to base improve the quality of project management services, build the capabilities of the colleagues and advance the profession. • by increasing and applying professional3. Enhance Individual Competence knowledge to improve services.
  96. 96. PM’s Professional Responsibility4. Balance Stakeholder Interests  by recommending approaches that strive for fair resolution in order to satisfy competing5. Interact with team and needs and objectives. stakeholders in a Professional and  by respecting personal, ethic co-operative manner and cultural differences in order to ensure a collaborative project management environment. Total number of Questions : 18
  97. 97. The direction finder for PM Looking Backward Looking upwards Monitoring progress with appropriate Managing your sponsor in order control systems, to ensure that the to achieve organization project meets its targets and the team commitments learn from its mistakes Looking outwards Looking inwards Managing the client, end userManaging yourself, by reviewing and external stakeyour performance to ensure that The role of holders(including suppliers and your team leadership is a PM subcontractors) to ensure that the positive contribution to the project meets their expectations. project. Looking downwards Looking Forwards Managing the team in order to Planning in order to ensure that maximize their performance the team sets realistic both as individuals and targets, and obtains appropriate collectively.Managing the visible, resources to achieve those across disciplines, departments, targets. countries and cultures