PMP SLIDE BY: مهندس استشارى حسن فرج ENG. HASSAN FARAG EL-SAYED PMP INSTRUCTOR AUS

Projects versus Operations
Projects Operations

HASSAN FARAG EL-SAYED
 Performed by people  Performed by people
 Constrained by limited  Constrained by limited
resources resources
 Planned, executed and  Planned, executed and
controlled controlled
 Temporary  Ongoing
 Unique  Repetitive

Triple Contraint
Time

Quality
Cost Scope


Triple Contraint
 Increased Scope = increased time + increased cost

 Tight Time = increased costs + reduced scope

 Tight Budget = increased time + reduced scope.


What is a project?
 Temporary
 Unique
 Progressive elaboration


What is a project?
 Temporary with a beginning and end
 Creates a unique product, service or result
 Progressive elaboration
 Done for a purpose
 Has interrelated activities


Temporary
 Definite beginning and end
 End is reached when the project objectives
have been achieved
 Market Demands
 Ad hoc team


What is project
management?
Application of :
 Knowledge
 Skills
 Tools and techniques
 To project activities to meet or exceed
stakeholders’ expectations while using
resources efficiently and effectively


What is a stakeholder?
 Project manager
 Customer
 Performing organization
 Sponsor
 Team
 Internal/external
 End user
 Society, citizens

The project management team must:

 Identify stakeholders
 Determine their needs and expectations
 Manage and influence those expectations


Project Integration Management Processes

 Develop the project charter: Work with stakeholders to
create the document that formally authorizes a project—
the charter.
 Develop the preliminary project scope statement:
Work with stakeholders, especially users of the project’s
products, services, or results, to develop the high-level
scope requirements and create a preliminary project scope
statement.
 Develop the project management plan: Coordinate all
planning efforts to create a consistent, coherent
document—the project management plan.


Nine Project Management Knowledge Areas

Project Project Project Time
Integration Scope Management
Management Management

Project Cost Project Project Human
Management Quality Resource
Management Management
Project Project Risk Project
Communications Management Procurement
Management HASSAN FARAG EL-SAYED
Management

Project Integration Management Processes

 Direct and manage project execution: Carry out the
project management plan by performing the activities
included in it.
 Monitor and control the project work: Oversee project
work to meet the performance objectives of the project.
 Perform integrated change control: Coordinate
changes that affect the project’s deliverables and
organizational process assets.
 Close the project: Finalize all project activities to
formally close the project.


Project
Integration

Scope Statements
 A scope statement is a document used to develop and
confirm a common understanding of the project scope.


Contents of Scope Statement

 Project objectives  Initial list of defined risks
 Product or service  Summary of schedule
requirements and milestones
characteristics  Rough order of magnitude
 Project boundaries cost estimate
 Deliverables  Configuration management
 Product acceptance criteria requirements
 Project assumptions and  Description of approval
constraints requirements
 Organizational structure for
the project


Project Management Plans
 A project management plan is a document used to
coordinate all project planning documents and help
guide a project’s execution and control.


Project Plans
 Just as projects are unique, so are project plans.
 Plans should be:
 Dynamic
 Flexible
 Updated as changes occur
 Plans should first and foremost guide project execution
by helping the project manager lead the project team
and assess project status.


Common Elements of a
Project Management Plan
 Introduction or overview of the project.

 Description of how the project is organized.

 Management and technical processes used on the
project.

 Work to be done, schedule, and budget information.


Stakeholder Analysis
 A stakeholder analysis documents important (often
sensitive) information about stakeholders such as:
 Stakeholders’ names and organizations.
 Their roles on the project.
 Unique facts about each stakeholder.
 Their level of influence on and interest in the project.
 Suggestions for managing relationships with each
stakeholder.


Sample Stakeholder Analysis


Project Execution
 Project execution involves managing and performing
the work described in the project management plan.

 The majority of time and money is usually spent on
execution.

 The application area of the project directly affects
project execution because the products of the project
are produced during project execution.


Coordinating Planning and
Execution
 Those who will do the work should help to plan the
work.

 Project managers must solicit input from the team to
develop realistic plans.


Important Skills for Project
Execution
 General management skills such as leadership,
communication, and political skills.

 Product, business, and application area skills and
knowledge.

 Use of specialized tools and techniques.


Monitoring and Controlling
Project Work
 Changes are on most projects, so it’s important to
develop and follow a process to monitor and control
changes.
 Monitoring project work includes collecting,
measuring, and disseminating performance
information.
 Two important outputs of monitoring and controlling
project work include recommended corrective and
preventive actions.


Integrated Change Control
 Three main objectives are:

 Influence the factors that create changes to ensure that
changes are beneficial.

 Determine that a change has occurred.

 Manage actual changes as they occur.

 A baseline is the approved project management plan
plus approved changes.


Change Control System
 A formal, documented process that describes when and
how official project documents and work may be
changed.

 Describes who is authorized to make changes and how
to make them.


Project Agreement vs Problem Statement


Project Management:
Project Organization
Control Flow
Information Flow Chief Executive

First Level Manager
(“Front-Line Manager”)

Project Members
A B
A wants to talk to B: Complicated Information Flow
A wants to make sure B does a certain change: Complicated
Control flow
Basis of organization:
Complicated information and control flow
across hierarchical boundaries

Example of Organization:
Chief Programmer Team

Chief Programmer

Assistant
Chief Programmer

Senior
Librarian Administration Tester
Programmer

Junior
Programmer


Project-Based Project Organization
Project
Leader

Coaches
Subsystem Subsystem Subsystem
Team Team Team
A B Team
Members

A wants to talk to B: Communication Flow
A wants to make sure B does a certain change:
Decision Flow
Basis of organization:
Nonlinear information flow across dynamically formed units


Assigning Responsibilities To People
Team
“To Do” List for the Project
A
• Role 1
Person A
•
Item Item 1
•
Item
1 Item 2 Role 1
•
Item
2
Item 9 Role 2
•
Item
3 Role 2
•
Item
4
Item 4
•
Item
5 Person B
• Item 5
Item
6
•
Item
7 Item 7
Item
8 Role 3
Role 3
9 Item 3
Item 6
Item 8


Activity Graph for Activity “Building a House”


PERT Chart Example for "Building a House"
12/3/94 12/21/94 1/11/95
Install Install Install
Interior Interior Wallboard
Plumbing Electrical
Building a House:
0 0 0 1/22/95
12 15 9 Paint
MS Project PERTcy
Interior
Chart with Duration of
Activities (Pfleeger 2.3) 0 2/8/95
11
1/22/95 Install
Interior
Install Doors
Flooring
0
10/15/94 11/5/94 7
8/27/94 8/27/94 9/17/94 10/1/94 0 2/16/95
Lay Build 18
STAR Survey Excava Buy 1/19/95 FINIS
Founda Outside
T ing tion Material H
tion Wall Install
0 Roofing 1/19/95 0
0 12 0 0 0
0 10 10 Install 0
3 15 20 12
9 Exterior
Doors
8/27/94
15
Request 1/12/95
6
Permits Paint
0 Exterior
15 12
5
12/3/94 12/17/94 12/31/94

Install Install Install
Start Time 8/29/94
Exterior Exterior Exterior
Legend Plumbing Electrical Siding

12 12 12
Slack Time 0 8
10 10
Duration 0


Slack Time and Critical Path

 Slack Time
 Available Time - Estimated (―Real‖) Time for a task or
activity
 Or: Latest Start Time - Earliest Start Time
 Critical Path
 The path in a project plan for which the slack time at
each task is zero.

The critical path has no margin for error when performing
the tasks (activities) along its route.


Project Life Cycle


Initiation Phase

 Define the need
 Return on Investment Analysis
 Make or Buy Decision
 Budget Development


Definition Phase
 Determine goals, scope and project constraints
 Identify members and their roles
 Define communication channels, methods, frequency
and content
 Risk management planning


Planning Phase
 Resource Planning
 Work Breakdown Structure
 Project Schedule Development
 Quality Assurance Plan


Work Breakdown Structure
 For defining and organizing the
total scope of a project
 First two levels - define a set
of planned outcomes that
collectively and exclusively
represent 100% of the project
scope.
 Subsequent levels - represent
100% of the scope of their
parent node


Implementation Phase
 Execute project plan and accomplish project goals
 Training Plan
 System Build
 Quality Assurance


Deployment Phase
 User Training
 Production Review
 Start Using


Closing Phase
 Contractual Closeout
 Post Production Transition
 Lessons Learned


Project Management Tools

 PERT Chart- designed to
analyze and represent the
tasks involved in completing a
given project

• Gantt Chart - popular type of
bar chart that illustrates a
project schedule


Role of a Project Manager

• Project issues
• Disseminating project information • Implementing standard processes
• Mitigating project risk • Establishing leadership skills
• Quality • Setting expectations
• Managing scope • Team building
• Metrics • Communicator skills
• Managing the overall work plan

Process People
Responsibiliti Responsibilit
es ies

Gantt Chart


PERT Chart


Scope Management
 Project Scope Management is the process to ensure that the
project is inclusive of all the work required, and only the work
required, for successful completion.
 Primarily it is the definition and control of what IS and IS NOT
included in the project.


Issue Management
 Issues are restraints to accomplishing the deliverables of the
project.
 Issues are typically identified throughout the project and logged
and tracked through resolution.
 In this section of the plan the following processes are depicted:
 Where issues will be maintained and tracked
 The process for updating issues regularly
 The escalation process
 The vehicle by which team members can access documented issues


Cost Management
 This process is required to ensure the project is
completed within the approved budget and includes:
 Resource Planning - The physical resources required
(people, equipment, materials) and what quantities are
necessary for the project
 Budget
 Budget estimates
 Baseline estimates
 Project Actuals


Cost Terms:
 Cash flow analysis determines the estimated annual
costs and benefits for a project and the resulting annual
cash flow.
 Cost budgeting: Allocating the overall cost estimate to
individual work items to establish a baseline for
measuring performance.
 Cost control: Controlling changes to the project
budget.
 Cost estimating: Developing an approximation or
estimate of the costs of the resources needed to
complete a project.


 Direct costs are costs that can be directly related to
producing the products and services of the project.
 Indirect costs are costs that are not directly related to
the products or services of the project, but are
indirectly related to performing the project.
 Life cycle costing considers the total cost of ownership,
or development plus support costs, for a project.
 Profits are revenues minus expenses.
 A cost management plan is a document that describes
how the organization will manage cost variances on the
project.
 Cost budgeting involves allocating the project cost
estimate to individual work items over time.

2- Cost Estimation:
 Total direct cost
 Total Materials cost
 Total Labor cost
 Total Equipment cost
 Total Sub-contract
 Total indirect cost (overhead)
 Project (job or site) overhead (10 to 20 %)
 Office (management) overhead (5 to 10 %)
 Sales tax (3 to 6 %)
.


 Risk estimation (for critical activities and resources)
 (Owner === Change orders === from 0 up to 25%)
 Total cost = Direct cost + Indirect cost + Risk
estimation
 Profit (10 to 20 %) For normal projects
 Price = Total cost + Profit
 Markup = Office overhead + Profit = (15 to 30 %)
 Profit = Revenue – Total cost
 % = Revenue / Total cost


 Price policy for construction projects:

 Price limit = (1.3 to 1.7)

 Margin Factor = 1.3 to 1.5

 Price Estimation Parameters:
 Price = Total Cost * Weight Factor


 1- Project information:
 Scope and requirements -Location and Utilities
 HSE (Health-Safety-Environment) requirements
 Quality requirements
 Duration, etc.
 2- Contractor information:
 Company strategy or policy
 Resource availability
 Available and unused capacity (work load)
 Overhead ratio
 Value added ratio
 Contractor history (CV & Quality manual), etc.

 3- Owner information:
 Owner strategy or policy
 Contract type
 Price measurement (LE or $)
 Payment condition (Cash flow)
 Bonus/ penalty
 Future projects
 Owner history, etc.
 4- Market information:
 Competition level
 Relationships
 Environment conditions
 Limitations and constraints, etc.

Quality Management
 Quality Management is the process that insure the
project will meet the needs via:
 Quality Planning, Quality Assurance, and Quality
Control
 Clearly Defined Quality Performance Standards
 How those Quality and Performance Standards are
measured and satisfied
 How Testing and Quality Assurance Processes will ensure
standards are satisfied
 Continuous ongoing quality control


Communications Management
 This process is necessary to ensure timely and appropriate
generation, collection, dissemination, and storage of project
information using:
 Communications planning
 Information Distribution
 Performance Reporting
 Define the schedule for the Project Meetings (Team), Status
Meetings and Issues Meetings to be implemented


Risk Management
 Risk identification and mitigation strategy
 Whenif new risks arise
 Risk update and tracking


Change Control Management
 Define how changes to the project scope will be
executed
 Formal change control is required for all of the following
1.Scope Change
2.Schedule changes
3.Technical Specification Changes
4.Training Changes
 All changes require collaboration and buy in via the project
sponsor’s signature prior to implementation of the changes


PMP SLIDE BY: مهندس استشارى حسن فرج ENG. HASSAN FARAG EL-SAYED PMP INSTRUCTOR AUS

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