Project management training presentation

1. Project Initiation
Martin Sillaots
2019
# 2

2. Initiation in the Project Life Cycle
Initiation
Planning
Execution Control
Closing
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3. Inputs:
- Contract
- Statement of work
- Enterprise factors
- Org process assets
- Social, economical
and environmental
aspects
Methods:
- Project selection
methods
- Project
management
methods
- PMIS
- Expert judgment
Outputs
- Project charter
- Preliminary project
scope statement
Project Initiation
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4. Inputs
Initiation
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5. Project Statement of Work (SOW)
• Business needs
• Product requirements
• Organization strategic goals
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6. Enterprise Environmental Factors
• Culture
• Structure
• Standards
• Infrastructure
• Existing human resources
• Personnel management
• Work authorization system
• Marketplace conditions
• Risk tolerance
• PMIS
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7. Organizational Process Assets
• Standard procedures
• Standard guidelines
• Templates
• Communication
requirements
• Project closure requirements
• Financial control
• Control procedures
• Change management
procedures
• Risk control procedures
• Approving procedures
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8. Project Selection Methods
Initiation Tools and Techniques
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9. Project Selection Methods
• Problem analysis
• Idea generation methods
• Stakeholders analysis
• Decision models
• Benefit measurement methods
• Analyze of assumptions and limitations
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10. Problem Analysis
• Problem finding methods
• Grouping and ordering
• Define triggers and outcomes
• Problem tree
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11. E.g.: School Motivation Day Problem Tree
Activities are poorly
organised
Low participation level
Atenders are not satisfied
Teachers are not satisfied
Too much free time
Problematic behaviour
(drinking, fighting, …)
Parents are not satisfied
Activities are boring
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12. Idea Generation Techniques
• Brainstorming
• 635
• CNB (Collective Note Book)
• Benchmarking
• Delphi
• Pro-Contra
?
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13. Exercise
653 for project ideas
(preferably related with your work)
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14. Decision Models
• Forced Choice
• Decision Tree
• Analytic Hierarchy Process (AHP)
• Logical Framework Analysis (LFA)
• Multi Criteria Analysis (MCA)
• Simplified Cost Benefit Analysis (CBA)
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15. Decision Tree
TreePlan.xla

16. Analytic Hierarchy Process
• Design goal-criteria-alternatives
structure
• Set wages or priorities to criteria
• Compare alternatives pairwise per
every criteria
• Synthesize judgments
• Check consistency
• Final decision

17. Logical Framework Analysis
• Problem
• Alternatives
• Deliverables
• Indicators (cost)
• Other issues (risks)
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18. Example of LFA
Objective Alternatives Deliverables Cost Other
Decrease
response time to
client requests
from 5 to 2 days
Call center Room 5 000 …
Software 25 000 …
Hardware 5 000 …
Recruiting 50 000 …
Training 10 000 …
Online self
service
Software 50 000 …
Hardware 5 000 …
Training 10 000 …
… … …
… … … …
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19. Multi Criteria Analysis
• Family of algorithms for selecting alternatives
• Criteria and their weights
• Multidimensional characteristics instead of quantitative
economic calculus
• Used if the costs end benefits are difficult to measure
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20. MCA Process
• Define (alternative) objectives in measurable variables
• Assign weight (priorities) to the objectives
• Define thresholds (criteria)
• Analyze impact of each criteria
• Forecast the effect of each alternative
• Identify preferences
• Calculate scores
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21. MCA Example
https://projects.ncsu.edu/nrli/decision-making/MCDA.php

22. Exercise
1 idea - 3 alternatives
Select one and justify the selection
(implement one decision model)
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23. Benefit Measurement Methods
• Benefit / Cost ratio
• Economic models (added value EVA)
• Scoring models
• Comparative approaches
• Payback period
• Net Present Value (NPV)
• Discounted Cash Flow
• Internal Rate of Return (IRR)
• Return on Investment (ROI)
• Opportunity cost
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24. Net Present Value Calculation
# Year Income Outcome Balance
0 2016 0 - 45 000 - 45 000
1 2017 14 000 0 14 000
2 2018 12 000 0 12 000
3 2019 10 000 0 10 000
4 2020 10 000 0 10 000
5 2021 10 000 0 10 000
Discount rate 10%
Net Present Value (NPV) -1 802
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25. Project Charter
Initiation Outcome
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26. Purpose of the Project Charter
• Document that formally authorizes the project
• Provides authority to the project manager to use
organizational resources
• Starts project planning
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27. Project Charter Contains
• Project manager name
• Organization (team)
• Requirements and Business needs
• Description of the end result
• Main deliverables
• Stakeholders influence
• Business case
• Summary milestones (estimated deadline)
• Summary budget (estimated price)
• Assumptions and constrains
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28. http://ayucar.com/cHJvamVjdC1jaGFydGVyLXRlbXBsYXRlLWRvYw/

29. Exercise
Project Charter
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30. Initiation End
martinsillaots@gmail.com