This document discusses key concepts in project management including: 1) It defines a project as a temporary endeavor undertaken to create a unique product or service. Projects have finite durations and are unique, whereas operations are ongoing and repetitive. 2) Project management involves applying knowledge, skills, tools, and techniques to meet project objectives by balancing scope, time, cost, quality and risk through processes like planning, executing, and closing. 3) Important project management steps include developing a project charter, work breakdown structure, logical sequencing of tasks, estimating activity durations, and creating a schedule using critical path methodology.

1. Manage Projects ProfessionallyProject Management Toolkit

2. Important StuffSetting StandardsWhat 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 StuffSetting StandardsNot a training programThis is an EXPERIENCE – Learning Experience for ALL of usBe ready to give and receive constructive criticism

4. Learning ContractA contract between YOU and YOURSELFWrite ONLY what you want to remember laterNot more than 10 points“The Only Barrier to Learning the Truth is to Assume You Already Know It”Confucius

5. Why perform Project ManagementPreparation

6. Understanding the Expectation GameProject Intro

7. What is a ProjectProject Definition : "A temporary endeavor undertaken to create a unique product, service or result"FeaturesTemporary: Has a finite duration, project ceases when its objective is achieved. Does not mean short duration. Normally, the product/service will outlive the projectUnique : Doing something that has not been done earlierProgressive Elaboration: "Developing in steps, and continuing in increments". Development of details progressivelyEnvironmentConstantly changingBuilding and DismantlingPrecedes Operations

8. What is a ProjectProjects and OperationsSimilarities:Performed by peopleConstrained by limited resourcesPlanned, executed and controlledDifferences:Operations: Ongoing, repetitive, necessary for sustaining the businessProjects: Temporary, unique.Projects and Strategic PlanningProjects are used to achieve strategic plansIn response to market demands, customer requests, organizational needs, technological advances, legal requirements.

9. What is Project ManagementApplication ofKnowledge (e.g. Domain areas - Pharmaceutical, construction, etc.)Skills (Managing)Tools & Techniques (Software)Project activities (e.g Time Management, Cost Management, etc.)The GOALProject objectivesPM is accomplished through processes Prepare – Plan – Execute - CloseProject work typically involvesIdentifying requirementsDefining objectivesBalancing the competing demands for Scope, Time, Cost, and QualityManaging stakeholders

10. Why Project Management?To enhance the probability of project successTo focus on objectives - Scope, Time, Cost, Quality & RiskFor effective response to rapid changesTo manage effective utilization of resourcesTo address stakeholders interestsTo manage risks effectivelyAchieve Financial EfficiencyProject CostProject TimeProject QualityLessons LearntCreate re-usable data and information for future use

11. Project LifecycleNo ‘ideal’ project lifecyleIt definesWhat work to do in each phaseWhat deliverables to be generatedWho all are involved in each phaseHow to manage each phase

12. Project LifecycleCommon characteristicsPhases are generally sequentialCost and staffing are low at the start, peak in the middle and are low againRisk is high at the start and slowly declinesInfluence of stakeholders is highest at the start and declines slowly

13. Project PhasesPreparaingDefines and authorizes the project or a project phasePanningDefines and refines objectives, and plans the course of actions required to attain the objectives and scope that the project was undertaken to addressExecutingIntegrates people and other resources to carry out the project management plan for the projectRegularly measures and monitors progress to identify variances from the project management plan so that corrective action can be taken when necessary to meet project objectivesClosingFormalizes the acceptance of the product, service or result, and brings the project or a project phase to an orderly end

14. Project CharterThe document that formally authorizes the projectAuthorizes Project Manager to apply organizational resourcesPM should be assigned at the earliest feasible, but should always be assigned before start of the planning phase, or during charter developmentThe Initiator or Sponsor is external to the project organization at a level appropriate to funding the project

15. Project CharterProject Charter should address the followingRequirements of the customers, sponsors and other stakeholdersBusiness needs, project justification, strategic planAssigned PM and authority (some other resources may also be pre-assigned)Product description/deliverablesSummary milestone scheduleStakeholder influencesFunctional organization and its participationConstraints and assumptions relating to organization, environment and external factorsSummary budgetAny change in the Project Charter should question the continuance of the project

16. Well planned is almost donePlanning

17. Project Activity Planning

18. The Columbus Disease

19. Project PlanningPlanning is a process – not an outcomePlanning should address Setting the boundaries | Scope statementActivity planningActivity schedule developmentCost planningRisk planning

20. Scope StatementProject scope statement should address the following areas:Project and product objectivesProduct/service requirements and characteristicsProduct acceptance criteriaProject boundaries – What is included and what is notProject requirements and deliverablesProject constraintsProject assumptionsInitial project organizationInitial defined risksSchedule milestonesInitial Work Breakdown Structure

21. Project Activity PlanningSteps to develop project activity scheduleSpecify 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 activitiesUpdate the schedule / diagram as the project progresses

22. Activity Identification Tool - WBSDeliverable-oriented hierarchical decompositions of project work Creates the required deliverablesWBS organizes and defines the total scope of the projectSubdivides the project work into smaller, more manageable pieces of workHas descending levels with increasingly detailed definition of the project workLowest level WBS components are called work packages; they can be scheduled, cost-estimated, monitored and controlled

23. WBSCharacteristicsManageable (specific authority/responsibility assigned)Independent (with respect to other elements o( projects)Integrateable {so that the total package can be seen)Measurable (each deliverable)PurposeTo simplify a complex project - it is a summation of elementsPlanning can be better performedDuration, cost and budget can be establishedTime, expenditure, and performance can be trackedNetwork and Control Planning can be initiatedResponsibilities and Resources can be assignedOmission/duplication of tasks can be avoidedProvide a common structure and coding system

24. Creating WBSTemplatesDecompositionSubdivision of project deliverables into smaller chunksGoal : create work packagesMay not be possible for deliverables that are far into the futureDifferent deliverables may have different levels

25. Sample WBS

26. Sample WBS

27. Task SequencingIdentification of logical sequencing among schedule activitiesAllows for a smooth flow of project activitiesHelps to identify the most efficient way to reach project milestones

28. Task Sequencing Tool - PDMPrecedence Diagram MethodHelps to develop project scheduleIdentifies dependencies of different activities to establish the fastest path to task completionMost useful for complex projectsVisual display helps to communicate activity executionIdentifies missing activitiesAlso known as AON

29. PDMTerms to rememberEventsActivityDependencyFour types of dependenciesFinish to Start (most common)Start to StartFinish to FinishStart to Finish (rarely used)Practice

30. Building a PDM

31. Task Sequencing Tool - ADMArrow Diagram MethodAnother way to create a schedule network diagramAOA – Activity on ArrowDifferenceActivities are identified on arrowsActivities connect on nodes to show dependenciesOnly has Finish to Start dependencyCan also have dummy nodesLess commonly used in project planningSample ADM

32. PracticePerform Task Sequencing throughPDMADMSample Project Activities

33. Duration Estimate ToolsParametric EstimateDetermined by multiplying the quantity of work by the productivity rateConstruction work – per square footDesign work – labor hour per designDrilling – time taken per cubic inchThree-point EstimateHelps to consider the amount of risk in the initial estimateConsiders 3 types of estimatesMost likelyOptimisticPessimistic

34. Schedule DevelopmentOutlines the proposed timelines for the project activitiesIs an iterative processIs typically completed AFTER activity duration estimateServes as the baseline against which project progress can be tracked

35. Schedule Development Tool - CPMDupont developed the concept in 1957 – to address the shutting of plants for maintenanceHelps to identify the path of activities where any delay WILL cause a delay in the project timelineFor activities outside the Critical Path, there is tolerance forLate startLate finishEarly startUsed to be carried out by hand – now there are software availableMS ProjectPrimaveraSchedule activities on the Critical Path are called Critical Activities

36. More on CPMCalculated by estimating the following 4 parameters for each activityES - Earliest start timeEarliest time at which the activity can start given that its precedent activities must be completed firstEF - Earliest finish timeEqual to the earliest start time for the activity plus the time required to complete the activityLS - Latest start timeEqual to the latest finish time minus the time required to complete the activityLF - Latest finish timeLatest time at which the activity can be completed without delaying the projectSlack TimeTime between its earliest and latest start timeAmount of time that you can delay an activity without delaying the project scheduleCritical Path A path in which all activities have ES = LS and EF = LF

37. Why CPMCPM helps to identifyDifferent activities that MUST be completed on time for the project to stay on scheduleWhich activities can be delayed and their resources can be reallocatedMinimum duration of the project Early start and late start time for each activity in the schedule

38. Schedule Compression ToolsSchedule CompressionHelps to shorten project schedule WITHOUT changing the project scopeCompression techniquesCrashingCost and Time tradeoffs are analyzed to determine the greatest amount of project compressionOften results in increased costFast TrackingSequenced activities are performed in parallelE.g. – foundation work is started before detailed architecture drawings are completeIncreases project risks

39. Project Cost Planning

40. Why Perform Cost PlanningHelps to manage the cost of the resources needed to complete schedule activitiesProjects cash outflows at different stages of the projectHelps to highlight the risk of major cost over-runsEstablishes a baseline to compare with the actual project costHelps the sponsors to decide whether to continue or shut the project

41. Cost Planning ToolsBottom-up EstimatingStarts from Work Packages – from bottom level activitiesAdd up their costs and work upwardsAggregate the costs to reach a final figurePros and ConsUpside – is more accurate, cost changes can be recorded easilyDownside – takes more time, requires detailed knowledgeParametric Estimating (discussed earlier)

42. Cost Planning ToolsTop-down Estimating (Analogous Estimating)Takes cost inspiration from similar projects, tasksStarts from the top and work downwardsDivide the cost figures among different sub-projects or tasksPros and ConsUpside – quick and easy to use, good for early-stage planningDownside – often is very inaccurate, can mislead if used at a later stageReserve AnalysisContingency factor – what-if scenarioDownside – can over-state the cost estimate of schedule activityRemedy – aggregate reserves for a group of activity and assign it to a dummy task

43. Inputs for Cost PlanningEnterprise Environment FactorsOrganizational Process AssetsProject Scope StatementWork Breakdown StructureWBS DictionaryProject Management PlanSchedule Management PlanStaffing Management PlanRisk Register

44. Project Risk Planning

45. What is Project RiskProbability of an uncertain event or condition with a positive or negative effect on any one of the following project objectivesScopeCostTimeQualityExamplesProbability of delay in acquiring a permit from the government for an aspect of the projectProbability of unavailability of adequate resources assigned for a particular taskProbability of increase in resource cost

46. Understand RiskTypes of risksKnown risks – something we can plan forUnknown risks – we are caught off guardRisks – threats or opportunities?Taking risk against profitable gainUsing Fast Tracking to shorten project timelineRisks that offer opportunitiesLowering of taxes on project resources, brining cost downAttitude toward risk?Fear and avoidAccept and face

47. Risk Planning Process

48. Risk IdentificationDocumenting which risks might affect the projectIs an iterative processPM should decide the frequency of reviewLeads commonly to qualitative analysis Grouping of risks with respectHow they relate to each otherHow they impact the project objectivesTheir probability Risk RegisterA collection of all types of risks and their characteristicsThis is the output of the process

49. Risk Identification ToolsBrainstormingGather with different stakeholders in separate groupsCollect the risks they identifyConsolidateDelphi TechniqueAsks a group of experts anonymously a set of questions about potential risksConsolidate dataSend it to the experts again and seek commentRepeat 3-5 timesSWOT AnalysisStrengthsWeaknessesOpportunitiesThreats (these are your risks)Checklist AnalysisHistorical dataRisk Register from another projectUse the data gathered to prepare a checklist

50. Sample Risk Register

51. Risk Impact Scales

52. Qualitative Risk AnalysisHelps to prioritize project risksSets you up for the next stepEither quantitative risk analysisOr risk response planningMain ingredientsRisk probabilityRisk impactRisk tolerance for Scope, Cost, Quality and TimeAdvantagesEasy and simple to useGives a ballpark figure of risk impact valueDisadvantagesToo simple for complex projectsMay be inaccurate

53. Tool | Risk MatrixHelps you to Visualize the effect of different risksGives you the ‘big’ pictureCharts risks X-axis – Risk ImpactY-axis – Risk ProbabilityRisk Matrix

54. Tool | Probability-Impact MatrixRisk probabilityLikelihood that a certain probability will occurRisk impactPotential effect of a certain risk on any of the four project objectives: scope, time, quality and costAssesses both positive as well as negative riskPositive risk – opportunitiesNegative risk – threatsRisk FactorResult of multiplying risk probability with risk impactGives the final impact of a certain riskRisk data qualityAsk experts – avoid bias – look at historical data

55. Sample | Probability-Impact MatrixProject ObjectiveTo establish a new territorial officePotential RisksInflation higher than estimatedProject team members leaving before project completionChanges in project scopeSecurity situation of the area

56. Qualitative Risk Analysis | OutputQualitative analysis results inRanking of different risksGrouping of risksList of risks requiring response in the near-term / long-termList of risks for additional analysis

57. Risk Response PlanningProcess of developing responses toEnhance opportunitiesReduce threatsShould address risks based on their Risk Factor or priorityHelps to create some cushion by Allocating extra budgetAllocating extra time

58. Tools | Risk Response StrategiesResponding to ThreatsAvoidChange the PM plan to avoid a riskTransferShifting the impact and ownership of risk to third party (insurance policy)MitigateWork to reduce the probability or impact of a risk (test marketing, prototyping)Proactive Vs ReactiveResponding to OpportunitiesExploitSeek to face the risk head on (assigning better talent to a task)ShareSharing the ownership with a third party (JVs)EnhanceSeek to increase the probability or impact of the positive risk

59. Executing to PerfectionExecuting

60. Communicating What Needs ExecutionProject Communication Management

61. Communications ManagementObjectiveTo ensure timely and appropriate generation, collection, distribution, storage, retrieval and ultimate disposition of project informationProcesses for communication managementInformation distributionPerformance reportingStakeholder communication management

62. Information DistributionBroad StrategyNeed-to-know basisRestricts access – Keeps security intact – Maintains strong lines of separation – Keeps the focus of the members intactWant-to-know basisOpens access – Risks information proliferation – Allows for involvement – May increase distraction

63. Information Distribution | ToolsDistribution TriggersTime-based reports / meetingsFrequencyEvent-based reports / meetingsEvent significance identificationStyleFormalStandard templatesInformal No specific formatsMethodsIsolated meetingsProject team meetingsE-sharing thru project management systemsE-mails and file sharing systemsContentHigh-level Less detailsFocuses on output / deliverableLow-levelMore detailsFocuses on processes

64. Performance ReportingPurposeTo continuously assess current project performance against project estimated baselines related toScopeQualityTimeCost

65. Performance Reporting | ToolKPI – Key Performance IndicatorWhy“Numbers don’t lie”Helps to measure performance objectivelyRemember that KPIs shouldConnect with either one of the four project objectives (SCTQ)Measure live project performanceShould be designed so they result in numbers or %Will measure the performance result against baseline estimates

66. Stakeholder Communication ManagementPurposeTo satisfy the needs of and resolve issues with project stakeholdersSuggested Strategy“Need to know basis” – well-defined lines of communication separationActive engagement – answer before they question

67. Communicating What Needs ExecutionRisk Management

68. Risk ManagementObjectiveExecuting the risk plans and reassessing them to meet project objectives Risk Monitoring and ControlAssess the assumption of earlier identified risksMonitor the progress of risk response executionIdentify and analyze new risks

69. Risk Management | ToolRisk AuditExamines and documents the risk responses and compares it against the established baselinesSubjective activity – helps to see the trend and reassess the risk responsesVariance AnalysisIdentifies how much the actual progress has deviated from the baseline estimatesStatistical methodProvides an objective analysisReserve AnalysisRisks will occur – your reserves will get consumed, but how much?Analyze the use of reserves consumption

70. Quality Management

71. Quality ManagementQualityDegree to which a set of inherent characteristics meet requirementsPurposeTo ensure the baseline quality targets are met through Achieved throughQuality AssuranceTo ensure that processes are being followed as planned and proposedQuality ControlTo ensure specific project deliverables meet the quality standard that was planned and proposed

72. Quality AssuranceApplication of planned and systematic activities to ensure that processes are in line to meet the project objectivesNegates “Don’t fix it if it isn’t broken” philosophySetupA separate designated teamQuality CirclesMembers from within the team are assigned and rotated to perform QABenefitsChecks deviations before they result in bad quality deliverablePaves way for Continuous Improvement (Kaizen?)Helps to develop stronger standards for processes

73. QA | ToolsQuality AuditsStructured review activity to check whether project processes comply with organizational / project policies and proceduresShouldn’t be announced – best when done without prior noticeConducted by trained in-house personnelProcess AnalysisA scheduled activity to systematically review processes in view of the deliverables and project objectivesFeedback from project members

74. Quality ControlMonitoring of specific project deliverables to check whether they comply with planned / proposed quality standardsSetupAn independent team performs quality checksDone through samplingStatistical analysis – to identify patterns and then identify root causeBenefitsKeeps poor quality deliverables from reaching in the hands of the customer or sponsorHelps to identify poor inputs into activitiesArrests trends that could lead to further deterioration in quality of the deliverables

75. Change Management

76. Change ManagementPurposeTo assess, record and incorporate any changes to the project objectives mainly T-Q-S-CIs performed from inception to completionIs important as projects seldom get executed exactly as plannedIs often a result of a risk being materializedPositive risk – positive changeNegative risk – negative change

77. Change ManagementSteps to perform control and manage changesIdentify the need for a change in the project objectivesReview request for changesAssessing the effects of proposed changes to SCTQ Inform and review the proposed changes with stakeholdersIf approved, document and update all SCTQ baselines

78. The DestinationClosing

79. Closing Project

80. Closing ProjectStructured processEnsure that deliverables are handed over to project sponsors or customersDocument and archive project records for future projectsEnsure project deliverables are accepted by sponsors / customersPerform comparative analysis of initial baseline estimates and final output

81. DocumentationPurposeTo ensure that all important activities, policies, processes and deliverables are documented for reviewBenefitFacilitates project performance analysisAllows for comparative analysis between projected and actualMakes templates available for future projectsSome policies and processes can be utilized by other departments in organizationsProvides important data for operations

82. Thanks