calact introduction to project management student … fall conference/bob... · objectives. define...

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Introduction to Project Introduction to Project ManagementManagement

Welcome !

Presenter:

Bob Hull

CalACT Conference

September 2012

S OSeminar Objective

To provide an overview of project management processes and provide some skills, tools and

techniques for managing a project.

PIIntroduction to

Project Management

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A __________ endeavor undertaken to create a unique ________, _______, or _______

What is a Project?

Application of ________, _______, _______ and _________ to project activities to meet project ___________.

What is Project Management?

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• Identifying requirements

• Balancing the competing demands for quality, scope, time, and cost

Managing a Project Includes:

• Project vs Operation• Sponsor• Customer• Stakeholder

• Project Manager• Project Team• Project Scope• Project Life Cycle

Terminology

Project Life Cycle

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Six Phases of a ProjectSix Phases of a Project

• Enthusiasm

• Disillusionment

• Panic

• Search for the Guilty

• Punishment of the Innocent

• Praise and Honors for the Non-participants

K APM Knowledge Areas

• Project Integration Management

• Project Scope Management

• Project Time Management

• Project Communication Management • Project Procurement Management

• Project Risk Management

• Project Quality Management

• Project Cost Management

• Human Resource Management

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PI

Project

Initiation

A document that formally authorizes a project. Provides the PM with the authority to apply organizational resources to project activities.

What is a Project Charter?

MSScope

Management

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• Project scope management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

Project Scope Management

Scope ManagementCollect Requirements – the process of defining and documenting stakeholder’s needs to meet project objectives.

Define Scope – the process of developing a detailed definition of the project and product.

Create WBS – subdivide the project deliverables and project work into smaller components.

Verify Scope – formalizing acceptance of the completed project deliverables.

Control Scope – monitoring the status of and controlling changes to the project scope.

Collect Requirements

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Define Scope

The process of developing a detailed definition of the project and product.

Create WBS

Create WBS – subdivide the project deliverables and project work into smaller, more manageable components.

Work Breakdown Structure (WBS)

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Work Breakdown Structure (WBS)

1. House remodeling Project (Level 0)1.1 Project Management (Level 1)1.2 Remodel Garage1.3 Remodel bathroom1.3.1 Foundation (Level 2)1.3.2 Walls1.3.3 Roof1.3.4 Electrical1.3.5 Plumbing1.3.5.1 Sink (Level 3)1.3.5.2 Toilet1.3.5.3 Shower

Group Exercise

WBS for a Dinner Party

Work Breakdown Structure

MTTime Management

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PROCESSES

1. Define Activities

2. Sequence Activities

3. Estimate Activity Resources

4. Estimate Activity Durations

5. Develop Schedule

6. Control Schedule

Project Time Management

Define Activities

• The process of identifying specific actions to be performed to produce the project deliverables


• Tools and techniques:

• Decomposition

• Templates

• Rolling wave planning

• Expert judgment

Define Activities

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• Outputs:

�Activity list

• Activity attributes

• Milestone list

Define Activities

Sequence Activities

• The process of identifying and documenting relationships among the schedule activities


• Tools and Techniques:

• Precedence Diagramming Method (PDM)

• Dependencies

• Applying leads and lags

• Schedule network templates

Sequence Activities

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Sample PDM

• Output:

• Project schedule network diagrams

Sequence Activities

Estimate Activity Resources

• Estimating the type and quantities of material, people, equipment, and supplies required to perform each schedule activity


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• Expert judgment

• Published estimating data

• Project management software

• Bottom-up estimating


• Output:• Activity resource requirements


Estimate Activity Durations

• Estimating the number of work periods will be needed to complete individual activities with estimated resources


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• Expert judgment

• Analogous estimating

• Parametric estimating

• Three-point estimates (PERT-Program / Project Evaluation and Review Technique)

• Reserve Analysis

• Output:

• Activity duration estimates


Develop Schedule

• Analyzing activity sequences, durations, resource requirements, and schedule constraints to create the schedule


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• Tools and techniques:• Schedule network analysis

• Critical path method• Critical chain method• Schedule compression

– Crashing & fast tracking

• What-if scenario analysis

• Resource leveling• Project management software

• Adjusting leads and lags

Develop Schedule

Outputs:Project schedule

• Network Diagram

• Bar (Gantt) Chart

• Milestone Chart

� Schedule Baseline

Develop Schedule

REVIEW

Planning Processes

• Define Activities

• Sequence Activities (Network Diagram)

• Estimate Activity Resources

• Estimate Activity Durations

• Develop Schedule

Project Time Management Processes

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Time Management ExerciseLate Start / Late Finish

see handout

Group ExerciseDinner Party

A. Develop the Project Schedule.–Define Activities

–Sequence Activities (Network Diagram)

–Estimate Activity Resources

–Estimate Activity Durations

–Develop Schedule

B. Define the Critical Path.

C. Exercise Review.

Control schedule

• Controlling changes to the project schedule


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Tools and techniques:Monitoring

• Performance Reviews

• Earned Value

Controlling

• Resource Leveling

• What-if Scenarios

• Adjusting Leads / Lags

• Schedule Crashing

• Fast Tracking

Control Schedule

Primary Output:

Schedule baseline (updates)

Control Schedule

MCCost

Management

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Project Cost Management

• Estimate Costs

Developing an approximation of the costs of the resources needed to complete project activities

• Determine Budget

Aggregating the estimated costs of individual activities or work packages to establish a cost baseline

• Control Costs

Monitoring the status of the project to update the budget and controlling changes to the cost baseline

Estimate Costs

• Tools & Techniques

– Expert Judgment

– Analogous estimating

– Bottom-up estimating

– Parametric estimating

– Three point estimates (PERT)

– Reserve Analysis (Contingency Reserve)

• Output:

�Activity cost estimates

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Determine Budget

Aggregating the estimated costs of individual schedule activities or work packages to

establish a total cost baseline for measuring project performance

Output: Cost Performance Baseline

Scenario:

I have a project that is 6 months long with a total budget of $50,000. After 2 months, I have spent $25,000, but I had planned to spend only $20,000. Am I in trouble or not?

Control Costs

Control Cost is the process of monitoring the status of the project to update the budget and controlling changes to the cost baseline

Tool =

Earned Value Analysis

– Are we on schedule?

– Are we within budget?

Control Costs

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• Planned value (PV) = budget for the period

• Earned value (EV) = PV X % complete

• Actual cost (AC) = costs for the period

Earned Value

Group ExerciseDetermine Project Budget

A. Prepare the Project Budget.

B. Exercise Review.

Do you think we can perform Earned Value Analysis at this point?

RM

Risk

Management

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What is Risk Management?

• The process concerned with identifying, analyzing, and responding to project risk.

Overview of Risk Management

What is Risk?

“Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on at least one project objective. Objectives can include scope, schedule, cost, and quality.”

-Page 275 of PMBOK 4th Edition

Objectives of Risk Management

• Decrease the probability and/or impact of a negative event

• Increase the probability and/or impact of a positive event

Overview of Risk Management

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PLANNING

• Plan Risk Management

• Identify Risks

• Perform Qualitative Risk Analysis

• Perform Quantitative Risk Analysis

• Plan Risk Responses

MONITORING AND CONTROLLING

• Monitor and Control Risks

Risk Management Processes

• Risk Identification determines which risks might affect the project and documents their characteristics.

• It is an iterative process because new risks may become known as the project progresses.

Identify Risks

• The Risk Register:– List of identified risks

– List of potential responses

– Root causes of risk

– Updated risk categories(using Risk Breakdown Structure)

Output:Output:

Identify Risks

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• Prioritizes risk based on a Risk Rating, which combines probability and impact of a risk = P X I

• Risk probability assessment investigates the likelihood that each specific risk will occur.

• Risk impact assessment investigates the potential effect on a project objective.

Qualitative Risk Analysis

• Risk Probability and Impact assessments

• Probability and Impact Matrix


Tools & Techniques:Tools & Techniques:

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�The Risk Register:

– Ranking and/or priority list of project risks

– Risks grouped by categories

– List of risks requiring response in the near-term

• Watchlists of low priority risks

Output:Output:


• Is the process of developing options, and determining actions to enhance opportunities and reduce threats to the project’s objectives.

• It includes the identification and assignment of one or more persons (the “risk response owner”) to take responsibility for each agree-to and funded risk response.

Plan Risk Responses

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• Strategies for Negative Risks or Threats:– Avoid changing the project plan to eliminate the risk or to protect the project objectives (time, cost, scope, quality) from its impact

– Transfer shifting the negative impact of a threat, along with ownership of the response, to a third party

– Mitigate reduction in the probability and/or impact of an adverse risk event to an acceptable threshold

– Accept A strategy that is adopted because it is either not possible to eliminate that risk from a project or the cost in time or money of the response is not warranted by the importance of the risk

Plan Risk ResponsesTools & Techniques:Tools & Techniques:

• Strategies for Positive Risks or Opportunities:– Exploit seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen

– Share allocates some or all of the ownership to a third party who is best able to capture the opportunity for the benefit of the project.

– Enhance modifies the size of an opportunity by increasing probability and/or positive impacts, and by identifying and maximizing key drivers of these positive-impact risks

– Accept Accepting an opportunity is being willing to take advantage

of if it comes along, but not actively pursuing it

Plan Risk ResponsesTools & Techniques:Tools & Techniques:

• Active– Establish a contingency reserve, including amounts of time, money or resources to handle identified risks.

• Passive– Requires no action, leaving the project team to deal with the threats or opportunities as they occur.

– “Work around” plan would then be developed

Acceptance comes in two forms:

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Matching Exercise

Enhance

Transfer

Mitigate

Share

Avoid

Accept

Exploit

1. Changing the project plan to eliminate the threat.

2. Payment of a premium to the party taking on the

risk.

3. Reduction in the probability and/or impact of an

adverse risk to an acceptable threshold.

4. Ensure that the risk is realized.

5. Allocating ownership to a third party who is best

able to capture the benefit of the project.

6. Modify the size of a risk by increasing

probability and/or impacts.

7. Team has decided not to change the project plan

to deal with a risk.

Risk register (updates)

• Risk Response strategies

• Triggers

• Residual risks

• Secondary risks

• Contingency Reserves

• Fall back plans

• Risk-related contractual agreements

• Risk Owners

Plan Risk Responses

Output:Output:

RISK REGISTER Project Name: Project Manager:

Risk Identification Risk Ranking Risk Response

ID # Risk DescriptionRisk

Category

Threat or

OpportunityObjective Probability Impact Risk Score Risk Rank Strategy Type Response Description Risk Owner

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Group ExerciseProject Risk Register

A. Identify the risks (threats / opportunities) associated with the project.

B. Perform the Qualitative Analysis

–Rank the risks.

–Use the Probability / Impact Matrix.

C. Prepare a Risk Response plan.

- Identify response strategy / type

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QQuality Management• Processes include all the activities of the performing organization that determine quality policies, objectives and responsibilities so that the project will satisfy the needs for which it was undertaken.

• Quality is the degree to which set of inherent characteristics fulfill requirements

HMHuman Resource

Management

Includes the processes that organize , manage, and lead the project team. Project team is comprised of the people who have assigned roles and responsibilities for completing the project

CM

Communication

ManagementIncludes the processes required to ensure timely and appropriate generation, collection, distribution, storage, and disposition of project information.

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PM

Procurement

Management

Includes the processes to purchase or acquire the products, services or

results needed from outside the project team to perform the work.

The Project Management ProfessionThe Project Management ProfessionThe Project Management ProfessionThe Project Management Profession

• Project Management

Institute (PMI)

• www.pmi.org


Body of Knowledge (PMBOK)


Professional (PMP)

THANK YOU !THANK YOU !THANK YOU !THANK YOU !

Bob Hull, Caltrans, 559-243-3443

[email protected]

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