mgt/437 - grot.com mgt/437 #2 -- brian smithson 1 mgt/437 project management ... a guide to the...

02/12/2004 MGT/437 #2 -- Brian Smithson 1

MGT/437

Project ManagementSession #2University of Phoenix02/12/2004Brian Smithson


AgendaReview/QuestionsSession content

PMI project frameworkProject Knowledge AreasProcess GroupsMapping Process Groups and Knowledge Areas

Phoenix material“Triple Constraint”Project ScopeWork Breakdown Structure (WBS)Task SequencingGantt ChartsRisk Assessment

Integrating QuestionsReview and preparation for #3


Review/QuestionsIndividual assignmentLearning Team AssignmentAssigned Reading


PMI Project Framework

Specific areas of knowledge applied to Processes results in Project

Activities


Knowledge AreasPMI identifies nine project knowledge areas:1. Integration Management2. Scope Management3. Time Management4. Cost Management5. Quality Management6. Human Resource Management7. Communications Management8. Risk Management9. Procurement ManagementKnowledge areas are employed in a variety of processes during the life of a project


Project processesPMI identifies five process groups1. Initiating2. Planning3. Executing4. Controlling5. ClosingInitiating and Closing occur serially, at the beginning and end of a project (or project phase)Planning, executing, and controlling occur as parallel, interactive activitesA project may consist of multiple phases, each of which is composed all five process groups


Interaction between process groups

Source: A Guide to the Project Management Body of Knowledge (PMBOK), 2000 Edition


Relative activity levels in each process group



Process groups in project phases



Mapping Process Groups and Knowledge Areas into activities

Contract closeoutSolicitationSource selectionContract administration

Procurement planningSolicitation planning

Procurement Management

Risk monitoring and control

Risk management planningRisk identificationRisk analysisRisk reponse planning

Risk Management

Administrative closurePerformance reportingInformation distributionCommunications planningCommunications Management

Team developmentOrganization planningStaff acquisition

Human Resources Management

Quality controlQuality assuranceQuality planningQuality Management

Cost controlResource planningCost estimatingCost budgeting

Cost Management

Schedule controlActivity definitionActivity sequencingActivity duration estimatingSchedule development

Time Management

Scope verificationScope change control

Scope planningScope definition

InitiationScope Management

Integrated change controlProject plan executionProject plan developmentIntegration Management

ClosingControllingExecutingPlanningInitiatingProcess group/ Knowledge area


Phoenix material...


Triple ConstraintTime, Cost, Performance— or... —

Schedule, Budget, Scope— or... —

Time to Market, Investment, Features

— and —

QualityCustomer Satisfaction

$


Trade-offsLess money =

more timesmaller scope

Shorter time =more moneysmaller scope

Larger scope =more moneymore time

$


Constrain, enhance, or accept?Decide what’s a hard requirement, what’s a beneficial enhancement, and what’s acceptable to your particular projectFor example:

Cost is fixed, therefore budget must be constrainedCustomer is sensitive to timing, therefore it would be beneficial to accelerate the schedule if possibleGiven a constrained budget and a possibility of shortening the schedule, the scope of the project may need to be reduced


Project ScopeProject charterStrategic plansExecutive directivesCustomer requirementsRegulatory/legal requirementsCompetitive parityMarket researchNew innovationLast year’s modelInternal/departmental goals...

Project Scope


Components of scopeProject objectivesDeliverablesMajor milestonesTechnical and quality requirementsLimitations


Importance of stakeholder buy-inCustomer Performing organization Sponsor (financial) End users Society Others

Internal External

Project manager Team


Scope creepUsually small, or seemingly small, changesMade with good intentionsMade without applying the change control processCan have significant impact on cost, schedule, quality...Sometimes that impact is indirect and not apparent when the change is made


Work Breakdown Structure (WBS)

Starts with the complete project statementBreaks down into smaller and smaller work elementsLowest level is an executable “work package”

Project

Sub project

Deliverable

Sub deliverable

Cost account

Work package


WBS benefitsEnumerates all work in a hierarchyHelps ensure that work is defined and understood at a consistent level of detailProvides a framework for tracking cost and performance of related work and “rolling up” those measures by functional areaAll WBS work packages must appear in the execution plan


WBS example


Process Breakdown Schedule (PBS)

Used for projects that have less well defined outcomes and are more process oriented


Project Network and Task Sequencing

Project networks are typically composed of nodes (tasks) and arrows (sequential relationships); this is called Activity on Node (AON)Another technique, Activity on Arrow (AOA), is less frequently usedTasks are put in sequence only when they have a predecessor-successor relationship

Yes: framing before wallboard, wallboard before paintNo: place order for wood, order wallboard, order paint


Types of sequential relationshipsMost often used: finish-to-start (FS)

Task A must be finished before task B can start

Others: use with some cautionStart-to-start (SS): task B cannot start until task A startsFinish-to-finish (FF): task B must finish when task A finishesStart-to-finish (SF): task B must finish when task A starts


Lag timeLag time is used to modify sequential relationship with a time delayExample: Start-to-start with 5 day lag

Task B can start 5 days after task A startsAgain, use with cautionAnything other than Finish-to-start relationships are often overlooked or misunderstood on schedules and should not be used except when necessary


Diagram construction basicsTime moves from left to rightHowever, it’s not really drawn on a scale or timelineExample:

Task D comes after Task ATask C comes after Tasks A and BTask A has no defined time relationship to Task B, even though they appear to be in a parallel relationship.Task A and Task B, with no predecessors, will be scheduled to be done as soon as possible

Task A

Task B Task D

Task C


MilestonesMilestones are defined as “zero-length” tasksThey can be used for two purposes:

Identifying critical junctures in the project, such as phase beginnings/endings or deliverable datesActing as a collection point for the endpoints of a group of related tasks. For example:

Completion of programming, content, and graphics work for a web site: collect their finishing points to represent the predecessor for web site integration.


Task sequencing steps1. Enter (or import) tasks and project milestones2. Establish sequential relationships for closely related

tasksProgram, test, integrate software code.Design, review, revise, approve kitchen remodel plans.

3. Establish interrelationships between task sequences. Insert “dummy” milestones to aid the process if necessary.

4. Enter any hard date constraints, such as project start date or committed finish date.

Enter such dates on milestones only – create a new milestone for the purpose if necessary.


Task duration estimating steps1. Get estimates from people who are most

knowledgeable and/or accountable for the execution of the tasks.

Historical information, or judgment based on experience, may be needed to account for the estimator’s optimism or sandbagging.

2. Enter durations in terms of resource unit hours (i.e. person-hours), not in terms of calendar duration.

This makes it possible for you to “add bodies” when appropriate to reduce the calendar duration later.

3. Make sure you have buy-in from those responsible for performance of the work.


Steps to complete the scheduleNormally, you would apply actual resources at this point. We’ll cover that in another session.Once you have a project start date, tasks sequenced, resource-unit durations established, and resources assigned, you will have a complete schedule that shows calendar start/finish dates for each task and for the project as a whole.The end date will be in 2013. Management wanted it in 2004. ☺


Slack time and critical pathLooking at your schedule, some tasks will have “slack time” and some will not.Slack time is the amount of time that a task could be lengthened or delayed without effecting the end date of the project.

This will be more clear when we look at it on a Gantt chart.

There will be at least one sequence of tasks from project start to project end in which all of the tasks have zero slack time. This sequence of tasks is called the Critical Path.


Critical path analysisIf…

you need to reduce the overall length of your project

– or –you want to know which tasks to monitor most closely:

Look at the critical path(s) in your schedule.Any reductions you can make that go beyond the total slack for the path will have diminishing returns, because a new critical path will have been created.


So show me one already!

Milestones

Critical path

Parallel activities


Gantt ChartShows tasks and milestones along a timelinePopular with senior management ☺Bars represent tasksSolid bars with “down arrows” are task groupsArrows represent task relationships

long horizontal lines indicate slack time


Risk assessment overviewIdentify risks as early as possibleAssess their potential impact and probability of occurrencePrioritize accordingly

Assessment matrixRatio/range based on past projectsProbability analysis (e.g. PERT)

Plan your responsesAvoidance: change the plan to eliminate the condition or to protect the project from impactTransference: shift the consequences to a third partyMitigation: reduce the probability and/or consequencesAcceptance: develop a contingency plan

Monitor and respond


The importance of risk planning


Program Evaluation Review Technique (PERT)

Instead of a single task duration estimate, you generate three estimates:

OptimisticMost likelyPessimistic

Assume a statistical distribution, such as 20% optimistic, 50% most likely, 30% pessimisticRun computer simulations


Integrating QuestionsWhat are the differences among milestones, deliverables, objectives, and goals?What is the relationship between scope, schedule, and risk?What is the relationship between schedule, precedence, and network flow?


ClosingQuestions?Assignments

See the Course Syllabus for assignmentsIndividual:

reading assignmentNETg WBS assignment

Learning team:task analysis, part 2 of the paper due

See you next week!

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