pm, managing projects course slides

ESI International PMC:CPM:EN:000 ver. 2.0

Introduction

1

WelcomeEmergency phone numberLocal emergency exit proceduresFloor and facility layoutStart and end expectationsBreaksAttendanceAgendaPassing this courseGround rules


Introduction

2

Course OverviewModule 1: Introduction to Project ManagementModule 2: Project InitiationModule 3: Project PlanningModule 4: Project ImplementationModule 5: Project Closeout


Introduction

3

Course ScopeThis course does

Teach the fundamentals, tools,and concepts of projectmanagementDiscuss the role of the projectmanager and the teammembers in managing a projectPractice the fundamentals ofproject management

This course does notTeach everything there is toknow about projectmanagementCover all topics of projectmanagement in great depthTeach everything you need toknow for the credentialing

1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 416.


Introduction

4

Standards and Best PracticesA standard is a basis for uniformly measuring or specifyingperformance.1A best practice is a generally accepted process or technique thatconsistently outperforms and delivers greater value and benefitswithin a discipline.


Introduction

5

Global Best Practices in Project ManagementGlobal best practices in project management are promoted throughthe following:

Various project management standards organizations, includingProject Management Institute (PMI)International Project Management Association (IPMA)Association for Project Management (APM)International Organization for Standardization (ISO)

Practicing experts within the fieldYour organization


Introduction

6

Course ObjectivesBy the end of this course, you will be able to

Describe the roles and responsibilities of project managers acrossthe project life cycleDefine and develop the foundations of a project plan, including therequirements document, work breakdown structure (WBS), budget,schedule, and other resourcesManage and control the project against the baselineClose out a project effectively


Introduction

7

Participant IntroductionsNameLocationYears in current organizationProject experienceExpectations of this courseMost challenging project you haveworked on


Module 1

1-1

Introduction to Project Management


Module 1

1-2

ObjectivesBy the end of this module, you will be able to

Identify the fundamental concepts of project managementDescribe project processes that make up every projectIdentify the roles and responsibilities of the project manager


Module 1

1-3

What Is a Project?Projects are

TemporaryUniqueTime-based

Project ManagementIs using the resources you have to get the job done successfully

Good project management discipline helps to ensure projectsuccess.


Module 1

1-4

How Does a Project Fit into the Bigger Picture?


Module 1

1-5

DiscussionWhy Does a Project Fail or Succeed?


Module 1

1-6

Project Constraints


Module 1

1-7

Managing Projects Using Project ConstraintsBalancing the constraints to completethe projectCombining art and scienceDefining and refining the project on anongoing basis

Managing project constraints involves aconstantly changing balance.

1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 416.2 PMBOK is a registered mark of the Project Management Institute, Inc.


Module 1

1-8

Some Global Standards Governing ProjectManagement

A standard is a "basis for uniformly measuring or specifyingperformance."1

A Guide to the Project Management Body of Knowledge(PMBOK Guide2)

Project Management Institute (PMI)Identifies the subset from overall project managementknowledge that is generally recognized as good practiceProvides and promotes common language and vocabulary

The APM Body of KnowledgeAssociation for Project Management (APM), a UK-basedmember of the International Project Management Association(IPMA)


Module 1

1-9

Some Global Standards Governing ProjectManagement (continued)

PRojects IN Controlled Environments (PRINCE2)Template-based approach to project management thatoriginated in the UK

ISO 21500:2012, Guidance on Project ManagementJoint venture between

International Project Management Association (IPMA)International Organization for Standardization (ISO)Project Management Institute (PMI)

Guidance on project management for any organization andany type of project regardless of complexity or size


Module 1

1-10

Project Management Best PracticesProject management has many areas to focus on and pay attention:

Integration Human resourcesScope CommunicationsTime Stakeholder expectationsCost RiskQuality Procurement/contractingValue GovernanceBenefits CompetencyHealth safety and environment

For more information, See the PMBOK Guide and the APMBoK.


Module 1

1-11

Project Life Cycle

Projects are usually divided into phases to provideExtra control to manage the completion of deliverablesA common understanding or frame of reference whendiscussing project statusA quick guide to the work being done on a project; the start,middle, and end

Collectively, these phases make up the project life cycle.

Project life cycles depend on the organization and the product orservice being built.

Appendix A: Typical Project Life Cycles


Module 1

1-12

Project Management is an Iterative Set ofProcesses

The five basic project process groups in the image below areInitiating Activities to start up/begin a project or phasePlanning Activities to organize and prepare for a project or phaseExecuting Activities to coordinate and accomplish work of aproject or phaseMonitoring and Controlling Activities to manage and direct theimplementation of a project or phaseClosing Activities to close down and end a project or phase


Module 1

1-13

Project Life Cycle Key Documentation

Appendix B: Generic View of Project Documentation


Module 1

1-14

Project Manager 's Roles and ResponsibilitiesA project manager is the one responsible and accountable for thesuccessful coordination and execution of a project to meet the needs andrequirements of project stakeholders on time and on budget.Roles and Responsibilities

Define the project scope and clarify requirements.Select, build, and lead a project team.Identify/assess stakeholders.Develop the project plan, including the budget and schedule.Manage and control project risks.Manage all project changes.Manage the project constraints.Manage stakeholder needs and expectations.Monitor and report the project progress and status.Monitor the quality metrics.Manage expectations and watch for and react to future trends.


Module 1

1-15

DiscussionWhat makes a great project manager great?


Module 1

1-16

Skills Needed by Project Managers

1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 342.2 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 348.


Module 1

1-17

Key MessagesA project is a temporary undertaking to create a unique product orservice. 1Project management is the application of knowledge, skills, tools,and techniques to project activities to meet or exceed stakeholderneeds and expectations from a project. 2Project managers must balance the project constraintscost,scope, time, risk, quality, and resourceover the life of the project.The phases of a project (which often vary by type of project) makeup the projects life cycle.An example of a project life cycle is initiation, planning,implementation, and closing.


Module 1

1-18

Key Messages (continued)Five interacting process groups work together to make up a project:initiating, planning, executing, monitoring and controlling, andclosing.Activities and processes within the five process groups arecategorized within the nine knowledge areas.To be effective, project managers need to have hard skills, suchas planning and budgeting, as well as soft, people-related skillslike communicating and conflict resolution.The project managers primary role is to manage the project, butalso important are the related roles of planning, leading,communicating, negotiating, and problem solving.


Module 1

1-19

Next Steps: Action PlanHow can you apply what you learned in this module to your workenvironment?

Turn to the Action Plan tab and find the worksheet for this module.Develop a list of actions to complete when you return to work.For each action (what), identify

Who needs to be involvedWhen you anticipate completing the action


Module 1

1-20

Next Steps: Action Plan (continued)Take a few minutes to think about what you have learned duringclass and review the questions below.

What are the project life-cycle phases called in your organization? Ifyou don't use a life-cycle framework, how might you go aboutintroducing it?Recall a recent project in which one of the project constraintschanged. What happened to the other constraints?Given the same situation and what you have just learned, howwould you now handle the change?How does your project fit within your organizations setup?Why are people skills so important for a project manager?


Module 2

2-1

Project Initiation


Module 2

2-2


Identify stakeholders and organizational influences on a project overits life cycleDescribe quantitative and qualitative methods for project selectionCreate SMART (specific, measurable, agreed-upon, realistic, time-constrained) objectivesDocument project requirements from identified needs


Module 2

2-3

The Project Life Cycle

Initiation PhaseConduct a high-level stakeholder assessment.Assess business needs and opportunities.Evaluate financial benefits and costs.Determine objectives and requirements.Identify the purpose/components of a project charter.Prepare requirements documentation.


Module 2

2-4

Influences on a ProjectProjects are influenced by

Key stakeholdersProject sponsorProject managerCustomerVendors andsuppliersOther stakeholders

Internal factorsSystemOrganizationalstructureCultureBusiness/organizationalneed

External factorsSocialEconomicEnvironmentalMarket demandRegulations


Module 2

2-5

Identifying Key StakeholdersWho are the stakeholders? Consider

Who gets the output from the project?Who provides the input?Who has oversight?Who has other related responsibilities?Who reaps the rewards?Who suffers the penalties?


Module 2

2-6

Stakeholder Identification and AssessmentTo determine the best approach to managing stakeholderexpectations throughout the whole project

Identify the key stakeholdersAnalyze them on

Interest in the projectPower to impact the projectEngagement to the project

Identify their needs and expectations


Module 2

2-7

Types of Stakeholders

Tool: Stakeholder Register (Simple)


Module 2

2-8

Understanding the Roles of GovernanceSenior management includes your leaders/managers:

Program managersDivision headsVice presidentsManaging partnersSponsorPortfolio manager

Usually, they use governance policies to select and initiate projects.As a project manager, think

What do they need from me?What do I need from them?How do they want my project governed?How do I escalate and resolve issues?How does my project align with and support my organizationstrategy?


Module 2

2-9

Case Study 2-1Good Answers Is Growing: Introducing YourNext Project


Module 2

2-10

Assess Business Needs and OpportunitiesProject concepts originate in response to

Product obsolescenceCompetitive forcesCustomer/client requirementsEmployee suggestionsProcess improvementBusiness transformationOrganizational changeRegulatory changes

Projects should support the organization's major business andstrategic goals.


Module 2

2-11

Project SelectionSelection practices are unique to each organization.Best practices encourage objectivity.Project selection is rarely purely quantitative.Selection should align with an organization's strategic intent.Selection is an integral part of an organization's balanced portfolio.


Module 2

2-12

Selection ToolsQualitative Factors Quantitative Factors

Stakeholder biasOrganizational fitRisk analysisScoring models

Benefit-cost ratio (BCR)Present value (PV)Net present value (NPV)Payback period


Module 2

2-13

Benefit-Cost Ratio (BCR)A comparative analysis of benefits to costs:

Example:Project A will charge $100,000 (cost) and generate $150,000 invalue (benefit).Project B will charge $100,000 (cost) and generate $160,000 invalue (benefit).

Which has a higher BCR?


Module 2

2-14

Present Value (PV)What is the value today of future cash flow?

RememberPV = present value of moneyFV = future valuei = interest rate (also known as internal discount rate or cost ofcapital)n = number of time periods from today


Module 2

2-15

Present Value (PV) (continued)Someone wants to repay your invoice of $1,000 by waiting until theend of next year (today is Jan. 1) and will pay you $1,250 at the endof next December.Lets assume your organizations cost of capital is 15%.

Is this a good deal?


Module 2

2-16

Net Present Value (NPV)To determine the value of an investment over timeAdd the PV from each year to determine the Total Benefit:

Use the following formula to determine NPV:


Module 2

2-17

Net Present Value (NPV) (continued)Which project is financially smarter?


Module 2

2-18

Payback PeriodHow long it will take to balance the cost of the project before turninga profit

Which has the shorter payback period?


Module 2

2-19

Exercise 2-1Net Present Value


Module 2

2-20

Project CharterA document issued by the project approver that authorizes theexistence of a project

Acts as the written agreement between senior management, theproject manager, and functional managersDelineates preliminary roles, responsibilities, authority, andaccountabilityDescribes project scope, including high-level requirements and risksDocuments business needs and a current understanding of theproduct service or resultDocuments a high-level milestone schedule and budgetSummarizes, as a minimum, the preliminary boundaries of a project

Tool: Project Charter


Module 2

2-21

The Right StartNeeds are formalized into

ObjectivesRequirements

BusinessUserFunctionalTechnical


Module 2

2-22

Needs AssessmentCollect requirements to define and document the needs of theproject.

Needs exist on various levels.Needs should be separated from wants.Projects are often built on conflicting needs.Customers often do not know, or understand, their needs.

Review the organizations methodologies and internalprocesses.

Needs are assessed passively through document review,questionnaires, surveys, analyses, and audits.A participative needs assessment can be done using interviews,focus groups, facilitative workshops, and prototypes.


Module 2

2-23

Formulating Good ObjectivesObjective

An understanding between someone who needs something andsomeone who can provide itExists at all levels (corporate, project, work team, specific task)


Module 2

2-24

Requirements and Specifications

Functional/NonfunctionalRequirements Technical SpecificationsWritten in business language Written in technical languageSolution agnostic Particular technology solutionPerformance characteristics Design specificationsCustomer/client view Build team viewProduct features & capabilities Sometimes called "specifications"

Key problems:Customers dictating the technical solutionTeam members rewriting customer requirements (outside of thechange process)

Tool: Requirements Checklist (Basic)


Module 2

2-25

Case Study 2-2Working with Customers to Develop GoodRequirements


Module 2

2-26

Requirements DocumentationProject requirements document (PRD)

Lists what the project is to doLinks the project requirements to business objectives

Business requirements document (BRD)Lists the TO-BE solutionMaps business goals and needs to solution scope andrequirements

Requirements work planDocuments how requirements are to be collectedIncorporated into the project management plan

Traceability matrixMaps each requirement through the life of the project

Tool: Traceability Matrix (Basic)


Module 2

2-27

Project Requirements DocumentA formal document used to communicate requirements for projectstakeholders

Documents the project objectives and identifies and prioritizesrequirementsSupports the business caseDrafted by the project team and approved by senior management/key stakeholdersProvides a basis for planning and designing the product/solution,including cost and time estimatesReduces the amount of rework on the project

Tool: Project Requirements


Module 2

2-28

Case Study 2-3Off to a Strong Start: Creating a ProjectRequirements Document


Module 2

2-29

From Initiation to PlanningCharter/PRD

Tools used (*key project management documents):Tool: Project Charter*Tool: Project Requirements*Tool: Requirements Checklist (Basic)Tool: Stakeholder Register (Simple)*Tool: Traceability Matrix


Module 2

2-30

Key MessagesInternal and external factors influence every project.Senior management usually selects and initiates a project.Qualitative methods and quantitative considerations enter intoproject selection.Projects originate for many reasons, from product obsolescence toclient requirements to individual innovation.Needs must be assessed, objectives set, and requirements definedso that specifications can be set.Customers define the requirements.The project team develops the technical specifications.


Module 2

2-31

Key Messages (continued)A project charter spells out the roles and responsibilities of theproject manager, key members of the project team, and input fromother organizational agencies.The requirements documentation comes in many forms: projectrequirements documents and business requirements documents.The PRD is the official document that describes the identifiedproject requirements.The requirements traceability maps the evolution of therequirements from the beginning to the end of the project.


Module 2

2-32





Module 2

2-33


In the past, what steps have you taken to ensure you have identifiedall of the stakeholders in your projects? What can you do to ensureyou do so in the future?In the past, have you been successful in identifying who seniormanagement is and what they need? Remember to ask yourself,What do they need from me and what do I need from them?Historically, how has your organization identified needs, writtengood objectives, and created both functional and technicalrequirements? What can be done in the future to improve how thisis done on your project?What uses can you see in your organization for a project charterand a PRD?


Module 3

3-1

Project Planning


Module 3

3-2


Assemble the core project team to plan a projectDocument the project scope in a scope statementDocument the project work in a WBSComplete and interpret work estimatesIdentify the appropriate resources necessary for a projectBuild a project scheduleEstimate and interpret project costsIdentify strategies for dealing with positive and negative risksExplain the basics for procuring external goods and servicesExplain the relevance of communications and quality planningComplete and interpret a project management planDefine and interpret baselines


Module 3

3-3


Planning PhaseBuild the core project team.Build a WBS.Estimate durations, costs, and resources.Develop the project schedule.Conduct risk management and risk response planning.Develop subsidiary management plans, including communicationand quality plans.Develop the project management plan.


Module 3

3-4

Core Project TeamA core group of key people should

Include a representative from the major business functionalareasNot be the whole teamNot be senior management

The core team should be self-directed and interactive.Project management tip: Get the right people with the right skillsand knowledge on the core team!


Module 3

3-5

The Project Management PlanBook of Plans: How best to manage this project; a place to documentkey project decisions

What life cycle is best to be used? Why?What level of detail is required on activities? Why?What tools/techniques are being used? Why?How will the selected processes

Be used?Actually work?Integrate with other processes?

How will the integrity on the baseline be maintained?What are the key management reviews to be accomplished? Whenand with what information?



Module 3

3-6

Scope ManagementScope: "The sum of the productsand services to be provided by theproject."1Scope statement: Describes indetail the projects deliverables andthe work necessary to complete thedeliverables

Scope was outlined in the projectsInitiation phase; now it is time to focus onwhat is specifically in scope and what isnot in scope.



Module 3

3-7

Work Breakdown Structure (WBS)The WBS is

A hierarchical structured grouping of project elements thatorganizes and defines the total scope of the project 1Each descending level is an increasingly detailed definition of aproject component for each descending level of the WBS.2


Module 3

3-8

Key WBS TermsControl Account Work Package Planning Package

Is typically abovethe work packagelevelIs the level formanagementreportingIs the level wherecosts are accruedand monitored

Is the level wherework is assignedand monitoredIs the basic levelfor addressingschedules, cost,and resourcesneededIs the lowest levelof the WBS

Is primarily usedwith rolling waveplanningIs below thecontrol accountIs a work packagewith known workcontent that hasnot been detailedor scheduled


Module 3

3-9

WBS Models (Graphical)


Module 3

3-10

WBS Models (Outline/Indented)1.0 Management Information Software System

1.1 Assess needs1.1.1 Measure state of current system

1.1.1.1 Identify components of current system1.1.1.2 Analyze components of current system

1.1.2 Determine future capability requirements1.1.2.1 Perform gap assessment1.1.2.2 Identify required changes

1.1.3 Develop alternative approaches1.1.3.1 Identify alternative approaches1.1.3.2 Analyze alternative approaches

1.2 Develop specification1.2.1 Develop preliminary software and hardwarespecifications1.2.2 Develop detailed software specifications


Module 3

3-11

DiscussionWhat Are Some Important Benefits and Usesof a WBS?


Module 3

3-12

Building a Work Breakdown Structure (WBS)As a team1. Understand the purpose of your project2. Review existing templates, WBSs from past projects, and historical

records such as lessons learned3. Establish the major breakout segments of the work4. Break down these large pieces into the next level of components5. Break down each component into subcomponents6. Continue down to the level where you will assign and monitor

project work7. Hold a review session with the core project team, client, and other

key stakeholders to gain buy-in and identify missing items8. Prepare the WBS dictionary

Tool: WBS Checklist


Module 3

3-13

WBS DictionaryIs not a book of terms and definitionsProvides detailed information on those work packages that needfurther clarificationCaptures critical information about the activity such as, but notlimited to

WBS task name and numberTask description including deliverables to be produced anddeliverables scheduleResource requirements and assignmentsPreceding/subsequent activitiesCost estimatesQuality requirements

Contains varying content, depending on the need for information

Tool: WBS Dictionary


Module 3

3-14

Case Study 3-1Creating the Project's WBS


Module 3

3-15

Translating the WBS into the ScheduleThe WBS identifies the work to be donein work packages.Work packages are further broken into activities that specify thework necessary to complete the work packages.Activities are used as a basis to quantify estimates of

DurationCostResourcesSchedule dependencies



Module 3

3-16

EstimatingForecasting the cost, schedule, and resource requirements neededto produce a specific deliverable1

Estimating is a deliberate process:The quality of the estimate leads is directly proportional to thequality of the project schedule and budget.


Module 3

3-17

Good Estimating PracticesAcknowledge the level of accuracy:

Estimates can and should be done at varied levels ofaccuracy.Communicate the level of accuracy with the estimate.

Get input from many sources:In-house sourcesOutside sourcesProfessional organizations

Document your assumptions.


Module 3

3-18

Estimating TechniquesSTETParametricHistoricalThree-pointPERT (Program Evaluation and ReviewTechnique)Wideband Delphi


Module 3

3-19

Three-Point Estimating Formulas

Where:O = optimistic P = pessimistic ML = most likely E = expected


Module 3

3-20

Creating the ScheduleEstimates the time duration to complete the projectEstablishes relationships between various work packagesBenefits from the use of tools only when accurate information isused



Module 3

3-21

Considerations for Estimating Activity DurationEffort: "Number of labor units required to complete an activity"1Work period: Unit of time when resources are generally availableto perform work (8 hours = 1 day)Working time: "Period of time in which actual work on a project canbe, and should be, completed"2 (24 hours effort = 3 workdays)Elapsed time: Accounts for all calendar time (weekends, holidays,and breaks) and not just time spent on a project (24 hours = 1elapsed day)Availability: The time that a resource is present, ready for, andcapable of performing the workProductivity: Measure of efficiency of a resource in performingworkInterruptible duration: Work time that is not contiguous


Module 3

3-22

Common Scheduling ToolsNetwork diagram

Schematic display of the logic relationships of projectactivitiesBest for analysis

Gantt chartEasiest to make and understandAppropriate for smaller projects

Project calendarHigh-level detailsQuick public way to show project responsibilities

MilestonesSummary-level scheduling showing significant events thatinclude completion of major deliverablesConsume no resources or time


Module 3

3-23

Network DiagramsThe chronological relationship between scheduled activities isshown.Activities are represented by boxes.Dependencies are represented by arrows.Multiple arrows (dependencies) are possible.


Module 3

3-24

Transforming a WBS into a Network DiagramWork package: Install new building fire alarm system


Module 3

3-25

Uses of the Network Diagram

Step Action ResultForward Pass By path, start at the beginning, add

all durations togetherDuration of theproject

Backward Pass By path, start at the end, subtractall durations

Float

Path Analysis By path, review each path for theleast amount of float

Critical path


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3-26

Forward Pass


Module 3

3-27

Backward Pass



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3-28

FloatAmount of time that an activity may be delayed from its early start withoutdelaying the project end date. Derived by subtracting the early start fromthe late start or early finish from the late finish; it may change as theproject progresses and as changes are made to the project plan.1

Calculated from thenetwork diagram aftercompleting a backwardpassIndicates the amount offlexibility the projectmanager has to adjustthe timing of a particularactivityAlso called slack andtotal float


Module 3

3-29

Determining Float


Module 3

3-30

Completed Network Diagram Showing CriticalPath


Module 3

3-31

Network AnalysisAnalysis of the network reveals the

Duration of the projectFloatCritical path

Longest of all paths through the projectShortest time to complete the projectPath with the least float/slack time


Module 3

3-32

Gantt ChartsA Gantt chart

Is a graphical representation of the project schedule that shows howthe work flows over timeShows activity start and end dates and durations


Module 3

3-33

Project Calendar (Month 4)The project calendar

Is a visual representation of what work needs to happen on acertain dayShows days, work hours, and weekends/holidays


Module 3

3-34

Milestone ChartsMilestones

Activities of zero durationTake no timeConsume no resources

Record significant events or deliverablesMajor project happenings (component X complete)Funding points (30% of budget expended)Key dates (Start of Sochi Winter OlympicsFebruary 7,2014)

Serve as reminders to check on overall project status at key points


Module 3

3-35

Case Study 3-2Network Diagramming


Module 3

3-36

Estimating Costs to Determining BudgetHow much will the project cost?Inputs:

Scope baselineWBSWBS dictionary

Project scheduleRoles and ResponsibilitiesRisk register

Outputs:Cost estimatesDuration (time) estimatesBasis of estimates

Documentation on how estimates were determinedDocumented assumptions and constraintsThe precision range of estimates and confidence level


Module 3

3-37

Three Levels of Estimates


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3-38

Cost ComponentsDirect Costs

LaborInternalContract

Materials and equipmentOther direct costs

FeesTravelIncidentals

Indirect Costs (Overhead)General administrativeHeadquarter (HQ) expenses

Fringe benefitsDepreciation

Marketing and salesResearch and development


Module 3

3-39

Cumulative Cost Curve


Module 3

3-40

Resource PlanningPlan for the resources you need to do the project:

PeopleSkillsEquipmentFacilitiesMaterials


Module 3

3-41

Human Resource PlanningHow will I get the best resources and use who I have as best I can?

Planning for the project resourcesAcquiring project resourcesDeveloping, maintaining, and managing project resourcesReplenishing project resources as needed


Module 3

3-42

Resource Planning Tools and TechniquesRoles and responsibilitiesResource Gantt chartResource loading tableResource loading histogram

Resource leveling


Module 3

3-43

Roles and Responsibilities MatrixThe roles and responsibilities matrix identifies the appropriateskill/person for each task and his or her role on that specific task.

Tool: Roles and Responsibilities Matrix


Module 3

3-44

Resource Gantt ChartHorizontal bar chart showing duration of assignments for eachresource and activity


Module 3

3-45

Resource Loading TableStructure that shows the resource allocation by time period


Module 3

3-46

Resource Loading HistogramHow available resources can be allocated over the life of the project


Module 3

3-47

Resource LevelingUsed to smooth the peaks and valleys of planned resources over aperiod of time

Limit of no more than seven people involved



Module 3

3-48

RiskRisk event

"Discrete occurrence that may affect a project, positively ornegatively."1Probability of the risk event occurringImpact (consequence) of that risk events occurrence

Based on the assessment of probability and impact, you shouldprioritize the risk by

Best utilizing the available resourcesAddressing the highest-impacting events first, then addressthe remaining lower-impacting events as time and resourcesallow



Module 3

3-49

Risk Management Planning"The procedures to be used to manage risk during the life of aproject."1

Risks are threats or opportunities.Risk planning is an integral part of project planning.Individuals are assigned responsibility for managing certain areas ofrisk

Risk management consists of eight processes:Plan risk managementplanningIdentify risksAnalyze risks quantitativelyand qualitativelyPrioritize risks

Plan risk responsesExecute risk responses asappropriateEvaluate and reidentifyDocument options andoutcomes

Tool: Risk Register


Module 3

3-50

ESIs Risk Management ModelThe circle below illustrates the 8 steps of ESIs risk managementmodel.


Module 3

3-51

Response Strategies for ThreatsThreats

Accept: Prepare for and deal with a risk's consequences, eitheractively (create a contingency fund) or passively (do nothing).Mitigate: Reduce the probability and/or impact of a threat to anacceptable threshold.Transfer: Shift a threat's consequences to a third party.Avoid: Eliminate the threat, usually by eliminating its potentialcause.


Module 3

3-52

Response Strategies for OpportunitiesOpportunities

Accept: Prepare for and deal with a risk's consequences, eitheractively (create a contingency fund) or passively (do nothing).Enhance: Modify the potential of an opportunity by increasingprobability and/or positive impact and by identifying and maximizingkey drivers.Exploit: Ensure that the opportunity is realized; eliminate theuncertainty associated with a particular risk by making theopportunity definitely happen.Share: Allocate ownership to a third party best able to capture theopportunity.


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3-53

Procurement PlanningGoing outside the team to purchase or acquire

MaterialsServicesPeople

The project manager becomes the customerSelecting the contract typePreparing procurement documentsSelecting the contractor (vendor)


Module 3

3-54

Selecting a Contract Type


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3-55

Preparing Procurement DocumentsProcurement documents are used to solicit proposals from sellers. Someof the most common ones are

Request for information (RFI)Request for proposal (RFP)Request for quotation (RFQ)


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Selecting a Contractor*Evaluate and choose the best proposal or bid:

TechnicalBusiness fitCost

Negotiate and award the contract.*Also may be referred to as seller or contractor.


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3-57

Communication PlanningHow will information flow during your project?

Who needs to know what?How will you tell them?How urgently and how often?What do you make part of a permanentrecord and how?What technology will be used?Who authorizes the release of classifiedinformation?What are the escalation processes?What are the constraints oncommunications?

Tool: Communication PlanDetailed



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3-58

Planning for Project QualityThe process of identifying quality requirements and/or standards for theproject and product, and documenting how the project will demonstratecompliance.1The project manager and team must

Plan for quality, perform quality assurance, and perform qualitycontrolClarify quality policy duration

Link to customer's policyLink to organization's strategy

Determine project standards and metrics for tasks within standardsDocument how and when metrics will be measuredDocument how project quality will integrate with product/servicescore

Tool: Quality Plan


Module 3

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Project Management PlanThe project management plan provides the road map to theImplementation phase of a project.

Tool: Project Plan OutlineTypical


Module 3

3-60

Case Study 3-3Planning for Success: Building the ProjectManagement Plan



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3-61

Project BaselinesWhat: "Project management frame of reference established basedon the detailed project plan and incorporating the project's cost,schedule, and quality objectives to provide a basis for measuringprogress, comparing planned and actual events and expenditure,and identifying and executing changes to the project's scope ofwork."1

ScopeCostScheduleQuality

Why: To define a standard against which project success can bejudgedWhen: Upon approval and endorsement of all baseline components


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3-62

Who Uses Baselines?CustomerProject managerManagementAccountingProject team


Module 3

3-63

From Planning to Implementation: The ProjectPlan

Tools used (*key project management documents):WBS ChecklistWBS DictionaryRoles and Responsibilities MatrixRisk Register*Communication PlanDetailedQuality PlanProject Plan OutlineTypical*


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Key MessagesThe core project team is involved in project planning.Understanding the scope is key to project planning.A WBS is a hierarchical breakdown of the scope in order to betterplan for its completion.Although a WBS has different formats, levels of detail, and ways ofbeing created, the work package is always the bottommost level.Work packages break down into activities. It is these activities thatare used to build the network diagram that leads to the projectschedule.A WBS dictionary provides important working-level informationabout each work package.Schedule planning involves determining the timing of the project,including critical path and float, and may be presented in manyformats.


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Key Messages (continued)Cost planning involves determining the direct costs that the workpackages required as well as indirect costs (overhead) allocated tothe project.Resource planning covers people, materials, facilities, and otherresources.Risks (both opportunities and threats) must be identified, analyzed,prioritized, and planned for through the appropriate responsestrategy.Procurement planning involves deciding whether to procure outsideservices and how to choose which outside entity to use.Communication and quality round out the project managersplanning processes.Baselines are used by stakeholders to measure how the project isdoing in reference to cost, scope, and schedule baseline.All these processes come together in the project management plan.


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Module 3

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What form of WBS does your organization use?Why is having a WBS for a project important?Why is determining the critical path and float so important to yourproject?How can your organization benefit by having each project produce aresource/responsibility matrix?What is your organizations risk planning process? Is it effective?What can you do to strengthen or enhance it?What is your organizations procurement planning process? Is iteffective?What can you do to strengthen or enhance it?


Module 4

4-1

Project Implementation


Module 4

4-2


Assess and monitor project performance based on cost, schedule,scope, and quality baselines as well as stakeholder expectationsand team performanceDescribe methods for managing and controlling change for a projectAddress risks as they occurDescribe characteristics of an effective team, their roles andresponsibilities, and possible organizational team structuresAlign project team performance with stakeholder expectationsComplete a performance report


Module 4

4-3


Implementation PhaseExecute

Develop the product or serviceMonitor

Assess, monitor, and report project performanceDevelop, monitor, and support the project team

ControlManage changeManage riskManage stakeholder expectations


Module 4

4-4

Assessing Project PerformanceMonitoring

Continuous, ongoingUsed by project team to adjust the project

EvaluatingPeriodicUsed by senior management and customers to adjust the projectThrough status reports



Module 4

4-5

Monitoring Project PerformanceCompare against baselines:

ScopeCost performanceSchedule

Identify variance:Is the difference between aplan and actual time, cost, orperformance1

Responds as appropriateAvailable techniques

Trend analysisCritical path methodCritical chain methodEarned value management (EVM)


Module 4

4-6

Earned Value Management (EVM)An objective look at project statusSchedule and cost variancesAssessing schedule, cost, and work statusSingle system to integrate multiple assessments into a singlereporting structure


Module 4

4-7

How Is the Project Doing?


Module 4

4-8

EVM Terminology


Module 4

4-9

Variances


Module 4

4-10

Variances (continued)

Key EVM Tools and TechniquesCost Variance Cost Performance IndexCV = EV AC CPI = EV / ACSchedule Variance Schedule Performance IndexSV = EV PV SPI = EV / PVBudget at Completion Estimate at CompletionBAC = Sum of all PVs EAC = BAC / CPI or BAC-EV


Module 4

4-11

Interpreting Earned Value Management (EVM)Calculations

Generally good variance:Ahead of scheduleCosts under budgetPositive values for costvariance (CV) and schedulevariance (SV)Ratios greater than 1 for costperformance index (CPI) andschedule performance index(SPI)

Generally bad variance:Behind scheduleCosts over budgetNegative values for CV and SVRatios less than 1 for CPI andSPI


Module 4

4-12

Exercise 4-1Earned Value Management Calculations


Module 4

4-13

Assessing Project StatusTimeCostScopeResourcesQuality


Module 4

4-14

Indicators That Corrective Action Is NeededSchedule slippage for a specific task on the critical path or for theproject as a wholeOver budget on a specific task on the critical path or for the projectas a wholeInability to resolve problems promptlyInsufficient or high turnover in resourcesUnmanaged changes in scopeQuality problems resulting in excessive reworkChanges in customer or user requirements


Module 4

4-15

Corrective ActionsChange the task relationships (fast-tracking).Increase the resources (crashing).Redistribute the resources.Change the project solution design.Use improved technology.Change the contract scope.Change suppliers.Renegotiate the terms.Use subcontractors.Update the estimates.


Module 4

4-16

Ways to Speed Up SchedulesCrashing Fast-Tracking

Accelerates projectcompletion (to fightschedule slippage) byadding resources to criticalpath activitiesAnticipates increasedproject costsSelects activities that willcost the least to crash

Carries out activities inparallel on the critical pathto accelerate the scheduleIncreases project riskRequires greater level ofcontrol and coordination


Module 4

4-17

DiscussionBased on the Network Diagram You Createdin Case Study 3-2, How Would You ApplyCrashing and Fast-Tracking Techniques?


Module 4

4-18

Performance ReportingNo matter the form, no matter the frequency, include these threecomponents:

What/how you have done since the last report (status)What you anticipate in the near future (forecast)Other key information the reader needs to know

The performance report needs to be constructed, updated, and distributedin accordance with the communication plan.

Tool: Project Status Summary Report


Module 4

4-19

Case Study 4-1How Are We Doing? Reporting ProjectPerformance


Module 4

4-20

Project EvaluationPeriodic project evaluations

Encourage timely adjustmentFacilitate midcourse corrections instead of waiting until theendHelp with stakeholder communication

Outcomes of evaluation includeContinue as plannedPerform minor redirectionPerform major redirectionTerminate earlyShelve or put project on temporary hold


Module 4

4-21

Sunk CostsHave already gone into the project andcannot be recoveredShould not affect decisions about thecontinuation of the project


Module 4

4-22

Managing ChangeChange happens for many reasons and in many forms:

CustomerTeamOrganizational managementEnvironmentProduct obsolescenceFunding changesTechnology


Module 4

4-23

Change Control Board (CCB) An organized systematic approach is helpful in managing change:

Tool: Change Request



Module 4

4-24

Configuration ManagementA configuration management system is a process used to apply technicaland administrative direction to

Document the functional and physical characteristics of an item orsystemControl any changes to such characteristicsRecord and report each change and its implementation statusSupport the audit of the products, results, or components to verifyconformance to requirements1


Module 4

4-25

Managing RiskBe proactive.Monitor earlier assumptions.Monitor changes in organizational risk tolerance over the course ofthe project.Watch for risk triggers and risk symptoms.Implement responses, as needed, from your risk management plan.Evaluate the effectiveness of the response and modify as needed.Document what you do.Reidentify and reassess risks again.


Module 4

4-26

QualityQuality assurance (QA) includes all the activities and proceduresundertaken to ensure that quality is achieved.

What are the steps to performing a QA?What characteristics should each QA activity include?What are the most common QA tools?

Quality control (QC) includes all the activities and proceduresneeded to analyze performance and identify and recommendchanges.

What are the steps to QC?What are the most common QC tools?

Quality is planned into a project, not inspected in.



Module 4

4-27

Developing the Project Team"A project team is a group with complementary skills, a common purpose,shared goals, and mutual accountability who share responsibility foraccomplishing project goals and who report to the project manager."1


Module 4

4-28

Characteristics of an Effective TeamRight sizeCommon purposeCommon approachComplementary skillsClear set of objectivesMutually accountable


Module 4

4-29

Acquiring Project Team MembersPreassignment by senior managementSelected by project manager via negotiation

Experience and skillsInterestPersonal traitsAvailabilityProductivityWork styleAbility to work with others in a team environment

Buy/outsource


Module 4

4-30

Project Team StructuresMirror imageSpecialtyDirectiveSelf-managed

With todays technology, virtual teams can easily incorporate theseteam structures.


Module 4

4-31

Virtual Teams

In virtual teams, communication is critical. Set aside the time toestablish

Clear expectationsProtocols for resolving conflictDecision-making proceduresClear communication links and channels


Module 4

4-32

Types of Teams


Module 4

4-33

How to Form a Successful TeamDefine roles and responsibilities for the project manager and theteam members.Delegate and share project management responsibilities.Anticipate and constructively channel conflict.Communicate the project scope and its alignment with businessobjectives.Allow and encourage diversity.Work toward satisfying closure on project tasks.Motivate the team and support team identity.


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4-34

Managing the Project TeamDuring development of the product/system, the project managermust monitor and support the team.

Hold regular meetings with the team to identify and resolve anydevelopment problems.Ensure that the team is developing the product/system according tothe client's business requirements and the design specifications.Provide the team with supplemental resources, if necessary, tokeep the project on track.Manage conflicts.Reward team members.


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4-35

Managing Stakeholder Expectations andEngagements

Building and maintaining a relationship with stakeholders to satisfy theirneeds and to be prepared to address project issues as they occur.Managing expectations

Is anticipating the stakeholders reaction to any component of theprojectIncreases the probability of project successDecreases the risk that the project will fail to meet goals andobjectivesIs the responsibility of the project manager


Module 4

4-36

Techniques for Managing ExpectationsInterpersonal Skills Management Skills

Active listeningCommunication skillsEmpathyConflict resolutionTrust buildingCoaching others throughchangeCritical thinking

Negotiation skillsPresentation skillsFacilitation skillsProblem solvingDecision makingWriting skillsPublic speaking



Module 4

4-37

Transition to Customer Acceptance"Determining the correctness of the final product, system, or systemcomponent with respect to the users requirements."1

This means askingDid you do what you said you were going to do?Did you gain agreement on the scope activities anddeliverables having been completed?

Two stepsDialogue with your team and check the WBS.Dialogue with the customer.


Module 4

4-38

From Implementation to Closeout

Tools used (*key project management documents):Project Status Summary Report*Change Request*


Module 4

4-39

Key MessagesMonitoring and controlling is ongoing and used by the team;evaluating is periodic and used by senior management.EVM and trend variance analysis shows the project manager thedifference between what was planned and what has occurred at acertain point in time.Performance reports should be prepared differently for differentaudiences.Risk response plans can be used to manage risks once they occur.Change can be managed with a well-designed change managementsystem.The project manager must develop, manage, and support theproject team for it to perform well.


Module 4

4-40

Key Messages (continued)Conflict is inevitable and must be managed.Validate scope against agreed-upon requirements.The probability of project success increases when activelymanaging stakeholders expectations.Open lines of communication and good interpersonal skills arebeneficial in managing stakeholders expectations.


Module 4

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Module 4

4-42


Recall a recent project in which conflict was not dealt with efficiently.What were the ramifications to the project?Given the same situation and what you have just learned, howwould you handle the conflict?What type of team structure does your organization generally use?Is it effective?What can you do to strengthen or enhance it?How would a customers experience be changed if stakeholderexpectations were managed from the beginning of a project?What type of performance reporting do you currently do? Whatmight you do differently in the future?


Module 5

5-1

Project Closeout


Module 5

5-2


Identify key tasks required for proper project or phase closeoutExplain the importance of documenting and communicating lessonslearned for the project


Module 5

5-3


Closeout PhaseObtain final customer acceptance.Provide the customer with relevant project information.Recognize, reward, and reassign project team members.Terminate outstanding purchase orders from subcontractors.Prepare the final payment.Dispose materials and supplies.Prepare final cost and schedule reports.Document lessons learned.Celebrate project successes.


Module 5

5-4

Closing Out a Project or PhaseThe process of finalizing all activities across all phases of the projectmanagement process groups to formally complete the project or phase

Tool: Project Closeout ChecklistTool: Closeout Procedures



Module 5

5-5

Getting Customer AcceptanceDocumented sign-off by the customer that all project deliverables satisfyrequirements.1


Module 5

5-6

Guidelines for Project CloseoutEnsure that the project Closeout phase is formally acknowledged onthe project schedule.Review the closeout steps listed in the WBS for previous projects.Prepare a detailed closeout plan (plan for closeout in the WBS).Continue to preserve the team's identity by stressing the importanceof its efforts.Continue to conduct periodic status meetings until all projectactivities have been completed.Visit remote sites if the project team is physically dispersed.


Module 5

5-7

Guidelines for Project Closeout (continued)Provide performance feedback to functional managers for all teammembers.Schedule a formal closeout review or project audit.Review and document lessons learned to help improve performanceon future projects.Prepare a final project report and communicate it to stakeholders.Use a project closeout checklist.Celebrate success.


Module 5

5-8

Project Closeout IssuesProject TeamLoss of interest in remaining tasksFear of no future workDissatisfaction with next assignmentLoss of project-derived motivationLoss of team identityDiversion of effortReassignment of personnel


Module 5

5-9

Project Closeout IssuesClient/CustomerChange in attitudeLoss of interest in projectChanges in personnel assigned to projectUnavailability of key personnelUp-to-date documentationResistance to solution ownershipResistance to changeScope creepKnowledge transfer


Module 5

5-10

Procurement and Project or Phase CloseoutProcurement Closeout

Make sure all contracts have beensatisfied and vendors have beenpaid.Collect, and have available forreview, product/systemdocumentation, contractdocumentation, and other projectrecords.Archive contract documentation.

Project or Phase CloseoutPrepare project andcontract closeoutdocumentation:

Lessons learnedFinal project reportProcurement audit

Archive projectdocumentation.

Tool: Final Project Report Outline


Module 5

5-11

Lessons LearnedWhat did we learn on this project so that the next project will runmore smoothly?

TimelyRelevantIn contextDetailedFiled and accessible

Tool: Lessons Learned


Module 5

5-12

People-Oriented Closeout ActivitiesSite/equipment/materials closeoutPersonal closeoutPublic relations closeoutProject team closeoutCelebration


Module 5

5-13

Closeout

Tools used (*key project management documents):Project Closeout ChecklistCloseout Procedures*Lessons Learned*Final Project Report Outline


Module 5

5-14

Key MessagesPlan for closeout of the WBS and schedule.Procurement and project or phase closeout ensure that all projectrequirements are met.Lessons learned impart valuable knowledge to your organization foruse in future work.Close out with the team, stakeholders, and yourself, including theappropriate recognition and celebration of your efforts.


Module 5

5-15





Module 5

5-16


Does your organization typically plan closeout into projects?Why is it important to plan for closeout?How can you improve your scope verification and customeracceptance?How well does your organization document and share lessonslearned?Is it effective?What can you do to strengthen or enhance it?


Module 5

5-17

MyESI and the learning ModelMyESI is the ESI online training portal.

https://esi-intl.com/myesiView your course history, print a transcript, andregister for new courses.

Through MyESI you can accessPrecourse activities (available upon registration), which include thebest practices survey, knowledge assessment, and focus questionsPostcourse resources and activities, which include

Course-specific action and development plans and coursetools and templates, which are available the day classconcludesThe best practices survey, knowledge assessment, andtargeted online review content, which are generally available45 days after the class concludes

pm, managing projects course slides

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