PROJECT MANAGEMENT –PRINCIPLES AND PROCESS CHARLES COTTER Ph.D. candidate, MBA, B.A (Hons), B.A

www.slideshare.net/CharlesCotter

BMW, ROSSLYN

27-29 SEPTEMBER 2017

3-DAY, TRAINING PROGRAMME

OVERVIEW• Introduction

• Defining the fundamental concepts

• Project Management methodologies – PMBOK and PRINCE2

• Diagnosis and Evaluation of current BMW Project Management processes and practices

• Applying the 4-step generic, Project Management life-cycle/process

Project Start-up and Initiation

Project Planning (and Scheduling)

Project Implementation (Monitoring and Evaluation)

Project Closure

• Summary and Closing

INTRODUCTORY ACTIVITY• Individual Activity:

• Complete the statement by inserting one (1) word. In order tobe an effective Project Manager at BMW, I need to/tobe…………………………………….(1 word)

• Find other learners with the same word as you. Jot thesedown on the flip-chart.

• Each learner will be given the opportunity to elaborate ontheir own word association.

DEFINING THE FUNDAMENTAL PM

CONCEPTS

DEFINING THE FUNDAMENTAL PM

CONCEPTS

• Project

• Project characteristics

• Project Management

• The Triple Constraint

DEFINING PROJECTS• A project is a temporary and one-time endeavour undertaken

to create a unique product or service that brings aboutbeneficial change or added value

• A project is a temporary piece of work with a finite startingand ending date undertaken to create a unique product orservice

• A project is a carefully defined set of activities that useresources to meet the pre-defined objectives

• Projects bring form or function to ideas or needs.

PROJECT CHARACTERISTICS

• Temporary

• Unique

• Involve new processes

• Undertaken to achieve a particular aim (deliverables)

• Value-adding driver of change and improvement

DEFINING PROJECT MANAGEMENT• Project management is the application of knowledge, skills,

tools and techniques to a broad range of activities in order tomeet the requirements of the particular project.

• Project management is concerned with the overall planningand co-ordination of a project from inception to completionaimed at meeting the client's requirements and ensuringcompletion on time, within cost and to the required qualitystandards.

• These three (3) project management variables as often referredto as the eternal triangle of project management.

PROJECT MANAGEMENT ETERNAL

TRIANGLE

DEFINING PROJECT SUCCESS

CRITERIA• #1: Projects completed on time

• #2: Projects completed within budget

• #3: Projects completed according to quality standards and performance measures

• #4: Projects completed within defined scope

• #5: Projects completed by achieving all deliverables

• #6: Projects completed to the satisfaction of all key stakeholders and beneficiaries

LEARNING ACTIVITY 1

• Evaluate and rate your current BMWproject management practices againstthe six (6) project success criteria.Identify performance gaps.Recommend project improvementinterventions

• From your experience as a projectmanager/team member at BMW,identify the five most common causesof project failure. For each of these 5causes, identify an improvementstrategy and/or solution to ensure ahigher project success rate.

CAUSES OF PROJECT FAILURE

(DISTRESSED PROJECTS)• The wrong business requirements have been addressed

• It's not possible to deliver on the original business case

• Poor project governance and management

• Project managers don't usually have any influence over who their project sponsor is

• Poor project execution/implementation

• People lose focus on the project's benefits

• The environment changes

ILLUSTRATION: PMBOK PROJECT

MANAGEMENT LIFE-CYCLE

ILLUSTRATION: PRINCE2

PROCESS

GENERIC PROJECT MANAGEMENT

LIFE-CYCLE

• Phase 1: Project Start-up and Initiation

• Phase 2: Project Planning (and Scheduling)

• Phase 3: Project Implementation (Monitoring, Review and Evaluation)

• Phase 4: Project Closure

PHASE ONE: PROJECT START-UP/INITIATION –

PROCESS STEPS/FLOW

• Identification of a business problem, opportunity and/or need

• Generation of prospective project proposal/s

• Evaluation and building of a business case for the prospective project proposal/s

• Selection and approval of most value-adding project/s

• Compilation of Terms of Reference (ToR) document, defining and scoping of the project

IDENTIFICATION OF PROBLEM, NEED OF

OPPORTUNITY • Conduct an Environmental scan:

Micro

Market

Stakeholder Analysis

Macro

• Perform a SWOT Analysis:

Strengths

Weaknesses

Resources

Capabilities

Capacity

Opportunities

Threats

PROJECT EVALUATION

EVALUATION OF PROJECT

PROPOSAL/S• Financial and numerical metrics:

Payback period

Return-on-Investment (ROI)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Cost-Benefit Analysis

COST-BENEFIT ANALYSIS

PROJECT EVALUATION CRITERIA

• Viability

• Feasibility

• Sustainability

Profits

People

Planet

SUSTAINABILITY

(TRIPLE BOTTOM LINE)

PURPOSE OF THE ToR• Defines your project and its scope

• Justifies the project

• Secures funding for the project, if necessary

• Defines the roles and responsibilities of project participants

• Gives people the information they need to be productive and effective right from the start

CONTENTS OF A ToR• Section 1: What?

Background Project Definition

• Section 2: Why?

Project Business Case

• Section 3: Who?

Project Roles and Responsibilities

• Section 4: How and When?

Defined milestones and target dates Initial/head-line project plan

LEARNING ACTIVITY 2

• By referring to the process flowchart, initiate a BMW project ofyour choice.

• By referring to the 4 Sections of aToR document, compile acomprehensive ToR document(project definition/scoping)

• Present your ToR to the facilitatorand get authorization to proceedwith Stage 2: Planning andScheduling.

PHASE TWO: PROJECT PLANNING

AND SCHEDULING

PROJECT PLANNING• Project planning defines project activities that will be

performed, the deliverables and describes how these activitieswill be accomplished and managed

• A Project Plan sets out the phases, activities and tasks neededto deliver a project

• The timeframes required to deliver the project, along with theresources and milestones are also shown in the Project Plan

• The project plan establishes a baseline which identifies anddocuments project scope, tasks, schedules, cost, risk, qualityand staffing needs throughout the entire project life-cycle

COMPONENTS OF PROJECT

PLANNING• Resource plan

• Financial plan (project budget)

• Quality plan

• Risk management plan

• Communications plan

• Procurement plan

PROJECT PLANNING – 5W’S + 1H

PROJECT ACTION PLAN TEMPLATE

• Objective (What?)

• Tasks (How?)

• Responsible (Who?)

• Time (When?)

• KPI (Weight?)

PROJECT ACTION PLAN TEMPLATE

PROJECT BUDGET

LEARNING ACTIVITY 3

• By referring to the LearningActivity 2 (selected andapproved project), compile aProject Baseline Plan. Use theprovided Project Action Plantemplate.

• Compile a project FinancialPlan (budget) for the selected,BMW project.

PROJECT SCHEDULING• Project scheduling means detailing what activities have to be

done, the order (sequence) in which they are to be completed,who is to do each, and how they are to be completed.

• Project scheduling entails the planning and plotting thefollowing project variables:

Tasks (e.g. Work Breakdown Structure)

Time (e.g. Gantt chart and PERT/network diagramme)

Resources (e.g. Resource Allocation Matrix and Resource Histogram)

Responsibility (e.g. Load Chart and Responsibility Matrix)

WORK BREAKDOWN STRUCTURE

(WBS)• A Work Breakdown Structure (WBS) is a detailed list of all of the things

that need to be delivered and the activities that need to be carried out tocomplete the project.

• A WBS is a chart in which the critical work elements, called tasks, of aproject are illustrated to portray their relationships to each other and to theproject as a whole.

• It's represented as a tree-structure, with each deliverable or activity brokendown into further components.

• When completed, a well-structured WBS resembles a flowchart in which allelements are logically connected, redundancy is avoided and no criticalelements are left out.

• The graphical nature of the WBS can help a project manager predictoutcomes based on various scenarios, which can ensure that optimumdecisions are made about whether or not to adopt suggested procedures orchanges.

ILLUSTRATION: WBS

GANTT CHARTS

(SCHEDULING TIME)• Project Managers need to estimate time accurately if they’re going to

deliver their project on time (and on budget)

• Without this skill, PM’s won't know how long your project will take,and won't be able to get commitment from the people required tohelp achieve the project objectives

• Gantt Charts are useful tools for analyzing and planning morecomplex projects. It plots scheduled projects tasks/activities on atime-line.

• When a project is under way, Gantt Charts help PM’s to monitorwhether the project is on schedule. If it is not, it allows PM’s topinpoint the remedial action necessary to put it back on schedule.

ILLUSTRATION: GANTT CHART

(HUMAN) RESOURCES HISTOGRAM

RESPONSIBILITY ASSIGNMENT

MATRIX (RAM)

LEARNING ACTIVITY 4

• By referring to the Learning Activity 3project, schedule the BMW project bymeans of any two (2) of the followingscheduling tools:

Work Breakdown Structure (WBS)

Gantt Chart

Resource histogram

RAM

• Graphically illustrate and present yourproject schedule to the facilitator.

PROJECT RISK MATRIX

PROJECT RISK RESPONSE

STRATEGIES

LEARNING ACTIVITY 5

• Within the context ofyour project, applythe 4-step RiskManagementProcess.

PHASE THREE: PROJECT

IMPLEMENTATION

PHASE THREE: PROJECT

IMPLEMENTATION• The most important issue in this phase is to ensure project

activities are properly executed and controlled

• This phase involves the execution of each activity and tasklisted in the project plan.

• While the activities and tasks are being executed, a series ofproject management and quality assurance processes areundertaken by the Project Manager to observe, monitor,analyze and control the project deliverables to ensure that thekey project objectives are achieved.

PROJECT IMPLEMENTATION ACTIONS• Resource mobilization and deployment

• Organizing and delegating tasks

• Performance Management

Project (time, cost, quality and scope)

Project team members

Contractors and sub-contractors (SLA)

Earned Value Management

• Leading and motivating project team

PROJECT IMPLEMENTATION ACTIONS• Problem-solving/Trouble-shooting

• Conflict Management/Resolution

• Change and Scope Management

• Communication

Project (progress/status) meetings

Stakeholder engagement and liaising

POWER-INTEREST MATRIX

PROJECT CONTROL• The purpose of the control process is to ensure that the project

work can be carried out as scheduled.

• Checkpoints are held throughout the project at weeklyintervals and provide the mechanism for monitoring andcontrolling the day to day work on the project.

• Performance information is captured and plans are updatedprior to the Project Status meeting. This enables the meeting toconcentrate on determining what to do next.

• Defining the control procedures includes the setting oftolerance levels for project performance.

ILLUSTRATION: PROJECT CONTROL

PROCESS

WHOLE BRAINING THINKING

• Blue – Logical and Rational (upper left hemisphere)

• Green – Organized and Planned (lower left hemisphere)

• Yellow – Big Picture and Creative (upper right hemisphere)

• Red – Interpersonal feelings and Intuitive (lower right hemisphere)

WHOLE BRAIN PROBLEM-SOLVING

PROCESS• Step 1: Problem identification, analysis and definition

• Step 2: Search for information and generate alternative solutions

• Step 3: Evaluate alternative solutions

• Step 4: Select the most appropriate solution

• Step 5: Implement the appropriate solution

• Step 6: Evaluate the effectiveness of the implemented solution

OPTIMAL LEVELS OF PROJECT

CONFLICT

THE 4-STEP CONFLICT RESOLUTION

PROCESS

• Step 1: Identify sources of potential and actual conflict (DIAGNOSIS)

• Step 2: Develop conflict resolution strategies/techniques (EXAMINATION)

• Step 3: Apply conflict resolution strategies/techniques (REMEDY)

• Step 4: Control and review the effectiveness of the conflict resolution strategy/technique (FOLLOW-UP)

CONFLICT MANAGEMENT GUIDING PRINCIPLES

– TIPS AND TECHNIQUES

LEARNING ACTIVITY 6

• By referring to the Learning Activity 4project, describe the project monitoring,evaluation and control process,mechanisms and tools that will be appliedto red-flag deviations from the project baseline. Specifically refer to controlsregarding time; cost and quality and othersuccess criteria.

• Describe how the project managementteam will resolve conflict within andexternal to the team.

• Describe how the project team will resolvean unstructured problem in the project.

PROJECT CHANGE• Project change is inevitable.

• These project changes cannot always be avoided, but their impact can be predicted and controlled.

• The impact of these changes must be considered and factored in terms:

time;

cost;

quality and

customer satisfaction

PROJECT CHANGE REQUESTS• Change requests to the project scope or functionality may come from

a variety of sources, but they will require Project Board sponsorshipto be processed.

• The originator will describe the change request and provide ajustification.

• Alternative solutions and their respective impacts on the project willbe identified and a recommendation made.

• The recommendation will be presented to the Project Board who willdecide whether to accept it or make an alternative recommendation.

• These change requests are formalized through the completion of aProject Change Request Form (CRF).

LEARNING ACTIVITY 7

• By referring to the changerequest process and –form,initiate a change in theselected, BMW project.

• Indicate whether thischange request wasapproved/declined andmotivate the reasons.

PHASE FOUR: PROJECT CLOSURE• This process verifies that the project has delivered the

required outcomes and that stakeholder expectations havebeen met.

• It also makes sure that everyone involved in the project knowshow to move forward.

• Project closeout is a fairly routine process, but it remains animportant process.

• By properly completing the project closeout, organizations canbenefit from lessons learned and information compiled atclosure.

PROJECT CLOSURE ACTIVITIES

• Releasing the final deliverables to the customer

• Handing over project documentation and administration and terminating contracts

• Communicating the closure to all stakeholders

• Releasing staff

• Closing the Project Office

PROJECT CLOSURE ACTIVITIES

• Perform a Post Implementation Review of the project

• Close-out report:

Assessment of the project against actual performance

Quality of management (focusing on quality and risk management)

The lessons learnt that can be applied to future projects

LEARNING ACTIVITY 8

• As part of the Project Closure phase,simulate a project close-out de-briefing meeting in which thefollowing items are reviewed anddiscussed:

Overall project performance

Individual project team memberperformance

Lessons learned – mistakes and bestpractice principles

Project team cohesion and synergy

Mapping the way forward

CONCLUSION

• Key points

• Summary

• Questions

• Training Administration

• Certification

CONTACT DETAILS

• Charles Cotter

• (+27) 84 562 9446

• charlescot@polka.co.za

• LinkedIn

• Twitter: @Charles_Cotter

• http://www.slideshare.net/CharlesCotter