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Supervisors and Managers Training

Intermediate Project Management

Self-Study Guide

© Velsoft LearningWorks Training

Copyright All rights reserved world-wide under International and Pan-American copyright agreements. No part of this document can be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise.


How to use this guide This self-study guide is designed and laid out in a manner that will direct student learning much in the same way that an instructor would. This workbook is comprised of several modules called Sessions. Each session focuses on a major concept in the course. Several times throughout the course of the guide, it is suggested that you take the opportunity to internalise what you have learned by taking advantage of the many self-reflection exercises titled Making Connections. The Making Connections sections are intended as open-ended questions that allow you to apply the skills learned in the current session in the framework of your personal past experience. It is used to help you incorporate what you’ve just learned into your own practice. For the purpose of keeping track of your own progress, the guide also incorporates a Pre-Assignment, which is a reflective exercise designed to give you an idea of your current skills. Following that, you are asked to complete the Pre-Course Assessment. The Pre-Course Assessment will be used in conjunction with a Post-Course Assessment at the end of the course to highlight the progress you’ve made. In the final Session you will be asked to complete your Personal Action Plan; a sort of road map that will help you incorporate your new skill-set into your daily routine.


Table of Contents Session One: Course Overview ........................................................................................................ 1

Learning Objectives ................................................................................................................ 1 Pre-Assignment ....................................................................................................................... 2

Session Two: What Really Needs To Be Done ................................................................................. 3 Identifying Tasks ..................................................................................................................... 3 Making Connections ............................................................................................................... 4 Identifying Resources ............................................................................................................. 5 Pete’s Resources ..................................................................................................................... 9

Session Three: The Work Breakdown Structure............................................................................ 10 About Milestones.................................................................................................................. 10 Making Connections ............................................................................................................. 12

Session Four: Scheduling ............................................................................................................... 13 Preparing a Basic Schedule ................................................................................................... 13 Making Connections ............................................................................................................. 18 Activity Scheduling ................................................................................................................ 19 Planning Tools ....................................................................................................................... 19 Action Planning Worksheets ................................................................................................. 19 Making Connections ............................................................................................................. 28

Session Five: Budgeting ................................................................................................................. 31 Budgeting Basics ................................................................................................................... 31 Making Connections ............................................................................................................. 31 Cost is Time Sensitive ........................................................................................................... 32 Pete’s Budget ........................................................................................................................ 34

Session Six: Project Risks ............................................................................................................... 35 Types of Risk ......................................................................................................................... 35 Planning For Risk ................................................................................................................... 37 Making Connections ............................................................................................................. 41

Session Seven: Preparing the Final Plan ........................................................................................ 42 Pete’s Final Plan .................................................................................................................... 42 Making Connections ............................................................................................................. 44

Session Eight: Making it Fit ............................................................................................................ 45 Schedule Compression.......................................................................................................... 45 Budget Compression ............................................................................................................. 46 Making Connections ............................................................................................................. 47

Session Nine: The Execution Phase ............................................................................................... 49 Duties as the Project Manager ............................................................................................. 49 Maintaining the Rhythm ....................................................................................................... 50 The 95% Phenomenon .......................................................................................................... 51 Making Connections ............................................................................................................. 52

Session Ten: Controlling Changes .................................................................................................. 53 Change Request Process ....................................................................................................... 53 Making Connections ............................................................................................................. 54

Session Eleven: Closing out a Project ............................................................................................ 55 Closing Strategy .................................................................................................................... 55 Lessons Learned .................................................................................................................... 56


Session Twelve: A Personal Action Plan ........................................................................................ 57 Starting Point ........................................................................................................................ 57 Short-Term Goals and Rewards ............................................................................................ 58 Long-term Goals ................................................................................................................... 58

Summary........................................................................................................................................ 59 Recommended Reading List .......................................................................................................... 60

Intermediate Project Management |

Velsoft LearningWorks Training

1

Session One: Course Overview

Project management isn’t just for construction engineers and military logistics experts anymore. Today, in addition to the regular duties of your job, you are often expected to take on extra assignments - and to get that additional job done well, done under budget, and done on time. In this course, we take you through the remaining three stages of project management; planning, execution, and termination. Note: This guide is intended for those who understand the conceptual phase of a project’s life cycle, including setting goals, creating a vision statement, and creating the Statement of Work. If you are not familiar with these concepts, please take the Project Management Fundamentals course first.

Learning Objectives

By the end of this course, you will have learned to:

Identify your project’s tasks and resources

Order tasks using the Work Breakdown Structure

Schedule tasks effectively

Use basic planning tools such as a Gantt chart, PERT diagram, and network diagram

Prepare a project budget

Modify the project budget and schedule to meet targets

Identify and manage risks

Prepare a final project plan

Execute and terminate a project

Develop and manage a change control process Why did you decide to take this course? List some goals for yourself that you hope this course will help you achieve.)



2

Pre-Assignment

Have handy a planning tool that you have used while planning a project. This can be a calendar, an action planning worksheet, a milestone chart, a Gantt chart, a network diagram, a flow chart; anything you have used while planning your project. If you have never planned a project, you could use a template employed by your organisation or even do some research and determine a tool that you think would be useful.



3

Session Two: What Really Needs To Be Done

One of the toughest challenges as we begin planning a project is to identify all the activities that we must do in order to see the project through to completion. Then when we do begin listing them, we expect to be able to put them in the right order the first time through. In this session, we concern ourselves with task identification and resource management, and the union of the two, in order to develop a time-frame and a cohesive strategy.

Identifying Tasks

People sometimes get bogged down in planning projects because they try to think of everything logically and in the proper sequence. Unfortunately our minds don’t always work this way. The result is writing and rewriting our list many times. When you are trying to plan a project, don’t worry about sequence at first. The first step is to use sticky notes and write every activity or task down as it comes to you. It can be a lot more fun to do this as a group rather than work on it all by yourself, plus you are far more apt to have all the tasks identified.

Some Tips for Task Identification

It can be difficult to identify the tasks. Here are some points to think about as you write out your sticky notes.

This should not be a to-do list. The person who will be doing this task will need some flexibility. As an example, you may have “Consult architect” as a task in building a new house. However, “Call architect,” “Schedule meeting,” and, “Confirm meeting,” would be encompassed in this task and would not need to be listed separately. This type of micro-management is a recipe for disaster.

Ask yourself, “Will there be a tangible result from this task?” In the example above, you would not have a tangible result if you listed tasks such as “Call architect,” “Schedule meeting,” and, “Confirm meeting.” However, once you consult with the architect, you will have your blueprints and plans… a tangible result.

If a task is going to take more than 80 hours (10 days), it probably needs to be broken down.

You may want to include status checks, inspection, and quality control in your list of tasks.

Only when you think you have identified every task that you believe is part of the project, start by putting them in order. As a way of making certain you have them in the best order, start with the first activity you have identified. Ask yourself what comes right before that step and what comes after that step.



4

Making Connections

Pete’s Task List

To practice listing tasks, let’s give Pete a hand. Pete is building a house and he needs your help. He has identified the tasks that must be done. Now he needs them in the right order. Place a number in the box beside the given task to indicate the proper sequence of events.

Paint walls and trim

Obtain bank loan

Install insulation

Construct frame

Paint doors and windows

Obtain building permit

Install electrical wiring

Install doors and windows

Grade land Excavate Lay-up masonry exterior

Roof house

Landscape

Pour concrete foundation

Put up wall board

Install plumbing

Back fill foundation

Clear land Install floors Sheath house

Install interior and exterior trim

Consult architect

Install heating Purchase materials



5

Pete’s Task List: Our Suggested Answer

1) Consult architect 2) Obtain bank loan 3) Obtain building permit 4) Clear land 5) Excavate 6) Pour concrete foundation 7) Purchase materials 8) Construct frame 9) Install doors and windows 10) Sheath house 11) Roof house 12) Install plumbing

13) Install heating 14) Install insulation 15) Install electrical wiring 16) Install floors 17) Lay-up masonry exterior 18) Put up wall board 19) Install interior and exterior trim 20) Paint walls and trim 21) Paint doors and windows 22) Back fill foundation 23) Grade land 24)Landscape

Identifying Resources

Now it’s time to identify what people and items will be needed for each task. The tasks have now been placed in chronological order. Always remember to include yourself in tasks that you need to do personally.

Task Resources Needed

1. Consult architect Architect Me

2. Obtain bank loan Bank manager Me

3. Obtain building permit City construction manager Me

4. Clear land General contractor 5 construction workers Backhoe Excavator Dump truck



6


5. Excavate General contractor 5 construction workers Backhoe Excavator

6. Pour concrete foundation General contractor 3 construction workers Dump truck Cement mixer

7. Purchase materials General contractor Me

8. Construct frame General contractor 3 construction workers Dump truck 16 2x4 12 2x8 Nails

9. Install doors and windows General contractor Doors and windows sub-contractor 5 construction workers 6 doors 18 windows

10. Sheath house General contractor 3 construction workers

11. Roof house General contractor Roofing sub-contractor 3 construction workers Shingles Nails Tar paper

12. Install plumbing General contractor Plumbing sub-contractor 2 construction workers

13. Install heating General contractor Plumbing sub-contractor 2 construction workers

14. Install insulation General contractor 4 construction workers



7


15. Install electrical wiring General contractor Electrical contractor 4 construction workers

16. Install floors General contractor 4 construction workers

17. Lay-up masonry exterior General contractor Masonry contractor 4 construction workers

18. Put up wall board General contractor 4 construction workers

19. Install interior and exterior trim General contractor 4 construction workers

20. Paint walls and trim General contractor 4 construction workers

21. Paint doors and windows General contractor 4 construction workers

22. Back fill foundation General contractor Backhoe Dump truck 4 construction workers

23. Grade land General contractor Landscaping sub-contractor Backhoe Excavator Dump truck 4 construction workers

24. Landscape General contractor Landscaping sub-contractor 4 construction workers

How deep you get into listing materials required depends on the situation. For example, if your roofing contractor is going to bring all the materials required and has included it in his price, then you probably don’t need to list all the materials required. However, if you will need to purchase the materials, then you should list all the materials required so that they can be included in your budget.



8

Resource and Cost List

Next, you will want to create a list of all resources (people and things) needed and their cost. Here is an excerpt of our resource cost list for Pete’s project.

Resource Description Cost Availability

Pete Perfect Home builder $20/hour 24 hours/day

Mark Monson General contractor $45/hour 10 hours/day

Steve Smith Construction Worker 1 $15/hour 8 hours/day

Sarah Anderson Construction Worker 2 $15/hour 8 hours/day

Omar James Plumbing sub-contractor $35/hour 5 hours/day from February 2-5 8 hours/day from February 5-10

Construction Equipment

Excavator $50/hour 24 hours/day from January 1-February 28

Backhoe $50/hour 24 hours/day from January 1-February 15

Note that although Pete isn’t getting paid, we have included a cost for him as he will be taking unpaid time off work. Likewise, don’t assume salaried staff works for free. Although Human Resources likely won’t give you salary figures for your staff, especially if they don’t work directly for you, they should be able to give you pro-rated hourly amounts that will help you work out your resource costs.



9

Pete’s Resources

Take a moment to complete the resource sheet that we just started for Pete’s project. You can make up the figures for this resource chart, just try to make reasonable estimates.

Resource Description Cost Availability

Pete Perfect Home builder $20/hour 24 hours/day

Mark Monson General contractor $45/hour 10 hours/day

Steve Smith Construction Worker 1 $15/hour 8 hours/day

Sarah Anderson Construction Worker 2 $15/hour 8 hours/day

Omar James Plumbing sub-contractor $35/hour 5 hours/day from February 2-5 8 hours/day from February 5-10

Construction Equipment

Excavator $50/hour 24 hours/day from January 1-February 28

Backhoe $50/hour 24 hours/day from January 1-February 15



10

Session Three: The Work Breakdown Structure

The idea of a Work Breakdown Structure (sometimes called Product Breakdown Structure) is to break larger tasks (milestones) down into smaller tasks (activities) or individual components. In this session, we focus on the importance of the division of the project into smaller, more manageable, tasks.

About Milestones

Milestones signify a key accomplishment in your project. They are markers for summarising work that has been done, not individual tasks. One advantage of a milestone chart or calendar is that it can be posted for everyone to see. To demonstrate, for a project of planting a garden, if one of your milestones is “seeds arrive,” you may have had several tasks to do before your seeds arrived, including: gather catalogues and look through them, plan the garden on paper, order the seeds. Plant seeds may have been preceded by: till the garden, apply fertiliser and row up the soil.



11

A WBS Example

Here is an example Work Breakdown Structure for a newsletter project.

It is always a good idea to post the WBS where all team members can see it to help people keep on track.



12

Making Connections

Project Milestones

Come up with an example of a possible milestone for a real or hypothetical project and put it down. List some tasks that likely would have had to have taken place prior to that milestone. Milestone:

Tasks



13

Session Four: Scheduling

Now that we have our tasks neatly laid out, it’s time to schedule them in order to determine how long the project will last. It is very important to include all affected members in the scheduling process. In this session, we examine how to lay out a schedule using time-to-completion estimation, and contingency planning.

Preparing a Basic Schedule

Some of the advantages of creating a schedule with banner paper and self-stick notes over having a computer create a schedule using a software program include:

Everyone on the team participates in creating the schedule.

Scheduling conflicts between team members can be immediately resolved.

Everyone on the team understands who he or she will be depending on and who depends on them.

Team members know their own schedules and can adjust the start and delivery dates for their deliverables to best integrate with other commitments they have.

Everyone on the team understands the big picture and how their pieces fit into the whole.

Some items that you will want to gather before starting the scheduling process:

Schedules of people that will be working on the project, including outsourced vendors. In particular, make sure you note times when they are very busy or may be unavailable.

Holiday time for staff on the project.

Other projects that team members are involved in that may conflict with this project.

Schedules for materials and resources that will be required.



14

Time Estimation

This formula is considered the standard for estimating time (Te):

Te = To + 4Tm + Tp

6

Where, Tm= probable time To= optimistic time

Tp=pessimistic time

Te=calculated time

To start, go through and assign an optimistic, pessimistic, and probable time to each of your tasks. These numbers will be derived from your experience and from the experience of your staff. It is crucial that you get the best estimates possible to ensure the most accurate scheduling possible.

Using the Formula for Pete’s Task List

In the example below, each number represents days. These are the estimates for Optimistic, Pessimistic and Probable Time for each item on Pete’s list of tasks.

Task Number Task Name To Tp Tm Te

1) 1 Consult architect 2 8 6

2) Obtain bank loan 1 10 5

3) Obtain building permit 5 14 10

4) Clear land 1 4 2

5) Excavate 1 4 2

6) Pour concrete foundation 1 4 2

7) Purchase materials 1 5 3

8) Construct frame 2 6 4

9) Install doors and windows 3 8 6

10) Sheath house 2 5 3



15


11) Roof house 2 5 3

12) Install plumbing 5 10 7

13) Install heating 1 5 3

14) Install insulation 1 4 2

15) Install electrical wiring 2 6 4

16) Install floors 1 5 3

17) Lay-up masonry exterior 5 20 10

18) Put up wallboard 1 5 3

19) Install interior and exterior trim 3 7 5

20) Paint walls and trim 2 7 5

21) Paint doors and windows 1 4 2

22) Back fill foundation 1 2 1

23) Grade land 1 5 2

24) Landscape 1 5 3



16

Calculating Pete’s Time

Now, using the Time Estimation formula and the figures from Pete’s list we can calculate the estimated time.

Te = To + 4Tm + Tp 6


1) Consult architect 2 8 6 5

2) Obtain bank loan 1 10 5 5

3) Obtain building permit 5 14 10 9

4) Clear land 1 4 2 2

5) Excavate 1 4 2 2

6) Pour concrete foundation 1 4 2 2

7) Purchase materials 1 5 3 3

8) Construct frame 2 6 4 4

9) Install doors and windows 3 8 6 5

10) Sheath house 2 5 3 3

11) Roof house 2 5 3 3

12) Install plumbing 5 10 7 7

13) Install heating 1 5 3 3

14) Install insulation 1 4 2 2

15) Install electrical wiring 2 8 4 4

16) Install floors 1 5 3 3

17) Lay-up masonry exterior 5 20 10 11

18) Put up wallboard 1 5 3 3

19) Install interior and exterior trim 3 10 5 6

20) Paint walls and trim 2 7 5 5



17


21) Paint doors and windows 1 4 2 2

22) Back fill foundation 1 2 1 2

23) Grade land 1 5 2 2

24) Landscape 1 5 3 3

Float Time

In almost every project, we have to account for Murphy’s Law: “If something can go wrong, it will.” The float time is the cushion you build into projects so Murphy’s Law can be accommodated. Pad your timelines a bit to allow for contingencies. Rather than adding a bit to each step it may be more useful to just add a bit more time before the project is to be due. One of the big problems with project planning is that you cannot foresee or totally control the future.

Scheduling Checklist

As you are developing your project schedule, ask yourself who your readers will be:

How much information do they need (big picture or details)?

What form of schedule do they want or expect to see?

Should I create customised versions of the schedule for certain audiences, or for display purposes?

Remember that a schedule is first and foremost a communication tool. Its purpose is to keep everyone aware of what should be going on. If people can’t understand it, it is useless. And, it doesn’t matter what planning tool we use, each version should be dated so you can relegate old versions to the project file or the wastebasket. Nothing is more confusing than to have two Action Planning Workshops or Milestone Charts for the same project with no idea which one you should be following.



18

Making Connections

Planning Tool Options

What are some of your options for planning tools?



19

Activity Scheduling

New project managers often just try to schedule activities in sequence, one after the other. However, you can save a lot of time and money by creating a plan that has several activities happening at the same time. On the other hand, if you try to get things done too quickly you may end up with confusion and bottlenecks. Figuring out what project activities can occur simultaneously is a job for a veteran. If you must figure it out for yourself, break the tasks down into as much detail as you can to avoid unforeseen project activities or costs. There are some tools that we can use to help us schedule our activities.

Planning Tools

We are familiar with many planning tools. We use them every day. They include:

The clock on the wall

The calendar in the lunch room

The planner on our desk

The meetings we attend Determining what material, resources, or support will be needed is an important part of determining the budget for this project, if the budget has not already been identified for you. Even if the budget has been identified, preparing and tracking a budget can be an excellent exercise. It will also prepare you for the day when you do have to manage your project’s budget.

Action Planning Worksheets

These can vary greatly in their complexity. The most basic ones show only those steps required to complete a project. Additional information, such as the beginning dates, targeted completion dates, cost estimates, and who is responsible, can be added to the basic worksheet.



20

Milestone Charts

Milestones signify a key accomplishment in your project. They are markers for summarising work that has been done, not individual tasks. One advantage of a milestone chart or calendar is that it can be posted for everyone to see.

A Milestone Chart will be even more useful if you use it to chart your progress. This is usually done by drawing a line in a different colour under the original line to show actual beginning and completion dates of each step, or if you are using a wall calendar, crossing off each milestone in a different colour when a task is done.

PERT Diagrams

A PERT diagram is a Program Evaluation Review Technique diagram. It is a diagram that represents an added degree of sophistication in the planning process. To draw one, list the steps required to finish a project and estimate the time required to finish each step.

Objective: Publish a Work Planning and Review Workbook by September 1, 2008

Action Steps with Time Estimates:

1. Write draft 15 days 6. Proofread 3 days

2. Type draft 10 days 7. Make corrections 2 days

3. Proofread 5 days 8. Draw figures 5 days

4. Draw cover 5 days 9. Reproduce 15 days

5. Type final 10 days 10. Deliver books

Prepare

docum-

ents

Prepare

land

Exterior

Constr-

uction

Interior

Constr-

uction

Finish-

ing

Touches

Prepare

docum-

ents

Prepare

land

Exterior

Constr-

uction

Interior

Constr-

uction

Finish-

ing

Touches



21

Then draw a network of relationships among the steps. The number of the step is shown in a circle, and the time to complete the step is shown on the line leading to the next circle. Steps that must be completed sequentially are shown in the order that they must be completed. Steps that do not rely on the completion of any others can be under way concurrently and are shown outside the main sequence, bridging other steps. A PERT diagram not only shows the relationship among various steps in a project, it also serves as an easy way to calculate the critical path.

(The PERT Diagram can be made clearer by colouring each step as it is completed. Actual time may be written over the estimated time to maintain a running tally of actual versus planned time along the critical path.)

Comparing PERT and CPM

The PERT diagram and the CPM (Critical Path method) are very similar, and they are the most common forms of showing networks, or interrelationships among tasks. They just display information differently. They are sometimes called the PERT/CPM activities. The critical path shows the shortest amount of time needed to complete a project.



22

Gantt Charts

Gantt charts are bar charts that show activities as blocks of time. These are extremely useful; once you have calculated the estimated duration for your project, you should fill in one of these.

Act

ion

Ste

ps

1

2

3

4

5

6

7

8

9

10

1 April 15 April 1 May 15 May

Dates

Here is a computer-created Gantt chart.



23

The Network Diagram

The Network Diagram is a tried and proven way to organise and sequence the steps in a project. Anything but the simplest project should have a network diagram; it’s a road map for your project and you don’t even need a computer to create one (but it sure helps on big projects). However, it’s important to understand how to create your network diagram manually before you let your computer do your thinking for you. The network diagram shows the path of the projects, lists starting and completion dates, and names the responsible party for each task. You should put your network diagram on the wall where the whole project team can see it. Then, use a bright colour to mark off what has been done; this is a powerful way to communicate just where you are in a project.

Interdependencies of Tasks

If you are the only person working on your project, you will probably complete your tasks in sequence, one after the other, until the project is finished. However, if your project involves more than one person, people will be working on different tasks at the same time, and some tasks may depend on others to be completed before they can get done. These interdependencies can be hard to figure out in your head. That’s when you really need a network diagram—to help you picture how the pieces fit together. Detailed task lists and a work breakdown schedule are a good start, but they don’t draw the complete picture. They aren’t very effective when it comes to coordinating tasks and resources. Network diagrams reveal the workflow, not just the work.

Articles

Written

Photos Selected

Create

Final Layout



24

Creating Your Network Diagrams

Creation of a Network Diagram involves five steps. 1. List the tasks using your task list or your WBS (Work Breakdown Structure).

2. Establish the interrelationships between tasks.

i) Ask yourself, what precedes this task? (What other tasks must be completed before this

one can get started?) ii) What tasks follow this task? (What tasks can’t be started until this task is done?) iii) What tasks can take place concurrently with this one? (What tasks can be worked on

while this is being completed?)

3. Identify milestones. Milestones signify a key accomplishment. They are markers for summarising work that has been done, not tasks. If the project is small, you can even leave out the milestones.

4. Lay out the tasks and milestones as a network. Some experienced project managers start at the end point, the last task in a project, and work backwards. However, there are lots of good arguments for starting at the first task and moving forward. Your approach is a matter of preference.

5. Review the logic of the network. The network review process lets you see whether tasks are

being done in a logical sequence. Ask yourself:

i) Are the tasks properly sequenced? ii) Are all preceding tasks identified? iii) Are all the tasks necessary? iv) Are any tasks missing? v) Do these tasks represent all that needs to be done in order to meet the project goals

specified?

What Does it Look Like?

A rectangular box indicates a task. The number in the top right is the duration of the task. The number at the left is the task number used for tracking.

12 3d

This is a Task.



25

A box with rounded corners is a milestone. Milestones do not have duration like a task because they represent the completion of a series of tasks.

Precedence is indicated by the sequence of tasks joined with a line and an arrow.

Concurrent tasks are shown in the same vertical plane and are not connected by lines or arrows.

Two tasks that must be completed before a third can begin looks like this.

Task Identification Tips

To make tasks and sequences easier to find in your network, be sure to identify each task and milestone with unique numbers or other identification labels. In computerised project management programs, tasks are always numbered and identified by task description. The same method of identification or numbering used in the WBS is usually appropriate; however, it is common in networks to skip numbers between tasks to allow flexibility in the network when requirements for new or different tasks may become apparent later in the project. For example, instead of numbering tasks as 1, 2, 3, and so on, it might be better to number tasks in relation to each milestone. For example, between task 10 and task 11, you can number them 10.1 and 10.2 without disturbing the logical numbering sequence of the original tasks.

Task 1A

Task 1B

Task 2

One Task

Unrelated Task

First Task Next Task

This is a Milestone



26

The numbering system should be flexible because projects almost always have changes that need to be represented in the network.

The Flow Chart

You’ve probably seen a flow chart. It shows the flow of information or activities based on different outcomes. Here are the steps to making a flow chart: 1. Gather a group of people who represent the various parts of the process. 2. Decide where the process begins and ends. 3. Brainstorm the main activities and decision points in the process. 4. Arrange these activities and decision points in their proper order, using arrows to show

direction of flow. 5. As needed, break down the activities to show their complexity.



27

Clothes Ready

Yes

Alarm goes off

Start Coffee

Bathroom Available

Yes

Shower

Yes

Get Dressed

Eat Breakfast

Car Available

Read Paper

Yes

Drive to Work

Park in Lot

Yes

Arrive at Work

N

o

Sleep Late

N

o Wait

N

o Iron Clothes

N

o

N

o

Watch TV

Take the Bus

N

o Park and Walk



28

Making Connections

A Gantt Chart for Pete

You now have all the skills necessary to create a Gantt chart for Pete’s project. Using the estimated times shown earlier in the session, and starting with January 1, draw a Gantt Chart for Pete’s House Building Project. We have included a Gantt chart template below.

Act

ion

Ste

ps

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

1/1 1/5 1/10 1/15 1/20 1/25 1/30 2/5 2/10 2/15 2/20 2/25

Dates



29

Looking at your Gantt chart, which activities can be done simultaneously?

Which activities depend on the actions of others? Explain your answer.



30

Your chart should look something like this.

Act

ion

Ste

ps

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

1/1 1/5 1/10 1/15 1/20 1/25 1/30 2/5 2/10 2/15 2/20 2/25 Dates

Although the total number of days required for the project (when indicated in the estimated task list) is 96 days, the project as scheduled in the Gantt chart will only take 60 days. This is due to the overlap of some tasks.



31

Session Five: Budgeting

Most projects run on a tight budget. Often, everything costs more and takes longer than you expected it to. A common cause for this is that you or your manager had to put your budget together in a hurry and key tasks got left out of the process. In this session, we look into the elementary parts of a budget, types of budget, and the stepwise creation of a budget.

Budgeting Basics

Ideally, you will control the budget. More often than not though, you will have the responsibility of tracking the budget, with no control over how the dollars get spent. There are two main methods of estimating costs:

Bottom-up budget: You and your team get to build the budget by hammering out costs, item by item.

Top-down budget: Senior managers estimate the costs and allocate that amount to you for execution.

Perhaps the best type of budget combines both methods. Try to build your budget in an orderly fashion, task by task, step by step. Identify the costs (time, people, supplies, equipment, external consultants, etc.) associated with each task/activity in your project. You will also want to add in funds for rewarding project staff and for emergencies.

Making Connections

The Importance of Budgeting

Why is time important when you are creating budgets?



32

Cost is Time Sensitive

Necessary to our success, there are occasions when we need to estimate the time required for tasks because costs are time critical. Costs require expert input. Don’t make “guesstimates” about areas you know nothing about. Ask the people who will be doing the work what their costs will be. Get budget input from staff, outside service vendors, and other project managers who have gone before you. Remember:

Costs are tied to project goals. Do you want to go first class all the way, or will this be the economy version?

Costs are tied to time frames and schedules: doing things faster usually costs more money.

Things to consider

Who controls the budget? Whatever the arrangement, ask your project sponsor to sign off on the final budget and any budget changes thereafter. However, try to come to some arrangement so you can buy supplies and pay bills in a timely manner.

Can you get some signing authority?

Do you control petty cash? Establishing a reliable budget is likely the most difficult task a project manager faces for political as well as logistical reasons. Management personnel will rarely accept your budget as reasonable; they will attempt to squeeze money from it, even if it means putting the project at risk. You’ll need to document and negotiate what you really need. Your budgeting skills will improve after successful completion of several projects. You want as much direct control of your budget as possible if you’re going to be held accountable for the project outcome.



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Sample Cost Estimation Chart

The following chart is often used for estimating costs. Remember, try to include all costs. You may want to use more or fewer columns than shown, depending on your project. The resource cost sheet we created earlier should help you with this.

Task Labour Overhead Materials Rental Fees Total

TASK TOTAL

OTHER COSTS

Emergency Fund

Project Rewards

GRAND TOTAL



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Pete’s Budget

At this point you have the skills to create a budget for Pete using the sample chart below, the resource sheet we prepared, and the schedule we used in Session Four. Fill in Pete’s Budget Chart for the first seven tasks in his list (the “pre-build” tasks) and determine his totals.

Task Labour Overhead Materials Rental Fees Total

TASK TOTAL

OTHER COSTS

Emergency Fund

Project Rewards

GRAND TOTAL

In this exercise, it is possible that you may have missed some items or made errors. This is why budgeting is best done as a team effort; at least in the early stages. Having the team prepare the budget also creates ownership and makes team members more likely to stick with that budget.



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Session Six: Project Risks

What are the risks? How can you reduce risk on your projects? How can you manage risk such that should problems arise, you will be prepared for them? These are all questions to consider when planning a project. In this session, we identify types of risk commonly encountered as well as learn how to reduce and manage risk.

Types of Risk

There are three types of risks:

1. The known risks are those that you or your stakeholders can identify from experience. 2. Then there are the predictable risks, those that might occur. This is your instinct rather

than something concrete that tells you to be on the lookout. 3. Finally, there are the things that we just didn’t count on—the stuff that happens. You

simply can’t predict everything.

Common Risks

Funding: It may get cut or dry up.

Time: Other projects may land on your desk at the same time.

Staff: The person or persons you were relying on get sick, quit, or get assigned to another project.

Customer Relations: You have customers from other departments, or external customers, whose needs conflict with this project.

Project size or complexity: The project gets more complex than originally intended.

External factors (such as weather).



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Possible Sources of Risk

Risk Source Typical Considerations

Time / Schedule Is there a reasonable amount of time in which to complete the project?

Customer Relations Does there exist a good-will climate?

Project Size or Complexity What is the scope of the project?

People/Staff Are they available? Are they committed? Are they skilled? Do they know what is required of them?

Technological Is the technology proven? Is it reliable? Is it available? Is it understood?

Political Is the need for the project agreed on? Does the sponsor control the stakeholder group? Are negative stakeholders influential? Is communication with stakeholders good?

Financial Am I in control of project funds?

Contractual/Legal Am I, or is my company, contractually or legally liable for the failure of the project?

Physical Are there any physical risks inherent in undertaking the project tasks?

Environmental How can the weather affect my project? What geological factors might put my project’s success at risk?

Facilities / Equipment Will there be sufficient resources with which to complete the project?



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Planning For Risk

The nature of risk is dualistic involving uncertainty (something may or may not happen), and loss (the event has unwanted repercussions). For this reason, project managers must plan for risk. This isn’t the time to bury your head in the sand. A project manager must:

Identify potential problems and confront them before they occur. Preventative management is often easier and cheaper than reactive management.

Focus on the project’s goals and look for things that may affect quality throughout the lifecycle.

Identify potential problems early in the planning cycle.

Involve personnel at all levels of the project. The solution has five steps involving a risk chart.

Step One: Create a Risk Identification List

Like many of our other planning steps, you should first create a chart that will help you track and control these risks. The chart that follows is a template that you can use and modify based on your needs. If you like, you can number these risks as you did tasks.

Risk Description

Identified By Identified On Probability Impact Response

Step Two: Identifying the Risks

Here are a few ways to identify risks facing your project.

Talk to your manager about risk.

Ask the project team, “What worries you? What keeps you up at night?”

Brainstorm with the project team.

Learn from past projects.

Get information from others who have done similar projects and gather differing perspectives.



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As you receive information about possible risks, record it in the chart, no matter how unlikely it seems.

Risk Description Identified By Identified On Probability Impact Response

Possibility of snow

Mark Monson December 1

Construction workers on strike

Steve Smith December 6

Bank loan may be less than anticipated

Merrill Frick December 15

Step Three: Identifying the Decision Factors

The sight of all those risks might make you want to panic. Before you rush into action, however, consider two more factors. First, consider how likely the risk will happen, on a scale of 1 to 5 (with 1 being very unlikely and 5 being almost certain). Enter this information in your chart.


Possibility of snow

Mark Monson December 1 2


Steve Smith December 6 4


Merrill Frick December 15 1



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Now, think about what would happen if the risk did happen. On a scale of 1 to 5 (with 1 being very little impact and 5 being disastrous) rate each risk and enter this information in your chart.


Possibility of snow

Mark Monson December 1 2 5


Steve Smith December 6 4 5


Merrill Frick December 15 1 2

Now you are ready to decide how to deal with the risk.

Step Four: Determining the Response

The Project Management Body of Knowledge Guide (essentially the Bible of project management) identifies four ways that you can choose to address the risk.

1. Avoid it

One option is to change your project in such a way that completely avoids the risk. For example, if you’re planning a holiday to Canada and you’re worried about snow interfering with your flight, you could change your holiday to somewhere that does not get snow. It is crucial that the project can still be completed even if you change tasks to avoid the risk. (In this example, we would still go on holiday, although the destination might be different.)

2. Transfer it

Shift the risk to someone besides yourself. This is commonly done with a warranty, guarantee, or insurance.

3. Mitigate it

This is one of the most common ways of managing risk. Using this strategy means that you look for ways to reduce the probability and impact factors. For example, if you know that the bank may not approve you for as much money as you need, you may want to look for other sources of funding.

4. Accept it

With this strategy, you may look at the risk and decide it’s not worth acting upon. You are accepting the fact that the risk may happen. This is often done with risks that have low impact and probability ratings.



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1. Possibility of snow

Mark Monson December 1 2 5

Mitigate; hire company to erect tents

2. Construction workers on strike

Steve Smith December 6

4 5

Transfer; ask contracting company to hire another outsourcer

3. Bank loan may be less than anticipated

Merrill Frick December 15 1 2

Avoid; cash out RRSP instead

Step Five: Determining an Action Plan

Once you have completed your risk chart, it’s time to finish off the process with an action plan. For each risk, you will want to make sure that someone is assigned to it, just like a task. If you have chosen to mitigate a risk, you will also want to indicate when the risk owner will act (called an alarm).

Risk Action Plan

Risk Owner Alarm

1 Mark Monson Snow is forecast

2 Mark Monson N/A

3 Pete Perfect N/A

Make sure that you, as the project manager, monitor risks and actions throughout the project. Also ensure that your staff alert you when/if a new risk arises, or if the status of a current risk changes.



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Making Connections

Considering Uncommon Risks

Can you think some other risks that are perhaps not so common? Take a moment to come up with some and list them here.



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Session Seven: Preparing the Final Plan

When you are preparing your project, you will want to make sure you have all your ducks in a row before you execute the project. In this session, we bring all the components together in order to create a final plan of action.

Pete’s Final Plan

Up to this point in the course, we have prepared several types of document for Pete’s project. The ones you will want to include are:

Project charter (discussed in the Project Management Fundamentals course)

Statement of Work (discussed in the Project Management Fundamentals course)

Work Breakdown Structure

Planning tools, including milestone chart, Gantt chart, and network diagram

Resource list

Resource cost list

Budget

Risk identification chart

Risk action plan



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Preparing the Master Chart

It is highly encouraged that you prepare a master chart that shows you the various elements at a glance.

Task Resources Start Date

Finish Date

Duration Work Req’d

Cost Notes

Consult architect

1 architect (Katie Perreau) 1 project owner (Pete Perfect)

5 days 6 hours (3 meetings x 3 hrs each)

$600

Obtain bank loan

1 project owner (Pete Perfect) 1 bank manager (Merrill Frick)

5 days 2 hours (2 meetings x 1 hr each)

$40



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Making Connections

Final Documentation

What are some other documents you may want to include when finalising your project plan?

HINT: Your list of documents will vary depending on the size and scope of your project. Other documents that you may need can include:

Communication plan

Business case

Evaluation forms for team members

List of deliverables and completion criteria

Change management process

Quality control process



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Session Eight: Making it Fit

So you’ve got all your documents prepared and you’re ready to execute your project. And then you find out you need to get it done two weeks sooner… or $40,000 cheaper. In this session, we examine the courses of action that can be taken when time and/or financial constraints become cinched.

Schedule Compression

There are several ways to reduce the time it will take to complete the project: crashing, fast-tracking, and de-scoping. You can use these methods alone or in combination with each other.

Crashing

This method tries to reduce the time of task completion while keeping the budget under control. Typically, you will first re-analyse your estimates. If you determine that these are good estimates and cannot be reduced, then look to your resources. Can we put more people or materials on the project to get it done faster?

Fast-Tracking

This method looks at your tasks and sees if any of them can be overlapped.

De-scoping

This method removes work from the project in order to reduce the duration. This should only be used as a last resort, as it typically affects the outcome of the project significantly.



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Budget Compression

There are two ways to reduce the amount of money needed for the project: crashing and de-scoping.

Crashing

This method tries to reduce the cost of task completion without changing the schedule. For example, Pete Perfect may be able to do the landscaping himself instead of hiring a landscaper. The key here is that you do not want to affect the quality of the task or its length (unless you have significant slack time).

De-scoping

This method removes work from the project in order to reduce the cost. This should only be used as a last resort, as it typically affects the outcome of the project significantly. Notes:

After compressing the schedule and/or the budget, make sure you revisit your risk identification.

These techniques should be used during the initial stages of planning. If major schedule or budget changes are required during the project’s execution, make sure you discuss these changes with your team.

If you go over budget or over schedule, don’t act too quickly. Many minor schedule and budget variances resolve themselves.



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Making Connections

Case Study: Allocating Funds

The Christmas Party at ABC Company was always the event of the year. People were still talking about the generosity of management well into the following summer. The company always rented the Windsor Lodge, a private and secluded property equipped with guest rooms, party rooms, exquisite food, and excellent entertainment for the party. Employees were provided with guest rooms, babysitting services, transportation, and an all-expense-paid party. In addition, there were Christmas bonuses for everyone handed out by Santa (who looked suspiciously like the old man himself). Unfortunately, this year the profits of the company have taken a serious drop and the budget for the party and bonuses has been drastically reduced to $17,500. As a member of the management entertainment committee it is your job to allocate the available funds and develop a budget to provide the best party you can with the limited resources. Be creative!



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Expense Last Year’s Budget Your Budget

Accommodations $6,000

Evening Meals $4,000

Beverages $10,000

Entertainment $2,000

Breakfast Meals $4,000

Transportation Costs $3,600

Sub-total $29,600

Bonuses of 100.00 x 100 workers $10,000

Bonuses of 500.00 x 10 Managers $5,000

Grand Total $44,600

After the Budget

Things to consider once you’ve developed a budget include:

If you were an employee of the company and had no say in the budget, would this plan be acceptable to you?

What sacrifices did you make?

What budgeting techniques did you use?



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Session Nine: The Execution Phase

So now that your planning is completed, it’s time to start executing those tasks that you and your team so carefully planned out. In this session, we outline the responsibilities of the project manager, how to put the plan into action, and how to keep it going once it’s up and running.

Duties as the Project Manager

Types of work you may perform as a project manager can include:

Duty Description

Performing the tasks of the project

Your #1 priority is to perform the tasks that you scheduled during your preliminary planning. Of course, you may have to make adjustments during the process, but it is essential that all tasks be completed.

Maintaining resources During your planning, you identified people and things that were needed to accomplish the various tasks. Now you need to make sure those resources are available when needed and that they are doing the appropriate jobs.

Providing training Some project members may require training to perform their tasks effectively.

Managing human resources

Don’t forget the “manager” part of your “project manager” title. You must act as a resource for your staff to help them execute their tasks. You will also need to provide informal feedback, and you may need to provide a formal evaluation at the end of the project.

Monitoring deliverables

During the execution of the project, you need to make sure you are on track to meet the objectives of your project.



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Duty Description

Monitoring risks You also need to monitor the risks identified in your risk identification list and respond as necessary. You will also need to continue watching for new risks or information that may change the risk identification list.

Maintaining the Rhythm

There are two essential elements to keeping your project running: status meetings and an issues management process.

Status Meetings

Before you begin executing the project, you should schedule status meetings so that the team can meet to discuss progress and issues. These meetings are typically once a week, although they can be less often depending on the project. (See the Advanced Project Management course for more information on status meetings.)

Issues Management

No matter how carefully you have planned, problems will arise with your tasks. Typically, issues are brought to the forefront during a status meeting and documented with a form like the one below.

Brought Up By

Open Date

Due Date

Status Description Person Assigned

Status/Resolution Closed Date

This sort of log should be maintained and updated at each status meeting. If possible, you should also post the log in a central team area or on the team Web site to keep everyone up to date.



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If an issue is urgent, team members should bring it to the project manager immediately. The project manager can then decide whether to act immediately or to wait until the next status meeting.

The 95% Phenomenon

Everything has gone perfectly on your project, and your team just needs to tie up those last few ends before all tasks have been completed. But those last few tasks drag on…and on… and on. There are several reasons for this phenomenon. One may be that your project team members are having such a good time that they don’t want the team to break up. Another may be that they are afraid of what the future might hold for them.

Avoiding the 95% Phenomenon

To help avoid this phenomenon, try these tips.

Take the time to talk to team members who seem particularly affected by the phenomenon. Find out what they are afraid of and help them overcome those fears.

Make sure the people on your project know what their next task is and how they will be transitioned into it.

Explain to project members that they can use this positive experience to create a similar environment on their next project. Their knowledge will be invaluable to their next project manager.

Ensure that your team members know what you can do for them after the project is over. Perhaps your evaluation or reference will help them with that career move they’ve been planning, or perhaps you can put in a good word with their supervisor to get them a raise.

(With content from Project Management for Mere Mortals by Claudia M. Baca)



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Making Connections

Persistent Phenomenon

Can you think of any other reasons why the 95% rule could persist?



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Session Ten: Controlling Changes

During the execution of the project, you need to have a process in place for managing changes. A minor change made to the design of one of the project components could affect whether the project is completed on time, on budget, and whether it meets its objectives. In this session, we look at a procedure that will help to manage change in the course of a project.

Change Request Process

To begin with, your team must agree not to make any changes to the project, regardless of who asks. Your team must also agree to follow a change request process. The process typically starts when the client or a project team member requests a change to the project. The project team member who makes or receives the request should fill out a change request form.

Change Request 001

Date:

Request Title

Requestor Reason

Priority Status

Are there risks if the change is not made?

Time to implement Cost to implement

Date to implement

Decision Maker Date

Resolution Date

Then, the request will be presented at the next status meeting and evaluated. The team must determine how the schedule, budget, and objectives will be impacted, and whether the request can be accommodated. Remember, the team can choose to accept the change in full, accept part of the change, or reject it. A change should not be accepted without input from all affected resources.



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Reaching a Decision

Once a decision has been made, the change requestor is notified and the project team must make the appropriate changes to the project plan. The change request form will be completed and kept with the project plan. It is essential that project members understand the importance of moving all project changes through this channel. Just as one stone can cause an avalanche, one unauthorised change can cause the whole project to fail. For large projects, this process may be executed by a Change Control Board rather than the project team.

(With content from Project Management for Mere Mortals by Claudia M. Baca)

Making Connections

Adding to the Form

Is there anything else that you can think of that should be listed in the Change Request form?



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Session Eleven: Closing out a Project

While you may not want to start planning for the end of a project before you start, you should have some plans for a smooth closing from the outset. In this session, we cover how to plan for a graceful end to the project.

Closing Strategy

Do you have a file for each person on the project? Someone is sure to leave before the project is done, and you will want to be able to contact him/her should you need to, and to send him/her a little thank you when the project is done. You will want files on the vendors you use, and anyone involved in the project, if only for a short time. You will want to make arrangements to:

Return items borrowed from other departments or from friends, neighbours, etc.

Account for leased or rented equipment.

Make sure all unfinished project activities are completed.

Pay final bills and fulfill all contracts.

Present the final/finished project to stakeholders, and anyone else who needs to sign off or approve the project.

Be prepared to conduct post-project evaluations with your team, so you can learn from the past.

Make sure all documentation lands in the hands of those who will need it in the future.

Meet with team members and thank them for their efforts.

If the project was a success, celebrate!

Project Documentation

Taking good notes for the duration of a project can benefit future projects. Documentation on research and initial planning is important. However, don’t forget the second half of the project is information on what could (and did) go wrong and the solutions you developed. This information is critical to help the next team create a better plan.



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Lessons Learned

During the project, you may want to keep a diary of things that you have learned or things that you would do differently during the next project. This can be an invaluable tool for your development as a project manager. You will also want to have an evaluation session with your team. Write down what went well and what could have gone better. Make sure you record these results and help team members understand how they can improve.

Things that went well Things that could have gone better

Take a moment to think about some other things you might want to do at the end of the project and list them here.



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Session Twelve: A Personal Action Plan

Now that you have completed this course on Intermediate Project Management, how will you use the things you have learned? Creating a personal action plan can help you to stay on track, and on target. When you take responsibility for yourself and your results, you get things done. This final exercise is a way for you to synthesise the learning that you have done, and to put it into practice. In this session, you will be asked questions to help you plan your short-term and long-term goals. By reflecting on where you currently are and where you want to be, you can solidify, in your mind, what you want your future to hold.

Starting Point

I know where I’m starting from. I know I am already good at these things, and I can do them more often:

I can learn this, I am learning this, and I am doing what I can at this stage as well. I have already learned:



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Short-Term Goals and Rewards

I will start with small steps, especially in areas that are difficult for me. My short-term goals for improvement are:

I promise to congratulate and reward myself every time I do something, no matter how small, to maintain and improve my skills. My rewards will be:

Long-term Goals

I’m setting myself up for success by choosing long-range goals to work for gradually. My long-term goals for success are as follows:



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Summary

Congratulations, you have completed the course, “Intermediate Project Management"! In this course, you started by defining how to start a project. This included, identifying the tasks, creating a work breakdown structure, scheduling, budgeting, defining risks, and preparing the final plan. We then explored how to execute a project, handle changes, and how to close the project effectively. Finally, the closing activity, the Personal Action Plan, will help you to implement your newly learned project management skills.



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Recommended Reading List

If you are looking for further information on this subject, a recommended reading list is included below. Baca, Claudia M. Project Management for Mere Mortals. Pearson Education, 2007. Baker, Kim, and Sunny Baker. The Complete Idiot’s Guide to Project Management. Alpha

Publishing, 2003. Brookson, Stephen. Essential Managers: Managing Budgets. DK Publishing, 2000. Bruce, Andy, and Ken Langdon. Essential Managers: Project Management. DK Adult, 2000. Mintzer, Richard. The Everything Project Management Book. Adams Media Corporation, 2002. Project Management Institute. A Guide to the Project Management Body of Knowledge, Third

Edition. Project Management Institute, 2004.

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