Project Management Project Management Concepts and Concepts and ApplicationsApplications

Vilas Nitivattananon, PhDUrban Environmental Management

School of Environment, Resources and DevelopmentAsian Institute of Technology

vilasn@ait.ac.th

TopicsTopics• General concepts• Organization• Planning process and tools• Control• Examples• Questions and discussions

Project Life Cycle VS Project Life Cycle VS Environmental AssessmentEnvironmental Assessment

General ConceptsGeneral Concepts• A project can be thought of as an

organization which exists to develop a system to respond to a problem

• Projects can be divided into logical phases or stages to indicate the types of tasks or activities conducted within a period of time– Conceptual– Definition– Acquisition– Operation

Project ManagementProject Management• Project management

– A set of principles, methods, tools, and techniques for effective management of objectives oriented work (projects) in the context of a specific and unique organization environment

• Why?– Purpose– Complexity– Uniqueness– Unfamiliarity– Impermanence– Life cycle

Measures and ConstraintsMeasures and Constraints• Measures

– Time– Cost– Performance

• Constraints– Labor– Facilities– Capital– Schedules– Knowledge– Technology

CharacteristicsCharacteristics• Well defined goals• Predetermined period of

performance• Ceiling on expenditures (budget)• Limit on human resources and capital

assets• Limit on available tools / technology

Objectives must be:Objectives must be:• Clearly defined• Achievable• Measurable• Agreed upon

Source of ChangeSource of Change• Internally driven (specification

review)• Client driven• Regulatory driven• Externally driven (market conditions)

Standard Tools Standard Tools • Product oriented work breakdown

structure • Estimating techniques• Task dependencies (PERT Charts)• Graphic scheduling (GANTT Charts)• Critical path analysis• Resource leveling techniques• Management reporting• Project management information system

Project Manager’s RoleProject Manager’s Role• Responsibility• Authority• Accountability• Dealing with the organization structure• Coordinating• Motivating• Negotiating• Managing (vs. Doing)• Interpersonal skills (vs. hands-on /

technical)

Planning, Organizing, & ControlPlanning, Organizing, & Control• Planning

– Establish objectives– Develop the plan– Get plan approval

• Organizing– Determine skill needs– Identify people– Compute the schedule– Get staff / schedule approval

• Control– Collect progress data– Analyze data– Report on project status– Take corrective action

Planning StepsPlanning Steps• Concentrate on identifying the work• Employs such tools and techniques

as:– Methodology– WBS– PERT– Estimating techniques

Organizing StepsOrganizing Steps• Concentrates on identifying people

and timings• Employs such tools and techniques

as:– Skills analysis– GANTT– Critical path analysis

Control StepsControl Steps• Concentrates on identifying and

resolving problems• Employs such tools and techniques

as:– Monitoring & tracking– Plan analysis– Management reporting– Change control

Project Management Project Management ResponsibilitiesResponsibilities

• Meet technical specifications• Insure that costs do not exceed

amount budgeted by management• Insure objectives are met within

specified time frame• Comply with organizational

constraints• Address changes with minimum risk

to all of the above

Nature of OrganizationNature of Organization• Hierarchical• Matrix• Task force

Steps in Planning ProcessSteps in Planning Process• Assess adequacy of technical objectives

(PM)• Initiate top-down WBS development (PM)• Negotiate functional participation (PM &

FM’s)• Complete top-down WBS development (PM

& Team)• Determine interfaces & network (PM &

team)• Develop task estimates (PM & team)

Steps in Planning Process Steps in Planning Process (cont’d.)(cont’d.)

• Develop draft of project plan (PM)• Compare draft of plan to project objectives

(PM)• Negotiate plan revisions (PM & Team)• Negotiate objectives revisions (PM &

client)• Decide on proceeding with project (PM &

Client)• Prepare detailed schedule and resource

plans (PM)

Steps in Planning Process Steps in Planning Process (cont’d.)(cont’d.)

• Identify key deliverables and milestones (PM)

• Determine detailed estimates for people, costs, equipment (PM)

• Obtain commitments from managers (PM & FM’s)

• Obtain plan approval from client and sr. management (PM, client, and SM)

• Distribute project plans and commence work (PM & Team)

Managing Changes to the Managing Changes to the ObjectivesObjectives

• Change may occur as soon as planning commences

• Control procedures must include:– Maintenance of change log– Defining impact of change– Appropriate communications– Proper decisions / approvals

• Changes and change investigation will have an effect on:– Schedule– Cost– Resource utilization– Risk

Work Breakdown StructureWork Breakdown Structure• Identifies specific work elements

(tasks)• Communicates objectives and

strategy to participants• Provide structure for effective

management reporting• Promotes standardization across

projects

WBS FunctionsWBS Functions• Identify prime objectives and

supporting objectives• Establish major steps or phases of

the project• Determine the products or

deliverables for each phase• Identify the tasks needed to produce

each deliverables

WBS CategoriesWBS Categories• Components of a product or service• Functions• Time phases• Organizational units• Persons• Geographical areas• Cost accounts

WBS ExamplesWBS Examples• Feasibility phase

– Deliverable A• Task 1• Task 2

– Deliverable B• Task 1• Task 2

• Analysis phase– Deliverable A

• Task 1

• Design phase– Deliverable

• Task 1

PERT and Critical Path PERT and Critical Path Method (CPM)Method (CPM)

• Program evaluation review technique• Network based

– Event diagram– Precedence diagram– Arrow diagram

• Used for estimating expected time(O + P + 4ML)/6

Rules for EstimatingRules for Estimating• Be realistic / honest• Involve those doing the work• Start at the appropriate level of WBS• Preliminary estimates may assume:

– Average performance– Dedicated work effort (no interruptions)– Sufficient resources available

GANTT Chart AttributesGANTT Chart Attributes• Results of dependencies and

resources assignments• More “user friendly” than PERT• Identifies schedule (not

dependencies)• Can show “planned VS actual”• Can show resource utilization

Product of Planning and Product of Planning and OrganizingOrganizing

• Statement of technical objectives• Work breakdown structure• Task lists• Task dependencies• Network diagram• Schedule and resource utilization

plan (GANTT)• Critical path calculation

ControlControl• Project management standards• Defined control sequence• Defined control responsibilities• Schedule for reporting• Agreed upon report formats

Project Control StepsProject Control Steps• Measure

– Planned condition– Actual condition– Deviation between planned and actual

• Analyze– Impact of the deviation– Nature of the problem– Cause of the problem (accountability)

Project Control Steps Project Control Steps (cont’d.)(cont’d.)

• Communicate – Determine who “needs to know”– Inform appropriate parties– Decide if necessary to elevate the

problem• Take corrective action

– Develop alternative solutions– Recommend and obtain approval– Implement solution– Determine future preventive action– Follow up on effectiveness of solution

What to Track / MonitorWhat to Track / Monitor• Completed tasks• Tasks in progress

– Beware of the “90% complete” trap– Need to know how much work remains

• Future tasks– Changes– Delays

• Major deliverables / milestones• Work effort utilization• Quality

– “if it is done” vs. “how well it is done”– Standards help!

How to Track / MonitorHow to Track / Monitor• Who collects the data?

– Delegate where possible– Plan time for this

• When to collect the data?– Weekly, bi-weekly– Consistency is key

• How to collect the data?– Accurately, completely– Proper format– Level of detail– Summary requirements

• Who receives the data?

Taking Corrective Action Taking Corrective Action • Responsibility of PM

– Identify impact– Report impact– Do not make changes in a vacuum!!

• Involves negotiation– With the client– With management– With the project team

• Obtaining support and commitment depends on– Demonstrating effective control– Maintaining effective communication

(reporting)

Project Management Project Management Information System (PMIS)Information System (PMIS)

• A framework or methodology, a system, for collecting, organizing, storing, processing, and disseminating the information needed to manage projects

• Manual or automated (computerized) system

Components of Project Components of Project Management StandardsManagement Standards

• Prescribed project phases and major deliverables

• Prescribed tools & techniques• Classification of projects• Forms used

– Task lists– Change control– Status reports

• Prescribed schedules for time collection and reporting

• Specified automated tools

Benefits of Automated Benefits of Automated Information Tools Information Tools

• Creating plan models– Incorporates standard methodology– Insures completeness

• Creating “what if” scenarios– Facilitates negotiations

• Communicating– Task or “to do” lists– Graphics (network /Gantt)– Management reports

• Project change– Re-calculating critical path– Re-scheduling

Suggested DiscussionsSuggested Discussions• Specific characteristics of your project(s) and

their implications in terms of project management• Relationship between objectives, tasks and

outputs• Appropriate tool(s) to be used in planning your

projects• Time and cost estimation – how and accuracy• Difficulties in attempting project control• Process of collecting data about cost, schedule

and work accomplished• Project termination and extension – reasons and

management