Project Management Overview - Information Services and ... · PDF file1 Project Management Overview ©Dr. Katia Passerini, Dr. Asokan Anandarajan New Jersey Institute of Technology

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Project Management Overview

© Dr. Katia Passerini, Dr. Asokan AnandarajanNew Jersey Institute of Technology

Outline

• Project Management Basics• The Life of A Project

• Initiating• Planning• Executing• Controlling• Closing

• Tools and Templates • Technologies• Readings & Web References

Disclaimer: This is an overview module.We encourage learners to enroll in semester-long project management

courses for a complete treatment of this topic.

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Critical Thinking & Analytic skills

Learning Objectives and Skills

• Be able to explain the Fundamentals of Project Mgt – Project budgets, timelines, specifications– Project lifecycle

• Recognize and use Project Scheduling techniques– Milestones, Gantt, Precedence Diagrams, PERT

and Critical Path

• Familiarize with Project Control mechanisms– Examining variances, project plan and human

resource controls

– Financial Controls, cumulative project variance, earned value approach

• Calculating estimates to complete (ETC)– Financial considerations

• Top-down and bottom up cost estimating, opportunity costs, TVM, DCF, IRR, capital budgeting techniques

Content-specific skills

Critical Thinking & Analytic skills

Skills developedStudents will

Covered in a separate module

Learning Objectives and Skills

• Understand team management– Types of teams and team lifecycle

• Recognize the importance of Project documentation and evaluation– Mechanisms and tools for document management and

project evaluation

• Recognize available software for Team and Project Management– Sample PM software (Excel; MS Project; other open-

source software)

Teamwork skills

Communication skills

Technology skills

Skills developedStudents will

Covered in a separate module

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Project Management Key Resources

• The Project Management Institute (PMI.org)– Certifications

• Project Management Professional (PMP)

• Certified Associate in PM (CAPM)

• Program Management Professional (PgMP)

• The Project Management Book of Knowledge 3.0

• Frame, D. Managing Projects in Organizations Books & Materials (including CD-ROM)

Projects & Project Management

• “A project is a temporary endeavor undertaken to create a unique product, service, or result”(PMBOK)– Characteristics:

• It is directed at a specific result

• It involves the coordinated undertaking of interrelated activities

• It has a limited time duration

• It is unique– (Frame)

• Project Management– “Is the process of

bringing a project to fruition in an effective manner”(Frame)

• Generally means

On time

On budget Specifications/SCOPE

4

Program Management

• “A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.” (PMBOK)

• It supported by the Program Office (PO or Project Management Office - PMO)

• Prioritisation• Classification• Selection

INFORMATION FLOW

PROGRAM

PROJECTS

The Project Life Cycle

Source: Department of Veterans Affairs, Project Management Guide

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Different Life Cycles • Gradual buildup• Slow wind-down

• Hardware vs. software; L-T S-T; incremental progress major breakthrough; low high risk; small large; simple complex; single multiple; low tech state of the art

Sou

rce:

GN

SE

Gro

up

Project Management Knowledge Areas


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Project Initiation

1. Involves starting up the project

2. Defining its purpose and scope– Entails clearly understanding

needs• The needs will drive the

definition of functional and technical requirements

3. Justifying the project (biz case & feasibility study)

4. Forming the team5. Setting up project office

• Critical errors may occur in needs identification because:– Needs are dynamic– Customers do not know what they

want • Until after they see it!

– Multiple customers within an organization have conflicting needs


Project Planning

Source: Adapted from Department of Veterans Affairs, Project Management Guide

Scheduling

Risk

CostCost

• This entails entering into a detailed project planning phase by focusing on multiple tasks and deliverables

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Planning tools and techniques• Several planning tools and

techniques are available• They are not always

appropriate as you need to consider– Level of project risk– User-friendliness of the

planning tool– Costs associated with

planning tools

• Some tools / products offer integrated templates and solutions (see Method 123 consulting)

• In some cases, some tools are made easy to use by software vendors who develop templates for the general public (see Microsoft templates)

Planning and control consume resources, so you must estimate your tolerance level. “For a project to succeed you must have good planning and control.

However, good planning and control will not ensure the success of a project (Frame)”

Total project costs

Task perfor-mance costs

Administra-tion costs= +

Example of Planning Tools

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Scheduling ToolsScheduling Tools

• Work Breakdown structure (WBS)– Includes a list of related

project-tasks • Gannt charts

– Representation of project steps against a timeline

• Milestones charts– Articulation of key project

deliverables• Network diagrams

– PERT (Program Evaluation and Review Technique)

– CPM (Critical Path Method)– Etc.

(a simple process chart?)

Simon Shutter, February 13, 2004 – post form Edward Tufte Websitehttp://www.edwardtufte.com/tufte/index

1.0Automated

Software System

1.1Prime Mission

Product

1.2Platform

Integration

1.3Systems Eng/

Program Mgt

1.4System Test

& Evaluation

1.5Training

1.6Data

1.7Peculiar

Support Equip

1.8Common

Support Equip

1.5.1Equipment

1.5.2Services

1.5.3Facilities

1.8.1Test &

Measure Equip

1.8.2Support & Handling

Equip

1.1.1Subsystem 1…

(Specify Names)

1.1.2PMP Application

Software

1.1.3PMP System

Software

Source: MS Office templates

Tabular Work Breakdown

Work Breakdown Chart

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GANNT Charts

Source: Richard Steinnon, ZDNet (why Windows is less secure than Linux) post form Edward Tufte Website

LINUX

WINDOWS

Network Diagrams: PERT ChartsPERT stands for Program Evaluation Review Technique, a methodology developed by the U.S. Navy in the 1950s

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Network Diagrams: CPM MethodThe CPM was developed in the

1950s by DuPont, and was first used in missile-defense construction projects (biz equivalent of the PERT).

• Step-by-step technique for process planning that defines critical and non-critical tasks with the goal of preventing time-frame problems and process bottlenecks (whatis.com)

Source: http://press.teleinteractive.net/yackity?cat=82

Similar to Activity on

Arrow

Cost Control ToolsCost Control Tools

• Cost Identification & Management (planned vsactual)

• Resources Identification & Management

• Schedule Control Resource Load Profile

0

2

4

6

8

10

12

14

16

18

Month 1 Month 2 Month 3 Month 4

Project Life Cycle

Reso

urce

s

Project Manager Trainer ProgrammerAnalyst Consultant Total

COST (Euro)

Cost Type Cost Element Baseline Actual Forecast

Development & Implementation 18,550 2,434 18,550

External Resources 0 0 0

Operational/Applicational Mngt 3,783 3,783 3,783

Total System Development 22,333 6,217 22,333

HW/SW Design & Consultancy 1,572 1,572 1,572

HW/SW Acquisition 6,500 6,500 6,500

SW Licences 3,145 3,145 3,145

Total HW/SW Mgnt 11,217 11,217 11,217

Total External Costs 33,550 17,434 33,550

Total Internal Resources 4,564 1,674 4,564

Partial Project Total 38,114 19,108 38,114

Contingency 2,835 100 375

Overall Project Total 40,949 19,208 38,489

HW

/SW

M

anag

emen

tS

yste

mD

evel

opm

ent

Source: Microsoft Templates

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Variance Control

Variance Analysis

($450)

($400)

($350)($300)

($250)

($200)

($150)

($100)($50)

$0

$50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Period

$ (0

00)

Cost Variance (CV) Schedule Variance (SV) Variance at Completion (VAC)

Jan Feb Mar Apr May Jun JulBudget at Completion (BAC) $1,230 $1,230 $1,230 $1,230 $1,400 $1,400 $1,400Earned Value (EV) $100 $200 $300 $450 $750 $800 $1,125Actual Cost (AC) $100 $205 $315 $600 $800 $1,000 $1,200Planned Value (PV) $100 $220 $325 $550 $725 $925 $1,175Cost Variance (CV) $0 ($5) ($15) ($150) ($50) ($200) ($75)Schedule Variance (SV) $0 ($20) ($25) ($100) $25 ($125) ($50)Cost Performance Index (CPI) 1.00 0.98 0.95 0.75 0.94 0.80 0.94Schedule Performance Index (SPI) 1.00 0.91 0.92 0.82 1.03 0.86 0.96Estimate to Completion (ETC) $1,130 $1,056 $977 $1,040 $693 $750 $293Estimate at Completion (EAC) $1,230 $1,261 $1,292 $1,640 $1,493 $1,750 $1,493Variance at Completion (VAC) $0 ($31) ($62) ($410) ($93) ($350) ($93)Status based on Average Performance Index GREEN YELLOW YELLOW RED YELLOW RED YELLOW

Comments New baseline set

Earned Value Analysis

$0

$200

$400

$600

$800$1,000

$1,200

$1,400

$1,600

$1,800

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Period

$ (0

00)

Budget at Completion (BAC) Actual Cost (AC)Earned Value (EV) Planned Value (PV)

Financial Module

Source: Microsoft Templates

Risk Control ToolsRisk Control Tools

• Risk could be mapped into dimensions such as: Value & Manageability – Allows defining the priority of intervention if

mitigation tasks are required. RISK ANALYSIS DETAIL

Risk Area & ElementImpact

(I)Probability

(P)Value of Risk

(V.R. = I*P)Manageability of Risk (M.R.)

Mitigation Process - Actions Responsible Due Date

Data Migration & Go Live 2.00 2.50 5.00 3.00

The System Activation Procedure is not yet well defined

2.00 3.00 6.00 3.00System Integrator define a Go Live Procedure and tests the duration of the activities

System Integrator

31-Jul-02

The "big bang" start does not guarantee system availability for all users in case of failure

2.00 2.00 4.00 3.00Project Manager with SI and QA prepare atasck force to be ready for any intervention 24/24 hours

Project Manager ,Q.A, System Integrator, IT

Program Office

31-Jul-02

Resources 2.50 2.50 6.25 1.50

The System Integrator has not access to Key Users 3.00 3.00 9.00 2.00

SI Change Management Leader prepares a schedule for key users and Project Manager require key user availability with maximum priority to their Responsibles

S.I Change Management

Leader, Project Manager

30-Apr-01

Key user do not participate to prototyping sessions 2.00 2.00 4.00 1.00Project Manager requires availability of key users for prototyping sessions and SI check their participation

Project Manager, SI Project manager

30-Apr-01

Source: Booz Allen

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Variables (example)• Value of Risk (V. R.) The Value of Risk is the result of the product of Impact and Probability (V.R.=I*P)

– Value of Risk (V. R.) Value Description– Low (L) 1 - 3 The level is not critical– Medium (M) 4 - 5 Specific monitoring and actions are required– High (A) 6 - 9 The risk requires maximum priority

– Impact of Risk (I) The Impact of the Risk indicates the relationship between the Risk and the Project Activities – Impact of Risk (I) Value Description– Low (L) 1 Impact in only one activity– Medium (M) 2 Impact on more activities– High (A) 3 Impact on activities of the Critical Path

– Probability of Risk (P) The Probability of Risk indicates the possibility that the problem effectively takes place – Probability of Risk (P) Value Description– Low (L) 1 Low Probability– Medium (M) 2 Medium Probability– High (A) 3 High Probability

• Manageability of Risk (M.R.) The Manageability of the Risk indicates the possibility of monitoring the possible problem and of effectively operate with the defined mitigation actions.

– Manageability of Risk (M.R.)Value Description– Low (L) 3 It is not possible to guarantee the problem monitoring– Medium (M) 2 The risk is partially under control and actions are partially

applicable– High (A) 1 The risk is under control and the actions are totally

applicable

Source: Booz Allen

Project Execution

Includes i.e.• Develop Team• Select Sellers• Perform Quality

Assurance• Contract

administration


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Project Control


• Involves the regular review of metrics &report status to identify variances from the baseline.

• Project Reporting and Control Tools– Driving Board: to present periodically the status of the project to the

management, including the main performance indicators (status, tendency, times, costs and the main issues)

Project Status

Project Tendency (previous)

Project Tendency

(actual)TIMES COSTS (M£)

ProjectProgram

Office Responsible

PjType

IT/BusinessImpact

(11-10-99)

Baseline Start Baseline End Forecast End Budget Forecast Actual

Project 1 X A A - 26-Nov-99 14-Dec-99 - - n/a

Project 2 X A A Closed 30/10/99

n/a - 22-Nov-99 22-Oct-99 - - n/a

Project 3 X I A - 30-Oct-99 - - n/a

Project 4 X I A - 30-Oct-99 - - n/a

Project 5 X I - A A Closed 30/10/99

n/a - 30-Jul-99 30-Oct-99 - - n/a

Project 6 X I - A A n/a 15-Oct-99 20-Dec-99 - - n/a

Total - -

Source: Booz Allen

Project Control Tools: Driving Board

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Document Management Tools• The ' Project Documentation Management ' is a procedure that

defines how to describe/code and store the documentation and a series of examples of forms/documents typical for every project (Meeting Minute, Team Schedule, Detail and Functional Specification, User Requirement, Communication).

user requirements

annexes

user manuals

User Documentation Test Plan(TP)

minutes

communications

agenda

presentations

Module Control

functional specs.

technical specs.

annexes

Technical Documentation

Module MH(Material Handling)

Source: Booz Allen

Meetings Management– Progress Meeting with specific actions to be performed

• Defines date, participants and arguments and writing the minutes. • The Project Manager checks if the agreed actions are performed on time and with

the expected result.

F.G .P. M eeting M inutes ProjectDate:

A ttendees:A uthor:

Distribution: A ttendees - C C:

Subjects: 1. Project Status2. K ick off m eeting3. A O B

A ttachm ents: Title File Directory

Ref. Previous Tasks Resp. D ue date O K1

2

3

Ref. N ew agreed Tasks Resp. D ue D ate O K1

2

C ontents

1 – Project Status

Source: Booz Allen

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Change Management• An aspect of project control

involves managing change• This can be accomplished, for

example, by defining clear procedures to keep track of change requests– (see the change request template

in the next slide)

• If the requested change exceeds certain budget limits or has major implications on time and resources required to manage the project, a formal group of reviewers may be called upon to prioritize change– This group is called the change

control board (CCB)

• The CCB takes the responsibility for denying change requests, which is particularly useful in case of “pushy” clients who may influence the project manager.

Change Requests Tools• The 'Change Request Management' consists in a procedure that

defines how to manage issues and scope change requests

PROJECT PRGTnnnn Implementation Date:SCOPE CHANGE REQUEST LIST

Code Role Name Team Title StatusReason of Closure Budget Actual Total Cost Role Name Team Start Insertion Study

Study Payment

Implementation

Implementation Payment

4/5/01

Applicant ResponsibleScope Change Request Dates

Documents Tasks Consequences Cost Analysis

Solution



Study Payment

Implementation


4/5/01



Solution



Study Payment

Implementation


4/5/01



Solution

PROJECT PRGTnnnn Implementation Date:ISSUE LIST

Code Role Name Team Title Type Area Status Role Name Team Start Due DateActual

EndPriority Date % Documents Actions

Progress Tasks

4/5/01

Applicant Issue Responsible Dates

Source: Booz Allen

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Project Closing

• Completion and closeout of any contractual agreements with suppliers or providers

• Formalizing customer acceptance

• Closeout of any financial matters

• Preparation of the project’s final performance report

• Conducting a project review• Documenting lessons learned• Completing, collecting and

archiving project records• Celebrating project success.


Project Management Software• Proprietary

– MS Project• http://office.microsoft.com/en-us/project

– Primavera• http://www.primavera.com/

– Omni Group – OmniPlan(for Mac)

• http://www.omnigroup.com/

– Planning force• http://www.planningforce.com/

– Artemis• http://www.aisc.com/Product/1#Progr

am%20and%20Project%20Management

• Open Source– GanttProject

• Gantt chart based project scheduling & mgt tool

• http://ganttproject.biz/

– Open Workbench• http://www.openworkbench.org/

– Achievo• http://www.achievo.org/

• Web-based (hosted)– Ace PM

• http://www.aceproject.com/

– Inventix• http://www.inventx.com/

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Readings & Web References

• Frame, D. (1996) Managing Projects in Organizations

• PMI, PMBOK 3.0• Critical Path Method tutor

– http://www.cpmtutor.com/index.html

• Review of PM Software– http://www.klambauer.info/pms.pdf

• Other hyperlinks listed in the slides