V.Liberzon /Spider Management Technologies/ E-mail: [email protected] People who lack sufficient practical experience in Project Management meet with

PROJECT MANAGEMENT PROJECT MANAGEMENT LOGIC AND PMBOKLOGIC AND PMBOK™™

STRUCTURESTRUCTURE

Vladimir LiberzonVladimir Liberzon

Spider Management TechnologiesSpider Management Technologies

Moscow PMI ChapterMoscow PMI Chapter

E-mail: [email protected]

V.Liberzon /Spider Management Technologies/ E-mail: [email protected]

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PMBOKPMBOK™™ STRUCTURE STRUCTURE

People who lack sufficient practical experience in Project Management meet with difficulties when they try to get a clear picture of PM logic from A Guideline to the PMBOK™.

Novice managers often try to divide responsibilities among PM team members in accordance with knowledge areas (Time manager, Cost manager, Quality manager, etc.).


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Most PM knowledge areas are closely interrelated and can hardly be separated from each other. For instance, one cannot change project schedule without affecting project cost. Besides, it is impossible to control time or cost (success indicators) directly but only through resources or technologies.


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Some of knowledge areas are project success indicators (scope, time, cost and quality), others are management tools (human resources, communications, risks, procurement).

You can analyze time or cost performance and then make corrective moves using resources or technologies.


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A Guideline to the PMBOK™ can be successfully applied to projects only at those levels where details are not important. But it does not provide enough fine tools for more precise practical project management for which the resource management is the core issue.


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I believe that ideological content of A Guideline to the PMBOK™ can be reorganized in a more instructive, process-oriented way.

I think that it is necessary to recognize six main PM processes instead of five described in a Guideline to the PMBOK™.

The additional process is Analysis.


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PM PROCESSESPM PROCESSES

PROJECTMANAGEMENT

PROCESSES

PLANNING

ANALYSIS

CONTROL

INITIATION

CLOSING

EXECUTION


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PM KNOWLEDGE AREAS & PM KNOWLEDGE AREAS & PM LOGICPM LOGIC

PM functions (knowledge areas) activated in each of these processes vary significantly.

Description of PM ideology could not be complete without including Resource management as a core separate entity.

It is necessary to connect PMBOK™ with the logic of PM processes.

The PM logic used in the majority of projects is shown in the next slide.


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PM LOGICPM LOGIC

OBJECTIVES

SCOPE

CRITERIA

MAIN TOOLS

INTERMEDIATETOOLS

PROJECT RESULTS

SCOPE DEFINITION

SUCCESS CRITERIA CONSTRAINTS

COST TIME QUALITY SCOPE

RESOURCES TECHNOLOGIES

Contracts Organization Communications Human Resources

RISK ANALYSIS


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DIFFERENCE BETWEEN DIFFERENCE BETWEEN APPROACHESAPPROACHES

Russian way of planning projects (especially in construction industry) is frequently based on federal, local, industrial or corporate norms and standards. These norms usually refer to resource productivity, cost and material per unit of activity volume (volume of work to be done). Usage of these norms affects the way of planning project activities.


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DIFFERENCE BETWEEN DIFFERENCE BETWEEN APPROACHESAPPROACHES

Activity Duration Estimating in A Guideline to the PMBOK™ doesn’t employ this approach. Actually A Guideline to the PMBOK™ does not even employ the concept of activity volumes.

Estimation of activity volumes is associated with resource planning, cost estimation, staff acquisition, solicitation planning, schedule development, cost budgeting and project plan development.


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PROJECT SCHEDULE PROJECT SCHEDULE DEVELOPMENTDEVELOPMENT

LIBRARY OFTYPICAL PROJECT

FRAGNETS

DATABASE A:ACTIVITY TYPES -MATERIALREQUIREMENTS PERUNIT OF VOLUME

DATABASE B:ASSIGNMENT TYPES- RESOURCEPRODUCTIVITIES

DATABASE C:ASSIGNMENT TYPES –RESOURCE PERCENTALLOCATED

PROJECTSCHEDULE

LIST OF PROJECTFRAGNETS AND

ACTIVITIES

FRAGNET ANDACTIVITY VOLUMES

OR DURATIONS

ACTIVITY LINKS

WBS ORGANIZATIONALBREAKDOWNSTRUCTURE

LIST AND QUANTITYOF PROJECT

RESOURCES ANDMATERIALS

RESOURCEASSIGNMENTS

DATABASE D:RESOURCE TYPES –MATERIALREQUIREMENTS PERWORK HOUR

DATABASE E:ASSIGNMENT TYPES- FIXED MATERIALREQUIREMENTS PERUNIT OF VOLUME

FIXEDACTIVITYMATERIALREQUIREMENTS

FIXEDASSIGNMENTMATERIALREQUIREMENTS


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MAIN DIFFERENCE MAIN DIFFERENCE BETWEEN APPROACHESBETWEEN APPROACHES

The main difference between the described approaches to the Project Schedule Development is as follows:

if you use activity volume and resource productivity as input into planning process, then activity duration and cost may be estimated only after assigned resources have been chosen and project schedule calculated.


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ACTIVITY COST ACTIVITY COST COMPONENTSCOMPONENTS

ACTIVITY COST

FIXED ACTIVITYCOST

ASSIGNMENT COSTS

FIXEDASSIGNMENT

COST

RESOURCECOSTS

FIXEDASSIGNMENTMATERIAL COSTS

{RESOURCE RATE} *{ASSIGNMENTDURATION}

{MATERIAL REQUIREMENTPER RESOURCE WORK HOUR} *{MATERIAL UNIT COST} *{ASSIGNMENT DURATION}

All Resources

{MATERIAL UNIT COST}* {FIXED ASSIGNMENTMATERIALREQUIREMENTS}

All Materials

FIXED ACTIVITYMATERIAL COSTS

{MATERIAL UNIT COST} *{FIXED ACTIVITY MATERIALREQUIREMENTS}

All Materials

All Materials

All Assignments


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RESOURCE ANALYSISRESOURCE ANALYSIS

Resource analysis is essential part of project execution analysis. Monitoring of the actual resource performance permits to employ methods of adaptive forecasting to predict trends and future resource productivity and cost. Usage of project resources varies at different phases and forecasting that takes these differences into consideration is considerably more accurate than the methods of Earned Value Analysis.


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RISK ANALYSISRISK ANALYSIS

Methods of Risk analysis (PERT, Monte Carlo) should include estimations and simulations of activity volume, resource productivity, resource availability, etc. (not only duration and cost as in A Guideline to the PMBOK™ ).

Other sections of A Guideline to the PMBOK™ also have to be revised if low level Resource management processes are to be considered.


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RECOMMENDATIONSRECOMMENDATIONS

Introduction of Resource management into A Guideline to the PMBOK™ calls for revision of ideological content and structure of the latter.

It is vital to understand that some project parameters are indicative, while the others are the tools for project control.


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RECOMMENDATIONSRECOMMENDATIONS

Analyzing project performance we measure and analyze the indicative components for making decisions on corrective moves, while the project control tools are used for improving project performance. It would be helpful to divide Control processes into two process groups - Analysis and Control.


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BENEFITSBENEFITS

•Better understanding of PM logic and PM processes.

•Establishing technological standards for low level Project Management.

•Developing Project Management Technological Guideline.

Documents

V.Liberzon /Spider Management Technologies/ E-mail: [email protected] People who lack sufficient practical experience in Project Management meet with