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2. PAE AcFn621 Ch-2 Principle ppt.pptx

  2. Concept of Project Planning Project Planning involves understanding the fundamentals of a project: What business situation is being addressed? –What do you need to do? –What will you do? –How will you do it? –How will you know, you did it? –How well did you do?
  3. Project Management • Project Management is an application of knowledge, skills, tools and techniques to project activities to meet project requirements.
  4. Integration Management • Fitting everything together • Planning • Project Changes
  5. Project Time Management • Time and Schedule –Planning –Managing
  6. Project Cost Management • Manage costs –Out of your control –Competing projects
  7. Project Quality Management • Planning quality • Enforcing quality • Checking quality control
  8. Project Human Resource Management • Organizational planning • Staff acquisition • Making a team
  9. Project Communications Management –Communication plan Project Risk Management –Risk management plan Project Procurement Management –Acquisition and contract management
  10. Reasons for Project Failure 1. Poor project and program management discipline 2. Lack of executive-level support 3. No linkage to the business strategy 4. Wrong team members 5. No measures for evaluating the success of the project 6. No risk management 7. Inability to manage change
  11. Project Success Criteria • On time • On budget • Meeting the goals that have been agreed upon
  12. Scope of the Project Develop and gain approval of a general statement of the goal and business value of the project. • Eliciting the true needs of the project • Documenting the project’s needs • Negotiating with the sponsor/senior management how these needs will be met • Writing a one-page description of the project • Gaining senior management approval to plan the project
  13. Launch the Project Recruit the team and establish team operating rules. • Recruiting the project team • Writing the Project Description Document • Establishing team operating rules • Establishing the scope change management process • Managing team communications • Finalizing the project schedule • Writing work packages
  14. Tools, Templates & Processes used to Scope Project • Establish the Conditions of Satisfaction (CoS) • Project Scoping Meeting • Requirements Gathering • Diagramming Business Processes • Validating Business Cases • Procurement Management • Outsourcing • Project Overview Statement • Approval to Plan the Project
  15. Project Manager • Ultimately responsible for the Project’s Success • Plan and Act • Focus on the project’s end • Be a manager & leader
  16. Major Traits of Good Project Managers Trait 1 Enthusiasm for the project Trait 2 Ability to manage change effectively Trait 3 A tolerant attitude toward ambiguity Trait 4 Team – building and negotiating skills
  17. Major Traits of Good Project Managers Trait 5 A customer-first orientation Trait 6 Adherence to the priorities of business Trait 7 Knowledge of the industry or technology
  18. Project Constraints Triangle
  19. Classification By Project Management • Traditional PM –Follows the linear, waterfall model • Incremental planning PM –Delivers the project in incremental stages –Reduces risk of delivering everything at once • Iterative planning PM –Allows project to evolve as understanding increases –Allows management and stakeholder expectations / operational challenges to be clarified
  20. Conti… • Adaptive planning PM –Allows project purpose & goals to evolve as project proceeds –Project planned in cycles: goals & requirements reviewed each cycle • Extreme planning PM –Involves users and/or client in constant input / review of requirements –Needs small group of project team working closely
  21. Project Life Cycle
  22. Characteristics of the Project Life Cycle Although projects are unique and highly unpredictable, their standard framework consists of same generic lifecycle structure, consisting of following phases: –The Initiation Phase: Starting of the project –The Planning Phase: Organizing and Preparing –The Execution Phase: Carrying out the project –The Termination Phase: Closing the project
  23. Project Phases • Initiate the project • Identify the Project Manager • Develop the Project Charter • Conduct a Feasibility Study • Define Planning Phase • Sign off on the Project Charter
  24. Project Planning Phase • Organize and staff the project • Develop a Project Plan • Sign off on the Project Plan
  25. Project Execution Phase • Execute the Project Plan • Manage the Project Plan • Implement the project’s results • Sign off on project’s completion
  26. Project Close-out Phase • Document the lessons learned during the project • After-implementation review • Provide performance feedback • Close-out contracts • Complete administrative close-out • Deliver project completion report
  27. Activity of Project • Read case study • Identify stakeholders –Project sponsor –Customer(s) –Functional Managers –Steering committee –Working committee
  28. Steering Committee • Group of stakeholders who approve and agree on: –Project scope –Schedule –Budgets –Plans –Changes
  29. Feasibility Study • A general estimate used to determine whether a particular project should be pursued.
  30. Business Goals & Objectives • Need to understand: –Goals (the need for the project and the measurable benefits) –Scope –Time to complete –Estimates of timeline, resource requirements and costs
  31. SMART Goals • S – Specific • M – Measurable • A – Agreed upon • R – Realistic • T – Time related
  32. Statement of Work (SOW) • Purpose of statement • Scope of statement • Project deliverables • Goals & objectives • Cost and schedule estimates • Stakeholders • Chain of command • Benefits and risks • Assumptions and constraints • Communication plan
  33. Activity of SOW • Create a SOW for the case study –Purpose –Scope –Project deliverables –Goals and objectives –Cost and schedule estimates
  34. Risk Management • Identify –Sources of risk • Funding • Time • Staffing • Customer relations • Project size and/or complexity • Overall structure • Organizational resistance • External factors
  35. Risk Analysis • Probability • Impact • Overall exposure = probability X impact
  36. Risk Plan • Accept • Avoid • Mitigation • Contingency with trigger • Transfer
  37. Constraints • Real-world limits • Typical constraints: –Budget –Schedule –People –Real world –Facilities and equipment
  38. Project Planning • Work Breakdown Structure • Network diagramming • Scheduling • Budgeting
  39. Work Breakdown Structure (WBS) • Breaks large project into manageable units –Total project –Subprojects –Milestones (completion of an important set of work packages) –Major activities (summary tasks) –Work packages (tasks, activities, work elements)
  40. Work Packages • Way of managing the project by breaking it down • Help determine skills required and amount of resources needed • Communicate work that needs to be done • Work sequences are identified and understood
  41. WBS tips • Deliverables should be clearly stated • All work in the same package should occur at the same time • A work package should only include related work elements
  42. Contingency • Don’t pad estimates – Will never get good estimates – Adds expense and time • Add contingency as an activity – Typically 10-15%
  43. Critical Path & Float • Critical Path –Sequence of tasks that forms the longest duration of the project • Float –Amount of time that an activity may be delayed from its earliest possible start date without delaying the project finish date –Latest possible finish date – earliest possible start – duration = total float
  44. Normalizing the Schedule • Assign people to the schedule • Start with the critical path first, non- critical tasks second
  45. Loading and Leveling • Resource Load – the amount of work that is assigned to a resource • Resource Leveling – redistribution to even out the distribution of work across all resources
  46. Scheduling Tips • Ensure that learning time is identified • Ensure that administration time is included • Be aware that resources seldom work 100% of the time on one project
  47. Budgeting Budget = People + Resources + Time
  48. Budgeting Levels • Ballpark Estimate • Rough Order of Magnitude • Detailed Estimate
  49. Types of Budgeting • Bottom-up • Top-Down • Phases
  50. Direct & Indirect Costs • Direct costs –Directly attributed to the project • Indirect costs –Shared amongst other projects
  51. Network Diagram Rules • Boxes hold description of each task • Lines connect activities to one another • Activities are laid out horizontal from left to right • Parallel activities are in the same column • Precedence is shown by drawing lines from activity to activity –One activity may depend on the completion of multiple other activities
  52. Lead and Lag • Lead – amount of time that precedes the start of work on another activity • Lag – amount of time after one activity is started or finished before the next activity can be started or finished
  53. Network Diagrams • PERT – Performance Evaluation and Review Technique –Better for software-oriented projects –Uses 3 time estimates to determine most probable • CPM – Critical Path Method –Better for construction type projects –One time estimate
  54. PRINCIPLES OF PROJECT MANAGEMENT • Principle 1: Vision and Mission • Principle 2: Business Objectives • Principle 3: Standards of Engagement • Principle 4: Intervention and Execution Strategy • Principle 5: Organizational Alignment • Principle 6: Measurement and Accountability