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Systems approach
          to
 Project Management
             By

Institute of Public Enterprise
          Hyderabad
Characteristics of Project

   Has Objectives
   Has a Schedule
   Has Complexity
   Has a Size and Nature of Tasks
   Needs Resources
   Needs Organization Structure
   Has Information and Control Systems
   Has Progressive Elaboration
   Frequently influenced by the Environment
   Mostly some of the stakeholders have vested interests
Challenges being faced in Project Management

•    1.
•    2.
•    3.
•    4.
•    5.
•    6.
•    7.
•    8.
•    9.
•    10.
When do we declare a project Successful

1. -
2. -
3. -
4. -
5. -
6. -
7. -
8. -
9. -
10. -
11. -
12. -
Benefits of following Project Management
                      Principles
 A clear focus on TASK/Project.
 Buy in by all the stakeholders.
 Tight achievable targets by way of Time and Cost.
 Optimum Resource utilization.
 Roles and responsibilities of all associated with the task/project, well
  defined.
 Good Communication practices used to accelerate the task/project
  and to keep all stakeholders happy.
 Well established world practices/processes enable formal initiation
  and proper closure of the task/project.
 Close monitoring to avoid deviation from set targets.
 A good risk management exploits every opportunity and minimizes
  the effect of adverse events to get best task/project results.
Projects-Examples
•   1
•   2
•   3
•   4
•   5
•   6
•   7
Project Definition

A Project is a temporary endeavor
       undertaken to create
   a unique product or service
                And
    is Progressively elaborate.

( Discuss Difference between Project and Operation)
Project Management- Definitions
• Project Management is the application of knowledge and skills of the Project
  team and using required tools and techniques to meet Project Objectives.
• Process of Converting a Concept into a Reality-Efficiently within given
  Resources and Time.
• Project management is a highly demanding and complex task. It requires
  organizational skills, the foresight to anticipate the unexpected, and the ability
  to monitor progress and change course as needed.
• Project management is about managing people so they achieve valued end
  result.
• If change is becoming routine and is being encountered on a regular
  basis, project management principles can certainly be employed to meet the
  challenges of change.
         (The better we know the project, the better we can manage it)
What are Project Phases
• The stages in which a Product gets developed from concept are
  called phases like:- Idea, Conceptualization, Develop Prototype,
  Project Report, Design, Execution, Commissioning, Operation
  etc.
• Each phase is associated with one or more deliverables which
  are Tangible, Verifiable work products.
• Conclusion of a phase is marked by review of key deliverables
  and project performance to determine if project should
  continue to next phase.
• The idea is the defects have to be identified and corrected at
  the end of each Phase, so that the cost of rectification is lower
  when detected and corrected as early as possible.
Progressive Elaboration
• What is Progressive elaboration?
   – continuously improving and detailing the plan as more
     detailed & specific information and more accurate
     estimates become available
• Why Progressive elaboration?
   – Potential for change
   – Iterative nature of the project management plan
   – Progressive elaboration is throughout the project lifecycle
• Progressive elaboration allows…
   – The project management team to manage the project to a
     greater level of detail as the project evolves.
Product Lifecycle
            vs
Project Management Lifecycle

      • Discuss and Evolve
Common Lifecycle Characteristics

• Cost - month( period ) wise & Cumulative
• Level of Uncertainty
• Risk in achieving the Project Objectives
• Impact if a Risk occurs
• Stakeholders ability to influence the final
  outcome of the project
• Cost of changes
Areas of Expertise needed by the
           Project Team
                               Project Management
                                Body of Knowledge

                                 PMBOK Guide

                                                          Application Area
Inter Personal Skills                                       Knowledge,
                                                           Standards and
                                                            Regulations




                GM Knowledge                        Understanding
                  and skills                          the project
                                                     environment
Processes
• Process Definition- a series of activities when
  performed in a predetermined sequence, brings
  about the desired results, repetitively.
• Product Oriented Processes
  – Specify and create the project’s product( Application
    based processes-
    Fabrication, Welding, Erection, Commissioning, Techn
    ology based Etc) )
• Project Management Processes
  – Interact with Product Oriented Processes, organize
    and overview them in a manner to achieve the set
    project objectives.
Interaction of-
                Product Oriented Process
.                        and
           Project Management Processes
                     Project Management Processes




    IDEA        Product Oriented Processes          PRODUCT
Project Management Processes and
           their communication channels
    Sponsor
                                 Authorization of
Business Case OR                 Project Charter
  Project SOW       Initiating                    Planning          Project
       OR          Processes-2                  Processes-20       Plans and
                                                                    Updates
    Contract
                                    Changes

                            Monitoring                Status         Executing
                           & Controlling                            Processes-8
                                                     Guidance
                           Processes-10

                       Accepted Deliverables                      Lessens Learned
                                                      Closing
                                                    Processes-2   Deliverables+
                                                                  Knowledge
Project Management Boundaries
                                    Project Boundaries

                                       Monitoring &                      Deliverables
                                                                                        End
                                    Controlling Processes                               Users
                                            Planning Processes


Initiator/   Project   Initiating                                            Closing
Sponsor      Input      Process                                              Process




                                            Executing Processes
                                                                                        Process
                                                                         Records & LL
                                                                                        Assets

                                        P                        A




                                    D                                C
Overlap of process groups



                                    Executing Processes


                   Planning
                   Processes
    Initiating                                            Closing
     Processes                 Controlling Processes
                                                          Processes



Project/          Time                                    Project/
Phase start                                               Phase end
PMO
• Shared resources
• Common Processes and Methodologies
• Clearinghouse and management of
  policies, processes, templates etc
• Centralized configuration management, Risk repository
• Centralized management of tools and dashboard
• Mentoring and coaching for Project Managers
• Centralized monitoring of projects, programs and
  communication
• Coordination of overall project quality standards
Enterprise Environmental Factors
 Organizational Culture and Structures and processes
 Governmental / Industry standards
 Infrastructure
 Existing human resources and personnel administration
 Company Work Authorization systems
 Commercial data bases
 Marketplace conditions
 Project management information system
 Political climate
 Organization’s established communication channels
Organizational Process Assets

    Processes and Procedures                 Corporate Knowledge Base
•   Organizational Standard Processes    • Process measurement database
•   Standardized Guidelines, Work        • Project files
    instructions
                                         • Historical information
•   Criteria for performance
    measurement, proposal evaluation     • Issue / defect management
•   Templates                              database
•   Tailoring guidelines                 • Configuration management
•   Project Closure guidelines             knowledge base
•   Procedures on financial              • Financial database
    control, change control, issue and
    defect management
•   Risk categorization and control
Project Management Process Groups …
           Project                               •PSOW                  Initiating Process
           Sponsor                        •Business case                      Group
                                               •Contract
                                                                                •Project Charter
                                                                                •Stakeholder Register
                                                                                •Stakeholder management strategy
         Enterprise/
                                  • OPA                                 Planning Process
         Organization
                                                                             Group
                                                                                                                        • PMP
                                                                                                                                                            Monitoring
• OPA
• EEF                                                                                                                                                          and
                                                                     Project                           • PMP                                                 Control
                                                                                                       • Make or buy
             Customer              •Requirement                     Documents                                                                                Process
                                                                                                                                                             Group

                                                                                                                       • Approved CR
                                                                        Executing Process                              • QC Measurement
                                               • Proposal                    Group                                     • Per Reports
                                                                                                   • Deliverables
                                                                                                       •CRs, WPI
                                    Sellers                 •Contract                          • Selected sellers


                        • Final Product
                                                                         Closing Process
                                                                              Group
                                                                                                                                    •Accepted Deliverable
                                                                                                                                •Procurement documents
Project Initiation
•   Project Initiation is the process of understanding the inputs given
    by the sponsor in the form of a Business Case, OR Project
    Statement of work, OR Contract received from a customer.
•   Collecting all the data relating to this input from the stakeholders
    involved in identifying that project to arrive at High level
    budget, schedule and arrive at Project Objectives through
    Stakeholder Management.
•   The Charter which is the output of the Initiation Process should
    contain all the inputs necessary for creating a good project
    management plan.
Project Charter
• The Project Charter Documents business needs, current
  understanding of customer’s needs, and the new
  product, service, or result that is intended to satisfy, such as:
   – Project purpose or Justification
   – Measurable Objectives and related success criteria
   – High level requirements
   – High level project description
   – High level risks
   – Summary milestone schedule
   – Summary budget
   – Project approval requirements
   – Assigned Project manager-responsibility and authority
     level.
   – Name and authority of sponsor or other persons
     authorizing charter.
Project Objectives
• The quantifiable criteria that must be met, for the
  project to be considered successful

• Each objective should have a measurable attribute

• Each attribute shall have a yardstick (units)
   – E.g. in Rs for cost, defects in % etc.

• An absolute or relative value to be attached to each
  attribute.

• Key Project Objectives are:- Scope, Quality, Time and
  Cost.
Project Stakeholders
Project stakeholders are individuals and/or organizations who are
actively involved in the project, and/or whose interests may be positively
or negatively affected as a result of project execution/ successful project
completion and who can influence the project Positively/Negatively.

Key stakeholders on every              Other stakeholders
project include the following               Owners and investors
   Project manager                         Suppliers and Contractors.
   Customer/User                           family members. of team
   Performing organization,                Govt./statutory agencies
   Project Team members                    Temporary and permanent
   Project Management Team                 lobbying organizations.
   Sponsor                                 Media, general public and
   Influencers                             society at large .
   PMO ( if it exists )
Develop Stakeholder Management Strategy

•   Categorize the stakeholders
•   Identify as many stakeholders as possible
•   Discuss their interest in the project
•   Prioritize
•   Evolve Stakeholder Management strategy
•   Recommend to the management if the project can
    be successfully managed
Stakeholder Management Strategy


            High


                   Keep satisfied     Manage Closely


Power /
Influence
                     Monitor
                    (minimum           Keep informed
                      effort)



      Low                                              High
            Low              Interest / Impact
Managing a project typically includes…
• Identify Stakeholders
• Gather through appropriate method Their-
  Needs, wants, concerns, and expectations related to Project’s
  Product and Project Execution and any related issue.
• Convert these into REQUIREMENTS through Discussion.(
  Requirements define the Features, Functions, Characteristics
  of the Product and related issues)
• Balancing the competing project constraints that includes but
  not limited to :
          Scope , Quality, Schedule, Budget,
           Resources, and Risk
Requirements documentation and
                 Traceability Matrix
Req. Documentation describe how          Req. Traceability Matrix links the
individual requirements meet             requirements to their origin and
the business need for the project.       traces throughout the project life
• Business Need or Opportunity to be     cycle. It also provides a structure
  seized                                 for managing changes to the
• Project Objectives                     product scope. Reqts are traced
• Functional Requirements                to;
• Non- functional Requirements            Business
• Quality Requirements                   needs, opportunities, goals, and
                                         objectives.
• Acceptance Criteria
                                         Project scope/WBS
• Impact to Organizational Sub systems
                                         Product design.
• Support & Training requirements
                                         Product development
• Requirements Assumptions
                                         Test strategy and scenarios
• Requirements Constraints
                                         High-level requirements.
Plan Project Scope
             Includes processes required to ensure that the project includes-
              “All the work” and “ Only the work” required, to complete the
                                   project successfully.



•      Product scope:                       •          Project scope:
    – The features and functions that            – The work that needs to be
      characterize a product service               accomplished to deliver a
      or result                                    product, service or result with
                                                   the specified features and
                                                   functions.
    – Completion of product scope is             – Completion of a project is
      measured against the product                 measured against the project
      requirements                                 management plan, scope
                                                   statement and WBS
Project Scope Statement – Key elements


   Product scope       Product acceptance
                                            Project deliverables
    description             criteria




  Description of the                        Project constraints
                       Project Exclusions
        work                                 and Assumptions
Assumptions and Constraints
• Assumptions are factors that, for planning purpose, are
  considered to be true, real, or certain without proof or
  demonstration. Assumptions affect all aspects of project
  planning, and are part of the progressive elaboration of the
  project. Project teams need frequently identify, document, and
  validate the assumptions. Assumptions generally involve a
  degree of risk.
• Constraints are defined as the state, quality, or sense of
  being, that will effect the performance of the project or a
  process. Mostly constraints are imposed by the
  Customers, Sponsor or Senior management OR by the nature
  of Project itself. Constraints can also be understood as the
  boundaries imposed upon the project within which it has to be
  planned.
Create WBS

    Scope definition involves subdividing the major project
    deliverables in to smaller, more manageable components (Work
    Packages ) which provide common framework from which:-
•   Planning can be performed.
•   Cost and Budgets can be established.
•   Time, cost and performance can be tracked.
•   Objectives can be linked to company resources in a logical
    manner.
•   Schedules and status reporting procedures can be established.
•   Network construction and control planning can be initiated.
•   The responsibility assignment for each element can be
    established. Organisation Structure will be defined to suit the
    specific Project.
WBS -Decomposition
Involves subdividing the deliverables and sub-
  deliverables into smaller and more manageable
  components until these are defined in sufficient
  detail in following steps:--
• Identify the major deliverable incl. Project Management.The phases of the project
   can be used as first level decomposition.
• Decide if adequate (cost and duration estimate can be developed)
• Identify constituent components which will produce tangible and verifiable
  results.
• Verify the correctness of the decomposition-if lower level items necessary or
   sufficient ; is it clearly and completely defined; if each item can be appropriately-
   Scheduled? Budgeted ? Responsibility assigned?
   ( The decomposition can be done on the basis of Phases, Skill set, Deliverables, Raw Materials etc )
WBS Decomposition

             Level                     Description
               1         Project
               2            Phases
               3               Sub division
               4                 Work Package
               5                    Level of effort

These work packages have to be properly numbered for better project monitoring
and control.
Work Package/ WBS Dictionary
• Represents units of work at the level where the work is managed by the
  Project Team.
• A good work breakdown structure ensures minimum scope creep and better
  clarity and understanding of work among the team members.
• WBS Dictionary details all features of a Work Package:-
     Code of account identifier,
     Statement of work,
     Responsible organization,
     Schedule milestones,
     Contract information,
     Quality requirements,
     Technical references.
    ( Depending on the clarity on the project scope, the immediate phases can be drilled down to
       lower WBS and the future phases can be left at high level till the clarity is achieved.)
Work Breakdown Structure
                                                                             Project summary

                                                                             990 H         SAI-700
Level 2




          Proj. Mngment
                                 Level 2           Design                      Development                    Implement

          80 H   700.01                    310 H       700.02                350 H         700.03         250 H       700.04




                            Prototype.                               Components                          Drawings

                          10 H   700.02.01                          50 H   700.02.02                  250 H     700.02.03




                                            Civil/Structural                  Mechanical                Electrical/Control

                                           180 H     700.02.03.01           30 H       700.02.03.02      40 H     700.02.03..03
Waste Water Treatment Plant


Proj. Mngt
Schedule Development
Define Activities


Sequence Activities


Activity Resource Estimation


Activity Duration Estimation


Develop Schedule
Activity Definition

Identifying and Documenting specific activities that must be
performed to produce deliverables and sub-deliverables
identified in WBS.
                               USING as INPUTS:-
Work Breakdown Structure, Scope statement, Historical
Information, Constraints, Assumptions and Expert
judgments where-ever necessary.
Activity Attributes— Include activity identifier, activity codes, activity
description, predecessor activity, successor activity, logical relationship, leads
and lags, resource requirements, imposed dates, constraints and assumptions.
Activity Sequencing
•Identifying and documenting interactive logical relationship
 including dependencies like:-.
   •Mandatory dependencies (Hard logics)
   •Discretionary dependencies (Soft logics)
   •External dependencies
•Sequenced accurately to support development of realistic and
achievable schedule.
•Modify/update the Activity List where-ever necessary during
sequencing process.

There are 2 methods for sequensing :-
   •Precedence diagramming method PDM
   •Arrow diagramming method ADM
Dependencies- Mandatory

 A                     B                    C                      D


The successor activity is totally dependant on the completion of
   predecessor activity therefore activity B is dependant on
   completion of activity A
Examples
• Foundation work can be started only after the excavation is
   completed and the pit is inspected and approved.
Dependencies- Discretionary

                                                        C


      A                        B                        D


                                                        E

Examples
• The living room can be painted before painting the dining room, although
    it could be done other way round, too – with out constrain
• It is logically possible to paint four walls in a room simultaneously but
    there is only one painter – with constrain
Dependencies - External
     Pipe Welding               Hydro Test               Commission
A                       B                            D

Obtain Approval         Inspection / Certification
                    C


When there is an external inspection mandatory before starting the next
activity.
Arrow Diagramming Method
               ( Activity-On-Arrow AOA, Critical Path Method CPM)



                                                                Dummy

                                    E

                         C                           F
                                  F
        A                                                           H

Start                B                                                   Finish
             Nodes                    D               G

                                                              Activity

            Uses only Finish to Start dependencies
Network – Precedence Diagramming Method

           A             C        E

 Start                                Finish

            B            D        F

                   dependencies
                                      activities
Types of Dependencies.
• Finish to Start
• Finish to Finish
• Start to Start
• Start to Finish
Dependencies

Finish-to-Start (FS)
Task (B) cannot be started until task (A) finishes.

Task A “Reaction” and Task B “Analysis”
• “ Concreting” can't be started until
  “Shuttering” finishes.
                             A

                                              B
Dependencies
Finish-to-Finish (FF)
Task (B) cannot finish until task (A) finishes.

Task A “Wiring” and Task B “Inspection”
• “Inspection” can't finish until “Wiring” finishes.

                                          A

                                      B
Dependencies

Start-to-start (SS)
Task (B) cannot start until task (A) starts.

• Task A "Pour foundation" and Task B "Level
  concrete," "Level concrete" can't begin until
  "Pour foundation" begins.
                                     A

                                         B
Dependencies
Start-to-Finish (SF)
Task (B) cannot finish until task (A) Starts.




                                            A

                                                B
Critical path
                                6

               7     3      8

      5                             4         3        4
 1         2                    5         6        7        8

               4     4     4
                                    9

Critical path – Longest path, float less than or equal to
specified value – mostly Zero.
Path 1-2-3-6-7-8 = 5+7+6+3+4 = 25 units
Path 1-2-4-5-6-7-8 = 5+4+4+4+3+4 = 24 units
Path 1-2-3-5-6-7-8 = 5+7+8+4+3+4 = 31 units.
Path 1-2-4-7-8    = 5+4+9+4     = 22 units
Diagrammatic representation of
             PERT
                                          Earliest Start
Activity identification
                                          Earliest Finish
                          A (8,10)
                  A                   B
                          2 (15,17)

       Activity Time                      Latest Finish
                                          Latest Start
Calculate Slack/Float time

               C,6

        B,7          D,3
              I, 8
A,5                        E,4
      F,4
               G,3   H,4
Step-1- Calculate Earliest Start time TE

                      TE= 12                        TE= 18
                                     C,6

                        B,7                         D,3
                                    I, 8
        A,5                                                           E,4
                      F,4
TE= 0         TE= 5                                          TE= 24
                                     G,3            H,4                     TE= 28
                                                             TE= 21


                            TE= 9
                                           TE= 20
                                           TE= 12
Step-2-Calculate Latest Start time TL
                     TL= 12                        TL= 21
                     TL= 15
                                    C,6

                      B,7                          D,3
                                   I, 8
        A,5                                                          E,4
TL= 0         TL= 5 F,4                                     TL= 24         TL= 28
              TL= 13
                                    G,3            H,4

                          TL= 17
                                          TL= 20
Slack or Float time
Earliest Start- (TE )--- The earliest possible time the said activity can
begin, which means that all the predecessor jobs on which this
activity is dependant, have been completed.
( When the Tortoise reaches the node)
( Highest of the times at a node when analyzing in the Forward pass )

Latest Start – ( T L )-- How late a particular activity can be started
without effecting the overall project schedule.
( Till when the Heir can wait )
( Lowest of the times at a node when analyzing in the Backward pass )

Slack or Float time----

                    Latest Start TL – Earliest Start TE
Critical path – Longest path, float less than or equal to
                             specified value – mostly Zero.

                       TL= 12                              TL= 21
                       TE= 12                              TE= 18
                                         C,6

                         B,7                               D,3
                                        I, 8
        A,5                                                                  E,4
TL= 0          TL= 5   F,4                                          TL= 24         TL= 28
TE= 0          TE= 5                                                TE= 24
                                         G,3               H,4                     TE= 28

                             TL= 17
                                                  TL= 20
                             TE= 9
                                                  TE= 20

              Float / Slack time = Longest time – Earliest time
Critical path – Longest path, float less than or
            equal to specified value – mostly Zero.
                      TL= 12                         TL= 21
                      TE= 12                         TE= 18
                                      C,6

                        B,7                          D,3
                                     I, 8
        A,5                                                            E,4
TL= 0         TL= 5   F,4                                     TL= 24         TL= 28
TE= 0         TE= 5                                           TE= 24
                                      G,3            H,4                     TE= 28

                            TL= 17
                                            TL= 20
                            TE= 9
                                            TE= 20
Activity Resource Estimation

• What resources (
  Persons, equipments, tools, tackles or material )
  and what quantities of each resource will be
  used, and when each resource will be available to
  perform project activities.
• Expert judgment, Alternatives Analysis, Published
  data, Bottom-up estimate are some of the methods
  used to estimate the resources requirement.
• These resources can then be structured into
  categories and types for easy management and
  control.
• A resource calendar is then prepared showing the
  quantity of each resource available during each
  available period.
Activity Duration Estimation
• The process of estimating schedule activity duration using
information on scope of work, resource types, resource quantities
and resource calendars.
•The estimates are generated by the person or group in the project
team who is most familiar with the nature of work.
•The estimate is progressively elaborated to get precise data of
better quality.
•All data and assumptions that support duration estimating are
documented ( Support documents ).
•The effect of identified Risks on the schedule development are
also considered.
•Methods- Analogous, Parametric, 3-Point, Bottom-Up.
Develop Schedule

• Incorporate the Duration estimates on The
  Network Developed.
• Superimpose calendars on the Network.
• Impose any constraints.
• Introduce start date to get the project end
  date.
Network re-planning
1.  Resource Leveling
2.  Resource allocation
3.  Elimination of some parts of project
4.  Addition of more resources
5.  Substitute with less time consuming components or
    activities.
6. Parallelization of activity
7. Shortening longest activities
8. Shortening activities that are least costly to speed up.
9. Shortening activities for which you have more resources.
10. Increasing the working hours.
Resource Histogram
Latest Techniques in Scheduling
• Critical Chain Methods
• Theory of Constraints
Project Cost Estimation
• Estimate Costs is the process of estimating the monetary resources
  needed to complete project activities. Cost estimates are a prediction that
  is based on the information known at a given point in time:-
  Analogous, Parametric, 3-Point Estimate, Bottom-Up.
• Cost estimating is iterative from phase to phase. ROM during initiation
  phase could be ±50%. Later on the estimates could narrow to a range of
  ±10%at the end of Planning process.
• Scope Statement as part of the Scope BL is also an input to the Estimate
  Costs process wherein one basic assumption that needs to be made is
  whether the estimates will be limited to direct project costs only or
  whether the estimates will also include indirect costs.
• Indirect costs are those costs that cannot be directly traced to a specific
  project and therefore will be accumulated and allocated equitably over
  multiple projects by some approved and documented accounting
  procedure.
Budgeting
Aggregating the individual cost of all project activities over the project life
cycle gives the “S” Curve. The budgets are derived from this through
negotiations with the Sponsor/Finance Department       .



                               Funding
                                Final
            Cost



                          Funding
                            2nd
            Funding
           Initial




                                Time
Why Project Funding


customer                           VC


                                        BANKS



           Project




             Parent Organization
Project Opportunity/Risk Management
 Risk is any potential Threat or occurrence which
  may prevent the project to achieve its desired
  objective by affecting--Schedules, cost, quality
  or benefits.
 Risk is a measure of the extent to which a given
  outcome might deviate from what is expected
  or desired.
 Risk is an uncertain event or condition that, if it
  occurs, has a positive or a negative effect on a
  project objective.---PMBOK.
  The positive variation can be termed as
  OPPORTUNITY and the negative as RISK
What is Risk?

    Cause- Requirement,             Causes

Assumption, Constraint, Condition




                                                               If occurs results
                              Risk- Uncertain Event
                                OR Condition incl.
                        Project’s/Organization’s environment


                                                                       Impact- Cost,
                                                                 Schedule OR Performance.
Risk Management

 Risk Management is a systematic process of
  identifying, analyzing, and responding to project
  risks- maximizing the probability and consequence
  of positive events( Opportunity) and minimizing
  the probability and consequence of adverse
  events( Risk) to Project Objectives.
 If you don’t actively attach the risks, they will
  actively attack you.---Tom Gilb.
Risk Identification

 Determining which risks might affect the project
and documenting their characteristics by all
concerned including subject matter experts.

The risk identification process involves reviewing
---Project Charter, WBS, Product
description, Schedule and cost estimates, Resource
plan, Procurement plan, Assumptions and
constraints

Both Project Risks and Opportunities have to be
separately identified and analyzed.
Technical, Quality and Performance
            risks---Examples
• Reliance on outdated, unproven or Complex
  Technology.
• Unrealistic Performance Goals/ Gold plated.
• Changes to the Technology used.
• Changes in the Industry Standards of
  Technology.
• Is the Technology new to the organisation.
Project Management Risks---Examples
• Poor allocation of Time and Resources.
• Technical team under-qualified for the job.
• Third party supplied resources.
• Inadequate quality of Project Plan-like Bad
  Product specification, unclear/undefined
  milestones, communication systems, etc.
• Crash Projects.
• Poor use of Project Management discipline.
Organizational risks---Examples
•   Inconsistent objectives of cost, time and scope.
•   Lack of prioritization of Project.
•   Inadequate or interruptions in funding.
•   Unspecified payment/budget.
•   Resources conflict with other projects.
•   Improper working environment.
•   Distributed Project Management.
•   Over-ambitious Management.
•   User is unable to and has no authority to clarify
    doubts.
External risks---Examples
•   Shifting Legal and Regulatory Environment.
•   Labor issues.
•   Changing owner priority.
•   Country Risk.
•   Force Majeure Risks--requires disaster
    recovery actions.
****Add--Fish Bone Diagram
             .
Qualitative Risk Analysis

• Prioritization of Risks for subsequent further analysis and
   action.


• Risk Probability is the likelihood that a risk will occur.

• Risk Impact is the effect on project objectives , if the risk event
   occurs.

• The product of the Impact and the Probability gives a Value for each risk
  which can be used for prioritizing the risks.
Impacts Rating guidelines for a risk – Qualitative analysis
Qualitative Risk Analysis
                Probability - Impact Matrix




Impact ( relative scale ) on an objective ( e.g. cost, time. Scope or quality.)
Risk Categorization – Example
                                Risk
                             Categories

                                PM




                              Human
Schedule          Cost                      Quality     Procurement
                             Resources

Expectations   Unrealistic   Availability   Stringent   Performance
 Mismatch        Target                     Standards     Support
Strategies for Negative Risks (Threats)
• Avoid
  – Eliminate a specific threat, usually by eliminating the cause.
  – Examples: reduce the scope; or extend the schedule in a way such that
    the risk is no longer a risk
• Transfer
  – Shifts the impact of threat along with ownership of the response to 3rd
    party.
  – Does not eliminate it.
  – Involves payment of premium
• Mitigate
  – Reduce the expected monetary value of a risk event by reducing the
    probability of occurrence or reducing the risk event value (impact of the
    risk)
  – Taking early actions to reduce probability an/or impact
  – Example: designing redundancy into subsystem may reduce the impact
    from a failure of the original component
Strategies for Opportunities
• Exploit
   – An opportunity can be realized
   – Making an opportunity definitely happen
• Share
   – Involves allocating ownership to a third party who can best able to
     capture the opportunity for the benefit of the project.
• Enhance
   – Modifies “size” of the opportunity by increasing probability
     and/or positive impacts by identifying and maximizing key drivers
     of these +ve risks.
   – Strengthening the cause of opportunity, proactively targeting and
     reinforcing trigger conditions might increase probability.
Reserve
………. Is a provision in the project plan to mitigate cost and/or schedule risk. Often
                                  used with modifiers
                         Contingency Reserve
      A separately planned quantity used to allow for future
        situations which may be planned only in part(Known
            unknowns). Contingency reserves are normally
           included in project’s cost and schedule baselines
                        Management Reserve
      A separately planned quantity used to allow for future
        situations which are impossible to predict( unknown
         unknowns). Use of management reserve requires a
            change to the project’s cost/schedule baseline
Project Quality Management
• The processes which ensure that the project will
  satisfy the needs for which the project was
  undertaken. This includes all activities of the
  overall management function that determine the
  quality policy, objectives and responsibilities and
  implements them. This consists of:-
• Quality Planning processes
• Perform Quality Assurance processes
• Perform Quality Control processes

        ( Discuss Quality Policy, Quality Metrics, Cost Of Quality)
Human Resource Planning
 Human resource Planning involves identifying,
  documenting project roles and responsibilities, and
  reporting relationships as well as creating the staffing
  management plan..
      which contain
    Roles, responsibilities, authority, competency of the   human
     resources.
    Project organization chart.
    Staff acquisition time table.
    Training needs etc.
Responsibility Assignment matrix
Project Communication Plan
The information needs and the methods of distribution vary
widely from project to project.
This determines the information and communication needs of
the stake holders

–   Who needs
–   What information
–   When will they need it
–   How will it be given to them
–   By whom

                     (A Communication Matrix will help)
Communication Channels


                          Upward Communication
                               Management



Lateral Communication                                 Lateral communication
        Peers,                                        Friends, Social groups,
                                   PM
Other functional groups
                                                      Formal and informal org
    And customers


                          Downward Communication
                                Subordinates,
                           Project Office Personnel
Performance reporting
Collecting the information from project plan, work
results and other project records and disseminating
the project performance information to provide
stakeholders with information about how resources
are being used to achieve project objectives.
    • Status reporting
    • Progress reporting
    • Forecasting
Performance reporting should primarily cover information on scope,
  schedule, cost, quality, risk and procurement.
Earned Value Analysis




   Cost Variance

                    Schedule Variance
Spec          Order
Visual Communication Aids          Inspect          Delivery
                                     Erect          Trail




       M101       P203      C104             H301




       M201       P305      C204             H401
Continuous Process Improvement
 Process Improvement Plan – Details the steps for
  analyzing processes that will facilitate the
  identification of waste and non-value added
  activity, thus increasing customer value, such as:
   Process boundaries: Describes the purpose, start and
    end of processes, their inputs and outputs, data required
    and the owner and stakeholders of processes.
   Process configuration: A flowchart of processes to
    facilitate analysis with interfaces identified.
   Process metrics: Maintain control over status of
    processes.
   Targets for improved performance: Guides the process
    improvement activities.
Lessons Leaned Process

WENT WRONG    Information Gathering   WENT RIGHT
             From Stakeholders/Team




                 Brainstorming



                   Lessons
                   Learned
                  Knowledge
                     Base
PM’s Professional Responsibility

1. Ensure individual Integrity and • by adhering to legal requirements and
                                     ethical standards in order to protect
   Professionalism
                                  the community and all stakeholders.
                                • by sharing lessons learned, best
                                  practices, research etc within
2. Contribute to the PM Knowledge appropriate communities in order to
   base                           improve the quality of project
                                  management services, build the
                                  capabilities of the colleagues and
                                  advance the profession.
                                • by increasing and applying professional
3. Enhance Individual Competence knowledge to improve services.
PM’s Professional Responsibility

4. Balance Stakeholder Interests
                                         by recommending approaches
                                          that strive for fair resolution in
                                          order to satisfy competing
5. Interact with team and                 needs and objectives.
   stakeholders in a Professional and
                                         by respecting personal, ethic
   co-operative manner
                                          and cultural differences in order
                                          to ensure a collaborative project
                                          management environment.

                         Total number of Questions
                                   : 18
The direction finder for PM
                            Looking Backward
                                                                          Looking upwards
                 Monitoring progress with appropriate
                                                                    Managing your sponsor in order
                   control systems, to ensure that the
                                                                       to achieve organization
                 project meets its targets and the team
                                                                            commitments
                         learn from its mistakes

                                                                              Looking outwards
        Looking inwards                                                 Managing the client, end user
Managing yourself, by reviewing                                               and external stake
your performance to ensure that                The role of             holders(including suppliers and
   your team leadership is a                      PM                 subcontractors) to ensure that the
  positive contribution to the                                        project meets their expectations.
            project.




                         Looking downwards                          Looking Forwards
                   Managing the team in order to             Planning in order to ensure that
                     maximize their performance                   the team sets realistic
                       both as individuals and               targets, and obtains appropriate
                  collectively.Managing the visible,            resources to achieve those
                   across disciplines, departments,                       targets.
                        countries and cultures
Project management

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Introduction project management
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Project management

  • 1. Systems approach to Project Management By Institute of Public Enterprise Hyderabad
  • 2. Characteristics of Project  Has Objectives  Has a Schedule  Has Complexity  Has a Size and Nature of Tasks  Needs Resources  Needs Organization Structure  Has Information and Control Systems  Has Progressive Elaboration  Frequently influenced by the Environment  Mostly some of the stakeholders have vested interests
  • 3. Challenges being faced in Project Management • 1. • 2. • 3. • 4. • 5. • 6. • 7. • 8. • 9. • 10.
  • 4. When do we declare a project Successful 1. - 2. - 3. - 4. - 5. - 6. - 7. - 8. - 9. - 10. - 11. - 12. -
  • 5. Benefits of following Project Management Principles  A clear focus on TASK/Project.  Buy in by all the stakeholders.  Tight achievable targets by way of Time and Cost.  Optimum Resource utilization.  Roles and responsibilities of all associated with the task/project, well defined.  Good Communication practices used to accelerate the task/project and to keep all stakeholders happy.  Well established world practices/processes enable formal initiation and proper closure of the task/project.  Close monitoring to avoid deviation from set targets.  A good risk management exploits every opportunity and minimizes the effect of adverse events to get best task/project results.
  • 6. Projects-Examples • 1 • 2 • 3 • 4 • 5 • 6 • 7
  • 7. Project Definition A Project is a temporary endeavor undertaken to create a unique product or service And is Progressively elaborate. ( Discuss Difference between Project and Operation)
  • 8. Project Management- Definitions • Project Management is the application of knowledge and skills of the Project team and using required tools and techniques to meet Project Objectives. • Process of Converting a Concept into a Reality-Efficiently within given Resources and Time. • Project management is a highly demanding and complex task. It requires organizational skills, the foresight to anticipate the unexpected, and the ability to monitor progress and change course as needed. • Project management is about managing people so they achieve valued end result. • If change is becoming routine and is being encountered on a regular basis, project management principles can certainly be employed to meet the challenges of change. (The better we know the project, the better we can manage it)
  • 9. What are Project Phases • The stages in which a Product gets developed from concept are called phases like:- Idea, Conceptualization, Develop Prototype, Project Report, Design, Execution, Commissioning, Operation etc. • Each phase is associated with one or more deliverables which are Tangible, Verifiable work products. • Conclusion of a phase is marked by review of key deliverables and project performance to determine if project should continue to next phase. • The idea is the defects have to be identified and corrected at the end of each Phase, so that the cost of rectification is lower when detected and corrected as early as possible.
  • 10. Progressive Elaboration • What is Progressive elaboration? – continuously improving and detailing the plan as more detailed & specific information and more accurate estimates become available • Why Progressive elaboration? – Potential for change – Iterative nature of the project management plan – Progressive elaboration is throughout the project lifecycle • Progressive elaboration allows… – The project management team to manage the project to a greater level of detail as the project evolves.
  • 11. Product Lifecycle vs Project Management Lifecycle • Discuss and Evolve
  • 12. Common Lifecycle Characteristics • Cost - month( period ) wise & Cumulative • Level of Uncertainty • Risk in achieving the Project Objectives • Impact if a Risk occurs • Stakeholders ability to influence the final outcome of the project • Cost of changes
  • 13. Areas of Expertise needed by the Project Team Project Management Body of Knowledge PMBOK Guide Application Area Inter Personal Skills Knowledge, Standards and Regulations GM Knowledge Understanding and skills the project environment
  • 14. Processes • Process Definition- a series of activities when performed in a predetermined sequence, brings about the desired results, repetitively. • Product Oriented Processes – Specify and create the project’s product( Application based processes- Fabrication, Welding, Erection, Commissioning, Techn ology based Etc) ) • Project Management Processes – Interact with Product Oriented Processes, organize and overview them in a manner to achieve the set project objectives.
  • 15. Interaction of- Product Oriented Process . and Project Management Processes Project Management Processes IDEA Product Oriented Processes PRODUCT
  • 16. Project Management Processes and their communication channels Sponsor Authorization of Business Case OR Project Charter Project SOW Initiating Planning Project OR Processes-2 Processes-20 Plans and Updates Contract Changes Monitoring Status Executing & Controlling Processes-8 Guidance Processes-10 Accepted Deliverables Lessens Learned Closing Processes-2 Deliverables+ Knowledge
  • 17. Project Management Boundaries Project Boundaries Monitoring & Deliverables End Controlling Processes Users Planning Processes Initiator/ Project Initiating Closing Sponsor Input Process Process Executing Processes Process Records & LL Assets P A D C
  • 18. Overlap of process groups Executing Processes Planning Processes Initiating Closing Processes Controlling Processes Processes Project/ Time Project/ Phase start Phase end
  • 19. PMO • Shared resources • Common Processes and Methodologies • Clearinghouse and management of policies, processes, templates etc • Centralized configuration management, Risk repository • Centralized management of tools and dashboard • Mentoring and coaching for Project Managers • Centralized monitoring of projects, programs and communication • Coordination of overall project quality standards
  • 20. Enterprise Environmental Factors  Organizational Culture and Structures and processes  Governmental / Industry standards  Infrastructure  Existing human resources and personnel administration  Company Work Authorization systems  Commercial data bases  Marketplace conditions  Project management information system  Political climate  Organization’s established communication channels
  • 21. Organizational Process Assets Processes and Procedures Corporate Knowledge Base • Organizational Standard Processes • Process measurement database • Standardized Guidelines, Work • Project files instructions • Historical information • Criteria for performance measurement, proposal evaluation • Issue / defect management • Templates database • Tailoring guidelines • Configuration management • Project Closure guidelines knowledge base • Procedures on financial • Financial database control, change control, issue and defect management • Risk categorization and control
  • 22. Project Management Process Groups … Project •PSOW Initiating Process Sponsor •Business case Group •Contract •Project Charter •Stakeholder Register •Stakeholder management strategy Enterprise/ • OPA Planning Process Organization Group • PMP Monitoring • OPA • EEF and Project • PMP Control • Make or buy Customer •Requirement Documents Process Group • Approved CR Executing Process • QC Measurement • Proposal Group • Per Reports • Deliverables •CRs, WPI Sellers •Contract • Selected sellers • Final Product Closing Process Group •Accepted Deliverable •Procurement documents
  • 23. Project Initiation • Project Initiation is the process of understanding the inputs given by the sponsor in the form of a Business Case, OR Project Statement of work, OR Contract received from a customer. • Collecting all the data relating to this input from the stakeholders involved in identifying that project to arrive at High level budget, schedule and arrive at Project Objectives through Stakeholder Management. • The Charter which is the output of the Initiation Process should contain all the inputs necessary for creating a good project management plan.
  • 24. Project Charter • The Project Charter Documents business needs, current understanding of customer’s needs, and the new product, service, or result that is intended to satisfy, such as: – Project purpose or Justification – Measurable Objectives and related success criteria – High level requirements – High level project description – High level risks – Summary milestone schedule – Summary budget – Project approval requirements – Assigned Project manager-responsibility and authority level. – Name and authority of sponsor or other persons authorizing charter.
  • 25. Project Objectives • The quantifiable criteria that must be met, for the project to be considered successful • Each objective should have a measurable attribute • Each attribute shall have a yardstick (units) – E.g. in Rs for cost, defects in % etc. • An absolute or relative value to be attached to each attribute. • Key Project Objectives are:- Scope, Quality, Time and Cost.
  • 26. Project Stakeholders Project stakeholders are individuals and/or organizations who are actively involved in the project, and/or whose interests may be positively or negatively affected as a result of project execution/ successful project completion and who can influence the project Positively/Negatively. Key stakeholders on every Other stakeholders project include the following Owners and investors Project manager Suppliers and Contractors. Customer/User family members. of team Performing organization, Govt./statutory agencies Project Team members Temporary and permanent Project Management Team lobbying organizations. Sponsor Media, general public and Influencers society at large . PMO ( if it exists )
  • 27. Develop Stakeholder Management Strategy • Categorize the stakeholders • Identify as many stakeholders as possible • Discuss their interest in the project • Prioritize • Evolve Stakeholder Management strategy • Recommend to the management if the project can be successfully managed
  • 28. Stakeholder Management Strategy High Keep satisfied Manage Closely Power / Influence Monitor (minimum Keep informed effort) Low High Low Interest / Impact
  • 29. Managing a project typically includes… • Identify Stakeholders • Gather through appropriate method Their- Needs, wants, concerns, and expectations related to Project’s Product and Project Execution and any related issue. • Convert these into REQUIREMENTS through Discussion.( Requirements define the Features, Functions, Characteristics of the Product and related issues) • Balancing the competing project constraints that includes but not limited to :  Scope , Quality, Schedule, Budget, Resources, and Risk
  • 30. Requirements documentation and Traceability Matrix Req. Documentation describe how Req. Traceability Matrix links the individual requirements meet requirements to their origin and the business need for the project. traces throughout the project life • Business Need or Opportunity to be cycle. It also provides a structure seized for managing changes to the • Project Objectives product scope. Reqts are traced • Functional Requirements to; • Non- functional Requirements  Business • Quality Requirements needs, opportunities, goals, and objectives. • Acceptance Criteria Project scope/WBS • Impact to Organizational Sub systems Product design. • Support & Training requirements Product development • Requirements Assumptions Test strategy and scenarios • Requirements Constraints High-level requirements.
  • 31. Plan Project Scope Includes processes required to ensure that the project includes- “All the work” and “ Only the work” required, to complete the project successfully. • Product scope: • Project scope: – The features and functions that – The work that needs to be characterize a product service accomplished to deliver a or result product, service or result with the specified features and functions. – Completion of product scope is – Completion of a project is measured against the product measured against the project requirements management plan, scope statement and WBS
  • 32. Project Scope Statement – Key elements Product scope Product acceptance Project deliverables description criteria Description of the Project constraints Project Exclusions work and Assumptions
  • 33. Assumptions and Constraints • Assumptions are factors that, for planning purpose, are considered to be true, real, or certain without proof or demonstration. Assumptions affect all aspects of project planning, and are part of the progressive elaboration of the project. Project teams need frequently identify, document, and validate the assumptions. Assumptions generally involve a degree of risk. • Constraints are defined as the state, quality, or sense of being, that will effect the performance of the project or a process. Mostly constraints are imposed by the Customers, Sponsor or Senior management OR by the nature of Project itself. Constraints can also be understood as the boundaries imposed upon the project within which it has to be planned.
  • 34. Create WBS Scope definition involves subdividing the major project deliverables in to smaller, more manageable components (Work Packages ) which provide common framework from which:- • Planning can be performed. • Cost and Budgets can be established. • Time, cost and performance can be tracked. • Objectives can be linked to company resources in a logical manner. • Schedules and status reporting procedures can be established. • Network construction and control planning can be initiated. • The responsibility assignment for each element can be established. Organisation Structure will be defined to suit the specific Project.
  • 35. WBS -Decomposition Involves subdividing the deliverables and sub- deliverables into smaller and more manageable components until these are defined in sufficient detail in following steps:-- • Identify the major deliverable incl. Project Management.The phases of the project can be used as first level decomposition. • Decide if adequate (cost and duration estimate can be developed) • Identify constituent components which will produce tangible and verifiable results. • Verify the correctness of the decomposition-if lower level items necessary or sufficient ; is it clearly and completely defined; if each item can be appropriately- Scheduled? Budgeted ? Responsibility assigned? ( The decomposition can be done on the basis of Phases, Skill set, Deliverables, Raw Materials etc )
  • 36. WBS Decomposition Level Description 1 Project 2 Phases 3 Sub division 4 Work Package 5 Level of effort These work packages have to be properly numbered for better project monitoring and control.
  • 37. Work Package/ WBS Dictionary • Represents units of work at the level where the work is managed by the Project Team. • A good work breakdown structure ensures minimum scope creep and better clarity and understanding of work among the team members. • WBS Dictionary details all features of a Work Package:-  Code of account identifier,  Statement of work,  Responsible organization,  Schedule milestones,  Contract information,  Quality requirements,  Technical references. ( Depending on the clarity on the project scope, the immediate phases can be drilled down to lower WBS and the future phases can be left at high level till the clarity is achieved.)
  • 38. Work Breakdown Structure Project summary 990 H SAI-700 Level 2 Proj. Mngment Level 2 Design Development Implement 80 H 700.01 310 H 700.02 350 H 700.03 250 H 700.04 Prototype. Components Drawings 10 H 700.02.01 50 H 700.02.02 250 H 700.02.03 Civil/Structural Mechanical Electrical/Control 180 H 700.02.03.01 30 H 700.02.03.02 40 H 700.02.03..03
  • 39. Waste Water Treatment Plant Proj. Mngt
  • 40. Schedule Development Define Activities Sequence Activities Activity Resource Estimation Activity Duration Estimation Develop Schedule
  • 41. Activity Definition Identifying and Documenting specific activities that must be performed to produce deliverables and sub-deliverables identified in WBS. USING as INPUTS:- Work Breakdown Structure, Scope statement, Historical Information, Constraints, Assumptions and Expert judgments where-ever necessary. Activity Attributes— Include activity identifier, activity codes, activity description, predecessor activity, successor activity, logical relationship, leads and lags, resource requirements, imposed dates, constraints and assumptions.
  • 42. Activity Sequencing •Identifying and documenting interactive logical relationship including dependencies like:-. •Mandatory dependencies (Hard logics) •Discretionary dependencies (Soft logics) •External dependencies •Sequenced accurately to support development of realistic and achievable schedule. •Modify/update the Activity List where-ever necessary during sequencing process. There are 2 methods for sequensing :- •Precedence diagramming method PDM •Arrow diagramming method ADM
  • 43. Dependencies- Mandatory A B C D The successor activity is totally dependant on the completion of predecessor activity therefore activity B is dependant on completion of activity A Examples • Foundation work can be started only after the excavation is completed and the pit is inspected and approved.
  • 44. Dependencies- Discretionary C A B D E Examples • The living room can be painted before painting the dining room, although it could be done other way round, too – with out constrain • It is logically possible to paint four walls in a room simultaneously but there is only one painter – with constrain
  • 45. Dependencies - External Pipe Welding Hydro Test Commission A B D Obtain Approval Inspection / Certification C When there is an external inspection mandatory before starting the next activity.
  • 46. Arrow Diagramming Method ( Activity-On-Arrow AOA, Critical Path Method CPM) Dummy E C F F A H Start B Finish Nodes D G Activity Uses only Finish to Start dependencies
  • 47. Network – Precedence Diagramming Method A C E Start Finish B D F dependencies activities Types of Dependencies. • Finish to Start • Finish to Finish • Start to Start • Start to Finish
  • 48. Dependencies Finish-to-Start (FS) Task (B) cannot be started until task (A) finishes. Task A “Reaction” and Task B “Analysis” • “ Concreting” can't be started until “Shuttering” finishes. A B
  • 49. Dependencies Finish-to-Finish (FF) Task (B) cannot finish until task (A) finishes. Task A “Wiring” and Task B “Inspection” • “Inspection” can't finish until “Wiring” finishes. A B
  • 50. Dependencies Start-to-start (SS) Task (B) cannot start until task (A) starts. • Task A "Pour foundation" and Task B "Level concrete," "Level concrete" can't begin until "Pour foundation" begins. A B
  • 51. Dependencies Start-to-Finish (SF) Task (B) cannot finish until task (A) Starts. A B
  • 52. Critical path 6 7 3 8 5 4 3 4 1 2 5 6 7 8 4 4 4 9 Critical path – Longest path, float less than or equal to specified value – mostly Zero. Path 1-2-3-6-7-8 = 5+7+6+3+4 = 25 units Path 1-2-4-5-6-7-8 = 5+4+4+4+3+4 = 24 units Path 1-2-3-5-6-7-8 = 5+7+8+4+3+4 = 31 units. Path 1-2-4-7-8 = 5+4+9+4 = 22 units
  • 53. Diagrammatic representation of PERT Earliest Start Activity identification Earliest Finish A (8,10) A B 2 (15,17) Activity Time Latest Finish Latest Start
  • 54. Calculate Slack/Float time C,6 B,7 D,3 I, 8 A,5 E,4 F,4 G,3 H,4
  • 55. Step-1- Calculate Earliest Start time TE TE= 12 TE= 18 C,6 B,7 D,3 I, 8 A,5 E,4 F,4 TE= 0 TE= 5 TE= 24 G,3 H,4 TE= 28 TE= 21 TE= 9 TE= 20 TE= 12
  • 56. Step-2-Calculate Latest Start time TL TL= 12 TL= 21 TL= 15 C,6 B,7 D,3 I, 8 A,5 E,4 TL= 0 TL= 5 F,4 TL= 24 TL= 28 TL= 13 G,3 H,4 TL= 17 TL= 20
  • 57. Slack or Float time Earliest Start- (TE )--- The earliest possible time the said activity can begin, which means that all the predecessor jobs on which this activity is dependant, have been completed. ( When the Tortoise reaches the node) ( Highest of the times at a node when analyzing in the Forward pass ) Latest Start – ( T L )-- How late a particular activity can be started without effecting the overall project schedule. ( Till when the Heir can wait ) ( Lowest of the times at a node when analyzing in the Backward pass ) Slack or Float time---- Latest Start TL – Earliest Start TE
  • 58. Critical path – Longest path, float less than or equal to specified value – mostly Zero. TL= 12 TL= 21 TE= 12 TE= 18 C,6 B,7 D,3 I, 8 A,5 E,4 TL= 0 TL= 5 F,4 TL= 24 TL= 28 TE= 0 TE= 5 TE= 24 G,3 H,4 TE= 28 TL= 17 TL= 20 TE= 9 TE= 20 Float / Slack time = Longest time – Earliest time
  • 59. Critical path – Longest path, float less than or equal to specified value – mostly Zero. TL= 12 TL= 21 TE= 12 TE= 18 C,6 B,7 D,3 I, 8 A,5 E,4 TL= 0 TL= 5 F,4 TL= 24 TL= 28 TE= 0 TE= 5 TE= 24 G,3 H,4 TE= 28 TL= 17 TL= 20 TE= 9 TE= 20
  • 60. Activity Resource Estimation • What resources ( Persons, equipments, tools, tackles or material ) and what quantities of each resource will be used, and when each resource will be available to perform project activities. • Expert judgment, Alternatives Analysis, Published data, Bottom-up estimate are some of the methods used to estimate the resources requirement. • These resources can then be structured into categories and types for easy management and control. • A resource calendar is then prepared showing the quantity of each resource available during each available period.
  • 61. Activity Duration Estimation • The process of estimating schedule activity duration using information on scope of work, resource types, resource quantities and resource calendars. •The estimates are generated by the person or group in the project team who is most familiar with the nature of work. •The estimate is progressively elaborated to get precise data of better quality. •All data and assumptions that support duration estimating are documented ( Support documents ). •The effect of identified Risks on the schedule development are also considered. •Methods- Analogous, Parametric, 3-Point, Bottom-Up.
  • 62. Develop Schedule • Incorporate the Duration estimates on The Network Developed. • Superimpose calendars on the Network. • Impose any constraints. • Introduce start date to get the project end date.
  • 63. Network re-planning 1. Resource Leveling 2. Resource allocation 3. Elimination of some parts of project 4. Addition of more resources 5. Substitute with less time consuming components or activities. 6. Parallelization of activity 7. Shortening longest activities 8. Shortening activities that are least costly to speed up. 9. Shortening activities for which you have more resources. 10. Increasing the working hours.
  • 65. Latest Techniques in Scheduling • Critical Chain Methods • Theory of Constraints
  • 66. Project Cost Estimation • Estimate Costs is the process of estimating the monetary resources needed to complete project activities. Cost estimates are a prediction that is based on the information known at a given point in time:- Analogous, Parametric, 3-Point Estimate, Bottom-Up. • Cost estimating is iterative from phase to phase. ROM during initiation phase could be ±50%. Later on the estimates could narrow to a range of ±10%at the end of Planning process. • Scope Statement as part of the Scope BL is also an input to the Estimate Costs process wherein one basic assumption that needs to be made is whether the estimates will be limited to direct project costs only or whether the estimates will also include indirect costs. • Indirect costs are those costs that cannot be directly traced to a specific project and therefore will be accumulated and allocated equitably over multiple projects by some approved and documented accounting procedure.
  • 67. Budgeting Aggregating the individual cost of all project activities over the project life cycle gives the “S” Curve. The budgets are derived from this through negotiations with the Sponsor/Finance Department . Funding Final Cost Funding 2nd Funding Initial Time
  • 68. Why Project Funding customer VC BANKS Project Parent Organization
  • 69. Project Opportunity/Risk Management  Risk is any potential Threat or occurrence which may prevent the project to achieve its desired objective by affecting--Schedules, cost, quality or benefits.  Risk is a measure of the extent to which a given outcome might deviate from what is expected or desired.  Risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on a project objective.---PMBOK. The positive variation can be termed as OPPORTUNITY and the negative as RISK
  • 70. What is Risk? Cause- Requirement, Causes Assumption, Constraint, Condition If occurs results Risk- Uncertain Event OR Condition incl. Project’s/Organization’s environment Impact- Cost, Schedule OR Performance.
  • 71. Risk Management  Risk Management is a systematic process of identifying, analyzing, and responding to project risks- maximizing the probability and consequence of positive events( Opportunity) and minimizing the probability and consequence of adverse events( Risk) to Project Objectives.  If you don’t actively attach the risks, they will actively attack you.---Tom Gilb.
  • 72. Risk Identification  Determining which risks might affect the project and documenting their characteristics by all concerned including subject matter experts. The risk identification process involves reviewing ---Project Charter, WBS, Product description, Schedule and cost estimates, Resource plan, Procurement plan, Assumptions and constraints Both Project Risks and Opportunities have to be separately identified and analyzed.
  • 73. Technical, Quality and Performance risks---Examples • Reliance on outdated, unproven or Complex Technology. • Unrealistic Performance Goals/ Gold plated. • Changes to the Technology used. • Changes in the Industry Standards of Technology. • Is the Technology new to the organisation.
  • 74. Project Management Risks---Examples • Poor allocation of Time and Resources. • Technical team under-qualified for the job. • Third party supplied resources. • Inadequate quality of Project Plan-like Bad Product specification, unclear/undefined milestones, communication systems, etc. • Crash Projects. • Poor use of Project Management discipline.
  • 75. Organizational risks---Examples • Inconsistent objectives of cost, time and scope. • Lack of prioritization of Project. • Inadequate or interruptions in funding. • Unspecified payment/budget. • Resources conflict with other projects. • Improper working environment. • Distributed Project Management. • Over-ambitious Management. • User is unable to and has no authority to clarify doubts.
  • 76. External risks---Examples • Shifting Legal and Regulatory Environment. • Labor issues. • Changing owner priority. • Country Risk. • Force Majeure Risks--requires disaster recovery actions.
  • 78. Qualitative Risk Analysis • Prioritization of Risks for subsequent further analysis and action. • Risk Probability is the likelihood that a risk will occur. • Risk Impact is the effect on project objectives , if the risk event occurs. • The product of the Impact and the Probability gives a Value for each risk which can be used for prioritizing the risks.
  • 79. Impacts Rating guidelines for a risk – Qualitative analysis
  • 80. Qualitative Risk Analysis Probability - Impact Matrix Impact ( relative scale ) on an objective ( e.g. cost, time. Scope or quality.)
  • 81. Risk Categorization – Example Risk Categories PM Human Schedule Cost Quality Procurement Resources Expectations Unrealistic Availability Stringent Performance Mismatch Target Standards Support
  • 82. Strategies for Negative Risks (Threats) • Avoid – Eliminate a specific threat, usually by eliminating the cause. – Examples: reduce the scope; or extend the schedule in a way such that the risk is no longer a risk • Transfer – Shifts the impact of threat along with ownership of the response to 3rd party. – Does not eliminate it. – Involves payment of premium • Mitigate – Reduce the expected monetary value of a risk event by reducing the probability of occurrence or reducing the risk event value (impact of the risk) – Taking early actions to reduce probability an/or impact – Example: designing redundancy into subsystem may reduce the impact from a failure of the original component
  • 83. Strategies for Opportunities • Exploit – An opportunity can be realized – Making an opportunity definitely happen • Share – Involves allocating ownership to a third party who can best able to capture the opportunity for the benefit of the project. • Enhance – Modifies “size” of the opportunity by increasing probability and/or positive impacts by identifying and maximizing key drivers of these +ve risks. – Strengthening the cause of opportunity, proactively targeting and reinforcing trigger conditions might increase probability.
  • 84. Reserve ………. Is a provision in the project plan to mitigate cost and/or schedule risk. Often used with modifiers Contingency Reserve A separately planned quantity used to allow for future situations which may be planned only in part(Known unknowns). Contingency reserves are normally included in project’s cost and schedule baselines Management Reserve A separately planned quantity used to allow for future situations which are impossible to predict( unknown unknowns). Use of management reserve requires a change to the project’s cost/schedule baseline
  • 85. Project Quality Management • The processes which ensure that the project will satisfy the needs for which the project was undertaken. This includes all activities of the overall management function that determine the quality policy, objectives and responsibilities and implements them. This consists of:- • Quality Planning processes • Perform Quality Assurance processes • Perform Quality Control processes ( Discuss Quality Policy, Quality Metrics, Cost Of Quality)
  • 86. Human Resource Planning  Human resource Planning involves identifying, documenting project roles and responsibilities, and reporting relationships as well as creating the staffing management plan.. which contain  Roles, responsibilities, authority, competency of the human resources.  Project organization chart.  Staff acquisition time table.  Training needs etc.
  • 88. Project Communication Plan The information needs and the methods of distribution vary widely from project to project. This determines the information and communication needs of the stake holders – Who needs – What information – When will they need it – How will it be given to them – By whom (A Communication Matrix will help)
  • 89. Communication Channels Upward Communication Management Lateral Communication Lateral communication Peers, Friends, Social groups, PM Other functional groups Formal and informal org And customers Downward Communication Subordinates, Project Office Personnel
  • 90. Performance reporting Collecting the information from project plan, work results and other project records and disseminating the project performance information to provide stakeholders with information about how resources are being used to achieve project objectives. • Status reporting • Progress reporting • Forecasting Performance reporting should primarily cover information on scope, schedule, cost, quality, risk and procurement.
  • 91. Earned Value Analysis Cost Variance Schedule Variance
  • 92. Spec Order Visual Communication Aids Inspect Delivery Erect Trail M101 P203 C104 H301 M201 P305 C204 H401
  • 93. Continuous Process Improvement  Process Improvement Plan – Details the steps for analyzing processes that will facilitate the identification of waste and non-value added activity, thus increasing customer value, such as:  Process boundaries: Describes the purpose, start and end of processes, their inputs and outputs, data required and the owner and stakeholders of processes.  Process configuration: A flowchart of processes to facilitate analysis with interfaces identified.  Process metrics: Maintain control over status of processes.  Targets for improved performance: Guides the process improvement activities.
  • 94. Lessons Leaned Process WENT WRONG Information Gathering WENT RIGHT From Stakeholders/Team Brainstorming Lessons Learned Knowledge Base
  • 95. PM’s Professional Responsibility 1. Ensure individual Integrity and • by adhering to legal requirements and ethical standards in order to protect Professionalism the community and all stakeholders. • by sharing lessons learned, best practices, research etc within 2. Contribute to the PM Knowledge appropriate communities in order to base improve the quality of project management services, build the capabilities of the colleagues and advance the profession. • by increasing and applying professional 3. Enhance Individual Competence knowledge to improve services.
  • 96. PM’s Professional Responsibility 4. Balance Stakeholder Interests  by recommending approaches that strive for fair resolution in order to satisfy competing 5. Interact with team and needs and objectives. stakeholders in a Professional and  by respecting personal, ethic co-operative manner and cultural differences in order to ensure a collaborative project management environment. Total number of Questions : 18
  • 97. The direction finder for PM Looking Backward Looking upwards Monitoring progress with appropriate Managing your sponsor in order control systems, to ensure that the to achieve organization project meets its targets and the team commitments learn from its mistakes Looking outwards Looking inwards Managing the client, end user Managing yourself, by reviewing and external stake your performance to ensure that The role of holders(including suppliers and your team leadership is a PM subcontractors) to ensure that the positive contribution to the project meets their expectations. project. Looking downwards Looking Forwards Managing the team in order to Planning in order to ensure that maximize their performance the team sets realistic both as individuals and targets, and obtains appropriate collectively.Managing the visible, resources to achieve those across disciplines, departments, targets. countries and cultures