Project Management

MMOPEMANabellon | calivo | dayan | gamba | marquez

prof gusjuly 27, 2011

PROJECT MANAGERS

PROJECT

Is a time bound endeavour undertaken to create a product or service. It is characterized by the need for the service of many different people in an organization while requiring considerable planning and coordination of tasks.

PROJECT MANAGEMENT

The application of knowledge, skills, tools and techniques to project activities to meet requirements.

Take action by decomposition or breakdown into major project deliverables

Work Breakdown Structure [WBS]

Constraints

SCOPE of the PROJECTEnsuring the project includes all the work required and only the work required.

TIME

COST COST

QUALITY

TIME

SCOPE

PROCESS GROUPS

Initiate Plan

Execute

Close

Control

PROJECT LIFE CYCLE

This is usually misunderstood as the process groups in project management.

SPAN TIME ESTIMATING

abellon | calivo | dayan | gamba | marquezprof gus

july 27, 2011

Determining When the Project will Be Done

Project assignments always have DEADLINE.

Required Info to determine the amount of time for your project:

Duration: length each individual activity takes

Sequence: order of activities

Developing a Network Diagram

NETWORK DIAGRAMa flowchart illustrating the order of project activities performed

Developing a Network Diagram

ELEMENTS OF THE NETWORK DIAGRAM:

EVENTsignificant occurrences in project’s life; a milestone / deliverable; takes no time and consumes no resources—occurs instantaneously; signposts signifying certain points during project completion

ACTIVITYdescribes action / work to go from one event to another in the project; consumes time and resources

Developing a Network Diagram

SPAN-TIME: Actual calendar time to complete an activity

DURATION of an activity

Affected by amount of work effort, people’s availability, and whether people can work on an activity at the same time.

Work effort, as opposed to span time, is the amount of time a person needs to work on an activity to complete it.

Developing A Network Diagram

Activity-in-the-box approach (also called activity-in-the-node, precedence or dependency diagramming)

Activity-on-the-arrow-approach (also called the classical or traditional approach)

Developing A Network Diagram

A

tA = 0

B

tB = 0

EVENT—milestone or deliverable

SPAN TIME—duration EVENT

ACTIVITY—work required to move from one event to another

1

t1 = 2 wks

Importance of A Network Diagram

1. Determine how long the entire project will take

2. Identify potential difficulties

3. Consider alternatives to complete the project more quickly

The network diagram represents your PLAN—your ROAD Map…

Defining Span Time Estimate

SPAN-TIME ESTIMATE:your best sense of how long you need to actually perform an activity (realistically speaking)

The Underlying Factors

The underlying makeup of an activity determines how long it will take.

You are required to determine its different aspects and how they affect one other.

The Underlying Factors

Resource Characteristics

Types of Resources to Support the Project:

Resource Characteristics

For each resource, determine its…

CAPACITYproductivity per unit time period

AVAILABILITYon the calendar; when a resource will be available

Sources of Info Support

Sources can be based from the following:

Historical records of how long similar activities have taken place in the pastPeople who have performed similar activities in the pastPeople who will be working on the activitiesExperts familiar with the type of activity, even if they haven’t performed work exactly like it in the past

Improving Activity Span-Time Estimates

Define your activities clearly.

Subdivide your activities until your lowest level activity estimates are two weeks or less.

Define activity START and END points clearly.

Involve the people who will perform an activity when estimating its duration.

Minimize the use of fudge factors.

Displaying your project’s schedule

Key-events list

Activities list

Combined key-events/activities list

Gantt Chart

Combined milestone chart and Gantt chart

PROJECT SCHEDULING

abellon | calivo | dayan | gamba | marquezprof gus

july 27, 2011

IMPORTANCE OF PROJECT SCHEDULE

Provides a basis for you to monitor and control project activities.

Helps you determine how best to allocate resources so you can achieve the project goal.

Helps you assess how time delays will impact the project.

Figures out where excess resources are available to allocate to other projects.

Provides basis to help you track project progress.

SCHEDULE INPUTSPersonal and project calendars – critical elements are working days, shifts and resource availability

Description of project scope – key start and end dates

Project risks – to ensure that there’s enough extra time to deal with identified risks

Lists of activities and resource requirements – identifying possible constraints and other factors that may affect the schedule

* A Project Manager should be aware of deadlines and resource availability issues that may make the schedule less flexible *

SCHEDULING TOOLS

SCHEDULE NETWORK ANALYSISGraphic presentation of the project’s activities

Gantt Chartuseful tools for analyzing and planning more complex projects; helps you monitor whether the project is on schedule.

GANNT CHART

SCHEDULING TOOLS

Critical Path Analysis & PERT Charts

helps you to plan all tasks that must be completed as part of a project; act as the basis both for preparation of a schedule, and of resource planning

Regular Crash Regular Crash

A (start) office

0 0

B drive to the club A1 0.75 100 125

100

C call the wifeA

0.25 0.15 500 6001000

D enter the club B,C0.25 0.15 50 75

250

E talk to the manager D0.25 0.15 50 65

150

F choose/table a GRO E0.5 0.25 50 75

100

G watchF

2.5 1.5 1000 1500500

H drink / eatF

1 0.5 1000 1300600

I payG,H

0.5 0.25 1000 1200800

J leave the clubI

0.25 0.15 50 100500

K drive homeJ

1 0.5 100 150100

L (finish) homeK

0 03900 5190

ID

Incremental Cost

(per hour)Time (hrs)

Cost

PredecessorActivity

PERT CHART

Schedule Compression helps shorten the total duration of a project by decreasing the time allotted for certain activities.

CRASHING - assign more resources to an activity thus decreasing the time it takes to complete it

FAST TRACKING - rearranging activities to allow more parallel work

SCHEDULING TOOLS

PROJECT REVIEW

“ What if” scenario analysiscompares and measures the effects of different scenarios on a project

Resource levelingrearrange the sequence of activities to address the possibility of unavailable resources

Critical chain methodthis also addresses resource availability; you plan activities using their latest possible start and finish dates

Risk multipliersadding extra time to high-risk activities

KEY POINTSScheduling aims to predict the future, and it has to consider many uncertainties and assumptions,

The schedule identifies and organizes project tasks into a sequence of events that create the project management plan.

A variety of inputs and tools are used in the scheduling process, all of which are designed to help you understand your resources, your constraints, and your risks. The end result is a plan that links events in the best way to complete the project efficiently.

RESOURCE MANAGEMENT

abellon | calivo | dayan | gamba | marquezprof gus

july 27, 2011

RESOURCE MANAGEMENT

The process of using a company’s resources in the most efficient way possible.

resources such as goods and equipment, financial resources, and labor resources such as employees.

RESOURCE MANAGEMENT

Resource management can include ideas such as making sure one has enough physical resources for one's business, but not an overabundance so that products won't get used, or making sure that people are assigned to tasks that will keep them busy and not have too much downtime

Human Resources

Identify the skills and knowledge needed to perform your project’s activities

Specify the people who’ll work on each activity

Determine how much effort they have to invest to complete their assigned tasks

Determine their slack times and reevaluate

ENNEAGRAMUse the ENNEAGRAM to get an insight on the qualities of our employees and to check if they “fit” into their job description.

Appoint project leaders into more appropriate positions based on their strengths and weaknesses thus increasing productivity

Can help understand fears and desires, strengths and weaknesses, defenses and anxieties, how we react to frustration and disappointment - and, more positively, what our truest capacities and greatest strengths are so that we can build on those rather than on misjudgments and illusions.

Skill RosterPao Mark Tina Rom

Technical writingLegal research

Graphic design

Marketing

primary skill/ knowledge

secondary skill/knowledge

interest

Person is able to assume a lead role in a task requiring this skill/knowledge

Has some training or experience in the skill/knowledge but should work under another’s guidance

Person would like to work on tasks involving this skill/knowledge

Human Resource matrixActivity Line Tender (person-hours)

WBS code Description R. Barrientos G. Madrigal J. Malacaman

ILO-1.1 Chemical Analysis 2 1 2

ILO-1.2 Chemical Charging 5 6 4.5

ILO-1.3 Line Maintenance 18HRS

18HRS

18HRS

• Describe in detail all work to perform the activity• Consider their history• Have the person who’ll do the work participate in estimating the

required work effort• Consult with experts familiar with this type of activity, even when

they haven’t performed work exactly like it before.

Productivitya. Knowledge and skillb. Prior experiencec. Sense of urgencyd. Ability to switch among several taskse. The quality and setup of the physical

environment

Efficiencya. Non-project-specific professional activitiesb. Personal activities

Availability

Aligning the Key Players for the Project

Recognize the people who define and influence your work environment

Understand their unique roles

Know how to work effectively with them to create a successful project

Iloilo Plant

Logistics ProductionSales Engineering

QA

Project AProject BProject C

Funct

ional

resp

onsi

bili

ty

Project responsibility

Defining Team Member’s Roles and

ResponsibilitiesAUTHORITY

ability to make binding decisions about your project’s products, schedule, resources, and activities

RESPONSIBILITYThe commitment to achieve specific results

ACCOUNTABILITYBringing consequences to bear in response to people’s performance.

Finalizing your Project’s Participants

Inform them that your project has been approved and when the work will start

Confirm that they are still able to support your project

Explain what you will do to develop the project team and start the project work

Reconfirm the work you expect them to perform, when they’re to do it, and the amount of time you expect them to spend on it

Work Order AgreementWork –Order Agreement

Project Name: Project Number:

Activity Name: WBS Code:

Description of work to be performed:

Start date End date Number HRS to be spent

APPROVALS

Project Manager:

NAME DATE

Team Member:

NAME DATE

Team Member’s Supervisor:

NAME DATE

Planning for Nonpersonnel

ResourcesResource matrix for all nonpersonnel resources

Individual usage charts for each nonpersonnel resource

Summary usage chart for all nonpersonnel resource

Resource Matrix for Nonpersonnel

ResourcesActivity Amount of Resource Required (Hours)

WBS code Description Computer Copier Test Lab

1.2.1 Design layout 32 0 0

2.1.4 Prepare report 0 40 0

3.3.1 Design device 40 0 32

Usage Chart

Computer Time Required (hrs)Wk1 Wk2 Wk3 Wk4 Wk5 Total

Task1 10 10 10 30

Task2 20 20 40

Task3 10 20 30 60

Total 10 30 40 20 30 130

Summary Usage Chart

Amount of resource required (hrs)Wk1 Wk2 Wk3 Wk4 Wk5 Total

Computer 10 30 40 20 30 130

Copier 10 20 10 30 10 80

Test lab 15 10 20 10 30 85

COSTMANAGEMENT

abellon | calivo | dayan | gamba | marquezprof gus

july 27, 2011

Cost Management

PROJECT COST ESTIMATION

Progressiveevolves as more project details become available.

Varianceeach estimate should provide a range of cost and time.

What is a GOOD Estimate?

Defines what the project will accomplish

What assumptions were made

How long the estimates are valid

Project Cost based on the Current Information

What is a GOOD Estimate?

Presents to the stakeholder everything that is relevant to the proposed work – Transparency.

If there are any disagreements, in the estimate, it is better to talk about it sooner than later.

Estimate Phase #1

Ballpark or Rough Order of Magnitude (ROM)

Based on high level objectivesTypically high variance

Depending on the industry+/- 25% to +/- 75%

Estimate Phase #2

Budget Estimate or Top Down Estimate

A little more accurateFormulated in the early stagesUses info from previous experience/projectsRange of variance is much smaller, +/- 10% to +/- 25%

Estimate Phase #3

Definitive Estimate or Bottom Up Estimate

Requires a WBS (Work Breakdown Structure)

WBS is a deliverables oriented decomposition of the project scope

WBS Example

WBS Explained

Code of accounts clarifies the deliverable to all participants

Provides an accurate record of all the elements in the project

Saves time and helps control costs

WBS Dictionary or Reference helps keep all divisions on the same page

Definitive Estimate

Takes the most time but is the Most Accurate, +/- 5% to +/-10% of variance

Very detailedEasier to make accurate estimates once you know everything that the project will create

POOR Estimates

CONTROLLEDPoor planningRushed, bloated, “low-balled” estimate

UNCONTROLLEDFluctuation in Raw Materials costsInaccurate information

POOR Estimates

Can come from the Customer, Stakeholders, and even Project Sponsor

Change Orders or new deliverables after project scope has been finalized

QUALITY & RISKMANAGEMENT

abellon | calivo | dayan | gamba | marquezprof gus

july 27, 2011

Four Aspects of Quality

Client Satisfaction

Accurate and Current specifications

Quality of the Product of the Project

Quality of the Project

Achieving Quality

1. Do the Right Thing Right the First Time (DTRTRTFT)

2. The CUSTOMER is the next Person/Operation in the Process

3. Statistical Process Control

Risk

“The possibility that you may not achieve your product, schedule, or resource targets because something unexpected occurs or something planned doesn’t occur.”

Risk Management

“It is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability & consequences of adverse events to project objectives.”

Risk Management

Risk Management Planning

Risk Identification

Qualitative Risk Analysis

Quantitative Risk Analysis

Risk Response Planning

Risk Monitoring and Control

Taxonomy of RisksPROJECT RISKS PRODUCT RISKS

•Safety Type of Product

•Technology Timing

•Rework Features

•Personnel Location

•Equipment

•Suppliers

•Materials

•Environment

•Government

•Community

REPORTING & CONROL

MANAGEMENTabellon | calivo | dayan | gamba | marquez

prof gusjuly 27, 2011

Reporting & Control

A. Managing the Scope1. Client Expectations2. Commitments 3. The Vision4. Specifications5. Work Package/ Activity Performance

Requirements6. Changes 7. Documents

Reporting & ControlB. Managing Work Package/Activity

Performance1. Work authorization2. Activity Duration3. Schedule4. Activity Start and Completion5. Slack6. Maintaining a Sense of Urgency7. Relay Race Mentality8. Technical Objective Achievement9. Cost Control10. Carpe Diem

Reporting & Control

C. Managing Resource Application

D. Managing the Project Itself1. Visibility2. Maintaining Sense of Urgency3. Interfaces4. Over-all Cost Performance5. System Performance6. Replanning

THANK YOUabellon | calivo | dayan | gamba | marquez

prof gusjuly 27, 2011