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Project Project Management Management

Expect the UnexpectedExpect the Unexpected

Bob CasagrandeBob CasagrandeAdjunct Professor, School of EngineeringAdjunct Professor, School of Engineering

Director, Operations and Facilities ManagementDirector, Operations and Facilities ManagementSouthern Methodist UniversitySouthern Methodist University

A Project A Project

A sequence of tasks performed to A sequence of tasks performed to achieve a unique goal within a specific achieve a unique goal within a specific time frame. time frame.

A temporary endeavor undertaken to A temporary endeavor undertaken to create a unique project or servicecreate a unique project or service

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Project ManagementProject Management

Planning your future outcomesPlanning your future outcomesConstruction on time and within budgetConstruction on time and within budget

Hitting your target even when it rainsHitting your target even when it rainsGetting it done and still having funGetting it done and still having fun

Expecting the UnexpectedExpecting the UnexpectedAssessing the unknownAssessing the unknownBuilding and executing excitementBuilding and executing excitement

Effective project management is the Effective project management is the critical differencecritical difference betweenbetween

and one that is and one that is embroiled in embroiled in seemingly continual seemingly continual difficultiesdifficulties

a profitable a profitable project that meets project that meets customer needscustomer needs

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Project Management Project Management (A (A –– B) = CB) = C22

AANew ConstructionNew ConstructionRemodelsRemodelsRenovationsRenovationsAlterationsAlterationsImplementationsImplementationsPlansPlansProgramsProgramsSchemesSchemesEventsEvents

CC

Cost Overruns Cost Overruns LiabilitiesLiabilitiesChange Orders Change Orders Delays Delays SuitsSuitsLiens Liens Under AllocationsUnder AllocationsContract DisputesContract DisputesErrorsErrorsAdjustmentsAdjustments

BB

IntegrationIntegrationScopeScopeTimeTimeProcurementProcurementRelationshipsRelationshipsCommunicationCommunicationQuality Quality CostsCostsRisksRisks

The ProfessionThe Profession

Began in 1968Began in 1968Now considered a profession Now considered a profession

Differentiates a project manager from a Differentiates a project manager from a functional managerfunctional manager

Major fieldsMajor fieldsConstruction, architecture, engineering Construction, architecture, engineering information technologyinformation technology

Management SkillsManagement Skills

ScopeScopeTimeTimeCost Cost ProcurementProcurement

RelationshipsRelationshipsCommunicationCommunicationQualityQualityRiskRisk

IntegrationIntegration

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Management SkillsManagement Skills

Scope ManagementScope ManagementUsed to define the work that needs to be done on any given Used to define the work that needs to be done on any given projectproject

Time ManagementTime ManagementCreating or refining the work breakdown structure, determining Creating or refining the work breakdown structure, determining dependency relationships estimating the efforts and duration of dependency relationships estimating the efforts and duration of the tasks and creating the schedulethe tasks and creating the schedule

Cost ManagementCost ManagementCost categories, estimating use of each resource in each Cost categories, estimating use of each resource in each category category Fixed and variable cost budgetsFixed and variable cost budgets

Management SkillsManagement Skills

Procurement ManagementProcurement ManagementDeveloping executing and monitoring contracts and Developing executing and monitoring contracts and purchase orderspurchase orders

Relationships ManagementRelationships ManagementIdentify and stakeholders and their involvementIdentify and stakeholders and their involvement

Management SkillsManagement Skills

Communications ManagementCommunications ManagementMost important and most often neglectedMost important and most often neglectedWho needs what information to what level of detail and what Who needs what information to what level of detail and what media and time framesmedia and time frames..

Quality ManagementQuality ManagementQuality planning, Quality Assurance and Quality controlQuality planning, Quality Assurance and Quality control

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Management SkillsManagement Skills

Risk managementRisk managementPotential risk to a project Potential risk to a project their likelihood of occurrencetheir likelihood of occurrenceImpact to projectImpact to projectPrevention and response plansPrevention and response plans

Integration ManagementIntegration ManagementCreation of a cohesive comprehensive and well designed Creation of a cohesive comprehensive and well designed project pan and the execution of that planproject pan and the execution of that plan

Resources/ConstraintsResources/Constraints

Quality

Resources

TimeTime

ScopeScope

Project Management Triangle 5 Interrelationships of Success

CostCost

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Quality

Resources

CostCostTimeTime

ScopeScope

Project Management Triangle Scope Creep

WhatWhat’’s in it for me?s in it for me?True or FalseTrue or False

A) Using project management tools and A) Using project management tools and techniques will guarantee a projecttechniques will guarantee a project’’s successs success

B) Using project management tools and B) Using project management tools and techniques doesntechniques doesn’’t really help; it just adds t really help; it just adds overhead overhead

Project ManagementProject ManagementTechniquesTechniques

Gantt, PERT and CPMGantt, PERT and CPM1800s 1800s Henry Gantt Task and Bonus System at Henry Gantt Task and Bonus System at

Bethlehem steelBethlehem steel1950s1950sPert Pert ---- Program Evaluation and Review Program Evaluation and Review

Technique used network diagramming Technique used network diagramming CMP Critical Path diagramming called activity on CMP Critical Path diagramming called activity on

node longest pathnode longest path

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Project ProcessesProject Processes

Initiating Planning

Executing Controlling

Closing

InitiatingInitiating

One single process that is authorizing One single process that is authorizing the project or phase the project or phase

Planning ProcessPlanning ProcessCore processesCore processes

Scope Scope PlanningPlanningDefinitionDefinition

Activity Activity DefinitionDefinitionSequencingSequencingDurationDuration

ScheduleScheduleDevelopmentDevelopment

CostCostEstimating Estimating BudgetingBudgeting

Risk Mgmt PlanningRisk Mgmt PlanningResource Planning Resource Planning Project Plan DevelopmentProject Plan DevelopmentQuality PlanningQuality PlanningOrganizationalOrganizationalCommunicationCommunicationRisk identificationRisk identificationQualitative risk analysisQualitative risk analysisQuantitative Risk analysisQuantitative Risk analysisRisk response planningRisk response planningProcurement Procurement SolicitationSolicitation

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Executing ProcessExecuting Process

ExecutionExecutionQuality assuranceQuality assuranceTeam developmentTeam developmentInformation distributionInformation distributionSolicitationSolicitationSource selectionSource selectionContract administrationContract administration

Controlling ProcessControlling Process

Integrated Change ControlIntegrated Change ControlScope verificationScope verificationSchedule Control Schedule Control Cost Control Cost Control Quality ControlQuality ControlPerformance ReportingPerformance ReportingRisk Monitoring ReportingRisk Monitoring Reporting

Closing ProcessClosing Process

Contract CloseoutContract CloseoutAdministrative ClosureAdministrative Closure

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Life CycleLife Cycle

Stage 1

Stage 2

Stage 3

Stage 4

Perc

ent C

ompl

ete

Life CycleLife Cycle

Stage 1 Stage 2Stage 3

Stage 4Perc

ent C

ompl

ete

Project ‘Go’Decision

Let Major Contracts

Substantial Completion

Fully Operational

Stage 1 FeasibilityStage 1 Feasibility

Project FormulationProject FormulationFeasibility Studies Feasibility Studies Schematic Design and approvalSchematic Design and approval

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Stage 2 Planning & Design Stage 2 Planning & Design

Design DevelopmentDesign DevelopmentDetailed PlanningDetailed PlanningCost and ScheduleCost and ScheduleContact Terms and ConditionsContact Terms and Conditions

Stage 3 ConstructionStage 3 Construction

ConstructionConstructionManufacturing Manufacturing DeliveryDeliveryCivil Works Civil Works InstallationInstallationTestingTesting

Stage 4 Turnover and Stage 4 Turnover and startupstartup

Final testing Final testing CommissioningCommissioningOperations and MaintenanceOperations and MaintenanceSubmittals Submittals AsAs--built plansbuilt plansWarranteesWarranteesSpecificationsSpecifications

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Life CycleLife Cycle

Stage 1 Stage 2Stage 3

Stage 4Perc

ent C

ompl

ete

Project ‘Go’Decision

Let Major Contracts

Substantial Completion

Fully Operational

Ability to influence project quality cost and scheduleAbility to influence project quality cost and scheduleCost to implement changes in quality cost and scheduleCost to implement changes in quality cost and schedule

HighHigh

LowLowProject Project definitiondefinition

Schematic Schematic DesignDesign

Design Design DevelopmentDevelopment

ProcurementProcurement ConstructionConstruction

Measures of SuccessMeasures of Success

Traditional MeasuresTraditional Measures

On Time On Time

Within BudgetWithin Budget

Value MeasuresValue MeasuresScopeScope

Were project goals met?Were project goals met?

QualityQualityWas client satisfied?Was client satisfied?

ResourcesResourcesWere there casualties Were there casualties either to the team or to either to the team or to interrelationships?interrelationships?

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Measuring PerformanceMeasuring Performance

SPI Schedule Performance IndexSPI Schedule Performance IndexCPI Cost Performance IndexCPI Cost Performance Index

CPICPI

Earned work hours or dollars to date (EV)Earned work hours or dollars to date (EV)Actual work hours or dollars to date (AC)Actual work hours or dollars to date (AC)

Comparison of the number or work hours Comparison of the number or work hours being spent on work tasks to the hours being spent on work tasks to the hours budgetedbudgeted

It is an indicator of productivity It is an indicator of productivity

SPISPI

Sum of Earned work hours to date (EV)Sum of Earned work hours to date (EV)Sum of scheduled work hours to date (PV)Sum of scheduled work hours to date (PV)

The amount of work performed to the The amount of work performed to the amount scheduled to a point in timeamount scheduled to a point in time

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Indices InterpretationsIndices Interpretations

CPI > 1.0CPI > 1.0Overestimated amount of effort requiredOverestimated amount of effort requiredMeasurement of percent of completion is too Measurement of percent of completion is too optimisticoptimisticBetter than planned productivityBetter than planned productivity

CPI <1.0CPI <1.0Underestimated amount of effort requiredUnderestimated amount of effort requiredMeasurement of percent completion too Measurement of percent completion too pessimisticpessimisticPoorer than planned productivityPoorer than planned productivity

Indices InterpretationsIndices Interpretations

SPI > 1.0SPI > 1.0Started work prior to or out of sequence to logical Started work prior to or out of sequence to logical restraintsrestraintsBetter than planned productivity resulting in activities Better than planned productivity resulting in activities complete earlycomplete earlyWorking on critical activitiesWorking on critical activities

SPI < 1.0SPI < 1.0Understaffing or under equipping activitiesUnderstaffing or under equipping activitiesDelayed in starting of activitiesDelayed in starting of activitiesWork is more difficult than plannedWork is more difficult than plannedImproper sequencing of activitiesImproper sequencing of activitiesWork is disorganizedWork is disorganized

Success FormulaSuccess Formula

ProjectProject A temporary endeavor undertaken to create a a unique A temporary endeavor undertaken to create a a unique project or serviceproject or servicePP-- MGMTMGMT ––Managing the process to successful completionManaging the process to successful completionProcessProcess –– Initiating, planning, executing, controlling & closingInitiating, planning, executing, controlling & closingMGMT skillsMGMT skills –– integration, scope, time, communication, integration, scope, time, communication, procurement, quality, Relationships, cost & riskprocurement, quality, Relationships, cost & riskLife CycleLife Cycle –– feasibility, planning & design, construction, feasibility, planning & design, construction, turnover and startupturnover and startupMeasure your successMeasure your success SPI, CPI etc.SPI, CPI etc.

Expect the UnexpectedExpect the Unexpected

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Project Project Management Management

Expect the UnexpectedExpect the Unexpected

Bob CasagrandeBob CasagrandeAdjunct Professor, School of EngineeringAdjunct Professor, School of Engineering

Director, Operations and Facilities ManagementDirector, Operations and Facilities ManagementSouthern Methodist UniversitySouthern Methodist University