ILU Project Management Training Project Management I Project Initiation & Planning.

ILU Project Management TrainingILU Project Management Training

Project Management IProject Management I

Project Initiation & PlanningProject Initiation & Planning

Agenda - Day OneAgenda - Day One

• Introductions• Project Management Overview• Break• Project Lifecycle• Lunch• Five PMI Project Management Processes• Break• Nine PMI Project Management Areas of Knowledge• Break• Organizational Influences• Wrap-up

IntroductionsIntroductions

• Name• Department• Number of years at ILICO• Number of projects you have managed• Average size of project you have managed• Course expectations• Ice breaker

Ground RulesGround Rules

• Level Playing Field (titles left at the door)• One conversation at a time• Respect opinions of others• No beating a dead horse• Come back from breaks ON TIME• Have FUN

Brain TeaserBrain Teaser

GET ITGET ITGET ITGET IT


STROKES!Strokes

Strokes

Course ObjectivesCourse Objectives

• Understand characteristics of a project• Understand characteristics of a project manager• Understand the PMI project lifecycle• Understand the 4 components of PMI project management• Understand the 9 bodies of knowledge of PMI project management• How does project management operate within an organizational

structure• How to define a project• Use Work Breakdown Structures as PM tool

Project Management OverviewProject Management Overview

• 50% of all finished projects contain < 70% of original functionality - Center for Project Management

• Of the 175,000 projects costing $250 billion each year, 52.7% will over run their cost estimates by 189% - Standish Group

• 31% of all projects were cancelled before they ever got completed - Standish Group

• Less than1% of all systems development efforts are completed under budget and meeting user requirements - T. Capers Jones

Project Management Track RecordProject Management Track Record

Ten Causes of Project BustsTen Causes of Project Busts


• Poor problem definition• Lack of support• No one in charge• Project plan lacks structure• Project plan lacks detail• Project is under funded• Insufficient resources• Poor tracking• Poor communication• Project strays from goals

» IS Managers Survey


• * Poor problem definition

• * Lack of support

• * No one in charge

• * Project plan lacks structure

• * Project plan lacks detail

• * Project is under funded

• * Insufficient resources

• Poor tracking

• * Poor communication

• Project strays from goals» IS Managers Survey

* project initiation and planning will help mitigate

Level 1Embryonic

Level 0

No Problem isrecognized

Project Scope,

Timing, Cost, and Quality

are not monitored

Level 3Growth

A need for improved

project mgmtis recognized

Benefits of improved

project mgmtare understood

Investigationof improvement

is explored

Project planning

is required

Project processes

are developed forproject-to-project

improvement

Project mgmttools are provided

Project status ontiming, cost,

scopeand quality is expected with empirical data

A continuing education program

is establishedfor project mgmt

Support forproject mgmtis evident at various levels

of the organization

Resources areinvested in

education andassistance

More authorityis allocated to

the project team

The managementteam establishes

project mgmt expectations

Level 2Commitment

Integrated cost and

schedule control indicators areimplemented

The organizationestablishes a

project managercareer path

A project mgmtadministrative

office is established

A continuousimprovement

process forproject mgmt is

established

Level 4Maturity

Project Management QuestionnaireProject Management Questionnaire

ILICo

Why This Course?Why This Course?

• ILICO is serious about adopting and implementing proven project management framework

• Course will explain purpose and steps of the project management initiation and planning phases

Definition of a ProjectDefinition of a Project

• As defined by the Project Management Institute, in the Project Management Body of Knowledge (PMBOK):– “A temporary endeavor undertaken to create a unique product or

service.”

– A project has a definite beginning with a definite end. The end is achieved when the project’s objectives of scope, timing, cost and quality have been reached or when these objectives cannot be reached and the project is terminated.

– A unique product or service implies it has not been done before or it is different in some distinguishing way from similar products or services.

Characteristics of a ProjectCharacteristics of a Project

• Brings change to an existing organization

• Is a unique effort - one which is not repeated over time

• Resources are allocated for the duration of a project only

• Typically involves a temporary organization (formal or informal)

• Often causes conflicts with existing operational resources

• Usually involves cross functional resources

• Has a defined start and end point, not an ongoing effort

• Estimates for timing and cost are mere estimates

• Changes to the scope and objectives can occur during the project lifecycle

Definition of Project ManagementDefinition of Project Management

• As defined by the Project Management Institute, in the Project Management Body of Knowledge (PMBOK):

– “Project management is the application of knowledge, skills tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.”

– This involves balancing competing demands among:Scope, time, cost and qualityStakeholders with differing needs and expectationsIdentified requirements (needs) and unidentified requirements

(expectations)

– Program Management is a group of related projects managed in a coordinated way. Also synonymous with project management in some organizations.

Characteristics of a Project ManagerCharacteristics of a Project Manager

• Communication skills• Facilitation skills• Leadership skills• Organizational skills• Negotiating skills• Project Management Technical skills

Communication SkillsCommunication Skills

• Excellent verbal skills– with peers, management customers…

• Good writing skills– memos, status reports, meeting minutes...

• Excellent meetings skills– agenda preparation, meeting facilitation, issues identification...

• Good Listener

Facilitation SkillsFacilitation Skills

• Facilitates conflict resolution– team member to team member

– team member to functional organization

– project to organization

– project to stakeholder

Leadership SkillsLeadership Skills

• Ability to form a team and develop team cohesiveness

• Understands how to motivate team and achieve results

• Understands how to motivate individuals

Organizational SkillsOrganizational Skills

• Good personal time management• Delegates/evaluates issues• Ability to multi-task

Negotiating SkillsNegotiating Skills

• Contract services• Purchased goods for the project• Resources from participating functional

organizations• Stakeholder requirements and expectations

Project Management Technical SkillsProject Management Technical Skills

• Understands: – the time management process and numbers

– the cost management process and numbers

– quality and how to meet the requirements

– the scope management process and control

– how to effectively manage different projects

– alternatives to correct deteriorating trends

Group ExerciseGroup Exercise

Break Time!Break Time!


1 3 5 7 9WHELMING


GOLDEN GATE

H2O


JUS 144 TICE

Initiation

Planning

Controlling

Executing

Closing

Concept Define Develop Deliver

Project Lifecycle Phases

Maj

or

Pro

cess

es

Initiation FormCharter Doc

Project PlanDesign

Status ReportIssues M gm tScope M gm t

Delivery FormPI Review

Ÿ Project Scope M anagem entŸ Project T im e M anagem entŸ Project Cost M anagem entŸ Project Q uality M anagem ent

9 Project Management Knowledge AreasŸ Project Hum an Resource M anagem entŸ Project Com m unications M anagem entŸ Project R isk M anagem entŸ Project P rocurem ent M anagem ent

Project Integration M anagem ent

PhaseDeliverables

Initiation

Planning

Controlling

Executing

Closing



Maj

or

Pro

cess

es


Project PlanDesign






PhaseDeliverables

Project Life CycleProject Life Cycle

RequirementsGathering

System Design andPrototyping

Code andUnit Testing

AcceptanceTesting and Deployment

Software Development Life Cycle

Facilities Project Life Cycle

Request andInitial

Forecast

Layout,Estimating,

and Funding

Facility Design,BOM, and

Construction

Debug andPunchlist

Power Plant Outage Project Life Cycle

Feasibility andStrategic Plan

Approval

EngineeringDesign and

Contract Terms

Materials andConstruction

Testing and Start-up

Examples of Project Life CyclesExamples of Project Life Cycles

Indianapolis Life’s Project Life CycleIndianapolis Life’s Project Life Cycle

• Concept (Initiation, Charter, …)

• Define (Planning, Scheduling, Design, …)

• Develop (Creation, Testing, …)

• Deliver (Implementation, PI Review, …)

Characteristics of a Project Life Cycle: Cost and resources are at lower levels during the beginning,

peak towards the middle and end, and drop-off rapidly near the end.

Probability of completing the project successfully is lowest at the start, hence risk and uncertainty is greatest at the beginning.

The ability of stakeholders to influence the cost and outcome of the project is greatest at the beginning.

Due to the complexity and uncertainty of projects, organizations usually divide the project into phases. These phases collectively become the project life cycle.


Characteristics of a Project Phase: Completion of one or more deliverables. Phases are generally sequential, but may overlap. The end of each phase normally involves a review of the

deliverables. These reviews require a decision to either move forward to

the next phase, perform further work in the current phase or terminate the project altogether.

Due to the complexity and uncertainty of projects, organizations usually divide the project into phases. These phases collectively become the project life cycle.

Project Life Cycle PhasesProject Life Cycle Phases


ScopeTimeCostQualityRiskCommunications

Human Resources

Contract / Procurement


Human Resources



Human Resources


TIME


Human Resources



Set up organization & communications

Motivate Team Detail Requirements Establish Work

Packages and Information Control Systems

Procure goods and services

Execute Work Packages

Direct/Monitor/Fore-cast/Control: Scope, Quality, Time, Cost

Resolve Problems

Gather Data Identify Project

Needs Establish Goals,

objectives, basic economics, feasibility, stakeholders,risk level, strategy, potential team

Estimate Resources Present Proposal Obtain approval for

next phase

Appoint Key Team members

Conduct Studies Develop Scope

Baseline, products, quality standards, resources, work tasks

Establish Master Plan, Budget, Cash Flow, WBS, Policies and procedures

Assess Risks Confirm Justification Present Project Brief Obtain approval to

proceed

Finalize product or services

Review and accept Settle final accounts Transfer product or

service responsibility Evaluate Project Document Lessons

Learned Release/Redirect

Resources Reassign Project

Team

TIME



Project Life Cycle - Concept PhaseProject Life Cycle - Concept Phase

• Gather Data• Identify project needs• Establish goals, objectives, feasibility,

stakeholders, risk level, strategy, potential team• Estimate resources• Present proposal• Obtain approval for next phase

Project Life Cycle - Define PhaseProject Life Cycle - Define Phase

• Appoint key team members• Conduct studies• Define

– scope baseline - resources

– products - work tasks

– quality standards

• Establish– master plan - WBS

– budget - policies & procedures

Project Life Cycle - Develop PhaseProject Life Cycle - Develop Phase

• Set up organization and communications• Motivate team• Detail requirements• Establish work packages and information control systems• Procure goods and services• Execute work packages• Direct, monitor, forecast, control:

– scope - time– quality - cost

• Resolve Problems

Project Lifecycle - Deliver PhaseProject Lifecycle - Deliver Phase

• Finalize product or services• Review and accept• Settle final accounts• Transfer product or service responsibility• Evaluate project• Document lessons learned• Release/redirect resources• Reassign project team

Influence on Cost

TIME

High

Low

Beginning Phases Intermediate Phases Final Phases

Cost Expenditure

Cost Influence

Abilityto

InfluenceCost


Resources per Phase

The greatest amount of resource usage normally occurs during the implementation phase of the project.

TIME

Concept Development Implementation Termination

RESOURCES


Five PMI Project Management ProcessesFive PMI Project Management Processes

Initiation

Planning

Controlling

Executing

Closing



Maj

or

Pro

cess

es


Project PlanDesign






PhaseDeliverables

InitiatingProcesses

PlanningProcesses

ExecutingProcesses

ControllingProcesses

ClosingProcesses

Plan developed for execution

Plan is executed and Controlled

As the executionis controlled, it mayrequire additional

planning

Plan is successfully executedPlan and execution has been controlled

Feedback in both directions

Project or phase is approvedin order to proceed

5 PMI PM Processes5 PMI PM Processes

5 PMI PM Processes - Initiating5 PMI PM Processes - Initiating

Initiate• Initiating Processes

– Initiation is the process of formally recognizing that a new project exists or that an existing project should continue into its next phase.

InputsTools &

Techniques Outputs

•Product Description

•Strategic Plan

•Project selection Criteria

•Historical Information

•Project Selection methods

•Expert judgment

•Project Charter

•Project manager identified/ assigned

•Constraints

•Assumptions


Definition• The process of formally recognizing that a new project

exists or that a project should proceed to the next phase

• Projects are normally identified as the result of:– Market demand

– Business needs

– Customer request

– Technology advance

– Legal requirements

Project Scope Management

“A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully.”

The project scope is measured against the plan and the product scope is measured against the requirements upon completion. These two scope management areas need to be integrated to ensure successful completion of the project.

Product scope is the features and functions included in a product or service.

Project scope is the work required to deliver the product with it’s features and functions.


Once a potential project has been identified, the following items need to be available or developed by a project manager and the senior management team:

Product description - documents the characteristics of the product or service, it also identifies where the need was recognized from the previous list. The more detail contained in the product description, the better, but the product description will normally become more detailed as the project progresses.

Initial high level budget and timing estimates with resource requirements

Strategic goals - all potential projects should be in support of the strategic goals of the organization

Project selection criteria - ROI, market share, impact on the organization (positive/negative), or probability of success

Historical information - how successful has past project selections been, previous project performance


A project selection method is applied to the previous list of inputs. The project initiation method involves a documented process for project initiation that includes:

• Identified individuals or group of individuals to make the decision• A method of evaluating project selection criteria (comparison to other

projects, mathematical scores, presentations of opinions)• Expert judgment from consultants, professional organizations,

educational institutions, industry groups)• Communication plan of the decision• Forms and standards for submission


Planning Process– Planning is of major importance to a project because the project involves

doing something which has not been done before. However, the number of planning processes does not mean that project management is primarily planning – the amount of planning performed should be commensurate with the scope of the project and the usefulness of the information developed.

InputsTools &

Techniques Outputs

•Other planning outputs

•Historical info

•Organizational policies

•Constraints

•Assumptions

•Project planning methodology

•Stakeholder skills and knowledge

•Project management information system (PMIS)

•Project plan

•Supporting details

5 PMI PM Processes - Planning5 PMI PM Processes - Planning


• Scope Planning– developing a written scope statement as the basis for future project decisions

(ex. Freshly painted blue house with 2 coats of paint)

• Scope Definition– subdividing the major project deliverables into smaller, more manageable

components

• Activity Definition– identifying the specific activities that must be performed to produce the various

project deliverables (ex. Purchase paint, position ladders, apply paint…)

• Activity Sequencing– identifying and documenting interactivity dependencies (ex. Must purchase

before application)


• Activity Duration Estimating– estimating the number of work periods which will be needed to complete

individual activities

• Schedule Development– analyzing activity sequences, activity duration's and resource requirements to

create the project schedule

• Resource Planning– determining what resources (people, equipment, materials) and what quantities

of each should be used to perform project activities

• Cost Estimating– developing an approximation (estimate) of the costs of the resources needed to

complete project activities


• Cost Budgeting– allocating the overall cost estimate to individual work items

• Project Plan Development– taking the results of other planning processes and putting them into a

consistent, coherent document

5 PMI PM Processes - Executing5 PMI PM Processes - Executing

Execute• Executing Processes

– Project execution is the accomplishment of the objectives of the project by the performing organization.

InputsTools &

Techniques Outputs

•Project Plan

•Supporting details

•Organizational policies

•Corrective action

•General mgmt skills

•Product skills & knowledge

•Work authorization system

•Status review mtings

•Project mgmt info

•Organizational procedures

•Work results

•Change requests


• Project Plan Execution– carrying out the project plan by performing the activities included

therein

• Scope Verification– formalizing acceptance of the project scope

• Quality Assurance– evaluating overall project performance on a regular basis to provide

confidence that the project will satisfy the relevant quality standards

• Team Development– developing individual and group skills to enhance project performance


• Information Distribution– making needed information available to project stakeholders in a timely

manner

• Solicitation– obtaining quotations, bids, offers or proposals as appropriate

• Source Selection– choosing from among potential sellers

• Contract Administration– managing the relationship with the seller

Controlling ProcessesProject performance must be measured regularly to identify variances from the plan. Variances are fed into the control processes in the various knowledge areas. To the extent that significant variances are observed (i.e., those that jeopardize the project objectives), adjustments to the plan are made by repeating the appropriate project planning processes. Controlling also includes taking preventative action in anticipation of possible problems.

InputsTools &

Techniques Outputs

•Project plan

•Performance reports

•Change requests

•Change control system

•Configuration Management

•Performance Management

•Additional Planning

•PMIS

•Project plan updates

•Corrective action

•Lessons learned

5 PMI PM Processes - Controlling5 PMI PM Processes - Controlling


• Overall Change Control– coordinating changes across the entire project

• Scope Change Control– controlling changes to the project scope

• Schedule Change Control– controlling changes to the project schedule

• Cost Control– controlling changes to the project budget

• Quality Control– Monitoring specific project results to determine if they comply with relevant quality

standards and identifying ways to eliminate causes of unsatisfactory performance


• Performance Reporting– collecting and disseminating performance information. This includes

status reporting, progress measurement and forecasting

• Risk Response Control– responding to changes in risk over the course of the project

5 PMI PM Processes - Closing5 PMI PM Processes - Closing

• Closing Closing Processes Administrative closure – generating gathering, and disseminating

information to formalize phase or project completion

Contract close-out – completion and settlement of the contract, including resolution of any open items

InitiatingProcesses

PlanningProcesses

ExecutingProcesses

ControllingProcesses

ClosingProcesses

Plan developed for execution

Plan is executed and Controlled

As the executionis controlled, it mayrequire additional

planning

Plan is successfully executedPlan and execution has been controlled

Feedback in both directions

Project or phase is approvedin order to proceed

5 PMI PM Processes5 PMI PM Processes

Lunch Time!Lunch Time!

Nine PMI Areas of KnowledgeNine PMI Areas of Knowledge

Initiation

Planning

Controlling

Executing

Closing



Maj

or

Pro

cess

es


Project PlanDesign






PhaseDeliverables

1. Scope Management 1. understanding what is to be accomplished, by who and when? Ensure

everyone focused on the right activity at the right time

2. Risk Management 2. minimizing threats and weakness while optimizing opportunities and

strengths

3. Quality Management 3. determining the quality policy of the project and then determining the

practices to ensure project quality

4. Human Resource Management 4. determining the roles and responsibilities of the resources necessary to

support the project as well as the skills and timing needs

5. Communications Management 5. determines what will be communicated, Frequency of communications

and who will receive communications

9 PMI PM Knowledge Areas9 PMI PM Knowledge Areas

• Contract / Procurement Management – determines how suppliers will be selected and the contract types that

will be administered

• Time Management– determines how long each activities takes to complete to ensure timely

completion of the project

• Cost Management – determines the costs of resources and materials to ensure that the

project is completed within the approved budget

• Integration Management – Each BOK is integrated with each other at differing degrees of

application depending on where and when you are in the life cycle phase

9 PMI PM Knowledge Areas9 PMI PM Knowledge Areas

Scope Management – “The function of controlling a project in terms of its deliverables and

objectives through the concept, development, implementation and termination phases of a project.” (PMBOK)

Key Points:– Establish and document the project deliverables and objectives– Scope statement, items included and not included Justification,

Overall Timing, Financial Budget, Assumptions and Constraints – Work Breakdown Structure, basis of work– Resources are defined and they support the deliverables,

objectives, scope and WBS– Implementing a change control process on the project deliverables,

resources, WBS

9 PMI PM Knowledge Areas - Scope9 PMI PM Knowledge Areas - Scope

Risk Management – “The formal process of identifying, analyzing and responding to risk

factors throughout the life of a project and in the best interest of its objectives.” (PMBOK)

Key Points:– “Project risk is the chance of uncertain occurrences that will

adversely affect project activities.” (PMBOK) – Identification of risk - Impact analysis - Response system and

Response planning– Goal: Reduce the likelihood and impact of a negative event or

optimize opportunity

9 PMI PM Knowledge Areas - Risk9 PMI PM Knowledge Areas - Risk

Quality Management – “Quality itself is the composite of material attributes of the product

process or service that is required to satisfy the need for which the project is launched.” (PMBOK)

Key Points:– Proceed through a project’s four phases with zero deviations from

the project specifications/objectives– Improve the quality of the project process and the quality of the

project outcome improves

Q

9 PMI PM Knowledge Areas - Quality9 PMI PM Knowledge Areas - Quality

Human Resource Management – “The function of directing and coordinating human resources

throughout the life of the project by applying the art and science of behavior and administrative knowledge to achieve predetermined project objectives of scope, cost, time quality and participant satisfaction”. (PMBOK)

Key Points:– Identify the necessary skills for the success of the project– Choose the right people for the project (most available and qualified

for the assignment)– Set up the right organization (functional, matrix, project)– Communications (how teams communicate inter and intra-team– Team building (team formation and conflict resolution)

9 PMI PM Knowledge Areas - HR9 PMI PM Knowledge Areas - HR

Communications Management – “The proper organization and control of information transmitted by

whatever means to satisfy the needs of the project. It includes the processes of transmitting, filtering, receiving and interpreting or understanding information using appropriate skills according to the application in the project environment.” (PMBOK)

Key Points:– Communication can be upward, downward, lateral or diagonal– Mediums include: oral, verbal, written, non-verbal and visual– Barriers to communication - withholding information, hidden agendas

or mixed messages

9 PMI PM Knowledge Areas - Communication9 PMI PM Knowledge Areas - Communication

Contract / Procurement Management – “The function through which resources (including people, plant,

equipment and materials) are acquired for the project (usually through some form of formal contract) in order to produce the end product.” (PMBOK)

Key Points:– Objective - Acquisition - Procurement– Acquisition: Methods, source selection, contract type, documents,

bidding process, evaluation/negotiations award– Allocation of risk: Firm fixed price, cost plus fixed fee

Contractfor Services

9 PMI PM Knowledge Areas - Procurement9 PMI PM Knowledge Areas - Procurement

Time Management – “The function required to maintain appropriate allocation of time to

the overall conduct of the project through the four phases of the project by means of the processes of the time planning, time estimating, time scheduling and schedule control.” (PMBOK)

B

C

D E F

G I J K

L M N

9 PMI PM Knowledge Areas - Time9 PMI PM Knowledge Areas - Time

Cost Management – “The function required to maintain effective financial control of the

project through the processes of evaluating, estimating, budgeting, monitoring, analyzing, forecasting and reporting the cost information.” (PMBOK)

9 PMI PM Knowledge Areas - Cost9 PMI PM Knowledge Areas - Cost

Integration Management – “The processes required to ensure that the various elements are

properly coordinated. It involves making tradeoffs among competing objectives and alternatives in order to meet or exceed stakeholder needs and expectations.” (PMBOK)

Key Points:– Project plan development - taking the results of other planning

processes and putting them into a consistent, coherent document– Project plan execution - carrying out the project plan by performing

the activities included therein– Overall change control - coordinating changes across the entire

project

9 PMI PM Knowledge Areas - Integration9 PMI PM Knowledge Areas - Integration

Triple ConstraintTriple Constraint

As project managers, we are always trying to manage the constraints of product, schedule, and budget

Schedule Budget

Pro

duct

… The “Triple Constraint”



Human Resources



Human Resources



Human Resources


TIME


Human Resources


Project Life Cycle Wrap-UpProject Life Cycle Wrap-Up


FGHIJKLMNOPQRSTFGHIJKLMNOPQRST


VAD ERS


NOXQQIVIT

Organizational InfluencesOrganizational Influences

Initiation

Planning

Controlling

Executing

Closing



Maj

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Pro

cess

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Project PlanDesign






PhaseDeliverables

Projects are part of an organization, which will influence the project during it’s life cycle.

Organizations can be classified as:

Project-Driven Organizations operations deal primarily with projects. These organizations derive their revenue from performing projects for others or the organization has adopted management by projects.

ORNon-Project-Driven Organizations which derive their primary revenue from operations other than projects. Insurance companies, financial institutions, manufacturing companies and utility companies are normally examples of non-project-driven organizations.


The project management team needs to be aware of the type of organization they are working within. The organizational influences will vary significantly with the degree of operations from project-driven to non-project-driven.

The structure of the organization has many variations:

(1) Functional Organization: “An organizational structure in which staff are grouped hierarchically by specialty.

MGR

CEO

MGR MGR

STAFF STAFF STAFF

Project Coordination


(2) Matrix Organization: “Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of individuals assigned to the project.”

Matrix organizations can vary from a weak matrix, where most of the characteristics of a functional organization exists and the project manager has limited authority, to a strong matrix organization, where the project manager has an equal or greater authority on the project than the functional organizations.

MGR

CEO

MGR MGR

PROJECTMGR

STAFF STAFF



Project Size

Project Complexity

Project Duration

Project Budget

Importance to the Organization

Management Philosophy

Physical Location

Number of Participating Groups

The degree an organization is matrixed on a project typically relies upon factors such as:


(3) Project Organization: “Any organizational structure in which the project manager has full authority to assign priorities and to direct the work of individuals assigned to the project.”

PROJECTMGR

CEO

PROJECTMGR

PROJECTMGR

STAFF STAFF STAFF



Organizational Type

Functional Weak Matrix Strong Matrix Project

Little/None Limited Moderate/High High/Total

Part-Time

Project Mgr.'sRole

Part-TimeProject Mgmt.Admin. Staff Full-Time

Good ProjectMgmt. System

Full-Time

Percent of TeamAssigned Full

Time

Part-Time

Ability of ProjectTeam to InfluenceOrganizational &Process Changes

Project Mgr.'sAuthority

Part-Time Full-Time Full-Time

Little/None Little Secondary/Integration

Strong System for Projects

None 0-25% 50-90% 80-100%

Little/None Limited Moderate/High High/Total

ProjectCharacteristics


The project management team needs to recognize the potential socioeconomic influences on the project. These influences can be as great or greater than organizational influences.

Some examples are:

Regulations - building codes, Nuclear Regulatory Commission on construction of a nuclear power plant, government contracts

Standards - EDI, metric vs. U.S system, wire color

International - time zone differences, holidays, politics, transportation

Cultural - education, religious, attitudes, beliefs

Socioeconomic InfluencesSocioeconomic Influences

Agenda - Day TwoAgenda - Day Two

• Day One Overview• Project Initiation• Project Planning• Break• Project Charter• Lunch• Work Breakdown Structures• Resource Estimates• Break• Project Schedule Development• Review and Wrap-up

Day One OverviewDay One Overview

• Project Management Overview

• Project Lifecycle

• Five PMI Project Management Processes

• Nine PMI Project Management Areas of Knowledge

• Organizational Influences


EMPLOYMENTEMPLOYMENT


arrestyou’re

Project InitiationProject Initiation

Initiation

Planning

Controlling

Executing

Closing



Maj

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Pro

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Project PlanDesign






PhaseDeliverables

ILICo’s Project Initiation ProcessesILICo’s Project Initiation Processes

ProjectInitiation

EffortEstimate

IdeaD ocum ent Idea

& Est. E ffort

SponsorshipD ept. H ead Agrees to

Sponsor P ro ject

Resource CommitmentD ept. H eads Agree to SupplyR esources at a P lanned T im e

Project ManagementM anage Scope, T im e,

C ost, & Q uality

ClosureD eliver, C elebrate

& Lessons Learned

Prioritization Committee

StatusReport

ScopeChange

IssuesM gmt

W orkBreakdown

Charter(Larger Projects)

ResourceW orksheet

DeliveryAcceptance

ProjectReview

Total Cost> $250K?

Yes

Project Process Flowchart

Initiation Planning Execution & Control Closure


Create Project Initiation Form for the ILICO Construction Project

– Review project overview

– Review sample Project Initiation Form

– Break into groups

– Complete Project Initiation Form

– Present results

Project PlanningProject Planning

Initiation

Planning

Controlling

Executing

Closing



Maj

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Pro

cess

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Project PlanDesign






PhaseDeliverables

Project StakeholdersProject StakeholdersProject Stakeholders are: “individuals and organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion”.

The project management team must:

• Identify the project stakeholders• Determine their requirements• Determine their expectations• Manage and influence these requirements and expectations

The management of the project stakeholders’ requirements and expectations can be extremely difficult. The project management team should resolve conflicts in favor of the project customer.

Conflicts may surface, such as:The customer requires a modernized information system with a finite budget and implementation in a short period of time, while the Chief Information Officer expects the project to include state-of-the-art networking technology.

Categories of project stakeholders:• Internal• External• Owners• Financiers• Suppliers• Contractors• Team Members• Customers

Examples of project stakeholders:• Project Sponsor• Project Manager• Customer(s)• Team Members• Performing Organizations• CFO• Software Supplier• Operator

Project StakeholdersProject Stakeholders

ILICo’s Project Planning ProcessesILICo’s Project Planning Processes

ProjectInitiation

EffortEstimate

IdeaD ocum ent Idea

& Est. E ffort


Sponsor P ro ject



C ost, & Q uality


& Lessons Learned


StatusReport

ScopeChange

IssuesM gmt

W orkBreakdown


ResourceW orksheet

DeliveryAcceptance

ProjectReview

Total Cost> $250K?

Yes



Core Processes

5.2S cope

P lann ing

5.3S cope

D efin ition

6.1A ctivity

D efin ition

7.1R esourceP lann ing

6.2A ctivity

S equencing

6.3A ctivity

D ura tionE stim ating

7.2C ost

E stim ating

6.4S chedu le

D eve lopm ent

7 .3C ost

B udgeting

4.1P ro ject P lan

D eve lopm ent

PMI Planning Processes

Scope Planning (ILICo Project Charter)Scope Planning (ILICo Project Charter)

Scope planning is the process of developing a written scope statement as the basis for future project decisions including, in particular, the criteria used to determine if the project or phase has been completed successfully.

Outputs of Scope Planning:– Project justification - the business need that the project was undertaken to address.

The project justification provides the basis for evaluating future trade-offs.

– Project product - a brief summary of the product description.

– Project deliverables - a list of the summary level sub-projects whose full and satisfactory delivery marks completion of the project.

– Project objectives - the quantifiable criteria that must be met for the project to be considered successful. Project objectives must include, at least, cost, schedule and quality measures. Unquantified objectives entail high risk.


ENDND


NO NO

CORRECT


9ALL5


ProjectInitiation

EffortEstimate

IdeaD ocum ent Idea

& Est. E ffort


Sponsor P ro ject



C ost, & Q uality


& Lessons Learned


StatusReport

ScopeChange

IssuesM gmt

W orkBreakdown


ResourceW orksheet

DeliveryAcceptance

ProjectReview

Total Cost> $250K?

Yes



ILICo’s Project CharterILICo’s Project Charter

• Project charter defines the boundaries of the entire project• Tool that a Project Manager can choose to use on medium to

large projects • Components of a project charter include:

– project background - project responsibilities– objectives - delivery criteria– approach - communication plan– scope - cost– risks - scheduling– assumptions


Create Project Charter for the ILICO Construction Project Exercise

– Review project overview

– Review sample Project Charter

– Break into groups

– Complete Project Charter

– Present results

Lunch Time!Lunch Time!

Core Processes

5.2S cope

P lann ing

5.3S cope

D efin ition

6.1A ctivity

D efin ition


6.2A ctivity

S equencing

6.3A ctivity


7.2C ost

E stim ating

6.4S chedu le

D eve lopm ent

7 .3C ost

B udgeting

4.1P ro ject P lan

D eve lopm ent


Scope DefinitionScope Definition

Scope DefinitionScope Definition

Scope definition involves subdividing the major project deliverables (as identified in the scope statement) into smaller, more manageable components in order to:

– Improve the accuracy of cost, time, and resource estimates

– Define a baseline for performance measurement and control

– Facilitate clear responsibility assignments

Outputs of Scope Definition:– Work breakdown structure - A work breakdown structure is a deliverable-

oriented grouping of project elements that organizes and defines the total scope of the project: work not in the WBS is outside the scope of the project. As with the scope statement, the WBS is often used to develop or confirm a common understanding of project scope.


ProjectInitiation

EffortEstimate

IdeaD ocum ent Idea

& Est. E ffort


Sponsor P ro ject



C ost, & Q uality


& Lessons Learned


StatusReport

ScopeChange

IssuesM gmt

W orkBreakdown


ResourceW orksheet

DeliveryAcceptance

ProjectReview

Total Cost> $250K?

Yes



Work Breakdown Structure (WBS) - “A deliverable oriented ‘family tree’ which organizes, defines, and graphically displays the total work to be accomplished in order to achieve the ultimate deliverable of a project. Each descending level represents an increasingly detailed definition of the project deliverable.” (PMBOK)

1.1 MaterialsEstimation

1.0 ReroofHouse

WBS SCHEMATIC

Work Breakdown StructuresWork Breakdown Structures

1.2 MaterialsGathering

1.3 RoofApplication

1.1.1 MeasureRoof

1.1.2 CalculateMaterials

1.2.1 PurchaseMaterials

1.2.2 TakeDelivery

1.3.1 RoofRemoval

1.3.2 RoofApplication

1.3.1.1 RemoveShingles

1.3.1.2 RemoveNails 1.3.2.1 Apply

Shingles1.3.2.3 Apply

Caps1.3.2.2 Cut

Caps

Purpose of the WBS:

• Defines the work to be performed (Scope)• Basis for cost estimating and collection• Basis for resource allocation• Basis for time estimating• Defines responsibility of the work• Basis for determining relationships• Method for systematically decomposing the work effort to

determine the scope.

AboveCeiling

ConveyorInstallation

BelowCeiling

Conveyor

Work Breakdown StructuresWork Breakdown Structures

• Create WBS for construction project


ILICO Construction Project ExerciseILICO Construction Project Exercise

• WBS Schematic Expansion Project (0)

Existing Building (1.0)

New Building (1.1)

Landscaping (1.2)

Office Space (1.0.1)

Conference Rooms (1.0.2)

Office Space (1.1.1)

Conference Rooms (1.1.2)

Architectural Plan (1.2.1)

Implementation Plan (1.2.1.1)

Temporary Office Space (1.1.1.1)

Vendor Selection (1.2.1.2)

Core Processes

5.2S cope

P lann ing

5.3S cope

D efin ition

6.1A ctivity

D efin ition


6.2A ctivity

S equencing

6.3A ctivity


7.2C ost

E stim ating

6.4S chedu le

D eve lopm ent

7 .3C ost

B udgeting

4.1P ro ject P lan

D eve lopm ent


Resource PlanningResource Planning

Resource PlanningResource Planning

Resource planning involves determining what physical resources (people, equipment, materials) and what quantities of each should be used to perform project activities.

Outputs of Resource Planning:– Resource Requirements - The output of resource planning process is a

description of what types of resources are required and in what quantities for each element of the work breakdown structure. These resources will be obtained either through staff acquisition or procurement.

– Resource Estimate Worksheet - The resource estimate worksheet may be completed with the project initiation form to formulate initial thoughts on resource needs. It should be refined during the planning process.


ProjectInitiation

EffortEstimate

IdeaD ocum ent Idea

& Est. E ffort


Sponsor P ro ject



C ost, & Q uality


& Lessons Learned


StatusReport

ScopeChange

IssuesM gmt

W orkBreakdown


ResourceW orksheet

DeliveryAcceptance

ProjectReview

Total Cost> $250K?

Yes



Resource Estimate WorksheetResource Estimate Worksheet

Project Resource Estimate WorksheetProject Name: Project Name Estimated as of: 1/1/00

Estimated Resources by Month (FTEs)

Department Grouping Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00

Total Needed

Customer Care 0.0Marketing & Distribution 0.0 Agency 0.0 IMO 0.0 Strategic Alliances 0.0 Marketing Services 0.0 Whole Life Actuarial 0.0Information Technology 0.0Annuity & IL Securities 0.0Corporate Services 0.0 Corporate Services 0.0 Human Resources 0.0Financial 0.0 Controllers 0.0 Actuarial 0.0 Investments 0.0Legal 0.0Communications 0.0eBusiness & Planning 0.0Executive & Audit 0.0Total Resources 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Resource Cost -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$


PLASMA H2O


cy cy


U

STI

Core Processes

5.2S cope

P lann ing

5.3S cope

D efin ition

6.1A ctivity

D efin ition


6.2A ctivity

S equencing

6.3A ctivity


7.2C ost

E stim ating

6.4S chedu le

D eve lopm ent

7 .3C ost

B udgeting

4.1P ro ject P lan

D eve lopm ent


Activities and Schedule DevelopmentActivities and Schedule Development

Activity DefinitionActivity Definition

Activity definition involves identifying and documenting the specific activities that must be performed in order to produce the deliverables and sub-deliverables identified in the work breakdown structure. Implicit in this process is the need to define the activities such that the project objectives will be met.

Outputs of Activity Definition:– Activity List - The activity list must include all activities which will be performed on the

project. It should be organized as an extension to the WBS.– Supporting Detail - Supporting detail for the activity list should be documented and organized

as needed to facilitate its use by other project management processes. Supporting detail should always include documentation of all identified assumptions and constraints.

– WBS Updates - In using the WBS to identify which activities are needed, the project team may identify missing deliverables or corrections to the WBS.

Re-Roofing Project Activity ListRe-Roofing Project Activity List

# Activity

1.1.1 Measure Roof

1.1.2 Calculate Materials

1.2.1 Purchase Materials

1.2.2 Take Delivery

1.3.1.1 Remove Shingles

1.3.1.2 Remove Nails

1.3.2.1 Apply Shingles

1.3.2.2 Cut Caps

1.3.2.3 Apply Caps

Activity SequencingActivity Sequencing

Activity sequencing involves identifying and documenting interactivity dependencies. Activities must be sequenced accurately in order to support later development of a realistic and achievable schedule.

Outputs of Activity Sequencing:– Project Network Diagram - A project network diagram is a schematic display of the

project’s activities and the logical relationships (dependencies) among them.– Activity List Updates - In much the same manner that the activity definition process

may generate updates to the WBS, preparation of the project network diagram may reveal instances where an activity must be divided or otherwise redefined in order to diagram the correct logical relationships.

Re-Roofing Project Network DiagramRe-Roofing Project Network Diagram

1.1.1 MeasureRoof

1.1.2 CalculateMaterials

1.2.1 PurchaseMaterials

1.2.2 TakeDelivery

1.3.1.1 RemoveShingles

1.3.1.2 RemoveNails

1.3.2.1 ApplyShingles

1.3.2.3 ApplyCaps

1.3.2.2 CutCaps

Activity Duration EstimatingActivity Duration Estimating

Activity duration estimating involves assessing the number of work periods likely to be needed to complete each identified activity. The person or group on the project team who is most familiar with the nature of a specific activity should make, or at least approve, the estimate.

This will often require consideration of elapsed time as well.

Outputs of Activity Duration Estimating:– Activity Duration Estimates - Activity duration estimates are quantitative assessments of

the likely number of work periods that will be required to complete an activity. They should always include some indication of the range of possible results (2 weeks +/- 2 days, or 8 to 12 days).

– Basis of Estimates - Assumptions made in developing the estimates.

– Activity List Updates - Updates to the activity list as discovered.

Re-Roofing Project Duration EstimatesRe-Roofing Project Duration Estimates

Schedule DevelopmentSchedule Development

Schedule development means determining start and finish dates for project activities. If the start and finish dates are not realistic, the project is unlikely to be finished as scheduled. The schedule development process must often be iterated.

Outputs of Schedule Development:– Project Schedule - The project schedule includes at least planned start and expected finish dates

for each detail activity. (Note: the project schedule remains preliminary until resource assignments have been confirmed.)

– Supporting Detail - Supporting detail for the project schedule includes at least documentation of all identified assumptions and constraints.

– Schedule Management Plan - A schedule management plan defines how changes to the schedule will be managed. It may be formal or informal, highly detailed or broadly framed based on the needs of the project.

– Resource Requirement Updates - Resource leveling and activity list updates may have a significant effect on preliminary estimates of resource requirements.

Re-Roofing Project ScheduleRe-Roofing Project Schedule


Create Project Network Diagram for the ILICO Construction Project Exercise

– Activity List

– Project Network Diagram

– Present results

ID WBS Task Name Duration Start Finish PredecessorsResource Names

1 0.0 ILICOExpansionProject 17 days Tue 8/8/00 Wed 9/6/00

2 1.0 Existing Building 17 days Tue 8/8/00 Wed 9/6/00

3 1.0.1 Office Space 17 days Tue 8/8/00 Wed 9/6/00

4 1.0.1.1 Determine capacity needed for existingoffice space

5 days Tue 8/8/00 Wed 8/16/00 J. Doe

5 1.0.1.2 Develop "Move Plan" for employeesduring transition

10 days Wed 8/16/00 Fri 9/1/00 4 J. Doe

6 1.0.1.3 Distribute "Move Plan" to all employeesaffected

2 days Fri 9/1/00 Wed 9/6/00 5 J. Doe

7 1.0.2 Conference Rooms 12 days Tue 8/8/00 Mon 8/28/00

8 1.1.2.1 Determine numberof conference roomsneeded in existing building

5 days Tue 8/8/00 Wed 8/16/00 J. Doe

9 1.1.2.2 Procure new furniturefor existingconference rooms

5 days Wed 8/16/00 Thu 8/24/00 8 J. Doe

10 1.1.2.3 Procure Video Teleconferenceequipement to update main conference

7 days Wed 8/16/00 Mon 8/28/00 8 J. Doe

11 1.1 New Building 7 days Tue 8/8/00 Fri 8/18/00

12 1.1.1 Office Space 7 days Tue 8/8/00 Fri 8/18/00

13 1.1.1.1 Temporary Office Space 7 days Tue 8/8/00 Fri 8/18/00

14 1.1.1.1.1 Develop transition plan to moveemployees

5 days Tue 8/8/00 Wed 8/16/00 J. Doe

J. Doe

J. Doe

J.

J. Doe

J. Doe

J. Doe

J. Doe

8/6 8/13 8/20 8/27 9/3st Septemb

Project Schedule - GANTT ChartProject Schedule - GANTT Chart

Core Processes

5.2S cope

P lann ing

5.3S cope

D efin ition

6.1A ctivity

D efin ition


6.2A ctivity

S equencing

6.3A ctivity


7.2C ost

E stim ating

6.4S chedu le

D eve lopm ent

7 .3C ost

B udgeting

4.1P ro ject P lan

D eve lopm ent


Project Plan DevelopmentProject Plan Development

Project Plan DevelopmentProject Plan Development

Project plan development uses the outputs of the other planning processes to create a consistent, coherent document that can be used to guide both project execution and project control. This process is almost always iterated several times. The project plan is used to:

– Guide project execution– Document project planning assumptions– Document project planning decisions regarding alternatives chosen– Facilitate communication among stakeholders– Define key management reviews as to content, extent, and timing– Provide a baseline for progress measurement and project control

Outputs of Project Plan Development:– Project Plan - The project plan is a formal, approved document used to manage and control project

execution. The final Project Charter with project schedule, organization, resources, budget and other attachments is ILICo’s project plan.


ProjectInitiation

EffortEstimate

IdeaD ocum ent Idea

& Est. E ffort


Sponsor P ro ject



C ost, & Q uality


& Lessons Learned


StatusReport

ScopeChange

IssuesM gmt

W orkBreakdown


ResourceW orksheet

DeliveryAcceptance

ProjectReview

Total Cost> $250K?

Yes



Initiation

Planning

Controlling

Executing

Closing



Maj

or

Pro

cess

es


Project PlanDesign






PhaseDeliverables

Closing ExerciseClosing Exercise

ILU Project Management Training Project Management I Project Initiation & Planning.

Documents

Transcript of ILU Project Management Training Project Management I Project Initiation & Planning.