Project Management for Your Local Section / Chapter

Lee Stogner, PMP

2005 Leadership Workshop

Tucson, Arizona

March 12, 2005

Seminar Objectives

To: Provide tools and ideas for more effectively executing your projects

In a way that: Develops understanding of the need to execute your projects more effectively

So that: Develops understanding of some basic project management principals and practices Promotes teamwork All your organization's projects will be successful

Benefits of Sound Project Management

Less overall project cost Less strain on working capital Effective use of resources More timely project completion Higher quality of the final product

Project Management Overview

What is a project? What is project management? What is project success? What factors determine project

success?

A Project

When a task...

Has a defined objective

Has a deadline Requires integration

of knowledge and experience from various organizations

Project Management is:PM PM

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Project Management is:Causing a Planned

Undertaking to Happen

PM PM

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PMPM

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PMPM

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Project Management

Complex and numerous activities Unique - a one time set of events Finite - a begin and end date Limited resources and budget Many people involved Sequenced activities End product or service must result

Program Management

Larger in scope than a project Made up of several projects Made up of a number of similar

products Programs tend to be more permanent

Peanuts

What is Project Success?

Factors in Project Success

Project Management Philosophy Project Management Role and

Responsibility Project Management Principles and

Practices

Project Management Philosophy

The “Golden Rule” of Project Management is three words: Plan Organize Control

Project Management Roles and Responsibilities

Project Execution Maintain Customer Relations Create a Positive Environment

Project Execution Strategy Project Management Quality Safety Risk Management Design/Develop/Program Implementation Documentation Training

Project Execution Plan

Customer Relations

Develop Communication

Ensure Timely Participation

Include the Customer on the Project Team

Develop Trust and Confidence

Create a Positive Environment

__________ Effectively __________ Member of the Team Utilize _______ _______ Activities __________ Success

Safety

Maintain a safe working environment

Project Management Principles and Practices

Define Project Objectives Develop Project Execution Plan Define Baselines for Control Manage Risk Close out Effectively

Define Project Objectives

Expected deliverables Required resources (total installed

cost) Required timing (opening date) Safety and Environmental Total Quality

Define S.M.A.R.T. Project Objectives

S pecific M easurable A ssignable R ealistic T ime related

Alignment Process

Team Requirements

Skills needed ? Individuals identified ? When are they needed ? Where are they ? Training needed ? Interpersonal compatibility ?

The Four Cornerstones of Project Management

Cost

Scope

Schedule

Quality

Cornerstones ofProject Management

Cost

Scope

Schedule

Quality

Scope

Poor scope definition is the major contributing factor to cost overruns in

the engineering and construction industry.

CAUTION

Cost Influence Relative Time

Initial Scoping Effort

Sets the baseline for cost and schedule Must involve the right people Must include implementation Identifies items not included Maximum influence on project cost Breaks project into manageable pieces

Drawings Estimate

CostReports

Contracts

• Facility

• Services

Billof

MaterialsWBS Element/Work Package

Schedule

The WBS

Successful Work Breakdown

Status and completion is easily measured

Definite beginning and end It is familiar with prior experience Manageable work assignments One continuous stream of work from

start to finish

Steps for constructing a WBS

Divide the project into major objectives Partition objectives into activities Divide activities with missing

characteristics into subactivities Repeat #3 until all subactivities have

desired characteristics Lowest subactivities are the basis of work

packages

The effect of “creeping scope” is a major cause of cost overruns

$

Creeping scope

To manage creeping scope

Keep scope documents current Freeze design after the estimate has

been approved Allow only those changes that are

justified by benefit Use an effective change management

procedure

The Four Commandments of Good Project Scope

Written

Well defined

Clearly understood

Achievable

Cornerstones ofProject Management

Cost

Scope

Schedule

Quality

Aspects of Cost

Estimate Basis for Control Cost Control Application of

control procedures to follow

financial progress

Estimate Requirements

Define project costintegrate scope, schedule, and

resources Define estimate basis Identify potential risks Identify contingency/escalation Identify items not included

Elements of Cost Control

Establish the baseline (estimate) Measure variation from baseline Take corrective action

Cost Control System

Detailed project scope/work package

Control estimate Chart of accounts Cost status report Forecasting process Change management procedure Cash flow forecast

Project Control

ProjectDay 1--------------To do list:Kick off meetingProject schedule

Integration of Cost and Time

Basic Elements of the Control System

A project plan: Scope, schedule, estimates A monitoring system which measures performance

against plan A reporting system which identifies deviations from

the plan A system which communicates deviations to the

right people Corrective actions Forecasting the project outcome

Key Control Philosophies

Define the baseline for control

1._______ 2. ________3. _______ 4. ________

Divide project into manageable pieces Remember: Ability to influence cost is

maximum early in the project

Key Control Philosophies (con’t)

Define and manage risk/opportunity Integrate scope and estimated cost

into schedule Make informed decisions Anticipate deviations/changes Adopt the “end product” approach Plan ahead from phase to phase

Basic Project Control Steps

Define the project scope Develop a project plan consistent with:

project scope estimates (cost constraints) schedule (constraints resources available

Report progress and compare with budget and forecast

Control by taking corrective action

Contingency - Plan for Change

Cornerstones ofProject Management

Cost

Scope

Schedule

Quality

Schedule

Planning - Identification of the sequence of events

necessary to complete the project

Scheduling - Determination of timing and assembly of project

activities to give overall completion time

Front End Schedule

A way to get the project started right

Design Program Install / Test System Turnover

Basis for Project Schedule

Project objectives Project scope Project milestones Project estimate (budget) Resource availability

The Critical Path

Identifies project priorities Shows activity relationships Enables schedule analysis Reflects project strategy Promotes teamwork

Basic Network Diagramming

Expanded Network Diagramming

The Bar Chart

The Gantt Chart

Project Schedule - Tools

Microsoft Project

Project Schedule - Tools

www.primavera.com

Five Phases of Project Management

Cornerstones ofProject Management

Cost

Scope

Schedule

Quality

DesignBasis

Continuous Improvement

Quality Assurance

QualityControl

Total ProjectQuality

Management

Total Project Quality Management

Project Quality Improvement

Develop a quality management plan early in the project

Include representatives from all affected organizational units on the project team

Initiate the project effectively through kick-off and alignment meetings

Review performance and measure success

Project Quality Improvement (con’t)

Define scope and review periodically Limit scope changes

formal change procedurerequire justification

Complete more engineering up-front before defining cost and scheduling

Obtain constructability, operability and maintainability input to design

Cost of Quality

Risk Management

Manage Risk

What is risk? Sources of risk Kinds of risk Risk Management Process

Identify risks Define consequences Develop a mitigation plan Document

Sources of Risk

Technical

Financial

Socio-Economic

Contractual

Risk Management Process

Identify Risk

Analyze Risk

Respond to Risk

Document Risk

Sources of Help to Identify Risk

Site investigations Contract documents Schedule Team brainstorming Body of experience

Risk Control Methods

Avoid Reduce Share Insure Accept

with contingency without contingency

Contain

Risk Containment

Clearly define insurance responsibilities in contracts

Use qualified personnel Document and communicate project

strategy Define roles and responsibilities Prepare contingency plans for critical

activities Use up-front team building

Risk Containment (con’t)

Use qualifies contractors and vendors

Preconstruction work briefings (especially safety)

Rehearse critical activities or use mock-ups

Use strong project control systems Manage contingency

Project Close-out

Project Closeout - Major Phases

Obtain client acceptance Document the project Conduct the post implementation

audit Issue the final report

Pyramid Cartoon

Plan the Work…

Work the Plan

Successful Project Management

Successful Project Completion

Project Management - Learning More

www.pmi.org

Project Management - Learning More

Project Management Body of Knowledge

Project Management - Learning More

www.amazon.com

Project Management - Get Certified

www.pmi.org

Project Management - IEEE EMS

www.ewh.ieee.org/soc/ems

Class Exercise - Plan a Project

Lee Stogner - Contact Information

Lee Stogner, PMPRockwell AutomationMobile 864-360-9415Email l.stogner@ieee.org