INTRODUCTION TO PROJECT MANAGEMENT PRESENTED BY TECHNOLOGY EXTENSION DIVISION, VERMONT TECHNICAL COLLEGE
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1 July 2010 INTRODUCTION TO PROJECT MANAGEMENT PRESENTED BY TECHNOLOGY EXTENSION DIVISION, VERMONT TECHNICAL COLLEGE
2 Trainer: Allan Rodgers Allan Rodgers, MBA, M.Ed., is an Associate Professor of Business at Vermont Technical College (VTC), teaching courses in entrepreneurship, organizational behavior, business ethics, operations, and project management. Prior to teaching, Allan was President of VTC for six years and was CEO and founder of an automotive products manufacturing company, a VP of Product Development, project manager, and a business consultant. He can be reached at arodgers@vtc.edu. Contents copyrighted 2009, Not to be reproduced without permission. 2
3 Agenda Welcome & Introductions Training Overview Intro to Project Management Concepts Success Project Managers Comparing & Selecting Projects Five Project Stages Tools for Each Project Stage Taking Best Practices Home 3
4 Introductions Name? Where are you from? Where do you work? What do you do? Hobbies, interests? What experiences do you have in PM? What would you like to cover in the session? 4
5 Training Objectives Upon success completion, you will be able to 1. Describe the characteristics of effective project managers 2. Indentify the five project stages 3. Explain the phases of teamwork 4. Begin to use the most important project management tools 5. Describe the benefits of project software 6. Indentify best practices in project management 7. Explain how project management techniques could benefit you in your workplace 5
6 What this training is not This training is not a Magic bullet for insufficient project resources Cure for having inappropriate team resources Supernatural spell for a current project with scope creep But, this training can help make your next project more successful and to diagnose and help what is happening with your current projects. 6
7 The Tools We Plan to Review 1 in PRE-INITITIATING Weighted Scoring 4 in INTITIATING Scope statement Business case Shareholder Analysis Project Charter 8 in PLANNING Team Contract RACI Team Stages WBS some in more detail. PLANNING, cont. Critical Path Risk Analysis Gantt Chart Cost Baseline 3 in CONTROL & MEASURE Earned Value Report Revised Schedule Performance Reports 2 in CLOSURE Lessons Learned Plan Closing Checklist 7
8 Agenda Welcome & Introductions Training Overview Intro to Project Management Concepts Successful Project Managers Comparing & Selecting Projects Five Project Stages Tools for Each Project Stage Taking Best Practices Home 8
9 Project Management Concepts 9
10 What Is a Project? A project is a temporary endeavor undertaken to create a unique product, service, or result. * Projects end when their objectives have been reached or the project has been terminated. *Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide, Third Edition) (2004), p
11 A project: Has a unique purpose. Is temporary. Is developed using progressive elaboration or in an iterative fashion. Requires resources, often from various areas. Should have a primary customer or sponsor. Involves uncertainty. Project Attributes 11
12 Examples of Projects A young couple hires a firm to design and build them a new house. A college campus upgrades its technology infrastructure to provide wireless Internet access. A pharmaceutical company launches a new drug. A television network develops a system to allow viewers to vote for contestants and provide other feedback on programs. A government group develops a program to track child immunizations. 12
13 The Concept of Project Tools Not every project needs every tool. Some projects need special tools. The wrong tool used correctly can cause problems. The right tool used incorrectly can cause problems. 13
14 PM Terms & Tools PMI = Project Management Institute PMP = Project Management Professional PMBOK = Project Management Body of Knowledge There are 44 process tools in PMBOK Small, simple projects may only need a few PM tools Complex projects may require multiple tools 14
15 Project Success How is project success measured? The project met scope, time, and cost goals. The project satisfied the customer/sponsor. The project produced the desired results. 15
16 Scope Quality Other Projects Cost Time Project Managers 16
17 The Triple Constraint Every project is constrained in different ways by its: Scope: What work will be done as part of the project? What unique product, service, or result does the sponsor expect from the project? Time: How long should it take to complete the project? What is the project s schedule? Cost: What should it cost to complete the project? What is the project s budget? It is the project manager s duty to balance these three often competing goals. 17
18 Exterminators-R-Us Corporation You are assigned the project to build a better mousetrap. Having just completed a project management course, you ask your boss for the triple constraints for the project. She responds, I m not sure what you mean just give me something better to sell we need a new product to stay ahead of the competition You know that you should establish the constraints in order to manage the project. What should you do? Discussion 18
19 What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. * *Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide, Third Edition) (2004), p
20 Nine Knowledge Areas Quality Cost Time Think of a knowledge area as a set of management skills, disciplines, and tools. Procure ment Integration Scope Risk HR Comm 20
21 Nine Knowledge Areas Cost Objectives Quality Time Procure ment Integration Scope Risk HR Methods Comm 21
22 Summary 1 1. A project is a unique, temporary activity that requires specific resources. 2. There are many project management tools 3. You should select the tool(s) that are appropriate for the job (project). 4. There are different ways to define project success: The project met scope, time, and cost goals The project satisfied the customer/sponsor The project produced the desired results 5. There is always a trade off among the triple constraints. 6. There are nine knowledge areas (aka, management disciplines) in project management: scope, time, cost, quality, hr, communications, risk, procurement, and integration. 22
23 Agenda Welcome & Introductions Training Overview Intro to Project Management Concepts Successful Project Managers Comparing & Selecting Projects Five Project Stages Tools for Each Project Stage Taking Best Practices Home 23
24 Discussion Think about what characteristics are important for project managers and list them here. In pairs, compare your notes and select the top three characteristics. 24
25 25
26 Best Practices of Alpha Project Alpha project manager is in the top two percent of project managers in terms of performance, as rated by their customers, senior managers, and team members Based on a survey of surveyed 860 project managers Managers 26
27 How the Alpha PMs Differed Most They enjoy their work more. They believe they have more authority. They believe they can have a personal impact on project success. They think it is important for the project manager to be a hands-on manager and a domain expert. Alpha PMs spend twice as much time in planning. 27
28 Best Practices of Alpha PMs They talk to stakeholders very early in the project and tailor communication to meet their needs. They create a communication schedule and stick to it. They communicate their messages quickly in a clear and concise manner. They create an open communication channel and talk with stakeholders regularly. They know that on many projects, communication is the only deliverable stakeholders will receive until the product or service is completed. Alpha project managers send fewer s per day and spend less time in meetings than the nonalphas! 28
29 Summary 2 1. Project Management requires a combination of technical, personal, and organizational skills 2. Better project managers spend more time planning 3. Better project managers develop a communications plan and stick to it 29
30 Notes 30
31 Agenda Welcome & Introductions Training Overview Intro to Project Management Concepts Success Project Managers Comparing & Selecting Projects Five Project Stages Tools for Each Project Stage Taking Best Practices Home 31
32 Organizing, Comparing & Selecting Projects 32
33 A 1 goose = 1 project B In a V formation of 25 members, each bird can achieve a reduction of induced drag by up to 65% and as a result increase their range by 71%. 33
34 Strategic Planning Overall organizational strategy should guide the project selection process and management of those projects. Strategic planning involves determining long-term objectives analyzing the strengths and weaknesses of an organization studying opportunities and threats predicting future trends projecting the need for new products and services 34
35 Methods for Selecting Projects Focus on competitive strategy and broad organizational needs. Perform net present value analysis or other financial projections. Implement a balanced scorecard. Address problems, opportunities, and directives. Consider project time frame. Consider project priority. Use a weighted scoring model. 35
36 Weighted Scoring Models A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria. To create a weighted scoring model: 1. Identify criteria important to the project selection process. 2. Assign a weight to each criterion (so they add up to 100 percent). 3. Assign numerical scores to each criterion for each project. 4. Calculate the weighted scores by multiplying the weight for each criterion by its score and adding the resulting values. 36
37 =
38 Comparing & Selecting Projects CHAMPLAIN Properties is a real estate development business located in Burlington, VT. Champlain specializes in multiunit rental housing for students living off campus. Recently, they have entered into the market for low income and elderly tenants, which tend to be larger, but with fewer amenities. 38
39 Which Project? You are the Projecct Manager and have been asked to prioritize Champlain s possible projects. Project A: 10 units of student housing Project B: 12 units of low income housing 39
40 Champlain Project Information Project A 10 units Tl Cost = $1,000,000 Unit rental revenue = $14,000/yr Expected occupancy = 90 % Annual maintenance = $100,000 City population = 35,000 Growth rate = 13% Competition = moderate Local property tax = 14% of list Labor market = strong Distance from your office = 120 miles Payback = 8 years Similar to 75% of previous projects Projects B 12 units Tl cost 1,100,000 Unit rental = $ 16,000/ yr Expected occupancy = 85% Annual maintenance = $75,000 City population = 76,000 Growth rate = 3% Competition = very low Local property tax = 12% of list Labor market = moderate Distance from your office = 300 miles Payback = 10 years Similar to 25% of previous projects 40
41 Compare the two projects as if this were your business: 1. Select the criteria 2. Assign a weight so that total weights = Rank the projects (5 = best, 1 = worst) 4. Multiple weight times rank 5. Add scores across Criteria TOTAL SCORE Project Weight Project A Project B 41
42 Here s an example of a matrix being started. Taxes Labor Market Criteria X X TOTAL SCORE Weight xx xx Project Project A Project B X X X X 42
43 What is a Program? A program is: a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. * A program manager provides leadership and direction for the project managers heading the projects within the program. *Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide, Third Edition) (2004), p
44 Example Reasons for a Construction Firm to Create Housing Programs Save money: A construction firm can purchase materials, obtain services, and hire workers for less money if it is managing the construction of 100 houses instead of just one house. Save time: One person or group can be responsible for similar work, such as obtaining all the permits for all the houses. Increase authority: The program manager can use authority in multiple situations, such as negotiating better prices with suppliers and obtaining better services in a more timely fashion. 44
45 Project Portfolio Management Project portfolio management is a business strategy in which organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise s success. 45
46 Projects, Programs, Portfolios Student Housing Low Income Housing 46
47 Summary 3 1. Projects can be organized as individual projects, as a program, and as part of a portfolio 2. Prioritizing and selecting projects can be based on a number of methods and criteria, but should fit the strategies of the organization 3. A weighted scoring model can be a useful tool in comparing projects and can be customized to include criteria specific to the organization 47
48 Notes 48
49 Agenda Welcome & Introductions Training Overview Intro to Project Management Concepts Success Project Managers Comparing & Selecting Projects Five Project Stages (Process Groups) Tools for Each Project Stage Taking Best Practices Home 49
50 Project Management Process Groups A process is a series of actions directed toward a particular result. Project management process groups progress from initiating activities to planning activities, executing activities, monitoring and controlling activities, and closing activities. 50
51 Description of Process Groups 1. Initiating processes - actions to begin projects and project phases. 2. Planning processes - devising and maintaining a workable scheme to ensure that the project meets its scope, time, and cost goals as well as organizational needs. 3. Executing processes - coordinating people and other resources to carry out the project plans and produce the deliverables of the project or phase. A deliverable is a product or service produced or provided as part of a project. 4. Monitoring and controlling processes measure progress toward achieving project goals, monitor deviation from plans, and take corrective action to match progress with plans and customer expectations. 5. Closing processes - formalizing acceptance of the project or phase and bringing it to an orderly end. 51
52 Sequential Stages Concurrent Stages Henry Laurence Gantt, A.B., M.E. ( November 1919) was an American mechanical engineer and management consultant who is most famous for developing the Gantt chart in the 1910s. These Gantt charts were employed on major infrastructure projects including the Hoover Dam and Interstate highway system and continue to be an important tool in project management. (Wikipedia) 52
53 9 Knowledge Areas of Project Management Procur ement Qual ity Cost Integra tion Time Scope There are 44 PMBOK tools for these areas of project management. Risk HR Comm 53
54 Initiation Cost Close Qual ity Time Planning Procur ement Integra tion Scope Risk HR Comm Control Execution 54
55 Summary 4 1. There are 5 process groups (stages) of project management: initiating, planning, executing, controlling & monitoring, and closing 2. The process groups can run sequentially or concurrently. Concurrent projects can be shorter in time, but are more complex to manage 3. There are (at least) 44 PM tools that can be used to help manage projects 55
56 Initiation Cost Close Qual ity Time Planning Procur ement Integra tion Scope Risk HR Comm Control Execution 56
57 Initiating Projects You have been given the task to launch the student housing project. What kinds of activities might you engage in to help launch this project (this is before any construction related activities)? 57
58 Initiation Tools Stop and reconsider, if you don t have this Scope Statement Proceed with caution without these Business Case Stakeholder Analysis Charter 58
59 Developing a Scope Statement Scope = what is included, and what is not included in the project A scope statement is a document used to develop and confirm a common understanding of the project scope. It describes in detail the work to be accomplished and is an important tool for preventing scope creep the tendency for project scope to continually increase. In the scope Outside the scope 59
60 Scope Statement A good scope statement will keep you out of or get you out of jail. ~ Allan 60
61 Contents of a Scope Statement Contents and length will vary based on the project. Typical contents include: The product or service requirements and characteristics A summary of all deliverables The project success criteria References to related documents 61
62 How a Scope Statement Helps Improve the accuracy of time, cost, and resource estimates. Define a baseline for performance measurement and project control. Aid in communicating clear work responsibilities. Manages scope creep 62 scope creep
63 Sample Scope Statement 63
64 Figure 4-5. Sample Scope Statement (continued) 64
65 Big Hints Hint 1: Deliverables should be tangible items that you can fit in a box (maybe a large box, but, in a box). Hint 2: Success Criteria should be measures that are in 100% control of the project team if possible. 65
66 Poor, Good, Best? Project Deliverable does it fit in a box? A 3,000 sf two story house A warm and happy home Capacity for customers to order online Computer code on CD for a single web page link that allows secure order transactions Project Success Criteria does the team control the results? Improve employee morale over three years Increase sales in one year by 25% Project stakeholders happy with results A random survey of 25 potential users indicating at least 80% satisfaction with prototype performance 66
67 Practice Develop some deliverables and success criteria for the student housing project Deliverables: Success Criteria: 67
68 Preparing a Business Case for the Project A business case is a document that provides justification for investing in a project. 68
69 Contents of a Business Case 1. Introduction/Background 2. Business Objective 3. Current Situation and Problem/Opportunity Statement 4. Critical Assumptions and Constraints 5. Analysis of Options and Recommendation 6. Preliminary Project Requirements 7. Budget Estimate and Financial Analysis 8. Schedule Estimate 9. Potential Risks 10.Exhibits 69
70 Figure 3-5. Sample Business Case 70
71 Figure 3-5. Sample Business Case (continued) 71
72 Figure 3-5. Sample Business Case (continued) 72
73 Identifying and Understanding Project Stakeholders Project stakeholders are the people involved in or affected by project activities. Internal project stakeholders may include project sponsor, project team, support staff, and internal customers for the project, top management, other functional managers, and other project managers. External project stakeholders may include the project s customers, competitors, suppliers, government officials and concerned citizens. 73
74 Stakeholder Analysis A stakeholder analysis provides information about key stakeholders to help manage relationships with them. Names and organizations of key stakeholders Their roles on the project Unique facts about each stakeholder Their levels of interest in the project Their influence on the project Suggestions for managing relationships with each stakeholder A stakeholder analysis often includes sensitive information it should not be part of the official project plans, which are normally available for all stakeholders to review. 74
75 Figure 3-4. Sample Stakeholder Analysis 75
76 Creating a Project Charter A project charter formally recognizes the existence of a project and provides a summary of the project s objectives and management. It authorizes the project manager to use organizational resources to complete the project. Ideally, the project manager will play a major role in developing the project charter. Instead of project charters, some organizations initiate projects using a simple letter of agreement or formal contract. A crucial part of the project charter is the sign-off section. 76
77 Contents of a Project Charter Project Title and Date of Authorization Project Start Date Project Finish Date Other Schedule Information Budget Information Project Manager Project Objectives Approach Roles and Responsibilities Sign-off Comments 77
78 Figure 3-6. Sample Project Charter 78
79 Figure 3-6. Sample Project Charter (continued) 79
80 Discussion Rank the following tools for your organizational environment Which might help? Why? Rank (1=Most Helpful) Scope statement Business case Shareholder analysis Project Charter Project Manager 80
81 Summary 5 1. Initiating projects is the first process group 2. Initiating involves ensuring that the scope is clear and that the team has permission to begin the project 3. Tools in the initiation phase include a scope statement, charter, stakeholder analysis, and business case 4. The scope statement is the get out of jail tool of project management, but only if deliverables and success criteria are SMART 81
82 Initiation Cost Close Qual ity Time Planning Procur ement Integra tion Scope Risk HR Comm Control Execution 82
83 Planning Projects The big task in the planning phase is aligning People Tasks Schedules Costs Risks 83
84 Planning Projects Area to Align Tools that Can Help People Team Contract; RACI Tasks WBS / Critical Path / Risks Schedules Gantt Chart Costs Cost Baseline Risks Risk Analysis 84
85 Discussion What are your best experiences in working on project team? What are your worst? Best Experiences: Worst Experiences: 85
86 Team Contracts Team contracts promote teamwork and clarify communications Everyone involved in creating the team contract should sign it, and as new project team members are added, the project manager should review ground rules with them and have them read and sign the contract as well. 86
87 Topics Covered in a Team Contract Code of conduct Participation Communication Problem solving Meeting guidelines 87
88 Figure 4-2. Sample Team Contract 88
89 Responsibility Assignment Matrices RACI charts show Responsibility (who does the task), Accountability (who signs off on the task or has authority for it), Consultation (who has information necessary to complete the task), and Informed (who needs to be notified of task status/results) roles for project stakeholders. 89
90 Figure 5-7. Sample RACI Chart 90
91 Starting Your Task List The work breakdown structure (WBS) is a document that breaks all the work required for the project into discrete tasks, and groups those tasks into a logical hierarchy. Often shown in two different forms: Chart form Tabular form 91
92 Sample Tabular (Outline)WBS 92
93 My Vacation WBS clubs clothes finish report me work prep packing wife & kids Out of town message Vacation prescriptions Stop mail Stop papers security hotel reservations car air Aisle seats 93
94 Let s Create a Visual WBS Using flip charts, create a WBS for the student housing project. Feel free to be creative.and detailed! 94
95 Figure Sample Project Schedule If time permits, I will give you a brief introduction to MS Project. 95
96 96
97 Practice Using your WBS as a starting point, develop a simple Gantt Chart for the student housing project. Task Week Time Period (X = Scheduled Time) Permits Landscaping XXXXX XXXXX XXXXX 97
98 Practice Using your WBS as a starting point, develop a simple Gantt Chart for the student housing project. Task Time Period (X = Scheduled Time) 98
99 Figure Sample Cost Estimate 99
100 Critical Path Analysis Critical path method (CPM) also called critical path analysis is a network diagramming technique used to predict total project duration. A critical path for a project is the series of activities that determine the earliest time by which the project can be completed. It is the longest path through the network diagram and has the least amount of slack or float. Slack or float is the amount of time an activity may be delayed without delaying a succeeding activity or the project finish date. The longest path or the path containing the critical tasks is what is driving the completion date for the project. 100
101 What Does the Critical Path Really Mean? The critical path shows the shortest time in which a project can be completed. If one or more of the activities on the critical path takes longer than planned, the whole project schedule will slip unless the project manager takes corrective action. 101
102 Critical Path Calculation for Project X 102
103 Critical Path Calculation for Project X 103
104 Risk Probability/Impact Matrices Risk events refer to specific, uncertain events that may occur to the detriment or enhancement of the project. Negative risk events include the performance failure of a product produced as part of a project, delays in completing work as scheduled, increases in estimated costs, supply shortages, litigation against the company, and strikes. Positive risk events include completing work sooner than planned or at an unexpectedly reduced cost, collaborating with suppliers to produce better products, and obtaining good publicity from the project. You can chart the probability and impact of risk events on a matrix. 104
105 Figure Sample Probability/Impact Matrix 105
106 Practice Let s do a risk impact/probability matrix on a special event - an outdoor wedding and reception for 200 guests! Risk Probability (5 = high) Impact (5=high) Probability X Impact Rank 106
107 Summary 6 1. Best practice project managers spend more time in planning 2. Planning projects involves aligning people, tasks, costs, and time 3. There are specific tools (processes) which help plan people, tasks, costs, and schedules. 4. Risk management involves identifying and ranking potential project risks, and then developing contingency actions 107
108 Notes 108
109 Initiation Cost Close Qual ity Time Planning Procur ement Integra tion Scope Risk HR Comm Control Execution Most noticed Most resources 109
110 Project Execution 1. Doing the work 2. Recording information 3. Communicating progress 4. Identifying & Solving Problems 110
111 Are Any of These Familiar? 1. The project sponsor and/or other senior managers are not very supportive of the project. 2. Project stakeholders, such as people who would use the products and services the project is attempting to create, are not sufficiently involved in project decision-making. 3. The project manager is inexperienced in managing people, working in a particular organization, or understanding the application area of the project. 4. The project objectives/scope are unclear. 5. Estimates for time and cost goals are unreliable or unrealistic. 6. Business needs/technology changes have impacted the project. 7. People working on the project are incompetent or unmotivated. 8. There are poor conflictmanagement procedures. 9. Communications are poor. 10. Suppliers are not delivering as promised. 111
112 Tuckman Model of Team Development Stage 1: FORMING / ORIENTATION Members try to determine their place in the group along with the procedures and rules of the group. Stage 2: STORMING / DISSATISFACTION Conflict begins to arise as members resist the influence of the group and rebel against accomplishing the task. Stage 3: NORMING / RESOLUTION The group establishes cohesion and commitment, discovering new ways to work together and setting norms for appropriate behavior Stage 4: PERFORMING / PRODUCTION The group develops proficiency in achieving its goals and becomes more flexible in its patterns of working together. Stage 5: ADJOURNING / CLOSURE The group celebrates its accomplishments and recognizes areas for future improvements. 112
113 113
114 114
115 Things to Remember about Teams 1. One misbehaving person can stop team effectiveness 2. When one person leaves or joins the team, the team reverts to the forming stage 3. Practiced teams achieve the performing stage faster 4. It s often good practice to use a team facilitator, especially for new PM s 115
116 Summary 7 1. The execution phase of the project is the most noticed of the phases, and typically uses the most resources 2. The primary project management activities include doing the work and solving problems 3. Problems can be technical or about people 4. Recognizing that a project team goes through phases can help avoid, diagnose and solve team problems 116
117 Initiation Cost Close Qual ity Time Planning Procur ement Integra tion Scope Risk HR Control & Monitor Comm Execution 117
118 Driving to Boston On my trip to Boston, what will I monitor and control? 118
119 Controlling & Monitoring Monitoring and controlling involves regularly measuring progress to ensure that the project is meeting its objectives and addressing current business needs. The project manager and other staff monitor progress against plans and take corrective action when necessary. Earned Value Report Revised Schedule Performance Reports 119
120 EV Report Example Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 TOTAL to Month 3 Planned Value (Cost) Planned spending in the period $ 5, $ 5, $ 5, $ 5, $ 5, $ 2, $ 15, Actual Cost (AC) Actual spending in the period $ 5, $ 5, $ 6, $ 16, Cost Variance (CV) Actual less planned cost $ - $ - $ (1,000.00) $ (1,000.00) Earned Value (EV) Estimate of work completed 20% 18% 20% 58% Planned Value (PV) Expected work to have been completed 20% 20% 20% 20% 10% 10% 60% Rate of Performance (RP) Earned value versus planned work 100% 90% 100% 97% 120
121 EV Report Example Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 TOTAL to Month 3 Planned Value (Cost) Planned spending in the period $ 5, $ 5, $ 5, $ 5, $ 5, $ 2, $ 15, Actual Cost (AC) Actual spending in the period $ 5, $ 5, $ 6, $ 16, Cost Variance (CV) Actual less planned cost $ - $ - $ (1,000.00) $ (1,000.00) Earned Value (EV) Estimate of work completed 20% 18% 20% 58% Planned Value (PV) Expected work to have been completed 20% 20% 20% 20% 10% 10% 60% Rate of Performance (RP) Earned value versus planned work 100% 90% 100% 97% 121
122 Interpreting Earned Value Numbers In general, negative numbers for cost and schedule variance indicate problems in those areas. Negative numbers mean the project is costing more than planned or taking longer than planned. Likewise, CPI and SPI less than one or less than 100 percent indicate problems. 122
123 Gantt Chart 123
124 Performance Reporting Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives. Status reports describe where the project stands at a specific point in time. Progress reports describe what the project team has accomplished during a certain period. Forecasts predict future project status and progress based on past information and trends. 124
125 Figure Sample Performance Report 125
126 Summary 8 1. The controlling phase involves measuring progress and taking corrective actions 2. It is best to establish your measurement plans during the planning phase 126
127 Notes 127
128 Initiation Cost Close Qual ity Time Planning Procur ement Integra tion Scope Risk HR Control & Monitor Comm Execution 128
129 Closing Projects Project closure may include: Customer acceptance of the final products & services Verifying that all deliverables are complete Planning transition of products /services into the organization Preparing a final presentation and report what can be learned to improve future projects Lessons Learned Plan Closing Checklist 129
130 Figure 8-5. Sample Lessons-Learned Report 130
131 Figure 8-5. Sample Lessons-Learned Report 131
132 Final Project Checklist Acceptance criteria have been met. Final technical and management review of deliverables is complete. Final deliverables have been presented and turned over to the customer. The Engagement Team and customer both agree that the deliverables meet or exceed expectations and that the engagement is complete. All outstanding issues have been determined. All unresolved issues have been assigned to relevant resources. All outstanding issues have been documented. All resolved issues have been documented. Project Closure Meeting Project Closure Meeting held. What went well discussed. What could have been done differently discussed. Conclusions and recommendations documented. Success celebrated. Post-Project Assessment Project assessment executed. Final Customer Sign-Off Service plan to customer provided. Final sign-off obtained. Business operations informed that project is ready to be closed. Project Team Member Evaluations Team member performances documented. Team member evaluations reviewed with each team member. Team supervisor provided with copies of each evaluation. Personal Evaluations Team member evaluation obtained. Sponsor/senior team member evaluation obtained. Client evaluation obtained. Notes Hint: Build this checklist as the project is being planned, executed and monitored for items that you don t want to forget 132
133 Summary 8 1. The controlling phase involves delivering the final product 2. Good closure practice also includes a review of lessons learned 133
134 Project Management Best Practices 1. Determine how project, program, and portfolio management will work best in your own organization. 2. Involve key stakeholders including shareholders, customers, and employees in making major decisions. 3. Develop and follow a formal project selection process to ensure projects support business needs. 4. Lay the groundwork for projects before they officially start. 5. Separate projects by phases, such as a study phase project, when it makes sense to do so. 6. Designate a project champion to provide high-level support and participate in key meetings. 134
135 Project Management Best Practices 7. Assign a project manager from operations to lead projects that affect operations. 8. Form a steering committee with key managers from various departments for projects that will cause major organizational change. 9. Provide mentoring and training for project managers and other stakeholders. 10.Document action items at meetings, and set the next meeting time. 11.Document meeting minutes, focusing on key decisions and action items, and send them out quickly. 12.Use more than one approach for creating cost estimates. 135
136 Project Management Best Practices 13.Use formal supplier evaluation procedures to help select sellers. 14.Include a detailed statement of work and schedule in contracts. 15.Develop and follow a formal change-control process. 16.Work with suppliers to ensure that deliverables are produced properly. 17.Follow a deliverable acceptance process to verify project scope. 18.Be clear and honest in communicating project status information, and share the responsibility for project communications with the entire project team. 19.Formally close projects, and share lessons learned. 136
137 Summary 9 Best of best practices include Dividing projects into phases Spending adequate time in the planning phase Having clear, SMART deliverables & success criteria Recognizing team stages and developing a strong working team Conduct a lessons learned meeting to enhance future projects 137
138 The Tools We Covered PRE-INITITIATING Weighted Scoring INTITIATING Scope statement Business case Shareholder Analysis Project Charter PLANNING Team Contract RACI Team Stages WBS PLANNING, cont. Critical Path Risk Analysis Gantt Chart Cost Baseline CONTROL & MEASURE Earned Value Report Revised Schedule Performance Reports CLOSURE Lessons Learned Plan Closing Checklist 138
139 What Can You Use? Soon, you ll be back in the office What one or two tools, practices, or ideas will make the biggest impact on improving project management? What challenges will you face in implementing any changes? 139
140 Training Objectives Upon success completion, you will be able to Describe the characteristics of effective project managers Indentify the five project stages Explain the importance the phases of teamwork Begin to use the most important project management tools Describe the benefits of project software Indentify best practices in project management Explain how project management techniques could benefit you in your workplace 140
141 PMP Certification HS Diploma + 5 years + 7,500 hours leading + 35 hours education - Or 4 Year Degree + 4,500 hours leading + 35 hours education - Plus - 4 Hour Exam with 200 Questions Mock Exam:
142 Thank you! 142
143
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