Project Management for Your Local Section / Chapter Lee Stogner, PMP

1
Project Management for Your Local Section /
ChapterLee Stogner, PMP

• 2005 Leadership Workshop
• Tucson, Arizona
• March 12, 2005

2
Seminar Objectives
3
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

4
Project Management Overview

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

5
A Project When a task...

• Has a defined objective
• Has a deadline
• Requires integration of knowledge and experience
  from various organizations

6
Project Management is
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
7
Project Management isCausing a
PlannedUndertaking to Happen
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
PM
8
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

9
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

10
Peanuts
11
What is Project Success?
12
Factors in Project Success

• Project Management Philosophy
• Project Management Role and Responsibility
• Project Management Principles and Practices

13
Project Management Philosophy

• The Golden Rule of Project Management is three
  words
• Plan
• Organize
• Control

14
Project Management Roles and Responsibilities

• Project Execution
• Maintain Customer Relations
• Create a Positive Environment

15
Project Execution Plan

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

Project Execution Plan
16
Customer Relations

• Develop Communication
• Ensure Timely Participation
• Include the Customer on the Project Team
• Develop Trust and Confidence

17
Create a Positive Environment

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

18
Safety
Maintain a safe working environment
19
Project Management Principles and Practices

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

20
Define Project Objectives

• Expected deliverables
• Required resources (total installed cost)
• Required timing (opening date)
• Safety and Environmental
• Total Quality

21
Define S.M.A.R.T. Project Objectives

• S pecific
• M easurable
• A ssignable
• R ealistic
• T ime related

22
Alignment Process
23
Team Requirements

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

24
The Four Cornerstones of Project Management
Cost
Schedule
Quality
Scope
25
Cornerstones ofProject Management
Cost
Schedule
Scope
Quality
26
ScopePoor scope definition is the major
contributing factor to cost overruns in the
engineering and construction industry.
CAUTION
27
Cost Influence Relative Time
28
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

29
The WBS

Drawings
Estimate
Facility
Bill of Materials
Services
WBS Element/ Work Package
Schedule
Cost Reports
Contracts
30
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

31
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

32
The effect of creeping scope is a major cause
of cost overruns
Creeping scope

33
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

34
The Four Commandments of Good Project Scope
Written Well defined Clearly
understood Achievable
35
Cornerstones ofProject Management
Cost
Schedule
Quality
Scope
36
Aspects of Cost

• Estimate Basis for Control
• Cost Control Application of control
  procedures to follow financial progress

37
Estimate Requirements

• Define project cost integrate scope,
  schedule, and resources
• Define estimate basis
• Identify potential risks
• Identify contingency/escalation
• Identify items not included

38
Elements of Cost Control

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

39
Cost Control System

• Detailed project scope/work package
• Control estimate
• Chart of accounts
• Cost status report
• Forecasting process
• Change management procedure
• Cash flow forecast

40
Project Control
Project Day 1 -------------- To do list Kick off
meeting Project schedule
41
Integration of Cost and Time
42
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

43
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

Project Success
44
Key Control Philosophies (cont)
Project Success

• 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

45
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

46
Contingency - Plan for Change
47
Cornerstones ofProject Management
Schedule
Cost
Quality
Scope
48
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

49
Front End Schedule
A way to get the project started right
Design Program Install /
Test System Turnover
50
Basis for Project Schedule

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

51
The Critical Path

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

52
Basic Network Diagramming
53
Expanded Network Diagramming
54
The Bar Chart
55
The Gantt Chart
56
Project Schedule - Tools
Microsoft Project
57
Project Schedule - Tools
www.primavera.com
58
Five Phases of Project Management
59
Cornerstones ofProject Management
Cost
Schedule
Quality
Scope
60
Total Project Quality Management
Quality Assurance
Total Project Quality Management
Design Basis
Quality Control
Continuous Improvement
61
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

62
Project Quality Improvement (cont)

• Define scope and review periodically
• Limit scope changes formal change
  procedure require justification
• Complete more engineering up-front before
  defining cost and scheduling
• Obtain constructability, operability and
  maintainability input to design

63
Cost of Quality
64
Risk Management
65
Manage Risk

• What is risk?
• Sources of risk
• Kinds of risk
• Risk Management Process
• Identify risks
• Define consequences
• Develop a mitigation plan
• Document

66
Sources of Risk
Technical
Financial
Socio-Economic
Contractual
67
Risk Management Process
Identify Risk
Analyze Risk
Respond to Risk
Document Risk
68
Sources of Help to Identify Risk

• Site investigations
• Contract documents
• Schedule
• Team brainstorming
• Body of experience

69
Risk Control Methods

• Avoid
• Reduce
• Share
• Insure
• Accept
• with contingency
• without contingency
• Contain

70
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

71
Risk Containment (cont)

• Use qualifies contractors and vendors
• Preconstruction work briefings (especially
  safety)
• Rehearse critical activities or use mock-ups
• Use strong project control systems
• Manage contingency

72
Project Close-out
73
Project Closeout - Major Phases

• Obtain client acceptance
• Document the project
• Conduct the post implementation audit
• Issue the final report

74
Pyramid Cartoon
75
Plan the Work Work the Plan
Successful Project Management
Project Execution Plan
76
Successful Project Completion
77
Project Management - Learning More
www.pmi.org
78
Project Management - Learning More
Project Management Body of Knowledge
79
Project Management - Learning More
www.amazon.com
80
Project Management - Get Certified
www.pmi.org
81
Project Management - IEEE EMS
www.ewh.ieee.org/soc/ems
82
Class Exercise - Plan a Project
83
Lee Stogner - Contact Information
Lee Stogner, PMP Rockwell Automation Mobile
864-360-9415 Email l.stogner_at_ieee.org