Healthcare

Project Management
Fundamentals
Melanie Connell, PMP
September 2007

1
 Agenda
• Introduction
• What is Project Management?
• Scope
• Time
• Other Knowledge Areas
• Wrap-Up & What’s Next

2
 Instructor
• Melanie Connell, PMP
– Over 25 years of Project Management Experience
• Including 15 years in Healthcare
– Hospital
– Health Insurance
– Clinical Trials
– Research
– Compliance
– Consulting
• Currently Project Manager for innovative healthcare
Customer Relationship Management at UPMC
– Vice President of Communications for the PMI
Pittsburgh Chapter

3
 PMI
• Project Management Institute
– Founded in 1969
– World-wide project management organization
– Over 230,000 members in over 160 countries
– Global leader in the development of standards for
project management
– PMP Certification Program
• Over 200,000 PMPs
– Only ANSI and IEEE standard for PM
– Received ISO 17024 certification

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 Why Project Management?

How the customer How the Project How the analyst

explained it Manager understood it designed it
5
 Why Project Management?

How the programmer What the beta testers How the business
wrote it received consultant described it

6
 Why Project Management?

How the project was What operations How the customer

documented installed was billed
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 Why Project Management?

What Marketing When it was delivered How it was supported

advertised

8
Why Project Management?

What the customer wanted

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 Why Project Management?
• Your project is going to face issues. Do you want to
proactively resolve them or figure them out as you go?
• Your project will face potential risks. Do you want to try
to resolve them before they happen or wait until the
problems arise?
• Are you going to communicate proactively or deal with
conflict and uncertainty caused by a lack of project
information?
• Are you going to manage scope or deal with cost and
deadline overruns caused by doing more work than your
budget covers?
• Are you going to build quality into your process or fix
problems later when they will be more costly to resolve?
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 Projects and
Project Management

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 What is a Project?
• A Project is a temporary endeavor
undertaken to create a unique product,
service or result.1
– Temporary means having a defined beginning
and end.
– Unique means that the product or service is
different in some distinguishing way from all
other products or services

1 PMBOK, p. 5

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 Is it a Project?
• Susan is a product manager for a
pharmaceutical company and is creating a
marketing campaign to sell a new drug.

• Jill is asked to oversee an overflow clinical

unit in a hospital for a week. This week
the overflow unit is for children with viral
meningitis.

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 Is it a Project?
• In 1997, UPMC opened a transplant center in
Palermo, Italy. To do this they created an entire
new division, ISMETT (Mediterranean Institute
for Transplantation and Specialized Therapies).

• Family Links has purchased a run-down

apartment building which it plans to renovate
and operate as a Halfway House to treat adults
with substance abuse problems.

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 Project Management
• So, what is project management?

Project Management (PM) is the

application of knowledge, skills, tools,
and techniques to project activities to
1
meet the project requirements.

1 PMBOK, p. 8

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 PMBOK
• Project Management Body of Knowledge
– Sum of knowledge within the profession of Project
Management
• Includes proven traditional practices that are widely applied,
as well as innovative practices that are emerging in the
industry, both published and unpublished
– PMBOK – A Guide to the Project Management Body of
Knowledge1
• Standards for project management using areas of the body of
knowledge
• Developed and published by PMI

1 PMBOK, p. 3

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 Top 10 Project Management
Challenges
• Unrealistic deadlines • Failure to manage
• Communication risk
deficits • Insufficient team skills
• Scope changes • Lack of accountability
• Resource competition • Vision & goals not
• Uncertain well defined
dependencies • Customers & end-
users are not
engaged during the
project
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Factors Leading to Project Success

• Communications
• Team relations
• Management support
• Quantifiable success criteria
• Time / budget realities
• Market changes
• Well defined scope

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 Factors Leading to Project Failure
• No clearly defined objectives
• No clearly defined & accepted scope
• Poor management support
• Failure to match project objectives with
those of the organization.
• Poor communications
• Poor time and/or budget planning

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 Value of PM
• Completing projects more quickly and
cheaply
• Saving effort and cost with proactive
scope management.
• Better solution “fit” the first time through
better planning
• Resolving problems more quickly
• Resolving future risk before the problems
occur
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 Value of PM
• Communicating and managing
expectations with clients, team members
and stakeholders more effectively
• Building a higher quality product the first
time
• Improved financial management
• Stopping “bad” projects more quickly

21
 Value of PM
• More focus on metrics and fact-based
decision making
• Improved work environment

22
 2005 Global Thought
Leadership Survey
• Companies around the world spent
$177,000 on average to enhance PM
practices
– Healthcare led spending - $345,000
• Executives’ top benefits of PM
– Efficiency (60%)
– Budget (30%)
– Timing (24%)
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 2003-2004 Project Management
World Study
Somewhat Very little/None
26.3% 5.1%

A lot
68.7%
Has project management become more
important to your organization in recent years?
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 The Project Life Cycle
• Defines
– What resources will be involved in each
phase
– What work is to be done in each phase
– A project life cycle is different from a product
life cycle because it does not include
operational issues.
• Includes an Initial Phase, one or more
Intermediate Phases, and a Final Phase

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Project Life Cycle

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 Life Cycle Characteristics
• Cost and staffing requirements are lowest at the
beginning of the project and ramp up.
• The probability of successfully completing the
project is lowest at the beginning of the project
and highest at the end.
• The risks to the organization are lowest at the
beginning of the project and highest at the end.
• The ability of stakeholders to influence the final
project outcome (features, cost, schedule) is
highest at the beginning of the project and gets
progressively lower.
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 Project Roles
• Stakeholders
– Any individuals or organizations whose interests may be
positively or negatively impacted by the project.
– Stakeholders must be identified by the project team for every
project.
• Key stakeholders include:
– Customer – the person, people or organization who will use the
project product
– Project Sponsor – the individual or organization that has financial
signing authority, or provides the financial resources for the
project
– Project Team Members – the people or organizations who will
perform the project work
– Project Manager – The person or organization responsible
for managing the project
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What Makes Healthcare So
Special?

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 Challenges in Healthcare
• Increased complexity
• Rapid pace of medical advances outstrips
the ability of caregivers and the systems
that support them
• Increased accountability for quality
• Chronic diseases in the aging population
causing tremendous growth in the patient
population
• Increased costs due to growing
expectations from consumers
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 Challenges in Healthcare

Healthcare costs make up one fifth

of the nations GNP and the US
needs to find a way to contain
these escalating costs!

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 Challenges in Healthcare
• Heavy regulation
• Cumbersome payment/reimbursement
system
• Employee shortages and turnover
• Use of clinical data vs physician intuition to
determine care paths

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 Challenges in Healthcare

In healthcare, our only constant

is CHANGE!

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 Challenges in Healthcare
• Absence of necessary patient information
and medical reference knowledge in the
hands of medial decision makers at the
point of clinical decision making

• Inherent limitations in capturing every

patient's full medical background
information and making available to
medical professionals

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Project Management is
one weapon in
healthcare’s armory to
succeed in light of all
these challenges.

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Project Management Processes
and Knowledge Areas

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 PMBOK® - 5 Major Project Management
(PM) Process Groups1

INITIATING PLANNING

CONTROLLING EXECUTING

CLOSING

1 PMBOK, p. 41

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 Project Initiation
• Processes that facilitate the formal
authorization to start a new project or phase
• Purpose of initiation
– To commit the organization to a project or phase
– To set the overall solution direction
– To define top-level project objectives
– To secure the necessary approvals and resources
– To validate alignment with overall business
objectives
– To assign a project manager

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 Project Planning
• Defining and refining objectives and selecting
the best of the alternative courses of action to
attain the objectives that the project was
undertaken to address

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 Project Execution
• Coordinating people and other resources to
carry out the project management plan
• The focus of this phase is:
– Project plan execution
– Quality assurance
– Team development
– Information distribution

40
 Project Control
• The process of ensuring that the project objectives are
met by monitoring and measuring progress to identify
problems and take corrective action when needed.
• The focus of this phase is to:
– Measure project performance against the plan to identify
variances/deviations and take corrective action as necessary.
– It includes
• Overall change control
• Scope change control
• Schedule control
• Cost control
• Quality control
• Performance reporting

41
 Project Closing
• Formalizing acceptance of the project or phase
and bringing it to an orderly end
• Project Closing – Elements:
– Administrative Close Out – Generating, gathering,
disseminating information to formalize phase or
project completion, including evaluating the project,
compiling lessons learned for use in planning future
phases or projects
– Contract Close Out – Completion and settlement of
the contact including resolution of any open items

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The Nine (9) Knowledge Areas1
• Project Integration Management
• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
• Project Human Resources Management
• Project Communications Management
• Project Risk Management
• Project Procurement Management
1 PMBOK, p. 11

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The Nine Knowledge Areas1

Scope Time
Quality

Cost
- HR Management
- Communications Mgt
- Procurement and Contract Mgt
- Risk Management

Integration Management
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Scope Management

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 Project Charter
• Document that formally authorizes a project.
• Document includes:
– Business need that the project was undertaken to
address
– Project title and description
– Project manager assigned and authority level
– Product description and deliverables
– Approving signature
• Charter should be issued by a manager
external to the project.

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 Project Charter
Case Study
Project Title: Instructor’s Garage project
Project Description (Objective): To build a 2 car, non-
attached garage that architecturally and asthetically
matches the home.
Project Manger’s Authority level: The project manager
may approve budget and schedule requirements as long
as they stay within the known constraints for this project.
Project Team: Your project sponsor and stakeholders will
be the instructor of the course.
Approval: The Instructors
This project will serve as a case study throughout the course.
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Project Scope Management
What is Project Scope Management?

It includes the processes required to

ensure that the project includes all the work
required, and only the work required to
complete the project successfully. It is
primarily concerned with what is and what is
not in the project.

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Scope Management Processes
• Scope Planning
– The process of developing a written interpretation of what the project
team is expected to accomplish.
• Scope Definition
– developing a detailed project scope statement. It is the basis for all
future project decisions, including the criteria used to determine if the
project or phase has been completed successfully.
• Create WBS
– Subdividing the major project deliverables and work into smaller,
more manageable components.
• Scope Verification
– Involves the process of formalizing acceptance of the project
deliverables by the stakeholders (e.g. sponsor, client, customer,
etc.).
• Scope Control
– Controlling changes to the project scope

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 Scope Statement
• Provides a documented basis for making
future project decisions and confirming or
developing common understanding of
project scope among stakeholders. This
may need to be revised as the project
progresses to reflect changes.

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Scope Statement – Typical Content
• Project objectives • Initial project organization,
• Product scope description defined risks
• Schedule milestones
• Project requirements
• Fund limitation or cost
• Acceptance criteria constraints
• Boundaries • Configuration management
• Deliverables requirements
• Constraints • Project specifications
• Assumptions • Approval requirements

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 # 1 - Scope Planning Exercise
• Ask the instructors questions that will help you
define a good scope statement
• Develop an interview script before asking
questions

• Each team is an individual construction company

that will be building the garage for your clients
• Take 5 minutes, to develop interview scripts with
your teams (At least 5 questions)

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#2 - Develop a Scope Statement –
Case Study Exercise
• Create a scope statement for your garage. The
scope statement should be clear on what you
are going to do, and not going to do within your
project.
• Include assumptions, constraints, and any
major concerns that you feel should be
addressed during project planning and later
phases.
• Use the flip charts to write your scope statement
to present to the class
5 minutes to find questions (use the flip chart)
10 minutes to finalize the scope statement.
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 Scope Management Plan
• Provides guidance on how project scope will be
defined, documented, verified, managed, and
controlled
• A component of the project management plan

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 Scope Management Plan –
Typical Content
• Process to prepare a complete project scope
statement
• Process to create the WBS
• Process to obtain formal verification and
acceptance of the project deliverables
• Process to control how change requests will
be processed

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 Work Breakdown Structure
What is it?
A structured method for defining the work of the
project
Purpose
– To define all of the “deliverables” required by the
scope of the project
– To identify additional deliverables that may have been
missed
– To create the framework for the project schedule
– To provide a forum for information sharing for the
project team and stakeholders
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 Work Breakdown Structure
Goal
Project Goal

3
1 2
What?
Deliverables Deliverable Deliverable Deliverable
and/or Objectives
Activity Activity
1.1 1.2 Activity Activity
Activity Activity
How?
Deliverable Deliverable

Activity 1.2.1 1.2.2

Activity
Activity Deliverable Deliverable

Activity Activity WBS = Scope

Activities { Activity
Activity
Activity
Activity

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How much detail is needed in the WBS?

• Answer three key questions:

– Can you accurately estimate the resources
required?
– Can you accurately estimate the length of time it will
take to produce the Work Package (lowest level in
the WBS)?
– Can you assign the Work Package to someone
else, and they will understand exactly what to do?

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#3 - Work Breakdown Exercise
Build a WBS
• Break into your project teams and
create a WBS for building a garage
• Start with the project goal and work
down

15 minutes

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 Benefits of a WBS
• Prevents omitted tasks
• Helps obtain commitment from project staff
• Helps develop the basic plan for the entire
project
• Increases the visibility for the project team
• Helps identify potential sources of risk
• Helps in change management

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 The Triple Constraint

Scope Time
Quality

Cost

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Time Management

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Project Time Management
What is Project Time Management?
Project Time Management – Includes the processes
required to ensure timely completion of the project

*Source: PMBOK Third Edition p.123

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Time Management Processes
• Project Schedule – Planned dates for performing
activities and the planned dates for meeting
milestones.1

• Activity – An element of work with an expected

duration and resource requirements
– What are the activities for the project?
– How long will each one take?
– Who is going to do this activity?

• Milestone – A significant event in the project,

usually completion of a major deliverable
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 Schedule
• Purpose
− To determine WHEN work will be performed
− To identify WHO will do the work
− To analyze activity dependencies and sequences
− To evaluate resource requirements, availability and
utilization
− To Identify Milestones

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#4 -Schedule Development Exercise
Define Activities and Estimate
• Work in project teams
• Choose several deliverables from the
WBS we created in the last Exercise.
• Define the activities we’d expect to do
• Estimate those activities as best you can.

10 minutes

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 Schedule
• Activity sequencing
– The process of identifying and documenting
dependencies among schedule activities.1
• Predecessors
– An activity that must be completed before
starting the present activity or task.
• Successors
– An activity that is dependent on the present
activity being completed before it may start.

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 Schedule
• Sequencing diagram
– Also known as a Network Diagram

A C D
Start
F End
B

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#5 -Schedule Development Exercise
Activity Sequencing
• Sequence some of the activities
identified in the last exercise

5 minutes

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 Schedule
• What can scheduling software do?
– Planning:
• Creates a record of the WBS
• Automatically calculates duration, and start/finish dates
• Allows analysis of resource availability and allocation
• Calculates critical path
• Calculates duration based on resources and calendar
– Execution
• Tracks work performance against the plan
• Provides activity status information
• Helps you to identify when/where resources are constrained
NOTE: SOFTWARE CAN’T MANAGE YOUR PROJECT!!
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 Schedule
Recommended sequence to build a schedule
when using scheduling tools:
• Setup Project Information (Calendar, Start date, etc).
• Enter Deliverables & Activities (Records WBS)
• Enter Estimates
• Enter Predecessors
• Enter Resource definitions (Calendar, working time, etc.)
• Assign Resources to activities
• Analyze the critical path
• Make adjustments based on risk responses
• Compress the schedule
• Baseline the schedule
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 Schedule
Schedule Example Using MS Project

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 Milestones
• What is a milestone?
– Identifiable point that represents a requirement or
completion of an important set of activities in the
project.
• Typically zero duration
• Resource assigned
• Why use milestones?
• Helps to indicate progress
• Helps to define dependencies
• Provides visibility for major deliverable dates

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 Recap Time Management
• The project schedule is NOT the project
PLAN.
• What ever you do, keep your project
schedule realistic!

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Conclusion

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 Suggested Reading and
Acknowledgements
1 A Guide to the Project Management Body of Knowledge,
Third Edition, ©2004, Project Management Institute
2 Fundamentals of Project Management: Developing Core
Competencies to Help Outperform the Competition,
©2002, James P. Lewis
3 Streetwise Project Management: How to Manage
People, Processes, and Time to Achieve the Results
You Need, Michael S. Dobson
4 Getting Started in Project Management, Paula Martin, Karen
Tate

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 PM Links
• Project Management Institute (PMI)
– www.pmi.org
• PMI Healthcare Special Interest Group (SIG)
– www.pmihealthcare.org
• PMI Pittsburgh Chapter
– www.pmipittsburgh.org
• Online PM Information & Tools websites:
– www.gantthead.com
– www.projectconnections.com
– www.allPM.com

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Thank you!

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