Project Management

Topic 1
Project Management

Paulo Faroleiro
Project Management
Part I
Project Information Project Management LifeCycle

Parts Copyright 2014 Wiley

SUCCESS: POINT OR
CUBE?


Cost

Time
VARIABLES FOR
PROJECT SUCCESS
Predicting project success is one of the most difficult tasks
facing the project manager.
According to Kerzner - most project managers look only at
time, cost and performance. These parameters do not
necessary identify whether or not the project was
successfully managed although the deliverable was
achieved.
Internal project success is often measured by the “actions”of
three groups:
- the project manager and team
- the parent organization
- the client organization
DEFINITION OF
PROJECT SUCCESS
Before 90
Primary Factors
• Within Time
• Within Cost
• Within Quality
• Accepted by The Customer

After 90
Other Factors:
• Customer Reference • Environmental
• Follow-on Work Protection
• Financial Success • Corporate
• Technical Superiority Reputation
• Strategic Alignment • Employee Alignment
• Regulatory Agency • Ethical conduct
Relations
• Health and Safety
RISK PLANNING AND
MITIGATION STRATEGIES
Poor Risk Management
Performance

Technical
Inability

Time

Technical Risk Financial Risk

Assessment Assessment
and Forecasting

Project Project Project

Objectives Planning Execution

Market Risk
Assessment Schedule Risk
and Forecasting Assessment

Opportunities for Tradeoffs

Numerous Resulting from Risk Analyses Limited
PROGRAM
A program of projects is a group of projects which contribute to a common,
higher order objective.
The parent organization has a change objective which may require
contributions from several different areas, or several different types of
project for its achievement.
For instance, to develop a palm nut oil industry, the Malaysian government needs
to develop new plantations, transport infrastructure, factories, and sales outlets.

Program Air Force The integrated, time-phased tasks necessary to accomplish a

particular purpose

NASA A relative series of undertakings that continue over a period of time

(normally years) and that are designed to accomplish a broad,
scientific or technological goal in the NASA long-range plan (lunar
and planetary exploration, manned spacecraft systems)
PROGRAM VS
PROJECT
However, there are some subtle differences between projects and programs.
• The main one is with the nature of the objectives.
• Projects tend to have what are labelled SMART objectives: specific, measurable, achievable, realistic, and timelined.
• The objectives of a program tend to be just smARt; they are less specific and so as a consequence less strongly
measurable and timelined.

Also with a program, the governance structure of the individual projects

needs to be nested within the governance structure of the program
Project
Air Force/NASA A project is within a
program as an undertaking
with a scheduled beginning
and end, and which
normally involves some
primary purpose
PORTFOLIOS
A portfolio of projects is a group of
projects which share common resources.
The program has common outputs; the
portfolio has common inputs.
The resources may be money or people,
but can also be data or technology.

PORTFOLIO MANAGEMENT ISSUES

1. Projects need to be prioritized within the pool of resources available. There is a limited
number of resources, and so only can do a limited number of projects.
2. Having chosen which projects will be done, there is the need to share the resources between
them. The average number of resources should be in balance, but you may find that
resources demands for different projects peak together and there may be unexpected events
which also cause resource clashes.
3. Where projects are sharing data and technology, the projects become coupled, especially
where one project is producing something another needs to use to make progress. The
project plans need to be linked to manage that interface. Project interfaces are also risks
which need to be managed as such.
MULTI-PROJECT
MANAGEMENT
Are the project objectives the same?
• For the good of the project?
• For the good of the company?
Is there a distinction between large and small projects?
How do we handle conflicting priorities?
• Critical versus critical projects
• Critical versus non-critical projects
• Non-critical versus non-critical projects
PMO RESPONSIBILITY
• Maintaining the Master Project and • Issuing Progress Reports
Program Plans

• Operating Document Control and

• Maintaining the Company-Wide Configuration Management
Resource Plan

• Producing Exception Lists

• Providing Resource Data to the
Project Initiation Process
• Purchasing and Administration of
Subcontracts
• Issuing Work-to Lists and Kit-
Marshalling Lists
• Maintaining the Client Interface

• Facilitating the Control Process

• Acting as a Conscience!
PROJECT MANAGEMENT
LIFECYCLE

Startup Control Closure

 Startup Control Closure

STARTUP (1)
1. There are four stages of team formation: 2. Project Start-up is a structured way to moving the
project team quickly and effectively through these four
• Forming
stages, so as to:
• Storming
• Define the project’s context and objectives
• Norming
• Develop the project model
• Performing
• Define the management approach

• Commission the facility and hand it over

3. The methods of project start-up include 4. A stage launch workshop may be held with the
objectives:
• Stage launch workshops
• To gain commitment and build the team spirit
• Start-up reports
• To ratify the project definition as produced in the previous
• Ad-hoc assistance
stage

• To plan the current stage of the project

• To prepare preliminary plans for the execution stage

• To prepare preliminary estimates for the project

• To ensure work starts promptly

• To agree a date for review of the stage deliverables

 Startup Control Closure

STARTUP (2)
5. A project definition report may be prepared with the 6. The contents of the report may include
objectives:
• Background
• To commit resources to design
• Purpose, scope, and objectives
• To provide a basis for design
• Project success and mission
• To set the project’s priority
• Work breakdown structure
• To inform all those effected by the project
• Project organization
• To gain commitment
• Stakeholder register

• Quality plan

• Cost estimates
7. The systems design produced during the design and • Schedule
appraisal stage may be summarized in a project
• Risk register
manual, which may have as its contents:
• Initial activity plans
• Project description and objectives
• Project appraisal
• Master project plan
• Project management system
• Management plan

• Performance specification

• Technical specification

• Acceptance tests and criteria for acceptance

• Project constraints

• Risks and assumptions

EXECUTION AND
Startup Control Closure

CONTROL (1)
1. The process of resourcing a project includes the 2. The five steps of activity planning are
following steps:
• Define the activities to achieve a milestone or work package.
• Identify what is to be achieved.
• Ratify the people involved.
• Identify the skills and skill types required.
• Define their roles and responsibilities.
• Identify the people available.
• Estimate work content and durations.
• Assess their competence.
• Schedule activities within a work package.
• Identify any training required.

• Negotiate with the resource provider.

• Ensure appropriate project facilities are available.

3. After creation of the activity schedule, it is entered 4. Activity schedules may be represented by:
into the master plan, and at appropriate intervals work
• Responsibility charts
allocated to people. Both steps must be authorized by
the project manager. • Estimating sheets

• Nested networks

• Nested bar charts

EXECUTION AND
Startup Control Closure

CONTROL (2)
5. Work is allocated to people via work-to lists, by: 6. The four steps in the control cycle are:
• Time period • Plan future performance.

• Work package • Monitor achievement against plan.

• Calculate variances and forecast outturn.

• Take action to overcome variances.

7. For control to be effective, each step in this cycle 8. Requirements for effective reporting include:
must be effective. Requirements for effective planning
• Reports against the plan
will be described.
• Defined criteria for control

• Simple, friendly tools

• Reporting at defined intervals

• Formal review meetings

• Creative discussions
EXECUTION AND
Startup Control Closure

CONTROL (3)
9. This can be achieved by gathering data using 10. Time is controlled by recording progress on the
turnaround documents, which can be used to gather critical or near critical paths, or by comparing the cost
data to control the five objectives: of work actually completed to that planned to have
been completed. In order to do this, the following
• Time
progress data is collected:
• Cost
• Actual and Revised start/finish
• Quality
• Effort to Date and Effort Remaining
• Organization
• Costs to date and Cost Remaining
• Scope

11. Cost is controlled by comparing costs incurred to 12. When the divergence of achievement from the plan
the planned cost of work actually completed. In order to becomes too great, the project must be recovered.
do this, the same data is required.
The ten-step problem-solving cycle can be applied to
Costs are said to be incurred when the expenditure is find the solution to plan recovery.
committed, not when the invoices are paid, because at
that time the plan can still be recovered. Possible courses of action include
• Rearranging the plan

• Compromising time

• Compromising cost

• Compromising scope

• Aborting the project

 Startup Control Closure

PROJECT CLOSE (1)

1. Key requirements for effective project close 2. Work must be finished in a timely, efficient manner.
• Finishing the work in a timely and efficient manner • Checklists of outstanding work

• Transferring the product to the users • Planning and controlling at lower levels of work breakdown

• Obtaining the benefits • More frequent control meetings

• Disbanding the team • Planned rundown of the project team

• Reviewing progress • Use of task forces

• Changing the project manager

• Closing contracts with suppliers

3. Effective product transfer to the users is facilitated 4. The facility must be commissioned to obtain the
by: required benefit, and this can be controlled by:
• Planning the transition • Defining the desired benefit and desired performance
improvement and by drawing a benefits map
• Ensuring user acceptance
• Monitoring performance improvement and tracking progress
• Training the users against the benefits map
• Obtaining definite cutover • Identifying shortfalls
• Recording the as-built design • Taking action to overcome the shortfalls
• Ensuring maintenance of the facility
 Startup Control Closure

PROJECT CLOSE (2)

5. The project team must be disbanded in an efficient 6. Post completion reviews must be held to:
manner, and yet in a way that takes care of their
• Record the as-built design
motivational needs. This can be achieved by:
• Compare achievement to plan
• Planning the rundown
• Record technical data
• Returning resources promptly to line managers
• Learn successes and failures for the future
• Holding a debriefing meeting

• Holding an end-of-project party

• Rewarding achievement

• Disciplining under achievement

• Counselling staff
Part I
Project Information

1. Prepare the group case

2. Prepare for Topic 2
Project Planning