A Guide to Project Management

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					A Guide to Project
  Management


 Prof. Rushen Chahal

                       Page 1
     6 Basic Principles to Project
            Management
•   Define the job in detail
•   Get the right people involved
•   Estimate the time and costs
•   Break the job down using the 40-hour rule
•   Establish a change procedure
•   Agree on acceptance criteria


                                           Page 2
      Project Management
           Framework



• Introduction
• Project Management Context
• Project Management Process

                               Page 3
             Introduction

• What is a Project?
• What is Project Management?
• Relationship to Other Management
  Disciplines
• Related Endeavors




                                     Page 4
        What is a Project?




• Performed by people
• Constrained by limited resources
• Planned, executed and controlled


                                     Page 5
 What is Project Management?
• Competing demands for:
  –   Scope
  –   Time
  –   Cost
  –   Risk
  –   Quality
• Stakeholders with differing needs and
  expectations
• Identified requirements


                                          Page 6
    Relationship to Other
   Management Disciplines


• Functional departments and supporting
  disciplines
• Technical elements
• Management specializations
• Industry groups

                                      Page 7
       Related Endeavors




• Programs
• Project portfolio management
• Subprojects
                                 Page 8
    Project Management Context

•   Project Phases and the Project Life Cycle
•   Project Stakeholders
•   Organizational Influences
•   Key General Management Skills
•   Social-Economic-Environmental
    Influences



                                           Page 9
Project Management Processes

•   Project Processes
•   Process Groups
•   Process Interaction
•   Customizing Process Interactions
•   Mapping of Project Management
    Processes



                                       Page 10
                  Mapping of Project Management
Process Group
                             Process
                       Initiating            Planning                      Executing                 Controlling              Closing
Knowledge Area

Project Scope                       •Project Plan Development       •Project Plan Execution     •Integrated Change
Management                                                                                      Control


Project Scope         •Initiation   •Scope Planning                                             •Scope Verification
Management                          •Scope Definition                                           •Scope Change
                                                                                                Control

Project Time                        •Activity Definition                                        •Schedule Control
Management                          •Activity Sequencing
                                    •Activity Duration Estimating
                                    •Schedule Development

Project Cost                        •Resource Planning                                          •Cost Control
Management                          •Cost Estimating
                                    •Cost Budgeting

Project Quality                     •Quality Planning               •Quality Assurance          •Quality Control
Management


Project Human                       •Organizational Planning        •Team Development
Resource Management                 •Staff Acquisition

Project                             •Communications Planning        •Information Distribution   •Performance           •Administrative
Communications                                                                                  Reporting              Closure
Management

Risk Project                        •Risk Management Planning                                   •Risk Monitoring and
Management                          •Risk Identification                                        Control
                                    •Qualitative Risk Analysis
                                    •Quantitative Risk Analysis
                                    •Risk Response Planning

Project Procurement                         Prof. Rushen
                                    •Procurement Planning      Chahal
                                                                  •Solicitation                                             Page 11
                                                                                                                       •Contract Closeout
Management                          •Solicitation Planning          •Source Selection
                                                                    •Contract Administration
         Project Management
          Knowledge Areas

•   Project Integration Management
•   Project Scope Management
•   Project Time Management
•   Project Cost Management
•   Project Quality Management
•   Project Human Resource Management
•   Project Communications Management
•   Project Risk Management
•   Project Procurement Management

                                        Page 12
Project Integration Management




• Project Plan Development
• Project Plan Execution
• Integrated Change Control

                              Page 13
       Project Plan Development
• Inputs                         • Tools and Techniques
   –   Other planning outputs       – Project planning methodology
   –   Historical information       – Stakeholders skills and
   –   Organizational policies        knowledge
   –   Constraints                  – Project management
   –   Assumptions                    information systems (PMIS)
                                    – Earned value management
                                      (EVM)
                                 • Outputs
                                    – Project plan(s)
                                    – Supporting detail




                                                              Page 14
              Project Plan Execution
•   Inputs                         •   Tools and Techniques
     –   Project plan                   – General management skills
     –   Supporting detail              – Product skills and knowledge
     –   Organizational policies        – Work authorization system
     –   Preventive action              – Status review meetings
     –   Corrective action              – Project management information
                                          system
                                        – Organizational procedures
                                   •   Outputs
                                        – Work results
                                        – Change requests




                                                                    Page 15
     Integrated Change Control
• Inputs                   • Tools and Techniques
   – Project plan             –   Change control system
   – Performance reports      –   Configuration management
   – Change requests          –   Performance measurement
                              –   Additional planning
                              –   Project management
                                  information system
                           • Output
                              – Project plan updates
                              – Corrective action
                              – Lessons learned




                                                        Page 16
    Project Scope Management



•   Scope Initiation
•   Scope Planning
•   Scope Definition
•   Scope Verification
•   Scope Change Control
                               Page 17
                  Scope Initiation
• Inputs                          • Tools and Techniques
   – Product description             – Project selection methods
   – Strategic plan                  – Expert judgement
   – Project selection criteria   • Outputs
                                     – Project charter
                                     – Project manager
                                       identified/assigned
                                     – Constraints
                                     – Assumptions




                                                             Page 18
                  Scope Planning
• Inputs                     • Tools and Techniques
   –   Product description      –   Product analysis
   –   Project charter          –   Benefit/cost analysis
   –   Constraints              –   Alternatives identification
   –   Assumptions              –   Expert judgement
                             • Outputs
                                – Scope statement
                                – Supporting detail
                                – Scope management plan




                                                             Page 19
              Scope Definition
• Inputs                       • Tools and Techniques
  –   Scope statement            – Work breakdown
  –   Constraints                  structure
  –   Assumptions                – Decomposition
  –   Other planning outputs   • Outputs
  –   Historical information     – Work breakdown
                                   structure
                                 – Scope statement
                                   updates



                                                     Page 20
           Scope Verification

• Inputs              • Tools and Techniques
  – Work results        – Inspection
  – Product           • Outputs
    documentation       – Formal acceptance
  – Work breakdown
    structure
  – Scope statement
  – Project plan




                                              Page 21
           Scope Change Control
• Inputs                          • Tools and Techniques
   –   Work breakdown structure      – Scope change control
   –   Performance reports             system
   –   Change requests               – Performance measurement
   –   Scope management plan         – Additional planning
                                  • Outputs
                                     –   Scope changes
                                     –   Corrective action
                                     –   Lessons learned
                                     –   Adjusted baseline




                                                             Page 22
    Project Time Management



•   Activity Definition
•   Activity Sequencing
•   Activity Duration Estimating
•   Schedule Development
•   Schedule Control
                                   Page 23
             Activity Definition
• Inputs                     • Tools and Techniques
  – Work breakdown             – Decomposition
    structure                  – Templates
  – Scope statement          • Outputs
  – Historical information     – Activity list
  – Constraints                – Supporting detail
  – Assumptions                – Work breakdown
  – Expert judgement             structure updates




                                                     Page 24
              Activity Sequencing
• Inputs                            • Tools and Techniques
   –   Activity list                   – Precedence diagramming
   –   Product description               methods (PDM)
   –   Mandatory dependencies          – Arrow diagramming method
   –   Discretionary dependencies        (ADM)
   –   External dependencies           – Conditional diagramming
                                         methods
   –   Milestones
                                       – Network templates
                                    • Outputs
                                       – Project network diagram
                                       – Activity list updates




                                                                   Page 25
       Activity Duration Estimating
• Inputs                        • Tools and Techniques
   –   Activity list               –   Expert judgement
   –   Constraints                 –   Analogous estimating
   –   Assumptions                 –   Quantitatively based durations
   –   Resource requirements       –   Reserve time (contingency)
   –   Resource capabilities    • Outputs
   –   Historical information      – Activity duration estimates
   –   Identified risks            – Basis of estimates
                                   – Activity list updates




                                                                Page 26
             Schedule Development
•   Inputs                             •   Tools and Techniques
     –   Project network diagrams           –   Mathematical analysis
     –   Activity duration estimates        –   Duration compression
     –   Resource requirements              –   Simulation
     –   Resource pool description          –   Resource leveling heuristics
     –   Calendars                          –   Project management software
     –   Constraints                        –   Coding structure
     –   Assumptions                   •   Outputs
     –   Leads and lags                     –   Project schedule
     –   Risk management plan               –   Supporting detail
     –   Activity attributes                –   Schedule management plan
                                            –   Resource requirements updates




                                                                           Page 27
                Schedule Control
• Inputs                          • Tools and Techniques
   –   Project schedule              – Schedule change control
   –   Performance reports             system
   –   Change requests               – Performance measurement
   –   Schedule management plan      – Additional planning
                                     – Project management software
                                     – Variance Analysis
                                  • Outputs
                                     – Schedule updates
                                     – Corrective action
                                     – Lessons learned




                                                              Page 28
     Project Cost Management




•   Resource Planning
•   Cost Estimating
•   Cost Budgeting
•   Cost Control
                               Page 29
               Resource Planning
• Inputs                             • Tools and Techniques
   –   Work breakdown structure         – Expert judgement
   –   Historical information           – Alternatives identification
   –   Scope statement                  – Project management
   –   Resource pool description          software
   –   Organization policies         • Outputs
   –   Activity duration estimates      – Resource requirements




                                                                   Page 30
                    Cost Estimating
• Inputs                             • Tools and Techniques
   –   Work breakdown structure         –   Analogous estimating
   –   Resource requirements            –   Parametric modeling
   –   Resource rates                   –   Bottom-up estimating
   –   Activity duration estimates      –   Computerized tools
   –   Estimating publications          –   Other cost estimating methods
   –   Historical information        • Outputs
   –   Chart of accounts                – Cost estimates
   –   Risks                            – Supporting detail
                                        – Cost management plan




                                                                    Page 31
            Cost Budgeting

• Inputs               • Tools and Techniques
  – Cost estimates       – Cost budgeting tools
  – Work breakdown         and techniques
    structure          • Outputs
  – Project schedule     – Cost baseline
  – Risk management
    plan




                                             Page 32
                         Cost Control
•   Inputs                      •   Tools and Techniques
     –   Cost baseline               –   Cost change control system
     –   Performance reports         –   Performance measurement
     –   Change requests             –   Earned value management (EVM)
     –   Cost management plan        –   Additional planning
                                     –   Computerized tools
                                •   Outputs
                                     –   Revised cost estimates
                                     –   Budget updates
                                     –   Corrective action
                                     –   Estimate at completion
                                     –   Project closeout
                                     –   Lessons learned




                                                                  Page 33
 Project Quality Management




• Quality Planning
• Quality Assurance
• Quality Control

                          Page 34
                  Quality Planning
• Inputs                           • Tools and Techniques
   –   Quality policy                 –   Benefit/cost analysis
   –   Scope statement                –   Benchmarking
   –   Product description            –   Flow-charting
   –   Standards and regulations      –   Design of experiments
   –   Other process outputs          –   Cost of quality
                                   • Outputs
                                      –   Quality management plan
                                      –   Operational definitions
                                      –   Checklists
                                      –   Inputs to other processes




                                                                      Page 35
           Quality Assurance

• Inputs                     • Tools and Techniques
  – Quality management         – Quality planning tools
    plan                         and techniques
  – Results of quality         – Quality audits
    control measurements     • Outputs
  – Operations definitions     – Quality improvement




                                                    Page 36
                   Quality Control
• In puts                        • Tools and Techniques
   –   Work results                 –   Inspection
   –   Quality management plan      –   Control charts
   –   Operational definitions      –   Pareto Diagrams
   –   Checklists                   –   Statistical sampling
                                    –   Flow-charting
                                    –   Trend analysis
                                 • Outputs
                                    –   Quality improvements
                                    –   Acceptance decisions
                                    –   Rework
                                    –   Completed checklists
                                    –   Process adjustments



                                                               Page 37
   Project Human Resource
         Management




• Organizational Planning
• Staff Acquisition
• Team Development

                            Page 38
           Organizational Planning
• Inputs                     • Tools and Techniques
   – Project interfaces         –   Templates
   – Staffing requirements      –   Human resource practices
   – Constraints                –   Organizational theory
                                –   Stakeholder analysis
                             • Outputs
                                – Role and responsibilities
                                  assignments
                                – Staffing management plan
                                – Organization chart
                                – Supporting detail




                                                           Page 39
             Staff Acquisition
• Inputs                    • Tools and Techniques
  – Staffing management       – Negotiations
    plan                      – Pre-assignment
  – Staffing pool             – Procurement
    description
                            • Outputs
  – Recruitment practices
                              – Project staff assigned
                              – Project team directory




                                                   Page 40
              Team Development
• Inputs                          • Tools and Techniques
   –   Project staff                 – Team-building activities
   –   Project plan                  – General management skills
   –   Staffing management plan      – Reward and recognition
   –   Performance reports             systems
   –   External feedback             – Collocation
                                     – Training
                                  • Outputs
                                     – Performance improvements
                                     – Input to performance
                                       appraisals




                                                              Page 41
      Project Communications
           Management


•   Communications Planning
•   Information Distribution
•   Performance Reporting
•   Administrative Closure

                               Page 42
    Communications Planning

• Inputs             • Tools and Techniques
  – Communications     – Stakeholder analysis
    requirements     • Outputs
  – Communications     – Communications
    technology           management plan
  – Constraints
  – Assumptions




                                           Page 43
        Information Distribution
• Inputs               • Tools and Techniques
   – Work results         – Communications skills
   – Communications       – Information retrieval
     management plan        systems
   – Project plan         – Information distribution
                            methods
                       • Outputs
                          – Project records
                          – Project reports
                          – Project presentations




                                                       Page 44
           Performance Reporting
• Inputs                     • Tools and Techniques
   – Project plan               –   Performance reviews
   – Work results               –   Variance analysis
   – Other project records      –   Trend analysis
                                –   Earned value analysis
                                –   Information distribution tools
                                    and techniques
                             • Outputs
                                – Performance reports
                                – Change requests




                                                               Page 45
           Administrative Closure
• Inputs                       • Tools and Techniques
   – Performance measurement      – Performance reporting
     documentation                  tools and techniques
   – Product documentation        – Project reports
   – Other project records        – Project presentations
                               • Outputs
                                  – Project archives
                                  – Project closure
                                  – Lessons learned




                                                            Page 46
     Project Risk Management


•   Risk Management Planning
•   Risk Identification
•   Qualitative Risk Analysis
•   Quantitative Risk Analysis
•   Risk Response Planning
•   Risk Monitoring and Control

                                  Page 47
    Risk Management Planning
• Inputs                        • Tools and Techniques
   – Project charter               – Planning meeting
   – Organization’s risk        • Outputs
     management policies
                                   – Risk management plan
   – Defined roles and
     responsibilities
   – Template for the
     organization’s risk
     management plan
   – Work breakdown structure




                                                            Page 48
                 Risk Identification
• Tools                           • Tools and techniques
   –   Risk management plan          – Documentation review
   –   Project planning outputs      – Information-gathering
   –   Risk categories                 techniques
   –   Historical information        – Checklists
                                     – Assumptions analysis
                                     – Diagramming techniques
                                  • Outputs
                                     – Risks
                                     – Triggers
                                     – Inputs to other processes




                                                                   Page 49
           Qualitative Risk Analysis
•   Inputs                                  •   Tools and Techniques
     –   Risk management plan                    – Risk probability and impact
     –   Identified risks                        – Probability/impact risk rating
     –   Project status                            matrix
     –   Project type                            – Project assumptions testing
     –   Data precision                          – Data precision ranking
     –   Scales of probability and impact   •   Outputs
     –   Assumptions                             – Overall risk ranking for the project
                                                 – List of prioritized risks
                                                 – List of risk for additional analysis
                                                   and management
                                                 – Trends in qualitative risk analysis
                                                   results




                                                                                    Page 50
       Quantitative Risk Analysis
• Inputs                            • Tools and Techniques
   – Risk management plan              –   Interviewing
   – Identified risks                  –   Sensitivity analysis
   – List of prioritized risks         –   Decision tree analysis
   – List of risks for additional      –   Simulation
     analysis and management        • Outputs
   – Historical information            – Prioritized list of quantified
   – Expert judgement                    risks
   – Other planning outputs            – Probabilistic analysis of the
                                         project
                                       – Probability of achieving the
                                         cost and time objectives
                                       – Trends in quantitative risk
                                         analysis results




                                                                     Page 51
            Risk Response Planning
•   Inputs
      – Risk management plan
      – List of prioritized risks                •   Tools and Techniques
      – Risk ranking of the project                   – Avoidance
      – Prioritized list of quantified risks          – Transference
      – Probabilistic analysis of the project         – Mitigation
      – Probability of achieving the cost and
         time objectives                              – Acceptance
      – List of potential responses              •   Outputs
      – Risk thresholds                               – Risk response plan
      – Risk owners                                   – Residual risks
      – Common risk causes                            – Secondary risks
      – Trends in qualitative and quantitative        – Contractual agreements
         risk analysis results
                                                      – Contingency reserve amounts
                                                         needed
                                                      – Inputs to other processes
                                                      – Inputs to a revised project plan




                                                                                      Page 52
      Risk Monitoring and Control
•   Inputs                              •   Tools and Techniques
     – Risk management plan                  –   Project risk response audits
                                             –   Periodic project risk reviews
     – Risk response plan                    –   Earned value analysis
     – Project communication                 –   Technical performance measurement
     – Additional risk identification        –   Additional risk response planning
        and analysis                    •   Outputs
     – Scope changes                         –   Workaround plans
                                             –   Corrective action
                                             –   Project change requests
                                             –   Updates to the risk response plan
                                             –   Risk Database
                                             –   Updates to risk identification checklists




                                                                                    Page 53
          Project Procurement
             Management
•   Procurement Planning
•   Solicitation Planning
•   Solicitation
•   Source Selection
•   Contract Administration
•   Contract Closeout


                                Page 54
           Procurement Planning
• Inputs                        • Tools and Techniques
   –   Scope statement             – Make-or-buy analysis
   –   Product description           Expert judgement
   –   Procurement resources       – Contract type selection
   –   Market conditions        • Outputs
   –   Other planning outputs      – Procurement management
   –   Constraints                   plan
   –   Assumptions                 – Statement(s) of work




                                                               Page 55
           Solicitation Planning
• Inputs                      • Tools and Techniques
   – Procurement management      – Standard forms
     plan                        – Expert judgement
   – Statement(s) of work     • Outputs
   – Other planning outputs
                                 – Procurement documents
                                 – Evaluation criteria
                                 – Statement of work updates




                                                        Page 56
                    Solicitation

• Inputs                     • Tools and Techniques
  – Procurement                – Bidder conferences
    documents                  – Advertising
  – Qualified seller lists   • Outputs
                               – Proposals




                                                  Page 57
               Source Selection
• Inputs                       • Tools and Techniques
   – Proposals                    –   Contract negotiation
   – Evaluation criteria          –   Weighting system
   – Organizational policies      –   Screening system
                                  –   Independent estimates
                               • Outputs
                                  – Contract




                                                              Page 58
         Contract Administration
• Inputs                 • Tools and Techniques
   –   Contract             – Contract change control
   –   Work results           system
   –   Change requests      – Performance reporting
   –   Seller invoices      – Payment system
                         • Outputs
                            – Correspondence
                            – Contract changes
                            – Payment requests




                                                    Page 59
           Contract Closeout

• Inputs            • Tools and Techniques
  – Contract          – Procurement audits
    documentation   • Outputs
                      – Contract file
                      – Formal acceptance
                        and closure




                                            Page 60

				
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Description: Prof Rushen's notes for MBA and BBA students