CPM-600: Principals of Project Integration Integrating the Project’s Technical Components (Lesson A) Michael Hatfield PMP, CCC David Post PE IPMC 2002 Fall Conference Professional Education Program Lesson Objectives This lesson will provide an overview of project definition, change control, configuration management, work authorization, and information management as major components of the project integration responsibility. The Context of Integration I The bad news: Project Management Integration is a very tall order. I The good news: It’s been done before, and the people who pulled it off left a roadmap for us. I The Software Engineering Institute’s (SEI) Capability Maturity Model SEI-CMM Five Phases I Phase I: Chaos, uncoordinated I Phase II: Very basic capability, but consistently applied I Phase III: Documented, repeatable I Phase IV: Seamless, exportable I Phase V: Routine discovery of new, ground-breaking solutions to PM problems Ready for More Structure? The PMBOK Guide’s 9 Areas: I Scope I Human Resources I Cost I Communication I Schedule I Quality I Risk I Procurement I Integration In Moving from Phase I to Phase II, it’s all about SCOPE! In moving from Phase I to Phase II: I Stress consistency over more advanced capability I Scope definition leads all other efforts I The WBS must be valid (no Functional or Organizational Breakdown Structure Elements, multiple roll-up paths, etc.) Of the 9 Areas, what needs to be implemented first? I Cost needs a I Scope definition moderate scope needs no other capability advanced capability I Risk needs an advanced scope capability I Schedule needs a moderate scope capability I The “soft” disciplines are similar OK, how do we do this? I The Project Plan contains the strategy for capturing scope and establishing the baselines. I The Work Breakdown Structure captures the scope in a way that supports baseline establishment and integration. How to Write a Project Plan Sample outlines are available in: I DOE 413.3 I DOD, NASA Documents I PMI, CPM I But, really, the Project Plan is not as important as knowing... How to Write a Work Breakdown Structure A valid WBS element contains the following characteristics: I Specific output or service I Discernible beginning and ending date I Resources are dedicated to it I One person or organizational structure unit is responsible for its completion About the entire WBS: I All of the project’s work is captured in the WBS I No work associated with the project is not captured in the WBS I Lower-level elements roll up to higher levels, integrating detailed work with higher-level project objectives Lowest-level WBS elements serve as the basis for the Cost & Schedule baselines Three types of Cost The Schedule Baseline Estimates: contains duration I Order of Magnitude estimates, along I Budget with schedule logic - what happens in I Detailed which order Once these steps are over: I Make sure that all WBS elements are scheduled and cost-estimated I Load the cost estimate into the scheduling software, element by element I At this point the essential tri-fecta is in place: integrated cost, scope, and schedule I It is now possible to implement a Work Authorization System and a Project Management Information System Signs of Trouble I If one of the baselines changes without impacting the other two I A WBS Element Manager cannot give a straight answer to the question “What percent complete are you done?” I Progress claimed on work not contained in all three baselines Work Authorization Systems should: I Notify/Activate the resources planned to accomplish that piece of scope I Notify the accounting system to open charge accounts/cost centers to accept actuals I Modify the Performance Measurement System to begin collecting status Work Authorization Systems should not: I Allow work to begin before its planned date I Accept actual charges from unauthorized activities I Be maintained informally, with no audit trail A Project Management Information System should: I Use Earned Value to measure the performance of all active work I Be able to realistically predict, at current rates of performance, how long the activities will take and how much they will cost I Roll-up the information through the WBS to indicate overall project/program health A Project Management Information System should not: I Be used to attempt to manage assets I Indicate a change in planned figures without an approved BCP in place I Fail to include a comprehensive Variance Analysis Report for any out-of- threshold variance Generic Management Information System Architecture Information Flow Collect Data Process into Information Deliver Info Feedback Loop Project Management Information System Architecture Information Flow Estimating System Scheduling System Reporting System Change Control/Feedback Loop Change Control and Configuration Management Change is inevitable, so... When presenting a BCP, present a new or modified I WBS (scope impact) I Cost Plan (resource impact) I Target File (schedule impact) Each of these represent quantifications of the exact same work. Depending on the size of the Impact of the Change I A change control board reviews high- impact changes I Smaller changes can be handled internally, but still formally I Establish the level of change that is to be addressed internally/externally, and document it in the Project Plan Configuration Management defends you from the most dangerous threat to your project: SCOPE CREEP More signs of trouble I An activity claims some percent complete prior to its baseline start date I Actual costs are being incurred from activities that shouldn’t have started yet I No actual finish on activities that show 100% complete Variance Analysis and Integration Variances are our friends. Just find out what’s causing it: I Was it in-scope, but not in the baseline? (contingency event) I Was it out-of-scope? (scope creep) I Was the baseline mis-estimated? (management reserve) I Was it really poor performance? (management action) I Or, did the scope change? (BCP prep time) Moving from Phase II to Phase III I Stress establishing the documentation and training to enable the system to repeat itself in other projects I Establish self-assessing protocols or systems to verify inter-baseline integrity I The Acid Test: If the heroes who got you here go away, do your PM systems unravel? Integrating Risk I Once again, we need at least a moderate capability in Scope I Risk management quantifies the impact of in-scope, unbaselined work I Therefore, we need to know exactly what is in the scope in order to know what is not in the scope Three types of Risk Assessment I Risk Type classification I Decision-Tree Analysis I Monte Carlo Simulation These depend on (at least) a moderate capability in Scope, and basic to moderate ability in Cost and Schedule. Risk Management Systems should: I Quantify foreseeable in-scope events that could impact project cost or schedule I Contain time and cost estimates that can be used to create a contingency budget I Provide an audit trail in case a (legitimate) contingency event occurs Risk Management Systems should not: I Allow negative variances to be covered by contingency funds (other than legitimate contingency events) I Attempt to quantify external non- technical risk events (unknown unknowns) I Exclude any part of the WBS Are we integrated yet? It all proceeds from the Work Breakdown Structure: I Each element is estimated (integrated Cost Baseline) I Each element is captured in a Critical Path Schedule network (integrated Schedule Baseline) I Each element is evaluated as to potential risk events that could impact cost and schedule (integrated Risk Analysis) Are we integrated yet? Since the baselines are all consistent with the approved WBS, I Scheduled WBS elements have appropriate resources (ideally, residing in the CPM software), integrating Cost to Schedule I Costed WBS elements have resource estimates for the impact of potential Risk Events, integrating Risk to Cost I Scheduled WBS elements have time estimates for the impact of potential Risk Events, integrating Risk to Schedule We are integrated! Cost Each Element’s Alternatives Risk Costed Each Element Costed Each Element Alternatives Evaluated Scope Each (WBS) Each Element’s Alternatives’ Scheduled Time Element Costed Estimated Each Element Scheduled Schedule Any questions?
Pages to are hidden for
"Michael Hatfield Project Management - PDF"Please download to view full document