BACKGROUND TO PROJECT MANAGEMENT

BACKGROUND TO PROJECT MANAGEMENT

- based on readings by REISS & VERZUH

What is Project Management?

Looking Forward, plan, plan, plan, .... accounts for about 50% of the effort.
Thinking ahead, plan, ...
Tackling new ground, plan, ...

Team Communication, ... accounts for about 25% of the effort.
Yardstick Review, monitor, budget ... the remaining 25% of the effort.

It is a learned technique!

Just needs to be understood
A collection of tools
A collection of attitudes
Almost industry independent

What is a Project?

Work we only do one time!
Takes the form of a proposal.
All projects have a start time and an end time.

To be a successful project it must address the following 5 factors

Agreement among the project team, customer, and management on the goals of the project. i.e. "Clear Goals". Employ several different methods to ensure all the stakeholders want the same thing.
A plan that shows an overall path and clear responsibilities that will be used to measure progress during the project. The Plan shows who is responsible for what and when as well it demonstrates what is possible. It details resources, - people, money, equipment, & materials necessary to get the job done.
Constant, effective communication among everyone involved in the project. People - not plans or software complete projects. From concept through Implementation, success depends on the ability to come to agreement, coordinate action, recognize and solve problems, and react to change.
A controlled scope. Must ensure from the very start that everyone involved understands exactly what is to be accomplished within the given timeframe and budget. i.e. "Managing stakeholder expectations"
Management support. Enlist the people with authority to supply people, make policy decisions, remove organizational obstacles and keep the project moving.

The Definition of Success 1/ Delivered ON TIME
2/ Delivered ON BUDGET
3/ Delivers a QUALITY Outcome: - Defined "Functionality" &
Defined "Performance". The Cost-Schedule-Quality Equilibrium Cost, schedule and quality are the three primary variables of any project, change any one and the others will also change. The challenge is to balance these variables to create the optimal cost-schedule-quality equilibrium. Managing Expectations 1/ Set realistic expectations about the cost-schedule-quality equilibrium with all the project's stakeholders.
2/ Manage expectations throughout the project. If the equilibrium changes, make sure everybody knows and accepts the new equilibrium.
3/ Deliver the promised outcomes, on time, & within budget.

THE THREE PROJECT MANAGEMENT FUNCTIONS

FUNCTION ONE: - PROJECT DEFINITION * Enlist Sponsors

* Name the stakeholders

* Making the project rules

PROPOSAL TO Complete task "xyz"

MINIMUM STATEMENT OF WORKS: - PROJECT DEFINITION GOALS, ETC

1/ Clear purpose, goals, and constraints statement. The WHY are we doing this ?
2/ Scope statement (define boundaries & size) watch out for scope creep.
3/ Deliverable's (what will this project produce?)
4/ Cost & Schedule (budget and deadline) - write it all down!
5/ Set Objectives & Expectations, Functionality & Performance (Criteria for success!) List the assumptions and agreements 6/ Obtain agreement of Stakeholders (define roles)

A/ Project manager
B/ Project team
C/ Sponsors
D/ Management
E/ Customer
F/ Vendors if applicable
G/ Impacted Regions

7/ Clarify the Chain of Command (Who reports to Whom)
This may be reflected in the organization chart.

8/ Set up the communication strategy
People make projects happen, the job of the Project Manager is to make other people more productive.

Communication will be via strictly minuted meetings of the Project Team in conjunction with E-mail sent to all stakeholders in the form of progress reports, and requests for services.

9/ Manage the Change Control Process

10/ Generate the Project Rules

Agreement of all parties will be sought on the project goals, and scope of works.

Management support will be sought before the project begins.

Note: - Seek a signature from Management before the Project begins. 11/ RESPONSIBILITY MATRIX

E - execution responsibility

C - must be consulted (opinion counts)

I - must be informed (want to know))

A - approval authority (Director or delegate)

12/ Communication / Reporting Plan

A written strategy for getting the right information to the Right people at the right time. Sample Reporting Matrix: -

Stakeholder	Information	Frequency
Sponsors	High Level Cost, Schedule, quality issues Problems & proposed actions	Monthly
Functional mgt.	Detailed Costing, schedule Problems & Proposed actions Assistance required	Weekly
Customers
Project Team	Etc, ….
Project Manager

Other Types of Information: -
Authorizations
Status Changes
Coordination details
Medium: -
Written reports
Meetings,
Published Meeting minutes, etc.
Include regular meetings to provide the Project Reporting Function.
13/ Charter: - Clearly establishes the Project Manager's right to make decisions and lead the project. This could be a separate document.

FUNCTION TWO: - PROJECT PLANNING: -

* Risk Management

* Detailed Scheduling

* Estimating

The ultimate challenge in project management is: - "Doing it right the first time"

The plan analyzes in detail how to balance costs, schedule and quality, providing data the Project Manager can use in managing the stakeholder expectations.
The plan becomes the basis for evaluating progress during the project.
The plan includes comparisons between possible strategies for executing the project, allowing the team to choose the approach with the best chance of success
The resource projections contained in the plan for each project can be combined to create resource projections for the entire division.

All project management is risk management!

Develop a Project Plan

Will depend on resources available from the Division.

1/ How do we meet the Project goals: -
2/ Preparation of a requirements brief from the Scope details above.
3/ Preparation of a concept design similar to the "xyz" proposal.
4/ Preparation of a Technical Specification for the project: -
                    a/ Design a strategy / drawing.
                    b/ Allocate resources.
                    c/ Purchase / Deploy Suitable Hardware.
                    d/ Install / Cable in new hardware
                    e/ Configure new hardware in the O.S.
                    f/ Testing the installation
                    g/ Design to incorporate existing hardware
                    h/ Managers to approve budget.
5/ Use Common estimating and scheduling techniques.
Work Breakdown Structure (WBS). All deliverables from the Scope of Works SOW appear on the WBS. Need to name all the tasks required to produce the deliverables. A WBS is typically multi tiered and breaks the project down into descending levels of detail, from Summary Tasks that consist of several subordinate tasks, "activities" or Work Packages. In general tasks should follow the 8/80 rule, in that no task should be less than 8 hours or longer than 80 hours. This translates into between 1 and 10 days.

Next identify task relationships, sequence tasks into there correct order. Be aware of the task relationships

a/ Finish to start
b/ Start to start
c/ Finish to Finish

Calculate an initial schedule using Project software tools.
For each work package "WP" or task determine: -
Early start              the earliest date the task can begin,
                                given the tasks preceding it.
Early finish             the earliest date the task can finish
                                given the tasks preceding it.
Late start               the latest date a task can begin without
                               delaying the finish date of the project.
Late finish             the latest date a task can finish without
                              delaying the finish date of the project.
Run a Forward Pass through the network diagram to determine the ES and EF values for each WP.
Work backward from the finish date to determine the LS and LF values for each WP. Calculate the float, (often called slack)

Float = LS - ES

Determine the CRITICAL PATH all the tasks with zero or negative float, when outlined on a network diagram forms the longest path through the network. Negative float results when externally imposed finish dates are impossible to meet. These require adjustments to be made to the schedule to bring it in line with the critical path.

Project Dates: -

We are now in a position to nail down some critical dates for the Project.
Given an end date we can generate the latest start date for the project.

Other external factors may feed in to force the start date to today

For example: -

Project to proceed as a matter of urgency, as the Security issues apply to a system now in Production. Escape Clauses

** Watch out for clauses that will allow a project to slip.

All work will be completed on a schedule to be advised to the Project Manager. This schedule will depend on the availability of selected staff and their existing priorities. It is expected that every attempt will be made to meet the deadlines proposed delivered upon best efforts basis only.

6/ Determine who will do the work

Sequence the tasks - create work packages
Identify Summary tasks
Calculate an initial schedule Advice from the Region
Assign and level resources (pre-fabrication etc)
Resource constraints
Resource forecast

7/ Determine how much it will cost

Materials cost: - Advice from the technical support.
Seek Original Budget approval.

8/ Determine when it will be completed

Realistic schedule: - Closed off by date dd/mm/yyyy or sooner

9/ Generate a Project Plan: - Will be created at planning meetings

All project tasks WP's
Schedule
Responsibilities
Budget
Resource forecast RISK LOG

Generate a Risk Profile for the Project

A/ They are industry specific
B/ They are organization specific
C/ They address both product and management risks
D/ They predict the magnitude of each risk

Create a Risk Management plan (could be a separate document)

Risk     1/    Definition Condition: - Cause for concern
                                  Consequence: - Describe the negative outcome
           11/   Probability high medium low
         111/   Strategy 'damage control'

1/ Identify areas of greatest risk/uncertainty

Working around a "live" Production system
2/ Create strategies to manage the risk a/ Work with the least critical dev env. First demonstrate
we have full functionality before we tackle the Prod env.
b/ Assign probabilities to risks. e.g. task 1. Prob~ 0.001
c/ Define the risk including the negative impact
d/ Develop a strategy to manage damage control.
3/ Document a backout procedure before work begins

4/ Additional "backups" may be required before work begins

5/ The detailed strategy laid out in the plan becomes a

Reality check for the cost-schedule-quality equilibrium

FUNCTION THREE: - PROJECT CONTROL

* Measuring Progress

* Communication

* Corrective Actions,

* Feedback

* Project Closure

a/ Generate an OTR (Open Task Report) for meeting 23/9/99

ID	Task	Responsibility	Planned Start	Actual Start	Planned Finish	Actual Finish
7	Task G4	Russell	23/9/99	23/9/99	31/9/99	???

b/ Create an Issues Log

- Problems or issues that the team does not have the power to resolve record and track ID, Status, Description, Assigned to, Date Identified, Last action/current status. c/ Create / keep a risks log.
Can provide a qualitative risk analysis. Here the single estimate of duration for each task is replaced by a number of possible duration's, probability's can be assigned to the most likely duration for each task. Project Management Software kicks in here when we are looking at the critical path.
d/ Progress Monitoring

Baseline v/s Actual on Gantt Chart

e/ Cash Flow Monitoring

1 Original Budget
2 Actual Cost to date
3 Planned cost to complete
4 Variance = 1 - (2 + 3)
5 Percentage Variance = 4/1 x 100 %

f/ Earned value analysis

1 Budget costs for work Scheduled BCWS
2 Budget costs for work performed BCWP
3 Actual costs for work performed ACWP
Schedule Variance = BCWP - BCWS
Cost Variance = BCWP - ACWP if negative cost over-run!
4 Estimated cost at Completion EC
5 Budgeted cost at Completion BC
6 Estimated Value at Completion EVAC = BC - EC

Progress Reporting Project bar chart % complete
Logical linked Barcharts
Activity lists (OTR)
Time scale Network diagram
Resource Histograms
Show original baseline (target) plan
Show a slippage report
Show MILESTONES
The Z-form.

Keep status reports short
Also use informal communication

1/ Progress measurement - identify problems early
Work to only proceed when the Specified Staff are present.

2/ Open Communication - keep all participants coordinated
Sponsors to be advised as work begins

3/ Corrective action - day to day responses to all obstacles and problems encountered - setup escalation procedures.

Project team to review progress and report any problem
issues to the relevant Management and Sponsors.
4/ Feedback to Stakeholders - timely information
Progress reports to be provided to all Stakeholders
Identified above - as milestones are reached in the Project Plan 5/ Project closure

Project Manager will report the success of the project to Stakeholders in E-mail. And sign off the task with the major Sponsors.

Sign OFF's

Authority to begin: - Director __________________ date_____
Project Completed: - Sponsor one ________________ date_____
Sponsor two ________________ date_____

Post Implementation Review

If required appoint an outside consultant to review the impact of the project on the Division, in particular the section ongoing support requirements.

Regards,

Russell Keil

Senior Research Analyst ITS Division

[Back] [MeRC] [I.T.S.Division] [Monash University]