Project Management Overview Dr Katia Passerini Dr

Project Management Overview © Dr. Katia Passerini, Dr. Asokan Anandarajan New Jersey Institute of Technology

Outline • Project Management Basics • The Life of A Project • • • Initiating Planning Executing Controlling Closing • Tools and Templates • Technologies • Readings & Web References Disclaimer: This is an overview module. We encourage learners to enroll in semester-long project management courses for a complete treatment of this topic.

Learning Objectives and Skills Students will • Be able to explain the Fundamentals of Project Mgt – Project budgets, timelines, specifications – Project lifecycle Skills developed Content-specific skills • Recognize and use Project Scheduling techniques – Milestones, Gantt, Precedence Diagrams, PERT and Critical Path • Familiarize with Project Control mechanisms – Examining variances, project plan and human resource controls Critical Thinking & Analytic skills – Financial Controls, cumulative project variance, earned value approach • Calculating estimates to complete (ETC) – Financial considerations • Top-down and bottom up cost estimating, opportunity costs, TVM, DCF, IRR, capital budgeting techniques Covered in a separate module Critical Thinking & Analytic skills

Learning Objectives and Skills Students will • Understand team management – Types of teams and team lifecycle Skills developed Covered in a separate module • Recognize the importance of Project documentation and evaluation Teamwork skills Communication skills – Mechanisms and tools for document management and project evaluation • Recognize available software for Team and Project Management – Sample PM software (Excel; MS Project; other opensource software) Technology skills

Project Management Key Resources • The Project Management Institute (PMI. org) – Certifications • Project Management Professional (PMP) • Certified Associate in PM (CAPM) • Program Management Professional (Pg. MP) • The Project Management Book of Knowledge 3. 0 • Frame, D. Managing Projects in Organizations Books & Materials (including CD-ROM)

Projects & Project Management • “A project is a temporary endeavor undertaken to create a unique product, service, or result”(PMBOK) – Characteristics: • It is directed at a specific result • It involves the coordinated undertaking of interrelated activities • It has a limited time duration • It is unique • Project Management – “Is the process of bringing a project to fruition in an effective manner” (Frame) • Generally means On time – (Frame) On budget Specifications/ SCOPE

Program Management • “A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. ” (PMBOK) • It supported by the Program Office (PO or Project Management Office - PMO) PROGRAM INFORMATION FLOW • • • Prioritisation Classification Selection PROJECTS

The Project Life Cycle Source: Department of Veterans Affairs, Project Management Guide

Different Life Cycles Source: GNSE Group • Gradual buildup • Slow wind-down • Hardware vs. software; L-T S-T; incremental progress major breakthrough; low high risk; small large; simple complex; single multiple; low tech state of the art

Project Management Knowledge Areas Source: Department of Veterans Affairs, Project Management Guide

Project Initiation 1. Involves starting up the project 2. Defining its purpose and scope – Entails clearly understanding needs • The needs will drive the definition of functional and technical requirements • Critical errors may occur in needs identification because: – Needs are dynamic – Customers do not know what they want • Until after they see it! – Multiple customers within an organization have conflicting needs 3. Justifying the project (biz case & feasibility study) 4. Forming the team 5. Setting up project office Source: Department of Veterans Affairs, Project Management Guide

Project Planning • This entails entering into a detailed project planning phase by focusing on multiple tasks and deliverables n uli g d e ch S sk Ri Cost Source: Adapted from Department of Veterans Affairs, Project Management Guide

Planning tools and techniques • Several planning tools and techniques are available • They are not always appropriate as you need to consider • Some tools / products offer integrated templates and solutions (see Method 123 consulting) – Level of project risk – User-friendliness of the planning tool – Costs associated with planning tools • In some cases, some tools are made easy to use by software vendors who develop templates for the general public (see Microsoft templates) Planning and control consume resources, so you must estimate your tolerance level. “For a project to succeed you must have good planning and control. However, good planning and control will not ensure the success of a project (Frame)” Total project costs = Task performance costs + Administration costs

Example of Planning Tools

Scheduling Tools • Work Breakdown structure (WBS) (a simple process chart? ) – Includes a list of related project-tasks • Gannt charts – Representation of project steps against a timeline • Milestones charts – Articulation of key project deliverables • Network diagrams – PERT (Program Evaluation and Review Technique) – CPM (Critical Path Method) – Etc. Simon Shutter, February 13, 2004 – post form Edward Tufte Website http: //www. edwardtufte. com/tufte/index

Work Breakdown Chart 1. 0 Automated Software System 1. 1 Prime Mission Product 1. 1. 1 Subsystem 1… (Specify Names) 1. 2 Platform Integration 1. 1. 2 PMP Application Software 1. 3 Systems Eng/ Program Mgt 1. 1. 3 PMP System Software 1. 4 System Test & Evaluation 1. 5 Training 1. 6 Data 1. 5. 1 Equipment 1. 5. 2 Services 1. 5. 3 Facilities Tabular Work Breakdown Source: MS Office templates 1. 7 Peculiar Support Equip 1. 8 Common Support Equip 1. 8. 1 Test & Measure Equip 1. 8. 2 Support & Handling Equip

GANNT Charts LINUX WINDOWS Source: Richard Steinnon, ZDNet (why Windows is less secure than Linux) post form Edward Tufte Website

Network Diagrams: PERT Charts PERT stands for Program Evaluation Review Technique, a methodology developed by the U. S. Navy in the 1950 s

Network Diagrams: CPM Method Similar to Activity on Arrow The CPM was developed in the 1950 s by Du. Pont, and was first used in missile-defense construction projects (biz equivalent of the PERT). • Step-by-step technique for process planning that defines critical and non-critical tasks with the goal of preventing time-frame problems and process bottlenecks (whatis. com) Source: http: //press. teleinteractive. net/yackity? cat=82

Cost Control Tools • Cost Identification & Management (planned vs actual) • Resources Identification & Management • Schedule Control Source: Microsoft Templates

Variance Control Financial Module Source: Microsoft Templates

Risk Control Tools • Risk could be mapped into dimensions such as: Value & Manageability – Allows defining the priority of intervention if mitigation tasks are required. Source: Booz Allen

Variables (example) • Value of Risk (V. R. ) The Value of Risk is the result of the product of Impact and Probability (V. R. =I*P) – – – – – Impact of Risk (I) The Impact of the Risk indicates the relationship between the Risk and the Project Activities Impact of Risk (I) Value Description Low (L) 1 Impact in only one activity Medium (M) 2 Impact on more activities High (A) 3 Impact on activities of the Critical Path – – – • Value of Risk (V. R. ) Low (L) Medium (M) High (A) Probability of Risk (P) The Probability of Risk indicates the possibility that the problem effectively takes place Probability of Risk (P) Value Description Low (L) 1 Low Probability Medium (M) 2 Medium Probability High (A) 3 High Probability Value 1 -3 4 -5 6 -9 Description The level is not critical Specific monitoring and actions are required The risk requires maximum priority Manageability of Risk (M. R. ) The Manageability of the Risk indicates the possibility of monitoring the possible problem and of effectively operate with the defined mitigation actions. – – Manageability of Risk (M. R. ) Value Low (L) Medium (M) applicable High (A) applicable Description 3 It is not possible to guarantee the problem monitoring 2 The risk is partially under control and actions are partially 1 The risk is under control and the actions are totally Source: Booz Allen

Project Execution Includes i. e. • Develop Team • Select Sellers • Perform Quality Assurance • Contract administration Source: Department of Veterans Affairs, Project Management Guide

Project Control • Involves the regular review of metrics &report status to identify variances from the baseline. Source: Department of Veterans Affairs, Project Management Guide

Project Control Tools: Driving Board • Project Reporting and Control Tools – Driving Board: to present periodically the status of the project to the management, including the main performance indicators (status, tendency, times, costs and the main issues) Source: Booz Allen

Document Management Tools • The ' Project Documentation Management ' is a procedure that defines how to describe/code and store the documentation and a series of examples of forms/documents typical for every project (Meeting Minute, Team Schedule, Detail and Functional Specification, User Requirement, Communication). Source: Booz Allen

Meetings Management – Progress Meeting with specific actions to be performed • • Defines date, participants and arguments and writing the minutes. The Project Manager checks if the agreed actions are performed on time and with the expected result. Source: Booz Allen

Change Management • An aspect of project control involves managing change • This can be accomplished, for example, by defining clear procedures to keep track of change requests – (see the change request template in the next slide) • If the requested change exceeds certain budget limits or has major implications on time and resources required to manage the project, a formal group of reviewers may be called upon to prioritize change – This group is called the change control board (CCB) • The CCB takes the responsibility for denying change requests, which is particularly useful in case of “pushy” clients who may influence the project manager.

Change Requests Tools • The 'Change Request Management' consists in a procedure that defines how to manage issues and scope change requests Source: Booz Allen

Project Closing • Completion and closeout of any contractual agreements with suppliers or providers • Formalizing customer acceptance • Closeout of any financial matters • Preparation of the project’s final performance report • Conducting a project review • Documenting lessons learned • Completing, collecting and archiving project records • Celebrating project success. Source: Department of Veterans Affairs, Project Management Guide

Project Management Software • Proprietary • – MS Project • – Gantt. Project • Gantt chart based project scheduling & mgt tool http: //office. microsoft. com/en-us/project – Primavera • http: //ganttproject. biz/ • http: //www. primavera. com/ – Open Workbench • http: //www. openworkbench. org/ – Omni Group – Omni. Plan (for Mac) – Achievo • http: //www. achievo. org/ • http: //www. omnigroup. com/ – Planning force • http: //www. planningforce. com/ – Artemis • http: //www. aisc. com/Product/1#Progr am%20 and%20 Project%20 Management Open Source • Web-based (hosted) – Ace PM • http: //www. aceproject. com/ – Inventix • http: //www. inventx. com/

Readings & Web References • Frame, D. (1996) Managing Projects in Organizations • PMI, PMBOK 3. 0 • Critical Path Method tutor – http: //www. cpmtutor. com/index. html • Review of PM Software – http: //www. klambauer. info/pms. pdf • Other hyperlinks listed in the slides