Project Management 102

The How To of Managing a Project

What we will cover:

Cookbook approach to managing a project Resources identification Timeline constraints Management of managers and vendors MS. Project vs. paper tracking Risk management Contract negotiations

Project Management 101 review. What is a project?

A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite ending. Unique means that the product or service is different in some distinguishing way from all other products or services.
PMBOK 2000 edition

Why PM as a profession?
92% of all projects fail (Standish Research Group) PMI maintains a library of information and publishes the Guide to the Project Management Body of Knowledge (PMBOK), the standard text on project management.

What is involved in managing a successful project?

Project Triple Constraints

Project Triple Constraints

Costs

Project Triple Constraints

Costs Time

Project Triple Constraints

Costs Time

Statement of Work (SCOPE)

Project Triple Constraints

Costs Quality Statement of Work (SCOPE) Time

Project Triple Constraints

Costs Quality Statement of Work (SCOPE) Customer Satisfaction Time

How to practically approach a project - Cookbook Approach

Projects can be approached like baking a cake.

Chocolate CakeWhat it takes:

Clear Objectives Ingredients Equipment Manpower A Plan A manager of managers (Project Manager)

Chocolate Cake
Making a chocolate cake requires all the elements of a project: Processes (What to do) Knowledge (How to do)

Process groups of a project:

(The What to do of a project)
Initiation Planning Execution Controlling Closing Called the Life Cycle of a project

Project Life Cycle

..\John Sheely\life cycle.JPG

Knowledge areas:
(The How to do of a project)
Project Scope Management Project Time Management Project Cost Management Project Quality Management Project HR Management Project Communications Management Project Risk Management Project Procurement Management Project Integration Management

Work Breakdown Structure

Def. A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives. It organizes and defines the total scope of the project. Each descending level represents an increasingly detached definition of the project work. The decomposition consists of work packages.
(PMBOK 2000)

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Serve and clean up

How many to serve?

Who will buy materials

Arrange for all mixing bowls

Staff to serve

Date and time?

Who will cook?

Schedule oven(s)

Assign serving plates

Place to be served?

Who will serve?

Purchase ingredents

Cleanup team

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Risk analysis

Work Breakdown Structure

Work Packages

Plan B?

Work breakdown structure.

Def:Deliverable oriented grouping of project components that organizes and defines the total scope of the project. Find historical data, dont reinvent the wheel. Locate managers and ask them to estimate their labor requirements, constraints and risks. Dont you make these decisions; let them.

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Serve and clean up

How many to serve?

Who will buy materials

Arrange for all mixing bowls

Staff to serve

Date and time?

Who will cook?

Schedule oven(s)

Assign serving plates

Place to be served?

Who will serve?

Purchase ingredents

Cleanup team

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Risk analysis

Work Breakdown Structure

Work Packages

Plan B?

Event sequencing

Placing work packages in logical sequential order. Create a critical path.

Risk Management: The Great What If ?

Take advantage of historical data. History repeats itself. Have vendors/managers establish worse case scenarios. Have them grade each scenario by a common scale. Have a plan B for each scenario. Establish a trigger point for when plan B is initiated. In large complex projects, have consultants do this.

Risk grading matrix

Keeping track of project activity

Paper system
90 Templates (EPO templates ww.tenstepstore.com)

Software
MS Project

Paper forms from EPO ww.tenstepstore.com

Business Case

Project Charter

Work Packages WBS

Activity Estimating

Project Document Distribution Plan

Change Request
Procedure to approve modifying scope, budget or schedule is essential.

Stakeholder Identification

Human Resources Plan

Risk Assessment Plan

Project Status Reporting

Project Tracking Software

Microsoft Project. Uses Project Management Institutes PMBOK as its standard. Excellent tool IF used properly. Warning! It is a tool, not an end in itself.

Gantt Chart
ID 1 2 3 4 5 6 7 8 9 10 11 12 13 Task Name

Chocolate Cake Project

Establish scope of work and attain funding Milestone Locate v arious managers Establish requirements Order ingredients Receiv e and store materials milestone Mix, bake and decorate cake Serv e and cleanup Project closeout Risk analy sis Train staf f

5, '06 Duration M T W T 0 day s 5 day s 0 day s 5 day s 3 day s 1 day 2 day s 0 day s 3 day s 0.33 day s 1 day 2 day s 1 day

Mar 12, '06 S S M T W T

Mar 19, '06 S S M T W T

Mar 26, '06 S M T W T

Apr 2, '06 S M T W T

custo mer,Management,project man ag er 3/8 project manager manager,ch ief Purchasing Mgr Warehousing 3/22

chief,coo k 1,coo k 2,cook 3,cook 4,cook 200 servers,20 coordinatiors,matre d servers,matre d',20 coord inators project manager Purchasing Mgr 20 coordinators

Pert Chart
ChocolateCakeProject 1 0 days Thu 2/9/06 Thu 2/9/06

Establishscope of work and attain f unding 2 Fri 3/3/06 5 days Thu 3/9/06

Locate various managers 3 5 days

Establishrequirements 4 3 days

Order ingredients 5 1 day

Receiveand store materials 6 2 days Wed 3/22/06 Thu 3/23/06

Mix, bake and decorate cake 7 2 days Fri 3/24/06 Sun 3/26/06

Serve and cleanup 8 0.33 days

Fri 3/10/06 Wed 3/15/06

Thu 3/16/06 Mon 3/20/06

Tue 3/21/06 Tue 3/21/06

Mon 3/27/06 Mon 3/27/06

Project closeout 9 1 day

Riskanalysis 10 2 days

Train staf f 11 1 day

Mon 3/27/06 Tue 3/28/06

Thu 3/16/06 Fri 3/17/06

Sun 3/26/06 Sun 3/26/06

Resources
ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Resource Name Management customer project manager Kitchen staff manager chief cook 1 cook 2 cook 3 cook 4 cook 5 cook 6 cook 7 cook 8 Serv ers matre d' 20 coordinatiors 200 serv ers Cleanup Purchasing Mgr Wearhousing Initials M JM JBV K m CF c1 c2 c3 c4 c5 c6 c7 c8 S Matradee coordinators Serv ers Cleanup P W Group MGT MGT MGT Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen serv ers serv ers serv ers serv ers serv ers Purchasing Purchasing Max. Units 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Std. Rate $0.00/hr $0.00/hr $300.00/hr $0.00/hr $50.00/hr $40.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $0.00/hr $40.00/hr $300.00/hr $2,000.00/hr $300.00/hr $40.00/hr $200.00/hr Ov t. Rate $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr Cost/Use $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Accrue At Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Base Calendar Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Code

Managing Managers
Project managers must actively manage other managers in order to have a successful project. This is largely done by:
Locating stakeholders Developing an effective communications plan Tracking/documenting all project activity Understanding ALL contracts Managing changes

Contracts and RFPs

Generating Request for Proposals (RFP)

Involve all potential stakeholders in writing RFP. No hidden agendas. RFP Must align with companys policy/objectives. Evaluate RFP using objective and subjective grading system:
Objective=Dollar amount for work. Look for cost of additions or out of scope work. Subjective scale of 10 to +10 on each contract provision as to if provision is in favor of the company or vendor.

Present summary to project stakeholders for review. Present to sponsor for signing. Never sign anything. Document everything.

Contract negotiations
Project Managers must understand ALL contracts dealing with the project. Look for in-place vendor agreements. Do not count on the Legal Department to have your best interest at heart. Read all contracts Yourself!!! Get clarification from Legal on all issues. There is safety in a multitude of counselors. Aim highland high Document everything. Sign nothing!!!!

Contract additions
Items to include in any contract, if possible: Permission to interview rank and file workers Third party inspectors/auditors Insurance (risk mitigation) Penalties for project overages Rewards for project performance Plan for the best, but prepare for the worst.

If a project is going badly

Like with cancer, early treatment is the key. People cause problems; people fix problems. Involve as many stakeholders and front line workers as you can in the solution. Initiate a brain storming approach to the problems. Hide nothing; report everything. Cut losses short quickly. Initiate plan B in risk analysis. Consider hiring a certified PM to consult.

If you are being set up as the scapegoat for a failed project.

In some companies, failed projects require a blood sacrifice. Meet with the highest executive you can. Prepare report of project failure and reasons why in a single page document. Give them a verbal debriefing. Ask if your job is at risk. Ask HR to include this report in your personnel file. Start looking for another job.

Summary
Project Management is Proactive. Project Managers create the plan and then work the plan. Project Managers solve problems before they occur. Initiating and tracking tools are essential. Managing change is critical. If all else fails, hire me to fix it! J. Barry Vanek, PMP 281 481 6996