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PROJECT MANAGEMENT LOGIC AND PMBOK PMBOK STRUCTURE
Vladimir Liberzon
Spider Management Technologies Moscow PMI Chapter
E-mail: spider@mail.cnt.ru
PMBOK STRUCTURE
People who lack sufficient practical experience in Project Management meet with difficulties when they try to get a clear picture of PM logic from A Guideline to the PMBOK . Novice managers often try to divide responsibilities among PM team members in accordance with knowledge areas (Time manager, Cost manager, Quality manager, etc.).
V.Liberzon /Spider Management Technologies/ E-mail: spider@mail.cnt.ru 2
PMBOK STRUCTURE
Most PM knowledge areas are closely interrelated and can hardly be separated from each other. For instance, one cannot change project schedule without affecting project cost. Besides, it is impossible to control time or cost (success indicators) directly but only through resources or technologies.
V.Liberzon /Spider Management Technologies/ E-mail: spider@mail.cnt.ru
PMBOK STRUCTURE
Some of knowledge areas are project success indicators (scope, time, cost and quality), others are management tools (human resources, communications, risks, procurement). You can analyze time or cost performance and then make corrective moves using resources or technologies.
PMBOK STRUCTURE
A Guideline to the PMBOK can be successfully applied to projects only at those levels where details are not important. But it does not provide enough fine tools for more precise practical project management for which the resource management is the core issue.
PMBOK STRUCTURE
I believe that ideological content of A Guideline to the PMBOK can be reorganized in a more instructive, processoriented way. I think that it is necessary to recognize six main PM processes instead of five described in a Guideline to the PMBOK . The additional process is Analysis. V.Liberzon /Spider
Management Technologies/ E-mail: spider@mail.cnt.ru 6
PM PROCESSES
INITIATION
PLANNING
CONTROL
PROJECT MANAGEMENT PROCESSES

ANALYSIS
EXECUTION
CLOSING V.Liberzon /Spider Management Technologies/ E-mail: spider@mail.cnt.ru
PM KNOWLEDGE AREAS & PM LOGIC

PM functions (knowledge areas) activated in each of these processes vary significantly. Description of PM ideology could not be complete without including Resource management as a core separate entity. It is necessary to connect PMBOK with the logic of PM processes. The PM logic used in the majority of projects is shown in the next slide.
PM LOGIC
OBJECTIVES
PROJECT RESULTS SCOPE DEFINITION SUCCESS CRITERIA CONSTRAINTS
SCOPE
CRITERIA
COST
MAIN TOOLS
TIME
QUALITY
SCOPE
RESOURCES Contracts Organization
TECHNOLOGIES Communications Human Resources
INTERMEDIATE TOOLS
RISK ANALYSIS
DIFFERENCE BETWEEN APPROACHES

Russian way of planning projects (especially in construction industry) is frequently based on federal, local, industrial or corporate norms and standards. These norms usually refer to resource productivity, cost and material per unit of activity volume (volume of work to be done). Usage of these norms affects the way of planning project activities. V.Liberzon /Spider
DIFFERENCE BETWEEN APPROACHES

Activity Duration Estimating in A Guideline to the PMBOK doesn t employ this approach. Actually A Guideline to the PMBOK does not even employ the concept of activity volumes. Estimation of activity volumes is associated with resource planning, cost estimation, staff acquisition, solicitation planning, schedule development, cost budgeting and project plan development. V.Liberzon /Spider
PROJECT SCHEDULE DEVELOPMENT

WBS LIST OF PROJECT FRAGNETS AND ACTIVITIES FRAGNET AND ACTIVITY VOLUMES OR DURATIONS DATABASE A: ACTIVITY TYPES MATERIAL REQUIREMENTS PER UNIT OF VOLUME ACTIVITY LINKS DATABASE E: ASSIGNMENT TYPES - FIXED MATERIAL REQUIREMENTS PER UNIT OF VOLUME LIBRARY OF TYPICAL PROJECT FRAGNETS FIXED ACTIVITY MATERIAL REQUIREMENTS ORGANIZATIONAL BREAKDOWN STRUCTURE LIST AND QUANTITY OF PROJECT RESOURCES AND MATERIALS RESOURCE ASSIGNMENTS DATABASE B: ASSIGNMENT TYPES - RESOURCE PRODUCTIVITIES DATABASE D: RESOURCE TYPES MATERIAL REQUIREMENTS PER WORK HOUR
PROJECT SCHEDULE
FIXED ASSIGNMENT MATERIAL REQUIREMENTS DATABASE C: ASSIGNMENT TYPES RESOURCE PERCENT ALLOCATED V.Liberzon /Spider
Management Technologies/ E-mail: spider@mail.cnt.ru
12
MAIN DIFFERENCE BETWEEN APPROACHES

The main difference between the described approaches to the Project Schedule Development is as follows: if you use activity volume and resource productivity as input into planning process, then activity duration and cost may be estimated only after assigned resources have been chosen and project schedule calculated.
ACTIVITY COST COMPONENTS

ACTIVITY COST
7 All Assignments FIXED ACTIVITY MATERIAL COSTS 7 All Materials {MATERIAL UNIT COST} * {FIXED ACTIVITY MATERIAL REQUIREMENTS} RESOURCE COSTS FIXED ASSIGNMENT MATERIAL COSTS FIXED ASSIGNMENT COST FIXED ACTIVITY COST ASSIGNMENT COSTS
7 All Resources {RESOURCE RATE} * {ASSIGNMENT DURATION}
7 All Materials
7 All Materials {MATERIAL UNIT COST} * {FIXED ASSIGNMENT MATERIAL REQUIREMENTS}
{MATERIAL REQUIREMENT PER RESOURCE WORK HOUR} * {MATERIAL UNIT COST} * {ASSIGNMENT DURATION} V.Liberzon /Spider Management Technologies/ E-mail: spider@mail.cnt.ru
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RESOURCE ANALYSIS
Resource analysis is essential part of project execution analysis. Monitoring of the actual resource performance permits to employ methods of adaptive forecasting to predict trends and future resource productivity and cost. Usage of project resources varies at different phases and forecasting that takes these differences into consideration is considerably more accurate than the methods of Earned Value Analysis. V.Liberzon /Spider
RISK ANALYSIS
Methods of Risk analysis (PERT, Monte Carlo) should include estimations and simulations of activity volume, resource productivity, resource availability, etc. (not only duration and cost as in A Guideline to the PMBOK ). Other sections of A Guideline to the PMBOK also have to be revised if low level Resource management processes are to be considered.
RECOMMENDATIONS

Introduction of Resource management into A Guideline to the PMBOK calls for revision of ideological content and structure of the latter. It is vital to understand that some project parameters are indicative, while the others are the tools for project control.
RECOMMENDATIONS

Analyzing project performance we measure and analyze the indicative components for making decisions on corrective moves, while the project control tools are used for improving project performance. It would be helpful to divide Control processes into two process groups - Analysis and Control.
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BENEFITS
Better understanding of PM logic and PM processes. Establishing technological standards for low level Project Management. Developing Project Management V.Liberzon /Spider Technological Guideline. Management Technologies/
E-mail: spider@mail.cnt.ru 19

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PROJECT MANAGEMENT LOGIC AND PMBOK PMBOK STRUCTURE

PROJECT MANAGEMENT PROCESSES

CLOSING V.Liberzon /Spider Management Technologies/ E-mail: spider@mail.cnt.ru

PM KNOWLEDGE AREAS & PM LOGIC

PROJECT RESULTS SCOPE DEFINITION SUCCESS CRITERIA CONSTRAINTS

RESOURCES Contracts Organization

TECHNOLOGIES Communications Human Resources

DIFFERENCE BETWEEN APPROACHES

DIFFERENCE BETWEEN APPROACHES

PROJECT SCHEDULE DEVELOPMENT

Management Technologies/ E-mail: spider@mail.cnt.ru

MAIN DIFFERENCE BETWEEN APPROACHES

ACTIVITY COST COMPONENTS

7 All Resources {RESOURCE RATE} * {ASSIGNMENT DURATION}

7 All Materials {MATERIAL UNIT COST} * {FIXED ASSIGNMENT MATERIAL REQUIREMENTS}

V.Liberzon /Spider Management Technologies/ E-mail: spider@mail.cnt.ru

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