Project Management Distributed by justEtc |
Overview of Project Management[Source Internet]
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What is a project?
A project is an activity that using plans and processes creates a product, a service, or a result. A product is a physical product like a TV,
a service is like the Internet, a website; result [analytical model, proof of something] is the knowledge based outcome of a research
project. Project is a continuous process that takes an idea/concept, targets an outcome, plans how to get the outcome, uses several
processes/activities to gain the outcome. Applies monitoring and controlling to get the desired outcome timely.
Difference between projects and operations?
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Operation is not a project, operations are done to keep something/an organization going. For a University, taking classes, conducting
researches are operations. For a food shop, selling foods is an operation. But the process to create a University or a food shop is a
project. Software development process is mostly project oriented.
Project Phases
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A project has some definite phases such as:
Initiating
Planning
executing
Monitoring
closing
Initiate: Start a project
Plan: Plan how to achieve the goal. Plan regarding execution and monitoring.
Execute: Execute the plans to achieve the goal.
Monitor: Monitor the progress of the project. Modify plans and also modify execution.
Close: Close with project when goal is achieved
Project Knowledge Area
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Each project needs to use some knowledge and skills to attain it's goals. Projects use processes to get the result. Each process may address
one aspect of the project. Each process requires raw input, tool and techniques and produces some output. Each of the processes may require
knowledge in one area. Common project knowledge areas are:
1. Project scope management
2. Project time management
3. Project cost management
4. Project human resource management
5. Project procurement management
6. Project risk management
7. Project quality management
8. Project integration management
9. Project communication management
How Projects are affected by the style of the organization
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1. Functional Organization:
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Each functional department is a separate entity. Projects are done usually within a functional unit independent of other units. If the help
of other units is required, it is done through the hierarchy of the functional managers. Usually an unit has a manager. Based on the size,
each unit may have multiple managers with hierarchy.
Such organization may not carry out many projects, project managers may not be so important, project managers may be just part-time with
little/no authority.
2. Projected Organization:
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Organized around projects. They mostly do projects. Most resources are invested for projects. Here, project managers have the supreme
authority and usually are full time.
3. Matrix Organization:
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Just a mix of the functional and projected organizations. The matrix may be strong in projected area and weak in functional area or vice
versa.
Terms you need to know in Project Management
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Project
Organization
Project stakeholder
Process
Knowledge Area
Performing organization
Project management
Program
Program Management
Program Management Office
Project Knowledge Area-Sub Areas
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1. Project scope management
Scope Plan
Scope definition
Work breakdown structure
Scope control
Scope verification
2. Project time management
Activity definition
Activity sequencing
Activity resource estimating
Activity duration
Schedule development
Schedule control
3. Project cost management
Cost estimate
Cost budgeting
Cost control
4. Project human resource management
Planning human resources
Acquiring the project team
Developing the project team
Managing the project team
5. Project procurement management
Manage acquiring products
6. Project risk management
Plan the risk management
Identify the risks
Perform risk analysis
Develop a risk resource plan
Monitor and control risks
7. Project quality management
Quality planning
Quality assurance
Quality control
8. Project integration management
Developing the project management plan
Directing and managing project execution
Monitoring and controlling the project work
closing the project
9. Project communication management
Plan communication
Distribute needed information to the stakeholders
Report project performance and status
Communicate to resolve issues among the stakeholders
Initiating Projects
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How a project starts??
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Projects are done for one of the following three reasons
Business Requirements: Example: The government requires airline companies to implement safety-management systems. A company needs to find out the success of their ecommerce web-site.
Opportunities:To take advantage of an opportunity like technology breakthrough. Example: many projects may be planned targeting iPhone.
Problem: To reduce/eliminate a problem. Airport x faces 2/3 accidents every year, the airport authority may wish to perform a project to identify causes and develop solutions.
How a project is selected?
Project Selection:
A particular project may have different alternative solutions. A company may have multiple project plans and they need to select one of them.
But How?
1. Scoring Model: Identify some matrix to find which project strategy is better or which project will be more profitable. Assign values for these parameters and select which one provides greater value.
2. Benefit contribution: Use cost benefit analysis, short term and long term cost benefit analysis.
3. Economic models:
Benefit Cost Ratio
Cash Flow
Internal Return Rate
Present Value and Net Present Value
Opportunity Cost
Discounted Cash Flow
Return on Investment
Will a project succeed?
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There are many mathematical models to justify/predict the success of a project.
Do we need to consider project stakeholders?
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Yes. Because the project may benefit some people and may cause dis-advantages to some people.
Project managers need to manage and convince both of the groups.
How a project is formalized?
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A project charter is developed to present the business needs and the outcome. It is just a document that is reviewed before (or for)
project authorization.
Input to Developing the project Charter
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Contract
Statement of Work
Enterprise environmental factors
Organizational process assets
Tools for Developing the project Charter
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Project Selection Methods
Project Management Methodology
Project management information systems
Expert Judgement
Output of Developing the project Charter
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Project Justification
Project description
Project requirements
Assumptions
High level schedule and milestones
Budget
Proposed project manager
Preliminary Project Scope Statement
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After a project charter is authorized. A Preliminary Project Scope Statement may need to be developed.
It may be discussed with the project stakeholders to facilitate project success.
Input to Developing Project Scope Statement
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Similar to the inputs to Developing the project Charter
Tools and Techniques
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Project Management Methodology
Project Management Information System
Preliminary Project Scope Statement lists:
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Objectives
The product
Requirements of the product
Project boundaries
Initial work breakdown structure
Schedule
Team
Risks
Cost estimate
Some Topics on Project Communication Management
Professional Responsibilities for Project Managers
Simply: Handle any issue directly, ethically, and legally. Be open and upfront. Solve issues quickly, openly,fairly.
Be direct to solve an issue rather than ignoring it.
Professional Responsibility deals with:
1. Responsibilities to the profession
2. Responsibilities to the customers and the public
Responsibilities to the profession:
1. Compliance with all organizational rules
2. Advancement of the profession
Responsibilities to the customers and the public:
1. Responsibility to provide accurate and truthful information/representation to the public
2. Maintain and satisfy the responsibilities of professional services
3. Maintain and respect the confidentiality and sensitivity of information
4. Conflict of interest should not affect customers badly
5. Do not take bribes
Professional Responsibility can be categorized in five areas such as:
Integrity and professionalism
Contribute to knowledgebase
Improve individual competence
Balance stakeholders interest
Interact with Team and stakeholders
Integrity and professionalism
shortly:Always do the right thing.
Laws:Comply with all rules. Comply with the rules of the city/state/country where the project is taking place. If
the project deals with any other country - it may be needed to comply with the rules of that country[before that
knowing the legal rules of the other country is important].
Policies:Comply with organizational policies
Integrity:Stick with high moral principles
Professionalism:
--Processes: Maintain and execute the processes required for the project. PMI suggests 44 processes. Following these
processes reduces risk and improves time, cost,efficiency. Carry out the processes required accordingly even the
customers want a shortcut way.
--Respect:
show respect to others
PMI strongly advocates multiculturalism and encourages to be respectful to other cultures
Maintaining confidentiality of client information is also important.
Contribute to knowledgebase
--Share the experince with PMI and with other professionals in the field
--PMI encourages to teach, publish, write, disseminate the PMI aspect of Project Management
Improve individual competence
--PMI encourages all professionals(PMPs) in this field to improve them and to gain more knowledge continuously.
--Know your professional weaknesses and try to improve them
Balance Stakeholder Interests
Interests of stakeholders may collide.
Be fair, open, direct, ethical in solving the conflicts
-Resolve the conflict in favor of the customer interest[benefit]
Interact with Team and stakeholders
--Communication should be open
--Cultural differences should be respected
--Laziness and negligence should not be tolerated
Social-Economic-Environmental-Sustainability
-If a project makes the society suffer, creates an environmental problem, the project manager should disclose the
information and should try to avoid such situations. If needed the project manager should resign the project.
Some topics on Project Human Resource Management that Project Managers Should Understand understand.
Maslow's Hierarchy of Needs:
Basic theory of motivation. Five levels of motivation:
Lower needs
1. Physiological - food, clothing, shelter
2. Security - freedom from fear, job protection, safety
3. Acceptance - being a part of the team
Higher Needs
4. Esteem - feeling of importance
5.Self actualization - Live and work with full potential
McGregor's Theory X and Theory Y
Applies to management approach
X: People are selfish, unmotivated, dislike work, must be forced to work, constant supervision required
Y: People are naturally motivated to work, team members need very little external supervision required.
Assembly line organizations may benefit from X type of managers.
Contingency Theory:
Managers may be task oriented or relationship oriented. In stressful situations task-oriented managers become more successful. While in calm situations relationship-oriented managers perform better.
Herzberg's Motivation-Hygiene Theory
Some factors are not directly motivating but their absence will make some people unsatisfied.
Hygiene Factors:
Supervision
Work Condition
Relationship with co-workers
Paycheck
Company Policy
Motivational Factors:
Achievement
Recognition
Work
Responsibility
Growth
Expectancy Theory:
Anticipation of a reward or good outcome is a motivation. But the motivation only works if the target is achievable/practical. If a person is told if he can sale 100,000 in 4 weeks, he will get 10000$ as bonus. The person will feel motivated only if he can think it is possible but if he feels it is impossible, no motivation will be there.
Achievement Theory:
People need achievement, power, and affiliation.
achievement: Desire to accomplish something
Power: Desire to influence the behavior of others
Affiliation: Desire to belong to a group
Forms of Power
The project manager may enjoy the following forms of power
Reward: reward a team member
Expert: When the manager is an expert, people will listen to him[best form of power]
Legitimate: Power due to the position.
Referent: Example: A manager very close to the CEO may feel/enjoy higher power than he really has.
Punishment: worst type
Best Form: Reward and Expert
Conflict Resolution:
Methods of Conflict Resolution
Problem-solving: Solve the problem (root cause of the problem)
Compromise
Forcing: never good in the long run
Smoothing:not recommended. Does not solve the issue
Withdrawl: ignore the issue. not a resolution
Constructive Team Roles
Initiators
Information seekers
Information givers: not confidential information
Encouragers:
Clarifiers:
Harmonizers:
Summarizers:
Gate Keepers:
[note: My articles are just a note/reminder to me. I keep them here so that I can refresh my memory whenever required. The artcles may be weak as a writing component. Thanks.]
Project Time Management
Project time management process
1. Define Activities Required
2. Sequence Activities
3. Estimate Resources for the Activities
4. Calculate Duration of the Activities
5. Develop Schedule
6. Control Schedule
Process:
Define Activities Required: List all the activities, functionalities, modules, components you want to develop. When the project scope is defined, use it to decompose the work into activity list. Work breakdown structure will be useful at this stage. List what modules, components the project will handle. List all the functionalities/activities that are required for each of the modules/components. For each activity, define properties, assumptions, quality requirements, and output requirements.
Input: Project scope statement, Work breakdown structure
Output: Project activities [activity list], Activity attributes, milestone list, requested changes
Tools:
Decomposition:
Decompose work into smaller activities. Project team or the functional manager may be of good use here.
Templates: The Company may have them, other project may have them, and some standards like IEEE may define some templates
Rolling Wave Planning: Many later aspects of the project may not be understood at the beginning. Hence, initially decompose as much as possible and later with the progress, improve the decomposition
Expert Judgment: Take help of other experts in the field. Project team or the functional manager may be of good use here.
Sequence Activities: Find the order/sequence of the activities. Some activities may be dependent on the completion of another activity. Some modules may be dependent on the completion of another module. Sometimes, it may be the case; some activities/modules are not strictly dependent on another activity but may be preferable to start after another activity/module [Best Practice]. Note: module refers to a complete unit/component where each module may have many activities. In this step, you need to find the sequence and then create a project network diagram.
Input: Mostly from the first step.
Project scope statement,
Activity list,
Activity Attributes
Milestone List
Approved change requests
Tools:
Precedence Diagram Method (PDM): Activities are represented by the nodes where arrows represent the dependencies that exist between the activities.
Arrow Diagramming Method (ADM): Activities are represented using arrows where nodes represent the connection points. We can create dummy activities with dotted arrows [not possible in pdm].
Graphical Evaluative Review Technique (GERT): Like the PDM diagrams. Additionally, you can show dependencies among activities. Also, you can represent repeated processes.
Network Templates: Sub networks of another project in the organization may be useful.
Dependency Determination: like mandatory dependencies [you can not break the dependency], discretionary dependencies [best practices, the dependency is not strict], and external dependencies [out of the scope of the project].
Apply leads and lags:
Output: Project schedule network diagram.
3rd: Then you need to identify the resource requirements of each activity.
4th: Estimate duration for each activity. It may be experience based, practical examples based, another completed project based, mathematical analysis based.
5th: Develop the schedule; Project sequencing and time estimating will directly affect this. Several projects may require the same resource. Hence, the schedule should check when the resource is available and schedule accordingly.
6th: Monitor how the schedule is performing.
Project Schedule Development
In this phase, project duration, project finish date, schedules of the activities are determined.
Input:
Activity List
Activity Attributes
Project Schedule Network Diagrams
Activity Duration
Activity Resource Requirements
Resource Calendars
Tools:
Critical Path Model (CPM)
CPM is extensively used to determine the project duration. CPM method also helps to identify how much individual activities can slip without affecting the total duration of the project.
Crashing and Fast tracking
Crashing tries to add more resources into the project to ensure that the project will be finished on time or early.
[Note: Fred's theory: Adding resources to an already delayed project will/may increase the delay]
Fast tracking tries to run multiple activities in parallel to ensure that the project will be finished on time or early.
Resource Leveling:
Apply the resource availability [and quantity] to the project duration. It may increase the project duration when sufficient resource [in quantity or at the right time] is not available.
Critical Chain Method:
It is almost similar to the Critical Path Method. Critical path method uses a concept called float. CPM first calculates the total duration and then calculates float [how much it can slip] for each activity. CPM ensures that no activity exceeds its float. In Critical Chain Method latest possible start and latest possible finish dates are determined for each activity. Afterwards, buffers are added between activities. The goal is never try to exceed the buffer.
Company Calendar
Company Calendars may be used to check the company holidays, or events that may affect the project duration/schedule.
Adjusting leads and lags.
Using CPM Model [steps]
1. CPM uses the arrow diagram method [activities and duration on arrows, nodes as connectors] to represent project activities and duration.
2. After building the diagram find the critical path [the path that takes the longest time from start to finish considering all alternatives].
3. Calculate float: how much an activity can slip without affecting the critical path.
4. Calculate Early start: The earliest date an activity can start considering the dependencies.
5. Calculate Early finish: Early start date + duration - 1
6. Calculate Late Start: What is the last date an activity can start considering the dependencies
7. Calculate Late Finish: Late start date + duration - 1
8. Calculate Free Float: Amount of time an activity can be delayed without affecting the dependent activities' early start date
9. Calculate Negative Float: Occurs when an activity's start date occurs before a preceding activity's finish date
When you have calculated all the values, the values will help greatly in the schedule control.
Some Concepts in Project Cost Management
Costing Involves:
1. cost to purchase, develop i.e. to have the system
2. Operation cost
3. Cost to disposal
Value Engineering:
Get the most from a project
--decrease cost
--increase value
--increase quality
--shorten schedule
--keep project scope not reduced
COST ESTIMATING
When cost estimation is done?
After project scope is defined, and work breakdown structure is created.
But may be performed again and again over the total life cycle
Tools
Analogous Estimating
Based on the similar actual projects
Bottom up estimating:
Estimate cost for each activity and sum them - time consuming
Parametric Estimating
1 mile road construction needs $400,000$. So 10 miles will require 10*400,000$.
Reserve Analysis
A buffer cost against slippage on the project
Cost of Quality
Costs required in order to get quality
Output
Activity Cost Estimates
COST BUDGETING
Maps costs and dates. How much will be spent on what and when. Also termed Cost Baseline
When cost budgeting is done?
After activities are defined and scheduled. Activity durations and resource requirements are also estimated.
Tools
Cost Aggregation
Activity level costs should be aggregated to the work level where they will be measured, managed, and controlled.
Reserve Analysis
Financial reserve to protect projects against cost overrun
Parametric Estimating
Use simple straight forward formulas
Funding Limit Reconciliation
Comply with the project funding. many times funds are allocated even before the scope is defined.
Output
Cost Baseline
Project Funding requirements
COST CONTROL
Monitoring, controlling, adjusting costs
When it is performed?
Over the whole life cycle. Bi-weekly or monthly analysis may be done
Tools
Cost Change Control System
How the cost baseline may be changed
Performance Measurement Analysis
Calculate Earned Value, Planned Value, Actual Cost, Estimate to complete, Estimate at Completion, Cost Performance Index
and similar to measure performance and control costs based on these
Forecasting
Use current and previous cost values to estimate future costs
Variance Management
Output
Cost Estimate Update
Cost Baseline Update
Performance Measurement Analysis will be discussed later
Project Cost Management - Part 2
Terms:
Earned Value: The value the spent money brought to the project. Just like double entry accounting system: for every debit to an account there is a corresponding credit.
Budgeted at Completion (BAC): How much was originally planned for this project.
Planned Value (PV): Calculates how much of the project should be complete at a certain date according to the plan. Planned Value = Planned%complete*BAC
Earned Value (EV): How much is actually done during a period. EV=Actual%Complete*BAC
Actual Cost: Money spent over the period
Cost Variance (CV): Difference between planned cost and actual cost. CV = EV - AC
Schedule Variance (SV): Difference between the planned schedule and actual schedule (as:Where the project is in the schedule). SV=EV-PV
Cost Performance Index (CPI): The rate at which the project cost is performing regarding cost expectations. CPI is done for a given period of time. CPI = EV/AC
Cumulative CPI: It's the CPI from the project start time to a particular point in time. CCPI = CEV/CAC
Schedule Performance Index (SPI): The rate at which the project is performing in respect of schedule expectations up to a point in time. SPI=EV/PV
Estimate at Completion (EAC): Forecast the total cost at project completion based on the project performance up to a point in time. EAC = BAC/CCPI
Estimate to Completion (ETC): How much more will be spent to complete the project based on past performance.
Variance at Completion (VAC): Difference between what was budgeted and what will actually be spent. VAC = BAC - EAC
Project managers need to calculate these values to get a good understanding of the project cost. He can get answers to questions like: How much is spent? How much more are required? Is the project progress satisfactory in terms of cost? -- these will ultimately help in project cost control.
Project Risk Management
What is risk?
According to PMI, Risk refers to an uncertain event that has positive or negative effects on project objectives.
Risk Management Plan includes:
tools and approaches to be used for
Risk Management
Identification and assignment of resources for risk management
Risk categories
Risk Probabilities and impacts
The format of risk reporting and tracking
Processes of Risk Management:
Risk Identification
Risk Analysis
Risk Response Planning
Risk Monitoring and Control
Risk Identification Process:
Output of the Risk Identification Process:
Risk Register - a list of identified risks
A list of the root causes of the risks
An initial list of potential responses
Risk Analysis
Output of the Risk Identification Process is used as the input.
Qualitative Risk Analysis involves: prioritization of risks based on a probability and impact matrix for each objective
Quantitative Risk Analysis involves:
Assessing the probabilities of meeting each project objective
Prioritization of the risks based on their total effect on the overall project objectives.
Risk Response Plan
Based on the priority for each risk:
Take no action
Take action if some events happen
Take action