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Engineering Project Management Instructors Prof. Tamer A. Mohamed Ass Lecturer Nepal Hassan Dr. Noha A. Mostafa Dem. Osama Abou-Saima Agenda 1. Introduction to Project Management 2. Org...
Engineering Project Management Instructors Prof. Tamer A. Mohamed Ass Lecturer Nepal Hassan Dr. Noha A. Mostafa Dem. Osama Abou-Saima Agenda 1. Introduction to Project Management 2. Organizing & Staffing the Project Office & Team 3. Management of Your Time and Conflicts 4. Project Planning 5. Network Scheduling Techniques 6. Resources & Costs 7. Cost Control 8. Risk Management 4 1 Introduction to Project Management The British University in Eg 5 White collars vs Blue collars Generally, project management jobs are white collars. The British University in Eg https://www.rfsonshr.com/what-is-the-difference-between-white-and-blue-collar-jobs/ 6 Importance of Project Management The British University in Eg “He who fails to plan is planning to fail” Sir Winston Churchill 8 Bechtel Projects ► Constructing 30 high-security data centers worldwide for Equinix, Inc. ($1.2 billion) ► Building and running a rail line between London and the Channel Tunnel ($4.6 billion) ► Developing an oil pipeline from the Caspian Sea region to Russia ($850 million) ► Expanding the Dubai Airport in the UAE ($600 million), and the Miami Airport in Florida ($2 billion) ► Building liquid natural gas plants in Yemen ($2 billion) and in Trinidad, West Indies ($1 billion) ► Building a new subway for Athens, Greece ($2.6 billion) ► Constructing a natural gas pipeline in Thailand ($700 million) ► Building 30 plants for iMotors.com, a company that sells refurbished autos online ($300 million) ► Building a highway to link the north and south of Croatia ($303 million) The British University in Eg 9 HBO The British University in Eg 10 Understanding PM The British University in Eg 11 What is PM? Project management is the planning, organizing, directing, and controlling of company resources for a relatively short- term objective that has been established to complete specific goals and objectives. The British University in Eg Video: Change the world with Project 12 What is PM? Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements” The British University in Eg 13 Importance of Project Management A project can be considered to be any series of activities and tasks that: ► Have a specific objective to be completed within certain specifications ► Have defined start and end dates ► Have funding limits (if applicable) ► Consume human and nonhuman resources (i.e., money, people, equipment) ► Are multifunctional (i.e., cut across several functional lines) The British University in Eg 14 Project Management involves 5 Processes: The British University in Eg 15 1. Project 16 initiation ps://www.projectmanager.com/blog/project-initiation 2. Project 17 planning http://blog.zilicus.com/project-management-guide-basics-of-project-planning/ 3. Project 18 execution ► Negotiating for the project team members ► Directing and managing the work ► Working with the team members to help them improve https://www.projecttimesa.com/lisa-anderson/project-execution-paramount-for- 4. Project 19 monitoring https://iesgeneralstudies.com/project-management-project-monitoring-control- 5. Project 20 closure Confirm that the work has been done as per requirements Gain formal acceptance Paperwork and contractual closure Final performance reporting Archive records Update lessons learned Celebrate!! https://www.ittoolkit.com/articles/project-closure 21 Successful project Successful project management can then be defined as having achieved the project objectives: ► Within time ► Within cost ► At the desired performance/technology level ► Utilizing resources effectively and efficiently ► Accepted by the customer The British University in Eg Video: 12 terms you should 22 Complexities! ► Project complexity ► Customer’s special requirements and scope changes ► Organizational restructuring ► Project risks The British University in Eg ► Changes in technology 23 PM Software & Certificates The British University in Eg 24 PM software There are several popular packages for managing projects ► Primavera ► MacProject ► MindView ► HP Project ► Fast Track ► Microsoft Project The British University in Eg 25 Reports ► Detailed cost breakdowns for each task ► Total program labor curves ► Cost distribution tables ► Functional cost and hour summaries ► Raw materials and expenditure forecasts ► Variance reports ► Time analysis reports ► Work status reports The British University in Eg 26 PM certificates The British University in Eg https://www.cio.com/article/3210765/top-project-management- 27 PM certificates The British University in Eg https://www.cio.com/article/3210765/top-project-management- 28 PMBOK The British University in Eg https://www.pmi.org/pmbok-guide- 29 Project Manager The British University in Eg 30 Project manager Vs Line manager Most companies have six resources: ► Money ► Manpower ► Equipment ► Facilities ► Materials ► Information/technology The British University in Eg 31 Project manager Vs Line manager ► Actually, the project manager does not control any of these resources directly, except perhaps money (i.e., the project budget). ► Resources are controlled by the line managers or resources managers. ► Project managers must, therefore, negotiate with line managers for all project resources. The British University in Eg 32 Project manager Vs Line manager It should become obvious at this point that successful project management is strongly dependent on: ► A good daily working relationship between the project manager and those line managers who directly assign resources to projects ► The ability of functional employees to report vertically to line managers at the same time that they report horizontally to one or more project managers The British University in Eg 33 The role of Project Manager The British University in Eg tps://www.youtube.com/watch?v=ip40qRkiZpk&t=22s 34 The role of Project Manager A PM is responsible for making sure that: All necessary activities are finished in order and on time The project comes in within budget The project meets quality goals The people assigned to the project receive motivation, direction, and information Balance scope, time, and cost The British University in Eg 35 The skills of Project Manager To be an effective project manager, besides technical project management skills, basic and most important project management skills are: Leadership Communication Planning Scheduling Risk Management Cost management The British University in Eg 36 The skills of Project Manager What do you thing about this man? ▰Comrade Dyatlov ▰Chernobyl (2019) The British University in Eg 37 The skills of Project Manager What do you thing about this man? Al Ruddy The offer (2022) The British University in Eg 38 Ethical issues ► Project managers face many ethical decisions ► The Project Management Institute has established an ethical code to deal with problems such as: Offers or gifts from contractors Pressure to alter status reports to mask delays False reports for charges of time and expenses Pressure to compromise quality to meet The British University in Eg schedules 39 Classification of Projects The British University in Eg 40 Classification of projects The principles of project management can be applied to any type of project and to any industry. Organizations are project-driven or non-project-driven. However, the relative degree of importance of these principles can vary from project to project and industry to industry. The British University in Eg 41 PM Knowledge Areas The British University in Eg http://situsaldy.blogspot.com/2011/09/project-management-knowledge-areas.html 42 PM Constraints, Tools, and Dimensions The British University in Eg 43 Triple constraints The British University in Eg ttps://thedigitalprojectmanager.com/triple-constraint/ 44 Tools and Techniques Project management tools and techniques assist project managers and their teams in various aspects. Some specific tools include: ► Project Charter, scope statement, and WBS (work breakdown structure) (scope) ► Gantt charts, network diagrams, critical path analysis, critical chain scheduling (time) ► Cost estimates and earned value management (cost) The British University in Eg 45 The Technical and Sociocultural dimensions of PM https://www.kbrs.ca/insights/women-leadership-how-can-we-close-gap The British University in Eg Gray, C and Larson, E. (2011). Project Management: The Managerial Process 2 Organizing & Staffing the Project Office & Team The British University in Eg 47 The Project Office The British University in Eg 48 Skills of the near future The British University in Eg 49 Project personnel Project management is not a one-person operation; it requires a group of individuals dedicated to the achievement of a specific goal: ► A project manager ► An assistant project manager ► A project office (full-time) ► A project team The British University in Eg 50 51 Project office responsibilities ► Acting as the focal point of information for both in-house control and customer reporting ► Controlling time, cost, and performance to adhere to contractual requirements ► Integrating work across the functional lines of the organization, such as engineering, R&D, and manufacturing, together with extra-company subcontractors ► Ensuring that all work required is documented and distributed The Britishto all keyin Eg University 52 Staffing questions ► What are the requirements for an individual to become a successful project manager? ► Who should be a member of the project team? ► Who should be a member of the project office? ► What problems can occur during recruiting activities? ► What can happen downstream to cause the loss of key team members? The British University in Eg 53 Successful team Project management is successful only if the whole team is totally dedicated to the successful completion of the project. This requires each member to understand the fundamental project requirements: ► Customer liaison ► Project direction ► Project planning ► Project control https://www.extron.com/product/teamworksystems ► Project evaluation ► Project reporting The British University in Eg 54 Project Manager Selection The British University in Eg 55 Project manager characteristics The personal attributes and abilities of project managers will either attract or deter highly desirable individuals. Basic characteristics include: ► Honesty and integrity (Don’t make impossible promises!) ► Understanding of personnel problems (Trust) ► Ability to evaluate risk and uncertainty ► Business management competence (not just technical!) ► Alertness and quickness (Red flags!) ► Versatility and negotiation ► Decision-making ability (Rapid) The British University in Eg https://dennis-gilbert.com/10-principles-of-leadership-engagement/smiling-professional-business-man-and-woman/ 56 Project manager 10 skills ► Organization ► Team building ► Leadership ► Entrepreneurship ► Conflict resolution ► Administration ► Technical expertise ► Planning ► Management support ► Resource allocation The British University in Eg https://dennis-gilbert.com/10-principles-of-leadership-engagement/smiling-professional-business-man-and-woman/ 57 The role of Project Manager A PM is responsible for making sure that: All necessary activities are finished in order and on time The project comes in within budget The project meets quality goals The people assigned to the project receive motivation, direction, and information Balance scope, time, and cost The British University in Eg 58 Project manager objectives The Executives must realize that the project manager’s objectives during staffing are to: ► Acquire the best available assets and try to improve them ► Provide a good working environment for all personnel ► Make sure that all resources are applied effectively and efficiently so that all constraint are met, if possible The British University in Eg 59 Project manager training The British University in Eg 60 Misleading criteria ► Maturity ► Hard-nosed tactics ► Availability ► Technical expertise ► Company exposure ► Customer orientation The British University in Eg 61 New generation PMs The primary skills needed to be an effective PM in the 21 st century are: ► Knowledge of the business ► Risk management ► Integration skills The British University in Eg 62 Four issues ► Part-time versus full-time assignments ► Several projects assigned to one PM ► Projects assigned to functional managers ► The project manager role retained The British University in Eg https://www.rewireme.com/career-business/multitasking-makes-us-inefficient/ by the general manager 63 Team Members The British University in Eg 64 Must-knows! Managers must understand that in order for employees to perform efficiently: ► They must know what they are supposed to do. ► They must have a clear understanding of authority and its limits. ► They must know what their relationship with other people is. ► They should know what constitutes a job well done in terms of specific results. ► They should know where and when they are falling short. ► They must feel that their superior has an interest in them as individuals. ► They must feel that their superior believes in them and wants them to succeed. The British University in Eg 65 Positions and responsibilities The British University in Eg 66 Positions and responsibilities The British University in Eg 67 Positions and responsibilities The British University in Eg 68 Organizational staffing Three major questions must be answered: ► What people resources are required? (What, How many, Who) ► Where will the people come from? (Internal or external…externals should be justified) ► What type of project organizational structure will be best? (Flexible or not!) The British University in Eg 69 Psychological approaches ► Give the candidates the permission to join the team or not! ► Line managers often receive no visibility or credit for a job well done. Give it to them. ► Be sure to show people how they can benefit by working for you or on your project. ► Any promises made during recruitment should be documented. ► Encourage conflicts to take place during recruiting and staffing. It is better for conflicts to be resolved during the initial planning stages than to have major confrontations later. The British University in Eg 70 Termination reasons ► Non-acceptance of rules, policies, and procedures ► Non-acceptance of established formal authority ► Professionalism being more important to them than company loyalty ► Focusing on technical aspects at the expense of the budget and schedule ► Incompetence (Develop, re-assign, or terminate) The British University in Eg https://www.achrnews.com/articles/119781-how-to-terminate-employees 71 The Destructors The British University in Eg 72 73 The aggressor ► Criticizes everybody and everything ► Deflates the status and ego of other team members ► Always acts aggressively The British University in Eg https://www.anger.org/attitudes/its-all-about-attitudes-part-2-aggressive.html 74 The dominator ► Always tries to take over ► Professes to know everything about project management ► Tries to manipulate people ► Will challenge those in charge for leadership role The British University in Eg https://www.masterfile.com/search/en/dominating+office https://www.masterfile.com/search/en/dominating+office 75 The devil’s advocate ► Advocates an opposing or unpopular view, often for the sake of argument ► Refuses to support project management unless threatened The British University in Eg https://www.timesofisrael.com/never-underestimate-the-devil-hes-smarter-than-we-are-pope- 76 The topic jumper ► Must be the first one with a new idea/approach to project management ► Constantly changes topics ► Cannot focus on ideas for a long time unless it is his/her idea ► Tries to keep project management implementation as an action item forever The British University in Eg 77 The recognition seeker ► Always argues in favor of his/her own ideas ► Volunteers to become the project manager if status is recognized ► Likes to hear himself/herself talk ► Likes to boast rather than provide meaningful information The British University in Eg https://cesargamio.com/the-influence-of-ego-in-high-performance-teams/ 78 The withdrawer ► Is afraid to be criticized ► Will not participate openly unless asked directly ► May withhold information ► May be shy The British University in Eg https://www.bestsampleresume.com/advice/how-to-approach-your-boss-after-a- 79 The blocker ► Likes to criticize ► Rejects the views of others ► Cites unrelated examples and personal experiences ► Has multiple reasons why project management will not work The British University in Eg 80 The Builders The British University in Eg 81 82 The initiator ► “Is there a chance that this might work?” ► “Let’s try this.” The British University in Eg 83 The information seeker ► “Have we tried anything like this before?” ► “Do we know other companies where this has worked?” ► “Can we get this information?” The British University in Eg https://www.unicaf.org/the-basics-of-online-studies/ 84 The information giver ► “Other companies found that...” ► “The literature says that...” ► “Benchmarking studies indicate that...” The British University in Eg http://emmawatsonstars.blogspot.com/2011/07/hermione-granger-with-her-books.html 85 The encourager ► “Your idea has a lot of merit.” ► “The idea is workable, but we may have to make small changes.” ► “What you said will really help us.” The British University in Eg 86 The clarifiers ► “Are we saying that... ?” ► “Let me state in my own words what I’m hearing from the team.” ► “Let’s see if we can put this into perspective.” The British University in Eg 87 The harmonizer ► “We sort of agree, don’t we?” ► “Your ideas and mine are close together.” ► “Aren’t we saying the same thing?” The British University in Eg 88 The consensus takers ► “Let’s see if the team is in agreement.” ► “Let’s take a vote on this.” ► “Let’s see how the rest of the group feels about this.” The British University in Eg https://www.istockphoto.com/photo/group-of-asian-business-people-man-and-woman-employee-meeting-and-listening-ceo- 3 Management of Your Time and Conflicts The British University in Eg 90 Understanding Time Management The British University in Eg 91 Time For all people, time is a resource that, when lost or misplaced, is gone forever. For a project manager, however, time is more of a constraint, Effective time management principles must be employed to make it a resource. Article: How is time management related to The British University in Eg productivity? https://www.breeze.pm/blog/how-is-time-management-related-to-productivity 92 Project manager time challenges The project manager may already be heavily burdened with: ► meetings, ► report preparation, ► internal and external communications, ► conflict resolution, ► and planning/replanning for crises. So, how can a PM manipulate his time to get the work done? The British University in Eg https://www.whizdom.com.au/blog/2019/09/Stop-Wasting-Time!-6-Useful-Time-Management-Tips-and-Tricks-To-Hack-Productivity- 93 Questions to identify problem areas Do you have trouble completing work within the allocated deadlines? How many interruptions are there each day? How do you handle them? If you need a large block of uninterrupted time, is it available? With or without overtime? Do you have established procedures for routine work? How difficult is it for you to say no? How do you approach detail work? Do you perform work that should be handled by your subordinates? Do you have sufficient time each day for personal interests? Do you still think about your job when away from the office? Do you make a list of things to do? If yes, is the list prioritized? Does your schedule have some degree of flexibility? The British University in Eg 94 Putting monkeys on your shoulders The most challenging problem facing the project manager is his inability to consider the situation in which an employee comes into your office with a problem. The employee may be sincere when he says that he simply wants your advice but, more often, the employee wants to take the monkey off of his back and put it onto yours. The employee’s problem is now your problem. The British University in Eg http://america.aljazeera.com/opinions/2014/2/humor-interspeciesromancebasilmurrayevelynwaughwhenspeciesmeet.html 95 Time Robbers The British University in Eg 96 Time robbers The British University in Eg 97 Time Management Forms The British University in Eg 98 99 Effective Time Management The British University in Eg 100 Helen Keller Louis Pasteur Ibn Sina Albert Einstein Bill Gates Angela Merkel Mary Barra Jack Ma 101 Time management techniques ► Work at travel stops. ► Ask: Is this trip necessary? ► Delegate. ► Follow the schedule. ► Know your energy cycle. ► Decide fast. ► Control telephone and email time. ► Learn to say no. ► Start now. ► Send out the meeting agenda. ► Do the tough part first. ► Overcome procrastination. ► Travel light. Video: 15 tips to manage your time The British University in Eg better 102 Time management questions ► What am I doing that I don’t have to do at all? ► What am I doing that can be done better by someone else? ► What am I doing that could be done as well by someone else? ► Am I establishing the right priorities for my activities? The British University in Eg 103 Conflicts The British University in Eg 104 Project manager or Conflict manager The ability to handle conflicts requires an understanding of why they occur. Asking and answering these four questions may help handle and prevent conflicts: ► What are the project objectives and are they in conflict with other projects? ► Why do conflicts occur? ► How do we resolve conflicts? ► Is there any type of analysis that could identify possible conflicts before they occur? The British University in Eg 105 SMART project objectives The objectives of the project must be made known at every level of the organization. The British University in Eg https://blog.hubspot.com/service/customer-service-goals 106 Common conflicts Manpower resources Equipment and facilities Costs Technical opinions and trade-offs Priorities Administrative procedures Scheduling Responsibilities https://obj.ca/event/dangers-ignoring-conflict-management-should-we-agree-disagree Personality clashes The British University in Eg 107 Conflict management techniques Video: Conflict resolution https://www.youtube.com/ watch?v=KY5TWVz5ZDU The British University in Eg https://www.projectcubicle.com/conflict-management-techniques/ 108 Conflict management techniques The British University in Eg 109 Conflict management techniques The British University in Eg 110 Conflict management tips The British University in Eg https://www.pinterest.com/pin/325948091756470891/ 111 Confrontation meetings ► Setting the climate ► Analyzing the images ► Collecting the information ► Defining the problem ► Sharing the information ► Setting the appropriate priorities and timetables ► Focus on action plan The British University in Eg https://www.forbes.com/sites/shephyken/2020/05/10/six-ways-to-have-effective-and-successful-meetings/#3f0a17588b94 112 Factors influencing the project priorities ► The technical risks in development ► The risks that the company will incur, financially or competitively ► The nearness of the delivery date and the urgency ► The penalties that can accompany late delivery dates ► The expected savings, profit increase, and return on investment ► The amount of influence that the customer possesses, possibly due to the size of the project ► The impact on other projects or product lines The British University in Eg https://blog.testlodge.com/how-to-prioritize-qa-tasks/ 4 Project Planning The British University in Eg 114 Project Management involves 5 Processes: Monitoring Initiation Planning Execution Closure & Control The British University in Eg 115 Types of decisions https://nuqabofecobe.izu-onsen-shoheiso.com/business-planning-levels-12959sz.html The British University in Eg 116 Types of decisions The British University in Eg http://process-consultant.blogspot.com/2014/10/3-layers-of-management.html 117 What is planning? Planning in a project environment may be described as establishing a predetermined course of action within a forecasted environment. If line managers cannot commit because the milestones are perceived as unrealistic, the project manager may have to develop alternatives, one of which may be to move the milestones. Upper-level management must The British University in Eg become involved in the selection of 118 Project planning Systematic, Flexible, Disciplined through reviews and controls, Capable of accepting multifunctional inputs, Iterative The British University in Eg 119 The British University in Eg 120 Reasons for project planning To eliminate or reduce uncertainty To improve efficiency of the operation To obtain a better understanding of the objectives To provide a basis for monitoring and controlling work The British University in Eg 121 Consequences of Poor Planning Project initiation without defined requirements Wild enthusiasm Chaos Search for the guilty Punishment of the innocent Article: Poor planning and methodology main cause of The British University in Eg project failure https://xpertlearning.com/poor-planning-methodology-main-cause-project-failure/ 122 Validating the Assumptions The British University in Eg 123 Who make the assumptions? Planning begins with an understanding of the assumptions. Quite often, the assumptions are made by marketing and sales personnel and then approved by senior management as part of the project selection and approval process. The expectations for the final results are based upon the assumptions made. The British University in Eg https://communicationstyles.org/the-circle-of-assumptions/ 124 Who validates and revise the assumptions? Assumptions must be documented at project initiation using the project charter. Throughout the project, the project manager must revalidate and challenge the assumptions. The British University in Eg https://communicationstyles.org/the-circle-of-assumptions/ 125 External vs Internal factors External environmental conditions that can affect the success of the project, such as interest rates, market conditions, changing customer demands and requirements, changes in technology, and even government policies. Assumptions about present or future company assets that can impact the success of the project such as the capability of your enterprise project management methodology, the project management information system, forms, guidelines, lessons learned data, and best practices. SWOT analysis is a useful tool in this stage. The British University in Eg https://www.mindtools.com/pages/article/newTMC_05.htm 126 SWOT analysis https://www.business-to-you.com/swot-analysis/ The British University in Eg 127 Assumptions and constraints The British University in Eg https://www.projectcubicle.com/assumptions-and-constraints/ 128 General Planning The British University in Eg 129 Tips to keep planning on target Let functional managers do their own planning. The British University in Eg https://www.insperity.com/blog/how-to-delegate-effectively/ 130 Tips to keep planning on target Establish goals before you plan. Article: SMART goal setting & project The British University in Eg planning https://www.orangescrum.com/tutorial/real-world-element-of-project-management/smart-goal-setting-and-project-planning 131 Tips to keep planning on target Stay flexible. The British University in Eg 132 Tips to keep planning on target Welcome top-management participation. Article: How to engage top managers in PM? The British University in Eg https://www.ipma.world/engage-top-managers-projects-project-management/ 133 Tips to keep planning on target Beware of future spending plans. The British University in Eg https://www.forbes.com/sites/forbesfinancecouncil/2019/11/25/how-to-manage-spend-at-a-high-growth-company/ 134 Tips to keep planning on target Do not depend solely on one set of data. The British University in Eg https://trusaic.com/2019/02/01/clean-data-essential-for-reliable-data-analysis/ 135 Tips to keep planning on target Don’t focus on today’s problems. The British University in Eg 136 Tips to keep planning on target Avoid the Persian messenger syndrome, reward the first to come forth with bad news. The British University in Eg 137 Kickoff Meetings The British University in Eg 138 The British University in Eg 139 Topics Wage and salary administration, if applicable Performance measurement and reporting process Initial discussion of the scope of the project including both the technical objective and the business objective The definition of success on this project The assumptions and constraints as identified in the project charter The project’s organizational chart (if known at that time) The participants’ roles and responsibilities This meeting may be preceded by several pre-kickoff meetings The British University in Eg 140 Roles Project manager Goals and objectives Time, cost, and performance Major milestones constraints Requirements Operating procedures Ground rules and assumptions Administrative policy Reporting requirements Line manager Detailed task descriptions to implement objectives, requirements, and milestones Detailed schedules and manpower allocations to support budget and schedule Identification of areas of risk, uncertainty, and conflict Senior management (project sponsor) The British University in Eg Act as the negotiator for disagreements between project and line 141 Four key questions Once the objectives are clearly defined, four questions must be considered: 1. What are the major elements of the work required to satisfy the objectives, and how are these elements interrelated? 2. Which functional divisions will assume responsibility for accomplishment of these objectives and the major- element work requirements? 3. Are the required corporate and organizational resources available? 4. What are the information flow requirements for the project? The British University in Eg 142 Information requirements The statement of work (SOW) The project specifications The milestone schedule The work breakdown structure (WBS) The British University in Eg https://www.projecttimes.com/articles/picking-and-right-sizing-a-project-management-information-system.html 143 What is SOW? The statement of work (SOW) is a narrative description of the work to be accomplished. It includes the objectives of the project, a brief description of the work, the funding constraint if one exists, and the specifications and schedule. The schedule is a “gross” schedule. Article: Tips on how to write or review SOW The British University in Eg https://www.outsidegc.com/blog/tips-on-how-to-write-or-review-a-statement-of- 144 What is SOW? Article: What is SOW? Definition & examples The British University in Eg https://www.projectmanager.com/blog/statement-work-definition- 145 Project specifications A specification list is separately identified as part of the statement of work. Specifications are used for man-hour, equipment, and material estimates. Small changes in a specification can cause large cost overruns. The British University in Eg 146 Milestones Project milestone schedules contain such information as: Start date End date Major milestones (review meetings, prototype available, procurement, testing) Data items for reports (personnel with writing skills are assigned, report cost is estimated, typically, 6–8 hours of work are required per page. At a burdened hourly rate of $??/hour.) The British University in Eg 147 Report preparation ► Organizing the report ► Writing ► Typing ► Editing ► Retyping ► Proofing ► Graphic arts ► Submittal for approvals ► Reproduction and distribution http://www.svtuition.org/2015/06/preparation-of-project-report.html The British University in Eg 148 WBS The WBS is the single most important element because it provides a common framework from which: ► The total project can be described as a summation of subdivided elements. ► Costs and budgets can be established. ► Time, cost, and performance can be tracked. ► Schedules and status-reporting procedures can be established. ► Network construction and control planning can be initiated. ► The responsibility assignments for each element can be established. The British University in Eg 149 WBS The British University in Eg 150 WBS The British University in Eg 151 Project Selection The British University in Eg 152 Who selects the project? A prime responsibility of senior management (and possibly project sponsors) is the selection of projects. The PM is usually hired after the project selection. Most organizations have an established selection criteria. From a financial perspective, project selection is basically a two-part process.: 1. First, the organization will conduct a feasibility study to determine whether the project can be done. 2. Second, perform a benefit-to-cost analysis to see whether the company should do it. The British University in Eg 153 154 155 156 157 Detailed Schedules & Charts The British University in Eg 158 Guidelines for schedule’s preparation ► All major events and dates must be clearly identified. ► The exact sequence of work should be defined through a network in which interrelationships between events can be identified. ► Schedules should be directly relatable to the work breakdown structure. If the WBS is developed according to a specific sequence of work, then it becomes an easy task to identify work sequences in schedules using the same numbering system as in the WBS. The minimum requirement should be to show where and when all tasks start and finish. ► Schedules must identify the time and resources constraints required. The British University in Eg 159 Project plan The project plan provides the following framework: ► Eliminates conflicts between functional managers ► Provides a standard communications tool throughout the lifetime of the project ► Provides a means for early identification of problem areas and risks so that no surprises occur downstream ► Contains all of the schedules as a basis for progress analysis and reporting The British University in Eg 160 Project plan The project plan answers five questions: 1. What will be accomplished? 2. How will it be accomplished? 3. Where will it be accomplished? 4. When will it be accomplished? 5. Why will it be accomplished? The British University in Eg 161 162 163 The project charter At a minimum, the charter should include: ► Identification of the project manager and his/her authority ► Project objective, assumptions and constraints ► Project scope (inclusions and exclusions) ► Key stakeholders and their roles ► Risks The British University in Eg 164 Final touches Project, line, and executive management must analyze other internal and external variables before finalizing these schedules. These variables include: ► Present or planned manpower availability ► Economic constraints of the project ► Degree of technical difficulty ► Availability of personnel training ► Priority of the project The British University in Eg 165 Article: Writing a project charter ps://projectmanagementskills.info/project-charter/ 166 The project charter vs SOW The British University in Eg https://4squareviews.com/2012/09/03/passing-the-pmp-project-statement-of-work-vs-project-charter/ 167 What is the next step? At this stage, it is time to develop the Project Master Schedule (PMS) which includes: ► An appropriate scheduling system (bar charts, milestone charts, network, etc.) ► A listing of activities at the project level or lower ► The possible interrelationships between activities (can be accomplished by logic networks, critical path networks, or PERT networks) ► Activity time estimates (a natural result of the item above) This will be the topic of our next two lectures! The British University in Eg https://bibloteka.com/what-is-a-master-schedule-in-project-management/ “He who fails to plan is planning to fail” Sir Winston Churchill 5 Network Scheduling Techniques The British University in Eg 170 Introduction Management is continually seeking new and better control techniques to cope with the complexities, masses of data, and tight deadlines that are characteristic of highly competitive industries. Managers also want better methods for presenting technical and cost data to customers. The British University in Eg https://www.managementdrives.com/us/management-drives/ 171 Scheduling techniques Scheduling techniques help achieve these goals. The most common techniques are: Gantt or bar chart Milestone charts Line of balance Networks Program Evaluation and Review Technique (PERT) Arrow Diagram Method (ADM) [Sometimes called the Critical Path Method (CPM)] Precedence Diagram Method (PDM) Graphical Evaluation and Review Technique (GERT) The British University in Eg https://www.projectcubicle.com/scheduling-techniques/scheduling-techniques-in-project- 172 Advantages of network scheduling techniques They form the basis for all planning and predicting and help management decide how to use its resources to achieve time and cost goals. They provide visibility. They help management evaluate alternatives by answering such questions as how time delays will influence project completion, where slack exists between elements, and what elements are crucial to meet the completion date. They utilize a so-called time network analysis as the basic method to determine manpower, material, and capital requirements, as well as to provide a means for checking progress. They provide the basic structure for reporting information. They reveal interdependencies of activities. They facilitate “what if ” exercises. They identify the longest path or critical paths. They aid in scheduling risk analysis. The British University in Eg 173 Disadvantages of network scheduling techniques Time and labor intensive Lacks historical data for time–cost estimates Assumes unlimited resources Requires too much detail The British University in Eg 174 Network Fundamentals The British University in Eg 175 Basic terms Networks are composed of events and activities. The following terms are helpful in understanding networks: Event: Equivalent to a milestone indicating when an activity starts or finishes. Activity: The element of work that must be accomplished. Duration: The total time required to complete the activity. Critical Path: This is the longest path through the network and determines the duration of the project. It is also the shortest amount of time necessary to accomplish the project. The British University in Eg 176 Interdependencies The circles represent events, and arrows represent activities. The numbers in the circles signify the specific events or accomplishments. The number over the arrow specifies the time needed (hours, days, months), to go from event 6 to event 3. The events need not be numbered in any specific order. However, event 6 must take place The British University in Eg before event 3 can be completed (or 177 Interdependencies In Figure 12–2A, event 26 must take place prior to events 7, 18, and 31. In Figure 12–2B, the opposite holds true, and events 7, 18, and 31 must take place prior to event 26. The British University in Eg 178 Different types of charts The British University in Eg 179 PERT PERT is basically a management planning and control tool. It can be considered as a road map for a particular program or project in which all of the major elements (events) have been completely identified, together with their corresponding interrelations. One of the purposes of constructing the PERT chart is to determine how much time is needed to complete the project. The British University in Eg https://ntaskmanager.medium.com/pert-guide-for-project-managers-and-productivity-gurus-94f2e81e946a 180 Sequencing of events Large projects can easily be converted into PERT networks once the following questions are answered: What job immediately precedes this job? What job immediately follows this job? What jobs can be run concurrently? The British University in Eg 181 PERT network example The British University in Eg 182 Critical path The critical path is established by the longest time span through the total system of events. The critical path is composed of events 1–2–3–5–6–7–8–9. The critical path is vital for successful control of the project because it tells management two things: Because there is no slack time in any of the events on this path, any slippage will cause a corresponding slippage in the end date of the program unless this slippage can be recovered during any of the downstream events (on the critical path). Because the events on this path are the most critical for the success of the project, management must take a hard look at these events in order to improve the total program. The British University in Eg 183 PERT vs CPM The principles that we have discussed thus far also apply to CPM. The nomenclature is the same and both techniques are often referred to as arrow diagramming methods, or activity-on-arrow networks. The differences between PERT and CPM are: PERT uses three time estimates to derive an expected time. CPM uses one time estimate that represents the normal time. PERT is probabilistic in nature, based on a beta distribution for each activity time and a normal distribution for expected time duration. This allows us to calculate the “risk” in completing a project. CPM is based on a single time estimate and is deterministic in nature. PERT is used for R&D projects where the risks in calculating time durations have a high variability. CPM is used for construction projects that are resource dependent and based on accurate time estimates. https://keydifferences.com/difference-between-pert-and-cpm.html The British University in Eg 184 GERT The British University in Eg 185 Tips to keep planning on target Graphical evaluation and review techniques are similar to PERT but have the distinct advantages of allowing for looping, branching, and multiple project end results. With PERT one cannot easily show that if a test fails, we may have to repeat the test several times. With PERT, we cannot show that, based upon the results of a test, we can select one of several different branches to continue the project. These problems are easily overcome using GERT. The British University in Eg 186 Dependencies The British University in Eg 187 Dummy activities Sometimes, it is impossible to draw network dependencies without including dummy activities. Dummy activities are artificial activities, represented by a dotted line, and do not consume resources or require time. They are added into the network simply to complete the logic. In Figure 12–5, activity C is preceded by activity B only. Now, let’s assume that there exists an activity D that is preceded by both activities A and B. Without drawing a dummy activity (i.e., the dashed line), there is no way to show that activity D is preceded by both activities A and B. The British University in Eg 188 Slack Time The British University in Eg 189 Slack time Since there exists only one path through the network that is the longest, the other paths must be either equal in length to or shorter than that path. Therefore, there must exist events and activities that can be completed before the time when they are actually needed. The time differential between the scheduled completion date and the required date to meet critical path is referred to as the slack time. In Figure 12–4, event 4 is not on the crucial path. To go from event 2 to event 5 on the critical path requires seven weeks taking the route 2–3–5. If route 2–4–5 is taken, only four weeks are required. Therefore, event 4, which requires two weeks for completion, should begin anywhere from zero to three weeks after event 2 is complete. During these three weeks, management might find another use for the resources of people, money, equipment, and facilities required to complete event 4. The British University in Eg 190 Using slack time in scheduling The critical path is vital for resource scheduling and allocation because the project manager, with coordination from the functional manager, can reschedule those events not on the critical path for accomplishment during other time periods when maximum utilization of resources can be achieved, provided that the critical path time is not extended. This type of rescheduling through the use of slack times provides for a better balance of resources throughout the company, and may possibly reduce project costs by eliminating idle or waiting time. The British University in Eg 191 Slack time calculation Slack can be defined as the difference between the latest allowable date and the earliest expected date based on the nomenclature below: TE the earliest time (date) on which an event can be expected to take place TL the latest date on which an event can take place without extending the completion date of the project The British University in Eg 192 193 Start and Finish times To make full use of the capabilities of PERT/CPM, we could identify four values: The earliest time when an activity can start (ES) The earliest time when an activity can finish (EF) The latest time when an activity can start (LS) The latest time when an activity can finish (LF) The British University in Eg 194 Start and Finish times The British University in Eg 195 Start and Finish times The British University in Eg 196 Network Re-planning The British University in Eg 197 198 Suppose that activities 1–2 and 1–3 in Figure 12–6 require manpower from the same functional unit. Upon inquiry by the project manager, the functional manager asserts that he can reduce activity 1–2 by one week if he shifts resources from activity 1–3 to activity 1–2. Should this happen, however, activity 1–3 will increase in length by one week. Reconstructing the PERT/CPM network as shown in Figure 12–12, the length of the critical path is reduced by one week, and the 199 Network re-planning techniques Resource leveling is an attempt to eliminate the manpower peaks and valleys by smoothing out the period-to-period resource requirements. The ideal situation is to do this without changing the end date. However, in reality, the end date moves out and additional costs are incurred. Resource allocation (also called resource-limited planning) is an attempt to find the shortest possible critical path based upon the available or fixed resources. The problem with this approach is that the employees may not be qualified technically to perform on more than one activity in a network. The British University in Eg 200 Reducing the project time Elimination of some parts of the project (Specs!) Addition of more resources (i.e., crashing - costly and may be not possible) Parallelization of activities (Risky!) Shortening critical path activities (Transferring resources from slack paths) Increasing the number of work hours per day The British University in Eg 201 Parallelization The British University in Eg 202 Segmented charts The British University in Eg 203 Estimating Activity Time The British University in Eg 204 Activity time estimates The calculations for critical paths and slack times in the previous sections were based on these best estimates. The more historical data available, the more reliable the estimate. Many programs, however, include events and activities that are non-repetitive. In this case, the functional managers must submit their estimates using three possible completion assumptions: 1. Optimistic completion time. This time assumes that everything will go according to plan and with minimal difficulties. This should occur approximately 1 percent of the time. 2. Pessimistic completion time. This time assumes that everything will not go according to plan and maximum difficulties will develop. This should also occur approximately 1 percent of the time. 3. Most likely completion time. This is the time that, in the mind of the functional manager, would most often occur should this effort be reported over and over again. The British University in Eg 205 Activity time estimates The expected time between events can be found from the expression: where te The expected time between events can be found from the expression: te expected time, a most optimistic time, b most pessimistic time, and m most likely time. As an example, if a 3, b 7, and m 5 weeks, then the expected time, t, would be 5 weeks. This value for t would then be used as the activity time between two events in the construction of a PERT chart. This method for obtaining best estimates contains a large degree of uncertainty. If we change the variable times to a 2, b 12, and m 4 weeks, then te will still be 5 weeks. The latter case, however, has a much higher degree of uncertainty because of the wider spread between the optimistic and pessimistic times. The British University in Eg 206 Estimating Total Project Time The British University in Eg 207 Project time estimates In order to calculate the probability of completing the project on time, the standard deviations of each activity must be known. This can be found from the expression: where Sigma te is the standard deviation of the expected time, te The British University in Eg 208 Project time estimates The British University in Eg 209 Project time estimates The British University in Eg 210 Total PERT/CPM Planning The British University in Eg 211 Six-step process 1. PM lists the activities to be performed. 2. PM place these activities in order of precedence 3. Review the arrow diagrams with the line managers 4. The functional manager converts the arrow diagram to a PERT chart by identifying the time duration for each activity (assuming the resources are available). 5. PM looks at the critical calendar dates in the definition of the project’s requirements. If the critical path does not satisfy the calendar requirements, then the project manager must try to shorten the critical path. The British University in Eg 212 Six-step process 6. PM places calendar dates on each event in the PERT chart, thus converting from planning under unlimited resources to planning with limited resources. Even though the line manager has given you a time estimate, there is no guarantee that the correct resources will be available when needed. That is why this step is crucial. If the line manager cannot commit to the calendar dates, then re-planning will be necessary. The British University in Eg 213 Crash Times The British University in Eg 214 Project crashing Using strictly the CPM approach, project managers can consider the cost of speeding up, or crashing, certain phases of a project. In order to accomplish this, it is necessary to calculate a crashing cost per unit time as well as the normal expected time for each activity. CPM charts, which are closely related to PERT charts, allow visual representation of the effects of crashing. There are these requirements: For a CPM chart, the emphasis is on activities, not events. Therefore, the PERT chart should be redrawn with each circle representing an activity rather than an event. In CPM, both time and cost of each activity are considered. Only those activities on the critical path are considered, starting with the activities for which the crashing cost per unit time is the lowest. The British University in Eg 215 To determine crashing costs we begin with the lowest weekly crashing cost, activity A, at $2,000 per week. Although activity C has a lower crashing cost, it is not on the critical path. Only critical path activities are considered for crashing. Activity A will be the first to be crashed for a maximum of two weeks at $2,000 per week. The next activity to be considered would be F at $3,000 per week for a maximum of three weeks. These crashing costs are additional expenses above the normal estimates. There is a good possibility that as each activity is crashed, a new critical path 216 Returning to Figure 12–16 (and assuming that no new critical paths are developed), activities A, F, E, and B would be crashed in that order. The crashing cost would then be an increase of $37,500 from the base of $120,000 to $157,500. The corresponding time would then be reduced from twenty-three weeks to fifteen weeks. 217 Returning to Figure 12–16 (and assuming that no new critical paths are developed), activities A, F, E, and B would be crashed in that order. The crashing cost would then be an increase of $37,500 from the base of $120,000 to $157,500. The corresponding time would then be reduced from twenty-three weeks to fifteen weeks. 218 Precedence Networks The British University in Eg 219 PM software packages Computerized project management can provide answers to such questions as: How will the project be affected by a change in the requirements? What is the cash flow for the project (and for each WBS element)? What is the impact of overtime? What additional resources are needed to meet the constraints of the project? How will a change in the priority of a certain WBS element affect the total project? The more sophisticated packages can provide answers to schedule and cost based on: Adverse weather conditions Weekend activities Unleveled manpower requirements Variable crew size Splitting of activities The British University in Eg Assignment of unused resources 220 Precedence networks ► Most software systems today use precedence networks, as shown in Figure 12–22, which attempt to show interrelationships on bar charts. ► In Figure 12–22, task 1 and task 2 are related because of the solid line between them. Task 3 and task 4 can begin when task 2 is half finished. (This cannot be shown easily on PERT without splitting activities.) ► The dotted lines indicate slack. ► The critical path can be identified by putting an asterisk (*) beside the critical elements, or by putting the critical connections in a different color or boldface. The British University in Eg 221 Information flow ► Figure 12–24 shows the typical information that appears in each of the activity boxes shown in Figure 12–23. The box identified as “responsibility cost center” could also have been identified as the name, initials, or badge number of the person responsible for this activity. The British University in Eg 222 Scheduling problems The British University in Eg 223 Scheduling problems There are some scheduling problems that can impact all scheduling techniques. These include: Using unrealistic estimates for effort and duration Inability to handle employee workload imbalances Having to share critical resources across several projects Overcommitted resources Continuous readjustments to the WBS primarily from scope changes Unforeseen bottlenecks The British University in Eg 224 The myths of schedule compression The British University in Eg 225 226 Use of overtime Myth Work will progress at the same rate on overtime. Reality The rate of progress is less on overtime; more mistakes may occur; and prolonged overtime may lead to The British University in Eg burnout. 227 Adding more resources (i.e., crashing) Myth The performance rate will increase due to the added resources. Reality It takes time to find the resources; it takes time to get them up to speed. The British University in Eg 228 Reducing scope Myth The customer always requests more work than actually needed. Reality Reducing scope The customer needs all of the tasks agreed to in the statement of work. The British University in Eg 229 Outsourcing Myth Numerous qualified suppliers exist. Reality The quality of the suppliers’ work can damage your reputation; the supplier may go out of business; and the supplier may have limited concern for your scheduled dates. The British University in Eg 230 Doing series work in parallel Myth An activity can start before the previous activity has finished. Reality The risks increase and rework becomes expensive because it may involve multiple activities. The British University in Eg 231 PM Software Features The British University in Eg 232 PM software features offered 1. Planning, tracking, and monitoring ► These features provide for planning and tracking the projects’ tasks, resources, and costs. ► Critical Path Method (CPM), Program Evaluation and Review Technique (PERT), or Precedence Diagram Method (PDM). ► Task elements, with their estimated start and finish times, their assigned resources, and actual cost data, can be entered and updated as the project progresses. ► Analysis of the data and documents the technical and financial status of the project against its schedule and original plan. The British University in Eg 233 PM software features offered 2. Reports ► Budgeted cost for work scheduled (BCWS) or planned value of work (PV) ► Budgeted cost for work performed (BCWP) or earned value of work (EV) ► Actual versus planned expenditure ► Earned value analysis ► Cost and schedule performance indices ► Cash-flow ► Critical path analysis ► Change order ► Standard government reports (DoD, DoE, NASA) The British University in Eg 234 PM software features offered 3. Project calendar ► This feature allows the user to establish work weeks based on actual workdays. Hence, the user can specify non-work periods such as weekends, holidays, and vacations. ► The project calendar can be printed out in detail or in a summary format and is automatically the basis for all computer-assisted resource scheduling. The British University in Eg 235 PM software features offered 4. What-if analysis ► Some software is designed to make what-if analyses easy. ►A separate, duplicate project database is established and the desired changes are entered. ► Then the software performs a comparative analysis and displays the new against the old project plan in tabular or graphical form for fast and easy management review and analysis. The British University in Eg 236 PM software features offered 5. Multi-project analysis ► Some of the more sophisticated software packages feature a single, comprehensive database that facilitates cross-project analysis and reporting. ► Cost and schedule modules share common files that allow integration among projects and minimize problems of data inconsistencies and redundancies. The British University in Eg 237 Watch these videos 1. https://www.youtube.com/watch?v=rLfKl6dW8YA 2. https://www.youtube.com/watch?v=9BAHv7xxZ04 3. https://www.youtube.com/watch?v=Gfj2A_SyY-E 4. https://www.youtube.com/watch?v=-TDh-5n90vk 5. https://www.youtube.com/watch?v=00s5efQWrgU The British University in Eg 238 PM main techniques Gantt chart Critical Path Method (CPM) Program Evaluation and Review Technique (PERT) The British University in Eg 239 Gantt Chart The British University in Eg 240 Gantt chart The British University in Eg 241 Gantt chart The British University in Eg 242 CPM and PERT The British University in Eg 243 CPM and PERT Network techniques Developed in 1950s ► CPM by DuPont for chemical plants (1957) ► PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958) ▰ Consider precedence relationships and interdependencies Each uses a different estimate of activity times The British University in Eg 244 CPM and PERT main Framework 1. Define the project and prepare the work breakdown structure. 2. Develop the relationships among the activities. Decide which activities must precede and which must follow others. 3. Draw the network connecting all the activities. 4. Assign time and/or cost estimates to each activity. 5. Compute the longest time path thro
