Project Management Principles PDF

PROJECT MANAGEMENT Franck D. NASSIRI 2023-2024 DEFINITIONS Definitions: What is a Process? Definitions A project is: A set of interrelated activities, usually involving a group of people who are working together toward a common goal over a specified perio...

PROJECT MANAGEMENT Franck D. NASSIRI 2023-2024 DEFINITIONS Definitions: What is a Process? Definitions A project is: A set of interrelated activities, usually involving a group of people who are working together toward a common goal over a specified period of time. Project management (PM) is (a process): Planning, scheduling, and orchestrating of project activities to achieve objectives within a specified period of time. A team is: A group of people with complementary skills, working together toward a common goal. 8 septembre PROJET 2023 Sous titre  Types of team Team Type Purpose Example Self-directed Meets on an ongoing, daily At a steel mill, a team of eight people is basis to perform a whole responsible for ensuring that raw materials are work team work process purchased correctly according to company guidelines. Project Gathers to address a Several unit leaders in a medical-services firm specific problem or explore the potential benefits of adopting a team opportunity and then radical new imaging technology, present their disbands findings to executives, and disband. Virtual Brings geographically A project manager for an engineering company separate individuals hires consultants from around the world to work team together around specific with staff engineers on a major client project. tasks 8 septembre 2023  Definitions Projects are complex, one-time processes Projects are limited by budget, schedule, and resources Projects are developed to achieve a clear goal or a set of goals Projects are customer-focused A project is a temporary endeavor undertaken to create a unique product, service, or result PMBoK 5th edition 8 septembre PROJET 2023 Sous titre  The Functions of Modern Management apply to Project Management Organizational Goals Planning Influencing Controlling Organizing 8 septembre PROJET 2023 Sous titre  Specializing in Project Management Project Management Institute (PMI): the world’s largest professional project management association Project Management Professional (PMP) certification represents the highest standard of professional qualification for a practicing project manager and is administered by the Project Management Institute ü As of 2017, there were more than 775,000 PMPs worldwide ü In order to attain PMP certification, it is necessary for candidates to undergo a comprehensive exam that tests their knowledge of all components of the PMBoK ü A Guide to the Project Management Body of Knowledge (PMBOK®Guide) is PMI's flagship publication and is a fundamental resource for effective project management in any industry 8 septembre PROJET 2023 Sous titre Overview Of The Project Management Institute’s PMBoK Knowledge Areas 8 septembre PROJET 2023 Sous titre Overview Of The Project Management Institute’s PMBoK Knowledge Areas Watch the video: https://www.youtube.com/watch?v=nJJUhhIxO_A  Pools of specialized resources: functional managers Concept / Test / Development Prototyping Design validation Project Team 1 Project 1 Each team member has 2 bosses Product 1 Project 2 Product 2 Project 3 Product 3 8 septembre 2023 Project manager / Project leader / Project team leader « Project manager » (or Project leader) responsibilities « Project team leader » responsibilities, reports to Project manager « Project manager » has become the common designation of the head or leader of a project team. 8 septembre PROJET 2023 Sous titre  Project management phases Conceptualization Planning Execution Termination Determining the Assemble Monitor Bring project real problem project team progress to closure (Schedule, Identify Develop budget, risks) Identify next stakeholders overall plan step (schedule, Report Define project budget & risks) progress objectives (define (Scope) communication and reporting Rough estimates system) of time, cost, & skills using WBS 8 septembre 2023 Project management phases 8 septembre 2023 PROJECT SELECTION Project Selection: The financial model 8 septembre PROJET 2023 Sous titre Project Selection: The financial model 8 septembre PROJET 2023 Sous titre  Project Selection Project selection should not only be based on NPV that is an indicator of profitability Project selection depends on organizational goals, strategy and industry (“low-cost” or “speed to market” might matter more to some industries than others): The Check list model can be used: ü Cost of development ü RoI ü Development Risks ü Stability of the development process ü Stakeholder approval ü Product durability and market potential 8 septembre PROJET 2023 Sous titre Project Selection: Simplified Checklist Model 8 septembre 2023 Project Selection Low=1, Medium=2, High=3 8 septembre PROJET 2023 Sous titre  Project Selection The lack of accuracy of the “Simplified Scoring Model” encourages the use of other models: Analytical Hierarchy Process (AHP) Profile models (based on Risk/return of various alternatives) 8 septembre PROJET 2023 Sous titre PROJECT SCOPE & CHARTER  Project Scope & Objectives ① Define the problem that your project needs to solve ② Brainstorm Alternatives ③ Identify stakeholders and their needs ④ Define objectives ⑤ Anticipate trade-offs  Establishing the Project scope Project Scope & Objectives A successful project begins with clearly defined objectives. Be sure you know which problems your project aims to solve—and which problems it’s not meant to address To define the problem your project needs to solve, ask questions that uncover the practical and business issues the project will tackle 8 septembre 2023 Establishing the Project scope Avoid rushing into solutions: Example The project manager: "Why do we need a new system?” The answers you receive: "We can't get the data out fast enough" and, “We have to shift through four different steps to update clients' recent activity." These responses describe symptoms—not underlying problems. Ø Ask more probing questions, such as "What type of data do you need?" "How are you using the data now?" and "How quickly do you need to retrieve the data?” Ø You could waste time and money designing a system that doesn’t address fundamental concerns In class reading: Understanding What a Product Is about 8 septembre 2023  Project Scope & Objectives ① Define the problem that your project needs to solve ② Brainstorm Alternatives ③ Identify stakeholders and their needs ④ Define objectives ⑤ Anticipate trade-offs Establishing the Project scope Brainstorm alternatives Once you've defined the problem, don’t rush into the most obvious solutions. Brainstorm alternative solutions: ü How many different ways can we solve this problem? ü Of the available alternatives, which will best solve the problem? Why? ü Is the seemingly best alternative more or less costly than other suitable choices? ü Will this alternative result in a complete fix of the problem, or a partial fix? If a partial fix, what other options do we have for completely fixing the problem? Evaluate your responses. Then select the best alternative. 8 septembre 2023  Project Scope & Objectives ① Define the problem that your project needs to solve ② Brainstorm Alternatives ③ Identify stakeholders and their needs ④ Define objectives ⑤ Anticipate trade-offs Establishing the Project scope Identify Project Stakeholders A project stakeholder is: anyone who has a vested interest in the outcome of your project Your stakeholders might include: The project sponsor—the individual who has authorized the project Contributors, customers, end-users, business partners, managers, and financial staff—the people who will judge the success or failure of your project Anyone affected by the project's activities or outcomes—including individuals who may have to do their work differently because of the project People who contribute resources to the project—such as space, staff members, time, tools, equipment, and money 8 septembre 2023  Establishing the Project scope Identify Project Stakeholders’ needs Ask them about what success on the project means for them Stakeholders' interests vary, so their definitions of success will likely differ It’s your job to meld stakeholders' expectations into a coherent set of project objectives 8 septembre 2023 Establishing the Project scope Identify & Manage Project Stakeholders Key players Source: https://www.theprojectmanagementblueprint.com/ 8 septembre 2023 Establishing the Project scope Project Sponsor The Project Sponsor is a key stakeholder for any project, often a manager or executive who has major accountability for the project's performance. The sponsor: Authorizes the project Champions the project Ensures that senior management supports the project team's decisions and direction Has the authority to define the scope of the work Provides the project team with necessary resources 8 septembre 2023  Establishing the Project scope Project Sponsor Approves or rejects the project’s final deliverables Makes certain that the project's progress is communicated to the rest of the organization, especially to leaders Eliminates organizational obstructions Watches for any changes in organizational objectives that may affect the project's objectives Helps managers resolve any difficulties regarding their direct reports' splitting time between project duties and regular assignments 8 septembre 2023  Project Scope & Objectives ① Define the problem that your project needs to solve ② Brainstorm Alternatives ③ Identify stakeholders and their needs ④ Define objectives ⑤ Anticipate trade-offs Establishing the Project scope Define Objectives ④ Define objectives Successful projects meet their objectives So state your project’s objectives clearly and ensure that they reflect stakeholders’ needs But remember: During the early stages of the project, be prepared to refine your project objectives as conditions might change 8 septembre 2023  Establishing the Project scope Define Objectives When defining your project objectives, think SMART, Each objective should be: Specific. Clearly defines the details of what is to be accomplished Measurable. Gauges success using either quantitative or qualitative assessments Actionable / Achievable. Identifies concrete behaviors or processes Realistic. Can be achieved given existing constraints, such as time and resources Time-bound. Is accomplished within a specific time frame. 8 septembre 2023  Establishing the Project scope Define Objectives: Example "Our team is reengineering the entire customer service process: üIf we are successful, 95% of incoming customer calls will be handled by a single service representative and ü 80% of all calls will be resolved in three minutes or less." 8 septembre 2023  Project Scope & Objectives ① Define the problem that your project needs to solve ② Brainstorm Alternatives ③ Identify stakeholders and their needs ④ Define objectives ⑤ Anticipate trade-offs  Establishing the Project scope Anticipate Trade-offs Every project has three competing demands (also called the project Iron triangle): Quality—satisfaction of the project's requirements Time—amount of time needed to produce the project's deliverables Cost—how much money, people, and other resources needed to complete the project Change any one of these variables, and you change the other two as well 8 septembre 2023  Establishing the Project scope Anticipate Trade-offs: Remark Scope and Quality are often used interchangeably in the Project Iron triangle The reason is is that customers think in terms of deliverables Deliverables are defined as « qualities/features that make the product fit for purpose ». To customers, sometimes, the product is of higher quality if it has more working features So if you think of scope as « what the project team can achieve », it makes sense for quality to also fall under that definition 8 septembre 2023  Establishing the Project scope Anticipate Trade-offs To anticipate trade-offs, you need to: ü Understand your stakeholders' Conflicting Demands ü Master the communication skills essential for resolving questions about trade-offs ü Strategically manage Scope Creep 8 septembre 2023  Establishing the Project scope Scope Creep Scope Creep refers to a project that has seen its original goals expand while it's in progress: With "Scope Creep," stakeholders pressure a project manager to do more than the project plan originally called for Suddenly, your list of objectives for the project has grown to alarming proportions To avoid getting caught up in scope creep, resist the urge to solve everyone's problems with your project In class Reading the “Project Scope Creep”. 8 septembre 2023  Establishing the Project scope Trade-offs, Competing demands & Communication tactics Deciding whether and how to make trade-offs between quality, time, and cost is a major aspect of project management To manage trade-offs, use these communication tactics: ü Keep all stakeholders informed of any changes in your project's objectives ü Find out which of the three variables matters most to each stakeholder ü Explain the consequences of any changes in terms of quality, time, and cost ü Ask stakeholders to clarify what they’re willing to give up if they want you to do something that will affect the project’s quality, time, or cost 8 septembre 2023 PROJECT RESOURCES  Estimate project resources Estimate project resources: The Work breakdown structure To estimate project time, costs, and skills, you need to create a Work Breakdown Structure and use it for rough estimates. The lowest level of decomposition in the Work Breakdown Structure is also called a work package  Estimate project resources Creating a Work breakdown structure To create a WBS, follow these steps: 1. Ask, "What tasks have to be done to accomplish activity X?" 2. Continue to ask this question, breaking tasks into the smallest possible subtasks 3. Keep going until your answer represents a task that can’t be subdivided further 4. Estimate how long it will take to complete each subtask 5. Estimate how much each subtask will cost in terms of dollar$ / €uros and person-hours 6. Consider the skills you’ll need to perform each subtask  Creating a Work breakdown structure: Example Major Task Level 1 Subtasks Level 2 Subtasks Days Required for Level 2 Subtasks Cut purchase order 5 Purchase 3 servers and submit to and 2 databases. vendor. Obtain equipment Alert data center 2 Ship equipment to that equipment is new data center. slated for arrival. Ensure network 2 connectivity, Test equipment Test machines database access, and functionality  Estimate project resources Estimating Project Time If a task is familiar, estimating completion time will be relatively easy Unfamiliar tasks call for more thought and discussion To make time estimates: Use experience: The more familiar you or other employees are with a particular task, the more accurate your estimate will be Keep estimates as estimates: don't change estimates into firm commitments quite yet. Be careful and clear when communicating rough estimates to others Consider presenting time estimates (to stakeholders) as ranges instead of fixed estimates; for example, "Task A will take 8 to 12 hours to complete."  Estimate project resources Estimating Project Time Clarify Assumptions: Explaining time estimates reduces the risk that a task will take longer than the schedule allows ü To illustrate, if your padded estimate is based on receiving certain products within a two-week period, make sure that expectation is clear ü That way, the project team and stakeholders know there’s a chance that those products may not arrive on time ü Also let them know what the consequences of a late arrival would be  Estimate project resources Estimating Project Costs And Skills To estimate project costs and skills, ask what financial and other resources you'll need, and which skills will be necessary Estimate project resources Estimating Project Costs Estimate project resources Estimating Project Costs Estimating Project Costs 8 septembre PROJET 2023 Sous titre  Project Charter A Project Charter spells out the nature and scope of the work and management's expectations for results A formal charter can help ensure that your project doesn’t head off in a direction that jeopardizes organizational objectives It can also protect against scope creep 8 septembre 2023  Project Charter An effective project charter is a concise written document containing some or all of the following: Project mission statement Outline of the roles and responsibilities that people will play Project sponsor’s name Project scope and objectives Relationship between the project's goals and higher organizational goals Expected time frame of the work and milestones Resources available to the project team Constraints Assumptions about the project Quality requirements Major risks 8 septembre 2023  Project Charter Once you've developed a project charter, you’ll distribute it to all stakeholders You’ll also distribute it to project team members once you’ve assembled your team See Worksheet for Creating a Project Charter 8 septembre 2023 CONCEPTUALIZATION: PROJECT SCHEDULE & BUDGET  Project schedule & budget Define a Schedule Building a realistic schedule and budget for your project from earlier, rough estimates is critical for success Backward planning: To define your project schedule, begin by determining the latest date for completing your project—a date that can’t be changed Work backward from that date to see when you and your team will need to provide interim deliverables During the implementation phase, you will closely monitor the schedule you’ve created If conditions change, you’ll likely need to adjust your schedule. 8 septembre 2023  Project schedule & budget Example You're responsible for producing the annual report for your organization’s shareholder meeting, It will take the printer two weeks to print the report, That means all the final art and copy for the report must be ready to send to the printer two weeks before the meeting The team starts developing the artwork and text Then you learn that the printer will need more time to print the report because of unplanned maintenance work on its presses, what would you do? So you adjust your schedule to stipulate that the report’s files will have to go to the printer three weeks before the shareholders’ meeting, not two weeks. 8 septembre 2023  Project schedule & budget Steps for drafting your project schedule 1. Use the Work Breakdown Structure or a similar outline to develop a list of specific activities or tasks 2. Assign a deliverable to each activity—for instance, "rough draft of survey questions" or "prototype for test market" or "beta version" 3. Use deliverables as a basis for creating a project schedule with realistic milestones and due dates 4. Identify bottlenecks that could upset the schedule 5. Determine ways to remove bottlenecks or build in extra time to get around them 6. Establish control and communication systems for updating and revising the schedule. 8 septembre 2023  Project schedule & budget Tips for scheduling your project Know which deadlines are rigid and which have some flexibility Develop schedules according to what's logically possible: Allocate resources later Record all time segments in the same increments, such as days or weeks Leave room for flexibility for handling problems that might come up later. 8 septembre 2023  Project schedule & budget Scheduling systems Managers use several different kinds of tools to create draft schedules These include Bar Charts, Flow Charts, and PERT charts: 8 septembre 2023  Project schedule & budget Bar (Gantt) charts It lists project tasks in the left-hand column and indicates time blocks for each It shows task sequences and tasks completed in parallel These blocks indicate when each task should begin, based on task relationships and when it should end. 8 septembre 2023 Bar (Gantt) charts Using the information provided below, construct a simple WBS using a GANTT diagram Vertex42: https://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html Using the information provided below, construct a simple WBS using a GANTT diagram Vertex42: https://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html Using the information provided below, construct a simple WBS using a GANTT diagram Vertex42: https://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html  Flow Charts: Critical Path Diagram The Critical Path is the longest sequence of tasks through the project that determines total project duration As such, the Critical Path is the shortest time possible to complete the project By identifying the critical path for your project, you can allocate resources more efficiently 8 septembre 2023  Resource Leveling Resource leveling is a technique that ensures project resources will be used efficiently It will help reduce wastage of resource, will ensure no resource is assigned more work than it can do and resolves possible conflicts arising from over- allocation  Resource Leveling Resource leveling techniques are closely related with critical path calculations Resources might be taken from non-critical activities and allocated to critical activities  Project schedule & budget PERT – Program Evaluation & Review Technique Boxes: events Arrows: activities Numbers: units of time (1) Electric work (0) Thick arrows: critical path complete (2) Lath and (0) plaster walls (2) (0) (1) (2) Plumbing Paint Walls complete walls start complete (0) (2) (4) (3) (2) (0) START Foundation Frame Install Trim Interior complete complete millwork finished decoration (0) (2) (1) (0) Siding Exterior HOUSE complete complete READY 8 septembre 2023  Project schedule & budget Which tool would you use? Bar Charts are good for showing stakeholders and end users how the project is progressing Flow Charts are good for closely managing and communicating detailed information to supervisors and people doing the work PERT Charts are good for showing important task dependencies But the best tool for managing a project is the one you’re most comfortable with, Don’t be lured into using a tool just because “everyone else does” or because it’s “cutting-edge.” 8 septembre 2023  Project schedule & budget Crashing a Project At times it is necessary to expedite a project, accelerating development to reach an earlier completion date. The process of accelerating a project is referred to as crashing Crashing a project directly relates to resource commitment. The more resources we are willing to expend, the faster we can push the project to its finish Crashing projects may often increase cost 8 septembre 2023 Project schedule & budget Why accelerating Projects? 1. Initial schedule was too optimistic 2. Market needs have changed and the project is in demand earlier than expected 3. The project has slipped considerably behind schedule (there might be contractual late penalties) 8 septembre 2023 Project schedule & budget How accelerating Projects? 1. Improve the productivity of existing project resources 2. Change the working method employed for the activity 3. Compromise quality and/or reduce project scope 4. Fast-track the project (parallelizing more) 5. Use overtime (increasing working hours and/or week-end work) 6. Add resources to the project team 8 septembre 2023  Project schedule & budget Crashing a Project In analyzing crash options for project activities, the goal is to find the point at which time and cost trade-offs are optimized We can calculate various combinations of time/cost trade-offs for a project’s crash options by determining the slope for each activity using the following formula: 8 septembre 2023 Project schedule & budget Why calculating the slope? 8 septembre 2023  Project schedule & budget Crashing a Project: Example Suppose you are considering whether or not to crash project activities in order to expedite your project. You have calculated the total costs per activity for both normal and crashed options. These are shown in the table below: 8 septembre 2023 1. Which activities are the most likely candidates for crashing (i.e., which are the most cost-effective to crash)? 2. Using the critical path from this activity network, consider A – C – D – F – H as the critical path and assume all other paths are less than a fully crashed A – C – D – F – H. Prioritize the candidates for crashing. How does the activity network change the decision rule? 8 septembre 2023  Project schedule & budget Crashing a Project: Example Using the formula, we can create a table showing the crashing costs per day: 1. Prioritizing crashing choices, the most cost-effective activities to crash are (1) activity F, (2) activities A and G, and (3) activity E 8 septembre 2023  Flow Charts: Critical Path Diagram Reducing time for task C wont affect project duration The Critical Path is the longest sequence of tasks through the project that determines total project duration As such, the Critical Path is the shortest time possible to complete the project By identifying the critical path for your project, you can allocate resources more efficiently 8 septembre 2023  Project schedule & budget Crashing a Project: Example 2. The choices for crashing should be prioritized first by those that are on the critical path. In this example, the critical path is made up of activities A – C – D –F–H Therefore, the first activity to be crashed would be activity F, followed by activity A. Because neither activity G nor E is on the critical path, crashing them will not reduce the project length but will add to the overall costs. 8 septembre 2023  Project schedule & budget Creating a Budget A budget is the financial action plan for your project Creating budget > something you do during the Conceptualization phase of the project management process. You may have to adjust your budget during the implementation phase if circumstances change Budget translates the project plan into measurable expenditures and anticipated returns over a certain period of time Your success as a project manager, as well as the success of your project itself, will be measured in part on whether you complete the project within the budget. 8 septembre 2023  Project schedule & budget Creating a Budget Identify the cost categories, also known as line items, relevant for your budget. Typical project cost categories include: ü Personnel. This is almost always the largest part of a project's budget. It includes full-time and temporary workers ü Travel. People may have to travel from one location to another to do their project work. Consider whether everyone will be on-site, or whether the team will need to gather at one locale. Remember to budget for meals and lodging. ü Training. If training will be required, determine whether it will take place on-site, or whether travel expenses will be involved. If you plan to hire an outside contractor to provide the training, make sure your budget reflects his or her fees and expenses. 8 septembre 2023 Project schedule & budget Creating a Budget ü Supplies. In addition to the usual—computers, pens, papers, software—you may need unique materials. ü Space. If some people may have to be relocated to other facilities, estimate how much room and money that would require. ü Research. Consider whether you’ll have to buy studies or data to support your project versus your team performing such research itself, ü Professional services. If you’ll have to hire a market research firm, bring in a consultant, or seek legal advice, reflect those costs in your budget. ü Capital expenditures. You may need equipment or technical upgrades to complete the project. Some of these capital expenditures will need to pay for themselves. 8 septembre 2023  Project schedule & budget Often-overlooked costs Consider often-overlooked costs that could affect your project budget. Examples include: Training costs after the project is completed to teach users to implement your project Ongoing personnel and maintenance costs once the project is complete Insurance Licensing fees Costs for outside support such as accounting or legal counsel 8 septembre 2023  Project schedule & budget Contingency funds Remember that a budget, no matter how carefully planned, is still just your best guess Be prepared for actual numbers to deviate from your original estimates That’s because it's extremely difficult to anticipate every expense in a project To give your budget some flexibility, build in contingency funds—for instance, you might ask for 5% of the estimated project budget for contingency alone This allows you to accommodate some unanticipated costs without having to ask for more funding later. 8 septembre 2023  Project schedule & budget Should the project still proceed? Creating the budget might lead to consider whether the project should still move ahead, given the costs The project sponsor may wish to reconsider the project or reduce its scope once he/she sees the cost estimates If the sponsor is unwilling to fully fund the budget, the project manager or other members may wish to withdraw Projects that aren’t fully funded stand little chance of succeeding 8 septembre 2023 Project schedule & budget End of part 1 Thank you 8 septembre 2023  Group work (4 students) Using StakePoint or the Vertex42 excel template to schedule a project: For this exercise you can schedule a real-world project or use the project described in slide 69 (PERT) Goal is to evaluate how fast you can adopt, understand and use a new software but also to help you learning about how to schedule a project using the Work Breakdown Structure StakePoint website: https://stakepoint.com StakePoint online User guide: https://stakepoint.zendesk.com/hc/en- us/categories/200396541-User-Guide Vertex42: https://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html The following pages can help you create a new project and start scheduling new Major tasks, and sub-tasks in StakePoint You are supposed to at least schedule 2 or more “major tasks”. Each major task should then include several “sub-tasks” You have to add human resources and link those resources to the previously created “sub- tasks” 8 septembre 2023