Project Management Midterm (1) PDF

Lectures Notes in PROJECT MANAGEMENT Lecture (1) Submitted By Dr. Ahmed Mohamed Abd-Elwahab Assistant Professor of Information Systems, Information Systems Department, Faculty of Commerce & Business Administration, Helwa...

Lectures Notes in PROJECT MANAGEMENT Lecture (1) Submitted By Dr. Ahmed Mohamed Abd-Elwahab Assistant Professor of Information Systems, Information Systems Department, Faculty of Commerce & Business Administration, Helwan University, Cairo, Egypt.  COURSE OUTLINE ❑ Chapter 1. Introduction to Project Management. ❑ Chapter 2. Project Management Knowledge Areas. ❑ Chapter 3. Project Scheduling (Planning). ❑ Chapter 4. Project Selection. ❑ Chapter 5. Project Evaluation and Controlling. ❑ Chapter 6. Microsoft Project Basics. 2  Ch 1. Introduction to Project Management ❑ What is Project ? ▪ Project Performance Dimensions. ▪ Boundaries of a Project. ▪ Project Life Cycle – 5 Stages. ▪ Characteristics of a Project. ▪ Difference Between Projects and Operations. ❑ What is Management ? ▪ Management Functions. ❑ What is Project Management ? ▪ Why Projects Fail ? ▪ Why Projects Succeed ? ▪ Benefits of Project Management. ❑ Project Organization & Roles. 3 Ch 2. Project Management Knowledge Areas 4  Ch 3. Project Scheduling (Planning) ❑ Introduction. ❑ Gantt Chart. ❑ Work Breakdown Structure (WBS). ❑ Developing Network Diagram. ❑ Construct the Critical Path Method (CPM). ❑ PERT (Project Evaluation & Review Technique). ❑ Project Crashing. 5  Ch 4. Project Selection ❑ Introduction. ❑ Approaches to Project Screening and Selection : 1. Checklist Model. 2. Simplified Scoring Models. ❑ Financial Models : 1. Payback Period/Analysis (Payback). 2. Net Present Value (NPV). 3. Return on Investment (ROI). 6 Ch 5. Project Evaluation and Controlling ❑ The Project Control Cycle. ❑ Monitoring Project Performance Project S-Curves. ❑ Milestone Analysis. ❑ Earned Value Management. ❑ Human Factors in Project Evaluation & Controlling. ❑ Critical Success Factors in the Project Implementation Profile. 7  CHAPTER (1) Introduction to Project Management 8  Introduction Project Management in recent years has Proliferated, Reaching new heights of Sophistication. It has Emerged as a Distinct Area of Management Practices to meet the 1 2 Challenges of New Economic Environment, Globalization 3 4 Process, Rapid Technological Advancement, and Quality Concerns of the Stakeholders (e.g., suppliers, users, general public, etc.). 9 1.1 What is a Project ? To understand Project Management, one must begin with the definition of a Project. A Project can be any Series of activities and tasks that: ▪ Have a Specific Objective (Unique Goal) = Scope to be completed within Certain Specifications (Unique Specifications). ▪ Have defined Start and End dates (Specific Timeframe) = Schedule. ▪ Have Funding limits (if applicable) = Fixed Budget = Cost. ▪ Consume Human and Nonhuman Resources (i.e., people, money, equipment, materials, facilities, IT). ▪ Are Multifunctional (i.e., cut across several functional lines). ▪ Working across Organizational Boundaries. 10  A Project is defined as “ a Sequence of activities or tasks that must be Completed to attain a Certain Outcome ”. A Project is “ a Temporary Endeavor undertaken to Produce a Unique Product, Service, or Result ”. A Project is “ a Unique Endeavor to Produce a set of Deliverables within clearly specified Scope, Time, Cost and Quality Constraints ”. A Project is “ a Problem Scheduled for Solution ”. ( ). 11  Project Performance Dimensions Three major dimensions that define the Project Performance are 1 2 3 (Scope, Budget/Cost and Time). These parameters are interrelated and interactive. The relationship generally represented as an equilateral triangle. 12  Boundaries of a Project Every Project operates within certain Boundaries called Constraints: 13 Project Life Cycle – 5 Stages 14  Characteristics of a Project A Project is a set of interdependent tasks that have a common goal. Projects have the following Characteristics: 15 Difference Between Projects and Operations There are many differences between projects and standard business operational activities. Some differences are as follows: Projects are unique and temporary, while Operations are ongoing and permanent with a repetitive output. Projects have a fixed budget, while Operations have to earn a profit to run the business. Projects are executed to start a new business objective and terminated when it is achieved, while Operational work does not produce anything new and is ongoing. 16 Difference Between Projects and Operations Projects create a unique product, service, or result, while Operations produce the same product, aim to earn a profit and keep the system running. There are more risks in projects as they are usually done for the first time, while in Operations there are fewer risks as they are repeated many times. Projects are performance intensive while Operations are efficiency intensive. Projects are managed through project management and Operations require business process management. 17 18 1.2 What is Management ? Management is the Process of reaching Organizational Goals by working with and through People and Other Organizational Resources. Management has the following 3 Characteristics: ▪ It is a process or series of continuing and related activities. ▪ It involves and concentrates on reaching organizational goals. ▪ It reaches these goals by working with and through people and other organizational resources. 19  Management Functions Management is the Planning, Organizing, Leading, and Controlling of human and other resources to achieve Organizational Goals efficiently and effectively. 20 1.3 What is Project Management ? Project Management is the application of Knowledge, Skills, Tools, Methods and Techniques to execute projects efficiently and effectively to achieve Specific Goals in order to meet or exceed Stakeholder needs and expectations. Project Management is the Skills, Tools and Management Processes required to undertake a project successfully. 21  Project Management Comprises: 1) A set of Skills - Specialist Knowledge, Skills and Experience to reduce the level of risks within a project & enhance likelihood of success. 2) A suite of Tools - Various types of tools include Document Templates, Document Registers, Planning Software, Modeling Software, Audit Checklists and Review Forms. 3) A series of Processes - Various management techniques & processes are used to monitor and control scope, time, cost and quality. Examples include Time Management, Cost Management, Quality Management, Change Management, Risk Management and Issue Management. 22  What Skills do Project Managers need ? Project Manager: Systems Analyst with Management and Leadership Skills responsible for leading Project Initiation, Planning, Execution, Controlling and Closedown. 23  Why Projects Fail ? ❑ Failure to align Project with Organizational Objectives. ❑ Poor/Creep Scope. ❑ Poor Communication. ❑ Unrealistic Expectations. ❑ Lack of Executive Sponsorship. ❑ Lack of Project Managerial Skills - Poor Project Management. ❑ Inability to move beyond Individual and Personality Conflicts. ❑ Politics. 24  Why Projects Succeed ? ❑ Good Project Charter. ❑ Good Communication. ❑ Good Decision-Making Structure. ❑ Strong Project Management. ❑ Project Sponsorship at Executive Level. ❑ The Right Mix of Team Players. ❑ Team members are working toward Common Goals. 25 Defining Projects Succeed The definition of project success has been modified to include completion: Within the allocated time period. Within the budgeted cost. At the proper performance or specification level. With acceptance by the customer/user. With minimum or mutually agreed upon scope changes. Without disturbing the main workflow of the organization. Without changing the corporate culture International Campus. 26 The Potential Benefits from Project Management ▪ Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover. ▪ Minimizing the need for continuous reporting. ▪ Identification of time limits for scheduling. ▪ Identification of a methodology for trade-off analysis. ▪ Measurement of accomplishment against plans. ▪ Early identification of problems so that corrective action may follow. ▪ Improved estimating capability for future planning. ▪ Knowing when objectives cannot be met or will be exceeded. 27 28 1.4 Project Organization & Roles Stakeholder is anybody who has any interest in your Project. The different examples of Stakeholders are as follows: ▪ Project Manager. ▪ Project Team Members. ▪ Senior Management. ▪ Sponsors. ▪ Suppliers. ▪ Customers. ▪ End Users. ▪ Vendors. ▪ People affected by Project's Output. ▪ Competitors. ▪ Social Groups. ▪ Government and Political Leadership. 29 1.4 Project Organization & Roles Project Stakeholders are Individual, Group, or Organization who may affect, or be affected by a decision(s), activity(s), or outcome(s) of a Project. Stakeholder can have a Positive or Negative impact. Therefore, it is necessary to engage and involve the stakeholders in the project to ensure project success. Stakeholders can be directly involved in a Project’s Work, can be members of other Internal Organizations, or can even be External to the Organization. 30 1.4 Project Organization & Roles The following diagram gives an overview of the main Roles in the Project Organization, from a Project Management point of view. 31 1.4 Project Organization & Roles 1. Business Governing Layer: The Business Governing Layer determines the Vision and Strategy for the entire organization. It consists of one or more management committees operating at Director level. It is here that Priorities are defined, Investment decisions are made, and Resources are allocated. 2. Steering Layer: The Steering Layer provides General Project Direction and Guidance, keeping the Project Focused on its Objectives. It reports to the Appropriate Governance Body (AGB). The Steering Layer is Composed of the Roles defined in the Directing and Management Layers, and other Optional Roles. 32 1.4 Project Organization & Roles 3. Directing Layer: The Directing Layer champions the Project and owns its Business Case. It mobilizes the Necessary Resources and monitors the Project’s Performance in order to realize the project’s objectives. The Directing Layer Comprises the Roles of Project Owner (PO) and Solution Provider (SP). 4. Managing Layer: The Managing Layer focuses on day-to-day Project Operations by Organizing, Monitoring, and Controlling work to produce the intended deliverables and implement them in the business organization. Members of the Managing Layer report to the Directing Layer. The Managing Layer Comprises the Roles of Business Manager and Project Manager. It is importance for the success of the project that there is a collaboration and communication between the Business Manager and the Project Manager. 33 1.4 Project Organization & Roles 5. Performing Layer: The Performing Layer Carries Out the Project Work, Producing the Deliverables and implementing them in the business organization. Members of the Performing Layer report to the Managing Layer. The Performing Layer Comprises the Roles of the Business Implementation Group (BIG) and the Project Core Team (PCT). 34 1.4 Project Organization & Roles 35  Ch 1. Introduction to Project Management ❑ What is Project ? ▪ Project Performance Dimensions. ▪ Boundaries of a Project. ▪ Project Life Cycle – 5 Stages. ▪ Characteristics of a Project. ▪ Difference Between Projects and Operations. ❑ What is Management ? ▪ Management Functions. ❑ What is Project Management ? ▪ Why Projects Fail ? ▪ Why Projects Succeed ? ▪ Benefits of Project Management. ❑ Project Organization & Roles. 36 Thanks! Ahmed Mohamed Abd-Elwahab 37  Lectures Notes in PROJECT MANAGEMENT Lecture (2) Submitted By Dr. Ahmed Mohamed Abd-Elwahab Assistant Professor of Information Systems, Information Systems Department, Faculty of Commerce & Business Administration, Helwan University, Cairo, Egypt.  CHAPTER (2) Key Areas of Project Management Project Management Knowledge Areas 2 3  Project Management What is Project ? A Project is defined as “ a Sequence of activities or tasks that must be Completed to attain a Certain Outcome ”. A Project is “ a Temporary Endeavor undertaken to Produce a Unique Product, Service, or Result ”. A Project is “ a Unique Endeavor to Produce a set of Deliverables within clearly specified Scope, Time, Cost and Quality Constraints ”. A Project is “ a Problem Scheduled for Solution ”. 4  Project Management What is Management ? Management is the Process of reaching Organizational Goals by working with and through People and Other Organizational Resources. Managerial Functions is the Planning, Organizing, Leading, and Controlling of human and other resources to achieve Organizational Goals efficiently and effectively. 5  Project Management What is Project Management ? Project Management is the application of Knowledge, Skills, Tools, Methods and Techniques to execute projects efficiently and effectively to achieve Specific Goals in order to meet or exceed Stakeholder needs and expectations. Project Management is the Skills, Tools and Management Processes required to undertake a project successfully. 6 Project Organization & Roles 7 Ch 2. Project Management Knowledge Areas OUTLINE (Part One) ❑ Introduction. ❑ The Key Areas of Project Management includes: 1. Project Integration Management. 2. Project Scope Management. 3. Project Time Management. 4. Project Cost Management. 5. Project Communications Management. 8  Introduction ▪ The Project Management Institute (PMI) defined the 10 Project Management Areas in the Project Management Body of Knowledge (PMBOK) guide. ▪ These Areas aim to Group processes, tools, and techniques Proven to be efficient in Project Management (PM) into Categories or Groups known as Project Management Knowledge Areas. ▪ The Purpose of these Knowledge Areas is to: 1. Better Organize the different Processes, and 2. Bring the Processes having Common Characteristics under One Category. 9 Project Management Knowledge Areas The Key Areas of Project Management includes: 1. Project Integration Management. 2. Project Scope Management. 3. Project Time Management. 4. Project Cost Management. 5. Project Communications Management. 6. Project Quality Management. 7. Project Human Resource Management. 8. Project Risk Management. 9. Project Procurement Management. 10. Project Stakeholder Management. 10 Project Management Knowledge Areas 1. Project Integration Management: Project Integration Management includes the processes and activities or (tasks) needed to Identify, Define, Combine, Unify, and Coordinate the various processes and activities with the Project Management Process Groups. Good Integration Management depends upon the Project Team. Is the team Fully Staffed, do they Possess the Necessary Skills, are they at the Right Place at the Right Time ? 11 Project Management Knowledge Areas 1. Project Integration Management: 12 Project Management Knowledge Areas 1. Project Integration Management: Integration Management Not Only involves taking decisions related to resource allocation, But also about making trade-offs among competing objectives and alternatives in order to solve problems and address minor issues before they turn into bigger problems. 13 Project Management Knowledge Areas 2. Project Scope Management: Scope involves getting Information required to start a project, and the Features the product would have that would meet its Stakeholder’s Requirements. Project Scope: “The Work that needs to be accomplished to deliver a Product, Service, or Result with the Specified Features and Functions”. It is Primarily Concerned with Controlling what “is” and what “is not” in the Scope. 14 Project Management Knowledge Areas 2. Project Scope Management Processes: 15 Project Management Knowledge Areas The Project Scope Management Processes include: 1. Plan Scope Management Process: This Sets out how you will Define, Manage, Validate, and Control your Project’s Scope. 2. Collect Requirements Process: Once you have Outlined your Big-Idea, you need to Document the Requirements and Manage your Stakeholders’ Expectations. It includes: ▪ Functional and Non-functional Requirements. ▪ Stakeholder Requirements, such as: Reporting Requirements. ▪ Support and Training Requirements. ▪ Business Requirements. ▪ Project Requirements, such as: Levels of Service or Quality. 16 Project Management Knowledge Areas The Project Scope Management Processes include: 3. Define Scope Process: Here’s where you take your Requirements and turn them into a detailed description of the product or service that your project is going to create. 4. Create Work Breakdown Structure Process: The main work here is Breaking down Big tasks into Smaller, manageable chunks. If you don’t think visually, then you can achieve the same result by creating a List. 17 Project Management Knowledge Areas The Project Scope Management Processes include: 5. Validate Scope Process: The Validate Scope process is getting business stakeholders to Sign-off your WBS. It’s about making sure that you have a process in place for getting sign off for your deliverables when the time comes. 6. Control Scope Process: It relates to making sure that there is Effective Change Control if the scope needs to Change. 18 Project Management Knowledge Areas 3. Project Time Management: Time Management is the Process of Organizing and Planning how to divide your Time between Specific Activities. 19 Project Management Knowledge Areas Processes of Project Time Management: 1. Define Activities: It involves identifying the specific activities that must be undertaken to produce the approved deliverables for a project. 2. Sequence Activities: This involves identification and documentation of relationships between different project activities. 3. Estimate Activity Resources: This involves estimating the quality and quantities of material, manpower, machinery, or supplies that would be required to perform each activity. 20 Project Management Knowledge Areas Processes of Project Time Management: 4. Estimate Activity Durations: This process is about estimating the number of work periods needed to complete individual activities with the estimated number of resources available. 5. Develop Schedule: This involves analyzing the activity sequences, durations, resource requirements, and schedule Constraints to create a schedule for the project. 6. Control Schedule: This is the process of monitoring the progress of the project to update status and manage changes to the schedule baseline. 21 Project Management Knowledge Areas Time Management Benefits: ❑ Greater Productivity and Efficiency. ❑ A better Professional Reputation. ❑ Less Stress. ❑ Increased Opportunities for Advancement. ❑ Greater Opportunities to achieve important life & career Goals. 22 Project Management Knowledge Areas Time Management Failure: ❑ Missed Deadlines. ❑ Inefficient Workflow. ❑ Poor Work Quality. ❑ Poor Professional Reputation and a Stalled Career. ❑ Higher Stress Levels. 23 Project Management Knowledge Areas Lessons to become the Master of your own time: 1. Carry a Schedule and Record all your thoughts, conversations, and activities for a week. 2. Schedule Appointments with yourself and Create time blocks for high-priority thoughts, conversations, and actions. Schedule when they will start and end. 3. Plan to Spend at least 50% of your time engaged in the thoughts, activities, and conversations that produce most of your results. 4. Schedule time for Interruptions. Take, for instance, the concept of having "Office Hours". 5. Take the first 30 minutes of every day to plan your day. Don't start your day until you Complete your Time Plan. 24 Project Management Knowledge Areas 6. Take 5 minutes before every call and task to decide what result you want to attain and take 5 minutes after each call and activity to determine whether your desired result was achieved. 7. Put up a "Do Not Disturb" sign when you absolutely have to get work done. 8. Practice Not answering the Phone just because it's ringing and Emails just because they show up. 9. Block Out other Distractions like Facebook and other forms of social media unless you use these tools to generate business. 10. Remember that it’s Impossible to get everything done. Also, Remember that odds are good that 20% of your thoughts, conversations and activities produce 80% of your results. 25 Project Management Knowledge Areas 4. Project Cost Management: Cost Management is the Process of Managing Project Costs through the Processes of Planning, Estimating, Budgeting, and Controlling Costs throughout the Project Life Cycle with the Objectives of keeping Expenditures within the approved budget. it's completed within Budget. 26 Project Management Knowledge Areas The Project Cost Management Processes are: Step1: Resource Planning: WBS and historical information of comparable projects can be used to define which Physical Resources are needed. Step2: Cost Estimating: The choice for the estimation method depends on the level of information available. Step3: Cost Budgeting: The cost estimate forms together with a project schedule the input for cost budgeting. Step4: Cost Control: Cost control is concerned with measuring variances from the cost baseline and taking effective corrective action to achieve minimum costs. 27 Project Management Knowledge Areas 5. Project Communications Management: Project Communications Management is the Systematic Planning, Implementing, Monitoring, and Revision of all the Channels of Communication within an Organization, and between Organizations. 28 Project Management Knowledge Areas 5. Project Communications Management: Project Communications Management Processes: 1. Identify Stakeholders. 2. Plan Communications. 3. Distribute Information. 4. Manage Stakeholder Expectations. 5. Report Performance. 29 Project Management Knowledge Areas 5. Project Communications Management: Aspects of Communications Management include: ❑ Developing Corporate Communication Strategies, ❑ Designing Internal and External Communications Directives, ❑ Managing the Flow of Information, including Online Communication. 30 Ch 2. Project Management Knowledge Areas OUTLINE (Part One) ❑ Introduction. ❑ The Key Areas of Project Management includes: 1. Project Integration Management. 2. Project Scope Management. 3. Project Time Management. 4. Project Cost Management. 5. Project Communications Management. 31 Thanks! Ahmed Mohamed Abd-Elwahab 32  Lectures Notes in PROJECT MANAGEMENT Lecture (3) Submitted By Dr. Ahmed Mohamed Abd-Elwahab Assistant Professor of Information Systems, Information Systems Department, Faculty of Commerce & Business Administration, Helwan University, Cairo, Egypt.  CHAPTER (2) Key Areas of Project Management Project Management Knowledge Areas 2 3 Ch 2. Project Management Knowledge Areas OUTLINE (Part One) ❑ Introduction. ❑ The Key Areas of Project Management includes: 1. Project Integration Management. 2. Project Scope Management. 3. Project Time Management. 4. Project Cost Management. 5. Project Communications Management. 4  Introduction ▪ The Project Management Institute (PMI) defined the 10 Project Management Areas in the Project Management Body of Knowledge (PMBOK) guide. ▪ These Areas aim to Group processes, tools, and techniques Proven to be efficient in Project Management (PM) into Categories or Groups known as Project Management Knowledge Areas. ▪ The Purpose of these Knowledge Areas is to: 1. Better Organize the different Processes, and 2. Bring the Processes having Common Characteristics under One Category. 5 Project Management Knowledge Areas The Key Areas of Project Management includes: 1. Project Integration Management. 2. Project Scope Management. 3. Project Time Management. 4. Project Cost Management. 5. Project Communications Management. 6. Project Quality Management. 7. Project Human Resource Management. 8. Project Risk Management. 9. Project Procurement Management. 10. Project Stakeholder Management. 6 Project Management Knowledge Areas 1. Project Integration Management: Project Integration Management includes the Processes and Activities needed to Identify, Define, Combine, Unify, and Coordinate the various processes and activities with the Project Management Process Groups. 7 Project Management Knowledge Areas 2. Project Scope Management: Project Scope: “The Work that needs to be accomplished to deliver a Product, Service, or Result with the Specified Features and Functions ". 8 Project Management Knowledge Areas 3. Project Time Management: Time Management is the Process of Organizing and Planning how to Divide your Time between Specific Activities. 9 Project Management Knowledge Areas 4. Project Cost Management: Cost Management is the Process of Managing Project Costs through the Process of Planning, Estimating, Budgeting, and Controlling Costs throughout the Project Life Cycle with the Objectives of keeping Expenditures within the Approved Budget. it's completed within Budget. 10 Project Management Knowledge Areas 5. Project Communications Management: Project Communications Management is the Systematic Planning, Implementing, Monitoring, and Revision of all the Channels of Communication within an Organization, and between Organizations. 11 Ch 2. Project Management Knowledge Areas OUTLINE (Part Two) ❑ The Key Areas of Project Management includes: 6. Project Quality Management. 7. Project Human Resource Management. 8. Project Risk Management. 9. Project Procurement Management. 10. Project Stakeholder Management. 12 Project Management Knowledge Areas 6. Project Quality Management: Quality Management is the Process to Ensure that the Project will meet or exceed Stakeholder's needs and expectations. The Seven Quality Management Principles are: QMP 1 – Customer Focus. QMP 2 – Leadership. QMP 3 – Engagement of People. QMP 4 – Process Approach. QMP 5 – Improvement. QMP 6 – Evidence-Based Decision Making. QMP 7 – Relationship Management. 13 Project Management Knowledge Areas 6. Project Quality Management: ❑ QMP 1 – Customer Focus: Statement: The Primary Focus of Quality Management is to Meet Customer Requirements and to Strive to exceed Customer Expectations. Rationale: Understanding Current and Future needs of Customers and other Interested Parties Contributes to Sustained Success of the Organization. Key Benefits: ▪ Increased Customer “Value”, “Satisfaction”, “Loyalty”, “Revenue and Market Share”. ▪ Enhanced “Repeat Business “ and “Reputation”. 14 Project Management Knowledge Areas 6. Project Quality Management: ❑ QMP 2 – Leadership: Statement: Leaders Establish Unity of Purpose and Direction and Create Conditions in which people are engaged in achieving the Organization’s Quality Objectives. Rationale: enable an Organization to align its Strategies, Policies, Processes, and Resources to achieve its Objectives. Key Benefits: ▪ Increased Efficiency and Effectiveness. ▪ Better Coordination of the Organization’s Processes. ▪ Improved Communication between Levels. ▪ Development and Improvement of the Capability of the Organization and its People. 15 Project Management Knowledge Areas 6. Project Quality Management: ❑ QMP 3 – Engagement of People: Statement: Competent, Empowered, and Engaged People at all levels throughout the Organization are essential to enhance its Capability to Create and Deliver Value. Rationale: Recognition, Empowerment, and Enhancement of competence facilitates the engagement of people in achieving the Organization’s Quality Objectives. Key Benefits: ▪ Improved understanding of the Organization’s Quality Objectives. ▪ Enhanced involvement of People in improvement activities. ▪ Enhanced Personal Development, Initiatives, and Creativity. ▪ Enhanced “People Satisfaction”, “Trust and Collaboration”. ▪ Increased attention to shared Values and Culture. 16  Project Management Knowledge Areas 6. Project Quality Management: ❑ QMP 4 – Process Approach: Statement: Consistent and Predictable results are achieved more Efficiently and Effectively when activities are Understood and Managed as Interrelated Processes. Rationale: Understanding how Results are Produced by this System enables an Organization to Optimize the System and its Performance. Key Benefits: ▪ Enhanced ability to focus effort on Key Processes and Opportunities for Improvement. ▪ Consistent and Predictable Outcomes through a System of aligned Processes. ▪ Optimized Performance through Effective process management, Efficient use of resources, and Reduced cross-functional barriers. 17 Project Management Knowledge Areas 6. Project Quality Management: ❑ QMP 5 – Improvement: Statement: Successful Organizations have an Ongoing Focus on Improvement. Rationale: Improvement is essential for an Organization to Maintain Current levels of Performance, to React to Changes in its internal and external Conditions and to Create New Opportunities. Key Benefits: ▪ Improved Process Performance, Organizational Capabilities, and Customer Satisfaction. ▪ Enhanced focus on Root-cause Investigation and Determination, followed by Prevention and Corrective actions. ▪ Enhanced ability to Anticipate and React to internal and external risks and Opportunities, Also, Drive for Innovation. 18 Project Management Knowledge Areas 6. Project Quality Management: ❑ QMP 6 – Evidence-Based Decision Making: Statement: Decisions based on the Analysis and Evaluation of data and information are more likely to Produce Desired Results. Rationale: Understanding how Results are Produced by this System enables an Organization to Optimize the System and its Performance. Facts, Evidence, and Data Analysis lead to greater Objectivity and Confidence in Decision-Making. Key Benefits: ▪ Improved Decision-Making Processes. ▪ Improved assessment of Performance and ability to achieve Objectives, and Operational efficiency and effectiveness. ▪ Increased ability to review, challenge and change Opinions and Decisions. ▪ Ability to demonstrate the effectiveness of Past Decisions. 19 Project Management Knowledge Areas 6. Project Quality Management: ❑ QMP 7 – Relationship Management: Statement: For Sustained Success, an Organization Manages its Relationships with Interested Parties, Such as: Suppliers. Rationale: Interested Parties influence the Performance of an Organization. Sustained Success is more likely to be achieved. when the Organization manages relationships with all its Interested Parties to Optimize their impact on its Performance. Key Benefits: ▪ Responding to the Opportunities and Constraints related to each Interested Party. ▪ A well-managed Supply Chain that provides a Stable flow of goods and services. ▪ Increased Capability to create Value for Interested Parties by Sharing Resources, Competence and Managing Quality-Risks. 20 Project Management Knowledge Areas 7. Project Human Resource Management: Human Resource Management (HRM) Consists of all the Processes that Assist a Project Manager in Organizing, Managing and Leading the Project Team. Human Resource Management is all about “Personnel Management”. Project Human Resource Management Processes are: 1. Develop Human Resource Plan: (Roles & Responsibilities). 2. Acquire Project Team. 3. Develop Project Team: Improving the team dynamics and its Competency to perform better. 4. Manage Project Team. 21 Project Management Knowledge Areas 8. Project Risk Management: Risk - is a Probability that some adverse circumstance will occur. Risk Management is the Process of Defining, Analyzing, Evaluating, and Prioritizing Risks, and Drawing up Plans to minimize their effect on a Project. ▪Project Risks affect Schedule or Resources. ▪Project Risks affect the Quality or Performance of the software being developed. Risk Management’s Objective is to Ensure that Uncertainty does not deflect the endeavor from the Business Goals. 22 Project Management Knowledge Areas 8. Project Risk Management: Risk can come from Various Sources including: 1. Uncertainty in Financial Markets, 2. Threats from Project Failures (at any phase in Design, Development, Production, or Sustainment Life Cycles), 3. Legal Liabilities, 4. Credit Risk, 5. Accidents, 6. Natural Causes and Disasters, 7. Any Events of Uncertain or Unpredictable root-cause. 23 Project Management Knowledge Areas 8. Project Risk Management: Principles of Risk Management - The International Organization for Standardization (ISO) identifies the following Principles of Risk Management: 1. Create Value – resources expended to mitigate risk. 2. Be an Integral Part of Organizational Processes. 3. Be a Part of Decision-Making Process. 4. Explicitly Address Uncertainty and Assumptions. 5. Be a Systematic and Structured Process. 6. Be based on the best available Information. 7. Be Tailorable. 8. Take Human Factors into account. 9. Be Transparent and Inclusive. 10. Be Dynamic, Iterative, and Responsive to Change. 11. Be Capable of Continual Improvement and Enhancement. 12. Be Continually or Periodically Reassessed. 24 Project Management Knowledge Areas The Project Risk Management Processes are: 25 Project Management Knowledge Areas The Project Risk Management Processes are: Step 1 – Establish the Context: ❑ It is important to understand the Context in which it exists. You should Define the Relationship between your Club and the Environment that it operates in so that the Boundaries for dealing with Risk are Clear. ❑ Establish the Content by Considering: ▪ The Strategic Context – the Environment within which the Organization Operates. ▪ The Organizational Context – the Objectives, Core activities and Operations of the club. 26 Project Management Knowledge Areas The Project Risk Management Processes are: Step 2 – Identify the Risk: ❑ The Purpose of this step is to Identify What could go Wrong (Likelihood) and What is the Consequence (loss or damage) of it occurring. Key Questions to ask include: What can happen? How and Why it can happen? What is the likelihood of them happening? What will be the consequences if they do happen? ❑ Risks can be Physical, Financial, Ethical, or Legal: ▪ Physical Risks are those involving Personal Injuries. ▪ Financial Risks involve the assets of the Organization and include theft, fraud, loans, license fees. ▪ Ethical Risks involve actual or potential harm to the Reputation. 27 Project Management Knowledge Areas The Project Risk Management Processes are: Step 3 – Analyze the Risks (& Evaluate): ❑ Risk Analysis this involves Analyzing the Likelihood and Consequences of each identified Risk and Deciding which Risk Factors will potentially have the greatest effect and should, therefore, Receive Priority with regard to how they will be managed. ❑ Risk Evaluation involves Comparing the level of risk found during the analysis process with previously established risk criteria and Deciding whether risks can be accepted. ❑ If risks do not fall into the low or acceptable category, they should be treated using one or more of the treatment options considered in Step 4. 28 Project Management Knowledge Areas The Project Risk Management Processes are: Step 3 – Analyze the Risks (& Evaluate): ❑ The Criteria for Evaluating the Risks: 1. Likelihood Scale: Question – What is the likelihood of the Risk event occurring? 29 Project Management Knowledge Areas The Project Risk Management Processes are: Step 3 – Analyze the Risks (& Evaluate): ❑ The Criteria for Evaluating the Risks: 2. Loss or Damage Impact Scale (Consequences): Question – What is the loss or damage Impact if the risk event occurred (Severity)? 30 Project Management Knowledge Areas The Project Risk Management Processes are: Step 3 – Analyze the Risks (& Evaluate): ❑ The Criteria for Evaluating the Risks: 3. Risk Priority: The Risk Priority Scale determines the nature of the risk, and the action required. They are indicators to assist in the decision making of what action is warranted for the risks. Question – What is the Risk Priority? 31 Project Management Knowledge Areas The Project Risk Management Processes are: Step 3 – Analyze the Risks (& Evaluate): ❑ The Criteria for Evaluating the Risks: (Risk Priority Scale) IMPACT = Loss or Damage Impact Scale CATASTROPHIC MAJOR MODERATE MINOR NEGLIGIBLE ALMOST CERTAIN LIKELY LIKELIHOOD POSSIBLE UNLIKELY RARE 32 Project Management Knowledge Areas The Project Risk Management Processes are: Step 3 – Analyze the Risks (& Evaluate): ❑ The Criteria for Evaluating the Risks: Key of Risk Priority Scale EXTREME MAJOR MEDIUM MINOR 33 Project Management Knowledge Areas The Project Risk Management Processes are: Step 4 – Treat the Risks: ❑ Risk Treatment involves Identifying the range of Options for treating the risk, Evaluating those Options, Preparing the risk treatment Plans, and Implementing those Plans. ❑ According to the Standard, Treatment Options include: Accepting the Risk. Avoiding the Risk. Reducing the Risk. Transferring the Risk. Retaining the Risk. Financing the Risk. 34 Project Management Knowledge Areas The Project Risk Management Processes are: Step 5 – Monitor and Review: ❑ Monitoring and Review is an Ongoing Part of Risk Management that is integral to Every Step of the Process. ❑ Monitoring and Review Ensure that the important information generated by the Risk Management Process is Captured, Used and Maintained. ❑ Few Risks remain Static. Factors that may affect the Likelihood and Consequences of an outcome may change, as may the factors that affect the suitability or cost of the various treatment options. Review is an integral part of the risk management treatment plan. 35 Project Management Knowledge Areas 9. Project Procurement Management: Procurement Management is the Process of acquisition of goods and/or services. 1. Simple Procurements however doesn’t necessarily require contracts, formal agreements, or purchase orders. 2. Complex Procurements should involve looking for Vendors or Suppliers who want to establish a long-term Buyer/Seller Relationship. 36 Project Management Knowledge Areas 9. Project Procurement Management: Procurement could also involve Making Buying Decisions based on Economic Analysis Methods like: 1. Cost-Benefit Analysis: This involves looking at the Overall Costs and Benefits of a decision, then evaluating the pros and cons to determine if the planned action is beneficial before making the decision. 2. Cost-Utility Analysis: Use a Common Unit of Measure (for example, quality of life in health care, or money). This method tends to provide a more detailed analysis of total benefits over cost-benefit analysis. 3. Risk Analysis: It can also help the project team in identifying the Preventive measures needed to mitigate the risk. 37 Project Management Knowledge Areas The Project Procurement Management Processes are: 1. Plan Procurements: Documenting Procurement Decisions on how Procurements will be managed and deciding the criteria for seller selection on the project. 2. Conduct Procurements: Initiating the bidder selection process, Obtaining seller responses, Choosing a seller, and Ultimately awarding the contract. 3. Administer Procurements: This involves Maintaining the procurement relationship with the chosen vendor. The process group is Monitoring and Controlling. 4. Close Procurements: This is the process of Completing each project procurement transaction and the Contract Services at the end of the project. 38 Project Management Knowledge Areas Stakeholder is anybody who has any interest in your Project. The different examples of Stakeholders are as follows: ▪ Project Manager. ▪ Project Team Members. ▪ Senior Management. ▪ Sponsors. ▪ Suppliers. ▪ Customers. ▪ End Users. ▪ Vendors. ▪ People affected by Project's Output. ▪ Competitors. ▪ Social Groups. ▪ Government and Political Leadership. 39 Project Management Knowledge Areas Project Stakeholders are Individual, Group, or Organization who may affect, or be affected by a decision(s), activity(s), or outcome(s) of a Project. Stakeholder can have a Positive or Negative impact. Therefore, it is necessary to engage and involve the stakeholders in the project to ensure project success. Stakeholders can be directly involved in a Project’s Work, can be members of other Internal Organizations, or can even be External to the Organization. 40 Project Management Knowledge Areas 10. Project Stakeholder Management: 41 42 Thanks! Ahmed Mohamed Abd-Elwahab 43  Lectures Notes in PROJECT MANAGEMENT Lecture (4) Submitted By Dr. Ahmed Mohamed Abd-Elwahab Assistant Professor of Information Systems, Information Systems Department, Faculty of Commerce & Business Administration, Helwan University, Cairo, Egypt.  CHAPTER (3) Project Scheduling 2  Ch 3. OUTLINE ❑ Introduction. ❑ Gantt Chart. ❑ Work Breakdown Structure (WBS). ❑ Developing Network Diagram. ❑ Construct the Critical Path Method (CPM). ❑ PERT (Project Evaluation & Review Technique). ❑ Project Crashing. 3  Introduction ▪ Project is a Problem Scheduled for Solution. ▪ Scheduling Project Activities is a Significant Part of Project Preparation. It includes determining which activities (tasks) will be completed and when. 4  Introduction ▪ A Software Project Manager needs to do the following: 1. Identify all the activities needed to complete the Project. 2. Break-down (Divide) Complex task into Smaller activities. 3. Determine the Dependency among different activities. 4. Establish the most likely estimates for the time durations necessary to Complete the activities. 5. Allocate Resources to activities. 6. Plan the Starting and Ending dates for various activities. 7. Determine the Critical Path. 5 Gantt Chart 6 Work Breakdown Structure (WBS) Work Breakdown Structure of an MIS Problem 7 Work Breakdown Structure (WBS) Work Breakdown Structure Deliverables 8 Work Breakdown Structure (WBS) Example of WBS for a Project 9 Developing Network Diagram 10  Network Diagram ❑ Assuming the Students are Preparing a Seminar, to ensure the best use of your time and availability, it would be necessary to determine a Reasonable (Logical) Sequence. 1. Preceding activities (are those that must occur before others can be done). 2. Subsequent or Successor activity (are those that must follow others). For example, it would be necessary to first Identify the term paper topic before beginning to Conduct research on it. Therefore, Activity1, Identify topic, is a Preceding activity; and Activity2, Research topic, is referred to as Successor activity. 11  Network Diagram Once you have Identified a Reasonable Sequential Logic for the Network, you can Construct a Network Diagram. Network Diagram is a Schematic display of the Project’s Sequential Activities and the Logical Relationships between them. 12  Network Diagram Alternative Activity Networks for Term Paper Assignment 13  Network Diagram Activity Network Representation of the MIS Problem 14  Network ❑ Network - Graphical Portrayal of activities and events. ❑ Shows Dependency Relationships between activities or tasks in a Project. ❑ Clearly shows tasks that must Precede (Precedence) or Follow (Succeeding) other tasks. in a logical manner (Reasonable Sequence). ❑ Clear Representation of Plan – a Powerful tool for Planning & Controlling Project. ❑ Combination of all Project activities and the Events. 15  Rules for Constructing a Network Diagram 1. Some determination of activity Precedence Ordering must be done before Creating the Network. That is all activities must be logically linked to each other - those that precede others, as well as Successor Activities (those that must follow others). 2. Network diagrams usually flow from left to right. 3. An activity Cannot begin until all Preceding connected activities have been Completed. 4. Arrows (Arcs) on Networks indicate Precedence and Logical Flow. 16  Rules for Constructing a Network Diagram 5. Each activity should have a Unique Identifier associated with it (number, letter, code, etc.). For simplicity, these identifiers should occur in Ascending Order; each one should be larger than the identifiers of Preceding activities. 6. Looping or Recycling through activities, is Not Permitted. 7. Although not required, it is common to Start a Project from a Single beginning node, even in the case when multiple start points are possible. A single node point also is typically used as a project End indicator. 17 Example of Simple Network 18 Definition of Terms in a Network ❑ Activity: any Portions of Project (tasks) which required by Project, uses up resource, and consumes time – may involve (Labor, Paperwork, Contractual Negotiations, Machinery Operations). Activity on Arrow (AOA) showed as arrow (AON) – Activity on Node. ❑ Event: Starting or Ending Points of one or more activities, instantaneous point in time, also called ‘Nodes’ 19 AOA Versus AON 20 Rules for Constructing a Network Diagram Construction of Network should be based on logical or technical dependencies among activities. 1. Each activity is represented by One and Only One Arrow (Arc) in the Network = (Unique Node); 2. No two activities can be identified by the same head and tail events (a dummy activity is introduced in such situations); 21 Example of the Use of Dummy Activity 22  Example 1 - A Simple Network ❑ Consider the list of four activities for Making a Simple Product: Immediate Predecessors for a particular activity are the activities that, when completed, enable the start of the activity in question. 23 Answer for Example 1 - A Simple Network Network of Four Activities 24  Example 2 ❑ Develop the Network for a Project with the table below: 25 Answer for Example 2 26 Answer for Example 2 27  Example 3 ❑ Develop the Network for a Project with the table below: 28  Answer for Example 3 Note how the Network correctly identifies D, E, and F as the Immediate Predecessors for G. Dummy activity is used to identify Precedence Relationships correctly and to Eliminate Possible Confusion of two or more activities having the same starting and ending nodes. Dummy activities have No Resources (time, labor, machinery, etc.) – Purpose is to PRESERVE LOGIC of the Network. 29 Example of Dummy Activity ( a does not Precede f ). 30 Answer for Example of Dummy Activity 31  Exercise ❑ Develop the Network for a Project with the table below: 32 Thanks! Ahmed Mohamed Abd-Elwahab 33  Lectures Notes in PROJECT MANAGEMENT Lecture (5) Submitted By Dr. Ahmed Mohamed Abd-Elwahab Assistant Professor of Information Systems, Information Systems Department, Faculty of Commerce & Business Administration, Helwan University, Cairo, Egypt.  CHAPTER (3) Project Scheduling 2  Ch 3. OUTLINE ❑ Introduction. ❑ Gantt Chart. ❑ Work Breakdown Structure (WBS). ❑ Developing Network Diagram. ❑ Construct the Critical Path Method (CPM). ❑ PERT (Project Evaluation & Review Technique). ❑ Project Crashing. 3  Network Diagram ❑ Network - Graphical Portrayal of activities and events. ❑ Network Diagram - is a Schematic display of the Project’s Sequential Activities and the Logical Relationships between them. ❑ Shows Dependency Relationships between activities or tasks in a Project. ❑ Clearly shows tasks that must Precede (Precedence) or Follow (Succeeding) other tasks. in a logical manner (Reasonable Sequence). 4 AOA Versus AON 5 Network Diagram 6 Rules for Constructing a Network Diagram 7  Rules for Constructing a Network Diagram Construction of Network should be based on logical or technical dependencies among activities. 1. Each activity is represented by One and Only One Arrow (Arc) in the Network = (Unique Node); 2. No two activities can be identified by the same head and tail events (a dummy activity is introduced in such situations); 8  Exercise ❑ Develop the Network for a Project with the table below: 9 Answer for Exercise 10  Construct the CPM (Identify Activity Float) 11 Construct the CPM and Identify Activity Float ❑ Following the Completion of the Project Network Plan and the Understanding of activity times (Duration), we think about How Long the Project will take to be Finished and When the tasks will be Planned. This can be addressed by determining the Network's Critical Path Method (CPM). ❑ For this, we need an arrow graph and the timeframe of all the activities. ❑ These Calculations integrate a Forward [ES, EF] and a Backward [LS, LF] Crossing in the Network. 12 Construct the CPM and Identify Activity Float ❑ The Forward Crossing estimations harvest the First Start and the First Finish durations for each activity. ❑ The Backward Crossing estimations render the Latest allowable Start and the Latest Finish durations for every activity. ❑ With the aid of the Examples given, we will illustrate how to calculate the Earliest Start, Earliest Finish, Latest Start and Latest Finish times of different project activities. 13 Construct the CPM and Identify Activity Float Activity Duration [ES, EF, LS, LF] 14  Construct the CPM and Identify Activity Float Scheduling with activity time This information indicates that the total time required to complete activities is 51 weeks. However, we can see from the network that Several of the Activities can be Conducted Simultaneously (A and B, for example). 15 Construct the CPM and Identify Activity Float Earliest Start & Earliest Finish Time ❑ We are interested in the Longest Path through the Network, i.e., the Critical Path. ❑ Starting at the Network’s Origin (Node1) and using a Starting time of 0, we Compute an Earliest Start (ES) and Earliest Finish (EF) time for each activity in the network. ❑ The Expression EF= ES + t can be used to find the earliest finish time for a given activity. ❑ For Example, for activity A, ES=0 and t=5; thus, the earliest finish time for activity A is EF = 0 + 5 = 5 16 Construct the CPM and Identify Activity Float Time Arc with [ES & EF] time 17 Construct the CPM and Identify Activity Float Network with [ES & EF] time for all activities 18 Construct the CPM and Identify Activity Float Network with [ES & EF] time Earliest Start Time Rule: The Earliest Start time for an activity leaving a particular node is equal to the Largest of the Earliest Finish times for all activities entering the node. 19 Construct the CPM and Identify Activity Float Activity Duration [ES, EF, LS, LF] 20 Construct the CPM and Identify Activity Float Network with [LS & LF] time for all activities Latest Finish Time Rule: The Latest Finish time for an activity entering a particular node is equal to the Smallest of the Latest Start times for all activities leaving the node. 21 Construct the CPM and Identify Activity Float Latest Start & Latest Finish Time ❑ To find the Critical Path we need a backward Pass calculation. ❑ Starting at the Completion Point (Node7) and using a latest finish time (LF) of 26 for activity I, we trace back through the network computing a Latest Start (LS) and Latest Finish time for each activity. ❑ The Expression LS = LF – t can be used to calculate latest start time for each activity. ❑ For Example, for activity I, LF=26 and t=2; thus, the latest start time for activity I is LS = 26 – 2 = 24 22 Construct the CPM and Identify Activity Float Slack or Free Time or Float Slack/Float refers to the amount of time an operation may be Postponed Without Changing the Project's Overall End Date. Slack for C= 3 weeks. For Example, Activity C can be postponed for up to 3 weeks (Starting somewhere between week 5 and 8). 23 Construct the CPM and Identify Activity Float Activity Schedule for our Example 24 Construct the CPM and Identify Activity Float Critical Path (CP) What is the total time to Complete the Project (Critical Path)? 26 Weeks if the individual activities are Completed on Schedule. 25  Exercise 1 Calculate the Critical Path 26  Answer for Exercise 1 Developing Network Diagram for all activities D B G L J 27  Activity Schedule for our Exercise 1 The Critical Path is C, J, K, L with a duration of 19 Weeks. 28  Exercise 2 Calculate the Critical Path 29 Thanks! Ahmed Mohamed Abd-Elwahab 30