The Project Management Course: Beginner to Project Manager Course Notes PDF

The Project Management Course: Beginner to PROject Manager Course Notes  Clear your mind PM principles, tools and techniques are Consider most of the things as guidelines and practical very much based on common sense. lessons for you – there is no formula on how best to...

The Project Management Course: Beginner to PROject Manager Course Notes  Clear your mind PM principles, tools and techniques are Consider most of the things as guidelines and practical very much based on common sense. lessons for you – there is no formula on how best to prepare a project plan. This does not mean it is easy, and you do Try not to think in absolute terms – rarely, there not need good preparation to handle a are black and white options. There are often many project yourself. shades of grey in between. 3 Definition of a Project What is a Project? “A project is a temporary endeavor undertaken to create a unique product, service or result.” - Project Management Body of Knowledge PMBOK Guide 5th Ed 4  Characteristics of a Project Has a Delivers a Includes beginning and an end unique output complex activities Projects are temporary initiatives. Each project is “unique” in the Projects include complex This is the main difference sense that it creates something activities, which need time for between projects and the day-to- never done before. Even if the coordination. The complexity day normal business operations output of the project is very comes mainly from the fact that (e.g. production, sales, HR, similar to the one of a previous projects have constraints (limited supply-chain and logistics, IT, project, the fact that it will be at a time and resources) and need to finance and accounting, etc.). different time with different deal with uncertainty (tasks to people makes it distinct. be done in the future). 5  The Triple Constraint in Project Management There are three fundamental factors for each project: Scope = the sum of the activities and work to be performed in order to reach the project goal. In other words, the scope is Scope everything that needs to be done during the project. Time = the available timeframe given for the project to reach its goal. Cost = the resources available for the project. The three dimensions always need to be looked at together because: If a change is made to one of them, one or both the others will change as well Example: you are planning to build a two-floor house (scope) until the end of Time Cost the summer (time) and within a specific budget (cost). If things change and you decide you need three floors to be constructed (scope change), you will need more resources (cost) and most probably more time. Another example would be if you decide you need the house ready before the summer (time change). This would mean you need extra workers to complete the construction faster (cost) and/or you might need to simplify the construction - e.g. skip the interior works (scope). 6  Brief History of Projects and Project Management 2570 BC 1400 1800 1900 2000 The Great The Age of Industrial 20th Century 21st Century Pyramid of Giza Discovery Revolution The Economy development Line. With the increase of production capacity, globalization, competition and technology, the efficient use of resources becomes a key success factor for any business. 7  What creates demand for a project? Business need Example: Reduce companies’ cost to remain profitable. Example: Develop a mobile app as your competitors are introducing one to Market need the market. Customer request Example: A customer who accounts for 30% of your total sales requests you to develop a customized product for them. Legal requirement Example: Any regulation that affects your work / business (e.g. GDPR, Brexit, etc.). Example: A product that will be used by the citizens: kindergarten construction; highway Social need construction; hospitals; etc. Example: Limit emissions; limit the use of plastic; etc. Ecological impact Technological advance Example: Automate manual processes. Projects are often triggered by a “mix” from more than one from the above possible reasons. Who is the Project Manager? Project management costs generally a total between 7-15% of the project’s Total Installed Cost. You can think of the PM as the “CEO” of the project. The accountable person for the project’s success*. *Project success = accomplish the specific goal of the project, within the time and budget constraints upon from the beginning. Why do you need a PM? ✓ To take accountability ✓ To steer people and activities ✓ To handle risks and issues 9  Project Manager Skills In projects, there are different individuals and organizations that need to work in a coordinated manner for the success of the project. As mentioned, the PM is the “face” of the project. He/she is the single point of contact who can answer any question about his/her project, including all works streams and tasks performed by other people. PM is accountable for the end result of their collective work. It might sound easier than it is. So, how to do it? We explained, that PMs have the knowledge, skills, attitude and practical experience to “manage” not only their work, but also the work of the others. In addition, by being appointed as a PM, you are being empowered by the Project Sponsor to take action and make decisions. These skills, knowledge, and attitude are not limited to: Project management and business knowledge: Ability to lead project work, and know-how to address classical project situations; knowledge of the project lifecycle; planning quality; management of project’s critical areas; work with project management tools and documents. Put controls in place to be able to track progress. Business analysis skills; business acumen; awareness and knowledge of the PM industry standards. People and Workflow Management Skills: Efficiently organize project work, and define responsibility and due date. Issue resolution skills; people skills - work with all stakeholders, motivate project team, communicate in a way to create trust among the team members and senior management. Strategy and Leadership Skills: Negotiate, and influence work and stakeholders in the project/program interest; work towards the objectives of the overall program; ensure work is aligned with the overall corporate strategy. Promote the values and benefits of the project/program to the broad organization. These are all central to the PM role. To this, however, we want to highlight a few other characteristics: The attitude, behavior, and professionalism that the PM expresses are very important for the image of the project - the organization’s perception of the work: Attitude and behavior: Positive and goal-oriented attitude, especially during difficult times. Projects are complex initiatives that include various subjects, people and personalities, expectations, and constraints. There can often be competition for resources and tension due to constraints. PM has to be able to handle the pressure and stress that can emerge. In the meantime, take the right decisions and trade-offs. A good PM works well under pressure to keep the project on the path to success. Professionalism: Irrespective of the challenges, a PM is a business professional. As such, they need to act as an example, and show high morale, ethics, and credibility. 10 The development of the skills 11 Project, Program and Portfolio A project is a temporary endeavor undertaken to create a Portfolio Project unique product, service, or result. A program is a group of related projects managed in a coordinated fashion in support of the portfolio. A portfolio refers to a collection of projects and programs Program managed as a group to achieve strategic objectives. А Project Management Office (PMO) is used to name the department, responsible for managing, coordinating and consulting project-related work. Definitions and Terminology Project Sponsor The individual accountable for the overall project success and for obtaining the expected business benefits of the project, usually a senior or executive manager. Key responsibilities: approve the project, provide the needed resources, support the activities, and resolve issues. Project Team The team members are the experts responsible for the actual execution of the work (e.g. developers on a software project). Project Stakeholders All individuals or organizations that can be interested in the project’s work and result and influence it – participants, management, competitors, vendors, clients, and in some cases, the society (e.g. public infrastructure projects).  Project Phases As we defined at the beginning of the course, each project is unique. The specificity of the desired result, the involvement of different people and personalities, different time and circumstances all contribute to separating each project from the rest. Nevertheless, the PM’s discipline has established a common view on how each project evolves from the start to the end. The world’s leading project management professional organization – “Project Management Institute” or “PMI” – has determined projects have five phases (or process groups): 1. 1. Initiation – This is a preliminary phase during which the project foundations are laid by the Project Sponsor. The overall objective, concept, or problem to be resolved is defined. Overall timeline (expected date for completion) and budget are suggested. These are all documented in the project’s Business Case. A Project Manager is identified and assigned to start working on the project. 2. Planning – Essential part of any project, which often makes the difference. Good planning increases the chances of completing a project within time and budget. During this phase, the PM has to do substantial preparation – to correctly define the work to be done, to organize the way the work will be executed, and to estimate and define timelines, the necessary budget, resources, management attention, etc. PM has to ask the right questions and then work with other project stakeholders to find the needed information. What do we need to do to meet the objective? How will we do everything? Who will do what work? When should the tasks finish, in order not to slow down the next ones? How will we make sure issues are quickly identified? What are the risks that can hurt the project? How to make sure we don’t spend more dollars than needed? Which people are expected to cause problems? How do we keep the project safe from them? And there are many other questions. The way the PM will answer those questions is key. It can maximize the chances of meeting the project goal, but, if not performed well, it can expose the work to many additional risks and create an environment of insecurity. Planning = also your strategy on how to win. 3. Execution – This is the phase during which the actual project work is performed, the deliverables are created. In construction projects, this would include constructing the building or infrastructure. In process improvement projects, these would be all actions aimed at identifying the opportunities and implementing the changes in the organization. In software development, this would represent coding and programming, etc. The key role of the PM will be to keep the project environment good, motivate the team, and help to resolve any issues that come up along the way. 4. Monitoring & Control – This phase goes hand in hand with Execution. The project manager uses the control systems developed to track if all project workstreams are progressing with the speed and quality to be completed within the timeline and budget. If there are any slowdowns, delays, gaps, these will be identified and the manager will have to take action to “fix” them. 5. Closure – After all work is done and all deliverables are finalized, PM still has some work to do to formally complete the project. This would include doing a formal handover of the project product to the department or people it was designed for. Formal approval and sign-off have to be given by the Project Sponsor, confirming the mission describer in the initiation phase has been achieved. Last but not the least, the PM has to gather the team and stakeholders into a meeting to discuss the Lessons Learned – what went well, what did not go that well, and what can be done better during the next similar project. Continuous improvement is also very important in projects, as PMs constantly learn new things and build on their expertise. Formally documenting the feedback for the project is a key driver of this process. Execution Initiation Planning Closure Monitoring & Control 14 Initiation Phase Steps Define the Review the Outline the Conduct Assess risks Assign a goal of the business project feasibility and project project case scope study expectations team All projects are created for a reason. Someone A feasibility study is used to determine the The project sponsor identifies a need or an opportunity and devises a viability of the project idea. Each project is issues a project project to address that need. tested in five areas: charter to authorize A business case is created to define the problem or ✓ Technical feasibility the existence of an opportunity and identify a preferred solution for ✓ Economic feasibility approved project and implementation. ✓ Legal feasibility to appoint a project ✓ Operational feasibility manager. Resources ✓ Scheduling feasibility are preassigned to A project sponsor determines if the project is work on the project worth undertaking or should be terminated planning. through a project selection process. 15 Project Selection PROJECT SUGGESTIONS PROJECT Can it deliver expected benefits? VALIDATION Do we have the resources? Can it be executed? PROJECT SELECTION VALIDATED PROJECT 16 Project Charter The project charter is “a document issued by the project sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities.” - Project Management Body of Knowledge PMBOK Guide 5th Ed 17 Characteristics of a Project Charter Provides a big-picture view of Gives the PM authority to use Defines objectives and success the project organization’s resources criteria for the project A project charter is a broad A project charter serves as a The project objective is clearly statement of the: contract between the project stated following the SMART ✓ Scope sponsor and the project protocol. ✓ Major milestones manager. It defines the This defines the success criteria ✓ Stakeholders authority of the project that should be met for the ✓ High-level assumptions manager to spend money and project to be completed ✓ High-level risks to commit resources. successfully. ✓ Project constraints The project charter specifies These components are who should endorse the specified in detail during the completion of the project. planning phase. 18 Project Phases Execution Initiation Planning Closure Monitoring & Control 19 Planning Phase Planning is thinking and deciding how to do something and only then do it, instead of doing it directly. It is the process of analyzing, evaluating, deciding and organizing the activities in advance. 20 Planning Phase Lack of proper planning and control results in delays, higher cost and/or lower quality of output. Example: Sydney Opera Expectations: 6 years, $ 7 Million. Reality: 16 years, $ 102 Million. 21 Planning in Project Management Planning is often underestimated – People think PM’s effort has to be during Execution, but it is the other way around. It is yet another case following the 80/20 rule: If PM spends a lot of effort in planning, this will pay off with much fewer thins to run after in the long execution phase. Project Manager’s Effort – popular belief: Project Manager’s Effort – best practice: 22 The Three Fundamental Steps of Planning 1. 2. 3. Define Evaluate Choose & confirm the goal options best option 23 Role of the PM in the Planning Phase PM plans for: The more things the PM What we know and can control plans for, the higher the chances to complete the project with success – What we don't know and can't control meet the goal, timelines, and budget. 24 Cost of Change As time passes, the cost of change increases significantly. Example: Your scope is about the construction of a shopping mall. If a year after the construction has started, the owners decide it needs to be used as a residential building. The extra time and resources to transform it would be enormous. If, on the other hand, the same request comes during the planning stage, before construction has even started, the cost of the change would be much smaller (maybe a few weeks of planning). Cost Of Change (extra time, budget, and wasted resources due to the change) Initiation Planning Execution Closure Time M&C 25 Planning For Your Planning What knowledge do I have about the required work? Is it sufficient to build a comprehensive plan? What knowledge or specific expertise do I lack to make a good estimation of the work? Who can support the planning for this area? Have I or any of my colleagues worked on a similar project? Are all expectations for the end result clearly understood by everyone? How much time do I need to put all pieces together and complete the project plan? 26 Non-straightforward Process How to “extract” the needed information from a stakeholder, expert, etc.? This can be a difficult process, as the information the PM is looking for cannot be directly understood (in some cases). We can call this a non-straightforward process. Tips: When organizing a meeting/interview/workshop to start planning, make sure you create a good agenda, including the goal of the meeting, and a list of all topics that need to be covered and questions to be answered. Then, follow the list during the meeting to ensure you exit the room with the needed answers, or in case the answers could not be given, with a view on who can provide the needed answers. Although PM does not need to be a real “expert” in all fields, they must be able to understand how things operate in each field, in order to correctly manage the project work. Along with the fact that in each project, there are many parts to be planned and executed (as we will see now in the following lectures). It is the PM’s core responsibility to perform integration management (PMI quote) or, in other words, be successful in managing simultaneously all different aspects of the project and factoring all interdependencies. 27 Scope 28 Scope: Broader Than Just The "Product" Of The Project All project outputs Any additional work that has to be done, Scope = (product, service, result) + in order to complete the project outputs Example: Construction project. You need to build a house. However, there is an old smaller house on the land, on which you want to build the new one. Although the old house is not your project output, it has to be demolished and removed so that you can achieve and create your project output, which is the new house. The Scope will include the activities for demolishing and removing the old house as well. How to plan your Scope? 1. Analyze the available 2. Gather detailed 3. Document the scope information about the requirements and project scope expectations  Work Breakdown Structure The goal of the project needs to be broken down into more details so that the project manager and project team can plan and execute. If the goal is to “increase sales by creating a showroom to exhibit new cars”, this information is too high-level and vague, hence it’s not useful for planning purposes. The project manager has to transform this information into smaller pieces. A very useful exercise is to design the Work Breakdown Structure. The Work Breakdown Structure (WBS) is a visual representation of the project’s Scope. Starting from the project goal (high-level), you go down a level and define the major groups of activities or “work streams”. This could be “build a one-story showroom of 500 m2”, “manufacture six new cars”, or “recruit ten employees to work as sales staff in the showroom”. Then, add one more level below each work stream, until you reach a task level. The task needs to be big enough to be explained easily and managed by one person. Example: “Put a safety fence around the construction field”. Project Goal Work Work Work Stream 1 Stream 2 Stream 3 Task 1.1 Task 1.2 Task 2.1 Task 2.2 Task 3.1 Task 3.2 The sum of the detailed tasks is often referred to as an “Activity List”. It will be used as the “skeleton” of the Project Plan. 30 Time 31 Project Schedule And Timelines A C B D 4. Assign the start & end dates Task A + 3. Sequence tasks Task A 2. Add buffers 1. Estimate the duration of each task 32 Estimate Durations Planning Pitfalls: Optimism bias: focusing on the “positive” future scenarios and missing to consider the “not so good ones”. If the negative scenarios are forgotten during planning, this will come as a surprise during Execution. Planning is done for future events, so we need to limit our own biases. Illusion of control: being overconfident that you can control the future events. 33 Estimate Durations 3 Point Estimate Step 1: Define three scenario points: Optimistic case Normal case Pessimistic case Step 2: Apply the three-point estimate formula to identify the Estimate (E): O + 4N + P E= 6 34  Buffers The amount of buffer to be added is strictly dependent on the specific case at hand. Manage on ad-hoc basis. Factors: Positioning Buffers: High On each task Level of uncertainty Task A + Task B + Task C + Criticality of the task Buffer On groups of tasks Task A Task B + Task C + Owner of the task (Experience, track record) On the whole project Low Task A Task B Task C + When the task is uncertain (e.g. doing it for the first Tips: time), more critical compared to the rest or the Owner Avoid big buffers on single tasks (Parkinson’s law). Avoid putting the whole buffer in one place at the end of of the task is less experienced, a bigger buffer should be the project. used. Aim to use buffers after groups of tasks and avoid labeling them as “buffers”. You can use “Validation” or “Checkpoint”. 35 Sequence Activities Logical Resources External Soft Logic-based Limited Regulations Such that the correlations resources put PM decides to Dependencies Physical two tasks in Seasonality apply dependency dependency Other factors Subjective Finish To Finish To Result: Finish Start (FS) (FF) Identified dependencies Types Start To A B Start To Finish Start (SS) (SF) 36 Critical Path Method 1/2 Critical Path Method: Based on the available information (Tasks, Durations, Dependencies), create a network diagram with Boxes and Arrows. Also called PERT Chart. Identify the longest path from Start to Finish. Critical Path: Benefit: The longest chain of Indicates the fastest dependent activities in possible way to complete the project. the whole project 37 Critical Path Method 2/2 How to perform the Critical Path Method: 1. Use the information available: Activity List; Durations; Dependencies 2. Build the network diagram, by drawing Boxes with Task Name and Duration and Arrows to indicate dependencies: C F J 4 weeks 3 weeks 2 weeks A B D H L 1 week 2 weeks 4 weeks 2 weeks E I K 1 week 3 weeks 1 week 3. Calculate the Longest chain of dependent tasks (the Critical Path). 38 Start and End dates: the Gantt Chart To the left (Y-axis), the activities are listed (you can take from the Activity list / WBS). At the top (X-axis), a calendar is inserted. It can be with days, weeks or months, depending on what you find most convenient for the work you are planning. The tool is a bar chart (horizontal), where each bar is limited by the start and the end date of a specific activity. The length of the bar represents the duration of the activity. All activities are listed on the side, and to the right, calendar days are displayed. With this graph, it is very easy to represent the activities and get a good feeling about the duration and when each one is to be executed. Can be used for monitoring, but is also extremely helpful during the planning phase. Strongly suggest using it when forming the project schedule. Month September October November December January February Date 9/3 9/10 9/17 9/24 10/1 10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17 12/24 12/31 1/7 1/14 1/21 1/28 2/4 2/11 2/18 Activity week n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 foundations prep works position the door frames showroom floor works build walls install bathrooms build roof install doors and windows install lights and complete ceiling works Install pipes (utilities) Paint outside walls decorate and position interiors recruit personnel train personnel select and order cars for the showroom delivery of cars Position cars in the showroom 39 Building the Project Plan Project Plan (or Schedule) Activity List Durations (incl. buffers) Task A + Critical Path Dates (Start & End) 40 Cost 41 Project Budget 4. Determine the project Budget. Consolidate the Task A estimations and calculations 3. Schedule the expenses, performed. by putting expected dates (look at the Gantt chart). It 2. Estimate the cost of is very important to know each task/deliverable. Add when the financial resources 1. Identify the cost- buffers and understand will be needed (Time value generating activities from uncertainties. of money and Approval the project. Start with the Buffers for the Cost should process). WBS or Activity list created. be bigger than those used for the Time. 42 Project Budget 1/2 Budget Estimations: Gather information (price is available; alternatives; gathering information through quotations [RFQ, RFP]). Calculations (lump sum; time and materials; units) Buffers – Usually, bigger than the Time buffers, because it is easier to allocate additional time and harder to get some more money Timing the Budget – plan and indicate WHEN an expense is expected to take place (Time value of money; Financial processes) 43 Project Budget 2/2 If the project has more work streams and more types of costs to incur, it is recommended to have a dedicated budget for each separate work stream or cost type. Consolidate the budgets, displaying the totals per month. This will be the overall budget per month (or quarter or week, depending on the needs). 2018 2019 Total Budget Project Overall Budget Sep Oct Nov Dec Jan Feb Mar Apr (per activity) foundations prep works $ 23,000 $ 23,000 position the door frames $ 1,000 $ 1,000 showroom floor works $ 10,000 $ 10,000 build walls $ 2,000 $ 27,000 $ 15,000 install bathrooms $ 7,000 $ 13,000 $ 20,000 build roof $ 67,000 $ 16,000 $ 83,000 install doors and windows $ 21,000 $ 21,000 install lights and complete ceiling works $ 24,000 $ 24,000 Install pipes (utilities) $ 16,000 $ 11,000 $ 27,000 Paint outside walls $ 17,000 $ 7,000 $ 24,000 decorate and position interiors $ 7,000 $ 10,000 $ 17,000 recruit personnel $ 4,000 $ 3,000 $ 7,000 train personnel $ 5,000 $ 5,000 select and order cars for the showroom $ 3,600 $ 3,600 delivery of cars $ 11,000 $ 11,000 $ 11,000 $ 33,000 Position cars in the showroom $ 4,000 $ 4,000 Total Budget (per Month) $ 39,600 $ 38,000 $ 37,000 $ 139,000 $ 61,000 $ 32,000 $ - $ - $ 302,600 44 Planning - Resources: Procurement 1/2 It is often the case that an organization will not have the required resources that a project needs. Therefore, the PM here has the responsibility to procure what they need externally. By this point, they should be very familiar with the details of the contract in order to properly assess the costs and the risks of any transaction. They must be aware of timelines, due dates, and quality levels of all resources they are procuring. There are three main types of contracts that we will run through now. It is up to the PM to find the best contract because it is their main tool for keeping track of vendor work and behavior. So, the first one is called fixed price and it is the simplest type of contract. The vendor commits to doing the work for a set amount within a certain timeframe. The pros of this is that any additional spending will be taken on by the vendor – no risk for you. Perfect! Or is it? You see that they are aware that with this kind of contract, if the costs are higher than expected, then they will incur losses. Therefore, there is a chance they will put a big buffer on the initial price. 45 Planning - Resources: Procurement 2/2 Or if they find that costs are getting too high, they may try to decrease the scope or the quality in order to compensate. So, know that this is beneficial to use when the scope is clear to all parties, but a good analysis is important prior to make agreements. The second type is called Cost Plus – This is where the buyer agrees to pay any cost incurred by the vendor performing the work. This can be a fixed additional fee, a variable fee, or a mix of the two. Either way, it gives the buyer the flexibility to adapt the spending in accordance with the work being done. But with that comes the risk of covering all extra costs, along with the chance that the vendor may keep the work going longer than needed or add extra items to the ‘to-do list’. This contract makes more sense if the scope is not easy to define. But proper controls need to be put in place to ensure money is only spent on things essential for the project. A fancy new haircut for the vendor doesn’t fall into this category. The third type of contract is called time and materials and it’s a mixture of fixed price and cost-plus. It’s where the vendor charges the buyer an hourly or daily rate. For example, when consultants or technicians charge per day of their services. It’s another good contract to jump into when the scope is not clear, and the work is more labor-based than material-based. It runs a similar risk to the cost-plus contract, but that just means the same countermeasures can be taken. Well, there we have it – the three types of contract, but there can be many variations and, of course, they can all be tailor-made. The PM could add incentives for the vendor to complete work faster or to better the quality. The contract can even include inflation if the project spans a long time. 46 Human Resources 1. Define the needed resources: Engineers, IT Developers, 2. Estimate the effort needed Business Analysts, etc. Number of team members Start with the Scope – list of activities. The PM needs to understand what kind of support is needed to execute the project. PM has to identify all needed experts to perform the work – developers, engineers, analysts, etc. This depends on the scope of the project. 3. Validate resource availability Time that can be dedicated 4. Define roles and responsibilities Vacations, bank holidays (see next slides) a) Create a schedule – who needs to do what and when. Use an actual calendar (holidays to be accounted for). Create a simple template (add an example - see next slide). b) Obtain a confirmation from the departments’ heads that each employee can participate in a project. 47 HR: Roles & Responsibilities Standard Form: Role Name Responsibilities Contact Accountable for the project’s success. Project Sponsor Johnson Supports PM in resolving high-level issues. [email protected] Owner of the Budget, Timeline, and Business Case. Approves any changes. Accountable for the project’s planning, execution, and closure. Project Manager Philips Daily management of project’s team and activities. [email protected] Manages resources, risks, communications, and stakeholders. Provides status updates (progress, variance, potential issues, etc.) to the Project Manager. Functional Team Lead – Matthews Supports, guides, and coordinates team members in completing their daily project [email protected] Software Development tasks. Supports other ad-hoc project tasks. Works directly to create the project deliverables (scope). Uses subject matter expertise. Team Member – Henry Provides progress updates, communicates potential issues and seeks support. [email protected] Software Development Suggests improvements. Supports other ad-hoc tasks (e.g. testing, trouble shooting, etc.). The Standard form is simple and easy to use and apply. It is more appropriate for smaller projects with not too many people. You need to document the Role, the Name and the specific Responsibilities (in this field, you need to go in detail). Contact details (e-mail, telephone) are also valuable information to add. Note! Always discuss the responsibilities with the people before you finalize the document. 48 HR: Roles & Responsibilities RACI Matrix: r t r RACI Matrix crosses the specific Activities (Y axis) and sor ager ecto alys ecto er r r ine Spon an D i g an Di g the people involved in the project (X axis). For each ct tM ing et in cti on en Activity / Deliverable roje ojec rket rk u h ief activity, a person can be either: P Pr a a od C M M Pr PMO Marketing Production Responsible: the person actually doing the work Department Department Project Management Accountable: the person that must ensure the task Appoint PM and support project A I I is successfully completed, even if she or he is not Project Planning and Kick-Off C A/R C C the one doing it (Responsible) Weekly Status Report I A/R I C I C R - Responsible Consulted: can be asked to provide advice and Work-Stream 1: Marketing A - Accountable guidelines, based on their own expertise Marketing Study A C R C - Consulted Informed: has to be kept updated on the progress Marketing Report with findings I A C R I of the activity. Usually senior management. Work-Stream 2: Production I - Informed Analyze future capacity needs RACI Matrix is very useful in bigger projects, where I R C more people are involved (bigger project team). Also, Build additional capacity / upgrades I A R in projects where more people work on the same Work-Stream 3: Supply-Chain tasks / deliverables. … Note! When describing Roles and Responsibilities in a project, do not forget any project management related activities. Example: team members reporting on their progress regularly to the Project Manager. 49 Quality “The standard of something as measured against other things of a similar kind; What is Quality? the degree of excellence of something” - Oxford Dictionary In Project Management: Customer satisfaction with the project product, service or result. Defining Quality Requirements: Each project has a Goal. Its output (product, service or result) has to satisfy a specific need of the organization or of the project client (person/organization). To define what is a successful satisfaction of the need, the PM has to be analyzed and written as “quality requirements”. Example: the goal is to produce the fastest and fanciest car on the market, accelerating 0 to 100 km/h in 3 seconds. The Scope is the automobile. The project team delivers the car in the agreed time and budget. The car is luxurious and looks exactly as per the plans. However, accelerates 0 to 100 km/h in 4.2 seconds. The project is not successful. Standard Performance Physical characteristics (Specs) Quality Physical (e.g. Durability, etc.) Low variation in output Requirements Speed (e.g. Website response) Meeting a specific criteria Achieving a result without impacting Scoring; Y/N other functions 50  Quality Planning Review all available information on the project: Project documents 1. Define the Quality Meetings and workshops with the stakeholders Requirements Note: Always involve the project client Lessons Leared For each of the criteria identified, specify the targets to be met. This has to come also from the above process of reviewing the 2. Set Quality Targets standards with the various stakeholders: Process design to ensure “fit for purpose” Define KPIs Training the project team on how to meet the standards Plan the control mechanisms to be used: 3. Plan Quality Control “QC” Plan how/when/who to measure 4. Finalize the Quality plan and Perform Perform variance analysis to ensure KPIs are on target Quality Control (Monitoring & Control phase) Take actions, fix issues and bring parameters back on track Note: After planning Quality, always check the changes triggered for other fields that are already planned (scope, cost, time, roles & responsibilities, risks). 51  Expectations 1/2 As a PM, it is important to be able to understand human nature and psychology. A project involves a lot of people, and if expectations are not the same across the board, some of the people involved will be disappointed that the project didn’t meet their expectations. An expectation is the psychological picture we create in our heads for a future event. And, depending on the situation, it can be easy to set expectations and predict outcomes. When given more room for interpretation, we are likely to fill our imagination with our subjective views and desires. The more people are imagining how something could end up, the more chances that expectations will vary. 52 Expectations 2/2 The process of getting everyone on the same page is done mostly when defining the scope, during workshops, and when meeting with stakeholders. The PM must be able to clearly communicate their expectations and hold sessions in a way that encourages stakeholders to share their expectations in order to identify any gaps. Some example questions the PM could ask are: How do you think the final product of the project will be useful to the organization? Do you believe something can be added to significantly improve the result? Do you agree with the way the scope is described in the project documents? There are many other questions because the more thorough, the better. The PM’s job of leveling everyone’s expectations does not stop there. Not only must the project manager keep all stakeholders up to date during the various meetings carried out through the scoping phase, but they must also keep in constant communication for the whole project as any changes occur. The whole idea behind keeping everyone in the loop, constantly, is to eliminate any opportunities for the stakeholders’ imagination to run wild. 53 Assumptions An assumption is when something is believed to be true when there is no definite proof. While the planning process aims to clarify all areas of a project, we must assume that there are areas that we cannot be certain of. For example, we cannot be 100% sure that all team members will be as productive as they usually are, but we have to assume they will. Of course, a PM will be more certain of their assumption if they have worked with the team before, but it is still an assumption. When a PM has more past data, the safer their assumptions will be. Imagine Lamborrari needs to hire a certain number of mechanics to deal with any problems the show cars may have. You, as the PM, could look at previous data where a similarly trained mechanic from a previous showroom project was able to properly care for five cars. You plan to have 20 cars in your showroom, therefore you can assume you will need to hire four mechanics. While there is still a level of uncertainty, it is a lot less than if you had no previous data. 54 Risk Planning What is a Exposure to the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving Risk? such a possibility. Oxford English Dictionary More difficult to plan than the cost, time, or scope. You PM Context: don’t see them. They are the result of the uncertainties that expect us in the future. Risk Management – What to do: 1. Identify the project risks 2. Analyze the risks 3. Develop risk response strategies 55 Risk Planning Review all available information on the project, in order to identify risks: Project Documents (Project Charter, Business Case, WBS and Activity List, Quality Specifications & Requirements) Lessons Learned 1. Identify the Project Risks Consult relevant stakeholders and experts. Perform: Meetings (one-to-one interviews) Workshops (brainstorming sessions) Severity – What would be the impact of the event on the project scope, budget, and timeline? Standard is to rank by using three levels – Low, Medium, High. Of course, this can be customized according to the specific 2. Analyze the Risks needs: e.g. impact from 1 (very low) to 10 (catastrophic event). These can also be translated into expected impact on the project (e.g. “two months Two characteristics to be delay” or “up to $40K financial loss”, etc.). evaluated for each risk Probability of occurrence – How likely will the event actually happen? You % can use a standard scale (Low, Mid, High) or a more sophisticated one, depending on the project’s needs (e.g. probability %). Eliminate the risk (e.g. avoid doing the risky task) 1) Mitigation Reduce the severity 3. Develop Risk Response Reduce the probability of occurrence Strategies 2) Contingency Define what the project team needs to do to limit the damage, if the risk becomes reality (Plan B) Document the findings and decisions 56 Risk Log: example Probabilty of No. Risk Description Severity Occurrence Contingency and Mitigation Actions (incl. "Plan B") Risk of People Injuries during construction works. Impact 1) Instruction of all workers on how to prevent incidents; to people health. Injuries during construction 2) Provide full equipment and clothing (helmets, gloves, boots, etc.); 1 Possible financial impact in terms of fines, due to Medium Medium works 3) Shift leaders to control and check each day if workers follow the requirements; miscompliance with regulatory requirements (up to 50 4) Insurance coverage for all workers; K$ per person). No control over weather (Probability of Occurrence). PM team can only act on decreasing the Severity (damage control): 1) Prepare for bad weather conditions and have a Plan - identify a place to store Risk of bad weather conditions during autumn to Bad weather to interrupt equipment that can be damaged (e.g. projectors, insulation materials, etc.). 2 interrupt or slow down construction works and/or High Low construction works damage equipment. 2) When forecast indicates higher risk of heavy rains, store fragile equipment and perform tasks that cannot be impacted by weather (e.g. preparation for follwoing activities). 3) Instruct all workers and shift leads on what to do during such weather; Risk of connectivity issues software-hardware not fully 1) Testing systems as early as possible; 3 Connectivity failures of the resolved before the Opening event. 2) Contract incentives and clauses (phased payment) with vendor; Low Medium Car 3D Visualization effects Impact: Customers will not see the visual effects in the 3) Plan B: In case functionality is not fully ready 2 weeks before Opening day - first days. print paper catalogues for customers (booklets). 57 Change process 1/2 In a project, frequent changes will incur excessive costs, for budget, scope, quality or time. And the PM tries to eliminate as much of this cost as possible with a detailed plan. But a good PM is also not stubborn and will adapt to change. Basically, it is the PM’s job to limit the need for changes on one hand and on the other to manage the changes efficiently in a way that the project could benefit from it. First is what we’ve been doing in the course so far, limiting the potential for change through comprehensive planning. By using the methods that we have been discussing, any PM will miss fewer details in the execution phase and, therefore, will not need to make many changes. If they do need to make changes, a PM should implement a change control process. Before moving to execution, how to manage changes must be agreed upon, and as with most parts of the planning, a process needs to be established. The thing that will start the process is a change being requested and that request needs to be analyzed. What are the benefits of the change? What is needed in order to implement the change and what is its impact on the project? Of course, a formal document must be created to collect this data – a change request form. The PM must understand the proposal, fill in the form, and then send it for approval. Who will the PM send the change request form to? The project sponsor, of course; since they have provided the needed resources, they should also determine if the additional needs are worth it. If the PM has concluded that the change will benefit the project, they must then convince the project sponsor. 58 Change process 2/2 59 Project Phases Execution Initiation Planning Closure Monitoring & Control 60  Execution Execution phase starts with the Kick-off meeting and Scope finishes with the delivery of the last deliverable. Main project manager’s activities during execution are: ✓ Work on the scope ✓ Track progress ✓ Monitor quality, resource usage ✓ Watch out for risks and issues, conflicts within the team Time Cost …and remember: Time is not on your side! 61 The Kick-off Meeting: Objectives Validate project Agree on project Promote the plans governance and project validation points Go through the plans one by Discuss how the deliverables Do your best to have the client one. Explain and answer will be approved and how the and senior stakeholders questions anyone could raise. overall project will be satisfied after the meeting. approved as completed. Then, ask if it is okay to validate it and move to the Define the Success Criteria and next topic. If someone refuses who will “approve” the project to agree, understand why. completion. Usually, this would be the client. Agree on how often the PM has to provide an update on the status of the project. 62 Kick-off Meeting Delivery ✓ Schedule the kick-off ✓ Schedule pre-kick-off, if needed ✓ Prepare presentation Project Manager ✓ Introduce everyone in the meeting ✓ Introduce the project The purpose of the kick-off meeting is to announce the start of the project and to ✓ Promote the project ensure that everyone is familiar with its details and with the people working on it. ✓ Agree on project governance and validation points ✓ Agree on project reporting ✓ Wrap up & follow up 63  Manage Project Work and Project Team Project Manager Be of service to the team and help Gather performance data. them get the work completed. Update the project management plan Remove roadblocks. and project documents. Ensure a common understanding of the Implement changes. project among stakeholders. Keep everyone focused and informed. Work People 64 Manage Project Work The most important things the PM should do: Supervise critical path activities – PM needs to ensure high productivity on these activities. If you get delayed on any of them, you delay the overall project, remember? PM needs to put extra care on: Productivity of the ongoing activity: the work needs to progress at a good rate in order not to get delayed. Productivity needs to be high enough to complete the work on time. But what is Productivity? It essentially is the output you get out of a given input or the ratio between the two (output/input). In a project world, the output are pieces of the scope and the input is essentially time and resources – see, this is again our triangle, but this time put in motion. Available Time and resources will be decreasing and the Scope will become real (see graph). So the PM will need to maintain the productivity high, especially on the critical path. How to measure productivity in projects? Again, it will be different for the different projects (the scope is unique). In construction, the productivity could be measured in constructed stories per month (e.g. two stories per month built). In software development, this can be a number of new functionalities programmed. Whatever it is, PM needs to ensure the rate is good. Readiness of the following activities to start: keeping the best productivity on activity. A high is good, but you can still fail in case the next activity for any reason is not ready to start on time. The upcoming activities in the chain need to start on time (B, C, etc.). PM needs to ask the question – is everything ready to start on time? Example: In the showroom case, for example, let’s say the construction works are progressing on track to be entirely completed (including pipelines, etc.) in the remaining two weeks. However, it turns out there have been some additional discussions on the design of the interiors, and more specifically, the effects around the car podiums and the next activity may not be ready to start as planned (“decorate and position interiors). Look for opportunities to optimize the workflow using your business knowledge, project management experience, and common sense (it can be stronger than you think ☺ ). As the project progresses, the PM and project team become more knowledgeable of the work at hand. Hence, often there are ideas of how to make it better, faster, or both. Is this activity valuable? Are there better ways of sequencing the work – starting more activities in parallel to save some time? Keep asking these questions. Don’t forget other project activities (e.g. legal documents, etc.), the ones that are not on the critical path. Forget? You cannot forget – you have the recipe! If not supervised or underestimated, activities outside the critical path may become part of the critical path (if delayed significantly). 65 Project Manager’s Typical Day The project managers must start their day by looking at two things: Detailed Project Project Diary Plan (Action Log) What is on-going? What are the open actions? Which deadlines are approaching? What activities must start soon? 66 Project Diary (Action Log) Format ACTION - What needs to be done? OWNER - by whom? DUE DATE – by when? The Action Log is supplementary to the project plan and is used to record actions, which occur ad-hoc and are not included in the project plan. Characteristics of Project Diary (Action Log) The Action Log is a formal document. The Project Manager must make it clear to the project team members when an action is added for them. Team members need to commit to each action logged against their name. 68 Project Diary (Action Log) - Example No. Action Owner Due Date Update Project Schedule to reflect new duration of the "recruit personnel" activity. Increase to 11 weeks. If PM pushes the Due Date by 3 weeks, this will be the new Critical path. Hence, PM to 1 Project Manager 4-Feb change the start date, in order to keep the initial buffer: -Change start date to 13-Apr, instead of 4-May. Update project plans … Negotiate and sign an agreement with a new Design agency in the next 2 weeks. Marketing manager 13 to participate the negotiation, in order to ensure the requirements are understood by the new vendor Finance manager Assistant 3-Jun and added to the contract. 14 15 16 17 69 Manage People Project Team Stakeholders ✓ Provide regular updates Before ✓ Prepare the team adequately ✓ Establish and follow agreed communication ✓ Lead and coordinate channels During ✓ Correct and make changes if necessary ✓ Be proactive in the communication ✓ Motivate ✓ Keep key stakeholders engaged ✓ Give feedback After ✓ Congratulate Be the first one to deliver bad news or you may lose your credibility! 70 Project Phases Execution Initiation Planning Closure Monitoring & Control 71 Monitoring and Control In Project Management, the Monitoring and Control phase is basically about analyzing the Actual against the target and understanding early on, through numbers, if something is not working “fast enough” or “well enough”. In other words, measuring project performance against the project plan. The monitoring and control phase consists of 3 key activities: Define Metrics & Targets Collect Actuals Identify any areas in which changes are required Initiate changes where needed 72  Measure Project Performance Metrics & KPIs Target Actual The project manager defines metrics and The project performance baseline is Collection and Reporting of Actuals. PM to key performance indicators (KPIs) to used as a benchmark. establish: measure the project performance. Responsible: PM will predominantly perform the Optimally, three to five KPIs should be tasks, but other team members will also participate. selected for each project. Frequency: data collection has to happen regularly (daily/weekly/monthly) and not only around the end of the project. Variance is the difference between target and actual 73 Measure Project Performance Metrics & KPIs Target Actual Metrics and Targets – For each of the criteria identified, specify the targets to be met. This has to come also from the above process of reviewing the standards with the various stakeholders. Let’s see a few examples of standards in different fields: Construction – most of the quality standards are set by regulation. Here, the standards to be met are many and require engineering expertise to be managed properly. Examples of regulation topics: structural stability, fire safety, air ventilation, drainages, electrical safety, quality of materials, etc. Meeting the quality standards is crucial to the project’s success, as the building may not get the needed authorization documents. Production – defect rate is a popular metric in this area. If the production volumes are 100 000 units per month, the company decides to have a target of less than 50 defective units per month. The target would translate into 0.05% tolerance. As it would cost too much time and money to test all 100 000 units, a sample is selected – let’s say 1 000 units. Out of those, 0.05% would be the maximum number of units with a defect. We will take a deeper look at the last part of the project (Improvement projects, six-sigma). Customer service – let’s say a company has outsourced a call center to a vendor. It will be critical to keeping the customers happy after the shift of service. Here, quality standards can be set for the vendor like calls lost (target 98%); collecting surveys from a customer on satisfaction after each call on a scale from 1 to 5 (target >4). 74 Earned Value Analysis (EVA) Earned Value Analysis (EVA) or Earned Value Management is a tool to measure project performance against all three project baselines. Earned Value Management has three basic elements: Planned Value (PV) Example: Approved value of the work to be completed as per You have a project to be completed in 12 months. schedule The budget of the project is $100 000. Six months PV = Planned % Complete x Budget have passed and the schedule says that 50% of the work should be completed. $60 000 has been spent, but on closer review, you find that only 40% Earned Value of the work has been completed so far. Value of the work actually completed to date EV = Actual % Complete x Budget Planned Value (PV) = 0.5 x $100 000 USD = = $50 000 Earned Value (EV) = 0.4 x $100 000 USD = $40 000 Actual Cost (AC) Actual Cost (AC) = $60 000 There is no special formula to calculate Actual Cost. It is an amount that has been spent 1. Assuming equal distribution of cost (spend the same monthly amount) 75 Variance Analysis The variance analysis gives you information about the project’s progress or health. With variances, you find the difference between two values. The result comes in dollar form. Schedule Variance (SV) Example: = Earned Value – Planned Value We’ve already found that: PV = 50, 000 USD EV = 40, 000 USD AC = 60, 000 USD Hence, Cost Variance (CV) SV = 40, 000 – 50, 000 = -10,000 USD = Earned Value – Actual Cost or the project is behind schedule CV = 40, 000 – 60, 000 = -20, 000 USD, or the project is above budget Variance interpretation Positive is GOOD (ahead of schedule or under budget) Negative is BAD (behind schedule or above budget) 76 Performance Index Analysis The performance index is the ratio between two parameters. This makes it possible to compare projects. SPI and CPI help you analyze the efficiency of any project. Schedule Example: Earned Value Performance Index = We’ve already found that: Planned Value (SPI) PV = 50, 000 USD EV = 40, 000 USD AC = 60, 000 USD Hence, Cost Earned Value SPI = 40, 000 / 50, 000 = 0,8 Performance Index = Actual Cost or less work has been completed than the (CPI) planned work. The project is behind schedule. Variance interpretation CPI = 40, 000/ 60, 000 = 0,7 or the project has earned 0,7 USD for every 1 USD >1 is GOOD invested. SPI: more work is completed than planned The project is above budget. CPI: more money is earned than spent