GPRO Project Management Notes PDF

PROJECT MANAGEMENT: INTRODUCTION GPRO  PROJECT MANAGEMENT Session1 1 PROJECT MANAGEMENT FOUNDATIONS 2 Processes vs Projects 3 Project, program & portfolio 4 Organizational Structures in Project Management ETSIT-UPM...

PROJECT MANAGEMENT: INTRODUCTION GPRO  PROJECT MANAGEMENT Session1 1 PROJECT MANAGEMENT FOUNDATIONS 2 Processes vs Projects 3 Project, program & portfolio 4 Organizational Structures in Project Management ETSIT-UPM 2 GPRO  GPRO ETSIT-UPM 4 GPRO  GPRO: Basics Foundations Planned and controlled 28 “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? 29 For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, 30 saying, ‘This person began to build and wasn’t able to finish. Luke 14:28-30 ETSIT-UPM 5 GPRO  GPRO: Basic Principles Foundations: Project Management Project Management methodologies and techniques started last century. In 1910 Henry Gantt created the Gantt’s Diagram and other tools like Pert Diagram and Earned Value Management methodology appeared. Military industry and Civil Engineering has been industries where the Project Management has evolved lot. Military sector  It needs to control very closely the timing of the actions: time management Civil Engineering sector  it has big budgets: need for Financial/Cost Management Scope Iron Triangle or Project: A unique and organized effort to Triple Constraint in the Project achieve a specific objective, involving the Management coordination of various activities and resources Quality within a defined time, cost, and quality framework. Cost Time ETSIT-UPM 6 GPRO  GPRO: Basic Principles Foundations: Project management ETSIT-UPM 7 GPRO  GPRO: Basic Principles Foundations: Project Management Scope Scope Cost Time Time Cost Time ETSIT-UPM 8 GPRO  GPRO: Basic Principles Foundations: Project Management Is Project Management a global discipline? PMBOK: Project Management BOdy of Knowledge PRINCE2: PRojects IN Controlled Environments ICB: Individual Competence Baseline for Project Management Project management is the application of knowledge, skills, tools, and techniques to project activities to meet or exceed stakeholder needs and expectations. (PMBOK Guide) This group of methodologies, rules and best practices is independent of the industry, they are valid for all type of projects. ETSIT-UPM 9 GPRO  GPRO: Basic Principles Foundations: Project Management What is a successful project?  Fulfill the deliverables of the Project on time and within Budget.  Project success is defined as the appreciation by the various interested parties of the project outcomes. So now the question, which are the stakeholders of a Project? ETSIT-UPM 10 GPRO  GPRO: Basic Principles Foundations: Stakeholders Project Sponsor: is a key stakeholder who provides the necessary resources, support, and funding for the project. They are typically a senior executive or manager who champions the project, ensures it aligns with the organization's strategic goals, and helps resolve any issues that may arise (escalation path). Project Team: The project team is the group of individuals who are responsible for executing the tasks and activities required to complete the project. This team typically includes the project manager, technical experts, developers and architects (among others). Project Management Office (PMO): is an internal department or team within an organization that standardizes project management practices, provides guidance and support to project managers. Clients: Clients are the individuals or organizations that commission the project and are the primary beneficiaries of its outcomes. End Users: End users are the individuals or groups who will directly use the product, service, or outcome delivered by the project. ETSIT-UPM 11 GPRO  GPRO: Basic Principles Foundations: Stakeholders Top Management: refers to the senior leaders or executives within an organization who have the authority to allocate resources and set the strategic direction for projects. They provide overarching guidance, and their support is often critical for the project's success. Supplier: an external organization that provides products or services for the execution of the project.. Regulatory Agencies: Regulatory agencies are government or industry bodies that establish rules, standards, and guidelines that the project must comply with. Investors: they are the individuals or organizations who provide the financial resources necessary to fund the project that expect a return on their investment, either through direct financial gain or through the successful achievement of project objectives that align with their broader interests. Competitors: are external stakeholders who operate in the same industry or market as the project and whose interests may be directly or indirectly impacted by the project's outcomes. They are typically not involved in the project’s execution, but their actions and strategies can influence the project.. Local communities: are stakeholders that represent the people and organizations residing or operating in the geographic area where the project is being executed and can be directly or indirectly affected by the project’s activities. ETSIT-UPM 12 GPRO  GPRO: Basic Principles Foundations: Stakeholders How are the stakeholders? In the Project of cooking “Fried eggs with Bacon”, what is the chicken and what is the pig? Committed resources Involved Resources  "Die" for the project  Believe in the project  Give 100%  Offer their support  Already feel rewarded  Expect a reward  Are fully focused  Need motivation  Are proactive  Are reactive  Stay  Leave ETSIT-UPM 13 GPRO  GPRO: Basic Principles Foundations: Stakeholders Sometimes it is not even about involved or committed resources, it is about stakeholders clearly against the success of the project  the project manager must manage the situation and resources. ETSIT-UPM 14 GPRO  GPRO: Basic Principles Why IT Projects failed? ETSIT-UPM 16 GPRO  GPRO: Basic Principles Foundations: Projects and Processes Within the functions of organizations, there is the Operations Remainder from Business Function/Management, which is responsible for acquiring and Management transforming inputs into products or services that add value to the course organization's customers. Projects have a unique outcome! ETSIT-UPM 17 GPRO  GPRO: Basic Principles Foundations: Projects and Processes We have projects and processes that are not solely related to the Operations Management function. Project management and process management are aspects of management that are not purely vertical, but horizontal or cross-functional. All managers must organize the resources they can use to carry out the necessary activities to produce the expected results. With processes and their management, we aim to improve what we are already doing—results that are standardized and repeatable. With projects, we introduce new results or processes. The result is unique. Projects are processes (as seen in the previous matrix) but processes that have never been done before.  This dramatically increases the difficulty of managing projects. In processes, there is a learning curve, but since projects are unique, we cannot rely on improvement through experience. Projects must be done right the first time.  In processes, defining activities, durations, and resources is easy because we have done them before, unlike the complexity found in projects. That is why we must introduce planning and control tools. ETSIT-UPM 18 GPRO  GPRO: Basic Principles Foundations: Projects ,Program And Portfolio Project: The definition of activities to achieve a unique result, according to time and budget constraints. The project manager is responsible for making things happen, for the delivered outcome, and for ensuring that the client (external or internal) is satisfied. To do this, PM must manage changes throughout the project. Program: A set of related projects where the results/scopes of the projects are interconnected. If there are many projects but no relationship between them, it is a multi-project environment. The program manager does not focus on the individual results of the projects but on maximizing the overall value of the program. Portfolio: The set of projects and programs within a company. The portfolio manager has a strategic role and defines which projects and programs receive funding according to the strategy set by the organization. Good portfolio management enables the execution of the company’s strategy. ETSIT-UPM 19 GPRO  GPRO: Basic Principles Organizations HR Management Activity General Marketing Finance & Sub activity1: Sub Sub activity3: Sales Recruiting activity2: Training Payrolls Management Management Operations HR R&D Management Output ETSIT-UPM 20 GPRO  GPRO: Basic Principles Organizations: Functional structures Management Marketing HR Operations Finance Product A ( o Region A) Product B (o Region B) Product C (o Region C) ETSIT-UPM 21 GPRO  GPRO: Basic Principles Functional structures: matrix approach in Project Management Management Marketing HR Operations Finance Project Projects often require personnel from different functions with varying profiles and capabilities, dividing the work among different units with different leaders. However, Functional Units do not always collaborate efficiently for two reasons: the trade- off/balance between objectives and the conflicts between groups. ETSIT-UPM 22 GPRO  GPRO: Basic Principles Project Management: Functional Structure Operations Procurement Marketing HR Finance M. Project The resources assigned to the project remain in their functional units and continue reporting to the head of the unit. It is the unit head who assigns the project tasks (WP = Work Package) to the resources. Governance is managed jointly by the heads of the functional areas. ETSIT-UPM 23 GPRO  GPRO: Basic Principles Project Management: Task Force Management Operations Procurement Marketing HR Finance M. Project Project Manager (PM) Resources are temporarily assigned 100% to the project, without hierarchical dependence on the functional unit during that period This is the opposite structure to the previous Functional structure ETSIT-UPM 24 GPRO  GPRO: Basic Principles Project Management: Structures Task Force: Functional Structure: Coordination of resources Greater efficiency in the organization, with well- Communication and collaboration among resources utilized resource capacity and more flexibility. Fully dedicated and focused resources Resources remain in their functional unit without Maximizes project effectiveness disruption Possible reduction in organizational efficiency Difficulty in coordinating resources from different Problems in functional areas carrying out routine functions. tasks → organizational tension Communication and collaboration are more Assigned resources may have to reintegrate and challenging. potentially face penalties (promotions, training courses…) ETSIT-UPM 25 GPRO  GPRO: Basic Principles Project Management: Matrix Organization Management Operations Procurement Marketing HR Finance M. Project PM The matrix organization is the most used and aims to combine effectiveness and efficiency. It relies on a Project Manager (PM) who coordinates resources from different divisions, which remain in their functional units with their direct supervisors. In this structure, project managers often struggle to coordinate resources, breaking the golden rule that a resource should only report to one supervisor. If the PM and functional managers are not aligned or do not share the same objectives, it can be very challenging ETSIT-UPM 26 GPRO  GPRO: Basic Principles Project Management: Strong and Weak matrix Organizations Weak Matrix Structure Strong Matrix Structure The Project Manager (PM) interacts with the The Project Manager (PM) belongs to a functional managers, who remain project office and is responsible for the responsible for the resources; the PM acts as project's deadlines, costs, and quality.The PM a facilitator but has no authority over the has more responsibility for managing resources resources. There is an alternative where the PM interacts only with a resource assigned by each division, the Project Leader. ETSIT-UPM 27 GPRO  PROJECT MANAGEMENT: THE ROLE OF PROJECT MANAGER GPRO  PROJECT MANAGEMENT Session 2 5 The Role of Project Manager 6 Problem/Issue Management 7 Conflict Management 8 Multicultural Management 9 Governance ETSIT-UPM 2 GPRO  GPRO: Basic Principles Project Manager Role What is a Project Manager? The person who is responsible for the Project and will be held accountable for its success or failure (PMBOK Guide) This is the one who manages: Stakeholders with different motivations...and even those against the project Resources that report to other functional managers The Iron Triangle and its balance Ensures communication and team motivation from sektionsleiter Interprets the client's requirements ETSIT-UPM 3 GPRO  GPRO: Basic Principles Project Manager Role 8, 5, 4, 9, 1, 7, 6 … What is a Project Manager? Complete the series Which one is 8 -- Eight more important to the client? 5 -- Five And which for 4 -- Four the rest of stakeholders? 9 -- Nine 1 -- One What does really want the 7 -- Seven client? 6 -- Six 3 -- Three 2 --Two 0 -- Zero ETSIT-UPM 4 GPRO  GPRO: Basic Principles Project Manager Role Optimal balance Technical Role Project Specialist Change Manager 80 % technical 20 % technical 20% human relations & management 80% human relations & management If the Project Manager focuses on technical matters, who manages the team? The Project Manager is a managerial and leadership role (Project Management) Skills: ETSIT-UPM 5 GPRO  GPRO: Basic Principles Project Manager: Problem/Issues Management How to deal with a issue during the Project? PM PO PO: Problem Owner ETSIT-UPM 6 GPRO  GPRO: Basic Principles Project Manager: Problem/Issues Management How to deal with a issue during the Project? PM PO PS PO: Problem Owner PS: Problem Solver/Expert ETSIT-UPM 7 GPRO  GPRO: Basic Principles Project Manager: Problem/Issues Management How to deal with a issue during the Project DM C T Q R Option A Option B PM Option C Option D PO PS C: Cost T: Time Q: Quality R: Risk PO: Problem Owner PS: Problem Solver/Expert DM: Decision Maker ETSIT-UPM 8 GPRO  GPRO: Basic Principles Project Manager Role: Conflict Management RATIONAL DISC Precise, Quality focus Decisive Cautious Competitive C D Deliberate Determined Makes things working Makes things happen Questioning Strong-willed Formal Purposeful Analytical Driver RESERVED OUTGOING Caring Sociable S I Sharing Dynamic Encouraging Demonstrative Patient Enthusiastic, optimistic Calm, Relaxed Expressive Amiable Persuavise Organized, Put things in order Loyal, consistent EMOTIONAL ETSIT-UPM 12 GPRO  GPRO: Basic Principles Project Manager Role: Conflict Management RATIONAL DISC Pedantic Abrupt Aggressive D Nit-picking C Suspicious Overbearing Critical Harsh Indecisive Intolerant, Insensitivity Detached Controlling Impatience with details RESERVED OUTGOING Excitable Reliant S I Disorganization Timid, Avoid confrontation Frantic Stubborn Impulsive Hesitant, Indecisiveness Frivolous Reticent, Resistance to change Noisy Flippant EMOTIONAL ETSIT-UPM 13 GPRO  GPRO: Basic Principles Project Manager Role: Conflict Management Conflict Management: Downside Challenges Be logical and detail-oriented: When addressing a conflict, C Overly Critical or Perfectionistic: High C individuals can become present facts and evidence in a logical, organized manner. Avoid overly critical of themselves and others when things don’t meet emotional appeals, as they are more focused on rationality. their high standards. Provide time for analysis: High C individuals may need time to Indecisiveness due to perfectionism: Their need for accuracy and process information before making decisions, so give them time fear of making mistakes can lead to analysis paralysis and an to reflect rather than demanding immediate answers. inability to make decisions. Clarify expectations: Clear and precise communication about Rigidness: They may resist flexibility, sticking to rules and what is expected will help alleviate their anxiety and reduce the procedures even when a more adaptable approach would be likelihood of conflict. better. Downside Challenges Conflict Management: D Overly Aggressive or Impatient: People with a high D profile can Be direct but respectful: High D individuals appreciate directness. become overly aggressive, demanding, or even domineering Avoid beating around the bush or sugar-coating issues; be clear when things aren't moving at the pace they desire. and to the point. Insensitivity: They may overlook the feelings of others, focusing Focus on results: When addressing conflicts, link the discussion to solely on results without considering the impact on team morale. achieving goals or solving problems. Frame solutions in terms of Impatience with Details: They might rush through tasks or what they stand to gain. overlook important details in their pursuit of quick outcomes. Control your emotions: High D individuals may see emotional responses as weakness, so it’s important to stay calm and focused on solutions rather than emotions. ETSIT-UPM 14 GPRO  GPRO: Basic Principles Project Manager Role: Conflict Management Conflict Management: Downside Challenges S Resistance to Change: High S individuals can be highly resistant Be patient and reassuring: High S individuals need reassurance that change is okay and won’t be overwhelming. Take time to to change, preferring the status quo even when change is explain why change is necessary. necessary. Create a safe space: When discussing conflicts, ensure a calm and Avoiding Confrontation: They may avoid confrontation at all supportive environment where they feel comfortable expressing costs, leading to unresolved issues and passive-aggressive their concerns without fear of confrontation. behavior. Encourage small steps: Gradual change is more palatable to Indecisiveness: Their desire to please others and avoid conflict them, so propose smaller, incremental adjustments rather than can make them indecisive and slow to act. drastic shifts Downside Challenges Conflict Management: I Disorganization: High I individuals can become disorganized or Be positive but structured: High I individuals respond well to lose focus due to their spontaneous and enthusiastic nature. optimism, so approach the conflict in a positive manner. However, Impulsivity: They may make decisions quickly without considering be sure to introduce structure to help them stay focused on the all the facts, driven by their emotions or desire for immediate problem at hand. gratification. Focus on relationships: When addressing conflicts, highlight the Avoidance of Conflict: High I people often avoid conflict, importance of maintaining healthy relationships and team choosing to maintain harmony even if it means neglecting real dynamics. This will resonate with their natural desire for connection. issues. Offer clear steps: Help them break down their tasks or issues into manageable steps to avoid overwhelm and ensure they stay on track. ETSIT-UPM 15 GPRO  GPRO: Basic Principles Project Manager Role: Multicultural Management: Feedback  Business world is getting more and more global and very frequently you will need to deal with other cultures. Be aware of this!  Erin Meyer studies the differences in managing multicultural teams, based in 8 dimensions.  As a PM has to be a leader without formal authority, it is essential that PM knows how to manage different cultures Direct Negative Feedback Indirect Negative Feedback “No hard feelings” Using downgrades (maybe, sort of, I guess…) I am not a child “beat around the bush? ” Erin Meyer: Country Mapping, Cultural Navigator ETSIT-UPM 17 GPRO  GPRO: Basic Principles Project Manager Role: Multicultural Management: Communicating Context  In multicultural environments, it's better to align communication to that of Low-Context environments.  When working with Low-Context cultures, it's important to be as explicit as possible  With High-Context teams, ask for clarifications, avoid repeating the message too much, and try to learn to read between the lines Low Context Communications High Context Communications Explicit Implícit Simple Nuances Clear Metaphorical Erin Meyer: Country Mapping, Cultural Navigator ETSIT-UPM 18 GPRO  GPRO: Basic Principles Project Manager Role: Multicultural Management: Leading-Authority figure Low Power Distance Cultures: High Power Distance cultures: It’s ok to disagree with the boss openly even An effort is made to defer to the boss’s in front of others opinion especially in public It’s ok to email or call people several levels Communication follows the hierarchical chain below or above you People are more likely to move to action People are more likely to get the boss’s without getting the bosses okay approval before moving to action If meeting with client or supplier less focus If you send your boss, they will send their on matching hierarchical levels boos. If your boss cancels, their boss also may not come With clients or partners you will be seated & With clients or partners you may be seat & spoken to in no specific order spoke to in order of position Less Distance to power More Distance to power (Egalitarian) (Hierarchical) Erin Meyer: Country Mapping, Cultural Navigator ETSIT-UPM 19 GPRO  GPRO: Basic Principles Project Manager Role: Multicultural Management: Deciding Consensual & Consensual & Egalitarian Hierarchical Top-Down & Top-Down & Egalitarian Hierarchical Consensual Top Down Erin Meyer: Country Mapping, Cultural Navigator ETSIT-UPM 20 GPRO  GPRO: Basic Principles Project Manager Role: Multicultural Management: Confort with silents With overlap A A A B B Without overlap, A A without silents B B A A With silents B B Erin Meyer: Country Mapping, Cultural Navigator ETSIT-UPM 21 GPRO  GPRO: Basic Principles Project Manager Role: Multicultural Management: Cultural, not individuals!! Gap between contries Erin Meyer: Country Mapping, Cultural Navigator ETSIT-UPM 22 GPRO  GPRO: Basic Principles Project Manager Role: Governance Meetings: Operational meetings Regular meetings Internal meeting Tactical meetings Ad-hoc meeting External meeting Management meetings Ways of communication and tools Escalation methods Conflict management & Leadership style Negotiation Leadership without authority … Use of CYA (Cover your Ass Document) ETSIT-UPM 23 GPRO  GPRO: Basic Principles Why IT Projects fail? ETSIT-UPM 24 GPRO  GPRO: Project Management Project Manager Role: Leadership & Managing meetings 1. Heading information a) Day, Time, Location, Participants 2. Purpose of the meeting a) (Describe the agenda or purpose) 3. Agenda item a) (List of items discussed) 4. Decisions/Actions/Information a) D: b) A: c) I: 5. Next Steps a) (summary of what should happen) 6. Next Meeting (if any) ETSIT-UPM 25 GPRO  PROJECT MANAGEMENT: FINANCIAL MODULE GPRO  PROJECT MANAGEMENT FINANCIAL MODULE 1 Financial Management in Project management 1.1 Financial Evaluation of Projects 1.2 Financial Management of the Project 1.2.1 Cost of Change and Uncertainty: Methodologies ETSIT-UPM 2 GPRO  GPRO: Financial Management in Projects ETSIT-UPM 3 GPRO  GPRO: Financial Management in Projects ETSIT-UPM 5 GPRO  GPRO: Financial Management in Projects Financial Project Strategic Decision Evaluation (Top Management, Project Sponsor) PROJECTS Financial Management of the Project Project Manager ETSIT-UPM 6 GPRO  GPRO: Financial Management in Projects Projects as a strategic part The Project as an Investment Projects can be seen as investment decisions made by the company. The company invests in strategic projects with the goal of generating economic returns, increasing productive capacity, improving operational efficiency, or strengthening the company's competitive position in the market The decision to invest in a project depends on various aspects: Strategy (long-term decision) Profitability/benefit (increase in the company's value) Liquidity (ability to generate funds) Associated risks ETSIT-UPM 7 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects Different economic KPIs can be defined to assist in the decision-making process of whether to execute a project or not. Profitability, Benefit-Cost Ratio Payback period NPV / IRR (Net Present Value / Internal Rate of return) … ETSIT-UPM 8 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects Profitability, Benefit-Cost Ratio You finance people make things very complicated: if I spent €100 on the project and sold it for €120, I achieved a 20% return ¡¡Project Manager with no financial knowledge!!! Mmm… Paco-Project Manager Anna - CFO “Numeros Gordos en el análisis económico-financier”, David Méndez, Ed: Cinter ETSIT-UPM 9 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects Payback period If only it were that simple… Smartypants… Let’s analyze these two projects: Finance people! Year Investment 0 1 2 A -100 120 B -100 120 According to your calculation, they have the same profitability… The simplest measure of profitability is the ratio between the profit obtained and the investment used. In both cases, it is 20%. The time it takes to recover the investment is called the Payback Period. In Project A, it is 1 year, and in Project B, it is 2 years. Logically, the higher the profitability and the shorter the Payback Period, the better the project.. “Numeros Gordos en el análisis económico-financier”, David Méndez, Ed: Cinter ETSIT-UPM 10 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects NPV & IRR (1/5) And while we're at it, Mr. Project But you don't Manager, which of the following even know would you prefer? who Gantt is! Year Investement 0 1 2 A -100 110 B -100 120 Simple profitability and the payback period do not take into account the time value of money. For short-term projects, these measures can be used, but for projects that extend over time, they lose effectiveness, although they should always be calculated as an initial measure of profitability. “Numeros Gordos en el análisis económico-financier”, David Méndez, Ed: Cinter ETSIT-UPM 11 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects NPV & IRR (2/5): Discount rate I have a gift…  I’m offering you 1.000 €, do you want it??  And if I offer you €1,100 but not now, rather in a year, which would you prefer: €1,000 right now or €1,100 in a year?  And if it’s €1,500 in a year, what would you prefer then: €1,000 now or €1,500 in a year?  …  There will come a point when, for you, given your current situation (short-term needs, other investment options...), the risk you can take on (such as the possibility of not receiving the money in a year, etc.), both offers will balance out. Let’s assume this happens with €2,000 in a year. At that moment, €1,000 now is equivalent to €2,000 for you in exactly one year. Mathematically, we can express it as follows: Money year 1 = Money Year 0 * (1 + t) 2000 = 1000 * ( 1+ t); t = 1  t = Discount Rate: It is the minimum expected return that an investor/company is willing to accept in order to take on a project. It is expressed as an annual percentage of the investment. “Numeros Gordos en el análisis económico-financier”, David Méndez, Ed: Cinter ETSIT-UPM 12 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects NPV & IRR (3/5) Let’s see another example:  I’ve found an amazing apartment in the Salamanca neighborhood of Madrid for €10M. Being a great real estate expert, and after analyzing the market, I believe it can be sold for €11M in a year.  Unfortunately, I don’t have the money available right now for the purchase, so I approach 3 investors and ask if they would be interested in the project. They respond as follows: Investor Minimum required return for Minimum required the project return for the project= A 5% Discount Rate B 10% C 20%  With the discount rate they have provided me, I can calculate what the future €11M in one year represents in present value: Investor Discount Rate Present Value of 11M€ A 5% 10,47 M€ B 10% 10 M€ C 20% 9,16 M€ “Numeros Gordos en el análisis económico-financier”, David Méndez, Ed: Cinter ETSIT-UPM 13 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects NPV & IRR (4/5) NPV (Net Present Value) is defined as the sum of the expected cash flows, discounted to present value, minus the initial investment Investor Discount Rate Present Value of 11M€ NPV A 5% 10,47 M€ =10,47 – 10 = 0,47 M€ B 10% 10 M€ =10-10 = 0 M€ C 20% 9,16 M€ = 9,16 – 10 = -0,83 M€ If the NPV is positive, the project will be accepted. With a negative NPV, the project will be rejected.  A negative NPV doesn't mean that the project is incurring losses! It means that the project doesn't meet the minimum expected by the decision-makers (Management, stakeholders…)! 𝐶𝐹 Net Cash Flow Neto period i 𝑁𝑃𝑉 = −𝐶𝐹 + (1 + 𝑘) Initial Investment Discount Rate “Numeros Gordos en el análisis económico-financier”, David Méndez, Ed: Cinter ETSIT-UPM 14 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects NPV & IRR (5/5) The Internal Rate of Return (IRR) is the expected return of the project. It is the discount rate that makes the NPV equal to zero. 𝐶𝐹 𝑁𝑃𝑉 = 0 = −𝐶𝐹 + (1 + 𝐼𝐼𝑅) “Numeros Gordos en el análisis económico-financier”, David Méndez, Ed: Cinter ETSIT-UPM 15 GPRO  GPRO: Financial Management in Projects Tools NPV (Net Present Value https://s3.amazonaws.com/he-assets- prod/interactives/110_npv/Launch.html ETSIT-UPM 16 GPRO  GPRO: Financial Management in Projects Tools NPV (Net Present Value https://s3.amazonaws.com/he-assets- prod/interactives/110_npv/Launch.html ETSIT-UPM 17 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects Summary: Evaluation methods  Profitability: Benefit-Cost Ratio Easy and Simple Does not consider the time required for the project  Payback period Easy and Simple Does not consider the entire duration of the project, only when the return on investment occurs Does not account for the change in the value of money over time Does not measure the project's profit, it's more focused on reviewing risks, liquidity, etc.  NPV & IRR Easy to apply Considers the change in the value of money over time Shows the profitability of the project ETSIT-UPM 18 GPRO  GPRO: Financial Management in Projects Financial Evaluation of Projects Summary: methods and formulas  Profitability Profitability = ∑  Payback Period PBP = t => ∑ 𝐶𝐹 = 𝐶𝐹 𝐶𝐹  NPV 𝑁𝑃𝑉 = −𝐶𝐹 + (1 + 𝑘)  IRR 𝐶𝐹 𝑁𝑃𝑉 = 0 = −𝐶𝐹 + (1 + 𝐼𝑅𝑅) ETSIT-UPM 20 GPRO  GPRO: Financial Management in Projects Project Management: Cost of Change and Uncertainty Considering the project as a series of decisions we make, we can characterize it by two dynamics that all projects have: Cost of change and uncertainty. Cost of Change: Cost & Time This is not the project cost curve; it is the cost The costs and time required of change as the project to introduce changes grow progresses more than linearly as the project progresses. Project There is a point in every project after which major decisions cannot be made because the impact on cost and time is too great. ETSIT-UPM 21 GPRO  GPRO: Financial Management in Projects Project Management: Cost of Change and Uncertainty Uncertainty: When the project begins, we know (or should know) what we want to achieve, but not always how to achieve it. In many projects (especially highly innovative ones), we have no prior experience, and we must assume that we will make decisions that could be wrong Cost & Time At the beginning of the project, we have a very high level of uncertainty, while by the end, we usually know how we should have done it. Similar to the Cost of Change scenario, there is a point where we couldn’t have Project known that we had done something wrong. ETSIT-UPM 22 GPRO  GPRO: Financial Management in Projects Project Management: Cost of Change and Uncertainty Window of Opportunity: Combining both dimensions, we can conclude something very interesting and not necessarily intuitive: considering the total duration of the project, there is a window of opportunity, which is the actual time frame where we can modify the project. Cost & Time  At the beginning, there isn’t enough Without Cost and Time for knowledge to change potential wrong knowledge Window of change very high decisions. Opportunitty  At the end, even though we have the knowledge, we can’t change decisions due to the impact on cost/time. Project The Project Manager must consider these effects, as they can greatly impact the project.  One of the main objectives of the Project Manager is to try to extend this window of opportunity. ETSIT-UPM 23 GPRO  GPRO: Financial Management in Projects Project Management: Cost of Change and Uncertainty Methodologies: There are basically two strategies: 1. Act on the uncertainty curve: we can reduce the uncertainty curve, “Front-Loaded or Early Load”. More efforts and resources are focused Cost & Time at the beginning of the project, aiming to identify risks and uncertainties, making changes early in the project when their impact on cost/time is lower. Project 2. Act on the cost of change curve: we can reduce the cost of change curve, making it lower in the later phases of the project, “Flexibility”. Cost & Time It allows for the introduction of significant changes even near the end of the project. Project ETSIT-UPM 24 GPRO  GPRO: Financial Management in Projects Project Management: Methodologies Cost & Time Project Methodologies: These two different methodologies lead us to basically two models in Project Management:  Front-Loaded  Stage-Gate Model  Flexibility  Agile Model ETSIT-UPM 25 GPRO  GPRO: Financial Management in Projects Project Management: Stage Gate Model(1/2) During the 20th century, NASA and other institutions introduced and improved the Stage- Gate Model. The project is divided into fixed sequential phases. After each phase, there is a Stage or Gate where the decision is made to either continue or abandon (Go/Kill Gate) Phase Phase Phase Phase 1 Gate1 2 Gate2 3 Gate3 4 $ Decisions made in one phase should not be changed in subsequent phases → This is also called (for example, in software development) the Waterfall Model. When the water moves to the next phase, it cannot go back Analysis Design Development Testing Maintenance ETSIT-UPM 26 GPRO  GPRO: Financial Management in Projects Project Management: Stage Gate Model(2/2) This model is based on Front-Loading, which allow: Making decisions at the same time with a lower level of uncertainty, or Identifying changes earlier and implementing them at a lower cost Cost & Time We can act in three ways to achieve Front- Loading: 1. Apply standard, shared, and proven planning Team Composition: and control techniques multidisciplinary and 2. Involve stakeholders heterogeneous teams Project 3. Anticipate knowledge creation Anticipate stakeholders involvement Re-use of Knowledge Knowledge creation ETSIT-UPM 27 GPRO  GPRO: Financial Management in Projects Project Management: Agile Model (1/3) At the end of the last century, turbulent environments emerged, undermining the Stage- Gate Model. Turbulent Environments → High probability that external dynamics will impact the project. These dynamics are usually related to the market or technology. In sectors with turbulent environments, uncertainty does not decrease monotonically as the project progresses. The Stage-Gate Model requires 'freezing' the concept as early as possible. There is a response time between defining and designing the project and its execution, and this time, in turbulent environments, is a risk because changes may force us to go back to previous stages and start over. The concept of Flexibility is introduced: the ability to make changes in the later stages of a project while limiting the impact on time and cost. Flexibility does not affect the uncertainty curve but rather the Cost of Change curve, especially in the later stages." ETSIT-UPM 28 GPRO  GPRO: Financial Management in Projects Project Management: Agile Model (2/3) The reduction of the Cost of Change through Flexibility can be achieved by 4 drivers: 1. Agile Processes: Work is done in iterative and short processes. Activities should overlap rather than be sequential 2. Redundancies: Different alternatives are explored to be prepared for potential challenges. We do more than the “minimum work”. 3. Overqualification: We choose highly skilled and competent resources, as this allows us to work in an agile manner. Resources that seek solutions, work well in teams interacting with others, and benefit from different points of view. The team works proactively, seeking opportunities. 4. Modular Architecture: The final project is delivered by the sum of its different parts (components) and their interfaces/relationships ETSIT-UPM 29 GPRO  GPRO: Financial Management in Projects Project Management: Agile Model (3/3) Flexible methodologies aim to minimize response time, so that in turbulent environments, the company has the ability to react even at the end of the project. The flexible methodology changes the cost commitment approach of the project: the base cost of the project will be higher than in a Stage-Gate methodology (we do not try to anticipate challenges, risks, and potential limitations), but if something changes in the turbulent environment, the project will not be affected in terms of time and cost. Therefore, if uncertainty is low or somewhat predictable, the Stage-Gate model remains the most efficient management model ETSIT-UPM 32 GPRO  GPRO: Financial Management in Projects Project Management: Hybrid Model The flexibility of software development is a limitation when applying it to other types of projects, but the advantages of agile methodologies have driven its expansion. The most followed model is a two-level approach: A higher layer (strategic layer) that follows the Stage-Gate model A second, more operational layer, which follows the agile philosophy. Clients and users need to be involved in all phases, unlike the traditional Stage-Gate model where the early phases were less transparent to clients. There are limitations (difficulty in documentation, resource allocation, lack of agile culture, etc.). The most critical one is that resources are being asked to work with both mindsets at the same time! ETSIT-UPM 33 GPRO  Life Cycles of a Project. Kanban Workshop Project Management Máster Universitario Master’s Degree in Telecommunications en Ingeniería de Telecomunicación Engineering  CONTENTS OF THE TOPIC Project Life Cycle and Types Waterfall Project Management Agile Project Management Kanban Workshop Project Management| MUIT | ETSIT-UPM 2  PROJECT LIFE CYCLE Set of Stages in which the Project is Divided to Better Manage and Control It. For Example: Project Management | MUIT | ETSIT-UPM 3 TYPES OF PROJECT LIFE CYCLE Four Types of Project Life Cycle, Decided Based on Their Characteristics and How They Are Approached: Predictive. Sequential project stages. Suitable for projects with low complexity and uncertainty. Iterative. Allows feedback on unfinished work to improve and modify it if necessary. Incremental. Provides finished deliverables that the client can use immediately, with results accumulating during the project execution. Agile. Combines iterative and incremental approaches. Iterates over the product/service to create finished deliverables. Project Management | MUIT | ETSIT-UPM 4  TYPES OF PROJECT LIFE CYCLE PREDICTIVE ITERATIVE INCREMENTAL AGILE Project Management | MUIT | ETSIT-UPM 5  TYPES OF PROJECT LIFE CYCLE How to Choose the Most Appropriate Management? Project Management | MUIT | ETSIT-UPM 7  WATERFALL PROJECT MANAGEMENT Predictive Life Cycle. Main Features Linear and sequential approach to Project Management. Project phases are carried out in a predefined order; the next phase does not begin until the previous one is completed. Main characteristics: Requirements defined from the beginning. Approach based on detailed documentation of each project phase and producing specific deliverables. Emphasis on initial planning (detailed planning and scheduling at the start of the project). Focused on final results (final delivery of the product or project). Project Management | MUIT | ETSIT-UPM 8  WATERFALL PROJECT MANAGEMENT Example of Stages or Phases 1. Requirements: Identifying the needs and expectations of stakeholders, establishing objectives, and documenting Requirements all project requirements in detail. 2. Design: Creating technical and functional designs to Design guide proper implementation. 3. Development: Implementing the design according to the Development specifications established in the design phase. 4. Testing: Conducting thorough testing to ensure correct functionality according to defined requirements. Testing Correcting any detected anomalies. 5. Deployment: Preparing and putting the product into Deployment operation in the production environment. 6. Maintenance: Providing continuous support, updates, Maintenance and relevant corrections to ensure functionality throughout its useful life. Project Management | MUIT | ETSIT-UPM 9  AGILE PROJECT MANAGEMENT Main Characteristics The work to be done in a project can range from being clearly defined to very poorly defined/high uncertainty in the work to be done. Examples of projects with uncertain work: new designs, problem-solving, and work never done before. They have high rates of change or uncertainty, complexity, and risk, characteristics that make it unsuitable to handle these types of projects with traditional project management approaches. Instead, agile approaches are better for tackling the project and exploring its feasibility in short cycles and adapting quickly through constant evaluation and feedback. Agility: Ability to respond quickly to changing demands, controlling risks. Flexibility, ability to adapt quickly and efficiently. Ability to innovate. Project Management | MUIT | ETSIT-UPM 10  AGILE PROJECT MANAGEMENT What is Agile? Agile is not a methodology; it is a mindset or attitude towards managing projects. It is defined by four values and guided by twelve principles, which are manifested through various practices (Agile project management approach). Project Management | MUIT | ETSIT-UPM 11  AGILE PROJECT MANAGEMENT Values, Agile Manifesto The four values of the Agile Manifesto. The aspects on the right column are not undervalued; rather, the values on the left are given more priority. Project Management | MUIT | ETSIT-UPM 12  AGILE PROJECT MANAGEMENT Principles To fulfill the values of the manifesto, twelve principles are contemplated: Satisfy the customer with continuous and rapid delivery of valuable software. Welcome changing requirements, even late in development. Deliver working software frequently, with a preference for shorter timescales. Developers and executives must work together daily throughout the project. Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done. The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. Working software is the primary measure of progress. Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely. Continuous attention to technical excellence and good design enhances agility. Simplicity—the art of maximizing the amount of work not done—is essential. The best architectures, requirements, and designs emerge from self-organizing teams. At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. Project Management | MUIT | ETSIT-UPM 13  AGILE PROJECT MANAGEMENT Methods, Methodologies Project Management | MUIT | ETSIT-UPM 14  WATERFALL PROJECT MANAGEMENT VS. AGILE Waterfall Agile Requirements are well understood and Uncertainty in requirements (e.g., the client unlikely to change. does not know what they want). The client does not want to be involved in the The client wants to be involved in the project, development, prefers to be consulted at the in all phases, and supervise. beginning, set the requirements, and receive the result at the end of the project. Quality over speed. Important to execute the project quickly, in very changing market environments. The management team requires tracking The management team requires intermediate metrics and reports/documents. functioning results. Many dependencies in the project. Few dependencies. Team members have fixed roles, specialized in eam members can perform many different one task. tasks. Project Management | MUIT | ETSIT-UPM 15  AGILE PROJECT MANAGEMENT. KANBAN Kanban is a method to define, manage, and improve workflows for service and product development. Make the workflow visible to ensure the service functions with the correct amount of work, required by the client, and can be delivered while maintaining high quality standards without overloading the teams. Kanban follows the motto “start where you are.” It can be applied at any time from the task being done, without major changes in the organization, allowing for gradual improvement. Project Management | MUIT | ETSIT-UPM 16  AGILE PROJECT MANAGEMENT. KANBAN A Kanban system: Starts with a defined workflow. Commitments and deliveries must be defined. Uses boards with columns representing the steps or stages of the process (e.g., to start, in development, completed, delivered, etc.). The limits of work in progress (WiP) in each stage of the board must be defined (tasks each column can handle). This allows limiting WiP by creating a pull system: work is “pulled” into the system only when another task is completed and capacity becomes available. This is more efficient than pushing work into the system as soon as it is demanded. Uses cards to visually describe the tasks, their status, responsible person, start date, whether they are blocked or not, etc. Uses policies (rules and restrictions) that are visually displayed on the board. For example, placing summaries between columns describing what must be done before a card moves from one column to the next. Project Management | MUIT | ETSIT-UPM 17  AGILE PROJECT MANAGEMENT. KANBAN Lead time is the time an item is in process between the commitment and delivery points. The collection of cards or work between the commitment and delivery points is the work in progress (WiP). The average delivery rate is the speed at which work is delivered (number of deliveries made in a period of time divided by that period). Project Management | MUIT | ETSIT-UPM 18  PRACTICAL EXAMPLE. KANBAN WORKSHOP Case Study Statement: You are the project manager of a company that installs communication infrastructures, and you have been assigned a project to install structured cabling, network outlets, and switching electronics in a series of public schools located in a city. In each public school, an on-site survey is necessary to assess the current state of its LAN infrastructure. A document must be delivered to the client with the survey results and the technical project for the cabling/electronics solution to be deployed at the site. Subsequently, after client approval, the required materials (cabling, ducts, network outlets, switches, racks, etc.) must be supplied, and the agreed solution in the technical project will be implemented at the site. Once the implementation is completed, another company performs an independent certification of the deployed network outlets and prepares a report for the client to review. If everything is correct, the client accepts the work done at the site. Otherwise, the installation company must undertake corrective work. Project Management | MUIT | ETSIT-UPM 19  PRACTICAL EXAMPLE. KANBAN WORKSHOP Case Study Statement (continued): Your installation company has the following resources for this project: The project manager, which is you. Two specialist technicians with the technical knowledge to carry out on-site surveys and the technical execution project. We will call them TE1 and TE2. Four crews of technical installation personnel. We will call them CI1, CI2, CI3, and CI4. The independent certification company has: Two crews of technical personnel who perform the certifications of the network outlets installed in the schools. We will call them CC1 and CC2. The client has: Two technicians who approve the technical projects carried out by the installation company and also review the certification reports of the outlets in each school. Project Management | MUIT | ETSIT-UPM 20  PRACTICAL EXAMPLE. KANBAN WORKSHOP Case Study Statement (continued): LAN infrastructure needs to be deployed in 20 schools. A specialist technician takes one day to conduct the on-site survey of a school (including travel) and two days to prepare the technical project, which includes the survey report (initial situation) and the solution to be installed (final situation). The provision of the required materials for a school usually takes one week, from the time the order is placed with suppliers until the materials arrive at the installation company’s warehouse. Each crew of installers takes an average of two days to deploy the structured cabling in the school, install the racks, switches, and necessary network outlets. Corrective work usually takes an average of one day. Each crew performing the independent certification takes one day per school to complete this work and issue the corresponding report. The client’s technical staff is usually very busy. Each technician typically takes an average of one week to validate a technical project and two days to validate a certification report. Project Management | MUIT | ETSIT-UPM 21  PRACTICAL EXAMPLE. KANBAN WORKSHOP 1. Study of the problem and identification of the process Read the statement and draw the high-level process that will be carried out in the described project. To do this, it may help to answer the following questions: What roles exist in the project and what is the purpose of each one? What is the high-level process carried out in the project? What types of work do we have and who is responsible for each one? What types of clients do we have and what services or products are delivered to them? We need to see the high-level process; we don’t need to go into much detail for now. For example, up to 8 steps maximum. To identify a process, we must consider the products or services delivered. It should be as linear as possible, and we must identify the people or areas responsible for each part of the process. Although people may be specialized, we must consider the degree of collaboration that may exist between them. Project Management | MUIT | ETSIT-UPM 22  PRACTICAL EXAMPLE. KANBAN WORKSHOP 1. Study of the problem and identification of the process Project Management | MUIT | ETSIT-UPM 23  PRACTICAL EXAMPLE. KANBAN WORKSHOP 2. Visualize the work: the Kanban board The Kanban board is one of the main tools for making work transparent and managing its flow. Design a first draft of your Kanban board. You should consider the columns of the board. It should reflect the process, placing each step in a column. Without loops, the work progresses from left to right. It may be useful to divide each column into two: in progress and finished, to see when a part of the process is completed and ready to move to the next process. Project Management | MUIT | ETSIT-UPM 24  PRACTICAL EXAMPLE. KANBAN WORKSHOP 2. Visualize the work: the Kanban board Project Management | MUIT | ETSIT-UPM 25  PRACTICAL EXAMPLE. KANBAN WORKSHOP 2. Visualize the work: the cards Define the format of the card that will represent the work in progress on the board. Each card should contain at least: Entry date: The date when the work first appears on the board, indicating the demand. Start date of the work: When we actually start working on that card. Descriptive title: Something brief. Person responsible for that task: When the work begins, the responsible person is noted. This may change as it progresses on the board. End date of the work: When it reaches the last column and is delivered. Project Management | MUIT | ETSIT-UPM 26  PRACTICAL EXAMPLE. KANBAN WORKSHOP 2. Visualizar el trabajo: las tarjetas Project Management | MUIT | ETSIT-UPM 27  PRACTICAL EXAMPLE. KANBAN WORKSHOP 2. Visualize the work: the policies We agree on policies (rules) in each column. They must be: Scarce and simple Well defined Clearly visible to everyone Always applicable Examples of rules: What conditions must be met to admit or start a task? When does a card move from one state to another? What data must be filled in on the cards? How many cards can be admitted at once in a column? How many cards or tasks can one person handle simultaneously? What conditions must be met to complete a task? Project Management | MUIT | ETSIT-UPM 28  PRACTICAL EXAMPLE. KANBAN WORKSHOP 2. Visualize the work: the policies Project Management | MUIT | ETSIT-UPM 29  PRACTICAL EXAMPLE. KANBAN WORKSHOP 3. Flow management: demand and service classes Define how and who manages the tasks and if it is necessary to prioritize some tasks or situations over others. Have you considered the demand from your clients and the requirements to accept the tasks? Who can take on the role of service manager in contact with the clients to prioritize the demand? Should all tasks or situations be treated with the same priority, or should there be distinctions? It is important, as tasks progress, to assign dates to them to gather statistics and track progress. Project Management | MUIT | ETSIT-UPM 30  PRACTICAL EXAMPLE. KANBAN WORKSHOP 3. Flow management: demand and service classes In the case of our example: The tasks received (sites) are placed in the first column. It is important to consider the policies. In our example, to admit an order (site), we need a contact at the site and an on-site survey scheduled. The project manager will prioritize the tasks according to their importance and assign (move) them to the next column. For example, it may be appropriate to start with certain sites based on proximity and work acceleration, complexity, availability of supplies or technicians in the area, and client needs. Certain service classes can be defined and associated with each task or card to prioritize. For example: Error correction tasks will be prioritized because they block the delivery of the site. The installer crews should attend to corrections before installations. Specialist technicians can be surveying or documenting. Documentation is prioritized as a step before client approval. Project Management | MUIT | ETSIT-UPM 31  PRACTICAL EXAMPLE. KANBAN WORKSHOP 3. Flow management: dependencies or blockages, cadences Determine the meetings your team and participants need to hold to track the workflow. Can you think of any blockages or dependencies that might exist and how to visualize them? It might be interesting to decide how to visually show blockages or dependencies that may occur. For example, a task on hold that no one is working on. Define the cadences or frequency of meetings between team members to track the board and the project. Project Management | MUIT | ETSIT-UPM 32  PRACTICAL EXAMPLE. KANBAN WORKSHOP 3. Flow management: dependencies or blocks, cadences The following meetings are proposed: Daily Kanban Meeting: Observe and track the state of work and flow. Decide which sites enter the flow (on hold) if there are resources. Biweekly Feedback Meeting: Detect problems, blockages, and dependencies, aspects that are delaying the work, and propose improvements. Project Management | MUIT | ETSIT-UPM 33  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Conduct a two-week simulation of the project’s work (10 working days) on the Kanban board created and show its status at the end of those two weeks. Pay attention to the tasks, their responsibilities, their duration, and any existing restrictions between tasks. Project Management | MUIT | ETSIT-UPM 34  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Summary of Tasks, Responsibles, and Duration Duration Responsible Role (working days) On-Site Survey Specialist Technician 1 day Create Survey Document and Technical Project Specialist Technician 2 days Approval of Survey Document Client Technician 5 days Material Procurement Supplier 5 days Cable Installation Installer Crew 2 says Independent Certification Certification Crew 1 day Corrective Work Cuadrilla Instaladores 1 day Work Acceptance Client Technician 2 days Project Management | MUIT | ETSIT-UPM 35  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 36  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 37  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 38  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 39  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 40  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 41  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 42  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 43  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 44  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 45  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 46  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 47  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 48  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 49  PRACTICAL EXAMPLE. KANBAN WORKSHOP 4. Simulation of Workflow Project Management | MUIT | ETSIT-UPM 50  PRACTICAL EXAMPLE. KANBAN WORKSHOP 5. Conclusions Analyze the results obtained from the simulation carried out. What conclusions can you draw? Focus on the task flow; are there blockages or stops in the workflow? Do jobs not progress because some phase takes too long? How could we improve this? Are the defined policies effective? Are there enough resources to attend to the jobs? Project Management | MUIT | ETSIT-UPM 51  PRACTICAL EXAMPLE. KANBAN WORKSHOP 5. Conclusions The two phases that most condition the project flow are: Approval and Replanning Document, carried out by the client Material Collection, carried out by the supplier These represent a bottleneck in the project flow, blocking the progression of tasks from replanning to implementation and causing the resources allocated to the project to stop at certain times and even be oversized. Even if we had more internal resources in the project, this does not solve the problem; the problem is external: client and suppliers. Project Management | MUIT | ETSIT-UPM 52  PRACTICAL EXAMPLE. KANBAN WORKSHOP 5. Conclusions Possible solutions: The project manager meets with the client to see how the approval process for the replanning documentation can be streamlined. They propose synthesizing the relevant information so that the client takes less time to validate it. Another option is to provide personnel to the client to help with the validation of the replanning. Hiring technicians from the independent certification company would incur extra costs for the project due to something attributable to the client. Alternatively, removing an installation crew and hiring a specialist technician to assist the client could be considered. The above does not solve the problem, as it is also necessary to reduce the material collection times. An advance of material could be made, estimating the necessary material to deploy a number of sites and periodically replenishing the advance material stock. Project Management | MUIT | ETSIT-UPM 53  Pre-sale, Provision and After-sale. Pre-sales Engineering Project Management Máster Universitario Master’s Degree in Telecommunications en Ingeniería de Telecomunicación Engineering  CONTENTS OF THE TOPIC Pre-sale, Provision and After-sale The Role of the Pre-Sale Engineer Roll Play Project Management| MUIT | ETSIT-UPM 2  Pre-sales, Provision and After-sales The life cycle of a product, service, or solution for the customer. Project Management| MUIT | ETSIT-UPM 3  Pre-sales The following activities are typically carried out during the pre-sale phase: Consultative Selling. Products and services are presented to the customer that may interest them, keeping them informed about technological advancements in the market and available options. Addressing Customer Needs. The needs and requirements of the customer are attended to by proposing solutions and economic evaluations (offers). These needs can be identified through meetings with the customer or if they issue an RFP or public tender, responding with a proposal that meets all requirements. Proposal Development. Creating a proposal involves mobilizing resources from other parts of the company and suppliers to technically and operationally validate the solution, obtain economic evaluations of external products and services, and secure approval from the finance and sales departments. Support for Operations. Once the offer is approved by the customer, the pre-sale team provides support to the operations areas to ensure that the transition to implementing the offer is as smooth as possible. Project Management| MUIT | ETSIT-UPM 4  Provision The following activities are typically carried out during the provisioning phase: Development of the Technical Project: Describes the offered solutions. Provides diagrams and schemes of physical and logical architecture. Breaks down the various components to be provisioned with their main characteristics. Parameterization. Establishment of the Implementation Office: Assigns a Project Manager. In large and complex contracts, there may be several specialized project managers and a Contract Director as the ultimate responsible party to the customer. Other human resources responsible for provisioning are hired or assigned: technical operators, processing staff, manufacturer consultants or experts, installation teams, etc. Processing: The solution is decomposed into its implementable elements, validated, parameterized, and requests and orders for provisioning are launched. Purchase requests to manufacturers and suppliers for necessary external products and services. Service orders for the installation of infrastructures and the configuration of internal services within the organization. Project Management| MUIT | ETSIT-UPM 5  Provision Implementation: Deployment: Infrastructure is deployed. Installation and Configuration: Equipment is installed and configured. Provisioning: Network functions are provision