Project Management PDF

lOMoARcPSD|16343078 Project- Management Accountancy (Northeastern College ) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Michaela Alejandro ([email protected]) ...

lOMoARcPSD|16343078 Project- Management Accountancy (Northeastern College ) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 PROJECT MANAGEMENT Project management is the process of planning and organizing a company's resources in order to complete a specified work, event, or obligation. Personnel, funds, technology, and intellectual property are among the resources managed, and it might be a one-time initiative or an ongoing effort. Project management is frequently connected with disciplines such as engineering and construction, as well as, more recently, healthcare and information technology (IT), all of which require a complicated collection of components to be finished and put in a certain order to generate a working result. Regardless of the industry, the project manager's duty is essentially the same: to assist in the definition of the project's goals and objectives, as well as to identify when and by whom the different project components will be accomplished. They also establish quality control tests to guarantee that finished components fulfill a set of requirements. IMPORTANCE OF PROJECT MANAGEMENT With project management, every part of the business will run more smoothly. It enables the project teams to focus on the work that is significant to the business and free from distractions which is caused by tasks that are going off track or budgets that are being out of control. It allows the team to be empowered in delivering results that actually makes a great impact in the business. Also, it enables the employees to see the contribution of their work to the company’s strategic goals. Project management benefits the business in these ways: 1. Save time and money 2. Improve internal communication 3. Make better business decisions 4. Iterate on the business successes 5. Better projects THE BEHAVIORAL ASPECTS OF PROJECT MANAGEMENT The behavioral components of project management cover a wide range of topics that a project manager must be proficient in. Many project managers find that mastering organizational culture takes some time. A project's success or failure can be determined by an organization's culture. Management must have a set of shared views and values and be prepared to stand by them even in the face of adversity. Nature of Projects a. Matrix organization: functional and project managers share employees and facilities combine the operations of a range of specialists within a functional framework b. Projects typically bring together people with diverse knowledge and skills Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 Deciding which projects to implement Selecting the project manager Selecting the project team Planning & designing the project Managing & controlling project resources Deciding if and when a project should be terminated Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 Deciding which projects to implement Selecting the project manager Selecting the project team Planning & designing the project Managing & controlling project resources Deciding if and when a project should be terminated Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 Deciding which projects to implement Selecting the project manager Selecting the project team Planning & designing the project Managing & controlling project resources Deciding if and when a project should be terminated Key Decisions in Project Management a. Deciding which projects to implement Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 b. Selecting the project manager c. Selecting the project team d. Planning and designing the project e. Managing and controlling project resources f. Deciding if and when the project should be terminated Project Managers a. Bears ultimate responsibility for the project's success or failure; must be able to collaborate with others to achieve the project's goals b. Responsible for effectively managing the work, human resources, communications, quality of the work, time, and costs. c. He/she must possess skills such as motivational, directional, making trade-off decisions, expedite work, when necessary, put out tensions and monitor the whole project. d. Project managers should not only consider themselves as managers but leaders who will lead on the project of the business. Thus, strong leadership skills or the ability to adapt to the changing circumstances must be possessed by them. e. A project manager also needs to know how to interpersonally communicate since projects are usually done in teams in order to avoid issues that would affect the project. Ten Most Effective Project Management Behaviors 1. Make sure team members commit to a delivery date When you need something done, have your team members set a delivery date in front of their peers so they can commit to the assignment. Make this a regular feature of your meetings. 2. Make certain everyone knows what they have to do No matter how many reminders or written explanations you offer them, they will forget or misinterpret things. Confirm that everyone understands what is expected of them each step of the way to ensure that work runs smoothly. 3. See if everyone is engaged with the project You must speak with someone on your team if they fail to provide status updates, miss deliverables, or cease attending meetings. Have a face-to-face meeting to see whether the matter can be resolved. However, avoid criticizing or blaming the person; instead, communicate openly about your concerns and ensure that the team member is not overburdened, obstructed, or in need of assistance. 4. Value other people’s time Don't exaggerate the importance of the information you're providing. Every meeting should have a set agenda and run well. If certain persons aren't required to attend the Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 meeting, let them know ahead of time. Every person in the room needs to recognize the value in anything you say. Add names next to critical information and action items in textual communication to help people focus. 5. Make sure you are supportive of your people You could, for example, assist someone in overcoming a hurdle or overcoming a reliance on a duty you assigned to them. Even if it's something you think to be minor or busy work, ask them whether your aid would be beneficial. The most important thing is for them to realize that you are always available to support and assist them. People enjoy such gestures and are more committed to the cause as a result. 6. Recognize people’s achievements publicly On a frequent basis, express your thanks for someone's hard work in public. Make it genuine and true to yourself. Ascertain that the names of the hard employees are also heard by the project sponsors and managers. Thank individuals for doing a good job and delivering on schedule, and show them how important they are to projects. 7. If the work is blocked, make some changes This is especially true in projects when engineers spend numerous hours searching for answers yet fail to make progress, even as the deadline approaches. When a large number of individuals need to work together on a project but are unable to communicate well enough to address concerns, such situations arise. As a PM, your job is to foster fruitful talks and get extra resources as needed. Set up meetings, enlist more individuals to help with the initiatives, and ensure that communication is clear. 8. Stay motivated and be vigilant You must keep track of the progress of your initiatives at all times. Get real-time updates to find out if there are any problems or if something isn't going as planned. Feeling overly relaxed can sometimes lead to unanticipated problems. Talk to individuals to check if chores will be completed on schedule. Always plan ahead of time for probable challenges and have tactics in place to cope with them. 9. Tackle the challenges It's unlikely that a project will be completed without issues. In fact, it's atypical. Unexpected surprises might occur at any time during technology development initiatives, jeopardizing the entire project. When you estimate that a work would take a month to complete, it will really take six months. Even if you attempt to reduce risk, unexpected events will still occur. You must be psychologically prepared to deal with such challenges. When issues develop, demonstrate your leadership abilities by Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 working with your team to resolve them. Communicate and interact with stakeholders in a proactive manner. Take the lead in making decisions and taking remedial action. 10. Under-promise and over-deliver This is possibly the most important, as well as the most hardest, aspect of the job. It necessitates careful stakeholder management, planning, and scope management. Make sure you have enough time set out when preparing in case certain chores take longer than expected. The expectations of stakeholders can determine whether a project succeeds or fails. It's also conceivable that your conservative planning makes folks think you're not aggressive enough. A tight timeline might assist drive your staff by instilling a feeling of urgency in them. As a PM, you must strike a balance between ambitious and cautious preparation. PROJECT LIFE CYCLE The project management life cycle is essential to all businesses in order to keep the project organized and ensure it is on track from the start of the project until the end. This cycle describes high-level process to deliver the project successfully. Suppose, for instance, the project when not managed well may result to wasted money and resources, and poor performance delivery that would result to failure on putting up a project. In the phases of the project management life cycle, the business come up with the idea of a project, define its goals, plan for its execution and guide its completion. The project management life cycle usually has 4 phases: 1. Initiation 2. Planning 3. Execution 4. Closure Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 1. Initiation In this phase, the business needs to identify the need, problem, or opportunity where the project team brainstorms on the ways in order to meet those needs, solve problems, or seize every opportunity. Also in this phase, the business determines the objective of the project, assess its feasibility, and figure out the major deliverables of the project. Steps for the project initiation phase includes but is not limited to: a. Conducting a feasibility study The business needs to identify the primary problem that the project will solve and determine whether the project to be pursued will deliver solutions to the identified problem. b. Identifying the scope The business will define the depth and breadth of the project. Here the business need to the goals and justification of the project, project requirements and strategies, constraints that need to be considered, cost estimates, budget, breakdown of required tasks, cost-benefit analysis, deliverables and most importantly deadlines that need to be met. After identifying these, the business can now proceed on setting responsibilities. The business need to see the importance of setting the scope in order to guide the forces of the project throughout its completion and will help them to keep the project on track. Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 c. Identifying deliverables The business will define the product or service to provide. d. Identifying project stakeholders The business will determine the people affected in doing the project and what are their needs that can be addressed. e. Developing business case The identified feasibility of the project, scope and deliverables and project stakeholders will be used as the criteria in order to compare the potential costs and benefits of the project to determine whether it will move forward or not. f. Developing a statement of work The business will document the objectives, scope and deliverables of the project as working agreement between the project owner and those working on the project. 2. Planning Upon approval of the project, it will move forward based on the business case, statement of work, or project initiation document made during the initiation phase. During this phase, the business will breakdown the larger project into smaller tasks that will then be designated to the team created for the project. The business will prepare a schedule for the completion of the assignments. It should be ensured that the created smaller goals of a larger project are achievable within the time frame designated, and that these should have a high potential for success. The steps for the project planning phase are as follows: a. Creating a project plan The business will identify the project timeline including the phases of the project, tasks to be performed, and possible constraints. A project plan is more than a schedule. It is a management process wherein the business will define the scope, objectives, dependencies, and the tasks necessary in achieving the needs of the project stakeholders while still effectively supporting the team along the way. b. Creating workflow diagrams The business will make diagrams in order to visualize processes to ensure that the team members will clearly understand their roles in the project. Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 c. Estimating budget and creating a financial plan Here, the business will use cost estimates to determine how much will be spent on the project to get the maximum return on investment. This will typically include a breakdown of the tasks, resources, billing rates, and a schedule for a project. d. Gathering resources The functional team will be created from internal and external talent pools. For this case, the business will make sure that everyone on the team has the necessary tools such as software and hardware, essential in performing and completing their tasks. e. Anticipating risks and potential quality roadblocks The business will identify the issues that may cause the project to stall while planning to mitigate the risks and maintain the project’s quality and timeline. f. Holding a project kickoff meeting The team created will be brought on board to outline the project for them to quickly start working and have fully understood their tasks. 3. Execution This is where the action starts. The project manager’s job here is to keep the work on track, organize team members, manage timelines, and ensure that the work is done in accordance to the original plan. These are the steps that may be included in this phase: a. Creating tasks and organizing workflows The project manager will assign granular aspects f the projects to the appropriate team members to make sure that they are not overworked. b. Briefing team members on tasks The tasks will be explained to team members. The project manager will provide necessary guidance on how they should complete it and organize process-related training, if necessary. c. Communicating with team members, clients, and upper management The project manager will provide updates to project stakeholders at all levels. d. Monitoring quality of work Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 This is to ensure that the team members are meeting their time and quality goals for tasks assigned to them. e. Managing budget Here, the spending for the project will be monitored and kept track in terms of its assets and resources. 4. Closure Once the team has completed all the work on the project, the next phase would be the closure phase. In this phase, the final deliverables will be provided, the project resources will be released, and the success of the project will be determined. Although the major project work is done, the project manager’s job continues. There are still important things that need to be done which includes the evaluation of the work (what did and what did not work with the project). This phase includes these steps: a. Analyzing project performance The project manager determines whether the goals of the project were met and the initial problem is solved with the use of a prepared checklist. b. Analyzing team performance The project manager will now then evaluate how the team members performed on the project. This includes whether they met the goals set along with the timeliness and quality of their work. c. Documenting project closure This is to make sure that all aspects of the project are completed with no loose ends remaining and providing reports to key stakeholders. d. Conducting post-implementation The project manager will conduct a final analysis of the project, taking into account lessons learned for similar projects in the future. e. Accounting for used and unused budget The budget that are unused during the project will be allocated for upcoming projects. PLANNING AND SCHEDULING Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 1. GANTT CHARTS Activity information is visually conveyed using Gantt charts. It includes a list all of the tasks involved in a project and their sequence, all of which are plotted against a timeline. This provides a quick summary of a project, its associated tasks, and when it must be completed. The project manager must consider all of the tasks involved in the project while creating a Gantt chart. Here, in charge of each task will be figured out, how long each activity will take, and what challenges the project team could face as part of this process. Why use Gantt Charts? To begin with, these should be taken into consideration: verify that the timetable is manageable, that the correct personnel are allocated to each job, and that there are remedies for any possible difficulties. This may also assist in determining practical aspects of a project, such as how long it will take to finish and which tasks must be accomplished before others can begin. This can also be used to determine the critical route, which is the sequence of jobs that must all be done on time in order for the project to be finished on time. Finally, it may be used to keep the team and sponsors updated on the project’s progress. Simply update the chart to reflect schedule changes and their consequences, or use it to indicate the completion of essential activities. To create a project, these are the steps to be followed: 1. Identify Essential tasks The tasks or activities needed to be listed, and for each task, the start date and estimated duration must be taken note of. Suppose, for instance, the organization will create a new “Software as a Service” product. First, you need to organize all of the necessary tasks and calculate the likely overall timescale for the delivery. For example: Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 Task Length 2. A. High level analysis 1 week B. Selection of server hosting 1 day C. Configuration of server 2 weeks D. Detailed analysis of core modules 2 weeks E. Detailed analysis of supporting modules 2 weeks F. Development of core modules 3 weeks G. Development of supporting modules 3 weeks H. Quality assurance of core modules 1 week I. Quality assurance of supporting modules 1 week J. Initial client internal training 1 day K. Development and QA of accounting reporting 1 week L. Development and QA of management reporting 1 week M. Development of management information system 1 week N. Client internal user training 1 week Identify task relationships After listing all the activities, the project manager will now then identify the relationship of each task. Some tasks will need to be completed first before proceeding to the next one, and others cannot end until preceding ones have ended. Suppose for instance, the release of pamphlets cannot be done without finishing the designs and print it. Relationship of tasks can be classified to sequential, wherein other tasks are dependent to other activities, and parallel, wherein tasks can be done simultaneously. Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 In Gantt charts, there are three (3) main relationships between sequential tasks: a. Finish to start These tasks cannot start before the previous or related task is finished. However, it can be started later. b. Start to start These tasks cannot start until a preceding task starts. However, it can start later. c. Finish to finish These tasks cannot end before a preceding task ends. However, it can end later. Lengt Depende Task Type* h nt on... A. High level analysis 1 week S B. Selection of server hosting 1 day S A C. Configuration of 2 server weeks S B D. Detailed analysis 2 S, P to of core modules weeks B, C A E. Detailed analysis of 2 S, P to supporting modules weeks F D F. Development of 3 S, P to core modules weeks E D G. Development of 3 S, P to supporting modules weeks H, J E H. Quality assurance S, P to of core modules 1 week G F Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 Lengt Depende Task Type* h nt on... I. Quality assurance of supporting modules 1 week S G J. Initial client internal S, P to training 1 day G C,H K. Development and QA of accounting reporting 1 week S E L. Development and QA of management reporting 1 week S E M. Development of Management Information System 1 week S L N. Client internal user training 1 week S I, J, K, M 3. Input activities into software or a template Charts can be drawn by hand or utilize specialized software like Gantto, Matchware, or Microsoft Project to do so. Some of these tools are cloud-based, which means that the project manager and the team members may access the document from any place at the same time. (This comes in handy when talking about, optimizing, and reporting on a project.) Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 Several Gantt templates for Microsoft Excel have been made with free templates online with a short search. 4. Chart progress As the project progresses, the chart changes. For example, there are instances or problems that appeared during the printing of pamphlets, the scheduling will also be affected since the time frame that has been allotted will only be good for the activity without experiencing any difficulties. Changes should be reflected in the chart as soon as possible. This will allow the team to keep track of plans, the team, and sponsors. 2. PERT/CPM CPM (Critical Path Method) and PERT (Program Evaluation Review Technique) are project management approaches that were developed in response to the demand for complicated project planning, scheduling, and control in Western industrial and military facilities. Planning and Scheduling CPM/PERT has been appropriately afforded due prominence in the literature on Operations Research and Quantitative Analysis, as planning, scheduling (or organizing) and control are recognized to be core Managerial tasks. PERT/CPM gave a center around which managers could brainstorm and put their ideas together, far more than the technical benefits. It proven to be an excellent means for thinkers and planners on one level to express their ideas, concerns, and anxieties to Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 others on a higher level. Most importantly, it became a powerful tool for measuring individual and team performance. There are several versions of CPM/PERT that have shown to be beneficial in cost planning, personnel scheduling, and machine time management. The following critical questions can be answered using CPM/PERT: a. How long will it take to complete the full project? What are the potential dangers? b. What are the project's important activities or tasks that, if not finished on time, might cause the entire project to be delayed? c. Is the project on track, ahead of schedule, or behind schedule? d. What is the most cost-effective strategy to accomplish the project earlier than expected? Framework for PERT and CPM In essence, both approaches follow the same six phases. The following is the procedure: a. Define the project as well as all of its major operations or tasks. There should only be one start activity and one finish activity for the project (which is made up of numerous tasks). b. Develop the connections between the activities. Decide which activities should come first and which should come last. c. Create a "Network" that connects all of the activities. Each activity should be assigned a distinct event number. Dummy arrows are used where necessary to avoid having two activities with the same numbering. d. Assign each action a time and/or cost estimate. e. Calculate the longest time path through the network. This is called the critical path. f. Use the Network to help plan, schedule, monitor and control the project. CPM/PERT's Key Concept is that the whole project is controlled by a small group of activities that make up the longest path through the activity network. If these "essential" tasks could be identified and allocated to responsible people, management resources might be better focused on the few actions that determine the project's fate. Non-critical tasks can be postponed and resources for them shifted flexibly without harming the project as a whole. When creating an activity network, there are five questions to consider: a. Is this a good place to start? b. Is this a completed activity? c. What Activity Precedes this? d. What Activity Follows this? e. What Activity is Concurrent with this? Some actions are linked in a sequential order. Only once the first task is accomplished can the second activity begin. The activities are concurrent in certain circumstances because they are independent of one another and might begin at the same time. This is especially true in organizations with supervisory resources, which allow work to be Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 assigned to several departments, each of which is accountable for the activities and ensuring that they are completed on time. When work is delegated in this way, the requirement for continuous input and coordination becomes a major concern for senior management. Drawing the CPM/PERT Network Each activity (or sub-project) in a PERT/CPM Network is represented by an arrow symbol. Each activity is preceded and succeeded by an event, represented as a circle and numbered. At Event 3, we have to evaluate two predecessor activities – Activity 1-3 and Activity 2- 3, both of which are predecessor activities. Activity 1-3 gives us an Earliest Start of 3 weeks at Event 3. However, Activity 2-3 also has to be completed before Event 3 can begin. Along this route, the Earliest Start would be 4+0=4. The rule is to take the longer (bigger) of the two Earliest Starts. So, the Earliest Start at event 3 is 4. Similarly, at Event 4, we find we have to evaluate two predecessor activities – Activity 2-4 and Activity 3-4. Along Activity 2-4, the Earliest Start at Event 4 would be 10 weeks, but along Activity 3-4, the Earliest Start at Event 4 would be 11 wks. Since 11 weeks is larger than 10 weeks, we select it as the Earliest Start at Event 4. We have now found the longest path through the network. It will take 11 weeks along activities 1-2, 2-3 and 3-4. This is the Critical Path. Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 The Backward Pass – Latest Finish Time Rule To make the Backward Pass, we begin at the sink or the final event and work backwards to the first event. At Event 3 there is only one activity, Activity 3-4 in the backward pass, and we find that the value is 11-7 = 4 weeks. However, at Event 2 we have to evaluate 2 activities, 2-3 and 2-4. We find that the backward pass through 2-4 gives us a value of 11-6 = 5 while 2-3 gives us 4-0 = 4. We take the smaller value of 4 on the backward pass. Tabulation and Analysis of Activities We are now ready to tabulate the various events and calculate the Earliest and Latest Start and Finish times. We are also now ready to compute the SLACK or TOTAL FLOAT, which is defined as the difference between the Latest Start and Earliest Start. a. The Earliest Start is the value in the rectangle near the tail of each activity b. The Earliest Finish is = Earliest Start + Duration c. The Latest Finish is the value in the diamond at the head of each activity d. The Latest Start is = Latest Finish – Duration There are two important types of Floats or Slack. These are Total Float and Free Float. Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 TOTAL FLOAT is the spare time available when all preceding activities occur at the earliest possible times and all succeeding activities occur at the latest possible times. Activities with zero Total float are on the Critical Path FREE FLOAT is the spare time available when all preceding activities occur at the earliest possible times and all succeeding activities occur at the earliest possible times. Downloaded by Michaela Alejandro ([email protected])  lOMoARcPSD|16343078 REFERENCES Andriiuk, A. (2021, October 29). 10 Most Effective Project Management Behaviors. Epicflow. https://www.epicflow.com/blog/10-most-effective-project-management-behaviors/ Lucid Content Team. (2019, October 4). Project Management Life Cycle Phases | Lucidchart. LucidChart. https://www.lucidchart.com/blog/the-4-phases-of-the-project-management- life-cycle Mind Tools. (2021). Gantt Charts: Planning and Scheduling Team Projects. https://www.mindtools.com/pages/article/newPPM_03.htm Intervention (India) Pvt. Ltd. (1997, November 20). PERT/CPM for Project Scheduling & Management. https://www.interventions.org/pertcpm.html Teamwork. (2007). Why Is Project Management Important? | Teamwork. Teamwork Company. https://www.teamwork.com/project-management-guide/why-is-project-management- important/ The Investopedia Team. (2021, April 1). Project Management. Investopedia. https://www.investopedia.com/terms/p/project-management.asp Downloaded by Michaela Alejandro ([email protected])