Week 3 (Lec 9-13) PDF - Project Management

PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 04: Defining the Project Lecture 09: Responsibility Matrices and P...

PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 04: Defining the Project Lecture 09: Responsibility Matrices and Project Communication Plan Concepts Covered: Defining the Project Scope Establishing Project Priorities Creating the Work Breakdown Structure (WBS) Integrating the WBS with the Organization EL Coding the WBS for the Information System PT Responsibility Matrices N Project Communication Plan  Integrating WBS with the Organization (Step 4) Illustrative EL Source: Project Management, Gray and Larson PT N Coding WBS for Information System (Step 5) Illustrative WBS Coding System ‒ Defines levels, elements, budget, cost info, EL consolidation of report PT N  PBS for Software Development Project EL PT N Source: Project Management, Gray and Larson  What is a Responsibility Matrix? Illustrative Responsibility Matrix for a Market Research Project EL PT Source: Project Management, Gray and Larson N  RACI Matrix Illustrative Responsible: Those who do the work to achieve the task or deliverable Project Project Executive Steering Project Accountable: Also known as the Approver: the one Deliverable Sponsor Group Manager Project Team ultimately accountable for the Project deliverables Project charter A C R I and completion; the one who signs it off Stakeholder workshops: agenda and Consulted: Those whose opinions are sought and presentation C C A R with whom there is two-way communication EL Informed: Those who are kept updated on progress, Results of stakeholder workshops I I A R PT often on completion of the task or deliverable, and Results of project voting C C A R with whom there is only one-way communication N Strategy table of contents I A R I Strategy drafts C A R I Strategy final version A C R I Communications plan A C R I Project management products I A R I Project Communication Plan  What’s the purpose? ‒ What to communicate? ‒ Whom to communicate? EL (what, who, how, when: info?) PT N  Developing a Communication Plan 1. Stakeholder analysis 2. Information needs ‒ status report, milestone report, scope changes, deliverable issues, change request, Team meeting, EL action items, Gating decision PT 3. Sources of information N 4. Dissemination modes 5. Responsibility and timing Stakeholder Communications EL PT N Source: Project Management, Gray and Larson Shale Oil Research Project Communication Plan Illustrative EL PT N Source: Project Management, Gray and Larson Conclusion: In continuation with the last lecture, this class discusses the remaining steps in defining the project, namely, (iv) integrating WBS with the organization, and (v) coding WBS for the information system. It further explains process breakdown structure (PBS), which is often used for process- EL based projects with ill-defined deliverables. It is generally used for the software projects. PT Furthermore, the need for responsibility/RACI matrix, the importance of stakeholder N analysis and developing project communication plan for the success of the project have been elucidated. References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Successful Project Management, Gido, J. and Clements, J.P., Cengage Learning, PT 6th edition. 4. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J., N Wiley, PMBOK Guidelines Book N PT EL PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 05. Estimating Project Time and Cost Lecture 10: Estimating Guidelines and Methods, Top-down Estimation Concepts Covered: Factors influencing the quality of estimates Estimating guidelines for time, cost and resource Top-down versus bottom-up estimation EL Methods for estimating project time and cost Level of detail PT Types of costs N Refining estimates Project Management Estimating Projects What is Estimating? Why estimating Time and Cost are important? (support decision, schedule work, develop budget, cash flow needs, check progress) EL PT Types of Estimates N Top-down vs. Bottom-up Estimates Conditions for Top-Down/Bottom-up Estimates Top-down Bottom-up Condition Estimates Estimates Strategic decision making X Cost and time important X EL High uncertainty X PT Internal, small project X Fixed-price contract X N Customer wants details X Unstable scope X Source: Project Management, Gray and Larson Factors Influencing Quality of Estimates Planning Horizon Other (Non-project) Project Factors (equip b/d, vac., Duration (new tech) N/holidays) EL PT Quality of Estimates Organization People N Culture Project Structure and Padding Org.(matrix, dedicated Estimates team) Guidelines for Work Package Estimates – time, cost, resources People with familiarity Risk assessment Several people EL PT Preparing Initial Estimates N Contingencies Normal conditions Independent task Time units  What is the preferred approach for estimating time and cost? ‒ Top-down  WBS/OBS  Bottom-up  Schedule and budget  Reconcile EL Top-down Approach for Estimating Project Times and Costs PT Consensus methods Ratio methods N Apportion method Function point methods Learning curves  Apportion Method of Allocating Project Costs using WBS EL PT N Source: Project Management, Gray and Larson Conclusion: This chapter deals with estimation of project time and cost. There are mainly two types of approaches for estimating project times and costs, namely, (1) Top-down approach such as (i) consensus methods, (ii) ratio methods, (iii) apportion method, (iv) function point methods for software and system EL projects, and (v) learning curves; (2) Bottom-up approach such as (i) template methods, (ii) parametric procedures applied to specific tasks, (iii) PT range estimates for the WBS work packages, and (iv) phase estimating: a hybrid method. Top-down estimation/approach has been explained in detail. N References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J., Wiley, PMBOK Guidelines Book PT 4. Project Management for Business and Technology – Principles and Practice, John N M. Nicholas, Prentice-Hall of India Ltd. N PT EL PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 05. Estimating Project Time and Cost Lecture 11: Level of Detail, Type of Costs, and Refining Estimates Concepts Covered: Factors influencing the quality of estimates Estimating guidelines for time, cost and resource Top-down versus bottom-up estimation EL Methods for estimating project time and cost Level of detail PT Types of costs N Refining estimates Project Management  Bottom-up Approach for Estimating Project Time and Cost Template methods Parametric procedures Range estimates EL Phase estimating PT N  Phase estimating over Product Life Cycle EL PT Source: Project Management, Gray and Larson N Top-down and Bottom-up Estimates EL PT N Level of Details What should be the level of details? – levels of management, project complexities Excessive detail EL – Costly, focus on dept., unproductive PT Insufficient detail N – Costly, lacks focus, efforts on non-essential activities Types of Cost Direct Costs Direct (Project) Overhead Costs General and Administrative Overhead Costs Contract Bid Summary Costs Illustrative EL Direct costs $120,000 PT Direct overhead $30,000 N Total direct costs $150,000 G&A overhead (20%) $30,000 Total costs $180,000 Profit (15%) $27,000 Total bid $207,000 Refining Estimates Need for refining/adjusting estimates Hidden interaction costs Normal conditions Things that may go wrong Changes in project scope and plans EL Optimistic PT Strategic misrepresentation N Create a Database for Estimation  Structure of a Database for Estimating Illustrative EL PT N Source: Project Management, Gray and Larson Problem Solving EL PT N  Problem Solving EL PT N N PT EL  Conclusion: In continuation with the previous lecture, this session discusses the Bottom-up approach/estimation of time, cost and resources. It further elaborates why estimating time and cost are important? It also explains the level of details - that shall be different for different levels of management; excessive details increases unproductive paper work, and less details EL tend to loss focus and opportunities. PT This module further illustrates that there are three types of cost associated with the project and these are: (a) Direct costs, (b) Direct (project) overhead costs, and (c) N General and administrative overhead costs. It also elaborates the need for refining/adjusting estimates as there are hidden interaction cost and other costs; and importance of creating a database for estimation. References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J., Wiley, PMBOK Guidelines Book PT 4. Project Management for Business and Technology – Principles and Practice, John N M. Nicholas, Prentice-Hall of India Ltd. N PT EL PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 06: Developing Project Plan Lecture 12: Concept of Project Network and Network Development Rules Concepts Covered: Developing Project Network Constructing a Project Network Activity-on-Node (AON), Activity-on-Arrow (AOA) Network Computation Process EL Forward Pass and Backward Pass Computation PT Level of Details for Activities Extended Network Techniques N Concepts of Lags, Laddering, Hammock Activities Uncertainty in activities - three time estimates Probability of Completion of Project on Time Developing a Project Plan using Network model What is a Network? EL PT Types of network and their characteristics N - AON, AOA  Terminology EL Fig. AOA network Rules PT N Fig. AON network Developing a Project Plan using PERT/CPM  Critical Path Method (CPM) DuPont (1956/57) Deterministic time AON network Repetitive jobs EL PT  Project Evaluation and Review Technique (PERT) U S Navy (1957/58) N Probabilistic time AOA network Non-repetitive jobs Constructing Project Network  Terminology  Activity, Event  Merge activity  Parallel (concurrent) activities EL B  Burst activity PT A C  Dummy activity N D  Two approaches A  Critical path, Critical activities B D  Slack/float C  Basic rules to Develop Project Networks - Network flow - Finish-start - Arrows - Identification No. EL - Looping PT - Conditional statement N - Dangler Conclusion: This chapter explains how to develop a project plan using network model. There are two types of network viz. Activity-on-node (used by CPM), and activity-on-arrow (used by PERT). The differences between AON and AOA network, and their applicability have been mentioned. EL It also elucidates the difference between CPM and PERT. CPM uses one time estimate as the tasks are repetitive and activity time is fairly accurate, whereas PERT PT uses probabilistic or three time estimates, which will be discussed later in this module. N The module further explains various terminology used for developing network plan, and basic rules to develop project networks. References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J., Wiley, PMBOK Guidelines Book PT 4. Project Management, Pradeep Pai, Pearson India Education Services Pvt Ltd., N 2019, 1st edition. N PT EL PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 06: Developing Project Plan Lecture 13: Construction of Network and Network Computation Process Concepts Covered: Developing Project Network Constructing a Project Network Activity-on-Node (AON), Activity-on-Arrow (AOA) Network Computation Process EL Forward Pass and Backward Pass Computation PT Level of Details for Activities Extended Network Techniques N Concepts of Lags, Laddering, Hammock Activities Uncertainty in activities - three time estimates Probability of Completion of Project on Time  Practical considerations for building a project network - Network Logic Errors - Activity Numbering - Use of Computers to Develop Networks - Calendar Dates EL - Multiple Starts and Multiple Projects PT N Network Logic Errors - Illogical Loop  Steps for Developing Network analysis model – using PERT/CPM - Identify tasks - Define relationship - Estimate time - Assign resources EL - Draw network and compute CP PT N Notations Source: Optimization and Business Improvement Studies in Upstream Oil and Gas Industry, Sanjib Chowdhury, Wiley & Sons Inc., NJ, USA. N PT EL Illustrative  Optimizing Rig Move Time and Activity Schedule using Critical Path Analysis Critical Path : Rigging down Source: Optimization and Business Improvement Studies in Upstream Oil and Gas Industry, Practical consideration Illustrative EL PT Steps Sanjib Chowdhury, Wiley & Sons, NJ, USA. N  Notation for Critical Path Analysis Item Symbol Definition Activity duration t The expected duration of an activity Early start ES The earliest time an activity can begin if all previous activities are begun at their earliest times EL Early finish EF The earliest time an activity can be completed if it is started at its early start time PT Late start LS The latest time an activity can begin without N delaying the completion of the project Late finish LF The latest time an activity can be completed if it is started at its latest start time Total slack TS The amount of time an activity can be delayed without delaying the completion of the project  Forward Pass Computation - ES = EFpredecessor (max) - EF = ES + t  next activity ES  unless merge activity (select largest EF of preceding activities) Backward Pass Computation EL - LF = LSsuccessor (min) - LS = LF - t  next activity LF  unless burst activity (select smallest LF of PT preceding activities) N - TS = LF - EF or - TS = LS - ES Problem Solving  Problem Solving Questions EL PT N N PT EL  Problem Solving Questions EL PT N N PT EL Conclusion: In continuation with the last class, this lecture illustrates how to construct a project network, and computation of network process. This includes computations of forward pass and backward pass, determining float/slack, computing critical path, and sensitivity of network. EL All these have been demonstrated by solving numerical, which will be helpful to the students. PT N References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J., Wiley, PMBOK Guidelines Book PT 4. Project Management, Pradeep Pai, Pearson India Education Services Pvt Ltd., N 2019, 1st edition. N PT EL