Project Management 1
Project Management 1
Students Role
Relax and enjoy yourself Participate actively Feel free to ask questions Complete exercises Please switch your hand phones to silent mode Do on time your individual and group assignments Keep maintaining your academic integrity
Better control of financial, physical, and human resources Improved customer relations Shorter development times Lower costs Higher quality and increased reliability Higher profit margins Improved productivity Better internal coordination Higher worker morale
What Is a Project?
A project is a temporary endeavor undertaken to accomplish a unique purpose Attributes of projects
unique purpose temporary definite beginning and ending require resources, often from various areas should have a primary sponsor and/or customer involve uncertainty
RELATED ENDEAVORS
Programs.
is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually
Subprojects.
Projects divided into more manageable components or subprojects. Subprojects are often contracted out to an external enterprise or to another functional unit in the performing organization.
It is the project managers duty to balance these three often competing goals
Project Stakeholders
Stakeholders are the people involved in or affected by project activities Stakeholders include
the project sponsor and project team support staff customers users suppliers opponents to the project
Interview stakeholder to determine their expectation for the project Involves the client as much as possible in the project activities
Knowledge areas describe the key competencies that project managers must develop
4 core knowledge areas lead to specific project objectives (scope, time, cost, and quality) 4 facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management 1 knowledge area (project integration management) affects and is affected by all of the other knowledge areas
Project Charter and WBS (scope) Gantt charts, network diagrams, critical path analysis, critical chain scheduling (time) Cost estimates and earned value management (cost)
The WBS is on the left, and each tasks start and finish date are shown on the right using a calendar timescale.
Each box is a project task from the WBS. Arrows show dependencies between tasks. The bolded tasks are on the critical path. If any tasks on the critical path take longer than planned, the whole project will slip unless something is done.
EAC
250
BAC
200
BCWS or Cumulative Plan 150 BCWS ACWP or Cumulative Actual BCWP or Cumulative EV $
Cost Variance
100 ACWP BWCP
Schedule Variance
50
0 1 2 3 4 5 6 Month 7 8 9 10 11 12
Bosses, customers, and other stakeholders do not like surprises Good project management (PM) provides assurance and reduces risk PM provides the tools and environment to plan, monitor, track, and manage schedules, resources, costs, and quality PM provides a history or metrics base for future planning as well as good documentation Project members learn and grow by working in a cross-functional team environment
Much of the knowledge needed to manage projects is unique to PM However, project managers must also have knowledge and experience in
general management the application area of the project
Project managers must focus on meeting specific project objectives. SMART specific, measurable, achievable, realistic and timelimited
The PMBOK Guide 2000 Edition is an ANSI standard PMIs certification department earned ISO 9000 certification Hundreds of new books, articles, and presentations related to project management have been written in recent years
PMI provides certification as a Project Management Professional (PMP) A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam The number of people earning PMP certification is increasing quickly PMI and other organizations are offering new certification programs Tekmetric / Brainbench Project Management Certification.
By 2005, there were tens of different products to assist in performing project management. Microsoft Project 2003 most popular. Project Portal to promote good project governance transparency, participation and accountability Project Info is a project document keeper and project reporting and monitoring online system.
Microsoft Project
Most people understand what organizational charts are Many new managers try to change organizational structure when other changes are needed 3 basic organization structures*
functional Project Matrix
Functional Organization
Projectized Organization
Composite Organization
Organizational Structure
Several studies cite top management commitment as one of the key factors associated with project success Top management can help project managers secure adequate resources, get approval for unique project needs in a timely manner, receive cooperation from people throughout the organization, and learn how to be better leaders
Standards and guidelines help project managers be more effective Senior management can encourage
the use of standard forms and software for project management the development and use of guidelines for writing project plans or providing status information the creation of a project management office or center of excellence
Define scope of project Identify stakeholders, decision-makers, and escalation procedures Develop detailed task list (work breakdown structures) Estimate time requirements Develop initial project management flow chart Identify required resources and budget
Evaluate project requirements Identify and evaluate risks Prepare contingency plan Identify interdependencies Identify and track critical milestones Participate in project phase review Secure needed resources Manage the change control process Report project status
Communication skills: listening, persuading Organizational skills: planning, goal-setting, analyzing Team Building skills: empathy, motivation, esprit de corps Leadership skills: sets example, energetic, vision (big picture), delegates, positive Coping skills: flexibility, creativity, patience, persistence Technological skills: experience, project knowledge
Project management can be viewed as a number of interlinked processes The project management process groups include
initiating processes planning processes executing processes controlling processes closing processes
PM Knowledge Area
Project Integration Management:
project plan development, project plan execution, and overall change control.
PM Knowledge Area
Project Time Management:
activity definition, activity sequencing, activity duration estimating, schedule development, and schedule control. resource planning, cost estimating, cost budgeting, and cost control.
PM Knowledge Area
Project Quality Management:
quality planning, quality assurance, and quality control.
PM Knowledge Area
Project Communications Management:
Communications planning, information distribution, performance reporting, and administrative closure. risk identification, risk quantification, risk response development, and risk response control.
PM Knowledge Area
Project Procurement Management:
procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract close-out.
PROCESS GROUPS
Initiating processes
recognizing that a project or phase should begin and committing to do so.
Planning processes
devising and maintaining a workable scheme to accomplish the business need that the project was undertaken to address.
Executing processes
coordinating people and other resources to carry out the plan.
Controlling processes
ensuring that project objectives are met by monitoring and measuring progress and taking corrective action when necessary.
Closing processes
formalizing acceptance of the project or phase and bringing it to an orderly end.
PROCESS GROUPS
PROCESS GROUPS
PROCESS GROUPS
PROCESS INTERACTIONS
Inputs
documents or documentable items that will be acted upon.
Outputs
documents or documentable items that are a result of the process.
Scope refers to all the work involved in creating the products of the project and the processes used to create them Project scope management includes the processes involved in defining and controlling what is or is not included in the project The project team and stakeholders must have the same understanding of what products will be produces as a result of a project and what processes will be used in producing them
Initiation: beginning a project or continuing to the next phase Scope planning: developing documents to provide the basis for future project decisions Scope definition: subdividing the major project deliverables into smaller, more manageable components Scope verification: formalizing acceptance of the project scope Scope change control: controlling changes to project scope
There is a need for the project There are funds available Theres a strong will to make the project succeed
Categorizing Projects
Another categorization is how long it will take to do and when it is needed Another is the overall priority of the project
Project Charters
After deciding what project to work on, it is important to formalize projects A project charter is a document that formally recognizes the existence of a project and provides direction on the projects objectives and management Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project Provides the project manager with authority to apply resources
Project Title: Information Technology (IT) Upgrade Project Project Start Date: March 4, 200 Projected Finish Date: December 4, 2002 Project Manager: Kim Nguyen, 691-2784, [email protected] Project Objectives: Upgrade hardware and software for all employees (approximately 2,000) within 9 months based on new corporate standards. See attached sheet describing the new standards. Upgrades may affect servers and midrange computers as well as network hardware and software. Budgeted $1,000,000 for hardware and software costs and $500,000 for labor costs. Approach: y Update the IT inventory database to determine upgrade needs y Develop detailed cost estimate for project and report to CIO y Issue a request for quotes to obtain hardware and software y Use internal staff as much as possible to do the planning, analysis, and installation
Steve McCann
Director of Purchasing
Sign-off: (Signatures of all above stakeholders) Comments: (Handwritten comments from above stakeholders, if applicable) This project must be done within ten months at the absolute latest. Mike Zwack, CIO We are assuming that adequate staff will be available and committed to supporting this project. Some work must be done after hours to avoid work disruptions, and overtime will be provided. Jeff Johnson and Kim Nguyen, Information Technology Department
A scope statement is a document used to develop and confirm a common understanding of the project scope. It should include
a project justification a brief description of the projects products a summary of all project deliverables a statement of what determines project success
After completing scope planning, the next step is to further define the work by breaking it into manageable pieces Good scope definition
helps improve the accuracy of time, cost, and resource estimates defines a baseline for performance measurement and project control aids in communicating clear work responsibilities
A work breakdown structure (WBS) is an outcome-oriented analysis of the work involved in a project that defines the total scope of the project It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes A deliverable-oriented grouping of project elements which organizes and defines total scope of the project.
Project 98 file
Intranet WBS and Gantt Chart Organized by Project Management Process Groups
Using guidelines: Some organizations, provide guidelines for preparing WBSs The analogy approach: It often helps to review WBSs of similar projects The top-down approach: Start with the largest items of the project and keep breaking them down The bottoms-up approach: Start with the detailed tasks and roll them up
Develop and follow a requirements management process Employ techniques such as prototyping, use case modeling, and Joint Application Design to thoroughly understand user requirements Put all requirements in writing and current Create a requirements management database Provide adequate testing Use a process for reviewing requested changes from a systems perspective Emphasize completion dates
Project time management involves the processes required to ensure timely completion of a project. Processes include:
Activity definition Activity sequencing Activity duration estimating Schedule development Schedule control
Project schedules grow out of the basic document that initiate a project
Project charter includes start and end dates and budget information Scope statement and WBS help define what will be done
Activity definition involves developing a more detailed WBS and supporting explanations to understand all the work to be done
Activity Sequencing
Project network diagrams are the preferred technique for showing activity sequencing A project network diagram is a schematic display of the logical relationships among, or sequencing of, project activities
Schedule Development
Schedule development uses results of the other time management processes to determine the start and end date of the project and its activities Ultimate goal is to create a realistic project schedule that provides a basis for monitoring project progress for the time dimension of the project Important tools and techniques include Gantt charts, PERT analysis, critical path analysis, and critical chain scheduling
Gantt Charts
Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format Symbols include:
A black diamond: milestones or significant events on a project with zero duration Thick black bars: summary tasks Lighter horizontal bars: tasks Arrows: dependencies between tasks
CPM is a project network analysis technique used to predict total project duration A critical path for a project is the series of activities that determines the earliest time by which the project can be completed The critical path is the longest path through the network diagram and has the least amount of slack or float
Consider the following project network diagram. Assume all times are in days.
C=2
start
4 5
E=1
A=2
B=5
3
D=7 F=2
finish
a. How many paths are on this network diagram? b. How long is each path? c. Which is the critical path? d. What is the shortest amount of time needed to complete this project?
If one of more activities on the critical path takes longer than planned, the whole project schedule will slip unless corrective action is taken Misconceptions:
The critical path is not the one with all the critical activities; it only accounts for time There can be more than one critical path if the lengths of two or more paths are the same The critical path can change as the project progresses
Knowing the critical path helps you make schedule trade-offs Free slack or free float is the amount of time an activity can be delayed without delaying the early start of any immediately following activities Total slack or total float is the amount of time an activity may be delayed from its early start without delaying the planned project finish date
PERT is a network analysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity duration estimates PERT uses probabilistic time estimates based on using optimistic, most likely, and pessimistic estimates of activity durations Single and average duration estimates
Resource planning: determining what resources and quantities of them should be used Cost estimating: developing an estimate of the costs and resources needed to complete a project Cost budgeting: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance Cost control: controlling changes to the project budget
Resource Planning
The nature of the project and the organization will affect resource planning Some questions to consider:
How difficult will it be to do specific tasks on the project? Is there anything unique in this projects scope statement that will affect resources? What is the organizations history in doing similar tasks? Does the organization have or can they acquire the people, equipment, and materials that are capable and available for performing the work?
Cost Estimating
An important output of project cost management is a cost estimate There are several types of cost estimates and tools and techniques to help create them It is also important to develop a cost management plan that describes how cost variances will be managed on the project
Budgetary Definitive
Later in the project, < Provides details for 1 year out purchases, estimate actual costs
Developing an estimate for a large project is a complex task requiring a significant amount of effort. Remember that estimates are done at various stages of the project Many people doing estimates have little experience doing them. Try to provide training and mentoring People have a bias toward underestimation. Review estimates and ask important questions to make sure estimates are not biased Management wants a number for a bid, not a real estimate. Project managers must negotiate with project sponsors to create realistic cost estimates
Cost Budgeting
Cost budget involves allocating the project cost estimate to individual work items and providing a cost baseline
Cost Control
EVM is a project performance measurement technique that integrates scope, time, and cost data Given a baseline (original plan plus approved changes), you can determine how well the project is meeting its goals You must enter actual information periodically to use EVM. Figure below shows a sample form for collecting information
The planned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approved total cost estimate planned to be spent on an activity during a given period Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period The earned value (EV), formerly called the budgeted cost of work performed (BCWP), is the percentage of work actually completed multiplied by the planned value
To estimate what it will cost to complete a project or how long it will take based on performance to date, divide the budgeted cost or time by the appropriate index.
ACWP
BCWS
BCWP
The International Organization for Standardization (ISO) defines quality as the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs Other experts define quality based on
conformance to requirements: meeting written specifications fitness for use: ensuring a product can be used as it was intended
Grade is a category or rank given to entities having the same functional use but different requirements for quality.
Quality planning: identifying which quality standards are relevant to the project and how to satisfy them Quality assurance: evaluating overall project performance to ensure the project will satisfy the relevant quality standards Quality control: monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality
Noteworthy quality experts include Deming, Juran, Crosby, Ishikawa, Taguchi, and Feigenbaum
Quality Experts
Deming was famous for his work in rebuilding Japan and his 14 points Juran wrote the Quality Control Handbook and 10 steps to quality improvement Crosby wrote Quality is Free and suggested that organizations strive for zero defects Ishikawa developed the concept of quality circles and using fishbone diagrams Taguchi developed methods for optimizing the process of engineering experimentation Feigenbaum developed the concept of total quality control
The Malcolm Baldrige Quality Award was started in 1987 to recognize companies with world-class quality ISO 9000 provides minimum requirements for an organization to meet their quality certification standards ISO 9000 is applicable to any product, service or process anywhere in the world.
Quality Planning
It is important to design in quality and communicate important factors that directly contribute to meeting the customers requirements Design of experiments helps identify which variable have the most influence on the overall outcome of a process Many scope aspects of IT projects affect quality like functionality, features, system outputs, performance, reliability, and maintainability
Quality Assurance
Quality assurance includes all the activities related to satisfying the relevant quality standards for a project Another goal of quality assurance is continuous quality improvement Benchmarking can be used to generate ideas for quality improvements Quality audits help identify lessons learned that can improve performance on current or future projects
Quality Control
Pareto Analysis
Pareto analysis involves identifying the vital few contributors that account for the most quality problems in a system Also called the 80-20 rule, meaning that 80% of problems are often due to 20% of the causes Pareto diagrams are histograms that help identify and prioritize problem areas
Standard Deviation
Standard deviation measures how much variation exists in a distribution of data A small standard deviation means that data cluster closely around the middle of a distribution and there is little variability among the data A normal distribution is a bell-shaped curve that is symmetrical about the mean or average value of a population
Testing
Many professionals think of testing as a stage that comes near the end of product development Testing should be done during almost every phase of the product development life cycle
Several suggestions for improving quality for projects include Leadership that promotes quality Understanding the cost of quality Focusing on organizational influences and workplace factors that affect quality Following maturity models to improve quality
Leadership
It is most important that top management be quality-minded. In the absence of sincere manifestation of interest at the top, little will happen below. (Juran, 1945) A large percentage of quality problems are associated with management, not technical issues
Prevention cost: the cost of planning and executing a project so it is error-free or within an acceptable error range Appraisal cost: the cost of evaluating processes and their outputs to ensure quality Internal failure cost: cost incurred to correct an identified defect before the customer receives the product External failure cost: cost that relates to all errors not detected and corrected after delivery to the customer Measurement and test equipment costs: capital cost of equipment used to perform prevention and appraisal activities
Project human resource management includes the processes required to make the most effective use of the people involved with a project. Processes include
Organizational planning Staff acquisition Team development
Motivation
Abraham Maslow developed a hierarchy of needs to illustrate his theory that peoples behaviors are guided by a sequence of needs Maslow argued that humans possess unique qualities that enable them to make independent choices, thus giving them control of their destiny
Douglas McGregor popularized the human relations approach to management in the 1960s Theory X: assumes workers dislike and avoid work, so managers must use coercion, threats and various control schemes to get workers to meet objectives Theory Y: assumes individuals consider work as natural as play or rest and enjoy the satisfaction of esteem and self-actualization needs Theory Z: introduced in 1981 by William Ouchi and is based on the Japanese approach to motivating workers, emphasizing trust, quality, collective decision making, and cultural values
Projects are more likely to succeed when project managers influence with
expertise work challenge
Projects are more likely to fail when project managers rely too heavily on
authority money penalty
Power
Power is the potential ability to influence behavior to get people to do things they would not otherwise do Types of power include
Coercive Legitimate Expert Reward Referent
Good project managers are empathic listeners; they listen with the intent to understand Before you can communicate with others, you have to have rapport Mirroring is a technique to help establish rapport Professionals often need to develop empathic listening and other people skills to improve relationships with users and other stakeholders
Organizational Planning
Organizational planning involves identifying, documenting, and assigning project roles, responsibilities, and reporting relationships Outputs and processes include
project organizational charts work definition and assignment process responsibility assignment matrixes resource histograms
8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Staff Acquisition
Staffing plans and good hiring procedures are important in staff acquisition, as are incentives for recruiting and retention Remote worker ? Internet based solution for managing project. Research shows that people leave their jobs because they dont make a difference, dont get proper recognition, arent learning anything new, dont like their coworkers, and want to earn more money
Resource loading refers to the amount of individual resources an existing project schedule requires during specific time periods Resource histograms show resource loading Over-allocation means more resources than are available are assigned to perform work at a given time
Resource Leveling
Resource leveling is a technique for resolving resource conflicts by delaying tasks The main purpose of resource leveling is to create a smoother distribution of resource usage and reduce overallocation
Team Development
It takes teamwork to successfully complete most projects Training can help people understand themselves, each other, and how to work better in teams Team building activities include
Team-based reward and recognition systems can promote teamwork Focus on rewarding teams for achieving specific goals Allow time for team members to mentor and help each other to meet project goals and develop human resources
Project Resource Management Involves Much More Than Using Software Project managers must
Treat people with consideration and respect Understand what motivates them Communicate carefully with them
The greatest threat to many projects is a failure to communicate Our culture does not portray PM professionals as being good communicators Research shows that PM professionals must be able to communicate effectively to succeed in their positions Strong verbal skills are a key factor in career advancement for PM professionals
Communications planning: determining the information and communications needs of the stakeholders Information distribution: making needed information available in a timely manner Performance reporting: collecting and disseminating performance information Administrative closure: generating, gathering, and disseminating information to formalize phase or project completion
Communications Planning
Every project should include some type of communications management plan, a document that guides project communications Creating a stakeholder analysis for project communications also aids in communications planning
A description of a collection and filing structure for gathering and storing various types of information A distribution structure describing what information goes to whom, when, and how A format for communicating key project information A project schedule for producing the information Access methods for obtaining the information A method for updating the communications management plans as the project progresses and develops A stakeholder communications analysis
Sample Stakeholder Analysis for Project Communications Name Document Contact Person Due Stakeholders Document
Format Customer Management Customer Business Staff Customer Technical Staff Internal Management Internal Business and Technical Staff Training Subcontractor Software Subcontractor Monthly Status Report Monthly Status Report Monthly Status Report Monthly Status Report Monthly Status Report Training Plan Software Implementation Plan Hard copy Hard copy E-mail Gail Feldman, Tony Silva Julie Grant, Jeff Martin Evan Dodge, Nancy Michaels Hard copy Intranet Bob Thomson Angie Liu First of month First of month First of month First of month First of month
11/1/1999 6/1/2000
Information Distribution
Getting the right information to the right people at the right time and in a useful format is just as important as developing the information in the first place Important considerations include
using technology to enhance information distribution formal and informal methods for distributing information
Performance Reporting
Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives
Status reports describe where the project stands at a specific point in time Progress reports describe what the project team has accomplished during a certain period of time Project forecasting predicts future project status and progress based on past information and trends Status review meetings often include performance reporting
Administrative Closure
A project or phase of a project requires closure Administrative closure produces
Manage conflicts effectively Develop better communication skills Run effective meetings Use templates for project communications
Confrontation or problem-solving: directly face a conflict Compromise: use a give-and-take approach Smoothing: de-emphasize areas of differences and emphasize areas of agreement Forcing: the win-lose approach Withdrawal: retreat or withdraw from an actual or potential disagreement
Conflict often produces important results, such as new ideas, better alternatives, and motivation to work harder and more collaboratively Groupthink can develop if there are no conflicting viewpoints Research by Karen Jehn suggests that taskrelated conflict often improves team performance, but emotional conflict often depresses team performance
As organizations become more global, they realize they must invest in ways to improve communication with people from different countries and cultures Companies and formal degree programs often neglect the importance of developing speaking, writing, and listening skills It takes leadership to improve communication
Determine if a meeting can be avoided Define the purpose and intended outcome of the meeting Determine who should attend the meeting Provide an agenda to participants before the meeting Prepare handouts, visual aids, and make logistical arrangements ahead of time Run the meeting professionally Build relationships
A communications infrastructure is a set of tools, techniques, and principles that provide a foundation for the effective transfer of information Tools include e-mail, website, project management software, groupware, fax machines, telephones, teleconferencing systems, document management systems, and word processors Techniques include reporting guidelines and templates, meeting ground rules and procedures, decision-making processes, problem-solving approaches, and conflict resolution and negotiation techniques Principles include using open dialog and an agreed upon work ethic
There are many software tools to aid in project communications Microsoft Project 2003 includes several features to enhance communications Project Portal Good Project Governance transparency, participation and accountability Project Info Project Document Online Repository secure project document keeper.
Risk Management Planning : deciding how to approach and plan the risk management activities for a project Risk Identification : determining which risks might effect the project and documenting their characteristics Qualitative Risk Analysis : performing a qualitative analysis of risks and condition to prioritize their effect for project objectives Quantitative Risk Analysis : measuring the probability and consequences of risks and estimating their implications for project objectives Risk Response Planning : developing procedures and techniques to enhance opportunities and reduce threats to the project objectives Risk Monitoring and Control : monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cylce.
Risk management must be done during the whole life of the project All risks have a probability > 0 and < 100% A risk event that has a probability = 100% is not a risk Anyone involved with the project should have access the project risk management plan
Risk Tolerance
Risks that may not be considered as important to the project are : Risks that have very high probabilities and very low impacts, and Risks that have very low probabilities and very high impacts Risks we need to worry about are those that have a reasonably high probability and high impact
Conduct Risk Brainstorming Sessions with Staff, Users, Vendors, Customers, and Management
Try to assess the direction of thinking by third parties as they may give an indication of future requirements, expectations, or vendor changes. If your dependent on vendors, try to understand their business situation.
Documentation review
Reviewing lessons learned and risk management plans from previous projects Reviewing WBS, contract obligations, project baseline for scope, schedule and budget, resource avaibilities, staffing plans, suppliers
Brainstorming
Meeting is called to make a comprehensive list of risks participants : 10 to 15 The meeting < 2 hours Participants can name risks No discussion Another participants give new ideas for possible risks
Delphi Technique
Similar to brainstorming but the participants do not know one another (anonymous) useful if the participants are some distance away (particularly using email) Process : Facilitator distributes quesionnaire to the participants to submit risk ideas Facilitator catagorize and clarify the responses, then circulate to the participant for comments or addition
Crawford Slip
It does not require as strong a facilitator as the other techniques It produces ideas very quickly < 1/2 hour Process : The facilitator asks question The participants write down the answer After one minute, the facilitator ask the same question and the participants have to make different answer This is repeated 10 times
What is the likelyhood of occurrence? What is the impact if it occurres? What will we lose if the risk occurs?
Determine Impact
Determine Exposure
Risk #1
Risk #4
Priorities
Red - High Yellow - Med Green - Low
Risk #3
Lower Impact
Risk #2
Risk #5
Lower Probability
Higher Probability
Probability of Occurrance
Estimate Probability of an Given Outcome P(O) Estimate $ Loss of an Given Outcome L(O) Multiply the P(O) by L(O) to give $ exposure for the unwanted outcome
Sum all $ exposures for each Possible Action Compare the $ exposures Calculate Risk Leverage
(Risk Exposure Before Reduction - Risk Exposure After Reduction) / (Cost of Risk Reduction)
Yes
L(O) = $30M
L(O) = $0.5M
L(O) = $0.5M
L(O) = $30M
L(O) = $0.5M
Risk Control
Risk Reduction Contingency Planning Monitoring
Risk Reduction
Contingency Planning
Some risks cannot be reduced Plan for risk occurrence Why?
Monitoring
Periodic Review of Project to Identify New Risks Implementation of Risk Avoidance or Mitigation Plans Keep Management and Customers Informed!!!
Frequent Risk Reviews
Procurement Planning: determining what to procure and when Solicitation Planning : documenting product requirements and identifying potential sources Solicitation : obtaining quotations, bids, offer, or proposals, as appropriate Source Selection : choosing from among potential sellers Contract Administration : managing the relationship with the seller Contract Closeout : completion and settlement of the contract, including resolution of any open items.
Contract types
CPPF
CPIF
CPFF
FPPI
FFP
A project plan is a document used to coordinate all project planning documents Its main purpose is to guide project execution Project plans assist the project manager in leading the project team and assessing project status Project performance should be measured against a baseline project plan
Stakeholder Analysis
A stakeholder analysis documents important (often sensitive) information about stakeholders such as
stakeholders names and organizations roles on the project unique facts about stakeholders level of influence and interest in the project suggestions for managing relationships
Role on project
Unique facts
Sponsor of project and one of the company's founders Demanding, likes details, business focus, Stanford MBA Very high Very high; can call the shots
Lead programmer
Supplies some instrument hardware Start-up company, he knows we can make him rich if this works Very high Low; other vendors available
Very smart, Ph.D. in biology, easy to work with, has a toddler Very high
Best programmer I know, weird sense of humor High High; hard to replace
Subject matter expert; critical to success Make sure Suggestions Keep on managing informed, let she reviews specification relationship him lead conversation s and leads testing; can s ,do as he do some says and work from quickly home
Nice guy, one of oldest people at company, has 3 kids in college Low to medium Low to medium
Keep him happy so he stays; emphasize stock options; likes Mexican food
He knows his project takes a back seat to this one, but I can learn from him
Work Authorization System: a method for ensuring that qualified people do work at the right time and in the proper sequence Status Review Meetings: regularly scheduled meetings used to exchange project information Project Management Software: special software to assist in managing projects
Integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle (Note: 1996 PMBOK called this process overall change control) Three main objectives of change control: Influence the factors that create changes to ensure they are beneficial Determine that a change has occurred Manage actual changes when and as they occur
Former view: The project team should strive to do exactly what was planned on time and within budget Problem: Stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate Modern view: Project management is a process of constant communication and negotiation Solution: Changes are often beneficial, and the project team should plan for them
Some CCBs only meet occasionally, so it may take too long for changes to occur Some organizations have policies in place for time-sensitive changes
48 hour policy allowed project team members to make decisions, then they had 48 hours reverse the decision pending senior management approval Delegate changes to the lowest level possible, but keep everyone informed of changes
Configuration Management
Ensures that the products and their descriptions are correct and complete Concentrates on the management of technology by identifying and controlling the functional and physical design characteristics of products Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements
y y
View project management as a process of constant communications and negotiations Plan for change Establish a formal change control system, including a Change Control Board (CCB) Use good configuration management Define procedures for making timely decisions on smaller changes Use written and oral performance reports to help identify and manage change Use project management and other software to help manage and communicate changes
Controlling
Project Change Control Form , Problem and Change Record Form , Project Change Request Form , Project Change Request Summary Sheet , Revision Record , Project Details , Progress Report, Monthly Status Report , Project Task Progress Report, Meeting Agenda and Minutes Meeting Action Items , Meeting Evaluation