Project Management for Your Local Section / Chapter

Lee Stogner, PMP

2005 Leadership Workshop Tucson, Arizona March 12, 2005

Seminar Objectives
To: Provide tools and ideas for more effectively executing your projects Develops understanding of the need to execute your projects more effectively Develops understanding of some basic project management principals and practices Promotes teamwork All your organization's projects will be successful

In a way that:

So that:

Benefits of Sound Project Management

Less overall project cost Less strain on working capital Effective use of resources More timely project completion Higher quality of the final product

Project Management Overview

What is a project? What is project management? What is project success? What factors determine project success?

A Project
When a task...

Has a defined objective Has a deadline Requires integration of knowledge and experience from various organizations

PM

PM Project Management is:

PM PM PM

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PM Project Management is:

Causing a Planned PM Undertaking to Happen

PM

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Project Management

Complex and numerous activities Unique - a one time set of events Finite - a begin and end date Limited resources and budget Many people involved Sequenced activities End product or service must result

Program Management

Larger in scope than a project Made up of several projects Made up of a number of similar products Programs tend to be more permanent

Peanuts

What is Project Success?

Factors in Project Success

Project Management Philosophy Project Management Role and Responsibility Project Management Principles and Practices

Project Management Philosophy

The Golden Rule of Project Management is three words:

Plan Organize Control

Project Management Roles and Responsibilities

Project Execution Maintain Customer Relations Create a Positive Environment

Project Execution Plan

Project Execution Strategy Project Management Quality Safety Risk Management Design/Develop/Program Implementation Documentation Training

Customer Relations

Develop Communication Ensure Timely Participation Include the Customer on the Project Team Develop Trust and Confidence

Create a Positive Environment

__________ Effectively __________ Member of the Team Utilize _______ _______ Activities __________ Success

Maintain a safe working environment

Safety

Project Management Principles and Practices

Define Project Objectives Develop Project Execution Plan Define Baselines for Control Manage Risk Close out Effectively

Define Project Objectives

Expected deliverables Required resources (total installed cost) Required timing (opening date) Safety and Environmental Total Quality

Define S.M.A.R.T. Project Objectives

S pecific M easurable A ssignable R ealistic T ime related

Alignment Process

Team Requirements

Skills needed ? Individuals identified ? When are they needed ? Where are they ? Training needed ? Interpersonal compatibility ?

The Four Cornerstones of Project Management

Cost

Schedule

Scope

Quality

Cornerstones of Project Management

Cost

Schedule

Scope

Quality

Scope

Poor scope definition is the major

contributing factor to cost overruns in the engineering and construction industry.

CAUTION

Cost Influence Relative Time

Initial Scoping Effort

Sets the baseline for cost and schedule Must involve the right people Must include implementation Identifies items not included Maximum influence on project cost Breaks project into manageable pieces

The WBS
Drawings Estimate

Facility Services

WBS Element/ Work Package

Bill of Materials

Schedule

Cost Reports

Contracts

Successful Work Breakdown

Status and completion is easily measured Definite beginning and end It is familiar with prior experience Manageable work assignments One continuous stream of work from start to finish

Steps for constructing a WBS

Divide the project into major objectives Partition objectives into activities Divide activities with missing characteristics into subactivities Repeat #3 until all subactivities have desired characteristics Lowest subactivities are the basis of work packages

Creeping scope
The effect of creeping scope is a major cause of cost overruns

To manage creeping scope

Keep scope documents current Freeze design after the estimate has been approved Allow only those changes that are justified by benefit Use an effective change management procedure

The Four Commandments of Good Project Scope

Written Well defined Clearly understood Achievable

Cornerstones of Project Management

Cost

Schedule

Scope

Quality

Aspects of Cost

Estimate Cost Control

Basis for Control Application of control procedures to follow financial progress

Estimate Requirements

Define project cost

integrate scope, schedule, and resources

Define estimate basis Identify potential risks Identify contingency/escalation Identify items not included

Elements of Cost Control

Establish the baseline (estimate) Measure variation from baseline Take corrective action

Cost Control System

Detailed project scope/work package Control estimate Chart of accounts Cost status report Forecasting process Change management procedure Cash flow forecast

Project Control

Project Day 1 -------------To do list:

Kick off meeting Project schedule

Integration of Cost and Time

Basic Elements of the Control System

A project plan: Scope, schedule, estimates A monitoring system which measures performance against plan A reporting system which identifies deviations from the plan A system which communicates deviations to the right people Corrective actions Forecasting the project outcome

Key Control Philosophies

Define the baseline for control

1._______ 2. ________ 3. _______ 4. ________

Divide project into manageable pieces Remember: Ability to influence cost is maximum early in the project

Key Control Philosophies (cont)

Define and manage risk/opportunity Integrate scope and estimated cost into schedule Make informed decisions Anticipate deviations/changes Adopt the end product approach Plan ahead from phase to phase

Basic Project Control Steps

Define the project scope Develop a project plan consistent with: project scope estimates (cost constraints) schedule (constraints resources available Report progress and compare with budget and forecast Control by taking corrective action

Contingency - Plan for Change

Cornerstones of Project Management

Cost

Schedule

Scope

Quality

Schedule

Planning -

Identification of the sequence of events necessary to complete the project Scheduling - Determination of timing and assembly of project activities to give overall completion time

Front End Schedule

A way to get the project started right Design Program Install / Test System Turnover

Basis for Project Schedule

Project objectives Project scope Project milestones Project estimate (budget) Resource availability

The Critical Path

Identifies project priorities Shows activity relationships Enables schedule analysis Reflects project strategy Promotes teamwork

Basic Network Diagramming

Expanded Network Diagramming

The Bar Chart

The Gantt Chart

Project Schedule - Tools

Microsoft Project

Project Schedule - Tools

www.primavera.com

Five Phases of Project Management

Cornerstones of Project Management

Cost Schedule

Scope

Quality

Total Project Quality Management

Quality Assurance

Quality Control

Total Project Quality Management

Design Basis

Continuous Improvement

Project Quality Improvement

Develop a quality management plan early in the project Include representatives from all affected organizational units on the project team Initiate the project effectively through kick-off and alignment meetings Review performance and measure success

Project Quality Improvement (cont)

Define scope and review periodically Limit scope changes formal change procedure require justification Complete more engineering up-front before defining cost and scheduling Obtain constructability, operability and maintainability input to design

Cost of Quality

Risk Management

Manage Risk

What is risk? Sources of risk Kinds of risk Risk Management Process

Identify risks Define consequences Develop a mitigation plan Document

Sources of Risk
Technical

Financial
Socio-Economic Contractual

Risk Management Process

Identify Risk

Analyze Risk

Respond to Risk

Document Risk

Sources of Help to Identify Risk

Site investigations Contract documents Schedule Team brainstorming Body of experience

Risk Control Methods

Avoid Reduce Share Insure Accept

with contingency without contingency

Contain

Risk Containment
Clearly define insurance responsibilities in contracts Use qualified personnel Document and communicate project strategy Define roles and responsibilities Prepare contingency plans for critical activities Use up-front team building

Risk Containment (cont)

Use qualifies contractors and vendors Preconstruction work briefings (especially safety) Rehearse critical activities or use mock-ups Use strong project control systems Manage contingency

Project Close-out

Project Closeout - Major Phases

Obtain client acceptance Document the project Conduct the post implementation audit Issue the final report

Pyramid Cartoon

Successful Project Management

Plan the Work Work the Plan

Successful Project Completion

Project Management - Learning More

www.pmi.org

Project Management - Learning More

Project Management Body of Knowledge

Project Management - Learning More

www.amazon.com

Project Management - Get Certified

www.pmi.org

Project Management - IEEE EMS

www.ewh.ieee.org/soc/ems

Class Exercise - Plan a Project

Lee Stogner - Contact Information

Lee Stogner, PMP Rockwell Automation Mobile 864-360-9415 Email l.stogner@ieee.org