PROJECT MANAGEMENT
TOOLKIT
Manage Projects Professionally
Important Stuf
Setting Standards
What setting you want today?
What learning environment
would you prefer?
Formal or Informal?
Lecture-based or interactive?
Would you like others to talk
on the phone during the
program?
Would you like to receive
rewards for good performance?
Important Stuf
Setting Standards
Not a training program
This is an EXPERIENCE
Learning Experience
for ALL of us
Be ready to give and
receive constructive
criticism
Learning Contract
A contract between
YOU and YOURSELF
Write ONLY what you
want to remember
later
Not more than 10
points
The Only Barrier to
Learning the Truth is to
Assume You Already
Know It
Confucius
Preparation
Why perform Project Management
Project Intro
Understanding the Expectation Game
What is a Project
Project Definition : "A temporary endeavor undertaken to create a
unique product, service or result"
Features
Temporary: Has a finite duration, project ceases when its objective is achieved. Does
not mean short duration. Normally, the product/service will outlive the project
Unique : Doing something that has not been done earlier
Progressive Elaboration: "Developing in steps, and continuing in increments".
Development of details progressively
Environment
Constantly changing
Building and Dismantling
Precedes Operations
What is a Project
Projects and Operations
Similarities:
Diferences:
Performed by people
Constrained by limited resources
Planned, executed and controlled
Operations: Ongoing, repetitive, necessary for sustaining the business
Projects: Temporary, unique.
Projects and Strategic Planning
Projects are used to achieve strategic plans
In response to market demands, customer requests, organizational needs,
technological advances, legal requirements.
What is Project Management
Application of
Knowledge (e.g. Domain areas
- Pharmaceutical, construction,
etc.)
Skills (Managing)
Tools & Techniques (Software)
Project activities (e.g Time
Management, Cost
Management, etc.)
PM is accomplished through
processes
Project work typically
involves
The GOAL
Project objectives
Prepare Plan Execute - Close
Identifying requirements
Defining objectives
Balancing the competing
demands for Scope, Time, Cost,
and Quality
Managing stakeholders
Why Project Management?
To enhance the probability of project success
To focus on objectives - Scope, Time, Cost, Quality & Risk
For efective response to rapid changes
To manage efective utilization of resources
To address stakeholders interests
To manage risks efectively
Achieve Financial Efficiency
Project Cost
Project Time
Project Quality
Lessons Learnt
Create re-usable data and information for future use
Project Lifecycle
No ideal project lifecyle
It defines
What work to do in each
phase
What deliverables to be
generated
Who all are involved in
each phase
How to manage each
phase
Project Lifecycle
Common characteristics
Phases are generally
sequential
Cost and staffing are low at
the start, peak in the middle
and are low again
Risk is high at the start and
slowly declines
Influence of stakeholders is
highest at the start and
declines slowly
Project Phases
Preparaing
Panning
Defines and refines objectives, and plans the course of actions required to attain the
objectives and scope that the project was undertaken to address
Executing
Defines and authorizes the project or a project phase
Integrates people and other resources to carry out the project management plan for the
project
Regularly measures and monitors progress to identify variances from the project management
plan so that corrective action can be taken when necessary to meet project objectives
Closing
Formalizes the acceptance of the product, service or result, and brings the project or a project
phase to an orderly end
Project Charter
The document that formally authorizes the project
Authorizes Project Manager to apply organizational
resources
PM should be assigned at the earliest feasible, but
should always be assigned before start of the planning
phase, or during charter development
The Initiator or Sponsor is external to the project
organization at a level appropriate to funding the
project
Project Charter
Project Charter should address the following
Requirements of the customers, sponsors and other stakeholders
Business needs, project justification, strategic plan
Assigned PM and authority (some other resources may also be pre-assigned)
Product description/deliverables
Summary milestone schedule
Stakeholder influences
Functional organization and its participation
Constraints and assumptions relating to organization, environment and external
factors
Summary budget
Any change in the Project Charter should question the continuance of the project
Planning
Well planned is almost done
Project Activity Planning
The Columbus Disease
He left but he didnt know where he
was going
When he got there he didnt know
where he was
When he got back he didnt know
where he had been
And he did this three times in seven
years
Project Planning
Planning is a process not an outcome
Planning should address
Setting the boundaries | Scope statement
Activity planning
Activity schedule development
Cost planning
Risk planning
Scope Statement
Project scope statement should address the following areas:
Project and product objectives
Product/service requirements and characteristics
Product acceptance criteria
Project boundaries What is included and what is not
Project requirements and deliverables
Project constraints
Project assumptions
Initial project organization
Initial defined risks
Schedule milestones
Initial Work Breakdown Structure
Project Activity Planning
Steps to develop project activity schedule
Specify the individual activities (WBS)
Determine the sequence of these activities (Activity Table)
Draw a sequence diagram (AON or AOA)
Estimate the completion time for each activity (Activity
Estimates)
Identify the critical path (Using CPM)
Create a schedule of activities
Update the schedule / diagram as the project progresses
Activity Identification Tool - WBS
Deliverable-oriented hierarchical decompositions of project work
Creates the required deliverables
WBS organizes and defines the total scope of the project
Subdivides the project work into smaller, more manageable
pieces of work
Has descending levels with increasingly detailed definition of the
project work
Lowest level WBS components are called work packages; they
can be scheduled, cost-estimated, monitored and controlled
WBS
Characteristics
Manageable (specific
authority/responsibility
assigned)
Independent (with respect
to other elements
o( projects)
Integrateable {so that the
total package can be seen)
Measurable (each
deliverable)
Purpose
To simplify a complex project - it is a
summation of elements
Planning can be better performed
Duration, cost and budget can be
established
Time, expenditure, and performance can
be tracked
Network and Control Planning can be
initiated
Responsibilities and Resources can be
assigned
Omission/duplication of tasks can be
avoided
Provide a common structure and coding
system
Creating WBS
Templates
Decomposition
Subdivision of project
deliverables into smaller
chunks
Goal : create work packages
May not be possible for
deliverables that are far into
the future
Diferent deliverables may
have diferent levels
Sample WBS
Sample WBS
Task Sequencing
Identification of
logical sequencing
among schedule
activities
Allows for a smooth
flow of project
activities
Helps to identify the
most efficient way to
Task Sequencing Tool - PDM
Precedence Diagram Method
Helps to develop project schedule
Identifies dependencies of
diferent activities to establish the
fastest path to task completion
Most useful for complex projects
Visual display helps to
communicate activity execution
Identifies missing activities
Also known as AON
PDM
Terms to remember
Four types of dependencies
Events
Activity
Dependency
Finish to Start (most common)
Start to Start
Finish to Finish
Start to Finish (rarely used)
Practice
Building a PDM
Task Sequencing Tool - ADM
Arrow Diagram Method
Another way to create a
schedule network diagram
AOA Activity on Arrow
Diference
Activities are identified on arrows
Activities connect on nodes to show
dependencies
Only has Finish to Start dependency
Can also have dummy nodes
Less commonly used in project
planning
Sample ADM
Practice
Perform Task
Sequencing through
PDM
ADM
Sample Project Activities
Duration Estimate Tools
Parametric Estimate
Determined by multiplying
the quantity of work by
the productivity rate
Construction work per
square foot
Design work labor hour
per design
Drilling time taken per
cubic inch
Three-point Estimate
Helps to consider the
amount of risk in the
initial estimate
Considers 3 types of
estimates
Most likely
Optimistic
Pessimistic
Schedule Development
Outlines the proposed timelines
for the project activities
Is an iterative process
Is typically completed AFTER
activity duration estimate
Serves as the baseline against
which project progress can be
tracked
Schedule Development Tool - CPM
Dupont developed the concept in 1957 to address the shutting of plants
for maintenance
Helps to identify the path of activities where any delay WILL cause a delay
in the project timeline
For activities outside the Critical Path, there is tolerance for
Used to be carried out by hand now there are software available
Late start
Late finish
Early start
MS Project
Primavera
Schedule activities on the Critical Path are called Critical Activities
More on CPM
Calculated by estimating the following 4 parameters for each activity
ES - Earliest start time
EF - Earliest finish time
Latest time at which the activity can be completed without delaying the project
Slack Time
Equal to the latest finish time minus the time required to complete the activity
LF - Latest finish time
Equal to the earliest start time for the activity plus the time required to complete the activity
LS - Latest start time
Earliest time at which the activity can start given that its precedent activities must be completed first
Time between its earliest and latest start time
Amount of time that you can delay an activity without delaying the project schedule
Critical Path
A path in which all activities have ES = LS and EF = LF
Why CPM
CPM helps to identify
Diferent activities that MUST be completed on time for
the project to stay on schedule
Which activities can be delayed and their resources can
be reallocated
Minimum duration of the project
Early start and late start time for each activity in the
schedule
Schedule Compression Tools
Schedule Compression
Helps to shorten project schedule WITHOUT changing the project scope
Compression techniques
Crashing
Cost and Time tradeofs are analyzed to determine the greatest amount of project
compression
Often results in increased cost
Fast Tracking
Sequenced activities are performed in parallel
E.g. foundation work is started before detailed architecture drawings are complete
Increases project risks
Project Cost Planning
Why Perform Cost Planning
Helps to manage the cost of the
resources needed to complete
schedule activities
Projects cash outflows at diferent
stages of the project
Helps to highlight the risk of major
cost over-runs
Establishes a baseline to compare
with the actual project cost
Helps the sponsors to decide
whether to continue or shut the
project
Cost Planning Tools
Bottom-up Estimating
Starts from Work Packages from bottom level activities
Add up their costs and work upwards
Aggregate the costs to reach a final figure
Pros and Cons
Upside is more accurate, cost changes can be recorded
easily
Downside takes more time, requires detailed knowledge
Parametric Estimating (discussed earlier)
Cost Planning Tools
Top-down Estimating (Analogous Estimating)
Takes cost inspiration from similar projects, tasks
Starts from the top and work downwards
Divide the cost figures among diferent sub-projects or tasks
Pros and Cons
Upside quick and easy to use, good for early-stage planning
Downside often is very inaccurate, can mislead if used at a later stage
Reserve Analysis
Contingency factor what-if scenario
Downside can over-state the cost estimate of schedule activity
Remedy aggregate reserves for a group of activity and assign it to a dummy
task
Inputs for Cost Planning
Enterprise Environment Factors
Organizational Process Assets
Project Scope Statement
Work Breakdown Structure
WBS Dictionary
Project Management Plan
Schedule Management Plan
Staffing Management Plan
Risk Register
Project Risk Planning
What is Project Risk
Probability of an uncertain event or condition with a positive or
negative efect on any one of the following project objectives
Scope
Cost
Time
Quality
Examples
Probability of delay in acquiring a permit from the government for an aspect of
the project
Probability of unavailability of adequate resources assigned for a particular task
Probability of increase in resource cost
Understand Risk
Types of risks
Known risks something we can plan for
Unknown risks we are caught of guard
Risks threats or opportunities?
Taking risk against profitable gain
Risks that ofer opportunities
Using Fast Tracking to shorten project timeline
Lowering of taxes on project resources, brining cost down
Attitude toward risk?
Fear and avoid
Accept and face
Risk Planning Process
Risk Identification
Documenting which risks might afect the project
Is an iterative process
Leads commonly to qualitative analysis
Grouping of risks with respect
PM should decide the frequency of review
How they relate to each other
How they impact the project objectives
Their probability
Risk Register
A collection of all types of risks and their characteristics
This is the output of the process
Risk Identification Tools
Brainstorming
Gather with diferent stakeholders in
separate groups
Collect the risks they identify
Consolidate
Delphi Technique
Asks a group of experts anonymously
a set of questions about potential
risks
Consolidate data
Send it to the experts again and seek
comment
Repeat 3-5 times
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats (these are your risks)
Checklist Analysis
Historical data
Risk Register from another
project
Use the data gathered to
prepare a checklist
Sample Risk Register
Risk Impact Scales
Qualitative Risk Analysis
Helps to prioritize project
risks
Sets you up for the next step
Risk probability
Risk impact
Risk tolerance for Scope, Cost,
Quality and Time
Advantages
Either quantitative risk analysis
Or risk response planning
Main ingredients
Easy and simple to use
Gives a ballpark figure
of risk impact value
Disadvantages
Too simple for complex
projects
May be inaccurate
Tool | Risk Matrix
Helps you to
Visualize the efect of
diferent risks
Gives you the big
picture
Risk Matrix
High
Probability
Low Impact
High
Probability
High Impact
Low Probability
Low Impact
Low Probability
High Impact
Charts risks
X-axis Risk Impact
Y-axis Risk Probability
Tool | Probability-Impact Matrix
Risk probability
Risk impact
Positive risk opportunities
Negative risk threats
Risk Factor
Potential efect of a certain risk on any of the four project objectives: scope, time, quality and
cost
Assesses both positive as well as negative risk
Likelihood that a certain probability will occur
Result of multiplying risk probability with risk impact
Gives the final impact of a certain risk
Risk data quality
Ask experts avoid bias look at historical data
Sample | Probability-Impact Matrix
Project Objective
To establish a new territorial
office
Potential Risks
Inflation higher than
estimated
Project team members leaving
before project completion
Changes in project scope
Security situation of the area
Probabi
lity
Impact
P*I=
Final
Risk
Higher
Inflation
0.4
0.7
0.28
Higher
Turnover
(Project
Team)
0.1
0.2
0.02
Scope
Change
0.2
0.6
0.12
Security
Situation
0.5
0.5
0.25
Risk
Name
Qualitative Risk Analysis | Output
Qualitative analysis results in
Ranking of diferent risks
Grouping of risks
List of risks requiring response in the near-term / longterm
List of risks for additional analysis
Risk Response Planning
Process of developing responses to
Enhance opportunities
Reduce threats
Should address risks based on their Risk Factor or
priority
Helps to create some cushion by
Allocating extra budget
Allocating extra time
Tools | Risk Response Strategies
Responding to Threats
Avoid
Responding to
Opportunities
Transfer
Change the PM plan to avoid a risk
Shifting the impact and ownership
of risk to third party (insurance
policy)
Mitigate
Work to reduce the probability or
impact of a risk (test marketing,
prototyping)
Proactive Vs Reactive
Exploit
Share
Seek to face the risk head on
(assigning better talent to a
task)
Sharing the ownership with a
third party (JVs)
Enhance
Seek to increase the probability
or impact of the positive risk
Executing
Executing to Perfection
Project Communication Management
Communicating What Needs Execution
Communications Management
Objective
To ensure timely and appropriate generation, collection,
distribution, storage, retrieval and ultimate disposition of
project information
Processes for communication management
Information distribution
Performance reporting
Stakeholder communication management
Information Distribution
Broad Strategy
Need-to-know basis
Restricts access Keeps security intact Maintains strong
lines of separation Keeps the focus of the members intact
Want-to-know basis
Opens access Risks information proliferation Allows for
involvement May increase distraction
Information Distribution | Tools
Distribution Triggers
Formal
Event significance identification
Style
Frequency
Event-based reports / meetings
No specific formats
Isolated meetings
Project team meetings
E-sharing thru project management
systems
E-mails and file sharing systems
Content
High-level
Standard templates
Informal
Methods
Time-based reports / meetings
Less details
Focuses on output / deliverable
Low-level
More details
Focuses on processes
Performance Reporting
Purpose
To continuously assess current project performance
against project estimated baselines related to
Scope
Quality
Time
Cost
Performance Reporting | Tool
KPI Key Performance Indicator
Why
Numbers dont lie
Helps to measure performance objectively
Remember that KPIs should
Connect with either one of the four project objectives (SCTQ)
Measure live project performance
Should be designed so they result in numbers or %
Will measure the performance result against baseline
estimates
Stakeholder Communication
Management
Purpose
To satisfy the needs of and resolve issues with project
stakeholders
Suggested Strategy
Need to know basis well-defined lines of
communication separation
Active engagement answer before they question
Risk Management
Communicating What Needs Execution
Risk Management
Objective
Executing the risk plans and reassessing them to meet
project objectives
Risk Monitoring and Control
Assess the assumption of earlier identified risks
Monitor the progress of risk response execution
Identify and analyze new risks
Risk Management | Tool
Risk Audit
Variance Analysis
Examines and documents the risk responses and compares it against the
established baselines
Subjective activity helps to see the trend and reassess the risk responses
Identifies how much the actual progress has deviated from the baseline estimates
Statistical method
Provides an objective analysis
Reserve Analysis
Risks will occur your reserves will get consumed, but how much?
Analyze the use of reserves consumption
Quality Management
Quality Management
Quality
Purpose
Degree to which a set of inherent characteristics meet requirements
To ensure the baseline quality targets are met through
Achieved through
Quality Assurance
To ensure that processes are being followed as planned and proposed
Quality Control
To ensure specific project deliverables meet the quality standard that was
planned and proposed
Quality Assurance
Application of planned and systematic activities to ensure that
processes are in line to meet the project objectives
Negates Dont fix it if it isnt broken philosophy
Setup
A separate designated team
Quality Circles
Members from within the team are assigned and rotated to perform QA
Benefits
Checks deviations before they result in bad quality deliverable
Paves way for Continuous Improvement (Kaizen?)
Helps to develop stronger standards for processes
QA | Tools
Quality Audits
Structured review activity to check whether project processes
comply with organizational / project policies and procedures
Shouldnt be announced best when done without prior notice
Conducted by trained in-house personnel
Process Analysis
A scheduled activity to systematically review processes in view
of the deliverables and project objectives
Feedback from project members
Quality Control
Monitoring of specific project deliverables to check whether they
comply with planned / proposed quality standards
Setup
An independent team performs quality checks
Done through sampling
Statistical analysis to identify patterns and then identify root cause
Benefits
Keeps poor quality deliverables from reaching in the hands of the customer or
sponsor
Helps to identify poor inputs into activities
Arrests trends that could lead to further deterioration in quality of the deliverables
Change Management
Change Management
Purpose
To assess, record and incorporate any changes to the project
objectives mainly T-Q-S-C
Is performed from inception to completion
Is important as projects seldom get executed exactly
as planned
Is often a result of a risk being materialized
Positive risk positive change
Negative risk negative change
Change Management
Steps to perform control and manage changes
Identify the need for a change in the project objectives
Review request for changes
Assessing the efects of proposed changes to SCTQ
Inform and review the proposed changes with
stakeholders
If approved, document and update all SCTQ baselines
Closing
The Destination
Closing Project
Closing Project
Structured process
Ensure that deliverables are handed over to project
sponsors or customers
Document and archive project records for future projects
Ensure project deliverables are accepted by sponsors /
customers
Perform comparative analysis of initial baseline
estimates and final output
Documentation
Purpose
To ensure that all important activities, policies, processes and
deliverables are documented for review
Benefit
Facilitates project performance analysis
Allows for comparative analysis between projected and actual
Makes templates available for future projects
Some policies and processes can be utilized by other departments
in organizations
Provides important data for operations
Thanks
