Office of Innovations and Solution

ACB-1

Project Management
Principles and Practice for Managers
Presented by: Pat A. Eigbe, PMP
Office of Innovations and Solutions, ATO-P
February 17, 2004
 Briefing Outline
Project Management (PM) as a Tool
Project Management Terminology

PM Relationship to other Disciplines

Project Management Processes

Project Management Tools & Techniques

Summary/Conclusion

Questions

February 17, 2004 Pat A. Eigbe, PMP 2

 Project Management as a Tool
Minimize Fire Drills
Efficient Use of Resources

Develop Better Metrics

On-time and On-budget Product Delivery

Apply Lessons Learned

Better Communications Between

Stakeholders
Make Proactive Decisions
February 17, 2004 Pat A. Eigbe, PMP 3
Project Management (PM) Terms
Project - A temporary endeavor undertaken
to create a unique product or service.
ATOP or VSCS - Project has a specific
purpose with a start and an end date.
Project Management - the Application of
Knowledge, Skills, Tools, and Techniques to
Project Activities to Meet Project
Requirements.

February 17, 2004 Pat A. Eigbe, PMP 4

 Project Management Terms II
Program - A group of related projects
managed in a coordinated way. Programs
usually include an element of ongoing
activity.
CPDLC, SMA, URET CCLD, pFAST,as FFP1
PM Tools Development as part of Program
Management
A Project/Program Manager (PM) - The
Individual Responsible for Managing a
Project/Program.
February 17, 2004 Pat A. Eigbe, PMP 5
 Project Management Terms III
Work Breakdown Structure (WBS) -
A deliverable-oriented grouping of
project elements that organizes and
defines the total scope of the project.
Each descending level represents an
increasingly detailed definition of a
project work.

February 17, 2004 Pat A. Eigbe, PMP 6

 Project Management Terms IV

FAA standard wbs1-0.ppt

WBS Dictionary 3.1

Requirement to use FAA Standard

WBS Mandatory

February 17, 2004 Pat A. Eigbe, PMP 7

 Project Management Terms V
Deliverable Tangible, verifiable work product or service.
Work Package A deliverable at the lowest level of the
work breakdown structure. A work package may be
divided into activities.
Activity - Work elements with expected duration, cost, &
resources that may be subdivided into tasks.

February 17, 2004 Pat A. Eigbe, PMP 8

 Project Management Terms VI
Stakeholder Individuals or Organizations
that will be Impacted by the Outcome of a
Project.
OBS: An Organizational Chart Relating
Work Packages to Organization Units.
Responsibility Matrix: Relates Organization
Structure to WBS & Ensures that each
Element of the Projects Scope is Assigned
to a Responsible Individual(s).
February 17, 2004 Pat A. Eigbe, PMP 9
 Project Management:
Relationship to Others Disciplines
The PMBOK
Project Management
Knowledge and
Practice

General Management Application Area

Knowledge and Knowledge and
Practice Practice

Figure is conceptual and overlaps are NOT proportional

February 17, 2004 Pat A. Eigbe, PMP 10

 Systems Engineering/PM
Relationship I
PM Needs SE for
Integrated PM System Design
Requirements for HW and SW Tools

SE Needs PM for
Planning and tracking
Managing Resources

PM System Designer Must Understand both

SE Not Necessary for PM Practitioners

February 17, 2004 Pat A. Eigbe, PMP 11

 Systems Engineering/PM
Relationship - II
Risk Management
PM - Schedule, Cost & Technical/Quality
SE Compatibility of Components of a System

or Sub-System
Quality Management
PM - Process for Producing the Product
SE - Ensure Product Meets the Quality
Specifications
February 17, 2004 Pat A. Eigbe, PMP 12
 Systems Engineering/PM
Relationship - III
Configuration Management
PM - Ensure Integrity of Schedule and System for
Schedule Management
SE - Ensure Integrity of the System as Designed

Change Management
PM - Changes to Project Scope
SE - Changes to System Requirement

Measurement
PM Program cost & schedule performance
SE Technical Performance

February 17, 2004 Pat A. Eigbe, PMP 13

 PMI Certification

What is PMP
What PMP is not

PMP Value to Holder & Employer

PMP Certification Process link visit

http://pm.act.faa.gov

February 17, 2004 Pat A. Eigbe, PMP 14

 PM Process Groups
Project Information Flow

Initiating
Processes Planning
Processes

Control Executing
Processes Processes

Closing
Processes

February 17, 2004 Pat A. Eigbe, PMP 15

 PM Process Flow

Initiation
Start

Create Project Agreement/PD/SLA No

Identify Project & Sponsor
1.5.1.5
1.5.1.1

PD/SLA OK?

Yes
Create Project Team & Team Contract Create the Project Plan (PMIP)

1.5.1.6 1.5.2

Planning
Review/ Revise Plan (PMIP) No

1.5.2

Yes Plan OK?

Yes
Execute Plan & Create Deliverables
Need Changes/

Execution
Corrective Action?
1.5.3

Monitor/Review Progress & Deliver Products

Control
1.5.4

No
No

Deliver Final Deliverables/

Deliverables
1.5.4.5 Accepted?

Yes

Perform Post Project Evaluation & Prepare Close-Out report

Closing
1.5.5

No Yes
Report Project
OK? Completed!!!

February 17, 2004 Pat A. Eigbe, PMP 16

 Initiation Processes
Identify project and sponsor
Appoint Project Manager
Train team on
Project Management Process
Project Plan (PMIP)

Develop Program Directive to Include

WBS that Covers the Scope
High-level Milestones

Budget resources

February 17, 2004 Pat A. Eigbe, PMP 17

 Planning Processes I

Identify Life Cycle approach

Evolutionary (AMS 6101, Section 2.2)
Incremental

Waterfall

Risk Management plan

February 17, 2004 Pat A. Eigbe, PMP 18

 Planning Processes II

Get approval for Program Directive

Identify quality standards - use specs,
IEEE, ISO, PMBOK
Organizational structure

Communications - who needs, what

Acquire human resources for projects

February 17, 2004 Pat A. Eigbe, PMP 19

 Planning Processes III (Schedule
Development)
Update & Decompose WBS
Identify activities

Sequence

Estimate duration

Estimate cost

Allocate resources to work packages

Baseline schedule
February 17, 2004 Pat A. Eigbe, PMP 20
 Planning Processes IV

Risk management detail:

Identification
Analysis

Response

Procurement

February 17, 2004 Pat A. Eigbe, PMP 21

 Implementation/Execution
Processes
Use the PMIP to execute project activities
Assess Technical Performance to assure
product acceptance
Distribute project information

Make purchases

Develop team skills/competencies

Develop a Change Management plan

February 17, 2004 Pat A. Eigbe, PMP 22

 Performance Measurement Tools

Variances
Performance Indices
Schedule performance Index (SPI)
Cost performance Index (CPI)

Earned Value Management System (EVMS)

February 17, 2004 Pat A. Eigbe, PMP 23

 Earned Value Management System
Highlights
What is EVMS
Planning for EVMS

Tracking & Analysis

Elements of EV Analysis

Project Cost & Schedule Forecasting

EV Reporting

February 17, 2004 Pat A. Eigbe, PMP 24

 Earned Value Management
System (EVMS) - I
EV - Tool for Measuring Project
Performance
Integrates Cost, Scope & Schedule
measurements
Compares work actually accomplished to
work planned
EV is an Early Warning System

Helps management make proactive

decisions to keep projects on course
February 17, 2004 Pat A. Eigbe, PMP 25
 Earned Value Management
System (EVMS) - II
Involves Calculating 3 key Elements
Budget - BCWS
Actual Cost - ACWP

Earned Value/Physical Progress - BCWP

Basis for variance analysis

February 17, 2004 Pat A. Eigbe, PMP 26

 Planning for EVMS - I
Create a work breakdown structure
Organize work into discrete work packages
and activities
Allocate a budget to each of the activities
Develop a schedule and Assign resources
Must include all project work in the
schedule
Establish the Project Baseline

February 17, 2004 Pat A. Eigbe, PMP 27

 Planning for EVMS - II

Award performance credit for physical %

complete:
0-100
Short duration tasks < 160 hours
EV is Zero until activity is complete

50-100
Duration less than 600 hours
50% at start of activity & 50% at completion
February 17, 2004 Pat A. Eigbe, PMP 28
 Planning for EVMS - III

Interim milestone;
Duration less than 600 hours
Based on completed milestone for task

Level of Effort (LOE)

Long duration & consistent tasks
Difficult to measure - no tangible deliverables

Measured by duration of time used e.g. 10

weeks support is 50% complete at 5 weeks
February 17, 2004 Pat A. Eigbe, PMP 29
 Tracking & Analysis
Each update cycle/Reporting Period:
Obtain physical % complete for each task
Calculate EV for each task

Sum up EV for all tasks as project EV

Calculate actual expenditure for actual work

completed during the period

Compare the Cumulative EV to Actual

expenditure

February 17, 2004 Pat A. Eigbe, PMP 30

 Elements of EV Analysis - I
Performance indices relate value of work
performed to dollar spent. e.g. CPI = 0.65
means that for every dollar spent, actual
value of the work performed is $0.65.
Cumulative CPI used to forecast project
cost at completion
Cumulative SPI used to forecast project
completion date

February 17, 2004 Pat A. Eigbe, PMP 31

 Elements of EV Analysis - II
Cost Variance - Difference between
budgeted cost of an activity & actual cost of
that activity
CV = EV - ACWP
Schedule Variance - Difference between
scheduled completion & actual completion
of an activity
SV = EV - BCWS

February 17, 2004 Pat A. Eigbe, PMP 32

 Elements of EV Analysis - III

SPI EV/Planned Value

SPI => 1.0, Project Schedule performing as
planned or better
SPI < 1.0, Project not performing as
planned - needs help

February 17, 2004 Pat A. Eigbe, PMP 33

 Elements of EV Analysis - IV

CPI EV/Actual Cost

CPI => 1.0, Project Cost performing as
planned or better
CPI < 1.0, Project Cost not performing as
planned - needs help
% Over/Under Budget = CAC - BCWS

February 17, 2004 Pat A. Eigbe, PMP 34

Project Cost & Schedule Forecast
Methods
Estimate at Completion (EAC) is total cost
to complete an activity, work package, or a
project expressed as:
EAC = Actuals-to-date + Estimate to complete
(ETC)
Cost EAC = BAC/CPI

February 17, 2004 Pat A. Eigbe, PMP 35

 EV Reporting

Interpret the output of EV calculations

Take corrective action as necessary

Recommend or take corrective action as

necessary

February 17, 2004 Pat A. Eigbe, PMP 36

 Control Processes I

Coordinate and control changes to project

scope/requirements
schedule

budget

Monitor and manage product quality

Measure progress and report performance

February 17, 2004 Pat A. Eigbe, PMP 37

 Control Processes II

Monitor and control risks

keep track of identified risks
monitor residual risks

identify new risks

ensure execution of risk plans

assess effectiveness in reducing risk

February 17, 2004 Pat A. Eigbe, PMP 38

 Closing Processes
Close out contracts
Resolve any outstanding issues

Document lessons learned

Evaluate project

Archive all project documents

February 17, 2004 Pat A. Eigbe, PMP 39

 Conclusion
Defined Frequently used PM Terminologies
Discussed Objectives of Adopting Project
Management Principles.
Discussed PM Processes, Tools &
Techniques
Discussed EVMS Overview

Questions

February 17, 2004 Pat A. Eigbe, PMP 40

 References
Project Management Institute (PMI), 2000. A Guide to the
Project Management Body of Knowledge (the PMBOK
Guide)
Stratton R. W., 1999. Improving SPI and CPI Calculations
on LOE Heavy Programs, Proceedings of the 30th Annual
PMI Seminars & Symposium
Fleming and Koppeman, 1996. Earned Value Project
Management.
Ibbs W & Reginato J., 2002. Quantifying the Value of
Project Management
Kerzner H, 2003. Project Management: A Systems
Approach to Planning, Scheduling, and Controlling.
FAST @ http://fast.faa.gov/wbs/wbssec.htm

February 17, 2004 Pat A. Eigbe, PMP 41

 Questions/Need Help?
http://pm.act.faa.gov
Pat A. Eigbe, PMP
Ext. 5-7857
patrick.eigbe@faa.gov

February 17, 2004 Pat A. Eigbe, PMP 42