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 Project’s 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