PROJECT MANAGEMENT

SPECIALIST

Presentation by

HaiderAbbas Bangash
Observer II
MSU Alpha, MPCL

1
INTRODUCTION
 Project Management
 Allows for excellent organization and tracking
 Better control and use of resources
 Reduces complexity of inter-related tasks
 Allows measurement of outcome versus plans
 Early identification of problems and quick correction

2
INTRODUCTION

What is a Project?

A project is a temporary endeavor undertaken to create a unique

product or service

3
 Unit 1
Introduction to Project Management

4
 Introduction to Project Management

 Project Failures

 Project Successes

 What is Project Management?

 Key Functional Areas of Project

Management
 Project Life Cycle

5
Reasons for Project Failure

1. Poor project and program management discipline

2. Lack of executive-level support

3. No linkage to the business strategy

4. Wrong team members

5. No measures for evaluating the success of the project

6. No risk management

7. Inability to manage change

6
Project Success Criteria

• On time

• On budget

• Meeting the goals that have been agreed upon

7
Iron Triangle

8
Pick Any Two

10
What is a
Project?
 A project is a temporary endeavor undertaken to create
a unique product or service.

11
 Who is Project Manager?

 Ultimately responsible for the Project’s Success

 Plan and Act

 Focus on the project’s end

 Be a manager & leader

12
Seven Traits of Good Project Managers

Trait 1: Enthusiasm for the project

Trait 2: Ability to manage change effectively

Trait 3: A tolerant attitude toward ambiguity

Trait 4: Team – building and negotiating skills

Trait 5: A customer-first orientation

Trait 6: Adherence to the priorities of business

Trait 7: Knowledge of the industry or technology

13
Project Success 12 Golden Rules
Rule #1 Thou shalt gain consensus on project outcome.
Rule #2 Thou shalt build the best team possible.
Rule #3 Thou shalt develop a comprehensive, viable plan and keep it up-
to- date.
Rule #4 Thou shalt determine how much stuff you really need to get
things done.
Rule #5 Thou shalt have a realistic schedule.
Rule #6 Thou won’t try to do more than can be done.
15
Project Success 12 Golden Rules
Rule #7 Thou will remember that people count.
Rule #8 Thou will gain the formal and ongoing support of
management and stakeholders.
Rule #9 Thou must be willing to change.
Rule #10 Thou must keep others informed of what you’re up to.
Rule #11 Thou must be willing to try new things.
Rule #12 Thou must become a leader.
Project Management

Project Management
The “application of knowledge, skills, tools and techniques to project activities
to meet project requirements.”

27
Project Life Cycle

28
Project Definition Phase

 Initiate the project

 Identify the Project Manager

 Develop the Project Charter

 Conduct a Feasibility Study

 Define Planning Phase

 Sign off on the Project Charter

29
Project Planning Phase

 Organize and staff the project

 Develop a Project Plan

 Sign off on the Project Plan

30
Project Execution Phase

 Execute the Project Plan

 Manage the Project Plan

 Implement the project’s results

 Sign off on project’s completion

31
Project Close-out
Phase
 Document the lessons learned during the project

 After-implementation review

 Provide performance feedback

 Close-out contracts

 Complete administrative close-out

 Deliver project completion report

32
Project Planning: Time and Cost Estimate
 Iterative

 Accuracy
 Estimates become more
Initiation Planning Execution Closing

Definition accurate Design

Analysis
+25% +15
+10
0
-50
-25
-75%
Preliminary Plan Proposal Plan Final Plan Revised Plan

21
Project Planning: set expectations of Stakeholders
Stakeholders
Contractors Project Sponsor Users

Project Leader

Project
Manager

Procure- IM/
Finance Systems Sales Maintenance
ment Support IT
Engineering

22
 Project Management

Module 2: Scope Management

Mari Seismic Unit

Mari Petroleum Company Limited
Project Scope Planning
Scope Management

 Ensuring that the project includes all the work required, only the
work required.

 Dividing the work into major pieces, then subdividing into smaller,
more manageable pieces.

24
Work Breakdown Structure - Formats
Organization Chart Method

0.
Title

1. 2. 3.
Major Phase 1 Major Phase 2 Major Phase 3

1.1 1.2 1.3

Section 1 Section 2 Section 3
of Phase 1 of Phase 1 of Phase 1
25
WBS - Typical Tasks

Detailed WBS Example for procuring an

Equipment System
26
Work Breakdown Structure
Summary (Top Level) WBS

Summary and Detail tasks, or

Parent and Child tasks (Work Package)
27
Work Breakdown Structure
Using the Work Breakdown Structure
1. Estimate and schedule the work (Durations, precedences on WBS)
2. Organize and schedule resources (resource allocated WBS)
3. Assign responsibilities – (Resource ramp-up, resource allocated WBS)
4. Estimate and allocate costs and budgets (costed WBS)
5. Add up costs to different levels
• Task
• Levels on the WBS (phase, account/contract)
• Cost account
• Total project
6. Get resource commitments
7. Schedule start <--> end dates
8. Track expenditures, schedules and performance
28
 Project Management

Module 2: Project Time Planning

Mari Seismic Unit

Mari Petroleum Company Limited
Estimating Efforts

1. Professional Judgment
 “Expert” picks a number (out of the air!)
 Requires an expert
 Requires experience
 Good memory
 May ignore people
 VERY RELIABLE FOR THEMSELVES
30
Estimating Efforts
2. History
 Look at tables of past actuals on major tasks
 Interpolate
 Requires professional judgment
 Requires good history (which changes!)

3. Formula
a) Variables
 Determine major variable factors (task, person)
 Using measurement determine formula of factors 31
 Interview and plug into formula
Estimating Efforts
b) Function Points
 Determine smallest pieces (function points) of project
 Using measurement establish time for each one.
 For new project, break into function points; add up times, then
multiply for worker productivity.
(Possibly: Junior x 2, Average x 1, Senior x 0.5)
• FORMULA IS BEST (IN THEORY).
• IN REALITY, BEST.

32
Estimating – use of History
Ratios for Systems project

SYSTEMS ACTIVITIES DUR

EFFORT
SYSTEM SPECIFICATIONS 11-15% 6-10%
SYSTEM DESIGN 8-12% 6-10%
SOFTWARE REQUREMENTS 2-4% 3-5%
SOFTWARE PRELIMINARY DESIGN 5-7% 4-6%
SOFTWARE DETAILED DESIGN 8-11% 9-12%
CODE AND UNIT TEST 20-28% 24-32%
SOFTWARE INTEGRATION & TEST 10-14% 11-15%
SOFTWARE QUALIFICATION 5-7% 2-4%
SYTEM INTEGRATION & QUAL. 8-12% 8-12%
WARRANTY AND SUPPORT N/A 7-10%
MAKE YOUR OWN BASED ON THE MAJOR PHASES/PIECES! 33
Scheduling

If Estimate was Effort, must convert it to

Duration

Duration = Effort/Resources (sometimes)

Taking into account:

Resource
availability Desire
Skill
Productivity

34
Task Designate

 Tasks are called “activities.”

 Estimated completion time (and sometimes costs) are associated with each activity.
 Activity completion time is related to the amount of committed to it.
 The degree of activity details depends on the application and the level of specificity
of data.

35
Identifying the Activities of a Project

 To determine optimal schedules we need to

 Identify all the project’s activities.
 Determine the precedence relations among activities.

 Based on this information we can develop managerial tools for

project control.

36
Identifying Activities, Example
Activity Description
A Prototype model design
Purchase of materials
Manufacturing B Manufacture of prototype model
activities Revision of design
C Initial production run
F Staff training
Training activities D Staff input on prototype models
G Sales training
E
Advertising activities I Pre-production advertising
H campaign
J Post-redesign advertising 54
KLONE COMPUTERS, INC

Precedence Relationships Chart

Immediate Estimated
Activity Predecessor Completion Time
A None 90
B A 15
B 5
C G 20
D 21
D A 25
C,F
D 14
E
A 28
F D,I 30
38
45
G
The PERT/CPM Approach for Project Scheduling

 The PERT/CPM approach to project scheduling uses network

presentation of the project to
 Reflect activity precedence relations
 Activity completion time

 PERT/CPM is used for scheduling activities such that the

project’s completion time is minimized.

39
Earliest Start Time / Earliest Finish
Time
 Make a forward pass through the network as follows:
 Evaluate all the activities which have no immediate predecessors.
 The earliest start for such an activity is zero ES = 0.
 The earliest finish is the activity duration EF = Activity duration.

 Evaluate the ES of all the nodes for which EF of all the immediate
predecessor has been determined.
 ES = Max EF of all its immediate predecessors.
 EF = ES + Activity duration.

 Repeat this process until all nodes have been evaluated 40

 EF of the finish node is the earliest finish time of the project.

Earliest Start / Earliest Finish –
Forward Pass

90,105 105,110
149,1177
B C E
B C 00 E
15 5 21

110,124
0,90 90,115 115,129 129,149 149,1177
A F G D H 194
A F G D 77 H
90 25 14 20 28
EARLIEST FINISH
120,165
90,120 149,1199
I J
I 44 J 41
30 45
Latest start time / Latest finish time
 Make a backward pass through the network as follows:

 Evaluate all the activities that immediately precede the finish node.
 The latest finish for such an activity is LF = minimal project completion time.
 The latest start for such an activity is LS = LF - activity duration.

 Evaluate the LF of all the nodes for which LS of all the immediate
successors has been determined.
 LF = Min LS of all its immediate successors.
 LS = LF - Activity duration. 42

 Repeat this process backward until all nodes have been evaluated.
Latest Start / Latest Finish –
Backward Pass
149,170
105,110 173,194
90,105
B E
95,110 B C 110,115 E
15 5 21

90,115 115,129 129,149 149,177

90, 115 115,129 129,149
153,14 166,194
5,95 0,90 129,
173
129,149
9
0,90 F G
A
A F G 129,149 D 146,166 HH
129,149 194
90 25 14 20 28
129,149
1291,12499,14
29,119
149,194
90,120 9
149,194
119,149
I 43
I J
45
30
J
Slack Times

 Activity start time and completion time may be delayed by

planned reasons as well as by unforeseen reasons.

 Some of these delays may affect the overall completion date.

 To learn about the effects of these delays, we calculate the

slack time, and form the critical path.

44
Slack Times

 Slack time is the amount of time an activity can be

delayed without delaying the project completion date,
assuming no other delays are taking place in the project.

Slack Time = LS - ES = LF - EF

45
Slack time in the Klonepalm 2000 Project
Activity LS - ES Slack
A 0 -0 0
B 95 - 90 5
C 110 - 105 5
D 119 - 119 0 Critical activities
E 173 - 149 24
must be rigidly
F 90 - 90 0
G 115 - 115 0 scheduled
H 166 - 149 17
I 119 - 90 29
J 149 - 149 0 46
The Critical Path

 The critical path is a set of activities that have no slack, connecting

the START node with the FINISH node.

 The critical activities (activities with 0 slack) form at least one

critical path in the network.
 A critical path is the longest path in the network.
 The sum of the completion times for the activities on the critical
path is the minimal completion time of the project.
47
The Critical Path

90,105 105,110 149,170

B C E
B C E
15 5 21

0,90 90,115 115,129 129,149 149,177

A F G D H
A F G D H
90 25 14 20 28

149,194
90,120

I 48
I J
45
30
J
Scheduling: Requires Duration and Precedents
Two Graphical tools for Scheduling:
1. PERT Chart

Plan (from WBS)

Task
A
Precedent - 7d
B
Duration A 3d
C - 10d
D C 5d
E - 4d
F E 6d
G F 3d
49
Scheduling
Ordering the Activities: PERT Chart
Arrow Diagramming Method (ADM)

A B
3d
7d
C D
1
10d 3 5d 6

E
G 3d
4d
F
4 5
6d

50
Scheduling - Gantt Chart
Order of building the Gantt
Chart:
• Work Breakdown
• Estimates (duration)
• Dependencies
• Resource use

Gantt shows:
• Critical Path
• Non Critical Path(s)
• Early Start/Finish
• Late Start/Finish
• Slack
51
Scheduling - Gantt Chart

52
Scheduling – Gantt Chart
1. Milestones
• Clear, concrete, binary events implying progress
• For example: Review (with approval), Sign off of a deliverable, Funds approved
• Shown as 0 length task

• Try for even frequency

• Not too close
• Not more than 2 - 3 months apart

• Major Point to communicate with

• Client
• Outside world
• Management

53
Scheduling - Gantt Chart
 Gantt (Schedule) Drives

 Training

 Meetings

 Reviews

 Reports

 Site preparation

 Delivery dates (date to order) for external

items
54
 Payment
 Project Management

Module 4:
Resource Assignment and Cost Planning

Mari Seismic Unit

Mari Petroleum Company Limited
Assigning Resources
 Availability
 Skills
 More experienced people
 Less experienced people
 Desire
 Similar tasks to one person to use learning curve
 Assign critical tasks to most reliable people
 Tasks that need interaction or are similar
 Same person
 Two who communicate
 Personality and team communication does matter
 and again, Availability
56
Resource Loading and Optimizing
Gantt with Resource Histogram

57
Resource leveling - possible rescheduling
Gantt with Resource Histogram

Manual resource leveling: fast vs good vs cheap

Automatic resource leveling: use only as ‘suggestion’

58
Cost Estimating
• Similar to Time Estimating (usually done by the same person/group that
does the Time Estimates)
Calculation of Cost for each WP: Example:
If estimate was duration 10 days
Assign human 2 people
resources
Need Effort = Duration x Resources E=2x10=20pd
e.g., Resource Cost (RC) = Effort x Rate(includes overhead)
RC=20x$1,000=$20,000
(Possible) Plus Fixed Cost (FC)
e.g., FC = $5,000

Total cost (TC) = Resource cost + Fixed Cost

TC=20,000 + 5,000 = 25,000
59
Costed WBS
ID Task Name Account Fixed Cost Total Cost
36 Final Submission $0.00 $33,000.00

37 Final Design Work C14 $5,000.00 $25,000.00

38 Final Plan C14 $0.00 $8,000.00

39 TB Submission $0.00 $0.00

40 EPA $0.00 $0.00

41 Software (Subcontract 50-B) $0.00 $133,000.00

42 SW Design $12,000.00 $62,000.00

43 Do Prelim SW design S21 $0.00 $20,000.00

44 PDR $0.00 $0.00

45 Do Final SW design S22 $0.00 $30,000.00

46 CDR $0.00 $0.00

47 SW Construction $12,000.00 $71,000.00

48 Code CSC A S31 $0.00 $6,000.00

49 Code CSC B S31 $0.00 $8,000.00

50 Integrate&Tst CSCI 1 S32 $0.00 $20,000.00

60
Cost Ramp-Up

1997 1998
Q3 Q4 Q1 Q2 Q3 Q4 Q1
$400,000.0
0

$300,000.0
0

$200,000.0
0

$100,000.0
0

Cumulative Cost: $53,920.00 $274,360.0 $331,440.0 $349,920.0 $368,400.0 $376,500.0

$127,160.00 0 0 0 0 0
Total:
Filtered resources
CPM Total:

61
Cost - Sanity checks
Cost Estimate Error Range – same as Time Estimate

+75%
25

10
0
-8
-25% -10

Indicative Budget Definitive

PPA EPA PDR
Init Plan Final Design
Plan

PPA - Preliminary Project Approval

EPA - Effective
PDR - Preliminary Design Review 62
Types of Cost Estimates
 Project Management

Module 5: Risk Management

Mari Seismic Unit

Mari Petroleum Company Limited
Risk Management

 Risk: anything not in the project plan that may occur and cause your project to
be late, cost more or compromise its quality/performance.

65
Four Steps of Risk Management
1. Identification
• Anticipate the risk
• List the risks, event triggers, symptoms

2. Analysis
• Evaluate probability, impact
• Qualitative vs Quantitative

3. Risk Response
• Strategy Development to mitigate the risk:
• Eliminate the risk or reduce impact
• Contingency planning

4. Risk Control
• Monitor
• Update lists, strategies
• Action the contingency plan
66
• Fight the fires
 Project Management

Module 6:
Scope/ Time/ Cost Control

Mari Seismic Unit

Mari Petroleum Company Limited
Project Control – Scope Control
 Scope Change Control

 Formal change control

 Evaluate cost/time impact

 Renegotiate, set expectations
 Implement or defer to next release

 Configuration Management
 Keep track of what changes were made to which modules

 Versioning

 Interoperability of modules
68
Project Control – Schedule and Cost
Step 1 - Take a baseline.
• Baseline plan: a copy of the plan (WBS with all dates, assignments, costs).

• Used to report progress against the baseline.

• Taken at a mutually agreed upon planning point:

• Proposal or Analysis completion
• +25% to -10% stage

• Baseline is (theoretically) not alterable

• Unless major scope change occurs.

69
Project Control-Reporting Schedule using a Tracking Gantt

Double Gantt: Shows Project Schedule Progress vs baseline

Project Control – Reporting Schedule using a Tracking Gantt

Double Gantt: Shows Project Schedule Progress vs baseline