Project Management 101

Your Cookbook for Victory

What we will cover:

Definition of a Project Why have project controls PM as a profession Project reporting Milestone management Crystal ball - the foreseeable future The Ultimate CYA Damage control.

What we will cover in Project Management 102:

Cookbook approach to a project Resources identification Timeline constraints Risk management Management of managers and vendors MS Project vs. paper tracking Contract negotiations

What is a project?
A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite ending. Unique means that the product or service is different in some distinguishing way from all other products or services.
PMBOK 2000 edition

Why Have Project Controls?

92% of all projects fail (Standish Research Group)

What Professional Project Managers do and why

Project Management Institute was established to promote the professional management of projects using proven methods and procedures. PMI maintains a library of information and publishes the Guide to the Project Management Body of Knowledge (PMBOK), the standard text on project management.

Great Britain PM Standard

Prince 2. Government required standard http://www.ogc.gov.uk/prince2/index.html

What is involved in managing a successful project?

Project Triple Constraints

Project Triple Constraints

Costs

Project Triple Constraints

Costs Time

Project Triple Constraints

Costs Time

Statement of Work (SCOPE)

Project Triple Constraints

Costs Quality Statement of Work (SCOPE) Time

Project Triple Constraints

Costs Quality Statement of Work (SCOPE) Customer Satisfaction Time

How to practically approach a project

Projects can be approached like baking a cake.

Chocolate CakeWhat it takes:

Clear objectives Ingredients Equipment Manpower A Plan A manager of managers (PM)

Chocolate Cake
Making a chocolate cake requires all the elements of a project: Processes (What to do) Knowledge (How to do)

Process groups of a project:

(The What to do of a project)
Initiation Planning Execution Controlling Closing Called the Life Cycle of a project

Knowledge areas:
(The How to do of a project)
Project Scope Management Project Time Management Project Cost Management Project Quality Management Project HR Management Project Communications Management Project Risk Management Project Procurement Management Project Integration Management

Work Breakdown Structure (Planning phase)

Def. A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives. It organizes and defines the total scope of the project. Each descending level represents an increasingly detached definition of the project work. The decomposition consists of work packages.
(PMBOK 2000)

Chocolate Cake Project

Chocolate Cake Project

Establish requirements Scope definition

How many to serve?

Date and time?

Place to be served?

Who will pay for it? Who has authority? Project Sponsor

Chocolate Cake Project

Establish requirements Scope definition Available labor pool

How many to serve?

Who will buy materials

Date and time?

Who will cook?

Place to be served?

Who will serve?

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Arrange for all mixing bowls, spoons, pans, measuring devices, decorating, etc Schedule oven(s) Place to be served? Who will serve?

How many to serve?

Who will buy materials

Date and time?

Who will cook?

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Arrange for all mixing bowls, spoons, pans, measuring devices, decorating, etc Schedule oven(s) Place to be served? Who will serve? Cleanup team Serve and clean up

How many to serve?

Who will buy materials

Staff to serve

Date and time?

Who will cook?

Assign serving plates

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Arrange for all mixing bowls, spoons, pans, measuring devices, decorating, etc Schedule oven(s) Place to be served? Who will serve? Cleanup team Serve and clean up

How many to serve?

Who will buy materials

Staff to serve

Date and time?

Who will cook?

Assign serving plates

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Purchase ingredients

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Arrange for all mixing bowls, spoons, pans, measuring devices, decorating, etc Schedule oven(s) Place to be served? Who will serve? Cleanup team Serve and clean up

How many to serve?

Who will buy materials

Staff to serve

Date and time?

Who will cook?

Assign serving plates

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Purchase ingredients

Risk analysis

Plan B?

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Arrange for all mixing bowls, spoons, pans, measuring devices, decorating, etc Schedule oven(s) Place to be served? Who will serve? Cleanup team Serve and clean up

How many to serve?

Who will buy materials

Staff to serve

Date and time?

Who will cook?

Assign serving plates

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Purchase ingredients

Risk analysis

Work Breakdown Structure

Plan B?

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Arrange for all mixing bowls, spoons, pans, measuring devices, decorating, etc Schedule oven(s) Place to be served? Who will serve? Cleanup team Serve and clean up

How many to serve?

Who will buy materials

Staff to serve

Date and time?

Who will cook?

Assign serving plates

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Purchase ingredients

Risk analysis

Plan B?

Work Breakdown Structure Work Packages

Work breakdown structure.

Def:Deliverable oriented grouping of project components that organizes and defines the total scope of the project. Locate managers and ask them to estimate their labor requirements, constraints and risks. Give them the project scope with budget, schedule and milestone requirements. Dont you make these decisions; let them.

Chocolate Cake Project

Establish requirements Scope definition Available labor pool Procure equipment Serve and clean up

How many to serve?

Who will buy materials

Arrange for all mixing bowls

Staff to serve

Date and time?

Who will cook?

Schedule oven(s)

Assign serving plates

Place to be served?

Who will serve?

Purchase ingredents

Cleanup team

Who will pay for it? Who has authority? Project Sponsor

Who will clean up?

Risk analysis

Work Breakdown Structure

Work Packages

Plan B?

Event sequencing

Placing work packages in logical sequential order. Create a critical path

Project Tracking Software

Microsoft Project Uses Project Management Institutes PMBOK as its standard Excellent tool IF used properly

Gantt Chart with resources

ID 1 ID 1 2
2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12

Task Name

5, '06 M T W T

Task Name Chocolate Cake Project Establish scope of work and attain funding Chocolate Cake Project Establish scope of work and attain funding Milestone arious managers Locate Locate v ariousvmanagers Establish requirements Establish requirements Order ingredients Order ingredients Receiv e andmaterials store materials Receiv e and store Mix, bake and decorate cake milestone Serv e and cleanup Mix, bake and decorate cake Project closeout Serv e and cleanup analy sis Project Risk closeout Train staff Risk analy sis

Mar 12, '06 Mar 19, '06 Mar 26, '06 Apr 2, '06 Apr 9, '0 F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M Mar 5, '06 Mar 12, '06 Mar 19, '06 Mar 26, '06 Apr 2, '06 T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F custo mer,Management,project man ag er 3/8
custo mer,Management,project man ag er

project manager

project manager manager,chief

manager,ch ief

Purchasing Mgr Purchasing Mgr Warehousing 3/22

Wearhousing chief,co ok 1,coo k 2,coo k 3,coo k 4,cook

200 coordinatiors,matre d chief,co ok 1,coo k servers,20 2,coo k 3,cook 4,cook 5,cook 7,co project manager 200 servers,20 coordinatiors,matre d' Purchasing Mgr

project manager
20 coordinatiors

Purchasing Mgr

13

Train staff

20 coordinatiors

Pert Chart
ChocolateCakeProject 1 0 days Thu 2/9/06 Thu 2/9/06

Establishscope of work and attain f unding 2 Fri 3/3/06 5 days Thu 3/9/06

Locate various managers 3 5 days

Establishrequirements 4 3 days

Order ingredients 5 1 day

Receiveand store materials 6 2 days Wed 3/22/06 Thu 3/23/06

Mix, bake and decorate cake 7 2 days Fri 3/24/06 Sun 3/26/06

Serve and cleanup 8 0.33 days

Fri 3/10/06 Wed 3/15/06

Thu 3/16/06 Mon 3/20/06

Tue 3/21/06 Tue 3/21/06

Mon 3/27/06 Mon 3/27/06

Project closeout 9 1 day

Riskanalysis 10 2 days

Train staf f 11 1 day

Mon 3/27/06 Tue 3/28/06

Thu 3/16/06 Fri 3/17/06

Sun 3/26/06 Sun 3/26/06

Resources
ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Resource Name Management customer project manager Kitchen staff manager chief cook 1 cook 2 cook 3 cook 4 cook 5 cook 6 cook 7 cook 8 Serv ers matre d' 20 coordinatiors 200 serv ers Cleanup Purchasing Mgr Wearhousing Initials M JM JBV K m CF c1 c2 c3 c4 c5 c6 c7 c8 S Matradee coordinators Serv ers Cleanup P W Group MGT MGT MGT Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen Kitchen serv ers serv ers serv ers serv ers serv ers Purchasing Purchasing Max. Units 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Std. Rate $0.00/hr $0.00/hr $300.00/hr $0.00/hr $50.00/hr $40.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $20.00/hr $0.00/hr $40.00/hr $300.00/hr $2,000.00/hr $300.00/hr $40.00/hr $200.00/hr Ov t. Rate $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr Cost/Use $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Accrue At Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Prorated Base Calendar Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Code

Crystal Ball - Looking into the foreseeable future

Earned Value is a method of forecasting the projects cost and scheduling outcomes early in the project It uses various budgeted amounts (time and costs) currently spent early in the project and weighs them against planned amounts for the same period. Outcomes project budget or schedule variances at projects end.

http://www.goldpractices.com/practices/tev/index.php

Project stakeholders
Definition: Anyone who is positively or negatively affected by the project. Could be:
A person(s) A company (vendors) A department A social order A government

Communications Planning - Your Ultimate CYA

People operate with the information they are given. Clear directives produce clear results. Clear objectives produce desired results. Every stakeholder needs to know the status of the project. PM is the single person who sees it all.

Communications Plan
Preferred learning styles:
Visual (65%) Auditory (33%) Kinesthetic feelings: (tactile and emotional) ( <3%)

PMs should address all three to be effective. Tools of the trade:

Voice mail Emails Audio recordings Website Conference calls Group meetings (last resort)

Techniques on how to communicate.

Always start with the bottom line. Color code each milestone or work Category. Green=On time/on budget.

Yellow=Potential problems if not addressed

immediately. Red=Immediate attention required. Milestone and/or project in jeopardy.

Email
Subject line: Cake project status: All critical paths are Green Text: All critical paths are reporting green. For details: www.vanek.ws/project/cake For audio: www.vanek.ws/project/cake/audio Or dial (713)555-1234 For MS Project plan: www.vanek.ws/project/cake/msproject

Subject line: Cake project status: Yellow due to critical path procurement issues Text: Procurement warns of shortage of special order cake pans. Vendor working problem. Update by tomorrow . For details: www.vanek.ws/project/cake For audio: www.vanek.ws/project/cake/audio Or dial (713)555-1234 For MS Project plan: www.vanek.ws/project/cake/msproject

Email

Email
Subject line: Cake project status: Red. All stakeholders /conference call 3:00PM Today Text: Major issue with procurement. Conference call today at 3:30PM (800) 555 1234 password 2323. Roll call will be taken. Attendance required. Prepare by having risk response for your area. For details: www.vanek.ws/project/cake

Damage control
People cause problems, people fix problems. Effective communications is the key. POP management (point of the problem)

Summary
Projects are managed Pro-actively Project Managers have a cookbook which is the recipe for a successful project. Planning and Communicating are the most critical elements. Questions?

FAILURE RECORD In the United States, we spend more than $250 billion each year on IT application development of approximately 175,000 projects. The average cost of a development project for a large company is $2,322,000; for a medium company, $1,331,000; and for a small company, $434,000. A great many of these projects will fail. Software development projects are in chaos, and we can no longer imitate the three monkeys -- hear no failures, see no failures, speak no failures. The Standish Group research shows a staggering 31.1% of projects will be canceled before they ever get completed. Further results indicate 52.7% of projects will cost 189% of their original estimates. The cost of these failures and overruns are just the tip of the proverbial iceberg. The lost opportunity costs are not measurable, but could easily be in the trillions of dollars. One just has to look to the City of Denver to realize the extent of this problem. The failure to produce reliable software to handle baggage at the new Denver airport is costing the city $1.1 million per day. Based on this research, The Standish Group estimates that in 1995 American companies and government agencies will spend $81 billion for canceled software projects. These same organizations will pay an additional $59 billion for software projects that will be completed, but will exceed their original time estimates. Risk is always a factor when pushing the technology envelope, but many of these projects were as mundane as a drivers license database, a new accounting package, or an order entry system. On the success side, the average is only 16.2% for software projects that are completed ontime and on-budget. In the larger companies, the news is even worse: only 9% of their projects come in on-time and on-budget. And, even when these projects are completed, many are no more than a mere shadow of their original specification requirements. Projects completed by the largest American companies have only approximately 42% of the originally-proposed features and functions. Smaller companies do much better. A total of 78.4% of their software projects will get deployed with at least 74.2% of their original features and functions. This data may seem disheartening, and in fact, 48% of the IT executives in our research sample feel that there are more failures currently than just five years ago. The good news is that over 50% feel there are fewer or the same number of failures today than there were five and ten years ago.