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Project Management – An Overview

Sumantra Sarkar

MBA 8125 – Fall 201115th Nov, 2011

Tacoma Narrows BridgeGalloping Gertie – 1940Collapsed on 7th Nov ’40Reason ‐ aerodynamic phenomena in suspension bridges were notbridges were not adequately understood.

A photographer for Tacoma News Tribune, Howard Clifford was the last man off the Bridge before it collapsed.

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Now 94 (Apr ’06), Clifford recounts that fateful day

Agenda

• What is a Project• History History• Operations Vs Project• Case StudyCase Study• Project Types• Project Management & Process Groups• Project Management & Process Groups• Knowledge Areas• Skills of a Project Manager• Skills of a Project Manager

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What is a Project ?

• A temporary endeavor undertaken to create a unique product, service or result

• Definite beginning and end• End

• Project’s objectives achieved• Project terminated – objectives cannot be met or need for project no longer exists

• Temporary does not necessarily mean short in duration©2008 P j t M t I tit t A G id t th P j t M t B d f©2008 Project Management Institute. A Guide to the Project Management Body of

Knowledge (PMBOK Guide® – 4th Edition)

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History

• Project Management Institute® ‐ founded in ’69• Premise – many management practices were common Premise many management practices were commonto projects in application areas as diverse as construction to pharmaceuticals

• ’81 – PMI Board of Directors approved a project to develop the procedures and concepts to support the profession of Project Management

• ’84 – First PMP certification awarded• ’87 – PMBOK Standards ; ’96 – A Guide to PMBOK• ’00 – 2nd Edition ; ’04 – 3rd Edition ; ’08 – 4th Edition• > 500,000 members

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Operations Vs Projects

Characteristics Operations Projects

Labor skills Low HighTraining timeWorker autonomyCompensation system

LowLowHourly or weekly wage

HighHighLump sum for project

Material input requirementsSuppler ties

High certaintyLonger durationMore formal

UncertainShorter durationLess formal

Raw Materials inventoryScheduling complexityQuality control

LargeLowerFormal

SmallHigherInformal

Information flowsWorker‐mgmt communicationDuration

Less importantLess importantOn‐going

Very importantVery importantTemporary

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Product or service Repetitive Unique

Hubble Telescope Failure

• Hubble Space Telescope launched aboard Space Shuttle Discovery on 24th April ’90

• NASA called it a “New window on the Universe”

• announced failure on 21st June ’90• Both high resolution imaging camerasBoth high resolution imaging cameras showed distortion

• Planning started in ’70 CongressPlanning started in 70 Congress approved (’78) at a cost of $ 400 M

• Total cost when launched ‐ $ 2 5 B• Total cost when launched ‐ $ 2.5 B• Lessons Learnt (pg 58)

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DIA Baggage Handling System

• Denver International Airport (DIA)• 53 sq. miles – designed to be the largest airport in US53 sq. miles designed to be the largest airport in US• Initial ground‐breaking in ’89 – completion Fall ’93• Original plan – individual airlines to build their ownOriginal plan individual airlines to build their own baggage handling system

• ’91 ‐ United Airlines started their own with BAE91 United Airlines started their own with BAE• ’92 – DIA approached BAE to build an airport‐wide system ‐ $ 175.6 Milliony $

• “most complex baggage handling system ever built” • 3100 telecars, 20 airlines, 5,000 optical detectors, 4003100 telecars, 20 airlines, 5,000 optical detectors, 400 radio receiver, 56 bar code scanners……

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DIA Baggage Handling System

• Aug 4 ’94, Mayor Webb announced a plan to develop “a temporary, low‐tech alternative system for the DIA’s high‐tech baggage system.

• Feb ’95 – 16 months behind schedule ‐ $ 5.2 billion (2 billion over budget) • 2 concourses served by manual baggage system• 1 concourse served by scaled down semi‐automated system

• Lessons Learnt$• ’05 – Fully manual system – Running cost $ 1 M per

monthA d t• An update ‐http://www.youtube.com/watch?v=xx8f4x6C_KY 9

Top 10 Corporate IT failures

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11


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IT Project types

• ERP Implementation• Software DevelopmentSoftware evelopment

• Traditional – SDLC• Newer Methods ‐ Agile

• Infrastructure – Mailing System migration, Setting up data center

• IT Infrastructure Management – Optimizing IT Operations

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Discussion questions for the class

• How many of you all have been not exposed to projects?

• How many of you have managed projects ?• What are the biggest challenges ?gg g• How do you measure whether you are on track?• How do you mitigate risk?How do you mitigate risk?• How many of you all have a “lessons learnt” session?• How many know about PMP ?How many know about PMP ?

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Project Management

• Application of knowledge, skills, tools and techniques to project activities to meet project requirements

• How ? • Appropriate application and integration of 42 logically pp p pp g g ygrouped project management processes comprising of 5 process groups• Initiating• PlanningE i• Executing

• Monitoring and Controlling• Closing• Closing

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Process Groups

• Initiating – processes performed to define a new project or a new phasep

• Planning – processes required to establish the scope of the project, refine the objectives, and define the course of action

• Executing – processes performed to complete the work• Monitoring & Controlling ‐ processes required to track, review and regulate the progress

• Closing – processes performed to finalize all activities 16

Project Management Plan

• Project Management plan is iterative and goes through progressive elaboration throughout the project’s life cycle

• Progressive elaboration involves continuously improving and detailing a plan as more‐detailed and specific information and more accurate estimates become

il blavailable

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Project Management Office

• An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under it’s domain

• Responsibility – range ‐ providing project management support to being responsible for direct management

• Functions• Managing shared resources across projectsId tif i d d l i PM th d l• Identifying and developing PM methodology

• Coaching, mentoring, training and ovesight• Monitoring compliance with PM Standards templates• Monitoring compliance with PM Standards, templates• Coordination communication across projects

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Project Life Cycle

A Guide to the Project Management Body of Knowledge ‐ PMBOK version 4

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Organizational Influences

• Organization Cultures and Styles • Cultural norms include common knowledge regarding Cultural norms include common knowledge regardinghow to approach getting the work done

• Share vision, values, norms, beliefs and expectations, , , p• Policies, methods and procedures• View of authority relationshipsView of authority relationships• Work ethic and work hours

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Organizational Process Assets

• Processes and Procedures• Standards, policies, process audits, improvement targets• Change control procedure, Proposal evaluation criteria• Templates, Issue and defect management procedure• Organization communication requirements• Project closure guidelines

l d• Corporate Knowledge Base• Project filesC fi ti t k l d b• Configuration management knowledgebase

• Financial databases containing information on labor hours• Process measurement databasesProcess measurement databases• Lessons learnt knowledge base

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Organization Structure

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Knowledge Areas ‐ 9

Integration Management

Scope Management

Human Resource Managementg

Time Management

g

Communications ManagementManagement

Cost

Management

RiskManagement

Quality

Management

Procurement

23

Quality Management

Procurement Management

Process Groups & Knowledge Areas

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Break

25



Scope Management


Time Management

g


Cost

Management

RiskManagement

Quality

Management

Procurement

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Quality Management



• Develop Project Charter • Example of Project Charter

• Develop Project Management Plan• Direct and Manage Project Executiong j• Monitor and Control Project Work• Perform Integrated Change ControlPerform Integrated Change Control• Close Project or Phase

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Scope Management

• Collect Requirements• Define Scopeefine Scope• Create Work Breakdown Structure (WBS)

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WBS

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Scope Management

• Collect Requirements• Define Scopeefine Scope• Create Work Breakdown Structure (WBS)

• Verify Scope• Control Scope• Control Scope

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Time Management

• Define Activities• Sequence

Schedule Management Reference Card

Network Logic – links all

Schedule Management Reference Card

Network Logic – links all SequenceActivities

• Estimate Activity

WBS – product oriented, include all work, provides framework for planning

Establish baseline

logically related tasks & milestones, minimal use of constraints

Durations – realistic,

WBS – product oriented, include all work, provides framework for planning

Establish baseline

logically related tasks & milestones, minimal use of constraints

Durations – realistic, Estimate Activity Resources

• Estimate ActivityTask Descriptions – clear, complete, concise Slack (float) – amount of time a task can

slip before impacting project completion

discrete and measurable, use consistent time units

Task Descriptions – clear, complete, concise Slack (float) – amount of time a task can

slip before impacting project completion

discrete and measurable, use consistent time units

• Estimate Activity Durations

• Develop

Critical path typically starts at beginning (or time now) & flows thru logic sequence to project end, lowest slack path

Resource Overallocated

Critical path typically starts at beginning (or time now) & flows thru logic sequence to project end, lowest slack path

Resource Overallocated

• Develop ScheduleC t l S h d l

Note: Resource loading ensures cost/schedule integration and consistency between budget plan & schedule plan Note: Resource loading ensures cost/schedule integration and consistency between budget plan & schedule plan

• Control Schedule31

Time Management (Gantt Chart)

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Time Management (PERT)

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Cost Management

• Estimate costs• Determine Estimate At

Completing the Picture

etermineBudget

• Control Costs

NCC=CBB=TAB

Actual costs

}

16182022

Complete (EAC) or Latest RevisedEstimate (LRE)

MRControl Costs

• How?

(ACWP)

ManagementReserve

$

810121416

Budgeted costs

(BCWS)

• How?• EVM – Earned Value Management

Budget atComplete

02468

Earned Value

(BCWP)

BAC

Value Management•Cost Variance•Schedule Variance

31Days Report Date Completion date

02 4 6 8 10 12 14 16 18 20

Schedule Variance

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NASA IBR Toolkit ‐ 24 Dec 2009

Cost Management

• Estimate costs• Determine etermineBudget

• Control CostsControl Costs

• How?• How?• EVM – Earned Value ManagementValue Management

•Cost Variance•Schedule VarianceSchedule Variance

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NASA IBR Toolkit ‐ 24 Dec 2009

Quality Management

• Plan Quality• Perform Quality AssurancePerform Quality Assurance• Perform Quality Control

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Human Resources Management

• Develop Human Resource Plan • Acquire Project TeamAcquire Project Team• Develop Project Team• Manage Project TeamManage Project Team

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Scope Management


Time Management

g


Cost

Management

RiskManagement

Quality

Management

Procurement

38

Quality Management


Break

39



Scope Management


Time Management

g


Cost

Management

RiskManagement

Quality

Management

Procurement

40

Quality Management


Project Communications Management

• Identify Stakeholders• Plan communicationsPlan communications• Distribute Information• Manage Stakeholders expectationsManage Stakeholders expectations• Report performance

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Framework for Identifying Risks

• Background • $ 250 billion across 175,000 projects• Cost overrun ‐ $ 59 billion • Cancelled projects ‐ $ 81 billion

• One explanation – Managers are not taking prudent measures to assess and manage risk

• Suggested Steps• Identify risks

f• Relative importance of the risks• Identified risks to be classified to suggest meaningful mitigation strategiesmitigation strategies

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• Delphi Study – 40 software PM ‐ Finland, HK, US –selected common 11 factors ‐ universal

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• Q 1• Q 1 • specific risk factors ‐ lack of top management commitment, failure to gain user commitment, and inadequate user involvement.

• risk mitigation strategies ‐ create and maintain good relationships with customers and promote customerrelationships with customers and promote customer commitment to the project

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• Q 2• Q 2 • specific risk factors – ambiguities, uncertainties, misunderstandings in establishing the project’s scope and requirements.

• risk mitigation strategies ‐ emphasize the management of ambiguity and change avoid “scope creep” project drivenambiguity and change – avoid scope creep – project driven by user community

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• Q 3• Q 3 • specific risk factors – inappropriate / insufficient staffing, poor estimation, and improper definition of roles and responsibilities

• risk mitigation strategies ‐ internal evaluations coupled with external reviews to keep project on trackexternal reviews to keep project on track

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• Q 4• Q 4 • specific risk factors – changing scope/objectives (due to changes in senior management or the business itself), and conflicts that may arise between user departments.

• risk mitigation strategies ‐ concepts and tactics associated with disaster planningdisaster planning

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• Q1 ‐ determine if they have the support & commitment • Q2 ‐manage the ambiguity and change associated with establishing system scope and requirements

• Q3 ‐ select a risk‐driven execution strategy Q4 b bl i i d d d h• Q4 ‐ be able to anticipate and respond to unexpected changes in the environment

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One Minute Risk Assessment Tool

• Background • $ 2.5 trillion spent ‐ $ 1 trillion on underperforming projects• $ 75 billion each year

• Examined 720 software project assessments by senior IT managers in 60 large companies

• The relative weightsassociated with 6 keys/w project risk drivers

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One Minute Risk Assessment Tool

• Quick‐and‐dirty assessment of overall project risk• “what if” analysis• what‐if analysis

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Project Risk Management

• Plan Risk Management• Identify RisksIdentify Risks• Perform Qualitative Analysis• Perform Quantitative AnalysisPerform Quantitative Analysis• Plan Risk responses• Monitor and Control Risks• Monitor and Control Risks

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Project Procurement Management

• Plan Procurement• Conduct ProcurementConduct Procurement• Administer Procurement• Close ProcurementClose Procurement

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Skills in demand over next decade

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Effective Skills

• Leadership• Team BuildingTeam uilding• Motivation• CommunicationCommunication• Influencing• Decision Making• Decision Making• Political & Cultural awareness• Negotiation• Negotiation

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Thank youQuestions?Q

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Knowledge Areas

• Integration Management• Scope ManagementScope Management• Time Management• Cost ManagementCost Management• Quality Management• Human Resource Management• Human Resource Management• Communications Management• Risk Management• Risk Management• Procurement Management

56Cloud SOA SOA SOA SOA

References

• Cloud Computing Explained ‐ By Rosalyn Metz ‐http://www.educause.edu/EDUCAUSE+Quarterly/EDUCAUSEQuarterlyMagazineVolum/CloudComputingExplained/206526putingExplained/206526

• http://cloudenterprise.info/2009/08/04/cloud‐definitions‐nist‐gartner‐forrester/• http://www.educause.edu/EDUCAUSE+Quarterly/EDUCAUSEQuarterlyMagazineVolum/

ServiceOrientedArchitectureWha/161835• SOA ppts from

http://www.educause.edu/Resources/ServiceOrientedArchitecture/161920

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Tacoma Narrows BridgeA former photographer for the Tacoma News Tribune, Howard Clifford was the last manoff the first Narrows Bridge before it collapsed in 1940. Now 94, Clifford recounts that fateful day April 7 2006

http://www.youtube.com/watch?v=j-zczJXSxnw –Tacoma Narrows bridge

fateful day. April 7, 2006

Galloping GertieThe significance of the first Tacoma Narrows Bridge, to a large extent, is derived from its startling collapse on November 7, 1940. The collapse brought engineers world-wide to the realization that aerodynamic phenomena in suspension bridges were not adequately understood in the profession nor had they been addressed in this design. New research was necessary to understand and predict these forces. The official investigation into the collapse recommended the use of wind-tunnel tests to aid in the design of the second Tacoma Narrows Bridge and resulted in the testing of all existing and future bridges across

58Cloud SOA SOA SOA SOA

Narrows Bridge and resulted in the testing of all existing and future bridges across the country. New mathematical theories of vibration, aerodynamics, wave phenomena, and harmonics as they apply to bridge design arose from these studies.

project management overview - cis.gsu.edu · • project management plan is iterative and goes...

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