technical presentation-critical path method & earned value in your project plan &...

8/6/2019 Technical Presentation-Critical Path Method & Earned Value in Your Project Plan & Control-July-2-2009

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Managing Project

PMI-AGC

Eng. Akram Alnajjar , PgMP , PMP , PSP


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My name is Akram Alnajjar

Certified PgMP Program management professional

Certified Project Management Professional PMP by PMI / USA Planning and Schedule Professional PSP by AACE (The Association for the Advance

Cost Engineer international) /USA

Postgraduate Diploma for Construction Management by Ain Shams

BSC , Civil Engineering 1984

PM consultant and Shareholder for ITI and owner of PM-Information House

Currently working as lecturer for Arab Academy , ITI, PMI Gulf Chapters andESI international

Previously worked as :

Project Control Manager for Eni Group /AGIP (Italian Oil and Gas company) Port-Harcourt / Nigeria to July 2005

Senior Project Control Planner for Eni Group/AGIP Assaluyeh / Iran Planning and Training Manager for Promastar Co. (Primavera Authorized

representative / Egypt and Saudi Arabia ) Responsible for Primavera professionaltraining courses and Primavera consultation services.

Planning and Cost Control Manager for Bin-Jarallah Group / Riyadh

Planning and Cost Control Manager for Saudi Lada Group Riyadh

Who am I?


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What is a Project

A project is a temporary endeavorundertaken to create a unique productservice, or result.

Temporary Has a definite beginning and end, not an

on-going effort.

Ceases when objectives have been attained.

Team disbanded upon completion.

Unique The product or service is different in

some way from other products or services.


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What is Project Management

The application of knowledge, skills, tools, and

techniques to project activities to meet project

requirements


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Project constraints

Balancing the competingProject constraints

Scope

Quality

Schedule

Budget

Resources , and

Risk

Managing Project Include


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Projects documented

FORMAL AUTHORIZATION

& INITIATION.

By Sponsor, PMO or

someone external who is

able to FUND.

Provides PM with the

authority to apply

organizational resources

to the project activities.

NOTE: this means that

PM is preferably assigned

now while charter is

being developed!

Project Charter


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Product Scope: the features and functions that characterize product/result

Project scope: work that needs to performed to deliver that product/result

Project Scope(Work andactivities)

ProductScope

(featuresand specs)


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WBS DefinitionDeliverable oriented grouping of projectelements that organizes and defines thetotal scope of the project

Software Data/Control Systems Hardware


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Project

Planning

1.1.1

Project

Control

1.1.2

Project

Data

1.1.3

Project

Management

1.1

Product

Design

1.2.1

Systems

Integration

1.2.2

Test &

Evaluation

1.2.3

Systems

Engineering

1.2

CPU

Acquisition

1.3.1

Auxiliary

Equipment

1.3.2

Printer

Acquisition

1.3.3

Hardware

Acquisition

1.3

Operating

System

1.4.1

Database

1.4.2

Application

Development

1.4.3

Software

Development

1.4

Facility

Plans

1.5.1

Facility

Modification

1.5.2

Facility

Installation

1.5.3

Facilities

Modifications

1.5

Training

Plans

1.6.1

Training

Courses

1.6.2

Training

Development

1.6

Information

System

1.

Typical WBS


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Project TimeManagement

Processes required

to accomplish timely

completion of the

project


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Network Diagramming

ActivitiesCode

ActivityDescription

ResourcesNeeded

OriginalDuration

PredecessorLogic

Start 0 -------------

A 2 Start

B 12 A

C 5 B & D

D 6 Start

E 7 D

F 3 E

Finish 0 C & F


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StartFinish

A B C

D E F

2 Days 12 Days 5 Days


Network Diagramming Analysis

A network diagrams is a schematic display of projects activities and

dependencies


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Start Finish

A B C

D E F



0

0

0

0 2 2 14 14 19

6 6 13 13 16

19 19

Highestof predecessorsEarly Finish Times

Early Start =

Critical Path Method (PDM), Forward Pass


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Start Finish

A B C

D E F



0

0

0

0 2 2 14 14 19

6 6 13 13 16

19 19

Lowest of successors Late Start Times

Late Finish =

2 14

19

16

14 19

19

190 0

0 2

3 9 9 16

Critical Path Method (PDM), Backward Pass


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Start Finish

A B C

D E F



Critical Path = The longest path through the network

= The path through the network with all tasks at 0 Float= Start-A-B-C-Finish

0

0

0

0 2 2 14 14 19

6 6 13 13 16

19 192 14

19

16

14 19

19

190 0

0 2

3 9 9 16Float = (0)

(0)

(0)

(0)

(3)(3)(3)

(0)

Critical Path


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Milestone


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Project CostManagement

Processes involved in

planning, estimating,

budgeting, and

controlling costs so that

the project can be

completed within the

approved budget.

Estimate Cost

Determine Budget

Control Cost


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Gant Chart


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Planned Value (PV)


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Work Plan Status


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PV, EV and AC


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Project Quality Management Processes

Quality Planning Quality Assurance Quality Control

Planning Implementation Control

Determine which qualitystandards are relevantand how to measure

them

Determine if the qualitymeasurement is relevant

Perform themeasurement and

compare to the plan


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Customer satisfaction

Understanding, managing, andinfluencing needs so that customerexpectations are met

Prevention over inspection

The cost of avoiding mistakes is much

less than the cost of correcting them

Management responsibility

Success requires participation of allmembers of the team, but it is theresponsibility of management to provide

resources needed

Continuous improvement

Plan/Do/Check/Act cycle

Modern Quality Management


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Planning Acquiring Developing Managing

Managing

Acquiring

Developing

Planning

Project H.R Management


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CRITICAL LINKS between

people, ideas and

information -> Success!

90% of PM time is spent

communicating.

TIP: Which skill is mostimportant for a PM?

Team Building

Negotiating

Communicating

Technical Expertise?

Need to be planned for.

Major project killer.

PM needs to master it!

Top

Management

Media

Gov.Sponsor

Team

PM

Project

Communications

Management

Departments


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Project Risk

Uncertain event or

condition that, if

occurs, has an

effect (impact) on

at any of the

project objectives(Time, Cost, Quality,

Scope)

Impact could be

+ve orve

Cause

Event

(Condition)

Impact

+Opportunity

-Threat


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Risk Averter

Not likely to take a

risk that is

considered a high

risk


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Risk Seeker

Prefers an uncertain

outcome and may

be willing to pay a

penalty to take a

high risk.


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Risk Neutral

Tolerance to risk is

proportional to the

amount of money at

stake

(Financial markets,

IRR, Interest, ROI)


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RMPlanMethodology

Roles &Responsibility

Budgeting

Tracking &

Auditing

Timing Probability

Impact

Matrix

ReportingFormat

Categories

StakeholdersTolerance

How risk management will be structured and performed on the project


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Probability Very Low Low Moderate High Very High

Very High R1

High R8 R2 , R4

Medium R9 R10 , R3 R6

Low R5 , R7

Very Low


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Mitigation

(Corrective action)

Avoidance

(Prevention)

Acceptance

(Accept consequences)

Transference

(Shift Responsibility)

Risk ManagementSTRATEGIES


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Fixed

For a well-defined

product or

requirements.

May include

incentives?

Reimbursement Payment of actual

COST + PROFIT

Include direct &

indirect costs

Time and Material Fixed price per unit

Variable quantity

Fixed

FFP (FirmFixed)

FPI (Fixed PlusIncentive)

FP-EPA (Fixed +Economic PriceAdjustment

Time & Material

Reimbursement

CPAF

(Cost Plus Award Fee)

CPFF

(Cost Plus Fixed Fee)

CPIF

(Cost Plus IncentiveFee)

Types of

Contracts


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Contracts & Risk Level

CPAF

(Cost Plus

Award Fee)

Sellerhas higher risk

CPFF

(Cost Plus

Fixed Fee)

CPIF

(Cost Plus

Incentive Fee)FP-EPA

(Fixed + Economic

Price Adjustment

Buyer has higher risk


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Project Integration Management

No single way of

integration; different

mixes of PM knowledge +

skills + process varying

orders & rigor.

Project PM & team should

decide on level

implementation of each

process, in each phase!

Reiteration & ProgressiveElaboration

Project managers ROLE

to look at overall picture.


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Initiation Process Group


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Planning Process Group


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Execution Process Group


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Monitor & Control Process Group


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Closing Process Group


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QUESTIONS?

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