the basics of project management

8/8/2019 The Basics of Project Management

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THE BASICS OF PROJECTMANAGEMENT

By Akin Olawale, B.Sc., PGD(Tech. Mgt.), MBA

+234-8033842162

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For which of you, intending to build a tower sit not

down first and count the cost, whether he has

sufficient to finish it?, otherwise, after laying the

foundation, and he is not able to complete it, all thatsee it would mock him

- Luke 14: 28 - 29


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Project Management Basics3

CONTENT

1. Project What is it?

2. Project Management Defined

3. Project Management Processes

4. Project Management Knowledge Areas

5. Success & Failure in Projects

6. Useful information on Project Management


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PART I - PROJECT4

Projects can be as simple as winking and as complexas the weather.

Project examples include:

Attending project management course

Attending World Cup Soccer Competition in SouthAfrica

Building a house, road, port, bridge, etc.

Starting a technology-driven business

A nation waging war against another -----------(imagine many more)


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PART I contd: Definition of Project

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A process of bringing about a new product or

service.

A group of activities to bring about change orcreate a new product or service.

A temporary endeavour undertaken toaccomplish a unique product or service.


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PART I contd: Basic Building Blocks of Any

Project6

Quality

CostTime

1. Quality

2. Time

3. Cost (Budget)

How can you measure a successful project?

Only when

1. You finished within agreed time with project sponsor(shortest time possible)

2. You finished within agreed budget (minimum cost)

3. You delivered the quality service/ product expected

(high performance/best quality)


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PART I contd: Attributes of a Project7

One-off delivery

Unique

Time-bound i.e. has a start and end date Requires resources (financial, material, human &

time)

Uncertainties/Risk embedded

Defined & Measurable Benefits

Have a primary sponsor, target customer anddefined stakeholders.


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PART I contd: How can a Project

come about?8

Through the generation of ideas individually or by

brainstorming

By providing solution to a problem

By capitalizing on an emerging opportunity

By reacting to change in the environment

By obeying a given order or directive

By obeying statutory requirements of goverment By technologizing taking advantage of innovation

and technology

---------(wear your thinking cap & add more)


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PART I contd:Project Environment

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Internal Projects initiated within an entity for her development.

Project team operates within functional units.

PM acts independent outside functional duties.

Project structure usually temporary.

PM depends on people, who report to other functional heads.

External External PM acts as agent on behalf of client.

PM has direct control over project team members.

No influence of functional structure over PM authority.

Involves higher risk, strong risk management must be in place.


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REVIEW 1 - PROJECT10

1. In one sentence, what is your understanding of theterm Project.

2. Give a classic example to buttress your

understanding.3. Mention 3 major attributes of Project.

4. Looking at your work environment, give an exampleeach of:

- an internal project

- an external project


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PART II PROJECT MANAGEMENT11

Project Management is:

- The planning, coordination and control of activitiesand resources to meet a defined objective within agiven timescale, agreed quality and specifiedcost(budget).

- Overseeing the development of a new

product/service to the final stage of delivery.- The monitoring of the development of a goal from

start to finish using effective methodology.


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PART II contd

Why Project Management?12

Ensures timely delivery

Ensures efficiency as well as effectiveness

Ensures that all efforts are organised

Ensures project delivers measurable & acceptablebenefits

Ensures risks are managed with little or noconstraints

Ensures required skills are available to provide bestsolutions.


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PART II contd

Comparison with Operations Management13

Commonalities

o Performed by people

o Constrained by limited resources

o Planned, executed & controlled

Differences

o Project is temporary and unique, while operations isongoing & repetitive

o Project terminates after the achievement of a specificobjective, while operations takes on another objective,without end.


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PART II contd

Areas of Application14

Public Works

Private Works

Complex Works All disciplines including IT, Construction, Finance,

Administration, Marketing, Sports, Event Planning,

etc.

NOTE PM skill can help in everyday life and in everything you do. So

take advantage.


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PART II contd

People Involved/Affected15

Project Sponsor financial provider/idea originator

Project Manager accountable for delivery

Project Team deliver assigned work packages Project Consultants/Specialists technical

involvement

Users ultimate consumer of service/product

Suppliers provides inputs in various forms

Opponents of the Project interested in the failure of

the project


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PART II contdPROJECT MANAGEMENT OFFICE

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Where the project manager operates from an

office, the following complementary staff may be

available or provided depending on the size of

project and the organisational structure in place:

Project Coordinator

Project Accountant

Project Auditor/ Quality Assurance Expert

Project Secretary/Documentation Expert


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PART II contdIMPORTANCE OF A PM

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Accountable for project success

Ensures project progresses and is delivered tospecification and within time and cost

Reports major deviations to project sponsor for areview

Manages project risk, issue and change

Manages project finances & teams and ensurecommunication flow

Keeps proper record at every stage of theproject


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PART II contd

Basic skills of a PM18

Leadership Skills decision making, problem solving

People Skills motivating others, building teams

Communication Skills easily understood, strong

negotiating ability

Technical Skills general understanding of specific

area of interest to the project Organisational Skills obtaining result using men,

material, money and machine


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PART II contd

Profile of an effective PM19

Enthusiastic - Handles ambiguity

Good negotiator - Persistent Open - Responsive

Flexible - Sense of humour

Persuasive - Self Confident

Innovative - Encouraging

Sees potential problem before they arise, etc


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POINTON MARBLE

A project manager isas good as

his or her last project.-Anonymous


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REVIEW 2 -21

Answer YES/NO to questions 1-6 & provide short

answers to 7-10:

1. The management of project is sometimes on acontinuous basis

2. Projects are managed through project teams

3. A project manager must have full understanding ofthe project and must essentially be a technical

person


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4. A project manager turns the sponsors dream into

reality.

5. Timescales get compromised due to poorcoordination by Project Accountant.

6. Every of the project stakeholder is accountable for

the successful delivery of projects.

7. Who is a clever juggler of time, money and people

to meet projects defined objectives


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8. Mention 3 of the several job functions of a Project

Manager.

9. What other singular word can you use to describethe role of a Project Auditor.

10. Two qualities of the several expected of a Project

Manager are ______ & ______ .


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PART III: PROJECT MANAGEMENT PROCESSES -

Using PMBOK from PMI(US)

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- A series of actions directed toward a particular

result. The processes are:

- INITIATING

- PLANNING

- EXECUTING

- MONITORING & CONTROLLING- CLOSING


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Part III contd: What to expect?

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For each of the process.

What is the purpose?

What are the inputs?

What are the activities involved?

What are the expected outputs or deliverables?


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Part III contd:

Level 0-Project Origination26

Purpose:

To provide a formal mechanism to recognise and

evaluate potential projects, and reach consensus onprojects to be selected.

Input:

Business Need(s)

Activities:

Develop business proposal define goal, objectives,

benefits and do a cost-benefit analysis.


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Evaluate project proposal

Select project

Outputs/Deliverables:

Business Case

Proposed Solution


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Information to be included in the Business Case are:1. Introduction

2. Business Objective

3. Current Situation & Problem Opportunity Statement

4. Critical Assumption & Constraints

5. Analysis of Options & Recommendations

6. Preliminary Project Requirements

7. Budget Estimate & Financial Analysis8. Schedule Estimates

9. Potential Risks

10. Exhibits

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PROJECT SELECTION Involves looking at different alternatives with a view to determine their

investment level and expected benefits/outcomes.

The best way to arrive at the best project that will offer the greatestbenefit at the lowest cost is through empirical analysis using Cost-

Benefit Analysis.

Cost-Benefit Analysis include the following:

Net Present Value

Future Worth Methods Internal Rate of Return

Payback Period

Cost-benefit Analysis.

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Part III contd:

Level 1-Project Initiation30

Purpose:

To verify assumptions made in Project Origination,define and authorize the project

Input:

Business Case

Proposed Solution

Activities:

Assign Project Manager.

Identify Stakeholders.


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Define Resources, Roles & Responsibilities

Develop Project Charter to include scope, schedule,

cost and quality

Identify Risks

Confirm Approval to Proceed

Outputs/Deliverables: Project Charter

Initial ProjectApproval


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Risk A potential event that may impact the

project positively or negatively.

Potential problems that can hinder or delay

project success

Issue Something that is preventing project

progress.

A risk that has manifest is an issue.Change Agreed alterations to project parameters

scope, cost, schedule and quality due to

resolution of issues or provision of solutions

to risks.


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Risk Factors in Project Management

Risk Factors obstacles that could prevent the meeting

of project objectives

How to assess risk

Project Manager can use a checklist

PM can hold brainstorming session with Project Team

Stakeholders can be questioned or interviewed

Check past project records.


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Project Charters34

After deciding what project to work on, it is

important to formalize projects

A project charter is a document that formally

recognizes the existence of a project and providesdirection on the projects objectives and

management

Key project stakeholders should sign a projectcharter to acknowledge agreement on the need

and intent of the project


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PROJECT CHARTER Information Reqd.

Project Name

Project Sponsor

Project Manager

Project Overview

- Business Need/Opportunity

- Product/Service Description

- Objectives

- Project Deliverables

- Out of Scope

- Known Risks

Financial Benefits

Project Stakeholders

Human Resource Needs

Roles & Responsibilities

NOTE

A PM must never

sign a Project

Charter that if he

was not a party toevery of the

agreement

reached on the

key project

variables of

COST, TIME,QUALITY,

SCOPE & most

importantly

BENEFIT

DERIVABLE.


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JWDs Project Charter

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Part III contd:

Level 2-Project Planning38

Purpose:

To define & refine objectives, & to establish a plan of

action required to attain the objectives & scope of the

project.

Input:

Project Charter

Activities:

Refine scope.

Identify major tasks & deliverables.


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Develop Work Breakdown Structure-WBS*

Develop Schedules

Define specific skills & resource requirements

Define Milestones/Review Points

Develop complete Project Management Plan toinclude communication, personnel, risk, quality,

procurement etc.

Outputs/Deliverables: Project Management Plan

Approval to continue


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Basic Principles for Creating WBS

1. A unit of work should appear at only one place in the WBS.

2. The work content of a WBS item is the sum of the WBS items below it.

3. A WBS item is the responsibility of only one individual, even though many

people may be working on it.

4. The WBS must be consistent with the way in which work is actually going to

be performed; it should serve the project team first and other purposes

only if practical.

5. Project team members should be involved in developing the WBS to ensure

consistency and buy-in.

6. Each WBS item must be documented to ensure accurate understanding of

the scope of work included and not included in that item.

7. The WBS must be a flexible tool to accommodate inevitable changes while

properly maintaining control of the work content in the project according to

the scope statement.

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WORK BREAKDOWN STRUCTURE (WBS)

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Dial-upAccess

Requirements

SurveyNeeds

PrepareRequiredReport

ReviewRequirement

withStakeholder

Procedures

DevelopReqmt.

Procedures

Dev. SupportProcedures

Dev. ProgramMeasurement

ReviewProcedure

Design

Dev. High-level Design

Dev.DetailedDesign

ReviewDesign

Build

Config. ForWork Station

Config. ForServer HW &

SW

Install ServerSW & HW

Test ServerSystem

InstallWorkstation HW

& SW

Performintegrated

Test

Implement

Dev. User TrainingMatr.

Dev. Oper.Support Doc.

Train OperationalSupport Team

Define PilotGroup

Install Workstation SWfor Pilot Group

Train Pilot Group

Run Test with Pilot

Group

WBS is an organised view of project tasks and sub-tasks broken down

into different categories that produces deliverables.


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WHATof Project ManagementTasks

- Identify, sequence, estimate & flow chart

WHO of Project ManagementResources- Identify, assign, estimate & identify constraints

WHEN of Project ManagementSchedules*

- The inter-twine of WHAT & WHO results in WHEN,

which is the Project Schedule.


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PROJECT SCHEDULE

- Objective is to estimate start & end dates of

projects.

- Know task duration

- Know task dependencies/relationships

- Know tools used for this purpose including Network

Diagram, Critical Path Method, Gantt Chart.- Determine milestone with dates.


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A COMPLETE PROJECT PLAN GOES BEYOND JUST A SCHEDULE

PROJECT MANAGEMENT PLAN

Project Name

Project Sponsor

Project Manager

Project Overview

Project Scope In/Out

DeliverablesProject Approach

Cost/Time

Milestones

Assumptions

Constraints

Risks

Communication Plan

Change Management PlanResource Management Plan

Risk Management PlanIssue Management Plan

Quality Management Plan

Project Close-Out Plan


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Baselinning your project plan

Project Baseline is the version of your complete projectmanagement plan that was approved at PlanningStage (i.e. freezed project plan).

Re-baselinning is officially adopting a new projectplan based on changes made to guide performancemanagement.

Re-baselinning can be done severally within thelifespan of a project.

Re-baselinning is a last resort when project work is notgoing according to plan as earlier agreed.


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Part III contd:

Level 3-Project Execution46

Purpose:

To develop/purchase product or service that the

project was commissioned to deliver based on the

Project Management Plan.

Input:

Approved Project Management Plan

Approved Change Requests

Approved Corrective/Preventive Actions


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An important key to effective execution is

- COMMUNICATIONStart off right:

o communicate project goals & benefits

o resolve questions from team at 1st project meeting

o ensure everyone on the project understand their role

Keep it up:

o review checkpoint/milestones

o follow communication plan

P III d


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Part III contd:

Level 4-Project Monitoring & Control

Purpose:

To ensure that project objectives are met by

monitoring and measuring progress & takingcorrective actions, when necessary.

Input:

Approved Project Management PlanWork Performance Information

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Activities:

Measure progress based on scope, cost, schedule &

quality

Manage expectations, changes, issues and risk

Resolve conflicts Meet with team regularly

Report status writing


Project Plan & Financials Update

Issue, Risk & Change Mgt. Log

Meeting Documentation & Periodic Status Report

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How to track projects?

Team member assigned task must provide actual

time spent on task as well as remaining time to

complete the task

Project Manager to watch out for

tasks exceeding planned period

tasks not completed on schedule

new, unplanned tasks to be incorporated

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Common causes of failed schedules

Turnover on project team

Poor time estimates for tasks

Delay in receipt of supplies, materials or equipment

Poor resource allocation Unexpected changes to plan

Change Management/Control

Changes are inevitable in every project Change unattended to can cause project to fail

Goal of change management is not to suppress change,

but to recognize the implications of it & deal with it

promptly

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Steps to gain control of projects

Meet with project sponsor Interview project team

Clarify project scope & cost justification

Revise funding requirements & seek approval

Keep every stakeholder informed of progress & problems

Recognise the need for change & add changes as required

to project plan

Trade off in Project ControlWhen issues occur in projects that require change,

consideration is usually along this line

SCOPE (reduce) RESOURCES (increase)

SCHEDULE (increase) QUALITY (reduce)

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Purpose:

To formalize acceptance of the project and bring it to

an orderly end.

Input:

All previous inputs from the point of origination to

control.

Activities: Evaluate project outcomes & facilitate acceptance

Document lessons learned

Transfer responsibility to Operations/Maintenance

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Part III contd:

Level 5-Project Close


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ProjectEvaluation Report

Deliverable Sign-off

Post-implementation Review

Project Close-out Report

Project Responsibility Transfer

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Knowledge areas describe the key competencies that

project managers must develop

4 core knowledge areas lead to specific project

objectives (scope, time, cost, and quality) 4 facilitating knowledge areas are the means through

which the project objectives are achieved (human

resources, communication, risk, and procurement

management) 1 knowledge area (project integration

management) affects and is affected by all of the

other knowledge areas


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Project Management Framework57


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PART IV: ACTIVITIES IN PROJECT

MANAGEMENT KNOWLEDGE AREAS

1. Integration Management

Purpose

Ensuring that the various elements of the project are coordinated.

Activities oProject Charter Development (I)

oPreliminary Scope Statement (I)

oProject Plan Development (P)

oProject Plan Execution (E)

oChange Monitoring & Control (M&C)

oIntegrated Change Management (M&C)

oProject Close-out (C)

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Part IV PM Knowledge Areas & Activities

2. Scope Management

Purpose

Ensuring the project include all and only the work required to

complete the project successfully.

Activities oScope Planning (P)

oScope Definition (P)

oWork Breakdown Structure -WBS (P)

oScope Verification (M&C)

oScope Change Control (M&C)

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3. Time Management

Purpose

Ensuring timely completion of project.

Activities oActivity Definition (P)

oActivity Sequencing (P)

oActivity Resource Estimating (P)

oActivity Duration Estimating (P)

oSchedule Development (P)

oSchedule Control (M&C)

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4. Cost Management

Purpose

Ensuring that the project is completed within approved budget.

Activities

oCost Estimating (P)

o

Cost Budgeting (P)oCost Control (M&C)

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5. Quality Management

Purpose

Ensuring that the project will satisfy the need for which it wasundertaken.

Activities

oQuality Planning (P)

oQuality Assurance (E)

oQuality Control (M&C)

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8. Risk Management

Purpose

Ensuring appropriate identification, analysis & response to

project risk.

Activities oRisk Management Planning (P)

oRisk Identification (P)

oQualitative Risk Analysis (P)

oQuantitative Risk Analysis (P)

oRisk Response Development (P)

oRisk Response Control (M&C)


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9. Procurement Management

Purpose

Ensuring the required acquisition of goods & services from outside

the performing organisation.

Activities oProcurement Planning (P)

oContract/Solicitation Planning (P)

oRequest Contractor Response/Solicitation (E)

oContractor Selection (E)

oContract Administration (M&C)

oContract Close-out (C)

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Part V SUCCESS & FAILURE IN PROJECTS

Parameters for measuring project success:

QUANTITATIVE

Has it met the QUALITY defined in the Scope?

Was it delivered within specified BUDGET/COST?

Was it delivered within the agreed TIME FRAME?

QUALITATIVE

Was benefit delivered to the sponsor?

Was benefit delivered to the stakeholders?

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Part V (contd) Important Factors for


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Part V (cont d) Important Factors for

Project Success

1. The Project Itself

2. The Project Manager

3. The Project Team

4. Other Stakeholders, internal or external

5. The environment political, social, economic, etc.

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Part V (contd) Why projects succeed?

Clear Vision & Objective Business Case

Sponsor/Executive Management Support

Realistic Expectation deliverables indicated in the Scope

Definition (Scope Statement)

Well developed estimate of time and cost based on clearly

articulated WBS

Proper planning using appropriate tools

Milestones at appropriate intervals

Involvement of stakeholders

Competent staff hardworking, intelligent and focused

Good communication across board

Good coordination skill by Project Manager

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P V ( d) S C f F il i


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Part V (contd) Some Causes of Failure in

Projects

Drawbacks in Initiating Projects

Project plan not properly aligned with business plan

Procedures for managing project not defined

Priorities in project not communicated to stakeholdersNo shared vision among the players in the project

Drawbacks in Planning Projects Project Plan without detailed WBS

Use of cumbersome tools that implementers do not understand

PM should elicit cooperation and lead team rather than being

dictatorial, which can kill initiative

Cost & Resource Estimates must be realistic

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Drawbacks in Organising & Executing Projects

Lack of cooperation of stakeholder to achieve commonobjective

Lack of availability of resources when required

Poor communication

Roles & responsibilities of team members not clearlydefined

PM not well grounded in other relevant skills apart from

technical know-how

Drawbacks in Monitoring & Control Projects PM failure to monitor progress, attend to issues & risks

Review meeting not documented for appropriate follow-up

PM having responsibilities but lacking authority

P t VI USEFUL INFORMATION ON


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Part VI USEFUL INFORMATION ON

PROJECT MANAGEMENT

1. Some Project Management Planning & Controlling Tools

Work Breakdown Structure (WBS) SCOPE

Project Logic Diagram SCOPE

Gantt Chart TIME

Critical Path Method (CPM) TIME

Performance Evaluation & Review Technique (PERT) TIME

Graphic Evaluation & Review Technique (GERT) TIME

Earned Value Analysis COST

Cost Breakdown Structure (CBS) COSTBrainstorming Sessions QUALITY CONTROL

Pareto Analysis, SWOT Analysis QUALITY CONTROL

Scatter Diagram, Control Charts QUALITY CONTROL

Cause & Effect Analysis QUALITY CONTROL

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2. Commercial Project Planning & Control Software

LARGEMULTI-PROJECTUSERS

Power Project ProfessionalPrimavera Project Planner

Artenus View 4

Cobra

Entreprise PM

Micro Planner X-Pert

MID-RANGE PRODUCTSUP TO ABOUT 2000 TASK

Microsoft Project

Micro-Planner Manager

Primavera Suretrak

LOWCOST PACKAGES

Milestone Simplicity

Project Vision

Quick Gantt

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3. History of Project Management 1900 Gantt chart introduced

1944Atomic Bomb first really complex, high tech project need for new

management approach identified 1950 First network diagrams, further development of Los Alamo principal into

now called Project Management

1957Dupont created Critical path method (CPM)

1958US Navy launched program evaluation and review technique (PERT)

1960 Computer technology provided improved capabilities

1960 Association of Project Management (APM) in UK and ProjectManagement Institute (PMI) in US

1967Graphical evaluation and review technique (GERT)

1970 Planning and costing based on an earned value concept widespread

1980 Project management software for PC

1988Body of Knowledge for APM

1996British standard BS6079

1997European International standard ISO 10006

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4. Popular Project Management Methodologies

A methodology is a set of methods /steps that is used or

followed in delivering projects.

Note that any existing method can be customized or you may

create a method that will be peculiar to your establishmentonly.

PMBOK Project Management Body of Knowledge by Project ManagementInstitute (PMI, US). www.pmi.org

PRINCE2 Project in Controlled Environment by UK Office of Government

Commerce (OGC). www.ogc.gov.uk/prince/ APMBOK Association of Project Management Body of Knowledge by

Association of Project Management, UK (APM). www.apmgroup.co.uk

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CONCLUSION

It is not what you know that matters but what you

do with what you know, therefore go and affect

your organisation with the knowledge of project

management positively. Be an advocate of this new knowledge PROJECT

MANAGEMENT.

- Akin Olawale.

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the basics of project management

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