Project Management Institute Northern Nevada Chapter Bill Hoffman, P.E. Assistant Director – Engineering September 27th, 2011

Roman Empire 1990s 1980s 1970s 1950s 1940s A.D. 100 B.C. 1960s Current 2000’s 1940’s World War II 1957 Critical Path Analysis CPM & PERT 1960’s Defense Dept. & Construction Industry 1970’s Project Management Institute Int’l Project Management Assoc. PMBOK 1980’s Enterprise PM Project Management BOK 1990’s Enterprise PM Current Technology Explosion

NDOT PM Objectives Improve efficiency Deliver Projects Faster Meet public needs Minimize Costs

NDOT PM Initiatives Document the PM Process Refined Project Scoping Process Risk-Based Cost Estimating Innovative Project Delivery

Innovative Project Delivery

Document the Process Project Management Institute – “A Guide to the Project Management Body of Knowledge” (PMBOK) Initiating Planning Executing Monitoring & Controlling Closing Project Management The NDOT Project Management Guidelines (PMG) was developed based on the Project Management Institute – A Guide to the Project Management Body of Knowledge (PMBOK) The NDOT Project Management Guidelines (PMG) was developed to : improve project delivery, improve team performance and to satisfy legislative mandated reporting requirements.  T

NDOT PM Processes The PMG defines a common approach for application of project management techniques that can be applied to all NDOT transportation projects. This structured approach will help project teams to think about project goals and risks; helps define, organize and plan their project; and guides project teams to monitor and control project performance from inception to completion.   The project manager uses the project management planning processes to develop the project management plan. The project management plan is the primary source of information for how the project will be planned, executed, monitored, controlled, and closed.

NDOT's PM Vision Program Level Management Plan (Enterprise PM) Project Level Management plan Using our Project Management Guidelines Manual, we plan to prepare both a program level management plan and a project level management plan.

NDOT Project Lifecycle Risk management is an integral part of project management process. The primary goal of risk management is to optimize project performance. By identifying project risks and anticipating potential problems early during project development, strategies can be implemented to manage project risks and thus improve project performance. Project will perform poorly if the project risks are not managed. Even a best planned project (solid line during the planning phase), will perform poorly (will follow the dashed line) if the project risks are not well managed or risk management is ad-hoc.

Scoping & Refinement As the project is developed and project risks are reduced/retired, the confidence in project costs/schedule will increase. PM #13 performance measurement is based on comparing the project’s total awarded costs to the project baseline range at the end of the environmental phase.

Ability to make changes Change Management High Ability to make changes Cost of making changes It really comes down to when you lock-down your most accurate estimate and whether you’ve accurately identified all your risks. Degree of Change Best Opportunity for Improvement Low Planning Design Construction Time

Scoping - Continual Project Refinement 2011 Transportation Conference

NDOT’s Approach to Cost Estimating Risk Management: Probabilistic, risk based, integrated cost and schedule model Currently working with FHWA to “certify” this process If certification received, FHWA HQ staff will not require CER be performed by them: we will perform our own risk analysis and they will review and approve our report to minimize duplication of effort.

Risk Analysis Threats and Opportunities analysis: Review project Cost and Schedule elements Develop associated cost scenarios for each Threat & Opportunity Develop probability assumption curves Perform a Monte Carlo Simulation to generate a project estimate and schedule forecast as a range Cost risk assessment + value engineering “What-If” Scenarios

Cost risk assessment and value engineering

Detailed Project Info www.nevadadot.com 2011 Transportation Conference The Project Management Plan is the guide for implementing the major project and documents assumptions and decisions regarding communication, management processes, execution and overall project control. The purpose of the Management Plan is to clearly define the roles, responsibilities, procedures and processes that will result in the project being managed such that it is completed on-time, within budget, with a high degree of quality, in a safe manner and in a way in which the public trust, confidence and support in the project will be maintained. In accordance with Section 106(h)(2) of Title 23, as amended by SAFETEA-LU, a Project Management Plan shall "document the procedures and processes that are in effect to provide timely information to the project decision makers to effectively manage the scope, costs, schedules, and quality of, and the Federal requirements applicable to, the project. A Project Management Plan shall also document the role of the agency leadership and management team in the delivery of the project. It is essential that the Project Management Plan establishes the metrics by which success of the project is defined." The FHWA has developed Project Management Plan guidance that describes topics that form the basic contents of a Project Management Plan that meet the SAFETEA-LU requirements. This guidance is intended to be a general framework for the Project Management Plan, but not a prescriptive format. View the Project Management Plan Guidance. 2011 Transportation Conference

Thank you ! NNC-PMI whoffman@dot.state.nv.us The Project Management Plan is the guide for implementing the major project and documents assumptions and decisions regarding communication, management processes, execution and overall project control. The purpose of the Management Plan is to clearly define the roles, responsibilities, procedures and processes that will result in the project being managed such that it is completed on-time, within budget, with a high degree of quality, in a safe manner and in a way in which the public trust, confidence and support in the project will be maintained. In accordance with Section 106(h)(2) of Title 23, as amended by SAFETEA-LU, a Project Management Plan shall "document the procedures and processes that are in effect to provide timely information to the project decision makers to effectively manage the scope, costs, schedules, and quality of, and the Federal requirements applicable to, the project. A Project Management Plan shall also document the role of the agency leadership and management team in the delivery of the project. It is essential that the Project Management Plan establishes the metrics by which success of the project is defined." The FHWA has developed Project Management Plan guidance that describes topics that form the basic contents of a Project Management Plan that meet the SAFETEA-LU requirements. This guidance is intended to be a general framework for the Project Management Plan, but not a prescriptive format. View the Project Management Plan Guidance. NNC-PMI