Project Management ERT461: Biosystems Engineering Design I ERT424: Bioprocess Plant Design I

PS Introduction: What Is a Project ? Project Defined A complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. Major Characteristics of a Project Has an established objective. Has a defined life span with a beginning and an end. Typically requires across-the-organizational participation. Involves doing something never been done before. Has specific time, cost, and performance requirements.

Project Management Body of Knowledge PMBOK® Guide identifies generally recognized Project Management “Good practices” Correct application of “Good practices” can enhance the chances of success over a wide range of different projects Project Life Cycle Definition Project Management Life Cycle Five Project Management Process Groups Nine Knowledge Areas

Project Management Body of Knowledge Project Life Cycle Definition Project can be divided into phases to provide better management control with appropriate links to the ongoing operations of the performing organizations Completion and approval of one or more deliverables (Scope definition) characterizes a project phase Some deliverables can correspond to project management process groups (Initiating, Planning, Executing, Monitoring and Controlling, Closing), others are the end products or components of end products for which the project was conceived.

Project Management Life Cycle in the PMBOK® Guide Five Project Management Process Groups (not necessarily phases) Initiating Planning Executing Monitoring and Controlling Closing

Knowledge areas in PMBOK® Guide There are 42 project management processes organized into 9 knowledge areas The Knowledge Areas are: Integration Management Scope Management Time Management Cost Management Quality Management Human Resources Management Communications Management Risk Management Procurement Management

PMBOK® Guide Knowledge Areas Charter & Scope Management Project structures, WBS, Activities and Networks Cost and Revenue Planning Budget Time Management Customizing Activities and Networks Date Planning

PMBOK® Guide Knowledge Areas Cost Management Cost and Revenue Planning Budget Progress Analysis Workbench Quality Management Resource Planning Material Planning Assigning Documents, Procurement Processes, and Claim Management

PMBOK® Guide Knowledge Areas Procurement Management Material Planning Assigning Documents, Procurement Processes Integration Management Estimation and development of complete Project Plan Customizing Activities and Networks Progress Analysis Workbench

Project Success There are different ways to define project success: The project met scope (understood technical functionality), time, and cost goals. The project satisfied the customer/sponsor. The project produced the desired results (expected technical functionality).

Typical Project Constraints

Description of Process Groups Initiating processes include actions to begin projects and project phases Planning processes include devising and maintaining a workable scheme to ensure that the project meets its scope, time, and cost goals as well as organizational needs Executing processes include coordinating people and other resources to carry out the project plans and produce the deliverables of the project or phase. A deliverable is a product or service produced or provided as part of a project

Description of Process Groups Monitoring and controlling processes measure progress toward achieving project goals, monitor deviation from plans, and take corrective action to match progress with plans and customer expectations Closing processes include formalizing acceptance of the project or phase and bringing it to an orderly end

Guidelines for Time Spent in Each Process Group The best or “alpha” project managers spend more time on every process group than their counterparts except for execution, as follows: Initiating: 2% vs. 1% Planning: 21% vs. 11% Executing: 69% vs. 82% Controlling: 5% vs. 4% Closing: 3% vs. 2%* *Andy Crowe, Alpha Project Managers: What the Top 2% Know That Everyone Else Does Not, Velociteach Press(2006).

PMBOK® Guide Framework

Stakeholders and Influencers Organizational Influences Organizational Cultures and styles Organizational systems Organizational structure Functional Matrix “Projectized” Project manufacturing Project Stakeholders Project Manager Customers and/or users Performing organization Project team members Sponsor Influencers PMO

PMBOK® Guide project Management Integration Project Integration Management 4.1 Develop Project Charter 4.2 Develop Project Management Plan 4.3 Direct and Manage Project Execution 4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control 4.6 Close Project or Phase Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 4-1, Page 73.

Initiating Process Summary Senior management work together to: Determine scope, time, and cost constraints Identify the project sponsor Select the project manager Develop a business case for the project Review processes/expectations Determine if the project should be divided into two or more smaller projects Project managers lead efforts to: Identify and understand project stakeholders Create the project charter Hold a kick-off meeting

Inputs to develop Project Charter Charter should explicitly state “what” the project is about: Features and functions that characterize a product, service or result. Product or Service description Strategic plan Statement of work Enterprise environmental factors Organizational process assets

Project Charter contents Project Overview Project Objectives Requirements Business Justification Strategic Other Preliminary Resources Allocation High-level time and cost estimates Roles and Responsibilities Sign-off Attachments

Project Charter within SAP PS Use Project Builder to create the following: Project Overview Project Objectives Preliminary Resources Allocation High-level time and cost estimates (Root time and cost estimates) Roles and Responsibilities Attachments

Project Builder

PMBOK® Guide Project Scope Management 5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS 5.4 Verify Scope 5.5 Control Scope Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 5-1, Page 104.

Creating the Work Breakdown Structure A work breakdown structure (WBS) is a deliverable-oriented grouping of the work involved in a project that defines the total scope of the project The WBS is a document that breaks all the work required for the project into discrete tasks, and groups those tasks into a logical hierarchy

Hierarchical Breakdown of the WBS

Work Packages A Work Package is the Lowest Level of the WBS It is output-oriented in that it: Defines work (what) Identifies time to complete a work package (how long) Identifies a time-phased budget to complete a work package (cost) Identifies resources needed to complete a work package (how much) Identifies a single person responsible for units of work (who)

WBS Dictionary Description of WBS work packages that includes: Statement of Work Responsible organization Schedules milestones Quality requirements Contract information Technical references Resource requirements Estimated cost

PMBOK® Guide Project Time Management Project Time Management Overview 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 6-1, Page 131.

Project Time Management Planning Tasks Project Time Management occurs within SAP PS in two levels, at the WBS Element, and at the Network activities In some projects the work components are handled by others, or outsourced. In those situations, a project may be comprised of only WBS elements. Those elements can have time components attached to them. If components within the WBS element will be carried out and monitored by the organization, then Networks and Activates are created for closer monitoring.

Project Time Management Planning Tasks Project time management involves the processes required to ensure timely completion of a project The main planning tasks performed include defining activities, sequencing activities, estimating activity resource, estimating activity durations, and developing the project schedule The main documents produced are an activity list and attributes, a milestone list, a network diagram, the activity resource requirements, the activity duration estimates, and a project schedule

The Project Network A flow chart that graphically depicts the sequence, interdependencies, and start and finish times of the project tasks/activities Provides the basis for scheduling labor and equipment Provides an estimate of the project’s duration Provides a basis for budgeting cash flow Highlights activities that are “critical” and should not be delayed Help managers get and stay on plan

Creating a Milestone List A milestone is a significant event in a project It often takes several activities and a lot of work to complete a milestone, but the milestone itself is like a marker to help identify necessary activities Project sponsors and senior managers often focus on major milestones when reviewing projects Sample milestones for many projects include: Sign-off of key documents Completion of specific deliverables Completion of important process-related work, such as awarding a contract to a supplier

Sequencing Activities Sequencing activities involves reviewing the activity list and attributes, project scope statement, and milestone list to determine the relationships or dependencies between activities A dependency or relationship relates to the sequencing of project activities or tasks For example, does a certain activity have to be finished before another one can start? Can the project team do several activities in parallel? Can some overlap? Sequencing activities has a significant impact on developing and managing a project schedule

Reasons for Creating Dependencies Mandatory dependencies are inherent in the nature of the work being performed on a project You cannot hold training classes until the training materials are ready Discretionary dependencies are defined by the project team A project team might follow good practice and not start detailed design work until key stakeholders sign off on all of the analysis work External dependencies involve relationships between project and non-project activities The installation of new software might depend on delivery of new hardware from an external supplier. Even though the delivery of the new hardware might not be in the scope of the project, it should have an external dependency added to it because late delivery will affect the project schedule

Further defining Activities/Tasks Task Sequencing and Predecessors Establishing durations Expert judgment Parametric estimating Establishing dependencies Finish to Start Finish to Finish Start to Start Start to Finish

Dependency Types

Constructing a Project Network Terminology Path: a sequence of connected, dependent activities. Critical path: the longest path through the activity network that allows for the completion of all project-related activities; the shortest expected time in which the entire project can be completed. Delays on the critical path will delay completion of the entire project.

PMBOK® Guide Project Cost Overview Project Cost Management Overview 7.1 Estimate Costs 7.2 Determine Budget 7.3 Control Costs Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 7-1, Page 167.

PMBOK® Guide Project Cost Overview Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 7-1, Page 167.

PMBOK® Guide Project Cost Overview Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 7-1, Page 167.

PMBOK® Guide Project Quality Management Overview 8.1 Plan Quality 8.2 Perform Quality Assurance 8.3 Perform Quality Control Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 8-1, Page 191.

PMBOK® Guide Project Human Resource Management Overview 9.1 Develop Human Resource Plan 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 9-1, Page 217.

PMBOK® Guide Project Communications Management Overview 10.1 Identity Stakeholders 10.2 Plan Communications 10.3 Distribute Information 10.4 Manage Stakeholder Expectations 10.5 Report Performance Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 10-1, Page 244.

PMBOK® Guide Project Risk Management Overview 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Response 11.6 Monitor and Control Risks Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 11-1, Page 274.

PMBOK® Guide Project Procurement Management Overview 12.1 Plan Procurements 12.2 Conduct Procurements 12.3 Administer Procurements 12.4 Close Procurements Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008, Figure 12-1, Page 314.

Change is a Process Present Transition Desired State State State Driving Forces Resisting Forces Desired State Transition State Present State Unfreezing Changing Refreezing

Summary of Project Closing Outputs Knowledge area Closing process Outputs Project integration management Close project or phase Final product, service, or result transition Organizational process assets updates Project procurement management Close procurements Closed procurements

The Quadruple Constraint

Project Management Tools and Techniques Project management tools and techniques assist project managers and their teams in various aspects of project management. Note that a tool or technique is more than just a software package. Specific tools and techniques include: Project charters, scope statements, and WBS (scope deliverables) Gantt charts, network diagrams, critical path analyses (time) Net present value, cost estimates, and earned value management (cost)

Common Project Management Tools and Techniques by Knowledge Areas Schwalbe, Information Technology Project Management, Sixth Edition, 2010

Common Project Management Tools and Techniques by Knowledge Areas Schwalbe, Information Technology Project Management, Sixth Edition, 2010