Welcome to Session 3 – Project Management Process Overview Project Management Certificate Program Welcome to Session 3 – Project Management Process Overview Instructor: Phyllis Sweeney

Project Management Certificate Program Class 3 - 5 Outline Discuss Project Management Processes over the next 3 classes Processes Major Activities Deliverables Distinguish the difference between a project life cycle and project management process Project Management Certificate Program

Session 3 Learning Objectives The student will be able to: Identify the Project Management Processes Produce a Project Overview Statement Work within their teams Project Management Certificate Program

Project Management Processes Projects are composed of processes Processes are defined as a series of actions bringing about a result Project processes fall into one of two major categories Product-oriented Processes Specify and create the project through the lifecycle – previous exercise Project Management Processes Describe and organize the work of the project     Product-oriented processes – lifecycle – sdlc Phases --- activities-----milestones---deliverables Project Management Certificate Program

Project Management Processes Project management processes and product-oriented processes overlap and interact throughout the project. Project management processes; however, are not discrete, one-time events Are overlapping activities, which occur at varying levels of intensity through each phase of the project/product lifecycle. Project Management Certificate Program

Project Management Certificate Program Project Management Processes Initiation Planning Control Execution Closeout Project Management Certificate Program

Project Management Processes Lifecycle Phase Phase Planning Planning Planning Closing Initiating Initiating Closing Executing Executing Monitoring and Control Monitoring and Control Project Management Certificate Program

Lifecycle or Project Management Processes? Requirements Design Implementation Stabilization Release Project Management Certificate Program

Project Management Processes Initiation Initiate the Project Identify Scope Baseline Establish Basis for Future Decisions Planning Execution Monitoring and Controlling Initiate = Scope Close Out the Project Project Management Certificate Program

Project Management Certificate Program Initiation Process Recognizes that a project or phase should begin and committing to do so Authorizes the project or phase Project Management Certificate Program

Project Management Certificate Program Project Selection All organizations have more ideas on needs to spend money on than they have money Needs must be studied and priorities set Selection of the right project to do is the first and most important decision made Not doing the project may be the answer! Is it difficult to stop the project? Russell experience…….with George Project Management Certificate Program

Project Management Certificate Program Project Selection Many organizations have a two-step project approval process. Step 1 – Pick projects to study out of a large list of opportunities. Step 2 – Final approval to proceed after detailed scoping and planning done How is it done in your organization? Formal Process Informal Process Project Management Certificate Program

Project Management Certificate Program Project Selection Process Suppliers Process Output Project Opportunity Establish Objectives Gather Data/Identify alternatives -Select Business Case Prepare Conceptual Estimate -Analyze Risk Business Legal Technical Environmental Make go/no go Decision Identify key project team members Outputs -Business Objectives Broad Scope Estimate & Schedule Go/No Go Decision Key Team Members Input Business/Product Marketing Operations/Finance/Planning Legal/ Environmental/Technical -Vision Strategies Policies Data -Resources TQM – SIPOC === Supplier, Input, Process, Outputs, Customer Customers Project Management Certificate Program

Project Management Certificate Program Investment Concerns Uncertainty and Risk Future economic conditions Future Laws Expected Return on Investments Accuracy of Resource Estimates Accuracy of Benefit Estimates Other examples (by Class) Future Laws = 508 – Disabilities Act Project Management Certificate Program

Project Management Certificate Program Investment Concerns Some Common Evaluation Methods Depreciation Net Present Value IRR Future Laws = 508 – Disabilities Act Depreciation – Like a car, software NPV: Time value of money – conversion of value to the present point in time. How much is $1000 10 years from now worth today??? $4,000,000 to save to get a $100,000 annual income. IRR = NPV in = NPV out: Annual rate of earnings on an investment. IRR equates the value of the cash returns with invested cash and considers the application of compound interest factors. NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. If the NPV of a prospective project is positive, it should be accepted. However, if NPV is negative, the project should probably be rejected because cash flows will also be negative. For example, if a retail clothing business wants to purchase an existing store, it would first estimate the future cash flows that store would generate, and then discount those cash flows into one lump-sum present value amount, say $565,000. If the owner of the store was willing to sell his business for less than $565,000, the purchasing company would likely accept the offer as it presents a positive NPV investment. Conversely, if the owner would not sell for less than $565,000, the purchaser would not buy the store, as the investment would present a negative NPV at that time and would, therefore, reduce the overall value of the clothing company. Project Management Certificate Program

STEP 1: Scope the Project What is the Problem or Opportunity? Who wants this project complete? Who is the sponsor? What is to be done? When must the project be completed by? You’ve selected your project, now what? Project Management Certificate Program

STEP 1: Scope the Project State the Problem and/or Opportunity Establish the Project Goal Define the Project Objectives Identify Assumptions, Constraints, Risks, and Success Criteria Deliverable: PROJECT OVERVIEW STATEMENT (POS) POS = SOW = Charter : Depends on level of detail Project Management Certificate Program

Identify the Project Goal Defines the final outcome Should have only one goal, which may identify several objectives: Goal + Objectives = Scope Should be understandable to outsider Build a High Availability System that will enable failsafe scenarios, stateful redundancy …. Build system that allows recovery which is transparent to the user. Use husband or friends as sounding board Project Management Certificate Program

Project Management Certificate Program Objectives: “S.M.A.R.T.” Specific Be specific in targeting objectives Measurable Establish a measurable indicator(s) of progress Assignable Make the objective assignable to one person for completion Realistic State what can be realistically be achieved with the available resources Time-related State when the objective can be achieved; i.e. - Duration "Management by objectives works if you know the objectives. Ninety percent of the time you don't" Peter Drucker Project Management Certificate Program

Identify Success Criteria Condition of Satisfaction State success criteria in terms that senior management will understand - both product and project Management wants to deal with deliverables and to assign business values What are some common success criteria? Product Project Product – 1Q Project – 24 hour turnaround Condition of Satisfaction – Completion criteria Project Management Certificate Program

Identify Assumptions, Risks, Constraints What assumptions can be made to avoid delays in completing the project with given resources and constraints? Decisions What decisions must be made now? What decisions cannot be made until work commences on the project? Resources What resources are required? Can a resource be a risk? Must Joe Blow be assigned? Risk: An occurrence that may or may not effect the project. Assumption: Are factors that, for planning purposes will be considered true, real, or certain. Generally involve a degree of risk. Constraint: Absolute Project Management Certificate Program

Identify Assumptions, Risks, Constraints What risks occur if resources are not obtained in timely manner? Delays What problems and delays are likely to occur in this project? What effects will delays have on the project? What are the probable budget and schedule overruns to complete this project? Constraints What are examples of constraints? Can a resource be a risk? Must Joe Blow be assigned? Risk: An occurrence that may or may not effect the project. Assumption: Are factors that, for planning purposes will be considered true, real, or certain. Generally involve a degree of risk. Constraint: Absolute/must versus should – will, must, shall – Yr 2000 absolute, resources can only be used at 70%. A storm may impede completing the project – risk – may or may not make a decision Difference between risk and issues. Risk is umbrella to issues. Issues have action items associated with them, generally. Project Management Certificate Program

Identify Assumptions, Risks, Constraints Factors that, for planning purposes, are considered to be true, real, or certain. May involve a degree of “risk.” Risks An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives. Constraints Any factor that affects when an activity can be scheduled. Absolutes Definitions Adapted from PmBok Can a resource be a risk? Must Joe Blow be assigned? Risk: An occurrence that may or may not effect the project. Can be a positive risk: org change, monetary change (if govt provides more money) Assumption: Are factors that, for planning purposes will be considered true, real, or certain. Generally involve a degree of risk. Constraint: Absolute – Will the project stop if this occurs. There is NO negotiation. Project Management Certificate Program

Project Management Certificate Program Other POS Components Risk analysis Financial analysis Feasibility Study Cost-benefit evaluation Break-even analysis Return on investment (ROI) Preliminary Budget and Schedule Project Management Certificate Program

Project Management Certificate Program POS Approval How important is this project? How does this project relate to our Lines of Business? Do the objectives relate directly to the problem or opportunity? Is the relationship between the objectives and success criteria clearly defined? Are the risks too high, or the business value too low? Can senior management mitigate the identified risks? Project Management Certificate Program

Project Management Certificate Program POS Approval Team Leadership Assignments Can be used to “sell” the project to management and potential team members The POS should be used to gain project approval Project Manager should plan, implement and manage the project as defined in the POS Project Management Certificate Program

ASSIGNMENT # 2: Setting Up Teams and POS Statements Choose teams of x people. Team Rules: No individual project assignments Each team member must present at final presentation Determine project to work on. Develop a project notebook that demonstrates ability to use the tools and techniques learned from the Project Management Certificate Program. Demonstrate ability to work as a team. Write POS for project. 36 people: 6 teams 5 people, 1 team 6 people 33 people:: 5 teams, 5 5person teams, 2 4 person teams 34 students 6 teams 5, 1 team 4 Project Management Certificate Program

ASSIGNMENT # 2: Setting Up Teams and POS Statements Turn POS in by Session 4: 1) List of team members with email addresses 2) Name of project and names of team members 3) Provide 1 page typed POS statement following format provided (2 pages maximum). Use Word format provided on next page. 4) Provide POS via email to sweeneyphyllis@hotmail.com, by 4:00 p.m. the day of Session 4. Project Management Certificate Program

Project Overview Statement Project Name: Project Team Name and Members: Problem/Opportunity Overview: (Provide a short paragraph as to the problem/opportunity the project is addressing. Project Goal: (Clearly define the scope of the project) Business Case Justification: (Clearly define how the scope of the project will address the issue/opportunity at hand). Product Success Criteria: Sales of 50% share in the marketplace. Project Objectives: Assumptions: (include any project success criteria i.e. Timely approval by the Executive Sponsor will be provided within 48 hours of the request). Risks: Constraints: Project Management Certificate Program