1. prepared by Raida Al-Awamleh 1 Project Management Training Program June 24 th -28 th,2006

2. prepared by Raida Al-Awamleh 2 Outline  What is Project Management ?  Why do we need to do Project Management?  How do we intend to do Project Management?  The Importance Of Project Management.  Project Planning  The Project Manager  Work Breakdown Structure  Project Scheduling  Project Controlling

3. prepared by Raida Al-Awamleh 3 Outline - Continued  Project Management Techniques: PERT And CPM  The Framework of PERT and CPM  Network Diagrams and Approaches  Activity on Node Example  Determining the Project Schedule  Calculating Slack Time and Identifying the Critical Path(s)

4. prepared by Raida Al-Awamleh 4 Outline - Continued  Project Human Resources Management  Risk Management  Project Reporting

5. prepared by Raida Al-Awamleh 5 What is a project?  A Project is a temporary endeavor undertaken to create a unique product or service.  Temporary  Unique

6. prepared by Raida Al-Awamleh 6 Project characteristics Project characteristics  Endeavors of any size may be a project  Large and small projects demand different handling  Temporary  Distinguishes projects from operations  Unique  Not the same old thing

7. prepared by Raida Al-Awamleh 7 What is not a project?  Emergency response to operations problems  Callouts  Repairs and troubleshooting  Routine operations support  Maintenance of equipment  Minor modifications and tuning of equipment

8. prepared by Raida Al-Awamleh 8 What is project management?  The management of projects (Well!)  A more academic, if not more useful, definition:  The application of knowledge, tools, skill, and techniques to project activities in order to meet project requirements

9. prepared by Raida Al-Awamleh 9 Why do we need to do this?  Budgeting  Staff allocation  Schedule development  Schedule credibility  Sanity retention  Reporting what we are doing to the Project management as well as the progress.

10. prepared by Raida Al-Awamleh 10  Building construction © 1995 Corel Corp.  An Example

11. prepared by Raida Al-Awamleh 11  Research project © 1995 Corel Corp. An Example

12. prepared by Raida Al-Awamleh 12 I Can’t Wait! When can we start?

13. prepared by Raida Al-Awamleh 13 Management of Large Projects  Planning - goal setting, project definition, team organization  Scheduling - relating people, money, and supplies to specific activities and activities to one and other  Controlling - monitoring resources, costs, quality, and budgets; revising plans and shifting resources to meet time and cost demands

14. prepared by Raida Al-Awamleh 14 Planning l Objectives l Resources l Work break- down schedule l Organization Scheduling l Project activities l Start & end times l Network Controlling l Monitor, compare, revise, action Project Management Activities

15. prepared by Raida Al-Awamleh 15 Project Organization Works Best When  Work can be defined with a specific goal and deadline  The job is unique or somewhat unfamiliar to the existing organization  The work contains complex interrelated tasks requiring specialized skills  The project is temporary but critical to the organization

16. prepared by Raida Al-Awamleh 16 Project Planning, Scheduling, and Controlling Project Planning 1. Setting goals 2. Defining the project 3. Tying needs into timed project activities 4. Organizing the team Project Scheduling 1. Tying resources to specific activities 2. Relating activities to each other 3. Updating and revising on a regular basis Time/cost estimates Budgets Engineering diagrams Cash flow charts Material availability details CPM/PERT Gantt charts Milestone charts Cash flow schedules Project Controlling 1. Monitoring resources, costs, quality, and budgets 2. Revising and changing plans 3. Shifting resources to meet demands Reports budgets delayed activities slack activities Before Project During Project

17. prepared by Raida Al-Awamleh 17 Project Planning, Scheduling, and Controlling

18. prepared by Raida Al-Awamleh 18  Establishing objectives  Defining project  Creating work breakdown structure  Determining resources  Forming organization © 1995 Corel Corp. Project Planning

19. prepared by Raida Al-Awamleh 19  Often temporary structure  Uses specialists from entire company  Headed by project manager  Coordinates activities  Monitors schedule & costs  Permanent structure called ‘matrix organization’ © 1995 Corel Corp. Project Organization

20. prepared by Raida Al-Awamleh 20 A Sample Project Organization Sales President Finance Human Resources Engineering Quality Control Production Technician Test Engineer Propulsion Engineer Physiologist Project Manager Psychologist Structural Engineer Inspection Technician Project 1 Project 2 Project Manager

21. prepared by Raida Al-Awamleh 21 A Sample Project Organization Sales Finance Human Resources Engineering Quality Control Production Test Engineer Propulsion Engineer Technician Project 1 Project 2 Project Manager Technician Project Manager Structural Engineer Inspection Technician President

22. prepared by Raida Al-Awamleh 22 The Role of the Project Manager Project Plan and Schedule Revisions and Updates Project Manager Project Team Top Management Resources Performance Reports Information regarding times, costs, problems, delays Feedback Loop

23. prepared by Raida Al-Awamleh 23 Work Breakdown Structure  1.Project  2. Major tasks in the project  3.Subtasks in the major tasks  4. Activities (or work packages) to be completed

24. prepared by Raida Al-Awamleh 24 A sample Work Breakdown Structure Serve Pizzas to Customers Provide the PlaceCook the FoodServe Customers (Others) Cook the SauceMake the DoughBuild the Pizza

25. prepared by Raida Al-Awamleh 25  Identifying precedence relationships  Sequencing activities  Determining activity times & costs  Estimating material & worker requirements  Determining critical activities © 1995 Corel Corp. J F M A M J J Month Activity Design Build Test PERT Project Scheduling

26. prepared by Raida Al-Awamleh 26 Purposes of Project Scheduling  Shows the relationship of each activity to others and to the whole project.  Identifies the precedence relationships among activities.  Encourages the setting of realistic time and cost estimates for each activity.  Helps make better use of people, money, and material resources by identifying critical bottlenecks in the project.

27. prepared by Raida Al-Awamleh 27  Gantt chart  Critical Path Method (CPM)  Program Evaluation & Review Technique (PERT) © 1984-1994 T/Maker Co. Project Management Techniques

28. prepared by Raida Al-Awamleh 28 JFMAMJJ Time Period Activity Design Build Test Gantt Chart

29. prepared by Raida Al-Awamleh 29 Service Activities for A Delta Jet During a 60 Minute Layover

30. prepared by Raida Al-Awamleh 30 Project Control Reports  Detailed cost breakdowns for each task  Total program labor curves  Cost distribution tables  Functional cost and hour summaries  Raw materials and expenditure forecasts  Variance reports  Time analysis reports  Work status reports

31. prepared by Raida Al-Awamleh 31  Network techniques  Developed in 1950’s  CPM by DuPont for chemical plants (1957)  PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958)  Consider precedence relationships and interdependencies  Each uses a different estimate of activity times PERT and CPM

32. prepared by Raida Al-Awamleh 32  Is the project on schedule, ahead of schedule, or behind schedule?  Is the project over or under cost budget?  Are there enough resources available to finish the project on time?  If the project must be finished in less than the scheduled amount of time, what is the way to accomplish this at least cost? Questions Which May Be Addressed by PERT & CPM

33. prepared by Raida Al-Awamleh 33 The Six Steps Common to PERT & CPM © Define the project and prepare the work breakdown structure, © Develop relationships among the activities. (Decide which activities must precede and which must follow others.) © Draw the network connecting all of the activities © Assign time and/or cost estimates to each activity © Compute the longest time path through the network. This is called the critical path © Use the network to help plan, schedule, monitor, and control the project

34. prepared by Raida Al-Awamleh 34 A Comparison of AON and AOA Network Conventions

35. prepared by Raida Al-Awamleh 35 Milwaukee General Hospital’s Activities and Predecessors ActivityDescriptionImmediate Predecessors ABuild internal components- BModify roof and floor- CConstruct collection stackA DPour concrete and install frameA, B EBuild high-temperature burnerC FInstall pollution control systemC GInstall air pollution deviceD, E HInspect and testF, G

36. prepared by Raida Al-Awamleh 36 AON Network for Milwaukee General Hospital Start A B C D F F G H Arrows show precedence relationships

37. prepared by Raida Al-Awamleh 37 1 3 24 5 67 H Inspect/Test G Install pollution control device D Pour concrete/ Install frame B Modify roof/floor C Construct stack F Install controls E Build burner AOA Network (With Dummy Activities) for Milwaukee General A Build internal components Dummy Activity

38. prepared by Raida Al-Awamleh 38  Provides activity information  Earliest (ES) & latest (LS) start  Earliest (EF) & latest (LF) finish  Slack (S): Allowable delay  Identifies critical path  Longest path in network  Shortest time project can be completed  Any delay on critical path activities delays project  Critical path activities have 0 slack Critical Path Analysis

39. prepared by Raida Al-Awamleh 39  Begin at starting event and work forward  ES = 0 for starting activities  ES is earliest start  EF = ES + Activity time  EF is earliest finish  ES = Maximum EF of all predecessors for non- starting activities Earliest Start and Finish Steps

40. prepared by Raida Al-Awamleh 40  Begin at ending event and work backward  LF = Maximum EF for ending activities  LF is latest finish; EF is earliest finish  LS = LF - Activity time  LS is latest start  LF = Minimum LS of all successors for non- ending activities Latest Start and Finish Steps

41. prepared by Raida Al-Awamleh 41 Latest Start and Finish Steps Latest Finish ES LS EF LF Earliest Finish Latest Start Earliest Start Activity Name Activity Duration

42. prepared by Raida Al-Awamleh 42 Critical Path for Milwaukee General Hospital Start A B C D F F G H Arrows show precedence relationships

43. prepared by Raida Al-Awamleh 43 AON Network for Milwaukee General Hospital Includes Critical Path Slack=0 Start A B C D F F G H H 13 2 15 H G 8 8 5 13 H F 4 10 3 7 13 H C 2 2 2 4 4 H E 4 4 4 8 8 H D 3 4 4 7 8 H B 0 1 3 3 4 H A 0 0 2 2 2 H 0 0 0 0 0 Slack=0 Slack=6 Slack=1 Start

44. prepared by Raida Al-Awamleh 44 Gantt Chart Earliest Start and Finish Milwaukee General Hospital A Build internal components B Modify roof and floor C Construct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test 1 2 3 4 5 6 7 8 9 10 1112 13 1415 16

45. prepared by Raida Al-Awamleh 45 Gantt Chart Latest Start and Finish Milwaukee General Hospital A Build internal components B Modify roof and floor C Construct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test 1 2 3 4 5 6 7 8 9 10 1112 13 1415 16

46. prepared by Raida Al-Awamleh 46 1-2 Fdn & frame 1-3 Buy shrubs 2-3 Roof 2-4 Interior work 3-4 Landscape 4 4 5 5 6 6 7 7 8 8 9 9 1 1 0 0 1 1 1 1 1 1 2 2 3 3 2 2 1 1 Activity Build House Project Gantt Chart Latest Start and Finish

47. prepared by Raida Al-Awamleh 47  3 time estimates  Optimistic times ( a )  Most-likely time ( m )  Pessimistic time ( b )  Follow beta distribution  Expected time: t = ( a + 4 m + b )/6  Variance of times: v = ( b - a ) 2 /6   PERT Activity Times

48. prepared by Raida Al-Awamleh 48  Expected project time ( T )  Sum of critical path activity times, t  Project variance ( V )  Sum of critical path activity variances, v Used to obtain probability of project completion! Project Times

49. prepared by Raida Al-Awamleh 49 Factors to Consider when Crashing  The amount by which an activity is crashed is, in fact, permissible.  Taken together, the shortened activity durations will enable one to finish the project by the due date.  The total cost of crashing is as small as possible.

50. prepared by Raida Al-Awamleh 50 Steps in Project Crashing  Compute the crash cost per time period. For crash costs assumed linear over time:  Using current activity times, find the critical path  If there is only one critical path, then select the activity on this critical path that (a) can still be crashed, and (b) has the smallest crash cost per period. Note that a single activity may be common to more than one critical path  Update all activity times.

51. prepared by Raida Al-Awamleh 51 Crash and Normal Times and Costs for Activity B

52. prepared by Raida Al-Awamleh 52 Cost-Time Curves Used in Crashing Analysis

53. prepared by Raida Al-Awamleh 53 Advantages of PERT/CPM  Especially useful when scheduling and controlling large projects.  Straightforward concept and not mathematically complex.  Graphical networks aid perception of relationships among project activities.  Critical path & slack time analyses help pinpoint activities that need to be closely watched.  Project documentation and graphics point out who is responsible for various activities.  Applicable to a wide variety of projects.  Useful in monitoring schedules and costs.

54. prepared by Raida Al-Awamleh 54  Assumes clearly defined, independent, & stable activities  Specified precedence relationships  Activity times (PERT) follow beta distribution  Subjective time estimates  Over-emphasis on critical path Limitations of PERT/CPM

55. prepared by Raida Al-Awamleh 55 Project Human Resources Management In order to acquire the staff necessary to complete the Project, the project manager will do the following:  Meet with the managers for the areas of responsibility and confirm resource availability.  Discuss the responsibility assignment matrix, project organization chart and reporting structure. Identify the appropriate resources.  Distribute a copy of the project plan and resource usage sheet to describe resource utilization.  Obtain agreement from the managers to commit the required resources based on the project plan, for the duration of the project and adhere to the Project Organization chart.  Meet with the XYZ division to review the Project.  Obtain commitment from the XYZ division and functional managers, that if functional managers require resources to be taken off a project or “traded” that it will be discussed with the project manager before any changes are made. Any changes to the project must be signed off by the project manager and approved by the project sponsor.

56. prepared by Raida Al-Awamleh 56 Project Human Resources Management Things to consider when determining resource allocation for the Project.  Special consideration such as statutory holidays, resource constraints, critical resources in other projects etc.

57. prepared by Raida Al-Awamleh 57 Communications Management Plan  Stakeholder Analysis The following table outlines the stakeholders within the project, and their project expectations.

58. prepared by Raida Al-Awamleh 58 Communications Strategy  Communications Strategy A communications strategy outlines the communication methods to be used during the project to ensure all stakeholders are informed about the project and have the information they may need to carry out project activities.

59. prepared by Raida Al-Awamleh 59 Project Communication Requirements List specific stakeholders and their communication requirements. Also list who is responsible for providing is responsible for providing that communication. The table has been filled in with some basic information.

60. prepared by Raida Al-Awamleh 60 Risk Management within Projects Overview  Project Risk Management consists of 5 major activities that occur within the project planning, executing and controlling phases of a project. It should be setup as a continuous process of problem identification and resolution so that the system supplements other project management processes such as budgeting and scheduling 1. Create a Risk Management Plan  How will risks be identified, managed, prevented, responded to and  tracked within your project. 2. Complete the Risk Identification template  Identify all potential risks that could impact your project and the  triggers that occur to indicate the risk is about to occur. 3. Analyze the identified Risks  Assign a priority to the identified risks based on their impact to various project factors such as cost, schedule, or performance. 4. Create a Risk Response Plan  Determine the response strategy to be used if a particular risk occurs. 5. Monitor and Control Risks  Implement strategies based on the Risk Management Plan within the project to control risks including documentation, and resolution management.

61. prepared by Raida Al-Awamleh 61 What is a risk?  An uncertainty  Results from a lack of knowledge about future events  Generally a negative event (positive possibilities are opportunities)  Has three main components and is therefore a function of all three:  Event – what might happen that will impact the project objectives?  Occurrence probability- how likely is the event to occur  Impact – how serious will the effects be

62. prepared by Raida Al-Awamleh 62 “We have lots of information technology. We just don’t have any information.”

63. prepared by Raida Al-Awamleh 63 Risk Plan

64. prepared by Raida Al-Awamleh 64 Project Status Report

65. prepared by Raida Al-Awamleh 65 Project Status Report

66. prepared by Raida Al-Awamleh 66 Project Status Report

67. prepared by Raida Al-Awamleh 67

68. prepared by Raida Al-Awamleh 68 Thank You !