2. Office of Innovations and Solution ACB-1 Project Management Principles and Practice for Managers Presented by: Pat A. Eigbe, PMP® Office of Innovations and Solutions, ATO-P February 17, 2004

3. Pat A. Eigbe, PMP ® 2 Briefing Outline  Project Management (PM) as a Tool  Project Management Terminology  PM Relationship to other Disciplines  Project Management Processes  Project Management Tools & Techniques  Summary/Conclusion  Questions

4. February 17, 2004 Pat A. Eigbe, PMP ® 3 Project Management as a Tool  Minimize Fire Drills  Efficient Use of Resources  Develop Better Metrics  On-time and On-budget Product Delivery  Apply Lessons Learned  Better Communications Between Stakeholders  Make Proactive Decisions

5. February 17, 2004 Pat A. Eigbe, PMP ® 4 Project Management (PM) Terms  Project - A temporary endeavor undertaken to create a unique product or service. a ATOP or VSCS - Project has a specific purpose with a start and an end date.  Project Management - the Application of Knowledge, Skills, Tools, and Techniques to Project Activities to Meet Project Requirements.

6. February 17, 2004 Pat A. Eigbe, PMP ® 5 Project Management Terms II  Program - A group of related projects managed in a coordinated way. Programs usually include an element of ongoing activity. a CPDLC, SMA, URET CCLD, pFAST,as FFP1 a PM Tools Development as part of Program Management  A Project/Program Manager (PM) - The Individual Responsible for Managing a Project/Program.

7. February 17, 2004 Pat A. Eigbe, PMP ® 6 Project Management Terms III  Work Breakdown Structure (WBS) - “A deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. Each descending level represents an increasingly detailed definition of a project work.

8. February 17, 2004 Pat A. Eigbe, PMP ® 7 Project Management Terms IV  FAA standard wbs1-0.ppt FAA standard wbs1-0.ppt  WBS Dictionary 3.1 WBS Dictionary 3.1  Requirement to use FAA Standard WBS – Mandatory

9. February 17, 2004 Pat A. Eigbe, PMP ® 8 Project Management Terms V  Deliverable – Tangible, verifiable work product or service.  Work Package – A deliverable at the lowest level of the work breakdown structure. A work package may be divided into activities.  Activity - Work elements with expected duration, cost, & resources that may be subdivided into tasks.

10. February 17, 2004 Pat A. Eigbe, PMP ® 9 Project Management Terms – VI  Stakeholder – Individuals or Organizations that will be Impacted by the Outcome of a Project.  OBS: An Organizational Chart Relating Work Packages to Organization Units.  Responsibility Matrix: Relates Organization Structure to WBS & Ensures that each Element of the Project’s Scope is Assigned to a Responsible Individual(s).

11. February 17, 2004 Pat A. Eigbe, PMP ® 10 Project Management: Relationship to Others Disciplines Project Management Knowledge and Practice General Management Knowledge and Practice Application Area Knowledge and Practice The PMBOK ™ Figure is conceptual and overlaps are NOT proportional

12. February 17, 2004 Pat A. Eigbe, PMP ® 11 Systems Engineering/PM Relationship – I  PM Needs SE for a Integrated PM System Design a Requirements for HW and SW Tools  SE Needs PM for a Planning and tracking a Managing Resources  PM System Designer Must Understand both  SE Not Necessary for PM Practitioners

13. February 17, 2004 Pat A. Eigbe, PMP ® 12 Systems Engineering/PM Relationship - II  Risk Management a PM - Schedule, Cost & Technical/Quality a SE – Compatibility of Components of a System or Sub-System  Quality Management a PM - Process for Producing the Product a SE - Ensure Product Meets the Quality Specifications

14. February 17, 2004 Pat A. Eigbe, PMP ® 13 Systems Engineering/PM Relationship - III  Configuration Management a PM - Ensure Integrity of Schedule and System for Schedule Management a SE - Ensure Integrity of the System as Designed  Change Management a PM - Changes to Project Scope a SE - Changes to System Requirement  Measurement a PM – Program cost & schedule performance a SE – Technical Performance

15. February 17, 2004 Pat A. Eigbe, PMP ® 14 PMI Certification  What is PMP ®  What PMP ® is not  PMP ® Value to Holder & Employer  PMP ® Certification Process link – visit  http://pm.act.faa.gov http://pm.act.faa.gov

16. February 17, 2004 Pat A. Eigbe, PMP ® 15 PM Process Groups Initiating Processes Planning Processes Control Processes Executing Processes Closing Processes Project Information Flow

17. February 17, 2004 Pat A. Eigbe, PMP ® 16 PM Process Flow

18. February 17, 2004 Pat A. Eigbe, PMP ® 17 Initiation Processes  Identify project and sponsor  Appoint Project Manager  Train team on a Project Management Process a Project Plan (PMIP)  Develop Program Directive to Include a WBS that Covers the Scope a High-level Milestones a Budget resources

19. February 17, 2004 Pat A. Eigbe, PMP ® 18 Planning Processes I  Identify Life Cycle approach a Evolutionary (AMS 6101, Section 2.2) a Incremental a Waterfall  Risk Management plan

20. February 17, 2004 Pat A. Eigbe, PMP ® 19 Planning Processes II  Get approval for Program Directive  Identify quality standards - use specs, IEEE, ISO, PMBOK ®  Organizational structure  Communications - who needs, what  Acquire human resources for projects

21. February 17, 2004 Pat A. Eigbe, PMP ® 20 Planning Processes III (Schedule Development)  Update & Decompose WBS  Identify activities  Sequence  Estimate duration  Estimate cost  Allocate resources to work packages  Baseline schedule

22. February 17, 2004 Pat A. Eigbe, PMP ® 21 Planning Processes IV  Risk management detail: a Identification a Analysis a Response a Procurement

23. February 17, 2004 Pat A. Eigbe, PMP ® 22 Implementation/Execution Processes  Use the PMIP to execute project activities  Assess Technical Performance to assure product acceptance  Distribute project information  Make purchases  Develop team skills/competencies  Develop a Change Management plan

24. February 17, 2004 Pat A. Eigbe, PMP ® 23 Performance Measurement Tools  Variances  Performance Indices a Schedule performance Index (SPI) a Cost performance Index (CPI)  Earned Value Management System (EVMS)

25. February 17, 2004 Pat A. Eigbe, PMP ® 24 Earned Value Management System Highlights  What is EVMS  Planning for EVMS  Tracking & Analysis  Elements of EV Analysis  Project Cost & Schedule Forecasting  EV Reporting

26. February 17, 2004 Pat A. Eigbe, PMP ® 25 Earned Value Management System (EVMS) - I  EV - Tool for Measuring Project Performance  Integrates Cost, Scope & Schedule measurements  Compares work actually accomplished to work planned  EV is an Early Warning System  Helps management make proactive decisions to keep projects on course

27. February 17, 2004 Pat A. Eigbe, PMP ® 26 Earned Value Management System (EVMS) - II  Involves Calculating 3 key Elements a Budget - BCWS a Actual Cost - ACWP a Earned Value/Physical Progress - BCWP  Basis for variance analysis

28. February 17, 2004 Pat A. Eigbe, PMP ® 27 Planning for EVMS - I  Create a work breakdown structure  Organize work into discrete work packages and activities  Allocate a budget to each of the activities  Develop a schedule and Assign resources  Must include all project work in the schedule  Establish the Project Baseline

29. February 17, 2004 Pat A. Eigbe, PMP ® 28 Planning for EVMS - II  Award performance credit for physical % complete:  0-100 a Short duration tasks < 160 hours a EV is Zero until activity is complete  50-100 a Duration less than 600 hours a 50% at start of activity & 50% at completion

30. February 17, 2004 Pat A. Eigbe, PMP ® 29 Planning for EVMS - III  Interim milestone; a Duration less than 600 hours a Based on completed milestone for task  Level of Effort (LOE) a Long duration & consistent tasks a Difficult to measure - no tangible deliverables a Measured by duration of time used e.g. 10 weeks support is 50% complete at 5 weeks

31. February 17, 2004 Pat A. Eigbe, PMP ® 30 Tracking & Analysis  Each update cycle/Reporting Period: a Obtain physical % complete for each task a Calculate EV for each task a Sum up EV for all tasks as project EV a Calculate actual expenditure for actual work completed during the period a Compare the Cumulative EV to Actual expenditure

32. February 17, 2004 Pat A. Eigbe, PMP ® 31 Elements of EV Analysis - I  Performance indices relate value of work performed to dollar spent. e.g. CPI = 0.65 means that for every dollar spent, actual value of the work performed is $0.65.  Cumulative CPI used to forecast project cost at completion  Cumulative SPI used to forecast project completion date

33. February 17, 2004 Pat A. Eigbe, PMP ® 32 Elements of EV Analysis - II  Cost Variance - Difference between budgeted cost of an activity & actual cost of that activity a CV = EV - ACWP  Schedule Variance - Difference between scheduled completion & actual completion of an activity a SV = EV - BCWS

34. February 17, 2004 Pat A. Eigbe, PMP ® 33 Elements of EV Analysis - III  SPI – EV/Planned Value  SPI => 1.0, Project Schedule performing as planned or better  SPI < 1.0, Project not performing as planned - needs help

35. February 17, 2004 Pat A. Eigbe, PMP ® 34 Elements of EV Analysis - IV  CPI – EV/Actual Cost  CPI => 1.0, Project Cost performing as planned or better  CPI < 1.0, Project Cost not performing as planned - needs help  % Over/Under Budget = CAC - BCWS

36. February 17, 2004 Pat A. Eigbe, PMP ® 35 Project Cost & Schedule Forecast Methods  Estimate at Completion (EAC) is total cost to complete an activity, work package, or a project expressed as: a EAC = Actuals-to-date + Estimate to complete (ETC)  Cost EAC = BAC/CPI

37. February 17, 2004 Pat A. Eigbe, PMP ® 36 EV Reporting  Interpret the output of EV calculations  Take corrective action as necessary  Recommend or take corrective action as necessary

38. February 17, 2004 Pat A. Eigbe, PMP ® 37 Control Processes I  Coordinate and control changes to project a scope/requirements a schedule a budget  Monitor and manage product quality  Measure progress and report performance

39. February 17, 2004 Pat A. Eigbe, PMP ® 38 Control Processes II  Monitor and control risks a keep track of identified risks a monitor residual risks a identify new risks a ensure execution of risk plans a assess effectiveness in reducing risk

40. February 17, 2004 Pat A. Eigbe, PMP ® 39 Closing Processes  Close out contracts  Resolve any outstanding issues  Document lessons learned  Evaluate project  Archive all project documents

41. February 17, 2004 Pat A. Eigbe, PMP ® 40 Conclusion  Defined Frequently used PM Terminologies  Discussed Objectives of Adopting Project Management Principles.  Discussed PM Processes, Tools & Techniques  Discussed EVMS Overview  Questions

42. February 17, 2004 Pat A. Eigbe, PMP ® 41 References  Project Management Institute (PMI), 2000. A Guide to the Project Management Body of Knowledge (the PMBOK ® Guide)  Stratton R. W., 1999. Improving SPI and CPI Calculations on LOE Heavy Programs, Proceedings of the 30th Annual PMI Seminars & Symposium  Fleming and Koppeman, 1996. Earned Value Project Management.  Ibbs W & Reginato J., 2002. Quantifying the Value of Project Management  Kerzner H, 2003. Project Management: A Systems Approach to Planning, Scheduling, and Controlling.  FAST @ http://fast.faa.gov/wbs/wbssec.htmhttp://fast.faa.gov/wbs/wbssec.htm

43. February 17, 2004 Pat A. Eigbe, PMP ® 42 Questions/Need Help? http://pm.act.faa.gov http://pm.act.faa.gov Pat A. Eigbe, PMP ® Ext. 5-7857 patrick.eigbe@faa.gov