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

2. 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.

3. 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

4. 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.

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

6. 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

7. 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

8. 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

9. 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

10. 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).

11. Typical Project Constraints

12. 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

13. 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

14. 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).

15. PMBOK® Guide Framework

16. 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

17. 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.

18. 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

19. 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

20. 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

21. 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

22. Project Builder

23. 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.

24. 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

25. Hierarchical Breakdown of the WBS

26. 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)

27. 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

28. 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.

29. 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.

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. Dependency Types

37. 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.

38. 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.

39. 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.

40. 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.

41. 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.

42. 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.

43. 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.

44. 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.

45. 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.

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

47. 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

48. The Quadruple Constraint

49. 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)

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

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