1. Project Management for Your Local Section / Chapter Lee Stogner, PMP
2005 Leadership Workshop
Tucson, Arizona
March 12, 2005

2. Seminar Objectives

3. Benefits of Sound Project Management
Less overall project cost
Less strain on working capital
Effective use of resources
More timely project completion
Higher quality of the final product

4. Project Management Overview
What is a project?
What is project management?
What is project success?
What factors determine project success?

5. A Project When a task... Has a defined objective Has a deadline
Requires integration of knowledge and experience from various organizations

6. Project Management is:PM PM PM PM
Project Management is: PM PM PM PM PM PM PM PM PM PM PM PM PM

7. Project Management is: Causing a Planned Undertaking to HappenPM PM PM PM
Project Management is: Causing a Planned Undertaking to Happen PM PM PM PM PM PM PM PM PM PM PM PM PM

8. Project Management Complex and numerous activities
Unique - a one time set of events
Finite - a begin and end date
Limited resources and budget
Many people involved
Sequenced activities
End product or service must result

9. Program Management Larger in scope than a project
Made up of several projects
Made up of a number of similar products
Programs tend to be more permanent

10. Peanuts

11. What is Project Success?

12. Factors in Project Success
Project Management Philosophy
Project Management Role and Responsibility
Project Management Principles and Practices

13. Project Management Philosophy
The “Golden Rule” of Project Management is three words:
Plan
Organize
Control

14. Project Management Roles and Responsibilities
Project Execution
Maintain Customer Relations
Create a Positive Environment

15. Project Execution Plan
Project Execution Strategy
Project Management
Quality
Safety
Risk Management
Design/Develop/Program
Implementation
Documentation
Training
Project
Execution
Plan

16. Customer Relations Develop Communication Ensure Timely Participation
Include the Customer on the Project Team
Develop Trust and Confidence

17. Create a Positive Environment
__________ Effectively
__________ Member of the Team
Utilize _______ _______ Activities
__________ Success

18. Maintain a safe working environment
Safety

19. Project Management Principles and Practices
Define Project Objectives
Develop Project Execution Plan
Define Baselines for Control
Manage Risk
Close out Effectively

20. Define Project Objectives
Expected deliverables
Required resources (total installed cost)
Required timing (opening date)
Safety and Environmental
Total Quality

21. Define S.M.A.R.T. Project Objectives
S pecific
M easurable
A ssignable
R ealistic
T ime related

22. Alignment Process

23. Team Requirements Skills needed ? Individuals identified ?
When are they needed ?
Where are they ?
Training needed ?
Interpersonal compatibility ?

24. The Four Cornerstones of Project Management
Cost
Schedule
Quality
Scope

25. Cornerstones of Project Management
Cost
Schedule
Scope
Quality

26. Scope Poor scope definition is the major contributing factor to cost overruns in the engineering and construction industry.
CAUTION

27. Cost Influence Relative Time

28. Initial Scoping Effort
Sets the baseline for cost and schedule
Must involve the right people
Must include implementation
Identifies items not included
Maximum influence on project cost
Breaks project into manageable pieces

29. The WBS $ WBS Element/ Work Package Drawings Estimate • Facility Billof
Materials
• Services
WBS Element/
Work Package
Schedule
Cost
Reports
Contracts

30. Successful Work Breakdown
Status and completion is easily measured
Definite beginning and end
It is familiar with prior experience
Manageable work assignments
One continuous stream of work from start to finish

31. Steps for constructing a WBS
Divide the project into major objectives
Partition objectives into activities
Divide activities with missing characteristics into subactivities
Repeat #3 until all subactivities have desired characteristics
Lowest subactivities are the basis of work packages

32. The effect of “creeping scope” is a major cause of cost overruns$

33. To manage creeping scope
Keep scope documents current
Freeze design after the estimate has been approved
Allow only those changes that are justified by benefit
Use an effective change management procedure

34. The Four Commandments of Good Project Scope
Written
Well defined
Clearly understood
Achievable

35. Cornerstones of Project Management
Cost
Schedule
Quality
Scope

36. Aspects of Cost Estimate Basis for Control
Cost Control Application of control procedures to follow financial progress

37. Estimate Requirements
Define project cost integrate scope, schedule, and resources
Define estimate basis
Identify potential risks
Identify contingency/escalation
Identify items not included

38. Elements of Cost Control
Establish the baseline (estimate)
Measure variation from baseline
Take corrective action

39. Cost Control System Detailed project scope/work package
Control estimate
Chart of accounts
Cost status report
Forecasting process
Change management procedure
Cash flow forecast

40. Project Control Project Day 1 -------------- To do list:
Kick off meeting
Project schedule

41. Integration of Cost and Time

42. Basic Elements of the Control System
A project plan: Scope, schedule, estimates
A monitoring system which measures performance against plan
A reporting system which identifies deviations from the plan
A system which communicates deviations to the right people
Corrective actions
Forecasting the project outcome

43. Key Control Philosophies
Define the baseline for control _______ ________ 3. _______ 4. ________
Divide project into manageable pieces
Remember: Ability to influence cost is maximum early in the project
Project
Success

44. Key Control Philosophies (con’t)
Project
Success
Define and manage risk/opportunity
Integrate scope and estimated cost into schedule
Make informed decisions
Anticipate deviations/changes
Adopt the “end product” approach
Plan ahead from phase to phase

45. Basic Project Control Steps
Define the project scope
Develop a project plan consistent with:
project scope
estimates (cost constraints)
schedule (constraints
resources available
Report progress and compare with budget and forecast
Control by taking corrective action

46. Contingency - Plan for Change

47. Cornerstones of Project Management
Schedule
Cost
Quality
Scope

48. Schedule
Planning - Identification of the sequence of events necessary to complete the project
Scheduling - Determination of timing and assembly of project activities to give overall completion time

49. Front End Schedule A way to get the project started right Design
Program
Install / Test
System Turnover

50. Basis for Project Schedule
Project objectives
Project scope
Project milestones
Project estimate (budget)
Resource availability

51. The Critical Path Identifies project priorities
Shows activity relationships
Enables schedule analysis
Reflects project strategy
Promotes teamwork

52. Basic Network Diagramming

53. Expanded Network Diagramming

54. The Bar Chart

55. The Gantt Chart

56. Project Schedule - Tools
Microsoft Project

57. Project Schedule - Tools

58. Five Phases of Project Management

59. Cornerstones of Project Management
Cost
Schedule
Quality
Scope

60. Total Project Quality Management
Quality Assurance
Total Project
Quality
Management
Quality
Control
Design
Basis
Continuous Improvement

61. Project Quality Improvement
Develop a quality management plan early in the project
Include representatives from all affected organizational units on the project team
Initiate the project effectively through kick-off and alignment meetings
Review performance and measure success

62. Project Quality Improvement (con’t)
Define scope and review periodically
Limit scope changes formal change procedure require justification
Complete more engineering up-front before defining cost and scheduling
Obtain constructability, operability and maintainability input to design

63. Cost of Quality

64. Risk Management

65. Manage Risk What is risk? Sources of risk Kinds of risk
Risk Management Process
Identify risks
Define consequences
Develop a mitigation plan
Document

66. Sources of Risk
Technical
Financial
Socio-Economic
Contractual

67. Risk Management Process
Identify Risk
Analyze Risk
Respond to Risk
Document Risk

68. Sources of Help to Identify Risk
Site investigations
Contract documents
Schedule
Team brainstorming
Body of experience

69. Risk Control Methods Avoid Reduce Share Insure Accept Contain
with contingency
without contingency
Contain

70. Risk Containment
Clearly define insurance responsibilities in contracts
Use qualified personnel
Document and communicate project strategy
Define roles and responsibilities
Prepare contingency plans for critical activities
Use up-front team building

71. Risk Containment (con’t)
Use qualifies contractors and vendors
Preconstruction work briefings (especially safety)
Rehearse critical activities or use mock-ups
Use strong project control systems
Manage contingency

72. Project Close-out

73. Project Closeout - Major Phases
Obtain client acceptance
Document the project
Conduct the post implementation audit
Issue the final report

74. Pyramid Cartoon

75. Plan the Work… Work the Plan
Successful Project Management
Plan the Work… Work the Plan
Project
Execution
Plan

76. Successful Project Completion

77. Project Management - Learning More

78. Project Management - Learning More
Project Management Body of Knowledge

79. Project Management - Learning More

80. Project Management - Get Certified

81. Project Management - IEEE EMS

82. Class Exercise - Plan a Project

83. Lee Stogner - Contact Information
Lee Stogner, PMP
Rockwell Automation
Mobile