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Study Unit 1 – Intro to project managementPMBOK = Project Management Body of KnowledgeBenefits of project management Better efficiency in delivering services. Improved/Increased/Enhanced customer satisfaction. Enhanced effectiveness in delivering services. Improved growth and development within your...

Description

Study Unit 1 – Intro to project management PMBOK = Project Management Body of Knowledge Benefits of project management 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Better efficiency in delivering services. Improved/Increased/Enhanced customer satisfaction. Enhanced effectiveness in delivering services. Improved growth and development within your team Greater standing and competitive edge Opportunities to expand your services. Better flexibility Increased risk assessment Increase in quality. Increase in quantity.

What is a project?  A project is a temporary endeavour undertaken to create a unique product, service, or result. Characteristics of a project  A project has a definitive start and end date because a larger part of the project is dedicated to ensuring that the project is completed at as specific time. Triple constraint of project management  Scope, Time, Cost  to deliver quality and performance. Scope creep  Uncontrollable changes or continuous growth in a project’s scope. -

happens when a project is not clearly defined, documented, or controlled. It is a risk as it often results in cost overruns. More time and cost would be invested in a project without providing any additional benefits to the customer. To combat scope creep, we can use project scope definition document

Project Lifecycle

The level of effort for each stage varies on given project requirements Defining Stage -

Specification of the project is defined Project objectives are established Teams are formed Major responsibilities are assigned

Planning Stage -

Level of effort increases Plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained, and what the budget will be

Executing Stage -

A major portion of the project work takes place at this phase The product is produced Time, cost, and specification measures are used for control

Closing Stage -

Delivering the project product to the customer Redeploying project resources Post project review

Strategy is implemented through projects. Every project should have a clear link to the organisation’s strategy. -

Strategy is fundamentally guiding a company on how it wants to compete Organisation leverage projects to convert business strategy into new products, solution, services, and processes to ensure business success

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Aligning projects with strategic goals of the organisation is critical for project success

Why PM need to understand strategy 1. To make appropriate decisions and adjustments a. Understand company’s strategic concerns b. Steer project towards meeting the strategic objectives of the company (e.g. Authorise overtime is the company is focused on getting to market first) 2. To be effective project advocates a. Demonstrate to management how your project will contribute to company mission b. Ensure continual support from management towards project initiatives c. Get buy-in from team member as well

Strategic Management Process -

The process of assessing the organisation’s current state And deciding a future state Then formulating and implementing plans to get to this desired state

Review and define organisational mission Analyse and formulate strategies Set objectives to achieve strategy Execute strategies through projects

Study Unit 2 – Project Initiation Organisation: Structure and Culture 1. Functional 2. Projectized (Dedicated Project) 3. Matrix a. Weak Matrix b. Balanced Matrix c. Strong Matrix Functional – Weak Matrix – Balanced Matrix – Strong Matrix – Projectized Matix Functional Structure

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Manage project based on the functional hierarchy of the organisation When a project is started, different segments of project are delegated and assigned to respective functional units Each unit will be responsible to complete its portion of the project Advantages o No change – in the design and operation o Flexibility – in the use of manpower o In-Depth Expertise – to work on most important parts o Easy post-project transition – to maintain normal career paths and duties Disadvantages o Lack of focus o Poor integration o Lack of speed

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Lack of ownership

Projectized (dedicated teams)

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Opposite of functional organisation These project team function as separate units from the rest of the parent organisation Usually, a full-time project manager will be assigned to lead the team of dedicated specialists who will work full-time on the project Advantages o Simple – functional organisation remains intact o Relatively fast – tendency to be completed more quickly o Cohesive – response times are generally shorter o Cross-Functional Integration – specialists from different areas of work closely together and, with proper guidance, become committed to optimising the project, and not their respective area of expertise Disadvantages o Expensive o Internal strife o Limited technological expertise o Difficult post project transition Examples of projectized structure o COVID-19/Disaster/Pandemic task force – there is an urgency and time criticality o Building an oil rig – limited to geographical constraints o North-pole expedition/space mission

Matrix - A hybrid form where horizontal PM structure is applied onto normal functional hierarchy. - Two chains of command o Command along the functional lines o Command along the project lines - Could be temporary or permanent - Designed to optimally utilise resources by having individuals work on multiple projects

Weak Matrix

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Similar to functional approach There will be a formally designated project manager to coordinate project activities Functional managers are responsible for their respective segments Project managers has an indirect authority to expedite the project Functional managers make most of the project-related decisions

Balanced Matrix

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Aims to allow project manager to define what needs to be accomplished While giving functional manager the mandate to execute the project The project manager will o Establish overall project plan o Integrate contributions from various disciplines o Set project timeline o Monitor progress The functional manager will o Assign personnel to tasks o Execute respective segments of the project

Strong Matrix

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Opposite of weak matrix Project manager controls most aspect of the project, including scope trade-offs and assignment of functional personnel Project manager has final say on major project decisions Functional manager is consulted on a need basis Advantages o Efficient o Strong project focus o Easier post project transition o Flexible Disadvantages o Dysfunctional conflict o Infighting o Stressful o Slow

Project Scope Definition Document 1. Project Objective a. Defines the overall objective to meet customers’ needs b. Answer the question of what, when, and how much 2. Deliverables/Requirements a. Includes the expected, measurables outputs over the lifespan of a project b. Deliverables and requirements are often used interchangeably 3. Milestones (time) a. Significant events in the project b. Milestone schedule represents the first cut estimates of time, cost, and resources c. Milestone should be natural important points in the projects d. Should be easy for participants to recognize 4. Technical Requirements a. Typically clarify either the deliverable or define the performance specifications 5. Limits and exclusions a. Limits of scope should be defined as failure to do so can lead to false expectations b. Exclusion further define the boundaries of the project by statant what is not included c. E.g. Designing a new superpower PC i. Limitation: I will test the PC for shock stress testing but only for 5 times. If 5 times are successful. Then we assume the PC is shock proof to the given standards ii. Exclusion: Build the PC but I will not be in charge of designing the bag for the PC nor any accessories 6. Review with customer a. Completion of the scope checklist ends with a review with customer b. Clear communication in all the issues is essential to avoid any misunderstanding

Project Charter -

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Refers to a statement of objectives in a project This statement also sets out detailed project goals, roles, and responsibilities, identifies the main stakeholders, and the level of authority of a project manager Including o Business Case  Why should you do this project? What are the benefits? o Problem/Opportunity Statement What are the problem, issue and/or concern? o Goals/Projected Benefits o Goal Statement o Project Scope  What authority do you have?  Which product/processes are you addressing?  What is not within this project? o Project Plan  How and when this project will get done? o Team Structure Metrics o Primary metrics  Key measures to be used for the objectives

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Secondary metrics  Those measures which indicates impacts on secondary concerns and which indicates that problem is not shifted to other key areas.

Establishing Project Priorities - Project manager is expected to manage the trade-off between performance, time, and cost - Needs to define and understand the nature of the priorities

Work Breakdown Structure (WBS)

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Work of the project can be divided into smaller work elements PM can use WBS to ensure all work elements are identified and project tasks are integrated to the organisation Starts with the project as final deliverable Main project work deliverables are identified Sub-deliverables necessary to accomplish the larger deliverable are defined Process is repeated until detail is small enough to be manageable where one person can be assigned to execute the specific task WBS can serve as a framework to help PM track cost and work performance PM can also assign work packages based on WBS PM can also define communication channel and coordinate the various parts of the project Allowing problems to be addressed and coordinated quickly

PM can use WBS to: -

Define work Identify time to complete a work package (how long) Identify a time-based budget to complete a work package (cost) Identify resources needed complete a work package (how much) Identify a single person responsible for units of work (who) Identify monitoring points for measuring progress (how well)

Responsibilities Matrix (RM) -

Summaries the tasks to be accomplished and who is responsible for what on a project RM provides a mean for all participant in a project to view their tasks and responsibilities ant agree on their assignment Clarify the extent and type of authority exercised by each stakeholder Benefits o Defines the agreed upon responsibilities for all roles in achieving a particular project or task o Clarifies roles and responsibilities, ensuring that everyone knows who should do what o Helps ensure the right groups are involved o Helps eliminate duplication of effort o Reduces the risk of misunderstanding o Defines decision-making responsibilities for all tasks

RACI Matrix (Responsible, Accountable, Consulted, Informed)

Study Unit 3 – Project Planning Estimating project time and costs -

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Project times and costs are the 2 key variables that will influence the delivery of the project Top down estimates are often carried out by senior management o Consensus method  Use the shared experience of senior or usually middle manager to estimate the total project duration ant cost o Ration method  Use ratios to measure time and cost of a project  E.g. Builders can use square feet measurements to estimate cost and time to build a building o Apportion method  Used when project take reference from past projects in terms of feature and costs (an extension of ration method) o Function Point method  Usually for software and system projects  Use a weighted macro variable to measure labour efforts and costs o Learning curves  Assert that each time the output quantity doubles, the unit labour hours are reduced at a constant rate Bottom up estimates are typically performed by the project team o Template method  Use of estimates of past projects as a start point for the new project estimation o Parametric Procedures  Use historical data of similar task to make estimation. Can be applied to specific tasks whenever applicable o Range Estimating  Have a group determine the low, average, and high cost or duration  It works best when the work packages have significant uncertainty associated with time or cost to complete Phase estimating o Hybrid approach which starts with top-down estimate o Then refines estimates for phase of project as it is estimated o Useful when an unusual amount of uncertainty surrounds a project

Condition for top-down or bottom-up

Why are estimates important -

Support sound decision making Schedule works and tasks Determine project length(duration) and cost Determine whether the project is worth considering and embarking on Develop cash flow requirements as well as budget considerations Determine how well the project is progressing compared to plan Develop time phased budgets and establish the project baseline

Factor affecting quality of estimates Planning Horizon Project Duration + New Tech

Others

Quality of Estimates Organisation Culture

Stakeholders

Padding Estimates

Project Structure + Organisation

Estimating guidelines

Work package level

When several people provide input

Premised on normal conditions

Day, weeks, months, etc.

e Each task treated independently of others

Person most familiar with task

Parity check

Using normal level of resources

Selected early

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s Should not include allowances for contingencies

Degree of risk allows stakeholders to consider alternatives

Costs -

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Direct costs o Can be charged to a specific work package o Can be influenced by project manager project team and individuals executing the work package o E.g. Labour, Material, Equipment, Others Direct Projects Overhead costs o Closely pinpoint which resources of the organisation are being used in the project o Can be tied to project deliverables or work packages o E.g. Salary of the project manager and temporary rental space for the project team General and Administrative overhead cost (G&A) o Represents costs that are not directly linked to a specific project o These costs are carried for the duration of the project o E.g. organisation costs across all products and projects such as advertising, accounting, etc

Project Network -

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Depicts the sequence, interdependencies, and start ant finish times of the project job plan of activities that is the critical path through the network. 1. Provides the basis for scheduling labour and equipment 2. Enhances communication among project participants 3. Provides an estimate of the project’s duration 4. Provides a basis for budgeting cash flow 5. Identifies activities that are critical 6. Highlights activities that are “critical” and cannot be delayed 7. Help managers get and stay on plan Standard protocol for planning, scheduling, and monitoring project progress The network is created from various informational inputs collected for the WBS o Enable showing the relationship between the activities and placing everything into perspective o Project network consists of a sequence of activities defined by starting and ending events and the activities that occur between them o Consists of a number of nodes that lead (shown as arrows) from some node to another o Nodes are names given to rectangles and to the arrows in the network o They are set on points and a set of lines connecting certain pairs of the point in the network

Terminologies for project network -

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Activity o An element of the project that requires time Merge Activity o An activity that has more than one activity immediately preceding it Parallel activities o Activities that can take place at the same time Path o Sequence of connected dependent activities Critical Path o The path with the longest duration through the network; if an activity on the path is delayed, the project is delayed the same amount of time Burst activity o An activity that has more than one activity immediately following it

Basic rule for project network -

Flow from left to right An activity cannot begin until all preceding connected activities have been completed Each activity should have a unique identification number Looping activities is not allowed Conditional statement is not permitted When there are multiple starts, a common start node can be used to indicate a clear project beginning on the network

EF = ES + (estimated) duration of the activity (forward pass)

LS = LF – (estimated) duration of the activity (backward pass) Slack/Float -

The amount of time a task or an activity can have a delay yet not delay the overall project can be revealed by total slack Hence, we can consider the total slack as the amount of time a task or an activity can exceed its early finish date without affecting the project end date Total Slack / Float is o The difference between the LS ant ES (LS – ES = SL) or o The difference between the LF ant EF (LF – EF = SL

How are WBS ant project network linked? The network uses the time estimates found in work packages of the WBS to develop the network. Remember, the time estimates, budgets ant resources required for a work package in the WBS are set in time frames, but without dates. The dates are computed after the network is developed

Laddering -

Activities are broken into segments so the following activities can begin sooner and not delay the work Laddering activities o Project ABC can be completed more efficiently if subtasks are used

Study Unit 4 – Project Execution Risk management -

a proactive and preventive process Designed to help minimize the occurrences of risk events And the consequences posed by the risk event in the event it happens Project risk cannot be eliminated

Risk Identification -

First step of risk management process Need to form a risk management team comprising of the project team members ant relevant stakeholders Each member of the team should be able to make accurate judgement (from experience and expertise) Should focus on event that can produce a negative consequences or impact to project, not on project objectives

Risk Profile -

Useful tool which includes a list of questions to ask Addresses traditional areas of uncertainty on a project

Risk Assessment -

Probability x Severity Probability ranges from 1% to 99%

Risk Injury Dehydration Shoe spoil -

Probability 0.6 0.3 0.1

Severity 5 8 1

Score 3.0 2.4 0.1

To ensure a robust process, different levels of risk probabilities and impacts

Risk Severity Matrix

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Allows a clear visualization of where you should devote your risk response actions to

Risk Response -

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Mitigate o Reduce risk o Either likelihood or impact Avoid o Change the project plan o To terminate risk Transfer o Pass the risk to another party o Outsourcing or insurance Accept o Conscious effort to accept risk Contingency Plan o Create a plan to respond to risk in event that if happens o Different fro...