Introduction 1 Welcome Emergency phone number Local emergency exit procedures Floor and facility layout Start and end expectations Breaks Attendance Agenda Passing this course Ground rules ESI International PMC:CPM:EN:000 ver. 2.0 Introduction 2 Course Overview Module 1: Introduction to Project Management Module 2: Project Initiation Module 3: Project Planning Module 4: Project Implementation Module 5: Project Closeout ESI International PMC:CPM:EN:000 ver. 2.0 Introduction 3 Course Scope This course does Teach the fundamentals, tools, and concepts of project management Discuss the role of the project manager and the team members in managing a project Practice the fundamentals of project management This course does not Teach everything there is to know about project management Cover all topics of project management in great depth Teach everything you need to know for the credentialing 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 416. ESI International PMC:CPM:EN:000 ver. 2.0 Introduction 4 Standards and Best Practices A standard is a basis for uniformly measuring or specifying performance. 1 A best practice is a generally accepted process or technique that consistently outperforms and delivers greater value and benefits within a discipline. ESI International PMC:CPM:EN:000 ver. 2.0 Introduction 5 Global Best Practices in Project Management Global best practices in project management are promoted through the following: Various project management standards organizations, including Project Management Institute (PMI) International Project Management Association (IPMA) Association for Project Management (APM) International Organization for Standardization (ISO) Practicing experts within the field Your organization ESI International PMC:CPM:EN:000 ver. 2.0 Introduction 6 Course Objectives By the end of this course, you will be able to Describe the roles and responsibilities of project managers across the project life cycle Define and develop the foundations of a project plan, including the requirements document, work breakdown structure (WBS), budget, schedule, and other resources Manage and control the project against the baseline Close out a project effectively ESI International PMC:CPM:EN:000 ver. 2.0 Introduction 7 Participant Introductions Name Location Years in current organization Project experience Expectations of this course Most challenging project you have worked on ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-1 Introduction to Project Management ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-2 Objectives By the end of this module, you will be able to Identify the fundamental concepts of project management Describe project processes that make up every project Identify the roles and responsibilities of the project manager ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-3 What Is a Project? Projects are Temporary Unique Time-based Project Management Is using the resources you have to get the job done successfully Good project management discipline helps to ensure project success. ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-4 How Does a Project Fit into the Bigger Picture? ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-5 Discussion Why Does a Project Fail or Succeed? ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-6 Project Constraints ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-7 Managing Projects Using Project Constraints Balancing the constraints to complete the project Combining art and science Defining and refining the project on an ongoing basis Managing project constraints involves a constantly changing balance. 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 416. 2 PMBOK is a registered mark of the Project Management Institute, Inc. ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-8 Some Global Standards Governing Project Management A standard is a "basis for uniformly measuring or specifying performance." 1 A Guide to the Project Management Body of Knowledge (PMBOK
Guide 2 ) Project Management Institute (PMI) Identifies the subset from overall project management knowledge that is generally recognized as good practice Provides and promotes common language and vocabulary The APM Body of Knowledge Association for Project Management (APM), a UK-based member of the International Project Management Association (IPMA) ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-9 Some Global Standards Governing Project Management (continued) PRojects IN Controlled Environments (PRINCE2)
Template-based approach to project management that
originated in the UK ISO 21500:2012, Guidance on Project Management Joint venture between International Project Management Association (IPMA) International Organization for Standardization (ISO) Project Management Institute (PMI) Guidance on project management for any organization and any type of project regardless of complexity or size ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-10 Project Management Best Practices Project management has many areas to focus on and pay attention: Integration Human resources Scope Communications Time Stakeholder expectations Cost Risk Quality Procurement/contracting Value Governance Benefits Competency Health safety and environment For more information, See the PMBOK Guide and the APMBoK. ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-11 Project Life Cycle Projects are usually divided into phases to provide Extra control to manage the completion of deliverables A common understanding or frame of reference when discussing project status A quick guide to the work being done on a project; the start, middle, and end Collectively, these phases make up the project life cycle. Project life cycles depend on the organization and the product or service being built. Appendix A: Typical Project Life Cycles ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-12 Project Management is an Iterative Set of Processes The five basic project process groups in the image below are Initiating Activities to start up/begin a project or phase Planning Activities to organize and prepare for a project or phase Executing Activities to coordinate and accomplish work of a project or phase Monitoring and Controlling Activities to manage and direct the implementation of a project or phase Closing Activities to close down and end a project or phase ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-13 Project Life Cycle Key Documentation Appendix B: Generic View of Project Documentation ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-14 Project Manager 's Roles and Responsibilities A project manager is the one responsible and accountable for the successful coordination and execution of a project to meet the needs and requirements of project stakeholders on time and on budget. Roles and Responsibilities Define the project scope and clarify requirements. Select, build, and lead a project team. Identify/assess stakeholders. Develop the project plan, including the budget and schedule. Manage and control project risks. Manage all project changes. Manage the project constraints. Manage stakeholder needs and expectations. Monitor and report the project progress and status. Monitor the quality metrics. Manage expectations and watch for and react to future trends. ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-15 Discussion What makes a great project manager great? ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-16 Skills Needed by Project Managers 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 342. 2 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 348. ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-17 Key Messages A project is a temporary undertaking to create a unique product or service. 1 Project management is the application of knowledge, skills, tools, and techniques to project activities to meet or exceed stakeholder needs and expectations from a project. 2 Project managers must balance the project constraintscost, scope, time, risk, quality, and resourceover the life of the project. The phases of a project (which often vary by type of project) make up the projects life cycle. An example of a project life cycle is initiation, planning, implementation, and closing. ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-18 Key Messages (continued) Five interacting process groups work together to make up a project: initiating, planning, executing, monitoring and controlling, and closing. Activities and processes within the five process groups are categorized within the nine knowledge areas. To be effective, project managers need to have hard skills, such as planning and budgeting, as well as soft, people-related skills like communicating and conflict resolution. The project managers primary role is to manage the project, but also important are the related roles of planning, leading, communicating, negotiating, and problem solving. ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-19 Next Steps: Action Plan How can you apply what you learned in this module to your work environment? Turn to the Action Plan tab and find the worksheet for this module. Develop a list of actions to complete when you return to work. For each action (what), identify Who needs to be involved When you anticipate completing the action ESI International PMC:CPM:EN:000 ver. 2.0 Module 1 1-20 Next Steps: Action Plan (continued) Take a few minutes to think about what you have learned during class and review the questions below. What are the project life-cycle phases called in your organization? If you don't use a life-cycle framework, how might you go about introducing it? Recall a recent project in which one of the project constraints changed. What happened to the other constraints? Given the same situation and what you have just learned, how would you now handle the change? How does your project fit within your organizations setup? Why are people skills so important for a project manager? ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-1 Project Initiation ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-2 Objectives By the end of this module, you will be able to Identify stakeholders and organizational influences on a project over its life cycle Describe quantitative and qualitative methods for project selection Create SMART (specific, measurable, agreed-upon, realistic, time- constrained) objectives Document project requirements from identified needs ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-3 The Project Life Cycle Initiation Phase Conduct a high-level stakeholder assessment. Assess business needs and opportunities. Evaluate financial benefits and costs. Determine objectives and requirements. Identify the purpose/components of a project charter. Prepare requirements documentation. ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-4 Influences on a Project Projects are influenced by Key stakeholders Project sponsor Project manager Customer Vendors and suppliers Other stakeholders Internal factors System Organizational structure Culture Business/ organizational need External factors Social Economic Environmental Market demand Regulations ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-5 Identifying Key Stakeholders Who are the stakeholders? Consider Who gets the output from the project? Who provides the input? Who has oversight? Who has other related responsibilities? Who reaps the rewards? Who suffers the penalties? ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-6 Stakeholder Identification and Assessment To determine the best approach to managing stakeholder expectations throughout the whole project Identify the key stakeholders Analyze them on Interest in the project Power to impact the project Engagement to the project Identify their needs and expectations ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-7 Types of Stakeholders Tool: Stakeholder Register (Simple) ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-8 Understanding the Roles of Governance Senior management includes your leaders/managers: Program managers Division heads Vice presidents Managing partners Sponsor Portfolio manager Usually, they use governance policies to select and initiate projects. As a project manager, think What do they need from me? What do I need from them? How do they want my project governed? How do I escalate and resolve issues? How does my project align with and support my organization strategy? ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-9 Case Study 2-1 Good Answers Is Growing: Introducing Your Next Project ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-10 Assess Business Needs and Opportunities Project concepts originate in response to Product obsolescence Competitive forces Customer/client requirements Employee suggestions Process improvement Business transformation Organizational change Regulatory changes Projects should support the organization's major business and strategic goals. ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-11 Project Selection Selection practices are unique to each organization. Best practices encourage objectivity. Project selection is rarely purely quantitative. Selection should align with an organization's strategic intent. Selection is an integral part of an organization's balanced portfolio. ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-12 Selection Tools Qualitative Factors Quantitative Factors Stakeholder bias Organizational fit Risk analysis Scoring models Benefit-cost ratio (BCR) Present value (PV) Net present value (NPV) Payback period ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-13 Benefit-Cost Ratio (BCR) A comparative analysis of benefits to costs: Example: Project A will charge $100,000 (cost) and generate $150,000 in value (benefit). Project B will charge $100,000 (cost) and generate $160,000 in value (benefit).
Which has a higher BCR? ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-14 Present Value (PV) What is the value today of future cash flow? Remember PV = present value of money FV = future value i = interest rate (also known as internal discount rate or cost of capital) n = number of time periods from today ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-15 Present Value (PV) (continued) Someone wants to repay your invoice of $1,000 by waiting until the end of next year (today is Jan. 1) and will pay you $1,250 at the end of next December. Lets assume your organizations cost of capital is 15%. Is this a good deal? ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-16 Net Present Value (NPV) To determine the value of an investment over time Add the PV from each year to determine the Total Benefit: Use the following formula to determine NPV: ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-17 Net Present Value (NPV) (continued) Which project is financially smarter? ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-18 Payback Period How long it will take to balance the cost of the project before turning a profit Which has the shorter payback period? ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-19 Exercise 2-1 Net Present Value ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-20 Project Charter A document issued by the project approver that authorizes the existence of a project Acts as the written agreement between senior management, the project manager, and functional managers Delineates preliminary roles, responsibilities, authority, and accountability Describes project scope, including high-level requirements and risks Documents business needs and a current understanding of the product service or result Documents a high-level milestone schedule and budget Summarizes, as a minimum, the preliminary boundaries of a project Tool: Project Charter ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-21 The Right Start Needs are formalized into Objectives Requirements Business User Functional Technical ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-22 Needs Assessment Collect requirements to define and document the needs of the project. Needs exist on various levels. Needs should be separated from wants. Projects are often built on conflicting needs. Customers often do not know, or understand, their needs. Review the organizations methodologies and internal processes. Needs are assessed passively through document review, questionnaires, surveys, analyses, and audits. A participative needs assessment can be done using interviews, focus groups, facilitative workshops, and prototypes. ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-23 Formulating Good Objectives Objective An understanding between someone who needs something and someone who can provide it Exists at all levels (corporate, project, work team, specific task) ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-24 Requirements and Specifications Functional/Nonfunctional Requirements Technical Specifications Written in business language Written in technical language Solution agnostic Particular technology solution Performance characteristics Design specifications Customer/client view Build team view Product features & capabilities Sometimes called "specifications" Key problems: Customers dictating the technical solution Team members rewriting customer requirements (outside of the change process) Tool: Requirements Checklist (Basic) ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-25 Case Study 2-2 Working with Customers to Develop Good Requirements ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-26 Requirements Documentation Project requirements document (PRD) Lists what the project is to do Links the project requirements to business objectives Business requirements document (BRD) Lists the TO-BE solution Maps business goals and needs to solution scope and requirements Requirements work plan Documents how requirements are to be collected Incorporated into the project management plan Traceability matrix Maps each requirement through the life of the project Tool: Traceability Matrix (Basic) ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-27 Project Requirements Document A formal document used to communicate requirements for project stakeholders Documents the project objectives and identifies and prioritizes requirements Supports the business case Drafted by the project team and approved by senior management/ key stakeholders Provides a basis for planning and designing the product/solution, including cost and time estimates Reduces the amount of rework on the project Tool: Project Requirements ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-28 Case Study 2-3 Off to a Strong Start: Creating a Project Requirements Document ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-29 From Initiation to Planning Charter/PRD Tools used (*key project management documents): Tool: Project Charter* Tool: Project Requirements* Tool: Requirements Checklist (Basic) Tool: Stakeholder Register (Simple)* Tool: Traceability Matrix ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-30 Key Messages Internal and external factors influence every project. Senior management usually selects and initiates a project. Qualitative methods and quantitative considerations enter into project selection. Projects originate for many reasons, from product obsolescence to client requirements to individual innovation. Needs must be assessed, objectives set, and requirements defined so that specifications can be set. Customers define the requirements. The project team develops the technical specifications. ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-31 Key Messages (continued) A project charter spells out the roles and responsibilities of the project manager, key members of the project team, and input from other organizational agencies. The requirements documentation comes in many forms: project requirements documents and business requirements documents. The PRD is the official document that describes the identified project requirements. The requirements traceability maps the evolution of the requirements from the beginning to the end of the project. ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-32 Next Steps: Action Plan How can you apply what you learned in this module to your work environment? Turn to the Action Plan tab and find the worksheet for this module. Develop a list of actions to complete when you return to work. For each action (what), identify Who needs to be involved When you anticipate completing the action ESI International PMC:CPM:EN:000 ver. 2.0 Module 2 2-33 Next Steps: Action Plan (continued) Take a few minutes to think about what you have learned during class and review the questions below. In the past, what steps have you taken to ensure you have identified all of the stakeholders in your projects? What can you do to ensure you do so in the future? In the past, have you been successful in identifying who senior management is and what they need? Remember to ask yourself, What do they need from me and what do I need from them? Historically, how has your organization identified needs, written good objectives, and created both functional and technical requirements? What can be done in the future to improve how this is done on your project? What uses can you see in your organization for a project charter and a PRD? ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-1 Project Planning ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-2 Objectives By the end of this module, you will be able to Assemble the core project team to plan a project Document the project scope in a scope statement Document the project work in a WBS Complete and interpret work estimates Identify the appropriate resources necessary for a project Build a project schedule Estimate and interpret project costs Identify strategies for dealing with positive and negative risks Explain the basics for procuring external goods and services Explain the relevance of communications and quality planning Complete and interpret a project management plan Define and interpret baselines ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-3 The Project Life Cycle Planning Phase Build the core project team. Build a WBS. Estimate durations, costs, and resources. Develop the project schedule. Conduct risk management and risk response planning. Develop subsidiary management plans, including communication and quality plans. Develop the project management plan. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-4 Core Project Team A core group of key people should Include a representative from the major business functional areas Not be the whole team Not be senior management The core team should be self-directed and interactive. Project management tip: Get the right people with the right skills and knowledge on the core team! ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-5 The Project Management Plan Book of Plans: How best to manage this project; a place to document key project decisions What life cycle is best to be used? Why? What level of detail is required on activities? Why? What tools/techniques are being used? Why? How will the selected processes Be used? Actually work? Integrate with other processes? How will the integrity on the baseline be maintained? What are the key management reviews to be accomplished? When and with what information? 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 397. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-6 Scope Management Scope: "The sum of the products and services to be provided by the project." 1 Scope statement: Describes in detail the projects deliverables and the work necessary to complete the deliverables Scope was outlined in the projects Initiation phase; now it is time to focus on what is specifically in scope and what is not in scope. 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 470. 2 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 470. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-7 Work Breakdown Structure (WBS) The WBS is A hierarchical structured grouping of project elements that organizes and defines the total scope of the project 1 Each descending level is an increasingly detailed definition of a project component for each descending level of the WBS. 2 ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-8 Key WBS Terms Control Account Work Package Planning Package Is typically above the work package level Is the level for management reporting Is the level where costs are accrued and monitored Is the level where work is assigned and monitored Is the basic level for addressing schedules, cost, and resources needed Is the lowest level of the WBS Is primarily used with rolling wave planning Is below the control account Is a work package with known work content that has not been detailed or scheduled ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-9 WBS Models (Graphical) ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-10 WBS Models (Outline/Indented) 1.0 Management Information Software System 1.1 Assess needs 1.1.1 Measure state of current system 1.1.1.1 Identify components of current system 1.1.1.2 Analyze components of current system 1.1.2 Determine future capability requirements 1.1.2.1 Perform gap assessment 1.1.2.2 Identify required changes 1.1.3 Develop alternative approaches 1.1.3.1 Identify alternative approaches 1.1.3.2 Analyze alternative approaches 1.2 Develop specification 1.2.1 Develop preliminary software and hardware specifications 1.2.2 Develop detailed software specifications ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-11 Discussion What Are Some Important Benefits and Uses of a WBS? ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-12 Building a Work Breakdown Structure (WBS) As a team 1. Understand the purpose of your project 2. Review existing templates, WBSs from past projects, and historical records such as lessons learned 3. Establish the major breakout segments of the work 4. Break down these large pieces into the next level of components 5. Break down each component into subcomponents 6. Continue down to the level where you will assign and monitor project work 7. Hold a review session with the core project team, client, and other key stakeholders to gain buy-in and identify missing items 8. Prepare the WBS dictionary Tool: WBS Checklist ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-13 WBS Dictionary Is not a book of terms and definitions Provides detailed information on those work packages that need further clarification Captures critical information about the activity such as, but not limited to WBS task name and number Task description including deliverables to be produced and deliverables schedule Resource requirements and assignments Preceding/subsequent activities Cost estimates Quality requirements Contains varying content, depending on the need for information Tool: WBS Dictionary ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-14 Case Study 3-1 Creating the Project's WBS ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-15 Translating the WBS into the Schedule The WBS identifies the work to be donein work packages. Work packages are further broken into activities that specify the work necessary to complete the work packages. Activities are used as a basis to quantify estimates of Duration Cost Resources Schedule dependencies 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 151. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-16 Estimating Forecasting the cost, schedule, and resource requirements needed to produce a specific deliverable 1 Estimating is a deliberate process: The quality of the estimate leads is directly proportional to the quality of the project schedule and budget. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-17 Good Estimating Practices Acknowledge the level of accuracy: Estimates can and should be done at varied levels of accuracy. Communicate the level of accuracy with the estimate. Get input from many sources: In-house sources Outside sources Professional organizations Document your assumptions. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-18 Estimating Techniques STET Parametric Historical Three-point PERT (Program Evaluation and Review Technique) Wideband Delphi ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-19 Three-Point Estimating Formulas Where: O = optimistic P = pessimistic ML = most likely E = expected ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-20 Creating the Schedule Estimates the time duration to complete the project Establishes relationships between various work packages Benefits from the use of tools only when accurate information is used 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 142. 2 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 470. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-21 Considerations for Estimating Activity Duration Effort: "Number of labor units required to complete an activity" 1 Work period: Unit of time when resources are generally available to perform work (8 hours = 1 day) Working time: "Period of time in which actual work on a project can be, and should be, completed" 2 (24 hours effort = 3 workdays) Elapsed time: Accounts for all calendar time (weekends, holidays, and breaks) and not just time spent on a project (24 hours = 1 elapsed day) Availability: The time that a resource is present, ready for, and capable of performing the work Productivity: Measure of efficiency of a resource in performing work Interruptible duration: Work time that is not contiguous ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-22 Common Scheduling Tools Network diagram Schematic display of the logic relationships of project activities Best for analysis Gantt chart Easiest to make and understand Appropriate for smaller projects Project calendar High-level details Quick public way to show project responsibilities Milestones Summary-level scheduling showing significant events that include completion of major deliverables Consume no resources or time ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-23 Network Diagrams The chronological relationship between scheduled activities is shown. Activities are represented by boxes. Dependencies are represented by arrows. Multiple arrows (dependencies) are possible. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-24 Transforming a WBS into a Network Diagram Work package: Install new building fire alarm system ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-25 Uses of the Network Diagram Step Action Result Forward Pass By path, start at the beginning, add all durations together Duration of the project Backward Pass By path, start at the end, subtract all durations Float Path Analysis By path, review each path for the least amount of float Critical path ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-26 Forward Pass ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-27 Backward Pass 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 175. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-28 Float Amount of time that an activity may be delayed from its early start without delaying the project end date. Derived by subtracting the early start from the late start or early finish from the late finish; it may change as the project progresses and as changes are made to the project plan. 1 Calculated from the network diagram after completing a backward pass Indicates the amount of flexibility the project manager has to adjust the timing of a particular activity Also called slack and total float ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-29 Determining Float ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-30 Completed Network Diagram Showing Critical Path ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-31 Network Analysis Analysis of the network reveals the Duration of the project Float Critical path Longest of all paths through the project Shortest time to complete the project Path with the least float/slack time ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-32 Gantt Charts A Gantt chart Is a graphical representation of the project schedule that shows how the work flows over time Shows activity start and end dates and durations ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-33 Project Calendar (Month 4) The project calendar Is a visual representation of what work needs to happen on a certain day Shows days, work hours, and weekends/holidays ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-34 Milestone Charts Milestones Activities of zero duration Take no time Consume no resources Record significant events or deliverables Major project happenings (component X complete) Funding points (30% of budget expended) Key dates (Start of Sochi Winter OlympicsFebruary 7, 2014) Serve as reminders to check on overall project status at key points ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-35 Case Study 3-2 Network Diagramming ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-36 Estimating Costs to Determining Budget How much will the project cost? Inputs: Scope baseline WBS WBS dictionary Project schedule Roles and Responsibilities Risk register Outputs: Cost estimates Duration (time) estimates Basis of estimates Documentation on how estimates were determined Documented assumptions and constraints The precision range of estimates and confidence level ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-37 Three Levels of Estimates ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-38 Cost Components Direct Costs Labor Internal Contract Materials and equipment Other direct costs Fees Travel Incidentals Indirect Costs (Overhead) General administrative Headquarter (HQ) expenses Fringe benefits Depreciation Marketing and sales Research and development ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-39 Cumulative Cost Curve ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-40 Resource Planning Plan for the resources you need to do the project: People Skills Equipment Facilities Materials ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-41 Human Resource Planning How will I get the best resources and use who I have as best I can? Planning for the project resources Acquiring project resources Developing, maintaining, and managing project resources Replenishing project resources as needed ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-42 Resource Planning Tools and Techniques Roles and responsibilities Resource Gantt chart Resource loading table Resource loading histogram Resource leveling ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-43 Roles and Responsibilities Matrix The roles and responsibilities matrix identifies the appropriate skill/person for each task and his or her role on that specific task. Tool: Roles and Responsibilities Matrix ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-44 Resource Gantt Chart Horizontal bar chart showing duration of assignments for each resource and activity ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-45 Resource Loading Table Structure that shows the resource allocation by time period ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-46 Resource Loading Histogram How available resources can be allocated over the life of the project ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-47 Resource Leveling Used to smooth the peaks and valleys of planned resources over a period of time Limit of no more than seven people involved 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 386. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-48 Risk Risk event "Discrete occurrence that may affect a project, positively or negatively." 1 Probability of the risk event occurring Impact (consequence) of that risk events occurrence Based on the assessment of probability and impact, you should prioritize the risk by Best utilizing the available resources Addressing the highest-impacting events first, then address the remaining lower-impacting events as time and resources allow 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 387. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-49 Risk Management Planning "The procedures to be used to manage risk during the life of a project." 1 Risks are threats or opportunities. Risk planning is an integral part of project planning. Individuals are assigned responsibility for managing certain areas of risk Risk management consists of eight processes: Plan risk management planning Identify risks Analyze risks quantitatively and qualitatively Prioritize risks Plan risk responses Execute risk responses as appropriate Evaluate and reidentify Document options and outcomes Tool: Risk Register ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-50 ESIs Risk Management Model The circle below illustrates the 8 steps of ESIs risk management model. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-51 Response Strategies for Threats Threats Accept: Prepare for and deal with a risk's consequences, either actively (create a contingency fund) or passively (do nothing). Mitigate: Reduce the probability and/or impact of a threat to an acceptable threshold. Transfer: Shift a threat's consequences to a third party. Avoid: Eliminate the threat, usually by eliminating its potential cause. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-52 Response Strategies for Opportunities Opportunities Accept: Prepare for and deal with a risk's consequences, either actively (create a contingency fund) or passively (do nothing). Enhance: Modify the potential of an opportunity by increasing probability and/or positive impact and by identifying and maximizing key drivers. Exploit: Ensure that the opportunity is realized; eliminate the uncertainty associated with a particular risk by making the opportunity definitely happen. Share: Allocate ownership to a third party best able to capture the opportunity. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-53 Procurement Planning Going outside the team to purchase or acquire Materials Services People The project manager becomes the customer Selecting the contract type Preparing procurement documents Selecting the contractor (vendor) ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-54 Selecting a Contract Type ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-55 Preparing Procurement Documents Procurement documents are used to solicit proposals from sellers. Some of the most common ones are Request for information (RFI) Request for proposal (RFP) Request for quotation (RFQ) ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-56 Selecting a Contractor* Evaluate and choose the best proposal or bid: Technical Business fit Cost Negotiate and award the contract. *Also may be referred to as seller or contractor. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-57 Communication Planning How will information flow during your project? Who needs to know what? How will you tell them? How urgently and how often? What do you make part of a permanent record and how? What technology will be used? Who authorizes the release of classified information? What are the escalation processes? What are the constraints on communications? Tool: Communication PlanDetailed 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 363. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-58 Planning for Project Quality The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance. 1 The project manager and team must Plan for quality, perform quality assurance, and perform quality control Clarify quality policy duration Link to customer's policy Link to organization's strategy Determine project standards and metrics for tasks within standards Document how and when metrics will be measured Document how project quality will integrate with product/service score Tool: Quality Plan ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-59 Project Management Plan The project management plan provides the road map to the Implementation phase of a project. Tool: Project Plan OutlineTypical ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-60 Case Study 3-3 Planning for Success: Building the Project Management Plan 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 32. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-61 Project Baselines What: "Project management frame of reference established based on the detailed project plan and incorporating the project's cost, schedule, and quality objectives to provide a basis for measuring progress, comparing planned and actual events and expenditure, and identifying and executing changes to the project's scope of work." 1 Scope Cost Schedule Quality Why: To define a standard against which project success can be judged When: Upon approval and endorsement of all baseline components ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-62 Who Uses Baselines? Customer Project manager Management Accounting Project team ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-63 From Planning to Implementation: The Project Plan Tools used (*key project management documents): WBS Checklist WBS Dictionary Roles and Responsibilities Matrix Risk Register* Communication PlanDetailed Quality Plan Project Plan OutlineTypical* ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-64 Key Messages The core project team is involved in project planning. Understanding the scope is key to project planning. A WBS is a hierarchical breakdown of the scope in order to better plan for its completion. Although a WBS has different formats, levels of detail, and ways of being created, the work package is always the bottommost level. Work packages break down into activities. It is these activities that are used to build the network diagram that leads to the project schedule. A WBS dictionary provides important working-level information about each work package. Schedule planning involves determining the timing of the project, including critical path and float, and may be presented in many formats. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-65 Key Messages (continued) Cost planning involves determining the direct costs that the work packages required as well as indirect costs (overhead) allocated to the project. Resource planning covers people, materials, facilities, and other resources. Risks (both opportunities and threats) must be identified, analyzed, prioritized, and planned for through the appropriate response strategy. Procurement planning involves deciding whether to procure outside services and how to choose which outside entity to use. Communication and quality round out the project managers planning processes. Baselines are used by stakeholders to measure how the project is doing in reference to cost, scope, and schedule baseline. All these processes come together in the project management plan. ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-66 Next Steps: Action Plan How can you apply what you learned in this module to your work environment? Turn to the Action Plan tab and find the worksheet for this module. Develop a list of actions to complete when you return to work. For each action (what), identify Who needs to be involved When you anticipate completing the action ESI International PMC:CPM:EN:000 ver. 2.0 Module 3 3-67 Next Steps: Action Plan (continued) Take a few minutes to think about what you have learned during class and review the questions below. What form of WBS does your organization use? Why is having a WBS for a project important? Why is determining the critical path and float so important to your project? How can your organization benefit by having each project produce a resource/responsibility matrix? What is your organizations risk planning process? Is it effective? What can you do to strengthen or enhance it? What is your organizations procurement planning process? Is it effective? What can you do to strengthen or enhance it? ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-1 Project Implementation ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-2 Objectives By the end of this module, you will be able to Assess and monitor project performance based on cost, schedule, scope, and quality baselines as well as stakeholder expectations and team performance Describe methods for managing and controlling change for a project Address risks as they occur Describe characteristics of an effective team, their roles and responsibilities, and possible organizational team structures Align project team performance with stakeholder expectations Complete a performance report ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-3 The Project Life Cycle Implementation Phase Execute Develop the product or service Monitor Assess, monitor, and report project performance Develop, monitor, and support the project team Control Manage change Manage risk Manage stakeholder expectations ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-4 Assessing Project Performance Monitoring Continuous, ongoing Used by project team to adjust the project Evaluating Periodic Used by senior management and customers to adjust the project Through status reports 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 462. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-5 Monitoring Project Performance Compare against baselines: Scope Cost performance Schedule Identify variance: Is the difference between a plan and actual time, cost, or performance 1 Responds as appropriate Available techniques Trend analysis Critical path method Critical chain method Earned value management (EVM) ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-6 Earned Value Management (EVM) An objective look at project status Schedule and cost variances Assessing schedule, cost, and work status Single system to integrate multiple assessments into a single reporting structure ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-7 How Is the Project Doing? ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-8 EVM Terminology ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-9 Variances ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-10 Variances (continued) Key EVM Tools and Techniques Cost Variance Cost Performance Index CV = EV AC CPI = EV / AC Schedule Variance Schedule Performance Index SV = EV PV SPI = EV / PV Budget at Completion Estimate at Completion BAC = Sum of all PVs EAC = BAC / CPI or BAC-EV ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-11 Interpreting Earned Value Management (EVM) Calculations Generally good variance: Ahead of schedule Costs under budget Positive values for cost variance (CV) and schedule variance (SV) Ratios greater than 1 for cost performance index (CPI) and schedule performance index (SPI) Generally bad variance: Behind schedule Costs over budget Negative values for CV and SV Ratios less than 1 for CPI and SPI ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-12 Exercise 4-1 Earned Value Management Calculations ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-13 Assessing Project Status Time Cost Scope Resources Quality ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-14 Indicators That Corrective Action Is Needed Schedule slippage for a specific task on the critical path or for the project as a whole Over budget on a specific task on the critical path or for the project as a whole Inability to resolve problems promptly Insufficient or high turnover in resources Unmanaged changes in scope Quality problems resulting in excessive rework Changes in customer or user requirements ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-15 Corrective Actions Change the task relationships (fast-tracking). Increase the resources (crashing). Redistribute the resources. Change the project solution design. Use improved technology. Change the contract scope. Change suppliers. Renegotiate the terms. Use subcontractors. Update the estimates. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-16 Ways to Speed Up Schedules Crashing Fast-Tracking Accelerates project completion (to fight schedule slippage) by adding resources to critical path activities Anticipates increased project costs Selects activities that will cost the least to crash Carries out activities in parallel on the critical path to accelerate the schedule Increases project risk Requires greater level of control and coordination ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-17 Discussion Based on the Network Diagram You Created in Case Study 3-2, How Would You Apply Crashing and Fast-Tracking Techniques? ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-18 Performance Reporting No matter the form, no matter the frequency, include these three components: What/how you have done since the last report (status) What you anticipate in the near future (forecast) Other key information the reader needs to know The performance report needs to be constructed, updated, and distributed in accordance with the communication plan. Tool: Project Status Summary Report ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-19 Case Study 4-1 How Are We Doing? Reporting Project Performance ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-20 Project Evaluation Periodic project evaluations Encourage timely adjustment Facilitate midcourse corrections instead of waiting until the end Help with stakeholder communication Outcomes of evaluation include Continue as planned Perform minor redirection Perform major redirection Terminate early Shelve or put project on temporary hold ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-21 Sunk Costs Have already gone into the project and cannot be recovered Should not affect decisions about the continuation of the project ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-22 Managing Change Change happens for many reasons and in many forms: Customer Team Organizational management Environment Product obsolescence Funding changes Technology ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-23 Change Control Board (CCB)
An organized systematic approach is helpful in managing change:
Tool: Change Request 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 80. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-24 Configuration Management A configuration management system is a process used to apply technical and administrative direction to Document the functional and physical characteristics of an item or system Control any changes to such characteristics Record and report each change and its implementation status Support the audit of the products, results, or components to verify conformance to requirements 1 ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-25 Managing Risk Be proactive. Monitor earlier assumptions. Monitor changes in organizational risk tolerance over the course of the project. Watch for risk triggers and risk symptoms. Implement responses, as needed, from your risk management plan. Evaluate the effectiveness of the response and modify as needed. Document what you do. Reidentify and reassess risks again. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-26 Quality Quality assurance (QA) includes all the activities and procedures undertaken to ensure that quality is achieved. What are the steps to performing a QA? What characteristics should each QA activity include? What are the most common QA tools? Quality control (QC) includes all the activities and procedures needed to analyze performance and identify and recommend changes. What are the steps to QC? What are the most common QC tools? Quality is planned into a project, not inspected in. 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 355. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-27 Developing the Project Team "A project team is a group with complementary skills, a common purpose, shared goals, and mutual accountability who share responsibility for accomplishing project goals and who report to the project manager." 1 ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-28 Characteristics of an Effective Team Right size Common purpose Common approach Complementary skills Clear set of objectives Mutually accountable ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-29 Acquiring Project Team Members Preassignment by senior management Selected by project manager via negotiation Experience and skills Interest Personal traits Availability Productivity Work style Ability to work with others in a team environment Buy/outsource ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-30 Project Team Structures Mirror image Specialty Directive Self-managed With todays technology, virtual teams can easily incorporate these team structures. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-31 Virtual Teams In virtual teams, communication is critical. Set aside the time to establish Clear expectations Protocols for resolving conflict Decision-making procedures Clear communication links and channels ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-32 Types of Teams ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-33 How to Form a Successful Team Define roles and responsibilities for the project manager and the team members. Delegate and share project management responsibilities. Anticipate and constructively channel conflict. Communicate the project scope and its alignment with business objectives. Allow and encourage diversity. Work toward satisfying closure on project tasks. Motivate the team and support team identity. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-34 Managing the Project Team During development of the product/system, the project manager must monitor and support the team. Hold regular meetings with the team to identify and resolve any development problems. Ensure that the team is developing the product/system according to the client's business requirements and the design specifications. Provide the team with supplemental resources, if necessary, to keep the project on track. Manage conflicts. Reward team members. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-35 Managing Stakeholder Expectations and Engagements Building and maintaining a relationship with stakeholders to satisfy their needs and to be prepared to address project issues as they occur. Managing expectations Is anticipating the stakeholders reaction to any component of the project Increases the probability of project success Decreases the risk that the project will fail to meet goals and objectives Is the responsibility of the project manager ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-36 Techniques for Managing Expectations Interpersonal Skills Management Skills Active listening Communication skills Empathy Conflict resolution Trust building Coaching others through change Critical thinking Negotiation skills Presentation skills Facilitation skills Problem solving Decision making Writing skills Public speaking 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 460. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-37 Transition to Customer Acceptance "Determining the correctness of the final product, system, or system component with respect to the users requirements." 1 This means asking Did you do what you said you were going to do? Did you gain agreement on the scope activities and deliverables having been completed? Two steps Dialogue with your team and check the WBS. Dialogue with the customer. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-38 From Implementation to Closeout Tools used (*key project management documents): Project Status Summary Report* Change Request* ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-39 Key Messages Monitoring and controlling is ongoing and used by the team; evaluating is periodic and used by senior management. EVM and trend variance analysis shows the project manager the difference between what was planned and what has occurred at a certain point in time. Performance reports should be prepared differently for different audiences. Risk response plans can be used to manage risks once they occur. Change can be managed with a well-designed change management system. The project manager must develop, manage, and support the project team for it to perform well. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-40 Key Messages (continued) Conflict is inevitable and must be managed. Validate scope against agreed-upon requirements. The probability of project success increases when actively managing stakeholders expectations. Open lines of communication and good interpersonal skills are beneficial in managing stakeholders expectations. ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-41 Next Steps: Action Plan How can you apply what you learned in this module to your work environment? Turn to the Action Plan tab and find the worksheet for this module. Develop a list of actions to complete when you return to work. For each action (what), identify Who needs to be involved When you anticipate completing the action ESI International PMC:CPM:EN:000 ver. 2.0 Module 4 4-42 Next Steps: Action Plan (continued) Take a few minutes to think about what you have learned during class and review the questions below. Recall a recent project in which conflict was not dealt with efficiently. What were the ramifications to the project? Given the same situation and what you have just learned, how would you handle the conflict? What type of team structure does your organization generally use? Is it effective? What can you do to strengthen or enhance it? How would a customers experience be changed if stakeholder expectations were managed from the beginning of a project? What type of performance reporting do you currently do? What might you do differently in the future? ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-1 Project Closeout ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-2 Objectives By the end of this module, you will be able to Identify key tasks required for proper project or phase closeout Explain the importance of documenting and communicating lessons learned for the project ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-3 The Project Life Cycle Closeout Phase Obtain final customer acceptance. Provide the customer with relevant project information. Recognize, reward, and reassign project team members. Terminate outstanding purchase orders from subcontractors. Prepare the final payment. Dispose materials and supplies. Prepare final cost and schedule reports. Document lessons learned. Celebrate project successes. ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-4 Closing Out a Project or Phase The process of finalizing all activities across all phases of the project management process groups to formally complete the project or phase Tool: Project Closeout Checklist Tool: Closeout Procedures 1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 113. ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-5 Getting Customer Acceptance Documented sign-off by the customer that all project deliverables satisfy requirements. 1 ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-6 Guidelines for Project Closeout Ensure that the project Closeout phase is formally acknowledged on the project schedule. Review the closeout steps listed in the WBS for previous projects. Prepare a detailed closeout plan (plan for closeout in the WBS). Continue to preserve the team's identity by stressing the importance of its efforts. Continue to conduct periodic status meetings until all project activities have been completed. Visit remote sites if the project team is physically dispersed. ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-7 Guidelines for Project Closeout (continued) Provide performance feedback to functional managers for all team members. Schedule a formal closeout review or project audit. Review and document lessons learned to help improve performance on future projects. Prepare a final project report and communicate it to stakeholders. Use a project closeout checklist. Celebrate success. ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-8 Project Closeout IssuesProject Team Loss of interest in remaining tasks Fear of no future work Dissatisfaction with next assignment Loss of project-derived motivation Loss of team identity Diversion of effort Reassignment of personnel ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-9 Project Closeout IssuesClient/Customer Change in attitude Loss of interest in project Changes in personnel assigned to project Unavailability of key personnel Up-to-date documentation Resistance to solution ownership Resistance to change Scope creep Knowledge transfer ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-10 Procurement and Project or Phase Closeout Procurement Closeout Make sure all contracts have been satisfied and vendors have been paid. Collect, and have available for review, product/system documentation, contract documentation, and other project records. Archive contract documentation. Project or Phase Closeout Prepare project and contract closeout documentation: Lessons learned Final project report Procurement audit Archive project documentation. Tool: Final Project Report Outline ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-11 Lessons Learned What did we learn on this project so that the next project will run more smoothly? Timely Relevant In context Detailed Filed and accessible Tool: Lessons Learned ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-12 People-Oriented Closeout Activities Site/equipment/materials closeout Personal closeout Public relations closeout Project team closeout Celebration ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-13 Closeout Tools used (*key project management documents): Project Closeout Checklist Closeout Procedures* Lessons Learned* Final Project Report Outline ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-14 Key Messages Plan for closeout of the WBS and schedule. Procurement and project or phase closeout ensure that all project requirements are met. Lessons learned impart valuable knowledge to your organization for use in future work. Close out with the team, stakeholders, and yourself, including the appropriate recognition and celebration of your efforts. ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-15 Next Steps: Action Plan How can you apply what you learned in this module to your work environment? Turn to the Action Plan tab and find the worksheet for this module. Develop a list of actions to complete when you return to work. For each action (what), identify Who needs to be involved When you anticipate completing the action ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-16 Next Steps: Action Plan (continued) Take a few minutes to think about what you have learned during class and review the questions below. Does your organization typically plan closeout into projects? Why is it important to plan for closeout? How can you improve your scope verification and customer acceptance? How well does your organization document and share lessons learned? Is it effective? What can you do to strengthen or enhance it? ESI International PMC:CPM:EN:000 ver. 2.0 Module 5 5-17 MyESI
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