Project Management Basics

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1 IIA Beach Cities Chapter September 20, 2017 Project Management Basics Michael Haas PMP Dina Keirouz PMP

2 Overview Introductions What is Project Management What is the role of the Project Manager Questions / Answers 2

3 Introductions Michael Haas, MBA, PMP Senior Associate - PMA Consultants Education - BS in Accounting, MBA in Finance 15 years experience in project management, project controls, planning and scheduling, cost management Expertise in developing, implementing and supporting Project Controls/Tools at Utilities and Ports 3

4 Introductions Dina Keirouz, PMP Managing Director - PMA Consultants Education - BA in Architecture, BS in Construction Management 26 years of experience in Project and Construction Management, and PM/CM best practices Extensive working knowledge of project controls, including developing and implementing program wide controls and PMIS for large CIPs 4

5 About PMA Consultants Founded 1971, nationwide, 14 offices, 250+ people Pure PM/CM firm Certified Minority Business Enterprise (MBE) Local presence, national expertise Over 90% of PMA s clients are repeat clients Patented NetPoint/NetRisk SINCE 2000, PMA HAS BEEN RANKED IN THE TOP 50 CM-FOR-FEE AND TOP 50 PM FIRMS 5

6 PMA Consultants Industries Include: Ports and Harbors Airports Local Governments Utilities/Energy Transportation Buildings Services Include: Program/Project Management Project Controls Planning and Scheduling Project Risk Analysis Project Management Systems Construction Claims Benchmarking/Gap Analysis Performance Audits 6

7 What is Project Management 7

8 Why do projects fail? Poor project scope definition Stakeholder misalignment No pro-active risk management No visibility/transparency on performance No foresight (backward looking, not enough forward looking) 7

9 Why is Project Management Important Ensures we get the outcome that we expected 9

10 What is a project? Project A temporary endeavor undertaken to create a unique product, service or result. Has a start and a finish PMBOK 5 th Edition 10

11 What is Project Management Methodical approach to planning and guiding project processes from conception to completion 11

12 Key Concepts of Project Management Scope Management Schedule Management Budget Management Risk Management Stakeholder Management Triple Constraints 12

13 Framework for Project Management 13

14 Scope Management 14

15 Scope Management Process Collect Requirements Define Scope Create Work Breakdown Structure (WBS) Validate Scope Control Scope Key Benefit Provides the basis for defining and managing the scope. Defines the boundaries by outlining which of the requirements will be include/excluded. Provides a structured vision of what has to be delivered. Brings objectivity to the acceptance process and increases the chances of acceptance of the final project by validating each deliverable. Allows the scope baseline to be maintained throughout the project. 15

16 Collect the Requirements Requirements can be divided into groups to allow for further refinement (i.e. Business, Stakeholder, Technical Solution, Quality) 16

17 Define the Scope Project Manager should understand why a project is being sponsored and the value it represents to the business Project Scope Statement is a description of the project scope, major deliverable, assumptions and constraints 17

18 Create the Work Breakdown Structure Level 1 is the project Project Intermediate Levels are Summarizations of work below WBS 1 WBS 2 Lowest Level is the Work Package WBS 1.1 WBS 1.2 WBS

19 Validate Scope Validate scope focusing on the acceptance of the deliverables Quality control focuses on the correctness of the deliverables 19

20 Control the Scope Make sure requirements are well defined Involve users and stakeholders early on in the project Have a transparent protocol for scope change management 20

21 Schedule Management 21

22 Schedule Management Process Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule Control Schedule Key Benefit Breaks down work packages into activities that provide the basis for estimating, scheduling, monitoring and controlling the project work. Defines the logical sequence of work to obtain greatest efficiency given project constraints. Identifies the type and quantity and characteristics of resources required to complete an activity which allows for more accurate cost and duration estimates. Provides the amount of time each activity will take to complete. By entering the activities, durations, resources and relationships the scheduling tool will generate a scheduling model with planned dates for completing the project activities. Provides means to recognize deviation from the plan and allows the project manager to take corrective/preventative actions to minimize risks. 22

23 Define Activities Activities are the fundamental work elements of a project The lowest level of a WBS and the smallest subdivision of work that directly involves the project manager 22

24 Sequence Activities A network logic diagram is a logical representation of all the activities in a project showing their dependency relationships 23

25 Estimate Activity Resources Resources are typically divided into three categories: Labor (people) Non-labor (equipment) Material/Supplies 25

26 Estimate Activity Durations Estimates should come from the person/group on the project team most familiar with the work being performed on the specific activity Duration x Units/Time = Units 26

27 Develop Schedule Critical Path Method (CPM) calculates the longest path of planned activities to the end of the project This process determines which activities are "critical" (i.e., on the longest path) and which have "total float" (i.e., can be delayed without making the project longer) 27

28 Control Schedule Create a baseline schedule once scope is finalized Monitor progress against baseline schedule Can only be changed through formal change control procedures 28

29 Budget Management 29

30 Budget Management Process Develop Budget Determine Baseline Control Budget Key Benefit Determines the amount of costs required to complete the project. Determines the cost baseline against which project performance can be monitored and controlled. Provides a means to recognize variance from the plan (baseline) in order to take corrective action and minimize risks. 30

31 Develop Budget 31

32 Control Budget Determine baseline after the scope is finalized Monitor project cost progress against baseline Can only be changed through formal change control procedures 32

33 Earned Value Management (EVM) Methodology that integrates scope, schedule, and cost measurements to assess true project performance and progress 33

34 Stakeholders Management Identifying and engaging them early in the process is paramount. 34

35 Stakeholders Management High Power vs. Interest Keep Satisfied Manage Closely Concern / Importance (or power) Monitor (Minimum Effort) Keep Informed Low High Interest level Based on Jaap Schekkerman 35

36 Quality Management 36

37 Quality Management Process Quality Assurance Quality Control Key Benefit Facilitates the improvement of quality processes. Identifies the causes of poor quality and recommending and/or taking action to eliminate them. Validating that the deliverables meet the requirements specified by key stakeholders necessary for final acceptance. 37

38 Risk Management 38

39 Risk Management Process Identify Risk Perform Risk Analysis (Qualitative and Quantitative) Plan Risk Responses Control Risk Key Benefit Documentation of the existing risks and the ability of the project to anticipate them. Enable the PM to reduce the level of risk and uncertainty and focus on the high-priority risks. Addresses the risks by their priority and adds the needed resources to the project. Approves the efficiency of risk approach through out the project life cycle to continually optimize risk response. 39

40 Risk Management Qualitative risk analysis rapidly sorts the identified risks 40

41 Risk Management Quantitative risk analysis identifies cost and schedule impacts 41

42 Best Practices Create a Risk Register early on (during the planning phase) Prioritize your risks Risk identification happens continuously. Make it a standing agenda item at progress meetings Be mindful of Issues or Events that have associated risks Clarify who is responsible for each risk Monitor risks on weekly/monthly basis 42

43 What is the Project Management Plan Project Management Plan acts as the road map for the project Describes the project goal (i.e. scope, schedule, budget) Describes how the project will be managed and executed (i.e. scope control, risk register, quality management) It is created during the initiation phase of the project and should be maintained through out the project 43

44 Project Management Plan Outline 44

45 What is the role of a Project Manager The Project Manager has the overall responsibility and accountability for the successful initiation, planning, design, execution, monitoring, controlling, and closure of a project. Anticipating and Resolving issues; being ahead of the game 45

46 Characteristics of an effective PM Accountable Anticipates potential problems - Proactive Resolves conflicts Technically competent Skilled politician Good motivator Visionary Leads by example Effective time management 46

47 Project Manager Evolution Reactive Waiting Responding Others Set the Agenda Out of Control Proactive Anticipating Taking Action to Avoid PM Sets the Agenda In Control 47

48 Attributes of a Proactive PM Anticipates project problems and takes steps to avoid them ANTICIPATES Gains comprehensive project understanding Sets expectations Monitors the situation Analyzes the data provided Communicates TAKES ACTION QUICKLY Sets the agenda Maximizes the resources available to tackle the problem Makes a decision Mobilizes the team Communicates 48

49 Questions? 49

50 Thank You! Dina Keirouz, PMP Michael Haas, PMP

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