Project environment. 6th African Rift Geothermal Conference ARGeo-C6 Short Course 1 Project Management for Geothermal Development
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- Laureen Campbell
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1 Project environment 6th African Rift Geothermal Conference ARGeo-C6 Short Course 1 Project Management for Geothermal Development Factors outside and inside the organizational boundary
2 Project environment Source: ISO 21500
3 Project environment
4 Organization struture & management Relations between the project and other entities The project owner may be the employer or an external company/individual The project manager may be an organizational deputy of one of the project staff The project staff (engineers, financial staff etc.) may be mostly employed by the same employer as the project manager or project owner or alternatively be employed by e.g. consulting engineering companies, auditoring companies etc. Important: The project has its own organization, regardless of who is the employer of individual project staff members
5 Portfolio, programmes & projects Source: ISO 21500
6 P/P/P orientation & implementation A company or institution is Project oriented if its main activities are organized as projects. A group of related projects may be organized into a Program The whole ensemble of projects and programs forms the portfolio of projects and programs. Discussion: How does this relate to the project environment in Ethiopia?
7 Internal factors the organization Organization= corporate enterprise,institution... Has a business prupose Factors: Policy Finance Resources Legal Marketing Operations Internal project users
8 Organizational influence Systems Type and size of project Culture and styles Structure
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10 Project management organization Project management system and organization/structure within an organization: Why do that?
11 Influencing factors
12 External factors Political factors Legal factors Environmental factors Project Economic factors Social factors Technological factors
13 External factors Economic situation Political decisions Environment, weather, seismic/vulcanic,... Corporate strategy Market conditions Social unrest New technologies...
14 Governance According to ISO 21500: Governance is the framework by which an organization is directed and controlled. In effect, this means that Governance stands for an entity or entities that are superior to the project manager
15 What is it about? Define managmenet structure Policies processes and methodologies Authority for decision making Stakeholders responsibilities and accountabilities Interaction, such as reporting on escalation of risk
16 Governance by whom? Usually, the responsibility for maintaining the appropriate Governance of a project is assigned either to the project Sponsor or to a project steering committee
17 Project constraints
18 Typical constraints Scope definition Duration, target date Budget available Resources available Risk level acceptable to the organization Impact of the project itself (external, internal)
19 Project management processes What are the project management processes and knowledge areas?
20 Why managing projects? Projects are: Temporary: defined beginning and end Unique: as opposed to routine operation Projects MUST be managed to be delivered according to their targeted objectives.
21 Definition of project management Project management is the application of knowledge, skills, tools and techniques to meet project requirements. source: PMBoK It is the application of knowledge, skills and techniques to execute projects effectively and efficiently.
22 Get set for success means, for a project manager, to: Select appropriate processes Use defined approach to adapt project to requirements Comply with requirements Balance scope, time, cost, quality, resources and risk
23 5 process groups and Lifecycle (ISO 21500, PMBoK) Initiating Planning Executing Monitoring and controlling Closing
24 Process groups Iterative processes (repeated at each phase for large or complex projects) Controlling Initiating Planning Executing Closing Monitoring
25 Knowledge areas What are potential knowlege area for project management?
26 10 knowledge areas (ISO 21500, PMBoK) Integration Cost Human resources Stakeholder management Procurement Scope Quality Communications Time Risk management
27 Subjects Processes INITIATE PLAN IMPLEMENT MONITOR CLOSE Integration Stakeholder Scope Resource Project charter Project plan Direct project work Control project work and project changes Identify stakeholders Establish project team Scope WBS Define activities Resource estimate Project organization Manage stakeholders Develop project team Control scope Control resources Manage team Close project phase or project Lessons learned Time Cost Risk Quality Sequence activities Activity duration Schedule Cost estimates Budget Identify & assess risks Plan quality Treat risk Quality assurance Control schedule Control cost Control risk Quality control Procurement Plan procurement Select suppliers Administration Communication Plan communication Distribute information Manage communication
28 Develop project charter Purpose? Formal authorization Identify main roles and responsibilities Document needs, project objectives, deliverables... Link to the strategic objectives
29 Identify stakeholders Purpose: Identify and determine the individuals groups etc. Affected by or affecting the project Document their interest and involvement Internal or external Involved or not in the project
30 Establish project team Purpose: acquire required human reousces Team members sometimes sought outside the organization (hiring process) Various level of control over the selection process Important to define skills, expertise and be aware of group dynamics
31 Develop project plans Purpose is to document: Why What Who When How How much often in separate documents combined into one Project management plan is also part of the outputs
32 Scope, WBS & activities definition Purpose: clarify the scope Divide and subdivide the work in smaller units (WBS) Identify, define and document all activities to be performed Include objectives, deliverables, requirements and boundaries in the scope Find adequate level of detail for the Work Breakdown Structure Basis for project planning, implementing, control and closing
33 Project organization Purpose: Define roles responsibilities and authorities Define organizational structure (org chart) Identify team members
34 Sequence activities and schedule Purpose: Identify and document relationship between activities Estimate the time required for each activity Establish overall schedule baseline Important for control and progress evaluation
35 Cost estimates and budget Purpose: Estimate the cost needed to complete each project activity (and the whole project) Budget consists in linking costs to the appropriate elements of the WBS.
36 Risk assessment Purpose: Identify and assess risks Measure and prioritize for potential risk treatment Iterative process
37 Quality planning Purpose: Determine quality requirements and standards applicable to the project Establish means to achieve the identified standards Develop quality plan
38 Procurement planning Purpose: Plan and document procurement strategy and process
39 Communication planning Purpose Determine information and communication needs of the stakeholders Influence of culture and organizational factors
40 Manage project work Purpose: Manage performance of the project work according to the plans and in order to provide the project deliverables => Role of the project manager is to direct the team work
41 Manage stakeholders Purpose: Give appropriate attention to stakeholders needs and expectations Soft skills are primordial here Escalation of critical issues may be required Stakeholder analysis is important
42 Develop project team Purpose: Improve performance and interaction of team members Team motivation Conflict resolution...
43 Risk treatment Purpose: Treat risks identified to enhance opportunities and minimize threats to the project objectives Risk treatment plan is used to manage and control the implementation of the risk treatment
44 Quality assurance Purpose: Review project deliverables to check if they meet the quality requirements Implies among other thing communicating on quality and checking that the quality standards objectives are integrated
45 Suppliers Purpose: Select suppliers on the basis of sound information to be provided by the suppliers and implementation of a systematic selection process
46 Information distribution Purpose: Information to be adequately made available Avoid misunderstandings Provide accurate information in a timely manner Enhance stakeholders cooperation
47 Subjects Processes INITIATE PLAN IMPLEMENT MONITOR CLOSE Integration Stakeholder Scope Resource Project charter Project plan Direct project work Control project work and project changes Identify stakeholders Establish project team Scope WBS Define activities Resource estimate Project organization Manage stakeholders Develop project team Control scope Control resources Manage team Close project phase or project Lessons learned Time Cost Risk Quality Sequence activities Activity duration Schedule Cost estimates Budget Identify & assess risks Plan quality Treat risk Quality assurance Control schedule Control cost Control risk Quality control Procurement Plan procurement Select suppliers Administration Communication Plan communication Distribute information Manage communication
48 Project control Purpose: Monitor cost and schedule variances and take appropriate actions in case of significant variation Develop cost and schedule forecast (estimates at completion)
49 Change control Purpose: Control changes to the project and deliverables Formalize acceptance or rejection of the changes before their implementation Important to keep track of the changes Evaluation of impact on e.g. scope, cost and schedule may be required
50 Control risks Purpose: Follow-up on risk treatment actions (implementation and effect) Use of risk register to keep track of the risks
51 Quality control Purpose: Establish if the project objectives, quality requirements and standards are being met Monitor quality of deliverables and processes Detect defects, analyse and determine preventive actions...
52 Procurement administration Purpose: Manage relationship between buyer and supplier Monitor progress and performance Promote compliance with project requirements
53 Project or project phase closure Purpose: Confirm completion of the project Verify that all deliverables were provided Sometimes required prior to completion (when something goes wrong and decision is made to stop the project
54 Lessons learned Purpose: Evaluate the project Collect experiences Often neglected Beneficial for future proejcts
55 Processes
56 Initiating process group Aim: facilitate formal authorization of the project Main activities: Define project assumptions, boundaries, objectives, constraints => project charter Establish project team Obtain approval and funding (external to the project boundaries) Involve stakeholders
57 Planning process group Aim: develop planning details and baseline against which the project can be managed and monitored Main activities: Develop project scope, cost, schedule and activities Resource planning Risk identification and assessment Quality planning Procurement planning Communication planning
58 Implementing process group Aim: coordinate people & resources and integrate & perform activities in accordance with the plan Main activities: Manage project team and direct project work Manage stakeholders Treat risks Suppliers selection Quality assurance Information flow
59 Controlling process group Aim: observe the project implementation to identify potential problems in a timely manner and take corrective action when necessary Main activities: Scope, cost and time control Change management Risk control Quality control Administration of suppliers Communication management Planning revision according to plan-do-check-act cycle
60 Closing process group Aim: formally terminate all activities of a project, hand-off the final project product... or close a cancelled project Main activities: Project products and documentation hand-over Contract closure Lessons learned
61 Interactions, input and outputs Business plan Contract... Previous phase results Lessons learned from other projects Approved changes INITIATE PLAN IMPLEMENT MONITOR CLOSE Plans and risk register Change request Project charter Project plans Lessons learned Corrective actions Closure report Progress report Approved changes
62 Integration Includes activities to: Identify Define Combine Unify and coordinate the project management activities Why? Because all processes interact In practice: implemented in various manner depending on the project particulars. Not to be overlooked.
63 Stakeholders Includes activities to manage: Project sponsors Customers Other stakeholders
64 Scope management To ensure that all the work required (and nothing additional) is included to complete the project Typical activities Scope planning Scope definition Work Breakdown Structure Scope verification Scope control
65 Resource management Processes to organize and manage the project team (i.e. people assigned given roles and responsibilities) Typical activitities: Human resource planning Acquire and develop the project team Manage the project team
66 Time management Purpose: accomplish the project in a timely manner Typical activities: Activity definition and sequencing Activity duration estimating Schedule development and control
67 Cost management Purpose: complete the project within approved budget Typical activities: Cost estimating Cost control Budgeting
68 Risk management Objective: increase the probability and impact of positive events and decrease probability and impact of events having adverse impact on the project Typical activities Risk management planning Risk assessment Risk response planning Risk monitoring and control
69 Quality management Purpose: address quality aspects of the project deliverables and of the project processes. The objective is to meet stakeholders quality requirements. Typical activities: Quality planning Quality assurance Quality control
70 Procurement management Purpose: purchase products, services or results from outside the project team to perform the project. Typical activities: Planning purchase and contracting Request for proposal, bid, quotations,... Select seller Contract and contract administration Contract closure
71 Communication management Purpose: ensure timely and appropriate information flow Typical activities Communication planning Information distribution Performance reporting (e.g. Monthly report)
72 References and further readings ISO Guidance on project management Project management body of Knowledge
73 6th African Rift Geothermal Conference ARGeo-C6 Short Course 1 Project Management for Geothermal Development Organized by: Financed by: Coordinator: Lecturers: United Nations University Geothermal Training Programme (UNU-GTP) Icelandic Ministry for Foreign Affairs ICEIDA and Nordic Development Fund Ingimar G. Haraldsson, UNU-GTP Anthony Ng ang a Ngigi, Geothermal Development Company, Kenya Carine Chatenay, Verkís Consulting Engineers, Iceland Peketsa Mwaro Mangi, Kenya Electricity Generating Company, Kenya Yngvi Gudmundsson, Verkís Consulting Engineers, Iceland