Electrical Energy Conversion and Power Systems

Universidad de Oviedo

Lesson 5 Conventional Power Plant Description

Lesson 1 Project Management overview

Semester 3 Project Management

Lecturer: Ceferino Viescas Fernndez

1. Project Management Overview: Index

1.1. 1.2 1.3. 1.4 1.5 1.6 1.7 1.8 1.9 INTRODUCTION TO PROJECT MANAGEMENT PREVIOUS ANALISYS PROJECT ORGANIZATION SCOPE-TIME MANAGEMENT COST MANAGEMENT PURCHASING MANAGEMENT HUMAN RESOURCES QUALITY MANAGEMENT PROJECT COMMUNICATIONS

1.10 RISK MANAGEMENT 1.11 PROJECT CLOSING

Based on PMBOK (Project Management Body of Knowledge)
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1.1 Project Management Overview: Introduction

Organizations perform work and work involves either operations and projects Project: Temporary endeavour undertaking to create a unique product or service Operations and projects share characteristics but they are different. Operations are ongoing and repetitive tasks and project temporary and unique The project because is temporary (has a definite beginning and end) and unique (doing something has never been done before) is developed under Constraints: - Scope: Amount of tasks required to complete the work - Budget: Amount of money available to complete the work - Schedule: Planning should be followed to complete the work on time - Risks: Uncertainties and variability which can change any initial or ongoing project characteristic (budget, scope, schedule, quality, ...) - Quality: Product or service properties required on job to be compliance with final goal on work - Resources: Available tools and support to develop work Constraints are existing characteristics in operations as well
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1.1 Project Management Overview: Introduction

The triple restriction: - Compensate three sides to complete project - Art & Science combination - Continuous effort

COST

SCOPE

QUALITY

TIME
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1.1 Project Management Overview: Introduction

Project Management: Is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs or expectation from a project

Resources Human + Material + Eco-Fin

Restrictions Environmental + Social

Compromises Organization

Initiative

Project Management Methodology

Documentation Application

PROJECT
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1.1 Project Management Overview: Introduction

Project Management Involves balancing competing demands among scope, cost, time, and quality (Identified requirements) with stakeholders expectations (unidentified requirements). Managing a project means leading an organization aligning all agents in order to complete project under constraints or even improve them. From process perspective, managing a project involves be an expertise applying and integrating all phases in project life: - Launching project - Organizing and planning - Execution - Control and monitoring - Closing project

1.1 Project Management Overview: Introduction

Project Lifecycle Lifecycle phases vs resources expending distribution (Cost and staff)

1.1 Project Management Overview: Introduction

Project Lifecycle example: Software development (per Muench)

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1.1 Project Management Overview: Introduction

Impact of time in project - Risk and uncertainties are reducing with project growing - Interested agents influence is high starting project but small once project has run and smaller the higher project is defined and executed (less changes margin) - Capability to change final product characteristics without affecting cost is higher at project beginning and reduces progressively while approaching to conclusion

1.2 Project Management Overview: Previous Analysis

Before starting the project, it is required pre-study to validate it: - Co. executive role - Project stakeholders role - Needs - Targets - Requirements - Selection / Approval

Example: Construction project life (Morris) Previous analysis: Stage I

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1.2 Project Management Overview: Previous Analysis Understanding Company Executive role: - Integrated by CEO (Chief Executive Officer) and Division Chief executives in general - They will select and launch the projects - Project manager should clarify and answer to: * What Co. Executives need from me? * What do I need from Co. Executives?

Key project stakeholders include all agents involved: - Project Manager: Responsible for leading and carrying out the project - Customers: Individual or organization who will use de project product - Performing organization: Enterprise whose employees are mostly direct involved in doing the project word - Sponsor: Individual or group within the performing organization who provides financial resources, in cash or kind for the project

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1.2 Project Management Overview: Previous Analysis Needs: Essential to valuate for project prospecting Project origin takes place where it is requested to satisfy someones need. Lets see product obsolescence, competitive forces, new client requirements, or employees and partners proposals - Needs must not be confused with desires - Clients dont know or dont understand always their real needs - There may be different level needs: new demand, support, legal/health policy, ... - Needs get known by environment and context study approach and obtain through documents revision, interviews, surveys and analysis Targets: Once potential project is identified, target of project should be totally clear - Who is the client?. Individual, organization, department, or system - Which is the goal?. An agreement between someone who needs something and someone who can provide it. SMART (Specific/Measurable/Agreed-upon/Realistic/Time-constrained) New installation or infrastructure, Installation ready or modified, new product, new standard skill or revision, new available service, etc - Which are the specifications /characteristics under project can be developed? and which conditions provide competitive advantages? 12

1.2 Project Management Overview: Previous Analysis Requirements - Clients demand functional request and sometimes technical request as well - Project team should re-write the functional client request to project format: Structured to functional and technical requirements Functional requirements: What? - What it is and What it does - Comprehensible - Characteristics and capacity - Client oriented Technical requirements: How? - Detailed components - Particular or specific technology - Efficiency specifications - Project team oriented

Different tools can be used to help constructing requirement skim - Checklist - Matrix box What / How / When

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1.2 Project Management Overview: Previous Analysis Selection / Approval - Project can have several alternatives and only one should take place: selection - Making decision point : is project going on?: Approval - Once functional and technical requirements are compliance, Finance and Economic criteria are used for project selection and approval . Usually it is searched the most valuable one compatible with qualitative factors Economic-finance criteria tools - BCR (Benefit-cost ratio) - IRP (Investment Return Period) - IRR (Internal Rate Return) - NPV (Net present value) and variants: EVA / CVA (Economic/Cash Value Added) Qualitative factors - Interested people or client disposal - Organization / Corporative settings - Risk Analysis
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1.3 Project Management Overview: Project organization

Project management knowledge area and Project management process PMBOK

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1.3 Project Management Overview: Project organization

Keys for Project success are: Having right requirements (and right specification) Having right planning Having right management and control These three points can not be gathered without a right project ORGANIZATION
Which involves - Integration management - Task Definition - Project team - Project process, interactions, and communications - Project planning - Budget - Quality control - Project closing and client transferring
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1.3 Project Management Overview: Project organization Project organization: Key success to convert opportunity into expected application on time and cost

Project organization

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1.3 Project Management Overview: Project organization Integration Management: As a Project Manager responsibility, all resources and inputs should be integrated through project to convert and achieve expected output

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1.3 Project Management Overview: Project organization Task definition Project standing up requires work. The way working is structured is through tasks. Tasks are different working package inside all project which complete a statement in project and can be realize as an individual flow line Constructing tasks involves: - Understand project objective - Decomposition activities in working segments: Tasks - Assign task to team: Crossing matrix team-tasks - Keep following sessions with project team, the client, and rest of interesting people in order to match project proper on-going and assure support to complete pendant items when it is required

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1.3 Project Management Overview: Project organization Project team Once scope is defined, it is required a team to carry out the tasks - Project team should be adequate in size and capacity for task working out - Responsibilities assignment: Every task should have a responsible - Qualities: High performance, Sharing goals, interdependence - Structure: Functional line, Matrix, project dependence hierarqy Project dimensions more typical are two Project teams splited for each dimension

P roject

MANAGEMENT CONSTRUCTION

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1.3 Project Management Overview: Project organization Project team: Management dimension
Working colaboration

Negotiation Conflict resolution Reflexion

tools
Design

Data management intervention

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1.3 Project Management Overview: Project organization Project team: Construction dimension
Team working

tools

Orders

administration Charts / scheems

Intelectual-phisical working Material management

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1.3 Project Management Overview: Project organization Project process Process is a series of actions bringing about a result Management process can be organized into 5 groups: - Initiating: Recognizing a project or phase should begin - Planning: Devising a workable scheme to accomplish the business need that the project was taken to address - Executing: Coordinating all resources to carry out the project - Controlling: Ensuring that projects objectives are met by monitoring and correct when necessary - Closing: Formalizing acceptance of project and transferring for client use

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1.3 Project Management Overview: Project organization Project process interactions Within each group, individual groups are linked by their inputs and outputs - Inputs: Documentable items that will be acted upon - Tools and techniques: Mechanisms applied to inputs to create outputs - Outputs: Documentable items result of the process Initiating process Committing the organization to initiate next phases of project Planning process - Core process: have clear dependencies and are performed in the same order in most of process: Scope planning and definition, Activity definition, sequencing, duration, schedule development, resource planning, cost estimating and planning , project plan development - Facilitating process: interactions among other planning processes more dependant on nature of project: Quality and organization planning, staff acquisition, communication planning, risk identification, evaluation, and response development, procurement planning
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1.3 Project Management Overview: Project organization Executing process Is the densest phase, where project comes down and spread out into reality and where major part of resource spending take place. Core and facilitating process: Project plan execution, scope verification, quality assurance, team development, information distribution, solicitation, contract administration Controlling process - Project performance is measured regularly to identify variances from the plan. Closing process The work is done and should be presented and transfer. Closing should be formalized: Administrative and contractually

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1.3 Project Management Overview: Project organization Project planning Calendar planning : - Determination of time to complete project - Identification of relationship among tasks Planning tools - Network diagrams - Gantt charts - Milestone charts - Project calendars Special concepts - Critical path: Longest of all project paths / Path with no admissible delay / Confluence path common for several processes - Admissible delay: Time which is possible delay an activity without affecting project finishing date - Crashing: Increasing Resources in order to accelerate project calendar - Fast tracking: Increasing project tasks simultaneously in order to accelerate project deadline
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1.3 Project Management Overview: Project organization Budget Cost budgeting involves allocating the overall cost estimates to individual cost items in order to establish a cost baseline for measuring project performance

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1.3 Project Management Overview: Project organization Project closing Project is not finished until is not closed. Closing means: - Scope finishing - Administrative closing - Contract close out - Client Transferring: * Complete all deliverables (documentation, tests, checkings, warranties, ...) * Product / service on going and verified with client * Client Training Even having finished all tasks and scope, if client has not received all deliverable items (project transfer not completed), while Client has no perception of finishing, the most important aspect, client satisfaction, is uncompleted. In other words, job is not done, and project not completed

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1.4 Project Management Overview: Scope-Time Management

Requirement collection Client demands (functional) Project Initiatives

Restrictions Environ. + Tech Social Conditions Organization Conditions Context

Project Definition and Engineering

Project Requirements

Project Team

Project Target

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1.4 Project Management Overview: Scope-Time Management

Scope definition and planning - Scope: Amount of products and services provided by project
(The work should be done in order to deliver a product with specific functions and features)

- Scope planning: Process to create and document the project advance tasks For scope definition and planning: - Developing a written scope statement as the basis for future project decisions - Subdividing the major project deliverables into smaller more manageable components - Activity decomposition in working segments and sub-segments until assignment and follow-up level: elemental activities that have no interference with others and can be done within its own only planning
These working packets may require other finishing packets to begin (interaction) but once ready, its activity can be fully done and completed

PMBOK guide recommends WBS tool for scope definition. Work Breakdown Structure templates: Deliverable oriented project element group which organize and define total project scope. Every descend level represents a more detailed project task scope

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1.4 Project Management Overview: Scope-Time Management

Sample of WBS for Waste Water treatment Plant.

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1.4 Project Management Overview: Scope-Time Management

Scope verification Formalizing acceptance of the project scope

Scope control Controlling changes to project scope

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1.4 Project Management Overview: Scope-Time Management

Time Management: Activity definition Identifying and documenting the specific activities that must be performed to produce project deliverables - Activities are composed by tasks - WBS (Work Breakdown Structure) will have identified deliverables which should be provided in activities INPUTS WBS
Deliverable project element

TOOLS AND TECHNIQUES Decomposition

OUTPUTS Activity list

All activities to be performed in the project

Scope Statement

Project objective steps

Historical information
Similar project references

Constraints
Option limits

Subdividing project elements into smaller more manageable WBS and activity list can be develop concurrently

Supporting detail

Templates

Assumptions

Factors considered true involves degree of risk

Activity list created attending WBS update some flow line execution criteria Time vision can modify initial WBS adding or eliminating deliverables

Documentation of all assumptions and constraints to facilitate the use in other project processes

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1.4 Project Management Overview: Scope-Time Management

Time Management: Activity sequencing Identifying and documenting interactivity dependencies

ADM example

INPUTS
Activity list Product Description
Inherent to nature task

TOOLS AND TECHNIQUES PDM

OUTPUTS

Characterist./ Lay out/...

Mandatory dependencies Discretionary dependencies

Defined by project team: best practices, efficiency,... Relation-ship with no project activities

(Precedence Diagramming Method)

ADM

External dependencies Constraints Assumptions

(Arrow Diagramming Method) CDM (Condition Diagramming Method) Network Templates

Schematic display of projects activities and logical relationship Partic.case: PERT chart (Program Evaluation and Review Technique)

Project networking diagram

Activity list update

Relationship corrections may modify initial list

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1.4 Project Management Overview: Scope-Time Management

Time Management: Activity duration estimation Estimating the number of work periods which will be needed to complete individual activities

Activity duration estimation: Techniques - Expert judgment: Historical information (expertise) or estimation with valuated risk - Analogous estimating: top-down estimating. Using similar activities - Simulation: Calculating multiple durations with different sets of assumptions (Monte Carlo Method analysis is commonly used)
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1.4 Project Management Overview: Scope-Time Management

Time Management: Schedule Development Determining star and finish dates for project activities (iterations with cost estimation will be required to meet likely project schedule)

Schedule Development techniques

- Mathematical analysis * CPM. Critical Path Method * GERT. Graphical evaluation and Review Technique * PERT. Program evaluation and Review Technique - Duration Compression * Crashing * Fast Tracking - Simulation - Resource levelling heuristics - Project Management Software

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1.4 Project Management Overview: Scope-Time Management

Examples Schedule development

Bar (Gantt) chart PERT duration calculation

Milestone chart Time-scaled network diagram

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1.4 Project Management Overview: Scope-Time Management

Time Management: Schedule Control Concerning with: - Influencing the factors which create schedule changes to ensure they are beneficial - Determining that the schedule has changed - Managing the actual changes when and as they occur

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1.5 Project Management Overview: Cost Management

Resource planning It is the based for cost management: Determining what resources (people, equipment, and materials) and what quantities of each should be used to perform project activities Cost estimation and budgeting Determining approximation of the cost of resources to be used and allocating the overall cost estimate to individual work items

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1.5 Project Management Overview: Cost Management

Cost controlling Controlling changes to the project budget

Budget project revision: EAC (Estimate At Completion) - Actuals to date plus remaining project budget modified by performance factors - Actuals to date plus new estimating for all remaining work - Actuals to date plus remaining budget

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1.5 Project Management Overview: Cost Management

Controlling how is going the project Project following control and deviations: Cost, Time, Scope

Following Index - PV: Planning value. Planned spending for a task - AC: Actual cost. Actual money spent in a task - EV: Earned Value. Budgeted cost of actual work done. (%completion*PV) - BAC: Budget at Completion. Total budget cost revised - CV (Cost Variance)= EV-AC / CPI (Cost Performance Index)= EV/AV - SV (Schedule Variance)= EV-PV / SPI (Schedule Performance Index)= EV/PV
Interpretation: CV, SV positive and CPI, SPI >1 indicates good performing in project on-going
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1.6 Project Management Overview: Procurement Management

Procurement and Solicitation Planning Determining what to purchase and when Documenting product requirements and identifying potential sources Solicitation: Tendering process Obtaining quotations, bids, offer, or proposals as appropriate Source selection Choosing from among potential sellers Contract administration Managing and formalizing relationship with sellers and providers Contract close-out Completion and settlement of the contract including resolution of any open items
Interference Many times procurement restrictions can condition schedule project in time or scope planning It is required introduce conditions in schedule control forcing a new update revision
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1.6 Project Management Overview: Procurement Management

Solicitation execution Very dependant on enterprise policy

Source selection Very dependant on company policy Most usual audited process

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1.7 Project Management Overview: Human resources

Organizational planning: Needs analysis Identifying, documenting, and assigning project roles, responsibilities, and reporting relationships Project team integration Team building: common goals and procedures Team aligning: Meet where client want achieve with team addressing Interdependence and dealing with conflict Project team development Developing individual and group skills to enhance project performance Project team management Leading, communicating, and negotiating Delegating, motivating, coaching, and mentoring Performance appraisal, recruitment, retention, labour relation, H&S regulation
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1.7 Project Management Overview: Human resources

Responsibility assignment matrix

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1.7 Project Management Overview: Human resources

Staffing management plan

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1.8 Project Management Overview: Quality Management

Quality planning Identifying which quality standards are relevant to the project and determining how to satisfy them Quality assurance Evaluating overall project performance on a regular basis to provide confidence that the project will provide the relevant quality standards The output should be quality improvement Quality control Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance Modern project management should be aware to modern quality disciplines (ISO 9000 / TQM) which recognize the importance of: - Customer satisfaction: Customer satisfaction should be met or exceed - Prevention over inspection: The cost of avoiding mistakes is always less than the cost of correcting them - Management responsibility: success requires the participation of all members of the team and is management responsibility provide resources needed to succeed - Process within phases: cycle plan-do-check.act

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1.8 Project Management Overview: Quality Management

Quality planning

Cause-effect diagram

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1.8 Project Management Overview: Quality Management

Quality control techniques: Pareto diagram

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1.9 Project Management Overview: Project communication

Communication planning Determining the communication needs of the stakeholders: Who, What, When and How it will be given to them Information distribution Making needed information available to project stakeholders in a timely manner Stakeholders management Maintaining stakeholders informed regularly and in time about project performance Environmental, Social, and organization relationship state or any other external influence Reporting Collecting and disseminating performance information: status reporting, progress measurement, and forecasting

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1.10 Project Management Overview: Risk Management

Risk identification Determining which risks are likely to affect the project and documenting the characteristics of each Risk analysis: evaluation Evaluating risks and risk interactions to asses the range of possible project outcomes Analyse sensibility and apply to project work out probability Risk response development Defining enhancement steps for opportunities and responses to threats Risk response control Responding to change in risk over the course of the project

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1.10 Project Management Overview: Risk Management

Risk identification

Risk evaluation

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1.10 Project Management Overview: Risk Management

Risk evaluation techniques: Montecarlo Simulation

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1.10 Project Management Overview: Risk Management

Risk response development

Risk response control

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1.11 Project Management Overview: Project Closing

Clients acceptance Formalizing with client that everything expected in the project has been done From project team: check internal working out and WBS completed With client: Show and transfer application and provide all derivables include documentation and training Administrative closing Closing books and contracts. Signing with client Provide warranties and bonds Let ready documentation and project files Feedback and lessons learnt Collect and document: Relevant, significant, detailed, classified and accessible

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