PROJECT MANAGEMENT

TOOLKIT
Manage Projects Professionally

Important Stuf

Setting Standards

What setting you want today?

What learning environment

would you prefer?

Formal or Informal?

Lecture-based or interactive?

Would you like others to talk

on the phone during the
program?
Would you like to receive
rewards for good performance?

Important Stuf

Setting Standards

Not a training program

This is an EXPERIENCE
Learning Experience
for ALL of us
Be ready to give and
receive constructive
criticism

Learning Contract

A contract between
YOU and YOURSELF
Write ONLY what you
want to remember
later
Not more than 10
points

The Only Barrier to

Learning the Truth is to
Assume You Already
Know It

Confucius

Preparation
Why perform Project Management

Project Intro
Understanding the Expectation Game

What is a Project

Project Definition : "A temporary endeavor undertaken to create a

unique product, service or result"

Features

Temporary: Has a finite duration, project ceases when its objective is achieved. Does
not mean short duration. Normally, the product/service will outlive the project
Unique : Doing something that has not been done earlier
Progressive Elaboration: "Developing in steps, and continuing in increments".
Development of details progressively

Environment

Constantly changing
Building and Dismantling
Precedes Operations

What is a Project

Projects and Operations

Similarities:

Diferences:

Performed by people
Constrained by limited resources
Planned, executed and controlled
Operations: Ongoing, repetitive, necessary for sustaining the business
Projects: Temporary, unique.

Projects and Strategic Planning

Projects are used to achieve strategic plans

In response to market demands, customer requests, organizational needs,
technological advances, legal requirements.

What is Project Management

Application of

Knowledge (e.g. Domain areas

- Pharmaceutical, construction,
etc.)
Skills (Managing)
Tools & Techniques (Software)
Project activities (e.g Time
Management, Cost
Management, etc.)

PM is accomplished through
processes

Project work typically

involves

The GOAL

Project objectives

Prepare Plan Execute - Close

Identifying requirements
Defining objectives
Balancing the competing
demands for Scope, Time, Cost,
and Quality
Managing stakeholders

Why Project Management?

To enhance the probability of project success

To focus on objectives - Scope, Time, Cost, Quality & Risk
For efective response to rapid changes
To manage efective utilization of resources
To address stakeholders interests
To manage risks efectively
Achieve Financial Efficiency

Project Cost
Project Time
Project Quality

Lessons Learnt
Create re-usable data and information for future use

Project Lifecycle

No ideal project lifecyle

It defines

What work to do in each

phase
What deliverables to be
generated
Who all are involved in
each phase
How to manage each
phase

Project Lifecycle

Common characteristics

Phases are generally

sequential
Cost and staffing are low at
the start, peak in the middle
and are low again
Risk is high at the start and
slowly declines
Influence of stakeholders is
highest at the start and
declines slowly

Project Phases

Preparaing

Panning

Defines and refines objectives, and plans the course of actions required to attain the
objectives and scope that the project was undertaken to address

Executing

Defines and authorizes the project or a project phase

Integrates people and other resources to carry out the project management plan for the
project
Regularly measures and monitors progress to identify variances from the project management
plan so that corrective action can be taken when necessary to meet project objectives

Closing

Formalizes the acceptance of the product, service or result, and brings the project or a project
phase to an orderly end

Project Charter

The document that formally authorizes the project

Authorizes Project Manager to apply organizational
resources
PM should be assigned at the earliest feasible, but
should always be assigned before start of the planning
phase, or during charter development
The Initiator or Sponsor is external to the project
organization at a level appropriate to funding the
project

Project Charter

Project Charter should address the following

Requirements of the customers, sponsors and other stakeholders

Business needs, project justification, strategic plan
Assigned PM and authority (some other resources may also be pre-assigned)
Product description/deliverables
Summary milestone schedule
Stakeholder influences
Functional organization and its participation
Constraints and assumptions relating to organization, environment and external
factors
Summary budget
Any change in the Project Charter should question the continuance of the project

Planning
Well planned is almost done

Project Activity Planning

The Columbus Disease

He left but he didnt know where he
was going
When he got there he didnt know
where he was
When he got back he didnt know
where he had been
And he did this three times in seven
years

Project Planning

Planning is a process not an outcome

Planning should address

Setting the boundaries | Scope statement

Activity planning
Activity schedule development
Cost planning
Risk planning

Scope Statement

Project scope statement should address the following areas:

Project and product objectives

Product/service requirements and characteristics
Product acceptance criteria
Project boundaries What is included and what is not
Project requirements and deliverables
Project constraints
Project assumptions
Initial project organization
Initial defined risks
Schedule milestones
Initial Work Breakdown Structure

Project Activity Planning

Steps to develop project activity schedule

Specify the individual activities (WBS)

Determine the sequence of these activities (Activity Table)
Draw a sequence diagram (AON or AOA)
Estimate the completion time for each activity (Activity
Estimates)
Identify the critical path (Using CPM)
Create a schedule of activities
Update the schedule / diagram as the project progresses

Activity Identification Tool - WBS

Deliverable-oriented hierarchical decompositions of project work

Creates the required deliverables
WBS organizes and defines the total scope of the project
Subdivides the project work into smaller, more manageable
pieces of work
Has descending levels with increasingly detailed definition of the
project work
Lowest level WBS components are called work packages; they
can be scheduled, cost-estimated, monitored and controlled

WBS

Characteristics

Manageable (specific
authority/responsibility
assigned)
Independent (with respect
to other elements
o( projects)
Integrateable {so that the
total package can be seen)
Measurable (each
deliverable)

Purpose

To simplify a complex project - it is a

summation of elements
Planning can be better performed
Duration, cost and budget can be
established
Time, expenditure, and performance can
be tracked
Network and Control Planning can be
initiated
Responsibilities and Resources can be
assigned
Omission/duplication of tasks can be
avoided
Provide a common structure and coding
system

Creating WBS

Templates
Decomposition

Subdivision of project
deliverables into smaller
chunks
Goal : create work packages
May not be possible for
deliverables that are far into
the future
Diferent deliverables may
have diferent levels

Sample WBS

Sample WBS

Task Sequencing

Identification of
logical sequencing
among schedule
activities
Allows for a smooth
flow of project
activities
Helps to identify the
most efficient way to

Task Sequencing Tool - PDM

Precedence Diagram Method

Helps to develop project schedule

Identifies dependencies of
diferent activities to establish the
fastest path to task completion
Most useful for complex projects
Visual display helps to
communicate activity execution
Identifies missing activities
Also known as AON

PDM

Terms to remember

Four types of dependencies

Events
Activity
Dependency
Finish to Start (most common)
Start to Start
Finish to Finish
Start to Finish (rarely used)

Practice

Building a PDM

Task Sequencing Tool - ADM

Arrow Diagram Method

Another way to create a
schedule network diagram
AOA Activity on Arrow
Diference

Activities are identified on arrows

Activities connect on nodes to show
dependencies
Only has Finish to Start dependency
Can also have dummy nodes
Less commonly used in project
planning

Sample ADM

Practice

Perform Task
Sequencing through

PDM
ADM

Sample Project Activities

Duration Estimate Tools

Parametric Estimate

Determined by multiplying
the quantity of work by
the productivity rate

Construction work per

square foot
Design work labor hour
per design
Drilling time taken per
cubic inch

Three-point Estimate

Helps to consider the

amount of risk in the
initial estimate
Considers 3 types of
estimates

Most likely
Optimistic
Pessimistic

Schedule Development

Outlines the proposed timelines

for the project activities

Is an iterative process

Is typically completed AFTER

activity duration estimate

Serves as the baseline against

which project progress can be
tracked

Schedule Development Tool - CPM

Dupont developed the concept in 1957 to address the shutting of plants

for maintenance
Helps to identify the path of activities where any delay WILL cause a delay
in the project timeline
For activities outside the Critical Path, there is tolerance for

Used to be carried out by hand now there are software available

Late start
Late finish
Early start
MS Project
Primavera

Schedule activities on the Critical Path are called Critical Activities

More on CPM

Calculated by estimating the following 4 parameters for each activity

ES - Earliest start time

EF - Earliest finish time

Latest time at which the activity can be completed without delaying the project

Slack Time

Equal to the latest finish time minus the time required to complete the activity

LF - Latest finish time

Equal to the earliest start time for the activity plus the time required to complete the activity

LS - Latest start time

Earliest time at which the activity can start given that its precedent activities must be completed first

Time between its earliest and latest start time

Amount of time that you can delay an activity without delaying the project schedule

Critical Path

A path in which all activities have ES = LS and EF = LF

Why CPM

CPM helps to identify

Diferent activities that MUST be completed on time for

the project to stay on schedule
Which activities can be delayed and their resources can
be reallocated
Minimum duration of the project
Early start and late start time for each activity in the
schedule

Schedule Compression Tools

Schedule Compression

Helps to shorten project schedule WITHOUT changing the project scope

Compression techniques

Crashing

Cost and Time tradeofs are analyzed to determine the greatest amount of project
compression
Often results in increased cost

Fast Tracking

Sequenced activities are performed in parallel

E.g. foundation work is started before detailed architecture drawings are complete
Increases project risks

Project Cost Planning

Why Perform Cost Planning

Helps to manage the cost of the

resources needed to complete
schedule activities
Projects cash outflows at diferent
stages of the project
Helps to highlight the risk of major
cost over-runs
Establishes a baseline to compare
with the actual project cost
Helps the sponsors to decide
whether to continue or shut the
project

Cost Planning Tools

Bottom-up Estimating

Starts from Work Packages from bottom level activities

Add up their costs and work upwards
Aggregate the costs to reach a final figure
Pros and Cons

Upside is more accurate, cost changes can be recorded

easily
Downside takes more time, requires detailed knowledge

Parametric Estimating (discussed earlier)

Cost Planning Tools

Top-down Estimating (Analogous Estimating)

Takes cost inspiration from similar projects, tasks

Starts from the top and work downwards
Divide the cost figures among diferent sub-projects or tasks
Pros and Cons

Upside quick and easy to use, good for early-stage planning

Downside often is very inaccurate, can mislead if used at a later stage

Reserve Analysis

Contingency factor what-if scenario

Downside can over-state the cost estimate of schedule activity
Remedy aggregate reserves for a group of activity and assign it to a dummy
task

Inputs for Cost Planning

Enterprise Environment Factors

Organizational Process Assets
Project Scope Statement
Work Breakdown Structure
WBS Dictionary
Project Management Plan
Schedule Management Plan
Staffing Management Plan
Risk Register

Project Risk Planning

What is Project Risk

Probability of an uncertain event or condition with a positive or

negative efect on any one of the following project objectives

Scope
Cost
Time
Quality

Examples

Probability of delay in acquiring a permit from the government for an aspect of

the project
Probability of unavailability of adequate resources assigned for a particular task
Probability of increase in resource cost

Understand Risk

Types of risks

Known risks something we can plan for

Unknown risks we are caught of guard

Risks threats or opportunities?

Taking risk against profitable gain

Risks that ofer opportunities

Using Fast Tracking to shorten project timeline

Lowering of taxes on project resources, brining cost down

Attitude toward risk?

Fear and avoid

Accept and face

Risk Planning Process

Risk Identification

Documenting which risks might afect the project

Is an iterative process

Leads commonly to qualitative analysis

Grouping of risks with respect

PM should decide the frequency of review

How they relate to each other

How they impact the project objectives
Their probability

Risk Register

A collection of all types of risks and their characteristics

This is the output of the process

Risk Identification Tools

Brainstorming

Gather with diferent stakeholders in

separate groups
Collect the risks they identify
Consolidate

Delphi Technique

Asks a group of experts anonymously

a set of questions about potential
risks
Consolidate data
Send it to the experts again and seek
comment
Repeat 3-5 times

SWOT Analysis

Strengths
Weaknesses
Opportunities
Threats (these are your risks)

Checklist Analysis

Historical data
Risk Register from another
project
Use the data gathered to
prepare a checklist

Sample Risk Register

Risk Impact Scales

Qualitative Risk Analysis

Helps to prioritize project

risks
Sets you up for the next step

Risk probability
Risk impact
Risk tolerance for Scope, Cost,
Quality and Time

Advantages

Either quantitative risk analysis

Or risk response planning

Main ingredients

Easy and simple to use

Gives a ballpark figure
of risk impact value

Disadvantages

Too simple for complex

projects
May be inaccurate

Tool | Risk Matrix

Helps you to

Visualize the efect of

diferent risks
Gives you the big
picture

Risk Matrix
High
Probability
Low Impact

High
Probability
High Impact

Low Probability
Low Impact

Low Probability
High Impact

Charts risks

X-axis Risk Impact

Y-axis Risk Probability

Tool | Probability-Impact Matrix

Risk probability

Risk impact

Positive risk opportunities

Negative risk threats

Risk Factor

Potential efect of a certain risk on any of the four project objectives: scope, time, quality and
cost

Assesses both positive as well as negative risk

Likelihood that a certain probability will occur

Result of multiplying risk probability with risk impact

Gives the final impact of a certain risk

Risk data quality

Ask experts avoid bias look at historical data

Sample | Probability-Impact Matrix

Project Objective

To establish a new territorial

office

Potential Risks

Inflation higher than

estimated
Project team members leaving
before project completion
Changes in project scope
Security situation of the area

Probabi
lity

Impact

P*I=
Final
Risk

Higher
Inflation

0.4

0.7

0.28

Higher
Turnover
(Project
Team)

0.1

0.2

0.02

Scope
Change

0.2

0.6

0.12

Security
Situation

0.5

0.5

0.25

Risk
Name

Qualitative Risk Analysis | Output

Qualitative analysis results in

Ranking of diferent risks

Grouping of risks
List of risks requiring response in the near-term / longterm
List of risks for additional analysis

Risk Response Planning

Process of developing responses to

Enhance opportunities
Reduce threats

Should address risks based on their Risk Factor or

priority
Helps to create some cushion by

Allocating extra budget

Allocating extra time

Tools | Risk Response Strategies

Responding to Threats

Avoid

Responding to
Opportunities

Transfer

Change the PM plan to avoid a risk

Shifting the impact and ownership

of risk to third party (insurance
policy)

Mitigate

Work to reduce the probability or

impact of a risk (test marketing,
prototyping)
Proactive Vs Reactive

Exploit

Share

Seek to face the risk head on

(assigning better talent to a
task)
Sharing the ownership with a
third party (JVs)

Enhance

Seek to increase the probability

or impact of the positive risk

Executing
Executing to Perfection

Project Communication Management

Communicating What Needs Execution

Communications Management

Objective

To ensure timely and appropriate generation, collection,

distribution, storage, retrieval and ultimate disposition of
project information

Processes for communication management

Information distribution
Performance reporting
Stakeholder communication management

Information Distribution

Broad Strategy

Need-to-know basis

Restricts access Keeps security intact Maintains strong

lines of separation Keeps the focus of the members intact

Want-to-know basis

Opens access Risks information proliferation Allows for

involvement May increase distraction

Information Distribution | Tools

Distribution Triggers

Formal

Event significance identification

Style

Frequency

Event-based reports / meetings

No specific formats

Isolated meetings
Project team meetings
E-sharing thru project management
systems
E-mails and file sharing systems

Content

High-level

Standard templates

Informal

Methods

Time-based reports / meetings

Less details
Focuses on output / deliverable

Low-level

More details
Focuses on processes

Performance Reporting

Purpose

To continuously assess current project performance

against project estimated baselines related to

Scope
Quality
Time
Cost

Performance Reporting | Tool

KPI Key Performance Indicator

Why

Numbers dont lie

Helps to measure performance objectively

Remember that KPIs should

Connect with either one of the four project objectives (SCTQ)

Measure live project performance
Should be designed so they result in numbers or %
Will measure the performance result against baseline
estimates

Stakeholder Communication
Management

Purpose

To satisfy the needs of and resolve issues with project

stakeholders

Suggested Strategy

Need to know basis well-defined lines of

communication separation
Active engagement answer before they question

Risk Management
Communicating What Needs Execution

Risk Management

Objective

Executing the risk plans and reassessing them to meet

project objectives

Risk Monitoring and Control

Assess the assumption of earlier identified risks

Monitor the progress of risk response execution
Identify and analyze new risks

Risk Management | Tool

Risk Audit

Variance Analysis

Examines and documents the risk responses and compares it against the
established baselines
Subjective activity helps to see the trend and reassess the risk responses
Identifies how much the actual progress has deviated from the baseline estimates
Statistical method
Provides an objective analysis

Reserve Analysis

Risks will occur your reserves will get consumed, but how much?
Analyze the use of reserves consumption

Quality Management

Quality Management

Quality

Purpose

Degree to which a set of inherent characteristics meet requirements

To ensure the baseline quality targets are met through

Achieved through

Quality Assurance

To ensure that processes are being followed as planned and proposed

Quality Control

To ensure specific project deliverables meet the quality standard that was
planned and proposed

Quality Assurance

Application of planned and systematic activities to ensure that

processes are in line to meet the project objectives

Negates Dont fix it if it isnt broken philosophy

Setup

A separate designated team

Quality Circles

Members from within the team are assigned and rotated to perform QA

Benefits

Checks deviations before they result in bad quality deliverable

Paves way for Continuous Improvement (Kaizen?)
Helps to develop stronger standards for processes

QA | Tools

Quality Audits

Structured review activity to check whether project processes

comply with organizational / project policies and procedures
Shouldnt be announced best when done without prior notice
Conducted by trained in-house personnel

Process Analysis

A scheduled activity to systematically review processes in view

of the deliverables and project objectives
Feedback from project members

Quality Control

Monitoring of specific project deliverables to check whether they

comply with planned / proposed quality standards
Setup

An independent team performs quality checks

Done through sampling
Statistical analysis to identify patterns and then identify root cause

Benefits

Keeps poor quality deliverables from reaching in the hands of the customer or
sponsor
Helps to identify poor inputs into activities
Arrests trends that could lead to further deterioration in quality of the deliverables

Change Management

Change Management

Purpose

To assess, record and incorporate any changes to the project

objectives mainly T-Q-S-C

Is performed from inception to completion

Is important as projects seldom get executed exactly
as planned
Is often a result of a risk being materialized

Positive risk positive change

Negative risk negative change

Change Management

Steps to perform control and manage changes

Identify the need for a change in the project objectives

Review request for changes
Assessing the efects of proposed changes to SCTQ
Inform and review the proposed changes with
stakeholders
If approved, document and update all SCTQ baselines

Closing
The Destination

Closing Project

Closing Project

Structured process
Ensure that deliverables are handed over to project
sponsors or customers
Document and archive project records for future projects
Ensure project deliverables are accepted by sponsors /
customers
Perform comparative analysis of initial baseline
estimates and final output

Documentation

Purpose

To ensure that all important activities, policies, processes and

deliverables are documented for review

Benefit

Facilitates project performance analysis

Allows for comparative analysis between projected and actual
Makes templates available for future projects
Some policies and processes can be utilized by other departments
in organizations
Provides important data for operations

Thanks