Project Management: Michel Tollenaere (INPG)

Project Management
Introduction
Agenda
Definitions
Project scope management
Time, quality, cost
Human resources management
Information management
Risk management
Project Management Institute
Michel Tollenaere (INPG)

http://www.g-scop.fr/~tollenam/best
Project Management Presentation 2008

1
Definitions
A project is a temporary endeavour undertaken to

create a unique product or service.
It is
• performed by people
• constrained by limited resources
• planned, executed and controlled

2
Examples
• developing a new product or service
• effecting change in a structure, staffing or style of an organisation
• designing a new transportation vehicle
• developing or acquiring a new or modified information system
• constructing a building or facility
• building a water system for a community in a developing country
• running at campaign for political office
• implementing a new business procedure or process
• budget from 10k€ to many M€
• METEOR an automatic underground railway in Paris
• implementing SAP in multi-sites company
• the football world cup in Paris in 98
• from 8 to 10 digits numbering in a phone system
• implementing A380 in a company ..\..\

3
Project features (1)
Temporary
• A project has a definite beginning and definite end
• The duration of a project is finite
• The opportunity or market window is usually temporary, most projects
have a limited time frame in which to produce the product or service
• The project team - as a team - seldom outlives the project. Most projects
are performed by a team created for the sole purpose of performing the
project
Unique result
• Projects involve doing something that has not been done before in the
same environment
• The project may require some innovation to be completed
4
Progressive elaboration
• A project occurs step by step to define the product or service, in a so
called “progressive elaboration” process.
• for instance, the development of a chemical processing plant begins with
the process engineering to define the characteristics of the process, and
ends with the final assembly.
Development of a chemical processing plant
Define the Mechanical
chemical characteristics of the
characteristics process units Detailed Manufacturing
of the process (pumps..etc) drawings of the parts
Final
General plant Assembly
layout

5
• In aerospace industry, projects are divided in
Progressive elaboration milestones (M1, M3, M5, M7, M9, M11)
corresponding to a “state” of the aircraft.

6
Project Lifecycle
Cost and
Intermediate
Staffing
Phases (one
level
or more) Final
Initial
Phase Phase
Time
Start Finish
Milestones :
• defined state of the project
• decision point

7
Project Lifecycle :
example US - DOD 5000.2

8
Construction Project Lifecycle

9
Pharmaceuticals Project Lifecycle

10
Project scope
management
(PMI chap 5)
Agenda
Definitions
Time, quality, cost
Risk management

11
(PMI chap 5)
• Product Scope : the features and functions that characterise a

product or service
• Project Scope : the work that must be done to deliver a product
with the specified features and functions
Both scopes are described and detailed with specific tools.
Project scope management consists to ensure that the

project includes all the work required, and only the work
required, to complete the product successfully.

12
Product scope management
PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE
PROGRAMME
PROGRAM A380
SERIES OF
/DERIVES
AIRPLANE A380 800F A380 800 A380 700 ...
COMPOSANTS PRINCIPAUX
MAJOR COMPONENTS FUSELAGE AILE
WING EMPENNAGE
TAILPLANE ...
ASSEMBLAGES
ASSEMBLIES CAISSON DE VOILURE LEADING EDGE BORD D’ATTAQUE ...
SOUS-ASSEMBLAGES
SUB -ASSEMBLIES STRUCTURE SYSTEME HYDRAULIC ...
MECANIQUE SYSTEM
COMPOSANTS ATTACHE TRINGLERIE STRUCTURE

ELEMENTARY
ELEMENTAIRES
COMPONENTS
Part 10005
Part 10009
Part 10002
• Bill of Materials
• FAST Diagram
• Structured tool that describes the product
13
Project scope management : WBS Work Breakdown Structure

14
Project scope management : WBS of a software release

15
Project scope definition : from BOM to WBS
• Defining the right activities is essential for « project scope definition »
• a WBS from a previous project is often used as a template for a new project.
• any component in a BOM must be purchased or manufactured.
• in all cases (purchasing or manufacturing), it must be tested.
• any assembly should be assembled and tested (especially in software
engineering)
• documentation activity is essential for robust project
Activity. An element of work performed during the course of a

project. An activity normally has an expected duration, an expected cost, and
expected resource requirements. Activities can be subdivided into tasks.
Activity Definition. Identifying the specific activities that must
be performed to produce the various project deliverables.

16
Project scope Change Management
• Any change to product and/or project scope must follow a formal process
• This process must finish with the formal acceptance of the change by the
different stakeholders.
A change request may be the result of :

• An external event (eg. Change in a government regulation)
• an error or omission in defining the scope of the product (adding a failure
system regulation).
• an error in defining the scope of the project (a missing inspection)
• a value adding change (positive opportunity)
• a response to an identified risk (see section about risk management)

17
Possible evolutions in Product scope
simple,
Customer needs red,
Customer needs : description : robust,
with What the architect
wheels understands
What the architect

What is the
finally described
What is finally developed manufacturer
expected to do
18
Monitoring Project scope during the project
Overquality
Specifications What has been
realised
Errors in Waste
specifications
Adequate
Quality
Happy
hazard
Court circuit
Unsatisfaction
Customer’s Needs

19
Monitoring Project scope during the project
??
A universal tool …… ??
might be so heavy and expensive

20
(PMI chap 5)
Project Scope Management. A subset of project management

that includes the processes required to ensure that the project includes
all of the work required, and only the work required, to complete the
project successfully. It consists of initiation, scope planning, scope
definition, scope verification, and scope change control.
Scope Definition. Subdividing the major deliverables into smaller, more manageable
components to provide better control.
Scope Planning. The process of progressively elaborating the work of the project,
which includes developing a written scope statement that includes the project
justification, the major deliverables, and the project objectives.
Scope Statement. The scope statement provides a documented basis for making future
project decisions and for confirming or developing common understanding of project
scope among the stakeholders. As the project progresses, the scope statement may need to
be revised or refined to reflect approved changes to the scope of the project.
Scope Verification. Formalizing acceptance of the project scope.

21
Project triangle
Time, Cost, Quality
Agenda
Definitions
Time, quality, cost
Risk management

22
Project time management
• requires activity definition

• includes activity sequencing
• estimates activity duration
• elaborates schedule of activities
Activity
duration model

23
• estimates activity duration

Resource requirements : which resources are required for such
activity ?
Activity duration # activity work effort
Some activities (eg. getting authorisation, transportation time) can
require a long time without any work-effort.
• elaborates schedule of activities

Many software tools (MSProject) do the job quite well (in a
deterministic manner)
They offer many outputs (GANTT Chart, PERT … etc)

24
• relationships between activities : Logical Relationship
Activity A Activity B
• Finish-to-start-the initiation of work of the successor depends upon the

completion of work of the predecessor.
• Finish-to-finish-the completion of the work of the successor cannot finish
until the completion of work of the predecessor.
• Start-to-start-the initiation of work of the successor depends upon the
initiation of the work of the predecessor.
• Start-to-finish-the completion of the successor is dependent upon the
initiation of the predecessor.

25
• Network Logic Diagram
A B E
Start
Finish
D F
C
Precedence diagram method ; A, B, C, D, E, F are activities
B
A E
Start Finish
C F
D
Arrow diagramming method ; activities are shown as arrows

26
• Provides start and finish dates for all activities
Float. The amount of time that an activity may be delayed from its
early start without delaying the project finish date. Float is a mathematical
calculation, and can change as the project progresses and changes are made to the
project plan. Also called slack, total float, and path float.
Free Float (FF). The amount of time that an activity can be delayed without
delaying the early start of any immediately following activities. See also float.
A B E
Start
Finish
Critical Path. The series of activities that
D F
C determines the duration of the project. In a
deterministic model, the critical path is usually
A
B
E
defined as those activities with float less than or
Start
C
Finish equal to a specified value, often zero. It is the
D F
longest path through the project. See critical path
method.
27
Project Cost management
• cost management includes the following processes

Resource planning - Cost estimating - Cost budgeting - Cost control
Cumulative
values M€
Total budget
of the project
Initial Final
Phase Phase
Intermediate Phases
(one or more)
Time
Start Finish
The S – Curve of cost baseline
28
Project Cost management
• different cost for an activity

Planned Value (PV). The physical work scheduled, plus the
authorized budget to accomplish the scheduled work. Previously, this
was called the budgeted costs for work scheduled (BCWS).
Earned Value (EV). The physical work accomplished plus the
authorized budget for this work. The sum of the approved cost estimates
(may include overhead allocation) for activities (or portions of activities)
completed during a given period (usually project-to-date). Previously called
the budgeted cost of work performed (BCWP) for an activity or group of
activities.
Actual Cost (AC). Total costs incurred that must relate to whatever cost was
budgeted within the planned value and earned value (which can sometimes
be direct labor hours alone, direct costs alone, or all costs including indirect
costs) in accomplishing work during a given time period.

29
Project Cost Management
• different contracts
A contract is a mutually binding agreement that obligates the seller to provide the specified product
and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories:
Fixed-price or lump-sum contracts - this category of contract involves a fixed total price for a well-
defined product. Fixed-price contracts may also include incentives for meeting or exceeding selected
project objectives, such as schedule targets.
Cost-reimbursable contracts - this category of contract involves payment (reimbursement) to the
contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by
the project, such as wages for members of the project team) and indirect costs (costs allocated to the
project by the performing organization as a cost of doing business, such as salaries for corporate
executives). Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable
contracts often include incentives for meeting or exceeding selected project objectives, such as
schedule targets or total cost.
Time and material contracts-time and material contracts are a hybrid type of contractual
arrangement that contain aspects of both cost-reimbursable and fixed- price-type arrangements. Time
and material contracts resemble cost-type arrangements in that they are open ended, because the full
value of the arrangement is not defined at the time of the award. Thus, time and material contracts can
grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and
material arrangements can also resemble fixed-unit arrangements when, for example, the unit rates
are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior
engineers."
30
Project quality management
Let’s start with a story :
La Route du Rhum 2002
Only 3 sailers (upon 15) arriving at Pointe-à-Pitre !!!

31
Quality management applies to :

- project activities
- and project results (deliverables, components)
to fulfil quality objectives.
The Deming Cycle
PLAN: Design or revise business process
components to improve results
DO: Implement the plan and measure its
performance
CHECK: Assess the measurements and
report the results to decision makers
ACT: Decide on changes needed to improve
the process

32
Quality Planning. Identifying which quality standards are relevant to the

project, and determining how to satisfy them.
Quality Assurance (QA). 1) The process of evaluating overall project

performance on a regular basis to provide confidence that the project will
satisfy the relevant quality standards. 2) The organizational unit that is
assigned responsibility for quality assurance.
Quality Control (QC). 1) The process of monitoring specific project

results to determine if they comply with relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance.
2) The organizational unit that is assigned responsibility for quality control.

33
Human resources
management
Agenda
Definitions
Time, quality, cost
Risk management

34
As project is performed by humans,

Project management is human and organisation management.
• who decides ?
• who is responsible on ?
• who controls ?
• who takes benefits of ?
Complex projects are based on

complex organisations
Best skills for all complex

tasks worldwide

35
Airbus Company has been created to provide airplanes

It has been created from Aerospatiale, British Aerospace,
CASA, DASA

36
Is formalised in a Organisation Breakdown Structure (OBS)

A depiction of the project organization arranged so as to relate
work packages to organizational units
It shows which work components have been assigned to which
organizational units or persons.
Phase / Person A B C D E F …
Requirements S R A P P
Functional S A P P
Design S R A I P
Development R S A P P
Test S P I A P
P = Participant
Responsibility assignment matrix A = Accountable
R = Review required
I = Input required

S = Sign-off Required 37
Subcontracting management
Sub-contracting requires internal resources

for negociation and control.
Do not confuse : a subcontractor is not a partner

38
Information
management

39
Some tools (1)
Ensure message storage ?

Managing group lists ?
Impossible to share large files 40
Some tools (2)
annotation and correction of documents

41
Some tools (3)
Powerpoint
diapo
conférence
Chats
Microsoft
Netmeeting
Yahoo groups
Windows sharing,
shared blackboard

42
Extended entreprising information system

43
ENTREPRISES INFORMATION SYSTEMS
Commercial Logistics Production Quality Maintenance
E.R.P.
C.R.M. S.R.M. M.E.S. A.P.S.
K.B.E. K. M.
P.D.M./P.L.M.
Marketing Design Industrialisation Quality assurance

44
Supplier
• deiversified technical products
• multi-sites, multi organisation
development and production
• development under time constraints
Sub-contractor A Orderer Sub-contractor B
• physical flows
• information flows
Partner • financial flows
• decision systems

45
Engineering et communication situations
Slides-conference Space
Visioconference
Distant
Internet, Intranet, PDM, PLM
Synchronous Asynchronous
Time
Same location
Project location
46
Information System
Organisations
Task 2
Task 3
Task 1
Tasks, processus
Files and Documents
Systems ?

47
Donneur d ’ordres
Parameter :
Partenaire rang 1 Partenaire rang 1
Physical value
Unit Equipementier
version
Organisations
tolerance and gap
Sous traitant
….
Organisations, rôles
Liens explicites entre Value evolution au sein des projets
paramètres, et objets 1
documentaires
4 2
Who do what ?
10 Who has done what ?
14 12 5
15
Value Evolution Task 2
Files and Documents Task 3
Task 1
Réseau de Paramètres
Tâches, processus
Links between documents and
assemblies and systems Link between
parameters, Action
functions, Exécution
items Décision
Notification
Who is responsible on what?

Configuration managezment
Quels systèmes ?

48
Engineering change management
Engineering
Change Request
Stage 1: EC Proposal
(ECR)
–ECEngineering
initialisation Change management
ECR initialised
Notification
• Automatisation
EC Pre-feasibility
studies
Status
du traitement des "Change Process"
evolution
•Proposal
S'assurer
Engineering Change
(ECP)
queECtoutes
Impacts les étapes approbation/qualité
Stage 2 : EC ont
Investigation
étéofréaliséesand studies
Push
feasibility
documents
– Document ReviewSolution
Files and Documents Potentialsolutions
Selection &
defined
Definition
• Router automatiquement
Solution to be implemented &
Potential impacts assessed
versAssociated
les "reviewers" (requis
documentation
ou optionnels)
ECO released up-date
• Gérer les approbations ou re-routerNew

Documentation up-dated
poursolutionrévision
notification
New solution
notified New solution
embodiment
Efficiency et Traçing Solution
implemented &
notified
Stage 3 : EC Project
Embodiment
Management Presentation 2008
49
Documentation
up-dated
50
Risk Management

51
What is risk ?
Project risk is an uncertain event or condition, that,

if it occurs, has a positive or a negative effect on a
project objective (cost, time, quality).
A risk has a cause and, if it occurs, a consequence.
In risk management, probability and impact

(severity) of the risks are considered.

52
53
54
55
References
• Project Management Institute http://www.pmi.org/

• An example of students project http://192.168.41.10/~tollenaere/e-commerce/
• 2PLM lettre bimensuelle http://www.johnstark.com/xzxzx.html dernière
édition sur http://www.johnstark.com/xzxzx.html
• PDM Information Center, http://www.pdmic.com/
• CIMdata, http://www.cimdata.com/
• PDM enablers de l’OMG
http://www.omg.org/techprocess/meetings/schedule/PDM_RTF_1.5.html

56

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Project Management

Michel Tollenaere (INPG)

Project Management Presentation 2008

A project is a temporary endeavour undertaken to

Project Management Presentation 2008

Project Management Presentation 2008

Project Management Presentation 2008

Project Management Presentation 2008

Project Management Presentation 2008

Project Management Presentation 2008

Project Management Presentation 2008

Project Management Presentation 2008

Project Management Presentation 2008

• Product Scope : the features and functions that characterise a

Both scopes are described and detailed with specific tools.

Project scope management consists to ensure that the

Project Management Presentation 2008

PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE

COMPOSANTS ATTACHE TRINGLERIE STRUCTURE

Project Management Presentation 2008

Project Management Presentation 2008

• Defining the right activities is essential for « project scope definition »

Activity. An element of work performed during the course of a

Project Management Presentation 2008

A change request may be the result of :

Project Management Presentation 2008

What the architect

Project Management Presentation 2008

might be so heavy and expensive

Project Management Presentation 2008

Project Scope Management. A subset of project management

Project Management Presentation 2008

Project Management Presentation 2008

• requires activity definition

Project Management Presentation 2008

• estimates activity duration

• elaborates schedule of activities

Project Management Presentation 2008

• relationships between activities : Logical Relationship

• Finish-to-start-the initiation of work of the successor depends upon the

Project Management Presentation 2008

• Network Logic Diagram

Precedence diagram method ; A, B, C, D, E, F are activities

Arrow diagramming method ; activities are shown as arrows

Project Management Presentation 2008

• Provides start and finish dates for all activities

• cost management includes the following processes

• different cost for an activity

Project Management Presentation 2008

Let’s start with a story :

La Route du Rhum 2002

Only 3 sailers (upon 15) arriving at Pointe-à-Pitre !!!

Quality management applies to :

Project Management Presentation 2008

Quality Planning. Identifying which quality standards are relevant to the

Quality Assurance (QA). 1) The process of evaluating overall project

Quality Control (QC). 1) The process of monitoring specific project

Project Management Presentation 2008

Project Management Presentation 2008

As project is performed by humans,

Complex projects are based on

Best skills for all complex

Project Management Presentation 2008