Project Management Fundamentals

Element K

Version: Apr-12

Kim AndrewsSenior Practice Partner

L&OD613-7612

Kim.Andrews@duke.edu

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Duke Course Objectives• Determine why projects fail• Describe the methodologies, tools,

and techniques to manage projects

• Plan and meet schedule deadlines and budget goals

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Is It a Project?

Project Work and Ongoing Work Are DifferentOngoing Work Project WorkRepeating process One of a kind, temporary processNo clear beginning or ending Clear beginning and endingSame output created each time Output is created only onceEveryone in work group Requires multi-disciplined team performs similar functions

Project Management – Planning, organizing, scheduling, leading, communicating, and controlling work activities to achieve time and budget goals.

Workbook page 2

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The Project Management Life Cycle

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Progression of Risk

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Role of the Project Manager

• Leader

• Planner

• Organizer

• Controller

• Communicator

• Negotiator

• Peace Maker

• Advocate

• Risk Manager

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3 Factors of Success

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Initiation Phase

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Statement of Work

• Stakeholders and their responsibilities

• Purpose

• Objectives

• Scope

• Sign-off and review hierarchies

• Reporting and communication plans

• Assumptions or Constraints

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Project CharterOfficial statement of support by the project’s sponsor

• Name, purpose, and objectives of project

• Name of project manager

• Authorization to use organizational

resources

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The Project Team

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Sources of Risk

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Risk Assessment

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Project Management LawsMurphy’s Law – Anything that can go wrong, will go wrong.Finagle’s Law of Dynamic Negatives or Finagle’s Corollary to Murphy’s Law - Anything that can go wrong, will – at the worst possible moment.Hofstadter’s Law – It always takes longer than you expect, even when you take into account Hofstadter’s law.Parkinson’s Law – Work expands so as to full the time available for its completion.

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Risk Management Approaches• Avoid It

• work around so risk never occurs

• Accept It• live with the consequences

• Transfer It• share the risk

• Mitigate It• prepare through contingency planning

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The Project Management Life Cycle

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Work Breakdown Structure

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Dependencies/Relationships

Finish-to-Start

Finish-to-Finish

Start-to-Start

Start-to-Finish

Preceding activity must finish before successor activity can start

Preceding activity must finish before successor activity can finish

Preceding activity must start before successor activity can start

Preceding activity must start before successor activity can finish

Relationship Description Gantt Chart

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Dependency Table

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Network Logic Diagram

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The Project Schedule1. Estimate the duration and effort.2. Calculate the critical path.3. Calculate float.

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The Project Schedule

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Float

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The Schedule. What if…The Gantt Chart

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Project BudgetCost Element

Description Formula

Labor People costs, including overtime

• (regular hours x hourly rate) + (overtime hours x overtime rate)

• + pro-rated overhead and fringe benefits

Equipment Purchase, lease, or rental price and the cost of usage

• Purchase pricelease or rental price x time period

• Pro-rated usage fees

Facilities The cost of the space to house the team, utilities, and services

• Rental cost x time period• Organizational burden rate x

time period

Supplies Consumables • Estimated volume x cost + inflation adjustment

Special expenses

• Estimated cost

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Balance the Budget and Schedule

• Shorten the schedule• Lengthen the schedule• Increase the budget• Change the scope• Change the expected quality

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The Project Management Life Cycle

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Identifying Variances

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Identifying Variances

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Earned Value Analysis Cost Variance Percentage (CVP)

Schedule Variance Percentage (SVP)

Estimate at Completion (EAC)

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Variables UsedBudgeted versus Actual

Work Scheduled versus Work Performed

Budgeted Cost for Work Scheduled (BCWS) – the amount you budget for a task between its start date and today (not the end of the project!)

Budgeted Cost for Work Performed (BCWP) – the % of the task budget that corresponds to the task’s completion status

Actual Cost for Work Performed (ACWP) – The actual cost of the task so far

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Cost Variance Percentage(BCWP – ACWP) / BCWP = CVP

Divides cost variance by budgeted cost.

A negative value means a cost overrun.

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Schedule Variance Percentage

(BCWP – BCWS) / BCWS = SVP

Divides schedule variance by cost to date.

A negative value means the work is behind schedule.

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Estimate at Completion(Original cost x ACWP) / BCWP =

EAC

Recalculates the cost or completion date based on performance to date.

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Dealing with Variances1. Find the cause.2. Plan corrective action.3. Determine overall project impact.4. Present the information to

stakeholders.

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Project ReportsType of Information

Key Questions And…

Status Is the project on target? What are you, the PM, doing to fix the situation?

Are there problems or variances that need to be addressed?

Progress What has the project team accomplished since the last update?

Why? Or Why not?

What work packages are complete, which partially complete, etc.?

What are you, the PM, doing to fix the situation?

Project Forecast

What is the outlook for ongoing status and progress?

Are there scope and goal changes that must be made in order to complete the project successfully?

What support do you need from others to make it happen?

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Report Formats

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Report Formats

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Report Formats

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Report Formats

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Change Request• Change

• Requested By• Reason for Change

• Method of Change

• Affected Parties• Affect on Success Criteria

• Backup Information

• Sign-Offs• Date of Approval

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The Project Management Life Cycle

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Duke Course Objectives• Determine why projects fail• Describe the methodologies, tools,

and techniques to manage projects

• Plan and meet schedule deadlines and budget goals

Project Management Fundamentals

Element K

Version: Apr-12

Kim AndrewsSenior Practice Partner

L&OD613-7612

Kim.Andrews@duke.edu