Project Management

Presented by:

ENRICO C. MINA

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Introduction (1)

A project is a unique (non-routine) organizational undertaking with a specific, well-defined result, which must be accomplished Through a series of interrelated activities According to a set of clearly defined performance

expectations, standards, or specifications Within a definite time period or schedule, and Within a budgetary limit.

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Introduction (2)

Projects are different from routine, repetitive operations. However, they may be vital to the continuous improvement of the company’s quality, productivity, and competitive position.

To be successful along all three dimensions of conformance to standards, cost, and timeliness, competent project management is essential.

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Objectives

At the end of this seminar, the participants will have been able to: Understand the elements of sound project

management, especially as it applies to improvement projects

Refine their project management conceptual, human, and technical skills

Understand the factors that influence project management success

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Agenda (1)

What kaizen is Project management skills

Conceptual People management Technical

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Agenda (2)

Phases of project management Defining project requirements and expectations Planning project activities and resources Implementing and controlling project activities

PERT-CPM for scheduling and budgeting Potential Problem Analysis

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Phase 1: Project Definition

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Definition Phase (1)

Definition is the earliest part of a project when its nature, purpose, and requirements are clarified and accepted.

To ensure the project’s value State the project’s ultimate purpose and achieve

agreement. Develop the objectives (the result “charter”) that

flow from the ultimate purpose.

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Definition Phase (2)

Develop the Work Breakdown Structure Identify resource requirements

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How to Identify Kaizen Projects (1)

Look at problems as opportunities for improvement: Take note of customer complaints and

suggestions. These should lead to high priority improvement projects.

Identify internal processes where defects/errors/ accidents are high, or where delays are frequent, or where costs are uncompetitive.

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How to Identify Kaizen Projects (2)

Benchmark against best-in-class business processes. Internal (against best practices in sister plants,

branches, or facilities of the same organization) Competitive (against best practices of

competitors) Functional (against best practices of other

organizations, not necessarily in the same business)

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Stating the Project (1)

Purpose: To define the purpose and scope of the project

Ask: What needs to be done? Why are we doing this? What are the benefits? When do we need to be finished? Why? How much will/can this cost? What are the

assumptions?

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Stating the Project (2)

Write the Project Statement Action and end result (performance, specifications,

outcomes) Time frame Cost or budget

Example: Install and certify pollution control equipment at the boilerhouse from February 1 – May 31, 20__ at a cost not exceeding P500,000.

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Developing Objectives (1)

Purpose: To define the benefits and measures of success for a project

Ask: At the end of the project, what value-adding output will

we or our customers have? What benefits do we want? What constraints do we have to overcome? What requirements must be met? How will we know if we are able to satisfy each

objective? What are the measures?

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Developing Objectives (2)

Write a list of statements Specific benefits (quantitative and qualitative) Other objectives

Compare objectives to original concerns and ultimate purpose. Are they consistent?

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Developing the Work Breakdown Structure (1)

Purpose: To establish specific outputs and accomplishments to be completed

Ask: What do we want to accomplish in this project? What are the major outputs of this project? What are its component parts or deliverables?

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Developing the Work Breakdown Structure (2)

List the major outputs and deliverables. Separate each deliverable into sub-

deliverables by continually asking “How do we accomplish this?”

Develop a chart or outline.

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Developing the Work Breakdown Structure (3)

The Work Breakdown Structure (WBS) is a graph or outline showing how major deliverables relate to sub-deliverables.

The lowest level deliverable or result is called a terminal element.

All work is done and all resources are used in terminal elements. They provide the details for project planning.

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Developing the Work Breakdown Structure (4)

Terminal elements combine to produce all higher level deliverables.

Each terminal element should have a specific quality or performance standard.

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Work Breakdown Structure

G et con su ltan t M ake en g 'g d raw in g s

D es ig n E q u ip m en t

B u y com p on en ts H ave sh op fab rica te

F ab rica te

D o c ivil works an d u tilit ies A ssem b le a t s ite

A ssem b le an d In s ta ll

G et s tan d ard s P roced u res

S et u p tes t p ro toco l

W ith ext. certifie r

D o live tes t

Tes t an d C ertify

P o llu tion C on tro l E q u ip m en tIn s ta lled an d C ertified a t B o ile rh ou se

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Identify Resource Requirements (1)

Purpose: To avoid future resource problems and help assign responsibility

For each terminal element, ask: What competencies (knowledge and skills) are needed? What facilities will we need? What equipment is required? What materials/supplies should we have? What special or unique resources do we need?

Identify the type, quantity, timing, and cost.

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Resource RequirementsTerminal Element

Knowledge/Skills

Facilities Equipment

Materials and Supplies

Special Resources

When Needed

Estimated Costs

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The Project Manager (1)

The Project Manager is the person with the responsibility and authority to manage the project.

The Project Manager should have: Adequate time to devote to the project Conceptual skills – the ability to see the project

from a total system perspective and to relate it to the larger environmental system with which it has to interact when completed.

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The Project Manager (2)

People management skills – the ability to lead, supervise, motivate, and communicate with the people who are involved in the project (the project team members as well as suppliers, contractors, subcontractors)

Technical skills – sufficient level of expertise or familiarity with the technical content of the project

Support from the management

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Identifying Subprojects (1)

Purpose: To make the work easier to manage

Ask: Is the project large or complex? Is work for one part specialized? Should resources be managed differently for part

of the work?

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Identifying Subprojects (2)

Will responsibility be delegated to one person for a number of related elements?

Is it easier to think about several smaller projects? (e.g., doing the project in small, clearly-separable phases)

Write a Project Statement for each.

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Phase 2: Project Planning

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Planning Phase

Planning is the second phase of a project, when responsibility is assigned and work is scheduled. The purpose is to organize the work and avoid future problems. Activities: Assign responsibility Sequence deliverables Schedule deliverables Schedule resources Protect the plan

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Assign Responsibility (1)

Purpose: To ensure clear ownership and accountability for all work done on the project.

Ask: Who has resources for this terminal element? Who has skill, knowledge, or information? Whose commitment do we need?

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Assign Responsibility (2)

List who will contribute to each terminal element and what they will do.

Show primary or direct responsibility for each terminal element. There should be no gaps or overlaps.

Summarize in a Responsibility Assignment Matrix (RAM).

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Responsibility Assignment Matrix

Allan Beth Chito

Jig designed Give inputs. Make design (P)

Give inputs.

Jig fabricated

Fabricate (P)

Check. Assist.

Jig tested & calibrated

Assist Provide standards.

Test & calibrate (P)

Terminal Elements

Persons Resp.

P = primary responsibility

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Initial Work Negotiation

Purpose: To get initial commitment of responsibility

Review the responsibility assignments with each team member, and get understanding and acceptance. Establish initial commitment to work on the project.

Confirm: That work assignments are appropriate That people are available That cost estimates are correct

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Sequence Deliverables

Purpose: To help schedule work efficiently Identify all WBS terminal elements. Estimate time duration for each. List precedence relationships. For complex projects, draw a network

diagram (e.g., PERT-CPM)

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Network Diagrams

Network Diagrams are drawings which show the sequence and precedence among terminal elements.

One of the most popular is the Program Evaluation and Review Technique and the Critical Path Method (PERT-CPM).

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PERT-CPM (1)

The six steps of PERT-CPM are:1. Define the project and all of its significant

activities or tasks (i.e., the terminal elements).

2. Develop the relationships among the activities. Decide which activities must precede others.

3. Draw the network diagram connecting all of the activities.

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PERT-CPM (2)

4. Assign time and/or cost estimates to each activity.

5. Compute the longest time path through the network; this is called the critical path.

6. Use the network to help plan, monitor, and control the project.

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PERT-CPM (3)

Almost any large project can be subdivided into a series of smaller activities or tasks that can be analyzed with PERT-CPM. Since projects can have hundreds of specific activities, it is important to answer these questions:

1. When will the entire project be completed?

2. What are the critical activities, i.e., the ones that will delay the entire project if they are late?

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PERT-CPM (4)

3. Which are the non-critical activities, i.e., the ones that can run late without delaying the entire project’s completion?

4. What is the probability that the project will be completed by a specific date?

5. At any particular date, is the project on schedule, behind schedule, or ahead of schedule?

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PERT-CPM (5)

6. On any given date, is the money spent equal to, less than, or greater than the budgeted amount?

7. Are there enough resources available to finish the project on time?

8. If the project is to be finished in a shorter amount of time, what is the best way to accomplish this at the least cost?

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PERT-CPM (6)

Example: ABC Co. has to complete the installation of a complex smoke filtration system in its main smokestack within 16 weeks or else face sanctions. At the planning stage, the activities and their immediate predecessors were identified as follows:

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PERT-CPM (7)Acti-vity

Description Immediate Predecessor

A Build internal components --

B Modify roof and floor --

C Construct collection stack A

D Pour concrete & install frame B

E Build high-temperature burner C

F Install control system C

G Install anti air pollution device D, E

H Inspect and test F, G

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PERT-CPM (8)

The Network Diagram

Start

A

B D G

C F

E H Finish

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PERT-CPM (9)

The next step is to estimate the time required to complete each activity. Because of the uncertainty inherent in one-of-a-kind projects, three estimates are made: Optimistic time (a) – time an activity will take

if all goes as well as possible Most likely time (m) – most realistic time Pessimistic time (b) – time an activity will take

assuming very unfavorable conditions t = (a + 4m + b)/6

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PERT-CPM (10)

Activity a m b t

A 1 2 3 2

B 2 3 4 3

C 1 2 3 2

D 2 4 6 4

E 1 4 7 4

F 1 2 9 3

G 3 4 11 5

H 1 2 3 2

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PERT-CPM (11)

The critical path is the longest path route through the network. Any delay of an activity on the critical path will delay completion of the entire project.

To find the critical path, we need to determine the following quantities for each activity in the network:

1. Earliest start time (ES) – the earliest time an activity can begin without violating the immediate predecessor requirements

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PERT-CPM (12)

2. Earliest finish time (EF) – the earliest time at which an activity can end

3. Latest start time (LS) – the latest time an activity can begin without delaying the entire project

4. Latest finish (LF) – the latest time an activity can end without delaying the entire project

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PERT-CPM (13)

In the network we represent these times as well as the activity times (t) in the nodes:

EF = earliest start time + expected activity time EF = ES + t

Before any activity can be started, all of its predecessor activities must be completed. ES = largest EF of immediate predecessors

ACTIVITY tES EFLS LF

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PERT-CPM (14)

The start of the whole project will be set at time 0. Therefore, any activity that has no predecessors will have an ES of 0.

The rest of the earliest times are found using a forward pass through the network, i.e., going from start to finish.

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PERT-CPM (15)

The next step in finding the critical path is to compute the LS and the LF for each activity. This is done using a backward pass through the network, i.e., starting at the finish and working backward to the start.

LS = latest finish time – activity time LS = LF – t

If an activity is the immediate predecessor for two or more activities, it must be finished so that all following activities can begin by their LS times. LF = smallest LS of following activities

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PERT-CPM (16)

FinishStart

A 20 20 2

B 30 31 4

D 43 74 8

C 22 42 4

E 44 84 8

G 58 138 13

H 213 1513 15

F 3 4 710 13

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PERT-CPM (17)

When ES, LS, EF, and LF have been determined, it is a simple matter to find the amount of slack time, or free time, that each activity has. Slack is the length of time an activity can be delayed without delaying the whole project.

Slack = LS – ES or slack = LF – EF Activities that have 0 slack are critical activities

and are on the critical path. None of them can be delayed without delaying the entire project.

CP = A, C, E, G, H

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PERT-CPM (18)

The probability of completion can be computed. The dispersion or variance of activity completion

time is given by the formula: Variance = b – a 2

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PERT uses the variance of critical path activities to determine the variance of the overall project. Project variance = variances of activities on

the critical path

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PERT-CPM (19)

Critical Activity Variance

A 4/36

C 4/36

E 36/36

G 64/36

H 4/36

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PERT-CPM (20)

Project variance = 112/36 = 3.111 Project standard deviation is the square root of the

project variance. σt = √ project variance

σt = √ 3.111 = 1.76 weeks We compute for the normal deviate Z

Z = due date – expected date of completion

σt

Z = (16 weeks – 15 weeks)/1.76 = 0.57

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PERT-CPM (21)

Using a table of areas under the normal curve, Z = 0.57 corresponds to a probability of 0.7157. Thus, there is a 71.6% chance that the pollution control equipment can be put in place in 16 weeks or less.

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The Gantt Chart (1)

A Gantt Chart is a linear calendar, developed by Henry L. Gantt, that spreads future time horizontally while the work to be done, sequenced according to precedence, is shown vertically. The length of the horizontal bars represent the length of time of a WBS terminal element.

The results of a PERT-CPM network can be translated into a Gantt Chart for ease of understanding and monitoring.

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The Gantt Chart (2)

W E E K STerminal Elements t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

A 2B 3C 2D 4E 4F 3G 5H 2

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Exercise for PERT-CPM (1)

This is a small-group activity. Time limit = 1 hr. Given the activities, time estimates, and

immediate predecessor relationships in the table:1. Draw the network diagram.2. Compute for the t, ES, EF, LS, LF, and slack.3. Identify the activities on the critical path.4. Compute for the expected project length in weeks.5. Compute for the variances of critical activities.6. Compute for the std. deviation of the critical path.7. Compute for the probability of completing w/in 20

weeks.

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Exercise for PERT-CPM (2)

Activity a m b ImmediatePredecessors

A 1 2 3 --

B 2 3 4 --

C 4 5 6 A

D 8 9 10 B

E 2 5 8 C, D

F 4 5 6 B

G 1 2 3 E

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Schedule Resources

Purposes: To ensure good use of resources To help maintain commitment of resources

Discuss with each resource manager. Confirm or negotiate specific schedule commitments for each resource.

Be sure to appreciate and acknowledge the priorities and constraints of each RM.

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Scheduling Project Costs Using PERT-CPM (1)

The overall approach in the budgeting process of a project is to determine how much is to be spent every week or month.

1. Identify all costs associated with each of the activities. Then add these costs together to get one estimated cost or budget for each activity.

2. For a large project, several activities can be combined into larger work packages. A work package is a logical collection of activities or terminal elements.

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Scheduling Project Costs Using PERT-CPM (2)

3. Convert the budgeted cost per activity into a cost per time period. To do this, assume that the cost of completing any activity is spent at a uniform rate over time.

4. Using the earliest and latest start times (ES and LS), find out how much money should be spent during each week or month to finish the project by the date desired.

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Scheduling Project Costs Using PERT-CPM (3)

Activity ES LS t TBC BCWA 0 0 2 22,000 11,000B 0 1 3 30,000 10,000C 2 2 2 26,000 13,000D 3 4 4 48,000 12,000E 4 4 4 56,000 14,000F 4 10 3 30,000 10,000G 8 8 5 80,000 16,000H 13 13 2 16,000 8,000

Total 308,000

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Budgeted Cost Using ESW E E K

ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TotalA 11 11 22B 10 10 10 30C 13 13 26D 12 12 12 12 48E 14 14 14 14 56F 10 10 10 30G 16 16 16 16 16 80H 8 8 16

308Tot/wk 21 21 23 25 36 36 36 14 16 16 16 16 16 8 8

Tot to date 21 42 65 90 126 162 198 212 228 244 260 276 292 300 308

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Budgeted Cost Using LSW E E K

ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TotalA 11 11 22B 10 10 10 30C 13 13 26D 12 12 12 12 48E 14 14 14 14 56F 10 10 10 30G 16 16 16 16 16 80H 8 8 16

308Tot/wk 11 21 23 23 26 26 26 26 16 16 26 26 26 8 8

Tot to date 11 32 55 78 104 130 156 182 198 214 240 266 292 300 308

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Project Crashing (1)

Purpose: To reduce the overall timetable of the project to a desired target

Project crashing is done when the expected normal timetable exceeds a desired deadline. Crashing usually involves adding resources and therefore increasing costs, in exchange for the gain in time.

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Project Crashing (2)

Four steps of project crashing:1. Find the normal critical path and identify the

critical activities.

2. Compute the crash cost per week (or other time period) for all activities in the network.

crash cost/time period = crash cost – normal cost

normal time – crash time

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Project Crashing (3)

3. Select the activity on the critical path with the smallest crash cost per time period. Crash this activity to the maximum extent possible or to the point at which the desired deadline has been reached.

4. Check to be sure that the critical path you were crashing is still critical. If not find the new critical path. Return to Step 3.

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Project Crashing (4)

Compute the total cost of crashing needed to achieve the target deadline and compare this with the benefit to be gained (or the penalty to be avoided). Make sure that crashing the project will result in a net positive benefit.

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Project Crashing (5)

TIME (WKS) COSTS CRASH COST CRITICALACTIVITY NORMAL CRASH NORMAL CRASH PER WK PATH?

A 2 1 22,000 22,500 500 YesB 3 1 30,000 34,000 2,000 NoC 2 1 26,000 27,000 1,000 YesD 4 3 48,000 49,000 1,000 NoE 4 2 56,000 58,000 1,000 YesF 3 2 30,000 30,500 500 NoG 5 2 80,000 86,000 2,000 YesH 2 1 16,000 19,000 3,000 Yes

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Project Crashing (6)

FinishStart

A 10 10 1

B 30 30 3

D 43 73 7

C 21 31 3

E 43 73 7

G 57 127 12

H 212 1412 14

F 3 3 6 9 12

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Protect the Plan

Purpose: To help ensure that we meet or exceed the project objectives

Spot areas of the plan where we are concerned (particularly activities or terminal elements on the critical path).

Use Potential Problem Analysis.

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Identify Areas of Concern

Purpose: To set priority for limited resources and time

Ask: Which terminal elements are on the critical path? Which terminal elements are new (where we

have no prior experience)? Which terminal elements are complex? Where have we had trouble before?

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Potential Problem Analysis (1)

Identify what can go wrong at terminal element of concern and the corresponding causes.

Estimate the probability of occurrence of each potential problem: High = almost certain to happen Medium = about 50% chance of happening Low = unlikely to happen

Take preventive actions to reduce the probability of occurrence.

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Potential Problem Analysis (2)

Estimate the seriousness of the effect if what can go wrong does happen High = disaster; very threatening situation Medium = damaging and painful but survivable Low = a minor inconvenience

Design contingent actions that will reduce the seriousness in case the problem still happens in spite of the preventive actions. Identify the trigger (an event or information that will activate the contingent action).

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Potential Problem Analysis Spreadsheet

No. Activity What Can Go Wrong

Causes Probability

Seriousness

Preventive Actions

Contingent Actions

Trigger

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Project Management Discussions

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People Management Skills

Purpose: To help maintain relationships and management performance throughout a project

All project activities are accomplished by people who work under the supervision of the Project Manager.

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Being Aware of the Performance Environment

Purpose: To help promote desirable performance

Use the ABC model Antecedent – Behavior – Consequence First describe the behavior, then look for

antecedents, and finally look for consequences Use the performer’s point of view.

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Project Management Discussions (1)

Project Management Discussion is a conversation between the Project Manager and others concerning any aspect of the project.

Purposes: To clarify or resolve issues To set expectations or give feedback

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Project Management Discussions (2)

Activities during a PMD: Give or gather information Analyze information Gain and test understanding Determine action Evaluate results of decisions

PMDs are used in all phases. May be formal or casual.

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Project Management Discussions (3)

Skills required for PMDs: Questioning Listening Pinpointing Giving feedback

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Questioning (1)

Closed questions are answerable by “yes” or “no” or by a specific piece of information.

Open-ended questions have a multitude of answers.

Questioning to the Void is re-asking a question to get the most specific or most complete answer. Making issues specific makes them easier to work on.

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Questioning (2)

Ask Turn-around questions

Re-ask about the answer you get.Look for the most specific answer.

“What else” questionsRe-ask the question in the same form.Look for the most complete answer.

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Questioning (3)

Two of the most useful: Ask “Why?” five times in succession to arrive at

the root cause of problems. Ask “How?” five times in succession to identify

the critical details on a course of action.

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Active Listening (1)

Active listening is giving attention and providing feedback to the speaker.

Purpose: To ensure clear, open communication

How to do: Establish contact:

Face the speaker and establish eye contact.Give him/her the opportunity to talk freely.

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Active Listening (2)

Ask for clarification if needed. Acknowledge

Reflect enthusiasm or concernRephrase or ask confirming questionsSummarize facts and feelings

Avoid the barriers to listening (e.g., distractions, prejudice, lack of focus, semantic difficulties, etc.)

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Sensitive Listening (1)

Sensitive listening is listening for feelings and commitments.

Purpose: To help recognize performance concerns How to do:

Listen for expressions of feeling Tone of voice Facial expression “Loaded” words

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Sensitive Listening (2)

Test for empathy Reflect or show your feelings. Ask closed questions to confirm.

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Pinpointing (1)

Pinpointing is describing performance in terms of specific behavior or results.

Purpose: To set clear expectations and give clear feedback

How to do: Describe the performance in observable or

measurable terms.

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Pinpointing (2)

Separate and clarify. Tackle one issue at a time. Avoid labels and other value-laden words (e.g.,

inferences, generalities, assumptions or judgments).

Practice non-blaming, non-judgmental behavior. Focus on the problem, rather than on the person.

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Feedback (1)

Feedback is information given to others about their performance.

Purpose: To support or improve performance

How to do: Spot opportunities

Look for things that have impact (the critical few).

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Feedback (2)

Look for success as well as trouble.Encourage “bad news reporting” through non-

blaming, non-judgmental behavior. Pinpoint what you saw. Describe the impact. Pinpoint what you want. Test for understanding and agreement.

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Project Meetings (1)

Project Meetings are formally held PMDs presided over by the Project Manager, usually at regular intervals and with a pre-determined agenda.

Purposes: To improve communication To increase involvement and participation

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Project Meetings (2)

How to ensure success: Prepare agenda ahead of time. Limit to critical items and

arrange in descending order of importance. Choose who to involve and why. Communicate the date, time, place, and agenda. Have everything needed in place before starting. Separate WHAT you work on from HOW you work. Keep your work visible to the group. Document and distribute results

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Project Meetings (3)

Suggested agenda items for regular meetings: Safety, health, and environmental issues;

corrective/preventive actions Quality issues; corrective/preventive actions Work progress vs. milestones; causes of delays, if any,

and corrective/preventive actions Legal/regulatory issues Actual vs. budgeted costs Human resource issues

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Phase 3: Project Implementation

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Implementation Phase (1)

Implementation is the final phase of a project when deliverables are produced to meet the project objectives.

Purpose: To deliver the value of the project Activities:

Launch implementation. Monitor project.

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Implementation Phase (2)

Take corrective and preventive actions when deviations are detected.

Modify project, if needed. Closeout and evaluate.

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Launch Implementation (1)

Purpose: To ensure work begins on time with clear performance standards

Meet with those who will work on the project, including internal support personnel and external contractors, subcontractors, and suppliers.

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Launch Implementation (2)

Use Project Management Discussions Review project statement and objectives. Set ground rules for working together. Review initial project assignments and

responsibilities (the Responsibility Assignment Matrix).

Confirm performance expectations and get firm commitments.

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Monitor Project (1)

Purpose: To keep the project on track Aspects to monitor:

Progress against objectives Progress against milestones Conformance to quality standards Resource use and cost Human performance Safety, health, and environmental performance

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Monitor Project (2)

Set performance and deliverable expectations in advance. Make them measurable or verifiable.

Use either scheduled reviews (PMDs or formal meetings) or triggers (when critical deviations are detected) to monitor.

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Milestones (1)

Milestones are events that mark the completion of part of a project (i.e., they are intermediate results).

Purpose: To show where progress can be checked

Review the WBS, sequence and schedule.

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Milestones (2)

Add milestones to mark: Completion of a major deliverable Start or finish of a subproject Start or finish of important terminal elements Regularly scheduled review periods (e.g.,

monthly)

Schedule reviews around milestones.

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Conformance to Quality Standards

The project’s quality standards must be aligned with the requirements and expectations of the users or customers. Make these measurable or tangible

As much as possible, involve users or customers in the review of quality performance during the implementation of the project. Have them sign off after each review.

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Monitoring and Controlling Project Costs Using

PERT-CPM (1) The purpose of monitoring and controlling

project costs is to ensure that the project is progressing on schedule and that cost overruns are kept to a minimum.

The value of work completed, or the cost-to-date for any activity, can be computed as: v = (% of work completed) x tot actvty budget activity difference = actual cost - v

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Monitoring and Controlling Project Costs Using

PERT-CPM (2) If an activity difference is negative, there is a

cost underrun. If the difference is positive, there has been a

cost overrun. In either case, the project manager must

determine the causes so that he can take the appropriate action. In case of underrun, he can realign his budget. In case of overrun, he can take corrective action.

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Monitoring and Controlling Budgeted Cost at Wk 6

ACTIVITY TBC % COMP VALUE ACT CST DIFFER.A 22,000 100 22,000 20,000 -2,000B 30,000 100 30,000 36,000 6,000C 26,000 100 26,000 26,000 0D 48,000 10 4,800 6,000 1,200E 56,000 20 11,200 20,000 8,800F 30,000 20 6,000 4,000 -2,000G 80,000 0 0 0 0H 16,000 0 0 0 0

Total 100,000 112,000 12,000(overrun)

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Human Performance

Human performance refers to the monitoring of performance variables that are highly influenced by behavior of people. Punctuality and absenteeism Conformance with policies, procedures, and

rules Application of skills and other competencies

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Safety, Health, and Environment Issues

For large, complex projects, safety, health, and environmental issues may be critical. Underlying all three is good housekeeping.

The project must have clearly defined standards (policies, specifications, procedures, and rules) governing these.

These must be communicated to everyone (including suppliers, contractors, and subcontractors) and continually monitored for conformance.

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Two Key Principles of Monitoring

Two key principles underlie all available approaches to monitoring. A clear standard of performance – measurable or

verifiable, written down, typically derived from the WBS and the project plan

Accurate, timely, and complete feedback on project performance in a useful format – enabling responsible persons to know exactly what is going on as soon as it happens.

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Modify Project

Purpose: To respond to problems, opportunities, or even changes in objectives (may be caused by a change in the external environment)

Review and clarify threats and opportunities. Locate the earliest point in the process when each

concern has impact. Use the Definition and Planning phase steps as

required to revise the plan.

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Closeout and Evaluate (1)

Purpose: To ensure all objectives were met and share lessons learned

Include closeout activities in the WBS, resource requirements, RAM, and schedule.

It may be useful to create a checklist for all the critical items in the project. This checklist is specific to the particular project.

In the closeout stage, use the checklist to ensure that everything is in order.

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Closeout and Evaluate (2)

Use Project Management Discussions Review success against objectives and standards. Inform others that the project is finished.

Operations Finance Logistics Insurance Security

Get formal acceptance (in writing) from the user.

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Closeout and Evaluate (3)

Review lessons learned that can be applied to the improvement of the management of future projects.

Bring closure to the project team.Give recognition.Celebrate!

Document a project summary.

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Project Success Factors (1)

Project team commitment Accurate initial cost estimates Project team capabilities and competencies Adequate funding throughout the project Effectiveness of planning and control Minimum start-up difficulties Absence of bureaucracy

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Project Success Factors (2)

A balance between the task and social orientations of the team

Competent Project Manager on-site with full authority over project implementation

Clear, measurable criteria for success An information system that provides

accurate, timely, and complete feedback

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Exercise on Lessons Learned (1)

Within 1 hour, individually identify the Project Management practices that you will: START STOP CONTINUE

Share with your small group and take note of useful ideas. Take note of common points.

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Exercise on Lessons Learned (2)

Appoint a spokesperson who will share the results of the discussion with the class.