Project Management Introduction

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Project Management Presentation 2008

Project Management
Introduction
Michel Tollenaere (INPG)
http://www.g-scop.fr/~tollenam/best
Agenda
Definitions
Project scope management
Time, quality, cost
Human resources management
Information management
Risk management
Project Management Institute
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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

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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 ..\..\
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Project features (1)
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
Temporary
Projects involve doing something that has not been done before in the
same environment
The project may require some innovation to be completed
Unique result
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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
chemical
characteristics
of the process
General plant
layout
Mechanical
characteristics of the
process units
(pumps..etc)
Detailed
drawings
Manufacturing
of the parts
Final
Assembly
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Progressive elaboration
In aerospace industry, projects are divided in
milestones (M1, M3, M5, M7, M9, M11)
corresponding to a state of the aircraft.

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Project Lifecycle
Time
Start
Finish
Cost and
Staffing
level
Initial
Phase
Intermediate
Phases (one
or more)
Final
Phase
Milestones :
defined state of the project
decision point
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Project Lifecycle :
example US - DOD 5000.2
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Construction Project Lifecycle
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Pharmaceuticals Project Lifecycle
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Project scope
management
(PMI chap 5)
Agenda
Definitions
Time, quality, cost
Risk management
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(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.

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Product scope management
PROGRAMME
SERIES /DERIVES
COMPOSANTS PRINCIPAUX
ASSEMBLAGES
SOUS - ASSEMBLAGES
COMPOSANTS
ELEMENTAIRES
A380
A380 800F A380 800 A380 700 ...
FUSELAGE AILE EMPENNAGE ...
CAISSON DE VOILURE
LEADING EDGE BORD DATTAQUE ...
STRUCTURE SYSTEME ...
Part 10005
Part 10009
Part 10002
ATTACHE TRINGLERIE
MECANIQUE
STRUCTURE
PROGRAM
SERIES OF AIRPLANE
MAJOR COMPONENTS
ASSEMBLIES
SUB - ASSEMBLIES
COMPONENTS
ELEMENTARY
A380
A380 800F A380 800 A380 700 ...
FUSELAGE WING TAILPLANE ...
CAISSON DE VOILURE
LEADING EDGE BORD DATTAQUE ...
STRUCTURE SYSTEME ...
Part 10005
Part 10009
Part 10002
ATTACHE TRINGLERIE
PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE
MECANIQUE
SYSTEM
HYDRAULIC
STRUCTURE
Bill of Materials
FAST Diagram
Structured tool that describes the product
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Project scope management : WBS Work Breakdown Structure
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Project scope management : WBS of a software release
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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.
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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)

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Customer needs :
Customer needs
description :
simple,
red,
robust,
with
wheels
What is finally developed
What is the
manufacturer
expected to do
What the architect
finally described
What the architect
understands
Possible evolutions in Product scope
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Customers Needs
Specifications What has been
realised
Errors in
specifications
Waste
Unsatisfaction
Adequate
Quality
Happy
hazard
Overquality
Court circuit
Monitoring Project scope during the project
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Monitoring Project scope during the project
A universal tool
might be so heavy and expensive
??
??
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(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.
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Project triangle
Time, Cost, Quality
Agenda
Definitions
Time, quality, cost
Risk management
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Project time management
requires activity definition
includes activity sequencing
estimates activity duration
elaborates schedule of activities

Activity
duration model

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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)
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relationships between activities : Logical Relationship
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.
Activity A Activity B
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Network Logic Diagram
Precedence diagram method ; A, B, C, D, E, F are activities
A B
C
D
E
Finish
F
Start
Arrow diagramming method ; activities are shown as arrows
A
B
C
D
E
Finish
F
Start
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Provides start and finish dates for all activities
A B
C
D
E
Finish
F
Start
A
B
C
D
E
Finish
F
Start
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.
Critical Path. The series of activities that
determines the duration of the project. In a
deterministic model, the critical path is usually
defined as those activities with float less than or
equal to a specified value, often zero. It is the
longest path through the project. See critical path
method.
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Project Cost management
cost management includes the following processes
Resource planning - Cost estimating - Cost budgeting - Cost control

Time
Start Finish
Cumulative
values
Initial
Phase
Intermediate Phases
(one or more)
Final
Phase
Total budget
of the project
The S Curve of cost baseline
M
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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.
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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."
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Project quality management

Lets start with a story :
La Route du Rhum 2002
Only 3 sailers (upon 15) arriving at Pointe--Pitre !!!
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Quality management applies to :
- project activities
- and project results (deliverables, components)
to fulfil quality objectives.

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

The Deming Cycle
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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.
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Human resources
management

Agenda
Definitions
Time, quality, cost
Risk management
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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
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Airbus Company has been created to provide airplanes
It has been created from Aerospatiale, British Aerospace,
CASA, DASA

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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
Responsibility assignment matrix
P = Participant
A = Accountable
R = Review required
I = Input required
S = Sign-off Required
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Sub-contracting requires internal resources
for negociation and control.
Do not confuse : a subcontractor is not a partner
Subcontracting management

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Information
management
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Some tools (1)
Ensure message storage ?
Managing group lists ?
Impossible to share large files

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Some tools (2)
annotation and correction of documents
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Some tools (3)
Powerpoint
diapo
confrence
Chats
Microsoft
Netmeeting
Yahoo groups
Windows sharing,
shared blackboard
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Extended entreprising information system
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ENTREPRISES INFORMATION SYSTEMS
Maintenance
Marketing Design
Industrialisation
Quality assurance
Commercial
Production Logistics
Quality
E.R.P.
P.D.M./P.L.M.
K.B.E.
K. M.
C.R.M. S.R.M. A.P.S. M.E.S.
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Supplier
Orderer Sub-contractor B
Partner
Sub-contractor A
deiversified technical products
multi-sites, multi organisation
development and production
development under time constraints
physical flows
information flows
financial flows
decision systems
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Space
Time
Asynchronous Synchronous
S
a
m
e

l
o
c
a
t
i
o
n

D
i
s
t
a
n
t

Internet, Intranet, PDM, PLM
Engineering et communication situations
Project location
Slides-conference
Visioconference
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Organisations
Task 1
Task 2
Task 3
Tasks, processus
Files and Documents
Systems ?
Information System
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Rseau de Paramtres
1
2 4
5
10
12 14
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Organisations
Task 1
Task 2
Task 3
Tches, processus
Files and Documents
Quels systmes ?
Who is responsible on what?
Configuration managezment
Link between
parameters,
functions,
items
Links between documents and
assemblies and systems
Who do what ?
Who has done what ?
Parameter :
Physical value
Unit
version
tolerance and gap
.
Donneur d ordres
Partenaire rang 1
Equipementier
Sous traitant
Partenaire rang 1
Organisations, rles
au sein des projets
Value evolution
Value Evolution
Liens explicites entre
paramtres, et objets
documentaires
Action
Excution
Dcision
Notification
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Engineering change management
Engineering Change management
Automatisation du traitement des "Change Process"
S'assurer que toutes les tapes approbation/qualit ont
t ralises
Document Review
Router automatiquement vers les "reviewers" (requis
ou optionnels)
Grer les approbations ou re-router pour rvision
EC initialisation
EC Pre-feasibility
studies
EC Impacts
and feasibility
studies
Selection &
Solution Definition
Associated
documentation
up-date
New solution
notification
New solution
embodiment
Engineering
Change Request
(ECR)
Engineering Change
Proposal (ECP)
Solution to be implemented &
Potential impacts assessed
ECO released
Solution
implemented &
notified
Documentation
up-dated
ECR initialised
Potentialsolutions
defined
Documentation up-dated
New solution
notified
Stage 1: EC Proposal
Stage 2 : EC Investigation
Stage 3 : EC Embodiment
Notification
Files and Documents
Status
evolution
Push of
documents
Efficiency et Traing
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Risk Management
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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.
What is risk ?
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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 dernire
dition sur http://www.johnstark.com/xzxzx.html
PDM Information Center, http://www.pdmic.com/
CIMdata, http://www.cimdata.com/
PDM enablers de lOMG
http://www.omg.org/techprocess/meetings/schedule/PDM_RTF_1.5.html

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Project Management Presentation 2008

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