Managing Projects from start to finish complete course

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Managing Projects from start to finish complete course by Mind Map: Managing Projects from start to finish complete course

1. 1. Introduction

1.1. What is a project?

1.1.1. A complex, non-routine, set of activities, undertaken by an individual or group with the purpose of producing a defined and unique, non-repetitious result.

1.1.2. A project has a defined scope, with a finite life span, an agreed cost and quality.

1.1.3. The result or product can be both tangible or intangible.

1.1.4. Usually involves several departments or professionals and always involves a level of risk.

1.2. What is project management?

1.3. What is the role of a project manager?

1.4. What is the typical project life-cycle?

2. 2. Organisational Strategy, Structure and Culture

2.1. Strategic Management Process

2.1.1. Review and Define the Organisations Mission Create mission statement Communicate mission statement throughout organisation Must be company specific

2.1.2. Set Long-Range goals and objectives Set at all levels of organisation Outline direction of organisation Objective must be SMART Specific Measurable Assignable Realistic Time Related

2.1.3. Analyse and formulate strategies to reach objectives Answers questions on 'what' needs to be done Evaluate alternatives Customers perspective is important SWOT Analysis Strengths Weaknesses Opportunities Threats

2.1.4. Implement these strategies through specific projects Answers question of 'how' it will be done Includes the allocation of resources Requires organisational structure that complements strategy Include planning, control and measurement tools

2.2. Organisational Structure

2.2.1. Functional Untitled Advantages No change Flexibility In-depth expertise Easy post project transition Disadvantages Lack of focus Poor integration Slow Lack of ownership

2.2.2. Coordinated Matrix

2.2.3. Matrix Untitled Advantages Efficient Flexible Strong project focus Relativly easy post project transition Disadvantages Dysfunctional conflict Infighting Stressful Slow

2.2.4. Seconded Matrix

2.2.5. Pure Project - Integrated Project Teams Untitled Advantages Simple Fast Cohesive Cross functional integration Disadvanteges Expensive Internal strife Limited technological expertise Difficult post-project transition

2.3. Interface Management

2.3.1. Critical To Effective Project Management

2.3.2. Interface result whenever work is divided and allocate to teams or individuals

2.3.3. Types of Interface Personal Organisational System

2.3.4. Interfaces and Communications Main issue is ensuring effective communication Be aware of both formal and informal channels External interfaces usually managed formally in the form of reporting

2.3.5. Interface Management Tools Specifically Designed Forms Reports Faxes Change Control Equipment Lists Meeting Minutes Information Management Systems Responsibility Matrices

2.4. The Project Manager

2.4.1. PM The Role Plan the project Organise to carry out the plan Implement the plan Control to follow the plan Lead the project team Motivate staff Keep perspective Encourage group decision making Maintain group behaviour Aim for win-win outcomes

2.4.2. PM The Person Provides integration Varying level of authority depending on org structure Always has responsibility for project Does not need to be technical hot-shot but requires understanding for decision making

2.4.3. PM The Traits Intelligence Energy and Drive Self-assuredness Perspective Communications ability Ability to persuade and negotiate Management skill and specialist knowledge (HR, Legal, Resource Management)

2.4.4. PM The Styles Democratic Autocratic Bureaucratic Laissez Faire See Managing People Map, Leadership Section

3. 3. Defining the Project

3.1. Define the Project Scope

3.1.1. Purpose of Scope Statement To clarify the deliverables To focus the project on these goals Used by the project owner and planner a tool for measuring progress and success

3.1.2. Scope Statement Project Objective Deliverables Milestones Checkpoints in the project Describes what the project should achieve, not how Activities are carried to achieve milestones Milestone plan Technical Requirements Limits and Exclusions Reviews with Customer

3.1.3. Terms and Definitions Scope Statement Project Charter Project Creep

3.2. Establish Project Priorities

3.2.1. Causes Project Trade-offs Untitled

3.2.2. Managing Priority Trade-offs Constrain The parameter is a fixed requirement Will affect performance Enhance Optimising a parameter over others Will affect time Accept Reducing (or not meeting) a parameter requirement Will affect cost

3.3. Create Work Breakdown Structure (WBS)

3.3.1. Hierarchal Hierarchal outline (map) that identifies the work elements of the project Defines the relationships of the final deliverables to the sub-deliverable and their work packages Best suited for design and build projects with tangible outcomes

3.3.2. Process of Defining Identify products Identify work needed for products Identify work needed to integrate products Identify any management or testing work Construct Hierarchy

3.3.3. Work Package Lowest Level of WBS Provides dictionary of work involved Used to measure Progress A Good Work Package has: WBS Element name and number Work definition Inputs / predecessors Responsible groups Explicit spec of outputs Budgets, schedules and cost estimate Labour and Resource Requirements

3.3.4. Example Untitled

3.4. Integrating WBS with the Organization

3.4.1. Organisational Breakdown Structure (OBS) Provides framework to summarise organization work unit performance Identifies organizational units responsible for work packages Ties organizational units to cost control accounts

3.5. Coding the WBS for the information system

3.5.1. Untitled

4. 4. Managing Project Time and Costs

4.1. Introduction

4.1.1. There is inherent uncertainty in all project costs

4.1.2. Estimating the cost of a project is required for tender application

4.1.3. Estimating costs money, the more accurate the estimation the more expensive it will be

4.2. Items to Consider when Making Estimates

4.2.1. Elements for cost estimation Labour Subcontractors & Consultants Materials Travel Equipment Facilities Rental Other items specific to type of project

4.2.2. Factors that influence quality of estimation Planning Horizon Project duration People Project structure & organisation Padding Organisational culture

4.3. Methods

4.3.1. Material Take-Offs (MTO) Involves high detail Obtaining quotes for specific work

4.3.2. Factoring Based on historical data and existing projects Less detail and accuracy than MTO Each industry has documented factors List of factors Time Factor Scale Factor Complexity Factor Location Factor Exchange Rates Contingencies

4.4. Estimate Types

4.4.1. Screening Estimate Purpose Project initiation, earliest economic appraisal, used for ranking of project and selecting which projects should be done. Accuracy Around 40% Estimate Method Factoring

4.4.2. Feasibility Study Purpose More detailed techno-economic analysis of preferred alternative project schemes Accuracy Around 25% Estimate Method Factoring

4.4.3. Budget Estimate Purpose Preparation of project development plan; approval of budget for further front-end engineering Accuracy Around 15% Estimate Method Factoring and some MTO

4.4.4. Control Estimate Purpose For use in project implementation plan, checking bids, cost control and reporting, performance appraisal, trend analysis, forecasting and budget revisions Accuracy Between 8% and 10% Estimate Method Full MTO

4.5. Estimate Problems

4.5.1. Ommision of scope

4.5.2. Misinterpretation of scope

4.5.3. Poorly defined or over optimistic schedule

4.5.4. Over optimistic estimating

4.5.5. Risk and uncertainty not adequately condidered

4.5.6. Escalation not considered

5. 5. Developing a Project Plan

5.1. Introduction

5.1.1. Project Networks Used for planning, scheduling and monitoring project progress Developed from the WBS Shows the logical sequence, and interdependencies of the tasks Gives the task durations, longest path is known as the 'critical path' Gives a good overview of the project that the PM uses for decisions in cost, time, quality

5.2. Gantt Charts

5.2.1. Limitations Do not show relationships and dependencies well Do not indicate slack well Do not show resource requirements well

5.3. Network Diagrams

5.3.1. Limitations Show relationships and dependencies well Show slack well Provide Analysis information Do not show time graphically Do not show resource requirements Can be very large and complex

5.4. Critical Path

5.4.1. One of the most useful tools

5.4.2. Any event with zero float is critical

5.4.3. Any

5.5. Summary

5.5.1. Project Network is very useful tool

5.5.2. Easily understood by others

5.5.3. Can provide estimate of project duration

5.5.4. It provides the basis for budgeting and cash flow

5.5.5. It identifies the critical path and critical activities

6. 6. Managing Risk

6.1. Introduction

6.1.1. Due to the unique nature of a project, there is an inherent level of risk.

6.1.2. In project environment risk is an uncertain event

6.1.3. No amount of planning can remove risk entirely, but only manage it

6.1.4. Definitions Risk Management: The culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects. Risk: The chance of something happening that will have an impact on the objectives. Measured in terms of consequence and likelihood

6.1.5. Untitled

6.2. Risk Management Plan

6.3. The Risk Management Process

6.3.1. Risk Identification Analyse the project and identify the possible risks Create a list as comprehensive as possible, be creative and imaginative. These are filtered at the next stage A useful tool is the WBS, as a guide for the cause of a risk to the project Some professionals may be needed depending on the technical nature of the project, or particular area of expertise

6.3.2. Risk Assessment The list created in the previous stage is assessed by the project manager. A useful methods are Scenario Analysis and Risk Response Matrix Scenario Analysis Severity and outcome Likelyhood When in the project the event may occur The effect on other aspects of the project Risk Response Matrix Risks are listed in a table Likelihood and Consequence are graded 1 - 5 Risk Exposure is calculated by multiplying these two measures Detection Difficulty Ratio/Range Analysis Probability Analysis Scenario Analysis

6.3.3. Risk Response Development Develop strategy to minimise damages Mitigating Avoiding Impossible to avoid all risk Good for small problems, early in project Transferring Very common Will cost more Fixed price contracts Suitable selection of third party is required Communicate risk Sharing Retaining Large risks with low likelihood Contingency plan is vital Risk should be planned in the budget so it can be absorbed if it does occur

6.3.4. Risk Response Control Implement risk strategy Monitor and adjust for new risks Risk reporting should be part of all progress reports. Document responsibility, of risk, 'owner' and response

6.3.5. Risk Process Diagram Untitled

6.4. Contingency Planning

6.4.1. Alternative plan to be used if a risk become a reality, the best alternative plan

6.4.2. Should answer questions of what, where, when, and how much action should be taken

6.4.3. The conditions under which the contingency plan must be clearly documented. As well as the source of funding

7. 7. Scheduling Resources

7.1. Introduction

7.2. Project Constraints

7.2.1. Technical or Logic Constraints Common Unavoidable

7.2.2. Resource Constraints Parallel tasks Add more resources Take priority over technical constraints but do not violate them

7.2.3. Physical Constraints Rare

7.3. Types of Resource

7.3.1. People

7.3.2. Materials

7.3.3. Equipment

7.3.4. Working Capital

7.4. Rules for Resource Levelling

7.4.1. 1. Minimum Slack

7.4.2. 2. Minimum Duration

7.4.3. 3. Task ID

7.5. Summary

7.5.1. Resource availability is huge problem for PMs

7.5.2. Resource bottlenecks must be identified as early as possible.

7.5.3. Resource levelling ALWAYS reduced total slack, increasing risk!!

8. 8. Reducing Project Duration

8.1. Introduction

8.1.1. Crashing projects increases risk

8.1.2. The amount a project can be crashed depends on the sensitivity

8.1.3. A sensitive network has many critical paths

8.2. Reasons for reducing project duration

8.2.1. Changed duration times

8.2.2. Time to market considerations

8.2.3. Incentive contract

8.2.4. Key resource needs

8.2.5. High overhead costs

8.2.6. Unforeseen delays

8.3. Indirect Costs

8.3.1. Overheads such as administration, consultants and loan interest

8.3.2. Can not be associated with any work package or activity

8.3.3. Vary directly with time

8.3.4. Are a large part of total project cost

8.3.5. Changing duration can have a big effect

8.4. Direct Costs

8.4.1. Costs related to work, materials, equipment

8.4.2. Assigned to specific work packages

8.4.3. Vary indirectly with time

8.5. Relationship Between Costs Graph

8.5.1. Untitled

8.6. Options for Accelerating Project Completion

8.6.1. Adding resources Most common method for shortening project time Doubling resources will not halve duration Depends on the complexity of the task Training may be needed

8.6.2. Outsourcing project work Another common method Contractors may be more experienced Also frees the resource for something else Costs more

8.6.3. Scheduling overtime Easiest way to add more resources Avoids additional costs of coordination Intangible costs to staff lifestyle Motivational problems

8.6.4. Establishing a core project team Assigning specialists full-time deduces the They will devote all their attention

8.6.5. Do it twice - fast and correctly Short term solutions to critical paths Can re-visit later when pressure is on

8.6.6. Fast-tracking Re-arrange the project network so that critical activities are done in parallel Change relationships to start-start

8.6.7. Critical-chain Method of management to reduce project duration Critical chain is the longest sting of dependencies that run through the project. Depends on resources and technical constraints See stand alone topic

8.6.8. Brainstorming time savers Use entire team for ideas Tap different experience and skills

8.6.9. Reduce project scope Another widely used method Leads to a reduction in the functionality of the project Required careful consideration and communication with client

8.6.10. Phase project delivery Split the deliverables into smaller items Something useful is achieved earlier Some value has already been recovered As long as the client wants it

8.6.11. Compromise quality Last option Use on tasks that are on critical path

8.7. Summary

8.7.1. There is always the need to reduce project duration

8.7.2. Time spent on during the definition and planning

8.7.3. Contingency plans and alternatives are valuable

9. 9. Leadership: Being an Effective Project Manager

10. 10. Project Management Contract Law

10.1. Contracts

10.1.1. Legally enforceable document

10.1.2. Either between Principle and Contractor Contractor and Subcontractor

10.1.3. Provides Risk sharing Responsibility assignment Objectives Administrative procedures Rewards Penalties

10.2. Types of Contract

10.2.1. Lump Sum

10.2.2. Schedule of Rates

10.2.3. Cost plus Fixed Fee

10.2.4. Cost plus Percentage Fee

10.2.5. Percentage Fee

10.3. Special Forms of Contract

10.3.1. Novated Contracts Assigned to specialists in initial stages Then transfers to other contractors during later stages

10.3.2. Design and Construction 'Turnkey'

10.3.3. Partnering and Alliance Involves setting up dispute resolution procedures Parties undertake work cooperatively Long term partnering contracts

10.4. Elements of a Contract

10.4.1. Agreement A meeting of the minds Usually a response to tender documents Acceptance must be without qualification

10.4.2. Consideration Gives the value of the transaction Usually financial reward on completion

10.4.3. Intention Parties mus be intent on filling the agreement Including the rights and responsibilities

10.5. Other Legal Elements

10.5.1. Genuine Consent

10.5.2. Action must be taken in 6 years

10.5.3. Unless 'under seal', which then increases to 12 years

10.5.4. Waiver and Estoppel Waiver Describes the circumstances where one party indicates that the contract is no longer valid Estoppel Arises from the conduct of a party and usually results in a waiver

10.6. Practical Completion

10.6.1. Stage in the contract when the product can taken over by the principle and used safely

10.6.2. The defect liability period will still apply

10.6.3. Final payment, less security is released

10.6.4. Ownership is formally transferred

10.6.5. Responsibility for insurance is transferred

10.6.6. Final certificate is issued once defect removed and remedial work is complete

10.7. Tort Law

10.7.1. The 'duty of care' of an organisation

10.7.2. Ingredients to per sue action in a Tort case Breach of duty of care Injury or damage following from the act A reasonable connection between act and injury Injured party must not have contributed to the loss The injured pary has the duty to mitigate the loss

10.7.3. Tort in Contracting

10.8. Job Changes

10.8.1. Variations Different methods used Different equipment used Changes to planned layout Contractor must show that additional costs were incurred even though the final result is the same

10.8.2. Extras Changing quantity of work Wrongly rejecting work, increasing cost Changing quality of work Having to demolish or re-do work Usually more identifiable than variations

10.8.3. Program Changes Changes to sequence of work Acceleration of contract prgram Prolongation of contract program Usually increases the cost of contract

10.8.4. Extension of Time Most common job change Depend on situation and type of contract Events resulting in extensions usually listed in contract Formal extensions are required

10.9. Good Practise Legal Tips

10.9.1. Keep al forms

10.9.2. Correspondence files

10.9.3. Daily diaries

10.9.4. Progress reports

10.9.5. Photographs

10.9.6. Records of meetings

10.9.7. Emails

11. 11 Project Audit and Closure

11.1. Finishing the Work

11.1.1. Checklists of remaining work

11.1.2. Planning and Controlling at low levels of WBS

11.1.3. Planned run-down of project team

11.1.4. Use task forces

11.1.5. Changing the PM

11.1.6. Closing contracts with suppliers

11.2. Transferring the Product

11.2.1. Planning the transition

11.2.2. Ensureing the user acceptance

11.2.3. Training the user

11.2.4. Recording the 'as-built' design

11.2.5. Ensuring the maintenance is planned

11.3. Obtaining the Benefits

11.3.1. Setting a measure

11.3.2. Monitoring performance against measure

11.3.3. Calculate variancies

11.3.4. Taking action to correct large variances

11.4. Disbanding the Team

11.4.1. Must maintain motivation

11.4.2. Returning resources to line managers

11.4.3. Hold a wrap party - success or failure

11.4.4. Hold debriefings

11.4.5. Rewarding achievement

11.4.6. Disciplining under-achievement

11.4.7. Counselling staff

11.5. Post-Completion Review

11.5.1. Record 'as built' design

11.5.2. Compare achievement to plan

11.5.3. Record technical data

11.5.4. Learn successes and failures for future

12. Critical Chain Project Management

13. PERT: Program Evaluation and Review Technique