Project Management

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Project Management by Mind Map: Project Management

1. Introduction to PM

1.1. Production systems

1.1.1. Mass

1.1.2. Batch

1.1.3. Project

1.2. What is

1.2.1. One-off process (unique, temporary, unfamiliar)

1.2.2. Definable end-result or product

1.2.3. 3 key variables (constraints) - continuum Time Cost Quality

1.2.4. Also Secondary importance Complex Part of interlinked process

1.3. Types

1.3.1. Internal / non-executive - External / executive

1.3.2. Hardware - software

1.4. Characteristics

1.4.1. Concerned with multiple objectives (3 categories)

1.4.2. PM advice covers complete life-cycle Inception Feasibility Prototype Full design devt Tendering & contacting Manufacturing Commissioning Operation Decommissioning Removal / recycling

1.4.3. International profession with standards

1.4.4. Multi-industry, not specific to any one

1.4.5. But also industry specific standards

1.5. History

1.5.1. Great works of history (eg. pyramids)

1.5.2. Guilds & leagues, establish standards, qualifications and membership

1.5.3. Industrial rev. - from craftsmen to supervisors

1.5.4. 1900s Gantt Chart

1.5.5. 1940s Los Alamos

1.5.6. 1950s Du Pont - CPM US Navy - PERT

1.5.7. 1960s - PMI, APM and computer technology

1.5.8. 1990s - BS6079 & ISO10006

2. Individual & Team Issues

2.1. The PM

2.1.1. Is in charge for organizing and managing the team

2.1.2. Meeting objectives (time, cost, quality)

2.1.3. Needs influence in order to get it done

2.1.4. Needs both soft and hard skills

2.2. PM's primary functions

2.2.1. Project planning Most intense at beginning, diminishing as project progresses Good planning is critical, spend time on it Planning activities, their sequence, their budget Planning authority and communication relationships: TRM (who is responsible for what and when)

2.2.2. Authorizing Given from above Is ability to direct and control 2 things Get enough to get the job done Decide how much to delegate

2.2.3. Team organizing To get the job done, PM needs to devise the organizational structures and team management approaches Needs to understand the current modes of organization, not clash with them Theories (PM tend to favor Decision and Systems) Classical - people are components of production process Empirical - observe, interpret, correct process will emerge Behavioral Decision - study org mathematically, model Systems management - consider input, processing and output as part of a whole First meeting with PT is crucial OBS TRM Authority, communication, responsibilities The project programme

2.2.4. Controlling (measuring performance against targets, correcting when necessary) Targeting Measuring Evaluating Correcting

2.2.5. Directing - transform goals into reality using resources, including people

2.2.6. Team building - wield a group of people together into a team (10 steps)

2.2.7. Leadership Decision making Problem solving Integrate new members Interpersonal skills Identify and manage conflict Communication skills Interface management skills Factor-balancing skills Life-cycle leadership Task - stronger at inception and development People - stronger at development and stabilisation Both low at maturity - telling, persuading, participating, delegating

2.3. Project Team

2.3.1. Within functional organizations Advantages Disadvantages

2.3.2. Multidisciplinary & heterogeneity issues Sentience Interdependency pooled sequential Differentiation Integration

2.3.3. Difference Groups - collection of indiv. with common goal, formal or informal Teams, + under direction of a team leader

2.3.4. Performance Heterogeneity Cohesiveness

2.4. Team staffing

2.4.1. Ensure balance of skills and experience

2.4.2. Think of PT in wide terms

2.4.3. Essential staff PM (CEO) Project Planner (COO) Project Controller (CFO)

2.5. Team evolution

2.5.1. Through project life-cycle

2.5.2. 4 stages (Tucker) Forming (first meeting, TRM, OBS) Storming (conflict, establish cohesiveness) Norming (formal and informal norms) Performing

2.5.3. Groupthink

2.6. Team motivation

2.6.1. Mc Gregor Type X Type Y

2.6.2. Maslow Hierarchy of needs PM perspective Relative importance of needs Time-based requirements, higher level more complex, take more time Unsatisfied needs Anticipation

2.6.3. Equity theory Perception of what I do and how rewarded compared to other Inequality motivates

2.6.4. Expectancy theory Motivation is related to personal goal Align project/org and individual goals

2.7. Team communications

2.7.1. Inward, outward

2.7.2. Formal, informal

2.7.3. Internal, external

2.7.4. Operational islands

2.8. Team stress

2.8.1. Sources Environmental Personal Work

2.8.2. Symptoms Physiological Psychological Behavioral

2.8.3. Management Individual (diet, exercise, holiday) Team Deregulation Reasonableness Fairness Open-mindedness Flexibility Approachebleness

2.9. Conflict

2.9.1. characteristics + heterogeneity, multidisciplinarity + conflict - PM power and authority + conflict - specific/quantifiable objectives + conflict - communication within + conflict + change + conflict - perceived prestige of the project + conflict

2.9.2. Approaches Conflict is bad - avoid, suppress Conflict is natural - use it

2.9.3. Management Avoid Absorb Impose resolution Negotiate resolution

3. Risk

3.1. Concept

3.1.1. Risk=f(event, likelihood, consequences)

3.1.2. Risk=f(event, hazard, safeguard)

3.1.3. Other measures Exposure Sensitivity

3.1.4. Not bad

3.2. Human cognitive process

3.2.1. 3 phases Pattern recognition Attention Memory

3.2.2. Bounded rationality

3.2.3. Risk forecasting

3.2.4. Intuition and bias

3.3. Risk handling

3.3.1. Assessment Identify Analyse Classify Prioritize

3.3.2. Control Measure Respond Mitigate residual risk Establish contingencies

3.4. Types

3.4.1. Generic types Strategic Operational Financial Knowledge Catastrophic

3.4.2. Market & Static Market MBR MFR Static

3.4.3. External & Internal External = no control Internal = should some control

3.4.4. Predictable & unpredictable Predictable = known unknowns Unpredictable = unknown unknowns

3.5. Risk conditions and decision making

3.5.1. Certainty

3.5.2. Risk

3.5.3. Uncertainty Hurcwitz (maximax) Wald (maximin) Savage (minimax) Laplace

3.6. Management system

3.6.1. Identification

3.6.2. Classification Type Extent Impact

3.6.3. Analysis Risk map Risk grid

3.6.4. Attitude Averse Neutral Taker

3.6.5. Response Retention Reduction Transfer (contract, insurance) Avoidance Seek further info

3.7. Thus, contract to control risk

3.7.1. Completion (one-off)

3.7.2. Term (long-term)

3.7.3. SLA

3.8. Contracts

3.8.1. Basic contract theory For contract to be Mutual agreement Consideration Capacity Legal relations Communication Alternatives to performance Breach Frustration Rescission Rectification Void Termination / Determination

3.8.2. Characteristics Controllable or uncontrollable risks Express or implied terms

3.8.3. Transfer of risk

3.8.4. Variation orders

3.8.5. Claims

3.8.6. Types Professional services Standard form Nominated sub-contracts Utilities pro-forma Statutory contracts

3.9. Procurement

3.9.1. Types Strategic Project

3.9.2. Phases Establish objectives Exposure Alternatives Documentation Tendering Award Contract administration

4. PM Organizational Structures and Standards

4.1. Internal (non-executive) PM

4.1.1. Functional Structure Split into functional units of specialization Vertical hierarchy Functional boundaries Typical Govt Police, army Large corporations Advantages Intuitive, clear reporting Repetitive, learning curve, develops specialist knowledge Disadvantages Inflexible, rigid Functional output becomes the focus Tends to develop operational islands

4.1.2. Pure project structure Antithesys of functional structure Also within functional structure Appropriate when dealing with more uncertainty, difficult to plan PM draws resources from a pool, they stay together until Project is finished, then disband Can also be set up as separate org, parent company Advantages Flexible Clear PM authority Encourages innovation Team members have no functional loyalties, less conflict Disadvantages Several projects running concurrently = duplication of efforts Competition btw projects Can cause prolonged absence of team members from functions = loss of specialization / skill High staffing costs

4.1.3. Matrix structure (internal, non-executive PM) Project teams are formed across functional boundaries A blend, very popular Functional (vertical) and Power (horizoontal) boundaries Weak or Strong matrix structures Project sponsor Executive decisions when required Adjudicates disputes Allocates resources The PM Subordinate to project sponsor, Peer to function manager, Boss to team members Interfaces through horizontal and vertical boundaries Bidding to resource Needs accurate time recording and cost-center charging to avoid conflict Advantages Retains flexibility, works with functional units, is a compromise btw pure and function Operates as self-contained unit, balancing of resources Promotes innovation Disadvantages Conflict when balancing function and project responsibilities (2 bosses) Needs a sponsor Project tends to get robbed of resources through its life-cycle

4.2. External (executive) PM

4.2.1. What is Specialist PM consultants hired Can use All internal All external A mixture Consider Surrogacy Risk transfer

4.2.2. External contractual linkages Risk increases with external dependency (different from Internal PM) Pricing and arrangement Competitive (tender, bids) Negotiated Examples include Different forms (standard forms, professional services, supply, sub-contract, pro-forma) Typical linkages Client to PM, P design Team Client to main contractor Client to service authorities Client to subcontractors and suppliers Client to local authority

4.2.3. External non-contractual linkages Authority links Communication links

4.2.4. Fee structures Open and competitive, fee bid package approach Paid in blocks, at milestones completion of pre-contract works post-contract works Final account Percentage fees Measured works Final account total

4.2.5. Advantages Is flexible, can respond rapidly to change External specialists can bring new ideas and skills Can be established and disbanded quickly Keeps internal talent available for other things

4.2.6. Disadvantages Expensive No loyalty Risk profile changes - Recourse against poor performance can be difficult, possibility of arbitration and litigation enters Additional admin and control, rigid communications PM job becomes more complex

4.3. Criteria for choosing the OS

4.3.1. Broad considerations Authority Communication Knowledge transfer Loyalty Technology Cost Coordination Support required

4.3.2. Based on project objectives Pure function Infrequent, small projects Full outsourcing Matrix Reduce OH Research & Innovation is required Common use of resources Pure project Projects occur frequently / are dominant Complex production systems Fast response times needed High degree of uncertainty Long term projects Large numbers of people

4.4. Type of links

4.4.1. Authority

4.4.2. Communication

4.4.3. Contractual

5. Time planning & control

5.1. What is

5.2. Process of time planning

5.2.1. Factors influencing it Sources of data Own knowledge / experience Historical data Industry specific data Environmental conditions (e.g. competition) Contract / client requirements Stakeholder preferences Govt regulation Project uniqueness People issues Complexity - leads to WBS Uncertainty and change Communication

5.2.2. TDS approach SOW WBS Purpose Level of definition Numbering to accommodate CAC Preparing the WBS PLE Logic driven Resource driven > Precedence diagram DMS Networking Scheduling CPM PERT

5.3. Project replanning

5.3.1. Change

5.3.2. Mostly about time and cost

5.3.3. Crash analysis Typical T-C curve Steps Establish CP Calculate cost of crashing each activity Calculate cost per time unit Calculate crash sequence Re-check CP

5.4. Trade off analysis

5.4.1. Methodology 1. Identify reason for problem 2. Reevaluate project objectives 3 Allow for any other factors 4. Assemble a short list of solution scenarios 5. Select and test best alternative 6. Implement approved alternative

5.4.2. Classification One variable fixed time cost performance Two variables fixed time & cost fixed time & performance fixed cost & performance fixed Everything is fixed Nothing is fixed

5.4.3. Curve examples

5.5. Resource scheduling

5.5.1. 7 types of resources People materials equipment funds information technology space

5.5.2. 2 considerations productivity (logic driven) availability (resource driven)

5.5.3. Aggregation

5.5.4. Utilization

5.5.5. Levelling

5.6. Software

5.6.1. ++

5.6.2. --

5.6.3. General considerations

5.6.4. General features

5.6.5. Examples

6. Project Cost Planning & Control

6.1. Concept

6.1.1. Cost planning (strategic)

6.1.2. Cost control (tactical)

6.1.3. Use same WBS as time planning

6.1.4. Requirements SOW Clear scope of work Reliable estimating system Realistic budget Clear authorization system / signatories Flexible to allow change Reliable approach to tracking and variance analysis Variance sensitivity envelop time-dependent Contingency reserve (5-10%)

6.2. Types of control systems

6.2.1. Cybernetic High level Mid level Low level

6.2.2. Analogue

6.2.3. Feedback

6.3. Costs and allowances

6.3.1. Classification Fixed and variable Direct and indirect Measured works Contingencies and reserve Fluctuation (inflation) Prime costs and provisional sums Direct payments Bonds and warrenties Exchange rates and currency fluctuations Insurance

6.3.2. Life cycle costs Life-cycle phases Process

6.4. PCCS

6.4.1. Planning Estimating Who What Data gathering Presenting the estimate CDES Project estimating Top-down Bottom-up Iterative Bidding strategy Project budget plan Across the project, for each work package 1. Preliminaries 2. Prime costs 3. Provisional sums 4. Direct payments 5. Dayworks 6. Measured works 7, Contingency

6.4.2. Work initiation

6.4.3. Cost data collection Milestone monitoring EVA 7 considerations Variables Can be rolled up

6.4.4. Generation of variances Use both CV, SV and CVI and SVI Interpret Variance tracking Critical Ratio

6.4.5. Cost reporting Types routine development exceptional subject-specific PVAR

7. Quality

7.1. Story

7.1.1. <1940s Protected economies

7.1.2. 1940s> increased competition

7.1.3. Focus: minimize costs

7.1.4. 1960s>80s: Japanese dominate

7.1.5. From equal quality - better price, to better quality - better price

7.2. Japanese view

7.2.1. Overall value of Quality

7.2.2. Overall cost of defect

7.2.3. Quality dividends

7.2.4. Involving people

7.2.5. Proactive planning

7.2.6. Whole organization (TQM)

7.2.7. Educate the customer to expect quality

7.3. Quality gurus

7.3.1. Agree Whole Org. Focus on process defects, before employee defects Quality process must be structured To exceed customer expectations Rely on commitment

7.3.2. Deming 50s QM improves production 85% is up to management managements needs to focus on tomorrow Worker oriented, democratic type of M

7.3.3. Juran Top-down: plan, control, improve Boss type of M

7.3.4. Crosby Q is the universal goal Prevention, rather than detection/correction HR type of M

7.3.5. Imai Process approach, not results Continuous improvement, slow and consistent Like coach says: quality is a by-product, not our focus"

7.4. Quality standards

7.4.1. Early history

7.4.2. US Mil (1963)

7.4.3. BS5750

7.4.4. ISO9000

7.5. Quality control tools

7.5.1. Identification Pareto analysis Basic Comparative Weighted Brainstorming techniques Delphi Nominal group technique SWOT analysis

7.5.2. Analysis Scatter diagrams Control charts

7.5.3. Identification & analysis Cause and effect analysis Trend analysis

7.6. QM Six Pack

7.6.1. Policy

7.6.2. Objectives

7.6.3. Assurance

7.6.4. Control

7.6.5. Audit

7.6.6. Q Assurance plan & review

7.7. TQM

7.7.1. Quality is both a production and organizational concern

7.7.2. Enterprise wide

7.7.3. Continuous

7.7.4. Based on employee committment

7.7.5. Structured, 8 phases

7.7.6. Implemented 3 components Breakthrough DAM CFM

7.8. Configuration management

7.8.1. Format and layout (OBS)

7.8.2. Identification specification

7.8.3. Change control system

7.8.4. Status accounting and reporting

7.8.5. Audit and feedback

7.8.6. Baseline (to monitor change against)

7.9. Concurrent engineering

7.9.1. Characteristics

7.9.2. Phased

7.9.3. Fast track