Project Management A Tool For ATO Success

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Project ManagementA Tool For ATO Success
Presented by Pat A. Eigbe, PMP Office of
Innovations and Solutions, ATO-P February 18, 2004
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Briefing Outline

• Project Management (PM) as a Tool
• Project Management Terminology
• PM Relationship to other Disciplines
• Project Management Processes
• Project Management Tools Techniques
• Summary/Conclusion
• Questions

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Project Management as a Tool

• Minimize Fire Drills
• Efficient Use of Resources
• Develop Better Metrics
• On-time and On-budget Product Delivery
• Apply Lessons Learned
• Better Communications Between Stakeholders
• Make Proactive Decisions

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Communications
Understanding our Environment
Tell the Marine to secure a building
they will kill everybody and point guns at the
building.
Tell the Air Force to secure a building
they will drive everybody out and lease the
building to the highest bidder.
Tell the Army to secure a building
they will surround the building and point guns at
the house.
Tell the Navy to secure a building
they will turn off all the lights, lock up the
house, and go home.
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Project Management (PM) Terms

• Project - A temporary endeavor undertaken to
  create a unique product or service.
• ATOP or VSCS - Project has a specific purpose
  with a start and an end date.
• Project Management - the Application of
  Knowledge, Skills, Tools, and Techniques to
  Project Activities to Meet Project Requirements.

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Project Management Terms II

• Program - A group of related projects managed in
  a coordinated way. Programs usually include an
  element of ongoing activity.
• CPDLC, SMA, URET CCLD, pFAST,as FFP1
• PM Tools Development as part of Program
  Management
• A Project/Program Manager (PM) - The Individual
  Responsible for Managing a Project/Program.

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Project Management Terms III

• Work Breakdown Structure (WBS) - A
  deliverable-oriented grouping of project elements
  that organizes and defines the total scope of the
  project. Each descending level represents an
  increasingly detailed definition of a project
  work.

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Project Management Terms IV

• FAA standard wbs1-0.ppt
• WBS Dictionary 3.1
• Requirement to use FAA Standard WBS Mandatory

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Project Management Terms V

• Deliverable Tangible, verifiable work
  product/service.
• Work Package A deliverable at the lowest level
  of the work breakdown structure. A work package
  may be divided into activities.
• Activity - Work elements with expected duration,
  cost, resources that may be subdivided into
  tasks.

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Project Management Terms VI

• Stakeholder Individuals or Organizations that
  will be Impacted by the Outcome of a Project.
• OBS An Organizational Chart Relating Work
  Packages to Organization Units.
• Responsibility Matrix Relates Organization
  Structure to WBS Ensures that each Element of
  the Projects Scope is Assigned to a Responsible
  Individual(s).

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Project Management Relationship to Others
Disciplines
The PMBOK
Project Management Knowledge and Practice
General Management Knowledge and Practice
Application Area Knowledge and Practice
Figure is conceptual and overlaps are NOT
proportional
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Systems Engineering/PM Relationship I

• PM Needs SE for
• Integrated PM System Design Implementation
• Requirements for HW and SW Tools
• SE Needs PM for
• Planning and tracking
• Managing Resources
• PM System Designer Must Understand both
• SE Not Necessary for PM Practitioners

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Systems Engineering/PM Relationship - II

• Risk Management
• PM - Schedule, Cost Technical/Quality
• SE Compatibility of Components of a System or
  Sub-System
• Quality Management
• PM - Process for Producing the Product
• SE - Ensure Product Meets the Technical or
  Quality Specifications

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Systems Engineering/PM Relationship - III

• Configuration Management
• PM - Ensure Integrity of Schedule and System for
  Schedule Management
• SE - Ensure Integrity of the System as Designed
• Change Management
• PM - Changes to Project Scope
• SE - Changes to System Requirement
• Measurement
• PM Program cost schedule performance
• SE Technical Performance

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PMI Certification

• What is PMP
• What PMP is not
• PMP Value to Holder Employer
• PMP Certification Process link visit
• http//pm.act.faa.gov

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PM Process Groups
Project Information Flow
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PM Process Flow
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Initiation Processes

• Identify project and sponsor
• Appoint Project Manager
• Train team on
• Project Management Process
• Project Plan (PMIP)
• Develop Program Directive to Include
• WBS that Covers the Scope
• High-level Milestones
• Budget resources

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Planning Processes I

• Identify Life Cycle approach
• Evolutionary (AMS 6101, Section 2.2)
• Incremental
• Waterfall
• Risk Management plan

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Planning Processes II

• Get approval for Program Directive
• Identify quality standards - use specs, IEEE,
  ISO, PMBOK
• Organizational structure
• Communications - who needs, what
• Acquire human resources for projects

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Planning Processes III (Schedule Development)

• Update Decompose WBS
• Identify activities
• Sequence
• Estimate duration
• Estimate cost
• Allocate resources to work packages
• Baseline schedule

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Planning Processes IV

• Risk management detail
• Identification
• Analysis
• Response
• Procurement

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Implementation/Execution Processes

• Use the PMIP to execute project activities
• Assess Technical Performance to assure product
  acceptance
• Distribute project information
• Make purchases
• Develop team skills/competencies
• Develop a Configuration Management plan

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Performance Measurement

• Variances
• Performance Indices
• Schedule performance Index (SPI)
• Cost performance Index (CPI)
• Earned Value Management System (EVMS)

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Earned Value Management System Highlights

• What is EVMS
• Planning for EVMS
• Tracking Analysis
• Elements of EV Analysis
• Project Cost Schedule Forecasting
• EV Reporting

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Earned Value Management System (EVMS) - I

• EV - Tool for Measuring Project Performance
• Integrates Cost, Scope Schedule measurements
• Compares work actually accomplished to work
  planned
• EV is an Early Warning System
• Helps management make proactive decisions to keep
  projects on course

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Earned Value Management System (EVMS) - II

• Involves Calculating 3 key Elements
• Budget - BCWS
• Actual Cost - ACWP
• Earned Value/Physical Progress - BCWP
• Basis for variance analysis

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Planning for EVMS - I

• Create a work breakdown structure
• Organize work into discrete work packages and
  activities
• Allocate a budget to each of the activities
• Develop a schedule and Assign resources
• Must include all project work in the schedule
• Establish the Project Baseline

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Planning for EVMS - II

• Award performance credit for physical complete
• 0-100
• Short duration tasks lt 160 hours
• EV is Zero until activity is complete
• 50-100
• Duration less than 600 hours
• 50 at start of activity 50 at completion

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Planning for EVMS - III

• Interim milestone
• Duration less than 600 hours
• Based on completed milestone for task
• Level of Effort (LOE)
• Long duration consistent tasks
• Difficult to measure - no deliverables
• Measured by duration of time used e.g. 10 weeks
  support is 50 complete at 5 weeks

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Tracking Analysis

• Each update cycle/Reporting Period
• Obtain physical complete for each task
• Calculate EV for each task
• Sum up EV for all tasks as project EV
• Calculate actual expenditure for actual work
  completed during the period
• Compare the Cumulative EV to Actual expenditure

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Elements of EV Analysis - I

• Performance indices relate value of work
  performed to dollar spent. e.g. CPI 0.65 means
  that for every dollar spent, actual value of the
  work performed is 0.65.
• Cumulative CPI used to forecast project cost at
  completion
• Cumulative SPI used to forecast project
  completion date

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Elements of EV Analysis - II

• Cost Variance - Difference between budgeted cost
  an activity actual cost of that activity
• CV EV - ACWP
• Schedule Variance - Difference between scheduled
  completion actual completion of an activity
• SV EV - BCWS

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Elements of EV Analysis - III

• SPI EV/Planned Value
• SPI gt 1.0, Project Schedule performing as
  planned or better
• SPI lt 1.0, Project not performing as planned -
  needs help

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Elements of EV Analysis - IV

• CPI EV/Actual Cost
• CPI gt 1.0, Project Cost performing as planned or
  better
• CPI lt 1.0, Project Cost not performing as planned
  - needs help
• Over/Under Budget CAC - BCWS

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Tracking Analysis

• Each update cycle/Reporting Period
• Obtain physical complete for each task
• Calculate EV for each task
• Sum up EV for all tasks as project EV
• Calculate actual expenditure for actual work
  completed during the period
• Compare the Cumulative EV to Actual expenditure

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Project Cost Schedule Forecast Methods

• Estimate at Completion (EAC) is total cost to
  complete an activity, work package, or a project
  expressed as
• EAC Actuals-to-date Estimate to complete
  (ETC)
• Cost EAC BAC/CPI

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EV Reporting

• Interpret the output of EV calculations
• Take corrective action as necessary
• Recommend corrective action as necessary

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Control Processes I

• Coordinate and control changes to project
• scope/requirements
• schedule
• budget
• Monitor and manage product quality
• Measure progress and report performance

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Control Processes II

• Monitor and control risks
• keep track of identified risks
• monitor residual risks
• identify new risks
• ensure execution of risk plans
• assess effectiveness in reducing risk

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Closing Processes

• Close out contracts
• Resolve any outstanding issues
• Document lessons learned
• Evaluate project
• Archive all project documents

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Conclusion

• Defined Frequently used PM Terminologies
• Discussed Objectives of Adopting Project
  Management Principles.
• Discussed PM Processes, Tools Techniques
• Discussed EVMS Overview
• Questions

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References

• Project Management Institute (PMI), 2000. A Guide
  to the Project Management Body of Knowledge (the
  PMBOK Guide)
• Stratton R. W., 1999. Improving SPI and CPI
  Calculations on LOE Heavy Programs, Proceedings
  of the 30th Annual PMI Seminars Symposium
• Fleming and Koppeman, 1996. Earned Value Project
  Management.
• Ibbs W Reginato J., 2002. Quantifying the Value
  of Project Management
• Kerzner H, 2003. Project Management A Systems
  Approach to Planning, Scheduling, and
  Controlling.
• FAST _at_ http//fast.faa.gov/wbs/wbssec.htm

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Questions/Need Help?http//pm.act.faa.gov

• Pat A. Eigbe, PMP
• Ext. 5-7857
• patrick.eigbe_at_faa.gov