Project Management Concepts

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Project Management Concepts
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Project, Defined

• A project is an endeavor to accomplish a specific
  objective through a unique set of interrelated
  tasks and the effective utilization of resources.
• It has a well-defined objective stated in terms
  of scope, schedule, and costs.
• Project s are born when a need is identified by
  the customer the people or organization willing
  to provide funds to have the need satisfied.
• It is the people (project manager and project
  team), not the procedures and techniques, that
  are critical to accomplishing the project
  objective.
• Procedures and techniques are merely tools to
  help the people do their jobs.

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Examples of Projects

• Planning a wedding
• Designing and implementing a computer system
• Hosting a holiday party
• Designing and producing a brochure
• Executing an environmental clean-up of a
  contaminated site
• Holding a high school reunion
• Performing a series of surgeries on an accident
  victim

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There is a need
Project is born
Project life cycle (4 phases)
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Phases of the Project Life Cycle 1

• The first phase involves the identification of a
  need, problem, or opportunity.
• The need and requirements are usually written by
  the customer into a document called a request for
  proposal (RFP).

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Phases of the Project Life Cycle 2

• The second phase is the development of a proposed
  solution to the need or problem.
• This phase results in the submission of a
  proposal.
• The customer and the winning contractor negotiate
  and sign a contract (agreement).

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Phases of the Project Life Cycle 3

• The third phase is performing the project.
• Different types of resources are utilized
• Results in the accomplishment of the project
  objective

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Phases of the Project Life Cycle 4

• The final phase is terminating the project.
• Perform close-out activities
• Evaluate performance
• Invite customer feedback

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The Project Management Process

• The project management process means planning the
  work and then working the plan.
• 7 steps of planning
• 1. Clearly define the project objective.
• 2. Divide and subdivide the project scope into
  major pieces
• 3. Define the specific activities for each piece
  (work package)
• 4. Graphically portray the activities that need
  to be performed fro each work package in order to
  accomplish the project objective in the form of
  network diagram.
• 5. Make a time estimate for how long it will take
  to complete each activity resources needed.
• 6. Make a cost estimate for each activity.
• 7. Calculate a project schedule and budget to
  determine whether the project can be completed
  within the required time, with the allotted
  founds, and with the available resources.

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Project Control Process
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Work Breakdown Structure (WBS)

• The second step is to determine what activities
  need to be performed.
• A list of all the activities must be developed.
• The WBS is a hierarchical tree of end items to be
  accomplished.
• A work item is one small piece of the project.
• A work package is the lowest-level item.

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Microsoft Project WBS
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1. Start new project

• Turn on the Project Guide
• On the Tools menu, click Options, and then click
  the Interface tab.
• In the Project Guide settings section, select the
  Display Project Guide check box.
• Manually set up a new project

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Project Project Informationor View Turn on
project guide
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Tools - Options
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2. Tasks

• There are four major types of tasks
• 1. Summary tasks - contain subtasks and their
  related properties
• 2. Subtasks - are smaller tasks that are a part
  of a summary task
• 3. Recurring tasks - are tasks that occur at
  regular intervals
• 4. Milestones - are tasks that are set to zero
  duration and are like interim goals in the
  project

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Add tasks
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Insert new task
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Outlining tasks
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• Tools Options - check Show project summary
  task

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Predecessor
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Tasks can be linked in four ways

• Finish-Start FS Predecessor finishes and the
  other starts
• Start-Finish S-F Task begins at the same time as
  its predecessor
• Finish-Finish F-F Both tasks finish at the same
  time
• Start-Start S-S Start of the predecessor
  determines when the other starts

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Constraints

• Certain tasks need to be completed within a
  certain date.
• Intermediate deadlines may need to be specified.
• By assigning constraints to a task you can
  account for scheduling problems.
• There are about 8 types of constraints and they
  come under the flexible or inflexible category.

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3. Managing task
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Defining a Timeline

• Find an optimistic value, D(o),
• a pessimistic value, D(p) and
• a realistic value, D(r) .
• Then Duration ( D(o) D(p) 4 x D(r) ) / 6

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The importance of tracking progress

• Techniques to manage projects effectively
• Critical Path Management (CPM) and
• Program Evaluation and Review Techniques (PERT).
• They are similar and you will now often find the
  technique referred to as CPM/PERT.
• The technique involves using network models to
  trace the links between tasks and to identify the
  tasks which are critical to meeting the
  deadlines. Once you've identified the critical
  path, any delay on any part of the critical path
  will cause a delay in the whole project. It is
  where managers must concentrate their efforts.
• In MS Project, you use the Tracking Gantt diagram
  to show the critical path in red and you can see
  the PERT diagram by looking at the Network
  view.

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Gantt Chart View critical path

• A Gantt chart is a type of bar chart that
  illustrates a project schedule.
• Critical path View More views - Detail Gant

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PERT diagram - Network view
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Views

• Views allow you to examine your project from
  different angles based on what information you
  want displayed at any given time.
• You can use a combination of views in the same
  window at the same time.
• Project Views are categorized into two types
• Task Views (5 types)
• Resource Views (3 types)

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Saving a baseline

• Baseline plan The original project plans used to
  track progress on a project.
• The baseline plan is a snapshot of your schedule
  at the time that you save the baseline and
  includes information about tasks, resources, and
  assignments.
• You can set a baseline for your project, enabling
  you to compare your progress with the original
  plan and any additional baselines you set at
  milestones throughout your project.

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Saving a Baseline

• Tools Tracking Save Baseline

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Resources
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Manage the project resources

• people
• equipment
• supplies

• Resources are of three types
• work resources, material resources and cost
  resources.
• Work resources complete tasks by expending time
  on them. They are usually people and equipment
  that have been assigned to work on the project
  (you track their participation by the amount of
  time they spend).
• Material resources are supplies and stocks that
  are needed to complete a project. You assign
  material resources by the quantity that you need
  two tons of gravel or 300 gallons of diesel fuel,
  for instance. Because materials aren't measured
  by time, quantities usually affect only the cost
  of your project. Materials affect dates or
  duration only when you have to wait for those
  materials to become available.
• Cost. Cost resources are the new kid on the
  Project 2007 block, and they're strictly cost no
  time, no quantitiesjust dollars. Expenses, such
  as travel or fees, increase the project price
  tag, but they aren't associated with work or
  material resources.
• You must start by identifying the resources
  available along with their costs.
• Resource costs will be multiplied by duration to
  calculate project costs.
• You have to open the Resource sheet to specify
  the project resources and costs.

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Fields in the Resource Sheet may be blank or
contain different types of information depending
on the type of resource. For example, a work
resource doesn't have a Material label, and costs
are calculated initially as dollars per hour.
Material resources have a cost per unitper
pound, gallon, or pieceand the Material label
field defines the units. Cost resources receive a
value only when you assign them to tasks.
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Use the Detail Gantt view to find slack (float)

• On the View menu, click More Views.
• In the Views list, click Detail Gantt, and then
  click Apply.
• On the View menu, point to Table, and then click
  Schedule. In the chart portion of the view, slack
  appears as thin bars to the right of tasks, with
  slack values adjoining the regular Gantt bars.

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To shorten a project schedule

• Reduce duration of activities on critical path
• More resources
• Change their scope

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Technically Constrained Activity Sequence
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Resource-Constrained Planning
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Painting Project Showing Needed Resources
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Create a budget for your project

• Step 1 Create budget resources for your project
• Step 2 Assign the budget resources to the
  project summary task
• Step 3 Enter values for the budget resources
• Step 4 Categorize resource costs according to
  their budget type
• Step 5 Group resources to view how they compare
  against the budget

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Step 1 Create budget resources for your project

• Create Budget-Travel and Budget-Labor on your
  resource sheet

View Resource Sheet
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Check the check box for Budget
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Step 2 Assign the budget resources to the
project summary task

• Gent chart view Tools Options View Tab
  Show project summary task (check box)
• Task is added to the top of the project list.
  Select this task.
• Click on Button Assign Resources
• Select the two budget resources you created
  earlier and click Assign

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Step 3 Enter values for the budget resources

• View Resource Usage view
• Add Budget Cost and Budget Work fields (columns)
• Insert Column Budget Cost and Budget Work
• Add values for travel and Labor cost

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Add 15,000 for Budget-Travel and 30,000 for
Budget-Labor (Budget Work column)
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Step 4 Categorize resource costs according to
their budget type

• Create custom filed (column)
• Open Resource Sheet view
• Tools Customize Fields
• Choose Resource text filed and rename Budget Type

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Select Option Button Roll down unless manually
entered
Add field to the resource sheet view Insert
column choose Budget Type column ( you can now
identify your resources as labor or travel
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Step 5 Group resources to view how they compare
against the budget

• Resource Usage view
• Project Group by No Group Customize Group
  By - Select the Budget Type field

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Viewing Project Cost Information

• Right click the Select All button and click Cost
• Or
• View Table Entry Cost

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Reports

• Cost Report Reports - Reports Costs Cash
  Flow
• Edit Column list
• Project Summary report Reports Overview
  Project Summary

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Resource Usage Report
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Current Activity Reports