This Project Management Presentation was made for the Ateneo Graduate School of Business (AGSB) Middle Managers Operations Management Class, Semester 1 of 2011.

1. Project ManagementMMOPEMAN abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011

2. PROJECT MANAGERS

3. PROJECT Is a time bound endeavour undertaken to create a product or service. It is characterized by the need for the service of many different people in an organization while requiring considerable planning and coordination of tasks.

4. PROJECT MANAGEMENT The application of knowledge, skills, tools and techniques to project activities to meet requirements.

6. Take action by decomposition or breakdown into major project deliverables Work Breakdown Structure [WBS]

7. Constraints SCOPE of the PROJECT Ensuring the project includes all the work required and only the work required. TIME COST COST TIME QUALITY SCOPE

8. PROCESS GROUPS Initiate Plan Control Execute Close

9. PROJECT LIFE CYCLE This is usually misunderstood as the process groups in project management.

10. SPAN TIME ESTIMATING abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011

11. Determining When the Project will Be Done Project assignments always have DEADLINE. Required Info to determine the amount of time for your project: Duration: length each individual activity takes Sequence: order of activities

12. Developing a Network Diagram Network Diagram a flowchart illustrating the order of project activities performed

13. Developing a Network Diagram Elements of the network diagram: Event significant occurrences in project’s life; a milestone / deliverable; takes no time and consumes no resources—occurs instantaneously; signposts signifying certain points during project completion Activity describes action / work to go from one event to another in the project; consumes time and resources

14. Developing a Network Diagram Span-time: Actual calendar time to complete an activity DURATION of an activity Affected by amount of work effort, people’s availability, and whether people can work on an activity at the same time. Work effort, as opposed to span time, is the amount of time a person needs to work on an activity to complete it.

15. Developing A Network Diagram Activity-in-the-box approach (also called activity-in-the-node, precedence or dependency diagramming) Activity-on-the-arrow-approach (also called the classical or traditional approach)

16. Developing A Network Diagram Activity—work required to move from one event to another A tA = 0 B tB = 0 Event—milestone or deliverable Span Time—duration Event 1 t1 = 2 wks

17. Importance of A Network Diagram Determine how long the entire project will take Identify potential difficulties Consider alternatives to complete the project more quickly The network diagram represents your PLAN—your ROAD Map…

18. Defining Span Time Estimate Span-time estimate: your best sense of how long you need to actually perform an activity (realistically speaking)

19. The Underlying Factors The underlying makeup of an activity determines how long it will take. You are required to determine its different aspects and how they affect one other.

20. The Underlying Factors

21. Resource Characteristics Types of Resources to Support the Project:

22. Resource Characteristics For each resource, determine its… Capacity productivity per unit time period Availability on the calendar; when a resource will be available

23. Sources of Info Support Sources can be based from the following: Historical records of how long similar activities have taken place in the past People who have performed similar activities in the past People who will be working on the activities Experts familiar with the type of activity, even if they haven’t performed work exactly like it in the past

24. Improving Activity Span-Time Estimates Define your activities clearly. Subdivide your activities until your lowest level activity estimates are two weeks or less. Define activity start and end points clearly. Involve the people who will perform an activity when estimating its duration. Minimize the use of fudge factors.

25. Displaying your project’s schedule Key-events list Activities list Combined key-events/activities list Gantt Chart Combined milestone chart and Gantt chart

26. PROJECT SCHEDULING abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011

27. IMPORTANCE OF PROJECT SCHEDULE Provides a basis for you to monitor and control project activities. Helps you determine how best to allocate resources so you can achieve the project goal. Helps you assess how time delays will impact the project. Figures out where excess resources are available to allocate to other projects. Provides basis to help you track project progress.

28. SCHEDULE INPUTS Personal and project calendars– critical elements are working days, shifts and resource availability Description of project scope– key start and end dates Project risks– to ensure that there’s enough extra time to deal with identified risks Lists of activities and resource requirements– identifying possible constraints and other factors that may affect the schedule * A Project Manager should be aware of deadlines and resource availability issues that may make the schedule less flexible *

29. SCHEDULING TOOLS Schedule Network Analysis Graphic presentation of the project’s activities Gantt Chart useful tools for analyzing and planning more complex projects; helps you monitor whether the project is on schedule.

30. GANNT CHART

31. SCHEDULING TOOLS Critical Path Analysis & PERT Charts helps you to plan all tasks that must be completed as part of a project; act as the basis both for preparation of a schedule, and of resource planning

32. PERT CHART

33. Schedule Compression helps shorten the total duration of a project by decreasing the time allotted for certain activities. CRASHING - assign more resources to an activity thus decreasing the time it takes to complete it FAST TRACKING- rearranging activities to allow more parallel work SCHEDULING TOOLS

34. PROJECT REVIEW “ What if” scenario analysis compares and measures the effects of different scenarios on a project Resource leveling rearrange the sequence of activities to address the possibility of unavailable resources Critical chain method this also addresses resource availability; you plan activities using their latest possible start and finish dates Risk multipliers adding extra time to high-risk activities

35. KEY POINTS Scheduling aims to predict the future, and it has to consider many uncertainties and assumptions, The schedule identifies and organizes project tasks into a sequence of events that create the project management plan. A variety of inputs and tools are used in the scheduling process, all of which are designed to help you understand your resources, your constraints, and your risks. The end result is a plan that links events in the best way to complete the project efficiently.

36. RESOURCE MANAGEMENT abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011

37. RESOURCE MANAGEMENT The process of using a company’s resources in the most efficient way possible. resources such as goods and equipment, financial resources, and labor resources such as employees.

38. RESOURCE MANAGEMENT Resource management can include ideas such as making sure one has enough physical resources for one's business, but not an overabundance so that products won't get used, or making sure that people are assigned to tasks that will keep them busy and not have too much downtime

39. Human Resources Identify the skills and knowledge needed to perform your project’s activities Specify the people who’ll work on each activity Determine how much effort they have to invest to complete their assigned tasks Determine their slack times and reevaluate

40. ENNEAGRAM Use the ENNEAGRAM to get an insight on the qualities of our employees and to check if they “fit” into their job description. Appoint project leaders into more appropriate positions based on their strengths and weaknesses thus increasing productivity Can help understand fears and desires, strengths and weaknesses, defenses and anxieties, how we react to frustration and disappointment - and, more positively, what our truest capacities and greatest strengths are so that we can build on those rather than on misjudgments and illusions.

41. Skill Roster primary skill/ knowledge secondary skill/knowledge interest Person is able to assume a lead role in a task requiring this skill/knowledge Has some training or experience in the skill/knowledge but should work under another’s guidance Person would like to work on tasks involving this skill/knowledge

43. Consider their history

44. Have the person who’ll do the work participate in estimating the required work effort

46. Aligning the Key Players for the Project Recognize the people who define and influence your work environment Understand their unique roles Know how to work effectively with them to create a successful project Iloilo Plant Logistics Production Sales Engineering QA Project A Project responsibility Functional responsibility Project B Project C

47. Defining Team Member’s Roles and Responsibilities Authority ability to make binding decisions about your project’s products, schedule, resources, and activities Responsibility The commitment to achieve specific results Accountability Bringing consequences to bear in response to people’s performance.

48. Finalizing your Project’s Participants Inform them that your project has been approved and when the work will start Confirm that they are still able to support your project Explain what you will do to develop the project team and start the project work Reconfirm the work you expect them to perform, when they’re to do it, and the amount of time you expect them to spend on it

49. Work Order Agreement

50. Planning for Nonpersonnel Resources Resource matrix for all nonpersonnel resources Individual usage charts for each nonpersonnel resource Summary usage chart for all nonpersonnel resource

51. Resource Matrix for Nonpersonnel Resources

52. Usage Chart

53. Summary Usage Chart

54. COSTMANAGEMENT abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011

55. Cost Management Project Cost Estimation Progressive evolves as more project details become available. Variance each estimate should provide a range of cost and time.

56. What is a GOOD Estimate? Defines what the project will accomplish What assumptions were made How long the estimates are valid Project Cost based on the Current Information

57. What is a GOOD Estimate? Presents to the stakeholder everything that is relevant to the proposed work – Transparency. If there are any disagreements, in the estimate, it is better to talk about it sooner than later.

58. Estimate Phase #1 Ballpark or Rough Order of Magnitude (ROM) Based on high level objectives Typically high variance Depending on the industry +/- 25% to +/- 75%

59. Estimate Phase #2 Budget Estimate or Top Down Estimate A little more accurate Formulated in the early stages Uses info from previous experience/projects Range of variance is much smaller, +/- 10% to +/- 25%

60. Estimate Phase #3 Definitive Estimate or Bottom Up Estimate Requires a WBS (Work Breakdown Structure) WBS is a deliverables oriented decomposition of the project scope

61. WBS Example

62. WBS Explained Code of accounts clarifies the deliverable to all participants Provides an accurate record of all the elements in the project Saves time and helps control costs WBS Dictionary or Reference helps keep all divisions on the same page

63. Definitive Estimate Takes the most time but is the Most Accurate, +/- 5% to +/-10% of variance Very detailed Easier to make accurate estimates once you know everything that the project will create

64. POOR Estimates Controlled Poor planning Rushed, bloated, “low-balled” estimate Uncontrolled Fluctuation in Raw Materials costs Inaccurate information

65. POOR Estimates Can come from the Customer, Stakeholders, and even Project Sponsor Change Orders or new deliverables after project scope has been finalized

66. QUALITY & RISKMANAGEMENT abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011

67. Four Aspects of Quality Client Satisfaction Accurate and Current specifications Quality of the Product of the Project Quality of the Project

68. Achieving Quality Do the Right Thing Right the First Time (DTRTRTFT) The CUSTOMER is the next Person/Operation in the Process Statistical Process Control

69. Risk “The possibility that you may not achieve your product, schedule, or resource targets because something unexpected occurs or something planned doesn’t occur.”

70. Risk Management “It is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability & consequences of adverse events to project objectives.”

71. Risk Management Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring and Control

72. Taxonomy of Risks

73. REPORTING & CONROLMANAGEMENT abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011

74. Reporting & Control Managing the Scope Client Expectations Commitments The Vision Specifications Work Package/ Activity Performance Requirements Changes Documents

75. Reporting & Control Managing Work Package/Activity Performance Work authorization Activity Duration Schedule Activity Start and Completion Slack Maintaining a Sense of Urgency Relay Race Mentality Technical Objective Achievement Cost Control Carpe Diem

76. Reporting & Control Managing Resource Application Managing the Project Itself Visibility Maintaining Sense of Urgency Interfaces Over-all Cost Performance System Performance Replanning

77. THANK YOU abellon | calivo | dayan | gamba | marquez prof gus july 27, 2011