Published on February 28, 2008
Project ManagementA Tool For ATO Success: Project Management A Tool For ATO Success Presented by: Pat A. Eigbe, PMP® Office of Innovations and Solutions, ATO-P February 18, 2004 Briefing Outline: 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 Project Management as a Tool: 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 Communications: Communications Tell the Marine to secure a building: they will kill everybody and point guns at the building. Tell the Army to secure a building: they will drive everybody out and lease the building to the highest bidder. Tell the Air Force 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. Understanding our Environment Project Management (PM) Terms: 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. Project Management Terms II: 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. Project Management Terms III: 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. Project Management Terms IV: Project Management Terms IV FAA standard wbs1-0.ppt WBS Dictionary 3.1 Requirement to use FAA Standard WBS – Mandatory Project Management Terms V: 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. Project Management Terms – VI: 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 Project’s Scope is Assigned to a Responsible Individual(s). Project Management: Relationship to Others Disciplines: Project Management: Relationship to Others Disciplines Project Management Knowledge and Practice General Management Knowledge and Practice Application Area Knowledge and Practice The PMBOK™ Figure is conceptual and overlaps are NOT proportional Systems Engineering/PM Relationship – I: 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 Systems Engineering/PM Relationship - II: 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 Systems Engineering/PM Relationship - III: 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 PMI Certification: PMI Certification What is PMP® What PMP® is not PMP® Value to Holder & Employer PMP® Certification Process link – visit http://pm.act.faa.gov PM Process Groups: PM Process Groups Project Information Flow PM Process Flow: PM Process Flow Initiation Processes : 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 Planning Processes I: Planning Processes I Identify Life Cycle approach Evolutionary (AMS 6101, Section 2.2) Incremental Waterfall Risk Management plan Planning Processes II: 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 Planning Processes III (Schedule Development): Planning Processes III (Schedule Development) Update & Decompose WBS Identify activities Sequence Estimate duration Estimate cost Allocate resources to work packages Baseline schedule Planning Processes IV: Planning Processes IV Risk management detail: Identification Analysis Response Procurement Implementation/Execution Processes: 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 Performance Measurement: Performance Measurement Variances Performance Indices Schedule performance Index (SPI) Cost performance Index (CPI) Earned Value Management System (EVMS) Earned Value Management System Highlights: Earned Value Management System Highlights What is EVMS Planning for EVMS Tracking & Analysis Elements of EV Analysis Project Cost & Schedule Forecasting EV Reporting Earned Value Management System (EVMS) - I: 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 Earned Value Management System (EVMS) - II: 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 Planning for EVMS - I: 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 Planning for EVMS - II: Planning for EVMS - II Award performance credit for physical % complete: 0-100 Short duration tasks < 160 hours EV is Zero until activity is complete 50-100 Duration less than 600 hours 50% at start of activity & 50% at completion Planning for EVMS - III: 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 Tracking & Analysis: 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 Elements of EV Analysis - I: 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 Elements of EV Analysis - II: 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 Elements of EV Analysis - III: Elements of EV Analysis - III SPI – EV/Planned Value SPI => 1.0, Project Schedule performing as planned or better SPI < 1.0, Project not performing as planned - needs help Elements of EV Analysis - IV: Elements of EV Analysis - IV CPI – EV/Actual Cost CPI => 1.0, Project Cost performing as planned or better CPI < 1.0, Project Cost not performing as planned - needs help % Over/Under Budget = CAC - BCWS Tracking & Analysis: 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 Project Cost & Schedule Forecast Methods: 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 EV Reporting: EV Reporting Interpret the output of EV calculations Take corrective action as necessary Recommend corrective action as necessary Control Processes I: Control Processes I Coordinate and control changes to project scope/requirements schedule budget Monitor and manage product quality Measure progress and report performance Control Processes II: 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 Closing Processes: Closing Processes Close out contracts Resolve any outstanding issues Document lessons learned Evaluate project Archive all project documents Conclusion: Conclusion Defined Frequently used PM Terminologies Discussed Objectives of Adopting Project Management Principles. Discussed PM Processes, Tools & Techniques Discussed EVMS Overview Questions References: 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 @ http://fast.faa.gov/wbs/wbssec.htm Questions/Need Help?http://pm.act.faa.gov : Questions/Need Help? http://pm.act.faa.gov Pat A. Eigbe, PMP® Ext. 5-7857 firstname.lastname@example.org
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