00 IGTR CIPM Handouts April 2014

8/12/2019 00 IGTR CIPM Handouts April 2014

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Organised by

Centrefor Excellence in Project Management (P) Ltd.

A-48, Sector 5, Noida 201301

Tel: (0120) 242-0444, 242-0463 M: +91 9999 684 632Email: [email protected] & [email protected]

for

Three Day Workshop

on

leading to the Cert ificate In Project Management (CIPM)

Totality of Project Management

7 - 9 April 2014

Indo German Tool Room

Aurangabad


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Three day Workshop on


Leading to the

Certification in Project Management (CIPM)

Workshop Agenda

Centre for Excellence in Project Management (P) Ltd. (CEPM) 2014

A - 48, Sector - 5, Noida - 201 301, India Tel.: (120) 242 0444, 242 0463 Fax: (120) 242 1482

Email: [email protected] Website: http://www.cepm.com

ii

Day 1

0930 - 0945 Inauguration- Saraswati Invocation- Introduction

0950 - 1100 Project Management Knowledge (PMKQ) TestProject, Programme, OperationsProject Management

1100 - 1120 Tea Break

1120 - 1315 Project Life CycleNeed AnalysisProject StakeholdersBusiness Case

- Payback Period, NPV, IRRProject CharterProject Management PlanPractice Q&As

1315 - 1400 Lunch

1400 - 1510 Success Criteria for projectScope & Deliverables Management

- Work Breakdown Structures

1510 - 1530 Tea Break

1530 - 1745 Time Management

Network Diagrams- Critical Path analysis (CPM)

- Bar charts- Resource Histograms- PERT, Standard Deviation

Duration Compression- Crashing- Fast Tracking

Practice Q&As


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Leading to the


Workshop Agenda




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Day 2

0930 - 1100 Cost ManagementCost EstimationCost BudgetingEarned Value Management System

Practice Q&As

1100 - 1120 Tea Break

1120 - 1315 Quality Management Quality Planning, Assurance, Control

- Quality toolsPractice Q&As

1315 - 1400 Lunch

1400 - 1510 Risk Management- Risk identification- Qualitative and Quantitative Risk analysis- Risk Response Strategies

Practice Q&As

1510 - 1530 Tea Break

1530 - 1745 HR Management Organization Structures

Roles & ResponsibilitiesResponsibility Assignment MatrixTeamworkConflict ManagementLeadershipMotivating Team Members

Practice Q&As


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Leading to the


Workshop Agenda




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Day 3

0930 - 1100 Communication ManagementInformation & ReportsProcurement & Contract Management

Practice Q&As

1100 - 1120 Tea Break

1120 - 1215 Procurement & Contract Management (Contd.)

1215 - 1315 NegotiationChange Control processesConfiguration ManagementIntegrationProblem SolvingDeliver & CloseoutLessons LearnedPractice Q&As

1315 - 1400 Lunch

1400 - 1500 Mock Test (60 Minutes)

1500 - 1520 Mock Test Discussion

1520 - 1540 Tea Break

1545 - 1745 CIPM f inal Examination (2 hrs)- CIPM exam is administered by the Institute of ProjectManagement Certification ( IPMC), the national PM CertificationBody of PMA, India


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v

The CIPM examinationThe CIPM examination

Is AdministeredIs Administered

byby

PMAPMA

The Indian National Certification body ofThe Indian National Certification body of

International Project Management AssociationInternational Project Management Association

(IPMA), Switzerland(IPMA), Switzerland

IPMA membership across 56+IPMA membership across 56+ countriescountries

Some Leading companies that have opt ed for CIPM

NTPC

NHPC

Coal India

Adan i Power

Avera

Bharat Hotels

Fortis Healthcare

GAIL

HCL Technologies

Indian Oil

IL&FS Property Mgmt

Lanco

Idea Cellu lar

Jindal Steel & Power

Mazagon Dock Ltd.

Max Health care

GENPACT

MECON

North Delhi Power Ltd

Numaligarh Refinery

Neyveli Lignite

Nuclear Power

Oil India Ltd

Philips Carbon Black

Rail Vikas Nigam Ltd

RITES Ltd.

Power Grid Corp.

SAIL

Tehri Hydro

Xansa (India) Ltd

CIPM Exam consists of 1 PaperCIPM Exam consists of 1 Paper

Total Time: 2 Hours

Total Questions: 125 multiple choice

questions in 4 sections

Total Marks :Total Marks: 175175

Passing Score: Overall 60%

50% in each section Must

CIPM ExamCIPM Exam has 3 Types of Questionshas 3 Types of Questions

Type 1:Type 1: Has 1 answer fromHas 1 answer fr om 44 opti ons.options.

CarriesCarries 11 markmark

Type 2:Type 2: Has 1 answer fromHas 1 answer from 55 options.options.

CarriesCarries 22 marksmarks

Type 3:Type 3: Select 1 answer fr omSelect 1 answer fr om 44 options.options.Needs calcul ations. Carri esNeeds calculati ons. Carries 55 marksmarks

Negative Marking: 25% of the marks fo r the questi onNegative Marking: 25% of the marks fo r the questi on

CIPM ExamCIPM Exam BreakBreak--up of Questionsup of Questions

Section

Type 3Questions5 marksper Qstn

Type 2Questions

2 marks perQstn

Type 1Questions1 mark per

Qstn

Total

marksin

Paper

Passmarks

Sections

50%

Paper

60%

1 2 (10 mks) 5 (10 mks) 15 (15 mks) 35 17

2 4 (20 mks) 11 (22 mks) 28 (28 mks) 70 35

3 - 5 (10 mks) 25 (25 mks) 35 17

4 - 5 (10 mks) 25 (25 mks) 35 17

Total no.of Qstns

in Paper

6 out of125 Qstns

26out of125 Qstns

93 out of125 Qstns

175 105


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Centre for Excellence in Project Management (P) Ltd, 2014

2014 CEPM

Cer t i f i ca t ion In Pro jec te r t i f i ca t ion In Pro jec tManagementCIPM)

1

To ta l i t y o f Pro jec t Managemento ta l i t y of Pro jec t ManagementLead ing to

2014 CEPM

What is a Project?

Means of converting Vision to Reality

A set of act iv it ies undertaken to meet

specific objectives for changes

A temporary endeavor undertaken to create

a unique product, service or result

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New products / services / Business

processes / Infrastructure

Changes in existing products and services

Projects can be undertaken for:

Projects are undertaken for diverse reasons:

Business

Industry

Government

Social sector

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What is a Project?

2014 CEPM

What is a Project?

Project has following Characteristics:

Temporary have a defini te beginning and an end

Unique no two pro jec ts are ident ical

Predefined goals & objectives financial/ soc ial /economic

Budgets & schedules prefixed budget and t imeframe

Uses Resources & Manpower bo th are l imi ted

Quality / Performance determined at beg inning

Face Risks known and unknown risks

Have a Project Li fe cycle many phases f rom start to end

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What is a Programme?

Management of a coherent group or a

collection of projects that are related to a

common objective to deliver additional

benefits to the organization.

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What is a Programme?

A group of projects related to a common

objectives e.g. business aim

An interdependency between number of projects

Creating more benefit for the organization

Resource allocation amongst a portfo lio of projects

Achieve overal l benefi ts for the business not jus t

for a project

An organizations business st rategy required to

be implemented through projects

Programme management can cover:

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Project Life Cycle

Project Life Cycle (PLC):

Length of each phase will vary

Each phase associated with major processes anddeliverables

Names used to describe each phase will vary

A PLC is a sequence of phases from project start to pro jectend

Generically there are 4 phases :Start or Concept phase,Planning phase , Execution Phase & Delivery/CloseoutPhase

However, Number of Phases in PLC wil l vary depending onthe industry or sector

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Project Life Cycle

5. Requirements

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What is a Project?

Project Life Cycle:

Conceptualize

Plan

Organize

Implement

Control

Integrate

Deliver & Closeout

Knowledge Leverage

In CIPM, the PLC is div ided into these 8 generic phases

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Project Life Cycle

Work can be broken up into manageableblocks or phases

Each phase has specif ic deliverables More efficient allocation of all kinds of

resources requirements vary with phase

Better cost control funds needed for next phase,procurement can be planned & released as needed

Allows better planning, scheduling, est imating& control

Some Advantages of a Project Life Cycle:

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Characteristics Of A Life Cycle

High

Low

Opportunity to add Value

Cost to make change

Life Cycle of Project (Time)

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Characteristics Of A Life Cycle

High

Low

Uncertainty of Success

Amount at Stake

Life Cycle of Project (Time)

Low

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Project Management

What is Project Management (PM)?

Project Management is the

application of processes, knowledge,

skills, tools and techniques to meet

project requirements and to produce

deliverables within specified goals &

objectives.

Project Management is the mostefficient way for implementing

unique changes

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2014 CEPM

Project Management

Project Management manages and controls the

project work by:

Planning the work in detail : Why, What, Who,

When, Where, How and How Much

Understanding specific requirements of all

Stakeholders that may be conf licting

Identifying the Scope, Time, Cost andQuality/performance criteria and potential risks

Making one person, generally the project manager

accountable for the project

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Project Management

Project Management manages and controls theproject work by:

PM combines Hard and Soft skills

Hard skills Technology, Tools & Techniques,Processes

Soft skills Leadership, Team Building,Communication, Decision Making, Trust Building,Conflict Management, Coaching, Political andCultural Awareness

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Project Stakeholders

Who is a Stakeholder?

All indiv iduals, groups and organizat ionsdirectly involved in the project or that maybe affected by the project activities and the

project outcome

Understanding and Managing stakeholderneeds and requirements is cr itical for project

success

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A stakeholder could be:

Passively involved in the project

Actively involved in the project work and projectoutcome

Positive about the project and help the Project tosucceed

Negative about the project and be opposed to it

A Stakeholder

can help or hinder the project


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2014 CEPM

Key Stakeholders are:

Project Manager - is overall responsible to ensure projectmeets it 's goals and objectives

Project Sponsor represents top management . Isresponsible to ensure funds available and to provideoverall, high level guidance to pro ject

Team Members perform the work. At core of success

Customer / Client indiv idual /group /organization thatwill use the deliverables. Can have one or many

Performing organization employs the people engagedin project work. Internal project or external project


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Stakeholder Analysis:

Stakeholders are classified according to their interest, influence

and invo lvement in project.

Project manager should follow below steps while doing stakeholder

analysis :

Step 1 : Stakeholder Identification

Identify all potential project stakeholders and relevant information

such as their roles, departments, interest, knowledge levels,

expectations and influence levels .

Key stakeholders are easy to identify. Other stakeholders usually

identified by interviewing identified stakeholders and expanding the

list until all potential stakeholders included.

Stakeholder Analysis

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Step 2 : Analyze Stakeholder Authority , Interest and Influence

Identify potential impact or support each stakeholder could generate

and classify them so as to define an approach strategy .

Multiple classification models available e.g.

Power / interest grid ( Autho rity / Concern) Power / influence grid (Authority / involvement )

Influence / impact grid (Invo lvement / ability to effect changes)

Stakeholder Analysis

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Keep SatisfiedManageClosely

Monitor(Minimum

effort)

KeepInformed

Low High

High

Low

Power

Interest

Power/Interest grid for mapping s takeholders

Manage closely High interest & high power in project High interest, less power keep informed

Monitor Low interest, low power

Low interest, high power keep satisfied

Step 3 : Develop strategies to manage stakeholders expectations

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Need Analysis goes through three phases Need Emergence, Need Recognit ion & Need

Articu lat ion

Needs RecognitionThe Need is recognized by the organization

- its validity and urgency is studied and ratedagainst other needs

Needs EmergenceA Need Emerges in organizat ion from any level

for a new requirement

Need Analysis Cycle

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Need for Change

Needs ArticulationThe Need is evaluated

Need Analysis

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Business Case

A Key document in the project that shows thejusti fication for undertaking the pro ject

i.e. the why of the project

Used to make a decision of whether toinvest in the project or not - justifies theinvestment

Business Case is owned by the Sponsor &Sponsor is responsible for it s development

Is developed from the Need statement

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Is the time expected to be taken by the proposedproject to get a financial return equal to the originalinvestment made

Payback Period is achieved when the cumulative

cash flow becomes equal to the init ial investment

Does not consider the whole life span of the project -

calculation stops once the original investment hasbeen recovered

Payback Period

Investment Appraisal

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Payback Period

Initial Investment (year 0) = 100K

Payback period for Project A is 4 years 2.57 months

Cash Flow up to year 4 = 85K

Shortfall of 15K (100K - 85K)

Cash Flow in year 5 = 70K

Per month cash Flow in year 5

= 70K / 12 = 5,833

15K / 5833 = 2.57 months

Cash Flow = 100,000 in 4 years

2.57 months


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Is s imple to use

Good as an initial fil ter

Standard technique used worldwide

Favours projects with faster returns, better for liquidity

Effective for high risk situations

Payback Period - Advantages


Ignores the Time Value of money

Does not consider project cash flows after PaybackPeriod has been reached

Not good for long term projects

Payback Period - Disadvantages

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Discounted Cash Flow (DCF) method

Relates future cash flows over the projects

life to a common base value

DCF based on fact that the value of moneydepreciates with time

Expected Cash flows are adjusted formoney over time

Discounting Cash Flow gives more realisticpicture of potential projects feasibili ty


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Net Present Value (NPV)

Internal Rate of Return (IRR)

Used by two key Investment appraisaltechniques:

Discounted Cash Flow (DCF) method


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Differ in Time spans, Initial Investments, andCash Flows

Higher the NPV, better the project

NPV helps to compare viability of projects that:

Expected Cash flows adjusted for money over t ime

Reject any project having Negative NPV

Quantifies expected profit in absolute terms


Shows projects net value in today's monetary terms

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Step 1:Calculate Cash Flow for each year (Income -

Expenses)

Step 2:Calculate the PV for each year - discount annual

cash flow by the given Discount Rate

Step 3:Sum up the Present Values calculated for eachyear

Step 4:Subtract project's Initial Investment f rom

cumulative Present Values to obtain the project s NPV



Present Value (PV) = FV / (1 + r)n

FV = Future Value; r = Discount rate; n = No. of years

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Calculating NPV

Year 0 = Initial Investment Discount (Interest) Rate is 10%

Discount Factor @ 10% is given Year 1 = 25 x .91 or 25 / 1.10= 22.7

Year 2 = 25 x .83 or 25 / 1.210(1.10 x 1.10) = 20.75

Year 3 = 20 x .75 or 20 / 1.331(1.10 x 1.10 x 1.10) = 15.00

Year 4 = 15 x .68 or 15 / 1.464(1.10 x 1.10 x 1.10 x 1.10) =10.20

Cumulative PV = 112,100

NPV = 112.100 less 100,000 = 12,100

Year 5 = 70 x .62 or 70 / 1.610(1.10 x 1.10 x 1.10 x 1.10 x 1.10)= 43.40

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Investment Appraisal - NPV

Disadvantages

Accuracy depends on

how well future cash

flows and discount rate

is predicted

Does not consider non-

financial data

Has bias towards shortterm projects

Advantages

NPV is more realistic

considers time value of

money

Considers whole life

span of product / service

from project beginning

to product termination

Higher the Discount rate, Lower the NPV

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IRR is the Discount Rate at whichNPV for project = 0

Shows the Discount Rate at whichproject will break even

IRR expresses profitability as apercentage while NPV expressedprofitability in absolute terms


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Higher the IRR, better the project

IRR arrived at by trial and error

Higher the Discount rate (Interestrate) lower the NPV

Calculated to nullify impact of timevalue of money on proposed project



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How Project Comes into Existence ?

NeedAnalysis

ProjectManagement

Plan

BusinessCase

ProjectCharter

Business Case Approval

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Name of Project Manager

Expected project budget

Assumptions / constraints

High level description of product/serviceto be delivered by the project

Milestone schedule showing summary ofrequired completion dates

Organizations/departments to be involved

Contents of Project Charter

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Why Managements statement of success criteria

What What are we going to accomplish

Who Who will do the work

When Schedules to do work

How PMs vision of doing the work: Resources,Tools & techniques, IT needs, Technical issues,Quality, validation & testing, Risk management,Procurement, Change management etc.

How much project costs and budget

Answers to the fol lowing:

Project Management Plan (PMP)

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Detailed planning done for di fferent aspects ofproject & in tegrated into a single plan known as theProject Management Plan (PMP)

PMP is key document of the project

Is owned by the Project Manager

Is used to control the project

Forms the baseline of project

Developed by Project Manager with project team

Approved by the Sponsor / cl ient

Should be accepted by Sponsor & project team

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The Project Management Plan contains :


1. Scope Management Plan2. Schedule Management Plan3. Cost Management Plan

4. Staffing (HR) Management Plan5. Communication Management Plan6. Procurement Management Plan7. Risk Management Plan8. Quality Management Plan9. Process Improvement Plan

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10. Scope Baseline11. Schedule Baseline12. Cost Baseline13. Quality baseline14. Risk Register15. Milestone List

16. Resource Calendar17. Change Management Plan18. Configuration Management Plan

The Project Management Plan contains:

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Success Criteria

What is Success Criteria?

Criteria by which project success will bejudged by stakeholders

Success cr iteria should be clearly defined

with stakeholders at project beginningIncludes Internal & External parameters

Traditional view - a project is successful ifcompleted on time, within budget andmeet's required quality/performance criteria

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Success Criteria


Different stakeholders have differentsuccess criteria for same project whichmay conflict e.g.

Business objectives for undertaking project

Key deliverables

Key parameters l ike Time , Cost

Customer Satisfaction

Quality requirements

KPIs meeting stakeholder specifications

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Success Criteria


Key Performance Indicators (KPIs)

The measurable values of success criteriaare known as Key Performance Indicators

KPIs help to achieve the success cr iteriaby allowing PM to take corrective actionstimely

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Project Success Factors

Goals and Objectives are clear and agreed wi th

stakeholder

Support from senior management

Clear Scope from c lient / sponsor / users

Timely communication with all stakeholders

Motivated team / Positive atti tude of team members

Subject matter expertise

Realistic Schedule and Cost Estimates

Continuous Risk assessment and management

Factors required for success more within control of

the Client ,PM, Sponsor, team, top management etc.

2014 CEPM

Triple Constraints of Project Management

Conventionally, projects focus on three major

aspects of Scope, Time and Cost

Maintaining Quality is implied in the pro ject

Challenge is to manage all 3 sides

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Scope Management Plan

How total scope will be managed & control led

How scope wi ll be identified, defined, classif ied,documented, managed and integrated into theproject

How WBS wil l be developed

How scope changes made after WBS is f inalizedwill be managed & integrated into project

Scope Management Plan descr ibes the varioussteps needed to manage projects scope and thescope changes

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Scope Planning

Develops the Scope Statement

Scope statement acts as agreement forunderstanding between project team & customer

Scope Statement is a detailed, descript ion of thework required to be done to deliver the projectsproduct or service or result.

First a broad, macro level planning done then themicro level detailed planning done

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Product Scope Description - Characteristics of theProduct, Services or Result

Product acceptance Criteria

Project Objectives - Measurable success criteria e.g.Cost, schedule, quality or Business objectives

Project Deliverables - Product, Services or Results ofthe project including ancillary results (Reports and

Documentation) Project Requirements - Conditions or capabilities that

must be satisfied by the Deliverables as specified in the

contract, specification or Stakeholder analyses

Scope Statement

Project Scope Statement should include:

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Project Constraints - Pre-defined budget , imposedschedule end date

Project assumptions

Project Boundaries (What is not included in the scope) Initial Project Organization

Initial Identified Risk

Schedule Milestone

Preliminary Cost estimate

Approval Requirement

Scope Statement

Project Scope Statement should include:

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Scope Management - WBS

Work Breakdown Structure (WBS)

The WBS is a task oriented hierarchical

decomposition showing all the work to be

done by project team to deliver the

projects product / service and achieve the

project objectives

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After scope statement is made, enti re scope isreviewed and all deliverables are decomposedinto smaller more manageable componentsgiving r ise to what is known as the Work

Breakdown Structure

Each descending level shows greater detail

WBS developed by project team based oncollective experience and by brainstorming withother stakeholders to list out all possible tasks tobe performed

Work Breakdown Structure (WBS)

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Decomposition

Decompose higher level elements to lower level

Decompose to level where work can be scheduledcost estimated, assigned and cont rolled

Verify that the level of decomposition of work is

correct and adequate

Identifying the deliverables and related work

Breaking-up the entire project into smaller,more manageable elements of work

Different deliverables will be decomposed todifferent levels

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Sample WBS

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Work Breakdown Structure

ResidentialConstruction

Build Foundation Build Structure Internal services External Services

Earth Work Base Preparation Blinding

Layout Excavation Leveling

Ant i-te rmi te Polyth ene Work

Shuttering Concreting

Compoun d Wall

Driveway

Water Supply lines

Sewage Lines

Electric Connection

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A SW Project

1.0

Prepare

SRS

Prepare

Design

Documents

Code

Software

SW

Testing

SW

Documentation

Deployment

Gather

Requirement

Analyze

requirements

Document

SRS

Prepare HLD

Prepare LLD

Code

Module1

Code

Module 2

Test module 1

Test Module 2

Integration

Test

User

Acceptan ce

SW

TrainingLLD Module 1

LLD Module 2

SW

Transition

1.1 1.2 1.3 1.4 1.5 1.6

1.1.1

1.1.2

1.1.3

1.2.1

1.2.2

1.3.1

1.3.2

1.4.1

1.4.2

1.4.3

1.6.1

1.6.2

1.6.31.2.2.1

1.2.2.2

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WBS Levels : The Top most Level is the Name of the Project

Level 1 Can be Phase or Deliverable or Sub-Projects

Lowest Level known as Work Package

Decomposition done till level where possible toallocate the work, estimate the time and cost andmanage and control the work

WBS developed using Top-down approach,Bottom-up approach or both

Work not reflected in WBS NOT part of project

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Work Packages

Work package is further broken down into smaller

activities for the pro jects network schedule

Lowest level in the WBS work assigned andcontrolled at this level

A sing le owner responsible to see work iscompleted. Can own many work packages

Should have scheduled start & finish dates

A time phased budget ass igned to it

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Some key advantages of using a WBS

WBS Key tool to PLAN and CONTROL theproject

Helps to assign work and track project progress

Basis for making network schedule and bar charts

Basis for budget, schedule and resources datarequired for determining the earned valuecriteria for the project

Provides common understanding and clarity ofwork and the total project among all the teammembers and other stakeholders

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Some key advantages of using a WBS

Identifies project's key milestones & deliverables

Basis for developing the Organizational, Risk,Communication, Cost Breakdown structures andResponsibility Assignment Matrix

Work package assignment to the rightperson/team members

Risk identification and management canbe done more effectively

Using lowest level of WBS an accurate bottom-up cost estimation can be done

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Time Management

To complete theproject on time aschedule of theproject workmust be fullyplanned in detail

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A project schedule developed of total workrequired to be done to plan and control the

time

The PM uses a formal change controlprocess to control any changes in theschedule

Time Buffers/Reserve/Contingency kept inschedule to meet unanticipated delay

Work packages are further broken down toactivities that are used to estimate, schedule,assign, implement and control project work

Time Management

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Critical Path Method (CPM)

CPM is a project scheduling method that

helps to determine the Early Start, Early

Finish, Late Start, Late Finish for individual

tasks.

The Critical Path determines the earliest

possible completion date of the project

Time Management

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Activ ity Logical Relat ionships

3 types of logical relationsh ips possible:

Discretionary or soft logic basedon experience or best practices

External based on outside factors

e.g. political, govt. rules, other

projects

Mandatory or hard logic work

requires a specific sequence

Activity Relat ionships

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The Four Types of activity Interrelationships are:

Activi ty Relat ionships

B

A

B B

Finish Start (FS) Start Finish (SF)

Start Start (SS) Finish Finish (FF)

A

A

AB

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LEAD:A modification of the logical relationship that

accelerates the successor task.

LAG:A modification in the logical relationship that

causes the successor task to be delayed.

A

B

Days

Activi ty Relat ionships

B

A

Days

In a FS

relationship B

has a Lead of

1 day

There are Two Modifiers:

In a FS

relationship B

has Lag of 1

day

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ARROW DIAGRAMMING METHOD (ADM)

also called ACTIVITY On ARROW (AOA)

Start

C

D

EF

Finish

1

2

4

6

7

B

A

5

3

8

Dummy

Project Networks

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ARROW DIAGRAMMING METHOD (ADM)

Arrows represent the Activity

Nodes (Event) represent the activitycompletion

ADM al lows only Finish-to-Startdependencies

Dummy activities i.e. dotted arrows used toshow logical dependency

Dummy activities consume NO Time orResources

Project Networks

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PRECEDENCE DIAGRAMMING METHOD (PDM)

also called ACTIVITY ON NODE (AON)

Start

A B

D E

C

F

Finish

Project Networks

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PRECEDENCE DIAGRAMMING METHOD (PDM)

also called ACTIVITY ON NODE (AON)

Node represents the Activ ity

Arrow used to show logicaldependency

Allows use of all 4 logicaldependencies

Project Networks

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Early Start

The earliest time a task

can start based on the

network logic and

schedule constraints.

Early Finish

The earliest time a task

can finish based on thenetwork logic and

schedule constraints.

Project Networks

Forward Pass

Late Start

The latest time by which a

task can begin without

violating a schedule

constraint / project end date.

Late Finish

The latest time a task can be

completed without violating a

schedule constraint or the

project end date.

Backward Pass

85

2014 CEPM

FLOAT / TOTAL FLOAT

Length of time a non-critical task can be

delayed or extended without affecting the

project end date. Is measure of time flexibil ity

available in performance of an Activity

For an activity:

FLOAT = LF - EF or LS - ES

Project Networks

ES EF

LS LF

A

6 9

1613

Activi ty A has a

Float of 7 days

86

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2014 CEPM

FREE FLOAT

Length of time a non-critical task can be

delayed or extended without affecting earliest

start date of any subsequent activity and the

project end date.

Project Networks

ES EF

LS LF

A

ES EF

LS LF

B

ES EF

LS LF

C

3 6 6 9

16131310

1311

3 5 Activi ty C has

a Free Float

of 1 day

FREE FLOAT of Activity

= ESJ - EFI

J= Succeeding Activity

I= Preceding Activi ty

87

2014 CEPM

Exercise: Critical Path Method

BB

CC

StartStart FinishFinish

EE

AA

DD

FF

ESES EFEF

LSLS LFLF

AA

33

77 44

55

22 88

88

D

F

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2014 CEPM

Exercise: Critical Path Method(CPM)

ESES EFEF

AA

ESES EFEF

BB

ESES EFEF

ESES

EE

EFEF ESES EFEF

33

77 44

55

22 88

ESES

CC DD

FF

EFEF

Backward Pass

LFLFLSLS

EFEF

LFLFLSLSLFLFLSLS

ESESEFEFESES

LFLFLSLS

Please find out all the ES,EF,LS,LF=?

Forward Pass

89

2014 CEPM


00 33

AA

33 1010

BB

1010 1414

33

EE

55 55 1313

33

77 44

55

22 88

1414

CC DD

FF

1919

Forward Pass

??

90

45


54/200


2014 CEPM


00 33

AA

33 1010

BB

1010 1414

33

EE

55 55 1313

33

77 44

55

22 88

1414

CC DD

FF

1919

Backward Pass

19191414

1414

14141010101033

6666??44

3300

91

2014 CEPM


00 33

AA

33 1010

BB

1010 1414

33

EE

55 55 1313

33

77 44

55

22 88

1414

CC DD

FF

1919

19191414

1414

14141010101033

666644

3300

TF=0

TF=0 TF=0

TF=0

TF=1 TF=1Critical Path is:

92

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2014 CEPM

THE CRITICAL PATH Is:

The Longest path in the network

Has zero float

Can have more than one Critical Path

Critical path can change through

projectNegative float in critical path shows

project is behind schedule

Critical Path

93

2014 CEPM

Show summary level /activity level activi tiesagainst time, drawn to a common time scale

Drawback Bar charts do not show activity

dependencies

Gantt / Bar Charts

Bar / Gantt Charts

94

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2014 CEPM

Linked Bar / Gantt Charts

The dependencies between activities is shown

by arrows and the floats are depicted by single

lines drawn after the bar

Time Management

95

2014 CEPM

Gantt/ Bar charts commonly used as:

Easy to draw, read and understand

Provide a clear picture of the project status

Summary of ten's of activities can be depicted

by one bar

Easily view the planned time schedule versus

the progress at a glance (% Completion)

Excellent tool for management reporting of

project progress

Gantt / Bar Charts

96

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2014 CEPM

Mapping Resources - Histogram

Vertical bars used to display total resource allocation time wise

Helps to plan and allocate resources

97

2014 CEPM

Fast Tracking:

Overlap work normally done sequentiallye.g. order equipment before designfinalized

Critical Path activities are carried out inparallel to accelerate the project end date

Fast tracking requires much moremanagement control and co-ordination

Fast Tracking increases RISK

Fast Tracking increases Communication

Fast Tracking

98

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Crashing:

Extra resources added to Critical Pathactivities to reduce their duration

Activi ties that wil l cost minimum to crashshould be selected first

Use more overtime / faster workedmaterials

Costs likely to increase

Crashing possible only up to a point lawof Diminishing Returns

Crashing

99

2014 CEPM

PERT

Program Evaluation and Review technique(PERT)

Also known as 3 Time estimates

Used for time and cost estimating when it i s

diff icult to arrive at an estimate due to lack ofknowledge or experience

Arrives at an estimate using a weighted averageto reduce the risk

Formula for PERT is:{Optimist ic + (4 x Most l ikely) + Pessimist ic} / 6

Standard deviation SD = (P-O)/6

100

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2014 CEPM

Standard Normal Distr ibut ion

Mean +/- 1 SD = 68.2 %

Mean +/- 2 SD = 95.4 %

Mean +/- 3 SD = 99.7 %

103

2014 CEPM

Cost is the third leg of the Triple

Constraints, and is a key aspect

in planning, managing and

controlling the project

Cost Management

104

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2014 CEPM

Estimating Techniques

Parametric estimating technique

Uses project characteristics in a mathematicalmodel (e.g. Unit Rate) to calculate an estimatefor activity parameters

Used for top down and bottom up estimates

Common for construction, software

Parametric models are used to estimate how

much the product (or project) will cost basedon physical attributes e.g. weight, volume,power, lines of code, price per sq. foot

107

2014 CEPM

Estimating Techniques

Bottom up estimating technique

A detailed estimate bui lt up from theknowledge of the design of the system

Uses the WBS work packages details.Performed in the Planning Phase of the PLC.

Most time consuming method but also mostaccurate estimate

Resources needed fi rst estimated and arethen converted into monetary terms.

Type of estimate prepared is known asDefinitive Estimate.

108

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2014 CEPM

Cost Budgeting

Budgeting Costs

Costs are allocated to schedule activit ies orwork packages

A time phased budget created for costs byaligning costs with the project schedule

A cost baseline is establ ished to measurethe projects performance

111

2014 CEPM

Cost Baseline

Cost Baseline is the time phased budget for theproject.

Is used to measure, monitor and control projectsoverall cost performance

Is the total estimated cost for pro ject

Shown as an S curve

Large projects can have different costbaselines for the project e.g. internal labourcosts, contractor labour costs , materialcosts

112

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Cost Reserves

A monetary provis ion kept for mi tigating

cost and/or schedule risks

Contingency Reserve

Management ReservesBudget kept for unpredictable parts of project -

"unknown unknowns." Use of the management

reserve generally requires a baseline change.

Estimated costs used at PMs discretion to deal

with anticipated, but not certain, events. These

events are "known unknowns" and are part of

the project scope and cost baselines."

Reserves

113

2014 CEPM

Control Account and Chart of Account

Control Account Are selected components of the

WBS that are used for management control. The Scope,

budget, schedule and actual cost are integrated at this

level to measure work performance using Earned Value

methods. Are kept above the Work Package level. Each

Control account can contain more than one WP but each

work package should be included only in one CA.

Chart of Account -Any numbering System used to

Monitor Project Cost by category (e.g. Material,

Equipment, Labor ). It is based organizations Chart of

Accounts.

114

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EVMS measures project performance byintegrating project scope, cost and schedule measuresconcurrently enabling a holistic view of projectperformance and progress

Earned Value represents the value of work accomplishedin terms of financial worth and is used to measure theperformance of the project.

Work is represented in terms of a cost based structure.Costs can be in Money or Man-Hours

An integrated baseline is formed against whichperformance is measured.

EARNED VALUE MANAGEMENT SYSTEM

115

2014 CEPM

EVMS

Key parameters used to represent physical progress

achieved on the project in monetary units are:

Planned Value (PV): formerly known as Budgeted Costof Work Scheduled (BCWS). PV = BAC X % ofPlanned Work

Earned Value (EV): formerly known as Budgeted Costof Work Performed (BCWP). EV = PV x % of ActualWork done

Actual Cost (AC) formerly known as Actual Cost ofWork Performed (ACWP)

Budget At Completion (BAC) = total Budget for workplanned (sum of all PV)

116

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EVMS

Variances

Schedu le Va r iance ( SV) = EV PV

Cos t Var iance (CV) = EV - AC

+ve is good performance0 is on target

-ve is poor performance

117

2014 CEPM

EVMS

Performance Indices

CPI (Cost Performance Index i.e. cost efficiency)= EV / AC

SPI (Schedule Performance Index i.e.

schedule efficiency)= E V / P V

CPI > 1 shows pro ject is under budget

SPI > 1 shows project is ahead of schedule

>1 is good performance=1 is on target


68/200


2014 CEPM

EVMS

EAC = BAC/CPI to-date

or

= AC + (BAC EV)CPI New

or

= AC + ETC New

EAC (Estimate at Completion)

EAC forecasts the revised budget for the total project or anactivity based on the projects current performance or a newassumed performance in fu ture.

VAC (Variance at Completion) = BAC EAC

119

2014 CEPM

EVMS

To forecast new completion time if future performanceexpected to be different:

New Duration

= Current month + [ (Delay + Remaining months) / SPIAss umed]

To forecast new completion time based on currentperformance:

New Duration = Original Duration / SPI to-date

120

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2014 CEPM

Scope, Time, Cost and

Quality

SCOPESCOPE

QUALITYQUALITY

Quality Management

123

2014 CEPM

Quality is the totality of characteristics

of an entity that bear on its

ability to satisfy stated or implied needs

- ISO

Degree to which a set of inherent

characteristics fulfill requirements

- American Society for Quality

Project Quality

What is Quality?

124

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Quality

Planning

Quality

Assurance

Quality

Control

Quality

Management

QUALITY

125

Quality Management has fol lowing three processes :

2014 CEPM

Define Quality

Standard

Are we fol lowing the righ t processes ?

QualityPolicy

QualityRequirement

StatutoryRequirement

What

Actions/Process/

Procedures ?

Do we need to modi fy processes ?

NO YESDefectRepair/Rework

Quality Planning

Quality Assurance

Feedback to QP and QA

End Results

complying with

Standards ?

Quality Control

Quality Management

126

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Quality Planning:

Identif ies & Determines which qualitystandards are applicable to project

Quality Planning

Preparation, checking and recording ofactions necessary to achieve thestandard of the product or service that

is required by the customer and lawIs driven by companys quality policy

127

2014 CEPM

The set of processes

and procedures that demonstrate that

the work is being done according to the

quality plan and will satisfy

the relevant quality standards

Quality Assurance

Quality Assurance is:

128

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Pre planned Audits and Reviews used to

check compliance that all procedures

are being met as planned

Quality Assurance

QA ensures compliance of the process not the product

result

Performed by QA department or line organization

personnel or separate 3rd party organization

129

2014 CEPM

Processes for planning & monitoring

specific project results

to verify if they complywith relevant quality standards, and

identifying ways to eliminate causes

of unsatisfactory results

Quality Control

Quality Control

130

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Broken into three main categories:

1. Prevention costs e.g. training, equipment,maintenance

2. Appraisal costs e.g. inspections, audits, testing

Cost of Quality

3. Failure costs

Internal failure costs before leavingorganization e.g. rework, scrap

External failure costs customer determinestheir requirements not satisfied e.g. liabilities,

warranty work

Cost of conformance

Cost of nonconformance

131

2014 CEPM

Total Quality Management

(TQM)

Total Quality Management TQM)

TQM is an approach used to implementquality improvement programmeinvolving everyone across the organization

Get ideas from employees

Environment of participative leadership

Improve the customer service

Benchmark major activities to improve

Reduce cycle time

132

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2014 CEPM

Quality Gurus

Deming

Juran

Crosby

Key Quality Gurus who have shaped theQuality movement are:

133

2014 CEPM

Quality Gurus W. Edwards Deming

Demings Plan-Do-Check-Act (PDCA) cyclefor continuous improvement

Plan - see how to improve present practices

Do - implement improvement plan on small scale

Check - test to check got desired results or not

Act - implement corrective actions needed in plan

Management commitment essential

85% of meeting quality is managementresponsibility

134

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Juran advocated Three key concepts

1. Fitness for Use :

Availabi li ty : reliability (i.e., frequency of repairs) and

maintainability (i.e. speed or ease of repair).

Safety: The potential hazards of product use

Field use: This refers to the way the product will be used

by the customer

2. Juran Trilogy : Quality Improvement , Quality Planningand Quality Control

3. Cost of Quality

135

Quality Gurus Joseph M Juran

2014 CEPM

Crosby developed his Four Absolutes of Quality:

Quality means conformance to requirements.

Quality comes from prevention, not from inspection.

Quality means that the performance standard is "zero

defects."

Quality is measured by the cost of nonconformance.

Crosby found that the cost of not doing things right the first

time could be appreciable.

136

Quality Gurus Philip B. Crosby

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2014 CEPM

Meet customer needs through evaluation,

defining and managing of their expectations

More Quality Concepts

Customer Satisfaction

Quality & Grade

Grade is the level or functionality of the

product or service

Quality is achieved by meeting the stated

requirements

Project aims to satisfy customers qualityexpectations

137

2014 CEPM

Goal is to improve processes to avoid alldefects

Management to establish a defect free

environment

Quality Concepts

Zero Defects

Prevention vs. Inspection

Cheaper to do things correctly at the first

time.

Rework after removing defects after

inspection more costly

138

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2014 CEPM

Example of Cause and Effect Diagram

141

2014 CEPM

Example of Cause and Effect Diagram

142

Fish Bone Diagram for Hotel Industry

71


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ParetoChart

Histogram ranking no. of defects in order of frequency or

importance

Quality Tools & Techniques

80% problems are due to 20% reasons 80/20 rule

143

2014 CEPM

Pareto Chart Late for office

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

168.0

152.2

134.4

117.6

100.8

84.0

67.2

50.4

33.6

16.8

0.0

Traffic ChildrenTranspor

tation ParentsOverslept Emergency


144

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Left hand vertical axis representing the unit o fcomparison selected e.g. frequency, cost, time

Horizontal axis representing different categoriesof data from max (L) to min. (R)

Right hand axis represents the cumulativepercent from 0% to 100%

Pareto Chart

The chart drawn using 3 axis:

145

2014 CEPM

Used to decide whether the product or service is incontrol i.e. within a specified, acceptable range

Graphically displays results of a process

Does not provide causes for deviations or solutions

Control Chart

0

4

Mean

8

Rule of Seven

UCL

LCL

Out of Control

3

2

1

A Cont ro l Chart Process

USL

LSL

146

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Rule of Seven: When several successive points lineup on one side of the central line, this pattern is called a

RUN

As a rule of thumb, if the RUN has a length of seven

points, there is an abnormality in the process.


147

2014 CEPM


Common causes:

This source of random variation is always present in

any process.

It is that part of the variability inherent in the process

itself. The cause of this variation can be corrected onlyby a management decision to change the system.

Special causes:

This variation can be controlled at the local or

operational level.

Special causes are indicated by a point on the control

chart that is beyond the control limit or by a persistent

trend approaching the control limit.

Control Chart

148

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Histogram

Histogram is a chart with col umns. This represents t he distributi on by mean. If the histo gram isnormal, the graph takes the shape of a bell curve.If it is not normal, it may take different shapes based on the condit ion of the distrib ution.

149

2014 CEPM

Sampling

Inspection done to a sample rather than entire

population determine the level of performance as per a

predetermined standard.

Includes measuring, examining and testing


Benchmarking

Used for process and product improvement Can be done within organization or with other

organizations which have similar processes

Checklists

Structured list of actions. Simple but very useful

Show relation between different components of a

system. Are excellent visual tools

Flow charts

150

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Risk Management

151

2014 CEPM

Risks

A risk is any uncertain event that may

have a positive or a negative effect on

the goals and objectives of the

project if it occurs

Risk can also be described as

the product of the probabilit y of an event

occurring times its impact if it did.

152

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Risk Categories

Internal risks control led to some extent byproject manager e.g.

Project schedule

Manpower

Technology used

Accuracy of est imates

External risks can not be controlled by PM e.g.

Gov. rules

Inflation

Natural calamities

153

2014 CEPM

Risk Categories

Organizational risks

Fund availability

Resource utilization

Schedule expectations

Project priority

Project Management risks

Poor use of PM techniques

Manpower allocation inexperienced

154

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Risk Management Processes

Most of these processes are updated throughout the projectlife cycle

Develop a Risk Management Plan

Prepare a Risk Register

Prioritize the Risks

Probabilistic Treatment of Risks

Develop Risk Responses

Assess Risks Cont inuously

Identify all possible Risks

2014 CEPM

Risk Identif ication Tools

Documentation Reviews

Brainstorming

Interviews

Delphi technique

SWOT analysis

Root cause identification

Informationgathering techniques

Other techniques

Checklists

Assumption analysis

Flowcharts

Cause-and-effect diagram

Influence diagram

156

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Documentation Review

Contract Document

Work Breakdown Structure (WBS) key tool

Product description

Scope statement

Project management plan, Network schedule

Risk management plan

Industry data

Historical information

Review project documents e.g.

157

2014 CEPM

Brainstorming

Use a experienced facilitator

List all ideas all are good

Use WBS and risk categories for identification

Involve team members, other stakeholders

What is said important be non critical

Brainstorming a popular technique

158

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Delphi Technique

Facili tator sends participants a questionnaire

Response collated and ci rculated few t imes

Less bias of other participants

Can be done remotely e.g. through E-mail

Similar to brainstorming but participants

are anonymous

159

2014 CEPM

SWOT Analysis

Looks at the projects:

Strengths Experienced project team

Weaknesses Lack of Processes

Opportunities Will prove credibility if done

successfully

Threats New Technology

Strengths and Weaknesses are internal

Opportunit ies and Threats are external

160

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2014 CEPM

Risk Analysis

QualitativeRisk analysis

QuantitativeRisk analysis

A quali tative riskassessment is carriedout to prioritize risks

A risks Probab il ity (P)of occur rence andImpact (I) is combinedand assessed

Should always be donefor all projects

Risk probabilityassessed us ingspecific values

Numerically analyseseffect of identified risks

on project objectivesMore rigorous

Optional analysis

163

2014 CEPM

Risk Probabil ity Impact Matrix

Subjective assessment done separately of a RisksProbability and its Impact on pro ject objectives

Risk score then assigned to each risk based on bothProbability & Impact (Probability x Impact)

Risks rated and ranked in order of importance

Overall risk ratings prio riti ze the risks for project

164

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2014 CEPM

Probability Impact Matrix

2014 CEPM

Quantitative Risk Analysis Tools

Decision Trees

Expected Monetary Value (EMV)

Monte Carlo simulation

166

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Quantitative Risk Analysis

167

Decision Trees

2014 CEPM

Quantitative Risk Analysis

Expected Monetary Value Analysis (EMV)

To calculate the average outcome in

Monetary Units of scenarios that mayor may not occur .

Looks at probability and impact.

Formula: EMV = Probabil ity x Impact

168

Example : There is 40 % chance of getting a purchase order wor th$ 100,000 . The EMV = 0.4 x $100,000 = $ 40,000

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2014 CEPM

Perform Quantitative Risk Analysis

Typically used to make decisions on risks that are uncertain. Takes multiple scenarios andcalculates the level of impact.

Structured using a decision tree diagram.

Solving the diagram will result in an EMV for each alternative.

SoftwarePackage

25% Probability$90,000 -ve Impac t

No impact

55% Probability$110,000 ve Impac t

No impact

Not Fit

Fit

$197,500=(0.25 x 90000+0.75 x 0+$175,000)

Not Fit

Fit

$210,500=(0.55x110000+0.45x0+$150,000)

$22,500

$60,500

BUY$175,000

MAKE$ 150,000

Example

App licat ion of EMV in Decision Tree Analysis

169

2014 CEPM

Monte Carlo Simulation

Monte Carlo simulation used to show a large numberof possible project outcomes. Gives a completepicture and what-if scenarios

Project performed many times using differentdurations for activities

Provides a statistical distribution of the resultsCorrelation between different activities and activities

very crucial for the projects duration are highlighted

Two important outputs are histograms andCumulative probability charts or S curves

170

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Monte Carlo Simulation

Project Simulation

50

160

275300

120

70

250

50

100

150

200

250

300

350

55 65 75 85 95 105 115

Project Duration

No.

Completed

Frequency

171

2014 CEPM

Probability of Completing on Time

0

0.2

0.4

0.6

0.8

1

1.2

60 70 80 90 100 110 120

Probability

Days to Complete

Project Simulation

Probility to complete

172

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Risk Response Planning

Identify a responsible owner for the risk

Select most appropriate response methodfor the risk cost effective, timely, realistic

Keep track and record in a Risk Register

Develop proactive action plans to deal with risks reduce threats, enhance opportuni ties

173

2014 CEPM

Risk Response Strategies

Risk Response Strategy Effect of Response

Threats or Negativerisks

AvoidRemove root cause.

Eliminate from project

TransferThird party financially

responsible

MitigateReduce Probability or

Impact or Both

Opportunities or

positive risksExploit

Remove uncertainty to use

opportunity

Share

Make third party owner-better equipped

Enhance

Increase positive Impact orProbability or both

Threats &Opportunities

AcceptAccept the risk. Keep a

contingency reserve

Unclear but threatmore likely

ContingentResponse

Execute if required

174

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2014 CEPM

Organization Structures

Three main types of organization structures:

Function or Line most common. Istraditional hierarchical structure.

Matrix weak matrix, balanced matrix andstrong matrix. PMs authority increasesfrom Weak to Strong matrix

Project or Task Force geared for projects

Projects organizational structure wil l impactthe roles and responsibil ities as well as theavailability of project resources

177

2014 CEPM

Functional Organization

Grouped by functionor department

Each employee has

clear boss

Interdepartmentalcommunication viaFunctional head

Staff & Project leadassigned part time toproject

178

Research

Employee 1

Production

Employee

Marketing

Employee

Finance

Employee

CEO

Research &

Development

Production Marketing Accounts &

Finance

Research

Employee 2

Research

Employee 3

Production

Employee

Production

Employee

Marketing

Employee

Marketing

Employee

Finance

Employee

Finance

Employee

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2014 CEPM

Advantages

Best for routine operations, occasional projects

Better technical control

Broad manpower base, flexibility

Communication channels good

Easier budget, cost control

Better functional support / technical base

Functional Structures

179

2014 CEPM

Disadvantages

No direct responsibili ty for project

Cumbersome coordination betweendepartments

Slow customer response / focus

Stronger group wins

Less innovation

Functional Structures

180

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2014 CEPM

Disadvantages

Matrix Structures

Dual reporting system two bosses PM andFunctional manager

Conflicting / changing pr iorities between PMand Functional manager

Multidimensional work & information flow

Structure more diff icult to implement

Needs more top management involvementinitially

183

2014 CEPM

Projectized Organization

Projects main work o forganization andstructure geared for

projects

All staff repor t to PM

PM has completeauthority andindependence

Project work givenmaximum importance

184

Team

Member

Team

Member

Team

Member

CEO

Project

Manager 1

Project

Manager 2

Project

Manager 3

Team

Member

Team

Member

Team

Member

Team

Member

Team

Member

Team

Member

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2014 CEPM

Advantages

PM has complete functional authority overproject

All resources avai lab le to PM as and whenneeded

Good communication channels

Fast reaction time


185

2014 CEPM

Duplication of effort, resources, facili ties

People retained unnecessarily after project as

they may not have another project Technical base less st rong as no line

department looking out to maintain skills

Slower career growth


Disadvantages

Technical skill and knowledgeremains in same group

186

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Roles and Responsibi lities

187

2014 CEPM

Responsibilit y Assignment Matrix

Responsibility Assignment Matrix (RAM)

To show project Roles & Responsib ilities Who will do what work

Level of responsibility

Rows indicate the activities

Columns identify the positions, or names

WBS & OBS( Organization Breakdown Structure)combined to develop the RAM. WBS shown down left

hand side and resources from OBS across the top ofthe matrix.

Weakness - Responsibility Matrix does NOT show when work willbe done, how much time wil l be taken nor how people will interact

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Responsibility Assignment Matrix (RAM)

189

Responsibility Assignment Matrix using a RACI chart

Persons

Activ ity

Define

Ayan

Develop

Test

Design

R = Responsible A = Accountable C = Consult I = Inform

Druv Mira KrishSara

A

A

A

A

R

R

R

R

I

I

I

I I I

I

I

C

C C

C

2014 CEPM

Developing the Project Management Plan

Delivering the project on time, within budget

and meeting required specifications

Managing stakeholder expectations

Integrating, controlling & coordinating the project

Developing and motivating team, resolving conflicts

Monitoring & controlling all aspects of project

PM - Role & Responsibili ties

PM is overall responsible for the project and itsday-to-day management such as:

Communicating with all stakeholders190

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Team Performance

193

2014 CEPM

Group of individuals that share common:

What is a team?

Objective and identity

Values

Norms

Standard of behavior

Commitment

Loyalty

Diversity

Team Performance

194

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Forming

Storming

Team Formation Stages

Team members only moderately effective as they lack

a common aim, are hesitant and unsure of each other

PMs role (Directing) - give direction, build common

grounds, help members to understand each other

better . (high direction , low support)

Differences and hostilities surface between team

members leading to arguments, different opinions,personality conflicts, formation of groups /sub groups

PMs role (Coaching) - motivate and educate team

members, clarify project goals and manage team

conflicts .(high Direction ,high Support)195

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Norming


Team members start developing an identity and

set of norms and values.

Better understanding and communication among

team.

Issues become more important than individuals

PMs role (Supporting) - resolve issues that came up,

define and assigning team roles and responsibilities

(Low Direction but high Support to bolster confidence

and motivation)

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Mourning / Adjourning


Performing

Team becomes high performing team - membersunderstand and appreciate each other.

Team works effectively as a resourceful, focused,cohesive force with a united aim. Problems tackledmore confidently and innovatively

PMs role (Delegating) - maintain performance by co-coordinating and cont rolling the work, appraiseperformance, delegate work, acknowledge good work.

(Low Direction & Low Support )

Team disbanded - some persons happy some sad

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Good Team Attributes

Imaginative

Trust

Respect

Innovative

Clear roles

Supportive

Adaptive

Result oriented

Committed

Team Performance

Hiding facts

Personal agendas

No clear direction

Lot of rework

Blame culture

Self centred

Unresolved

conflicts

Poor team attributes

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For effective team PM should:

Clarify individual role and responsibili ties

Delegate to appropriate person

Expect and resolve conflicts at the earliest

Encourage diversity

Build a team identity

Team Formation

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Managing team conflicts

Five main methods to resolve conflicts:

Withdrawal

Smoothing Compromising

Forcing

Confrontation

Conflict Resolution Techniques

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Compromising


This method uses a give and take attitude

Both parties need to make some trade offs so

neither party can win (Lose-Lose)

Gives some satisfaction to each concerned party

but not ideal solution

PM can use to resolve a conflict in team

temporarily to avoid delays in work, or in making

concessions when negotiating for contracts

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Forcing


Uses authori ty to exert ones viewpoint at the

potential expense of another

PM uses his power and authority to force a solution

Should be used as a last resort as ill feelings are

likely to return as a problem

PM can use forcing to make quick decisions in

crucial or urgent situations or when he wants a

specific solution to be used

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Confrontation / Problem Solving


The issue kept as focus not the individuals.

Affec ted parties try to resolve their disagreements

by directly facing the conflict

Most direct and objective approach that pinpoin ts

the problem

It provides a final solution to the conflict

PM can use confrontation method when team is

mature

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Leadership

AndMotivation systems

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Effective characterist ics of Project Manager

Leader

Committed

Goal oriented

Communicator

Supportive to team Creative

Integrator

Budget conscious

Sees overall picture

Independent thinker

Decision maker Flexible

Leadership

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Leadership styles that a PM can fol low are:

Autocrat ic - Keeps tight contro l over staff and dictates what shouldbe done (l ikea k ing)

Laissez faire - A form of non-management. No one is in charge.

Democratic - The project manager consults team members butdecides on the best course of action.

Bureaucratic - Lots of rules, regulations and procedures.

Directive - Specifies what to do and how to do the work andsupervises the work closely.

Supportive - Encouragement , praise and pos iti ve feedback tomotivate.

Leadership

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Some key Motivation Theories are:

Maslow's Hierarchy of Needs Theory

Herzbergs Two Factor Theory

Motivation

McGregor's Theory X and Y

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Developed by AbrahamMaslow in 1943

There are five basic humanneeds that must be fulfilledto mot ivate people


Behaviour of all personsincluding project team membersgoverned by their personal needs

Needs have to be met fromlowest level to highest level

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Physiological needs - air, water,food, shelter, cloth ing

Safety/security needs Job security,Stabilit y, Freedom from Physical Harm

Social needs Love, Affectionaterelationships, Friends, Social status


Esteem/recognition needs Accomplishment,

Respect,, Attention, Appreciation, Self worth,

Self Actualization Self-fulfillment, Growth,Creativ ity, Learning, Developing potential

211

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Hygiene factors and Motivators

Both are independent and affect persons

differently


In 1960 Frederick Herzberg identif ied twoseparate categories of need and motivation

Hygiene factors necessary for persons toavoid becoming dissatisfied and de-motivatedwith their job

Motivators necessary fo r persons to bemotivated

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Hygiene factors


Motivators

Company policies

Peer, subordinate,superior relationships

Working conditions

Salary

Personal l ife

Status

Security

Achievement

Recognition

Work content

Responsibility

Professional growth

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Theory X - average workers are lazy, lack mot ivationand ambition, will avoid work unless supervised.

Managers who believe in this tend to be authoritarian and

suspicious. They impose tight organizational structures, rigid

rules/policies, and strict supervisory controls because they

believe that subordinates lack a sense of responsibility.

Theory Y Workers are self-motivated, creative,imaginative, commit ted.

Managers provide more freedom and the opportunity to participate

in planning and decision making. They emphasize opportunities for

development and growth.

McGregor s Theory X and Y

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Communication Management

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Communication can be:

Oral

Written

Non Verbal (Body language)

Communication

Effective communication requires:

talking

writin

00 IGTR CIPM Handouts April 2014

Documents

Transcript of 00 IGTR CIPM Handouts April 2014