University of Palestine - Gaza Faculty of business& IT – Project Management Chapter 3 Successful...

University of Palestine - Gaza Faculty of business& IT Project Management Chapter 3 Successful Initialization and Project Planning

Eng.Mosab I. Tabash2 A project life cycle is a collection of project phases Project phases vary by project or industry, but some general phases include concept development implementation support

Eng.Mosab I. Tabash3 Project Initiation

Eng.Mosab I. Tabash Problems, needs, and opportunities continually arise in every organization. Problems: low operational efficiency, Needs: additional office space, Opportunities: penetrating a new product These problems, needs, and opportunities give rise to the identification of solutions. 4 Project Initiation

Eng.Mosab I. Tabash Initiation is the process of formally authorizing a project: 5 Market demand Business need Customer request Technologic al advance training company authorizes a project to create a new course to increase its revenues a car company authorizes a project to build more fuelefficient cars in response to gasoline shortages an electric utility authorizes a project to build a new substation to serve a new industrial park Electronics firm authorizes a new project to develop a video game player after advances in computer memory Project Initiation

Eng.Mosab I. Tabash6 A legal requirement (e.g., a paint manufacturer authorizes a project to establish guidelines for the handling of toxic materials). A social need (e.g., a nongovernmental organization in a developing country authorizes a project to provide potable water systems, latrines, and sanitation education to low-income communities suffering from high rates of cholera). Project Initiation

Eng.Mosab I. Tabash Project Manager Projects are generally established to carry out change and theres always someone responsible for the successful completion of each project. As the project manager, you are the primary change agent, and your guide for carrying out the change 7

Eng.Mosab I. Tabash 8 Suggested Skills for a Project Manager Communication skills: listening, persuading Organizational skills: planning, goal-setting, analyzing Team Building skills: empathy, motivation, esprit de corps Leadership skills: sets example, energetic, vision (big picture), delegates, positive Coping skills: flexibility, creativity, patience, persistence Technological skills: experience, project knowledge

Eng.Mosab I. TabashCourse Technology 2001 9 Most Significant Characteristics of Effective and Ineffective Project Managers Leadership by example Visionary Technically competent Decisive Good communicator Good motivator Stands up to upper management when necessary Supports team members Encourages new ideas Sets bad example Not self-assured Lacks technical expertise Poor communicator Poor motivator Effective Project Managers Ineffective Project Managers

Eng.Mosab I. Tabash Recognize the Importance of Project Stakeholders Recall that project stakeholders are the people involved in or affected by project activities Project managers must take time to identify, understand, and manage relationships with all project stakeholders Using the four frames of organizations can help meet stakeholder needs and expectations Senior executives are very important stakeholders

Eng.Mosab I. TabashCourse Technology 2001 11 Successful Initiation Top Management Commitment Several studies cite top management commitment as one of the key factors associated with project success Top management can help project managers secure adequate resources, get approval for unique project needs in a timely manner, receive cooperation from people throughout the organization, and learn how to be better leaders

Eng.Mosab I. Tabash 12 Need for Organizational Standards Standards and guidelines help project managers be more effective Senior management can encourage the use of standard forms and software for project management the development and use of guidelines for writing project plans or providing status information the creation of a project management office or center of excellence

Eng.Mosab I. Tabash Project Scope Project Scope: A specific definition of what the project does and does not entail. Critical to managing expectations of customers and workers alike. 13

Eng.Mosab I. Tabash14 Project Scope Management 1995 CHAOS study cited user involvement, a clear project mission, a clear statement of requirements, and proper planning as being important for project success The program manager of Keller Graduate School of Management cites proper project definition and scope as the main reasons projects fail

Eng.Mosab I. Tabash Project Scope Management Scope refers to all the work involved in creating the products of the project and the processes used to create them Project scope management includes the processes involved in defining and controlling what is or is not included in the project The project team and stakeholders must have the same understanding of what products will be produces as a result of a project and what processes will be used in producing them

Eng.Mosab I. Tabash Project Scope Management Processes Initiation: beginning a project or continuing to the next phase Scope planning: developing documents to provide the basis for future project decisions Scope definition: subdividing the major project deliverables into smaller, more manageable components Scope verification: formalizing acceptance of the project scope Scope change control: controlling changes to project scope

Eng.Mosab I. Tabash Scope Statement The scope statement should describe the major activities of the project in such a way that it will be absolutely clear if extra work is added later on. It should include a project justification a brief description of the projects products a summary of all project deliverables a statement of what determines project success

Eng.Mosab I. Tabash Scope Statement A scope statement is a document used to develop and confirm a common understanding of the project scope. The scope statement puts some boundaries on the project. Scope statement is a main component of the Statement of Work (SOW) i.e. Project Charter

Eng.Mosab I. Tabash Scope Creep Scope creep is one of the most common project afflictions. It means adding work, little by little, until all original cost and schedule estimates are completely unachievable. 19

Eng.Mosab I. Tabash Scope Planning and the Work Breakdown Structure After completing scope planning, the next step is to further define the work by breaking it into manageable pieces Good scope definition helps improve the accuracy of time, cost, and resource estimates defines a baseline for performance measurement and project control aids in communicating clear work responsibilities

Eng.Mosab I. Tabash Work Breakdown Structure WBS: a work breakdown structure (WBS) is a detailed, hierarchical (from general to specific) tree structure of deliverables and tasks that need to be performed to complete a project. The purpose of a WBS is to identify the actual tasks to be done in a project. WBS serves as the basis for much of project planning. Work breakdown structure is the most common project management tool, it was created by the US military in the 1960s. 21

Eng.Mosab I. TabashCopyright Course Technology 2001 22 The Work Breakdown Structure A work breakdown structure (WBS) is an outcome-oriented analysis of the work involved in a project that defines the total scope of the project It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes Work breakdown structures can be set up in either graphic or outline form

Eng.Mosab I. Tabash Work Breakdown Structure Steps to develop the WBS: 1.Identify the final product(s) of the project 2.Define the products major deliverables, which are often predecessor deliverables necessary for the project (Summary Tasks) 3.Decompose major deliverables to a level of detail appropriate for management and integrated control (Work Package) 23

Eng.Mosab I. Tabash Principles for Creating WBSs 1. The work content of a WBS item is the sum of the WBS items below it. 2. A WBS item is the responsibility of only one individual, even though many people may be working on it. 3. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical. 4. Project team members should be involved in developing the WBS to ensure consistency and buy-in. 5. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item. 6. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement. *Cleland, David I. Project Management: Strategic Design and Implementation, 1994

Eng.Mosab I. Tabash Exercise The IUG decided to landscape an area inside the campus. You were asked to prepare a WBS to assist the administration in estimating the cost, activities, schedule and formulating the team to do this project. 25

Eng.Mosab I. Tabash WBS Chart Form 26

Eng.Mosab I. Tabash Outline Form 27

Eng.Mosab I. Tabash Sample Intranet WBS Organized by Product

Eng.Mosab I. Tabash Intranet WBS Organized by Phase

Eng.Mosab I. Tabash Intranet WBS in Outline Form 1.0 Concept 1.1 Evaluate current systems 1.2 Define Requirements 1.2.1 Define user requirements 1.2.2 Define content requirements 1.2.3 Define system requirements 1.2.4 Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team 2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support

Eng.Mosab I. Tabash Financial Analysis of Projects Financial considerations are often an important consideration in selecting projects Three primary methods for determining the projected financial value of projects: Net present value (NPV) analysis Return on investment (ROI) Payback analysis

Eng.Mosab I. Tabash Net Present Value Analysis Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time Projects with a positive NPV should be considered if financial value is a key criterion The higher the NPV, the better

Eng.Mosab I. Tabash Net Present Value Example

Eng.Mosab I. Tabash Return on Investment Return on investment (ROI) is income divided by investment ROI = (total discounted benefits - total discounted costs) / discounted costs The higher the ROI, the better Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects

Eng.Mosab I. Tabash Payback Analysis Another important financial consideration is payback analysis The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project Payback occurs when the cumulative discounted benefits and costs are greater than zero Many organizations want projects to have a fairly short payback period

Eng.Mosab I. Tabash Weighted Scoring Model A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria First identify criteria important to the project selection process Then assign weights (percentages) to each criterion so they add up to 100% Then assign scores to each criterion for each project Multiply the scores by the weights and get the total weighted scores The higher the weighted score, the better

Eng.Mosab I. Tabash Weighted Scoring Model for Project Selection

Eng.Mosab I. TabashCopyright Course Technology 2001 38 Scope Verification and Scope Change Control It is very difficult to create a good scope statement and WBS for a project It is even more difficult to verify project scope and minimize scope changes Many projects suffer from scope creep and poor scope verification FoxMeyer Drug filed for bankruptcy after scope creep on a robotic warehouse Engineers at Grumman called a system Naziware and refused to use it

Eng.Mosab I. Tabash Project Change Management Project faces changes. An external event (e.g., a change in a government regulation). An error or omission in defining the specifications of the product (e.g., failure to include a required feature in the design of a telecommunications system). An error or omission in defining the scope of the project (e.g., WBS). A value-adding change (e.g., an environmental remediation project is able to reduce costs by taking advantage of technology) 39

Eng.Mosab I. Tabash Project change management involves identifying, evaluating, and managing changes throughout the project life cycle Three main objectives of change control: Identify the factors that create changes to ensure they are beneficial and will not have further changes Determine that a change has occurred Manage actual changes when and as they occur Project Change Management

Eng.Mosab I. Tabash The change management process should fit the size and complexity of the project Project Manager must pay special attention to the number and diversity of the stakeholders. Change must be thoroughly integrated with the schedule, cost, quality and all other aspects of the project management processes 41 Project Change Management

Eng.Mosab I. Tabash Change Management Steps: 1. Review Project Plans and all the other components such as the (WBS) - baseline. 2. Review Project performance reports to know which interim deliverables have been completed and which have not. Project reports will alert the project team to issues that may cause problems in the future. 3. Issue Change request: 42 Project Change Management

Eng.Mosab I. Tabash Change requests may occur in many forms oral or written, direct or indirect, externally or internally initiated, and legally mandated or optional. Changes may require expanding the scope or may allow shrinking it. 43 Project Change Management

Eng.Mosab I. TabashCourse Technology 2001 44 Project Change Management

Eng.Mosab I. Tabash45 Project Change Management Change Request Change name: Date submitted: Change request number: Requested by: Submitted by: Detailed Description of Change: Impact Analysis: Schedule Cost Related affects to other projects or parts of this project Decision and Rationale Approval: _________________________________________ Approved by: Approval date:

Eng.Mosab I. Tabash Change Log 46 WBS Plan Updates

Eng.Mosab I. TabashCourse Technology 2001 47 The project team should strive to do exactly what was planned on time and within budget Stakeholders may ask for change and this will affect time and cost Project management is a process of constant communication and negotiation Solution: Changes are often beneficial, and the project manager should plan for them Successful Project Manager-Negotiator and Communicator

Eng.Mosab I. TabashCourse Technology 2001 48 Change Control System A formal, documented process that describes when and how official project documents and work may be changed Describes who is authorized to make changes and how to make them Often includes a change control board, and a process for communicating changes

Eng.Mosab I. Tabash49

Eng.Mosab I. Tabash Successful Change Management View project management as a process of constant communications and negotiations Plan for change Establish a formal change control system, including a Change Control Board Define procedures for making timely decisions on smaller changes Use written and oral performance reports to help identify and manage change Communicate changes

Eng.Mosab I. Tabash Define scope of project Identify stakeholders, decision-makers, and escalation procedures Develop detailed task list (work breakdown structures) Estimate time requirements Develop initial project management flow chart Identify required resources and budget Evaluate project requirements Identify and evaluate risks Prepare contingency plan Identify interdependencies Identify and track critical milestones Participate in project phase review Secure needed resources Manage the change control process Report project status Fifteen Project Management Job Functions*

University of Palestine - Gaza Faculty of business& IT – Project Management Chapter 3 Successful...

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