Welcome to Preparing a Project Execution Plan...
Transcript of Welcome to Preparing a Project Execution Plan...
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Business Management Consultants
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Welcome to Preparing a Project Execution Plan Workshop
George Merguerian BE, MBA, PMP®
3rd Athens Best Practices Conference -2008
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Business Management ConsultantsSpecialists in Global Project Management™
Brussels Frankfurt Houston Istanbul Milan Ottawa Shanghai Singapore Warsaw Washington DC
OfficialStrateg
ic ProjectManagementAdviso
r To
AIRBUS
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Business Management Consultants
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George Merguerian2001 - Senior Partner BMC
Customers: Coca-Cola, CSM, DSM, FMC, European Commission, InBev, Schlumberger , VT Group, UHDE International, UCB ...Universities: Rotterdam School of Management, IMI Kiev
1995 – Projects Director on global e-commerce projects in healthcare, pharma, retail and air transport sectors in cooperation with the major consultancies.
1990 - Management Centre Europe: Productivity Improvement,QM and IT Practice1988 - Cummins Engine Company – Projects Manager1980 - Schlumberger – Engineer and Manager – Europe, MEA, Asia, NAM
Management of field operations, R&D and product development. 1978 - Foster Wheeler, CC – Design Engineer - Petrochem & Ships – Asia & MEA
Education: BE Mechanical Engineering, M.B.A. IMD, Lausanne.
Professional: Member of the Project Management Institute, Project Management Professional – PMP®
Other: Board member - European Society of Engineers and Industrialists(SEII)
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1. To explore the inter‐dependent nature of Triple Constraints
2. To learn about best practices in preparing a Project Execution Plan
Workshop Goals
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Business Management Consultants
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Every Projecthas a
customer
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Business Management Consultants
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Project Management
A project is a single non‐repetitive enterprise, usually undertaken to achieve planned results within a Time Limit and a Cost Budget.
Because a project is unique, its outcome can never be predicted with absolute confidence. Projects are risk enterprises. (Dennis Lock ‐ Project Management)
Every Projecthas a
customer
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8 People3.2 seconds
Formula 1 Race
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The role of the project manager: keep the Project’s triple Constraints (T, Q, €) in balance &
the stakeholders satisfied
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Concept and Proposal
Development
Implementation
Termination
Verification
Final PhaseIntermediate PhasesInitial Phase
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Initiation
Customer requirements•Problem
•Opportunity
•Business need
Project InitiationCommitment to go aheadProject ManagerassignedProject Charter
Project Planning
Business Case Project Charter Proj. Exec. Plan
Stakeholders input critical
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The Project CharterThe Project TitleThe Project Manager’s nameObjectivesHigh level deliverablesBudget, Schedule – high levelBusiness CaseSignatures of key stakeholders approving the planning process
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Business Management Consultants
A Project Charter ExampleProject Name: E-Learning Live Project Manager: Greg Lowov Project Sponsor President Date: Sep 15th, 2007 Objective: Reduce training days at Training Centres by 10,000 days per year through e- training. Deliverables: 1. Gather requirements 2. Develop Platform Design 3. Develop training plans 4. Develop Training contents 5. Deliver a pilot training Busiiness Case: Due to huge cost of training (300$ per person day, 50 000 training days delivered in 2005 and projection is 180 000 training days by 2010), develop distance learning platform that will save 10 000 days per year from the training centres. Constraints: 1. Suitable real-time technology may not be available in the market 2. Required band width maybe too high for some regions. 3. Different time zones may prevent some regions from participating. Assumptions: 1. The training delivered will be as effective as the face to face training. 2. There will be strong commitment from regional bosses (high initial start-up costs). 3. New competency management system will need to be developed as competency will be difficult to measure when training is
delivered through ETP Live. Key Stakeholders: Charles X Real-Time Solution Sponsor Ken IT Manager John Personnel Manager Stephan Recruiting, Training & Development Manager Pierre President … ……..
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Planning
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Five Basic Project PlanningElements and Behaviours
Requirements
Work Packages
Objectives
Organisation
Budget
Iterate
1
2
3
4
5
Schedule
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Five Basic Project PlanningElements and Behaviours
Requirements
Work Packages
Objectives
Organisation
Budget
Iterate
1
2
3
4
5
Schedule
Agreement
Agreement
Achieve
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Good Practices in Project Objectives Setting
1. Involve all stakeholders – degree of involvement depends on their level of influence
2. Express the requirements in terms of a SMART Objective(s)
3. Circulate objective(s) and obtain agreement
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SMART Objective Example
Increase plant capacity utilization of ZZ Antwerp facility from 50% to 70% of by June 2007 at a cost that does not exceed 500 000 Euros
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Deliverables
1. Specific final outputs of a project.2. Important to agree what will and will not be
delivered to prevent false expectations and sometimes …litigation
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List all Assumptions
• Factors that can impact your Activities – resource allocation, economic shifts, stakeholders support …
• Assumptions with uncertainty need to be risk managed
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Example of unchecked assumptions
A European Software company supplying USA in 2002: “Exchange rate between USD and Euro will fluctuate 5% during the period of this contract”
Mars Orbiter: The British worked in Metrics and the Americans inimperial units – where is the Orbiter????
SEPTEMBER 30, 1999
Likely Cause Of Orbiter
Loss
Found
The peer review
preliminary
findings indicate that one tea
m
used English
units (e.g.,
inches, feet an
d pounds) while
the other used
metric units
for
a key spacecraft operat
ion. Full
Story
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Title: Migrate MYNETObjective: Technically and Functionally migrate the MyNet Intranet to new
version by December 07 at a cost not to exceed €300K. Deliverables/ Functional As-Is & Technical To-Be
New System developmentLegacy conversionTesting and AcceptanceUser material
Not in Scope: Redesign (Look and Feel)Multilingual Interface
Constraints Seamless transitionUsing approved software (SW)Migration transparent to users
Assumptions: New line to backbone readyContent requirements will not change……….
Stakeholders: Senior Managers, Users, Contractors
Project Scope Statement
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Business Management Consultants
Requirements
Work Packages
Objectives
Organisation
Budget
Iterate
1
2
3
4
5
Schedule
ControlControl
Achieve
Organising the Work Packages
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Business Management Consultants
Divide the total project work into groups, tasks and sub‐tasks small enough to permit adequate control without creating administration burden.
Developing a Work Breakdown Structure
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Business Management Consultants
Example of WBS
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Easy to understandCovers all the work that needs to be doneBreakdown into 20‐80 hour work packagesFor most project 3‐4 levels is sufficient to define all activitiesThe highest level of the work package is a deliverable
Developing Work Packages
Level 0
Level 1
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Business Management Consultants
Identify CandidatesEstablish ContactsVisit SitesObtain BidsSelect VenueAward Contract
Venue
Determine ThemeSolicit AbstractsSelect SpeakersPrepare ScheduleNotify Speakers
Speakers
Obtain AbstractsPrepare MockupPrepare Production FilePrint ProgramsDeliver to Venue
Program
Annual Conference
Example of a WBS
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Business Management Consultants
Example: of a Chronological Breakdown(A New Product Launch)
WBS Product Launch
Definition Feasibility AcceptanceProgram
DevelopmentProgram Launch Sales
WBS Level
1
Brochures Margin Stock Profile Support Training
Sales Aids & Brochure
ProductionAdvertising Training
DBT Stocking & Measurement
System
2
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Study reportWrite, review,
approve, publish
Study report
6 Month
Study report
ScheduleDependenciesBudget
RisksEffortDeliverables
0.5 FTE $ 10,000
6 Month
Study reportName
Write, review, approve, publish
Write, review, approve, publish
Page 47
Risk Level
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Business Management Consultants
Requirements
Work Packages
Objectives
Organisation
Budget
Iterate
1
2
3
4
5
Schedule
AccountabilityAccountability
Achieve
The Organisation
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Business Management Consultants
Good Practice in Organisation
Create an activity based organisationFor each package there must be a person assigned
– best to achieve this voluntarily
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Business Management Consultants
Example of an Organisation
PM Product Manager D DistributorMM Marketing Manager MD Mfg DivisionTD Training Department CD Country DirectorCM Communications Mktg
Product Manager
(PM)
Definition (MM)
Feasibility (PM)
Acceptance (CD)
Program Development
(PM)
Program Launch (PM)
Sales (PM)
WBS Level
1
Brochures (CM)
Margin (PM)
Stock Profile (MD)
Support (MM)
Training (TD)
Sales Aids & Brochure
Production (CM)
Advertising (MM)
Training (TD)
DBT Stocking & Measurement
System (MD)
2
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Good Practice in Organisation Define Roles of the Team Members
• Role based assignment identifies team participants, clients, and their roles in the project
• Helps clarify the authority and working relationships of the project team members – known as a RACI Matrix:– Responsible – does the work, responsible for the package– Accountable – approves the work done– Contributes – supports the responsible person– Informed – needs to know about progress on that package
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Business Management Consultants
Example: Clarifying Roles
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Business Management Consultants
Requirements
Work Packages
Objectives
Organisation
Budget
Iterate
1
2
3
4
5
Schedule Effective Communications
Effective Communications
Achieve
The schedule
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Business Management Consultants
Gantt Charts
A
B
C
time
A B C
WBS
A Communication Tool,Its Beauty is in its Simplicity
The past The future
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Business Management Consultants
Allen Bradley(A New Product Launch)
WBS Product Launch
Definition Feasibility AcceptanceProgram
DevelopmentProgram Launch Sales
WBS Level
1
Brochures Margin Stock Profile Support Training
Sales Aids & Brochure
ProductionAdvertising Training
DBT Stocking & Measurement
System
2
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Business Management Consultants
Name Duration
Definition 1w
Feasibility 30d
Brochures 1w
Margin 2w
Stock Profile 4w
Support 2w
Training 2w
Acceptance 1w
Go/No Go Decision Dev 0d
Program Development 35d
Sales Aids & Broch Prod 3w
Advertising 4w
Training 5w
DBT Stock & Meas Sys 7w
Go/No Go Launch 0d
Program Launch 1w
Sales 12w
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Example Gantt as Management Report(A New Product Launch)
SlackNon-criticalCriticalSummary Task
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Business Management Consultants
Requirements
Work Packages
Objectives
Organisation
Budget
Iterate
1
2
3
4
5
Schedule
ControlControl
Achieve
The Budget
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Business Management Consultants
Example of Activity Based Budget Calculation
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1. Agreement on Precise Objectives2. Work Packages 3. Activity Based Organisation4. Schedules that people can understand5. Activity Based Budgets
Summary: 5 Good Practices in Planning
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The potential retailability of the new lighting device (project codename Brighter) will be investigated in trials at industrial retail centres starting October 2007 through December 2007. The device (suited for industrial use like chicken farms) uses broadband photodiodes that work on 2.5v input and 1.8v digital output operating on a single CMOS IC. The Brighter’s simple design, efficient power consumption (compared to other similar devices) and new remote switching mechanism that can be operated through Bluetooth enabled devices will be highlighted to potential buyers from various industries like farming, construction, animal husbandry. We expect to have 500 people appreciate and test the Brighter. Those who test will be asked to fill in a simple multiple‐choice type questionnaire and will receive a present in appreciation of their effort. The output of these questionnaires will help us further improve design elements of Brighter. We expect to run these retailability tests in four major European cities – Frankfurt, London, Milan and Paris. Our headquarters has asked 4 people from regional offices in each of these cities to be assigned for these trials. We expect the total effort in the four cities not to exceed 16 man‐weeks during the trial period. Headquarters will contribute 50% of the total budget needed for this exercise which at this stage we estimate it to be around 400 000 Euros.
Workshop: Create Scope Statement SMART Objectives, Deliverables, Boundaries (use your imagination) Assumptions, Stakeholders,
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Business Management Consultants
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1. Develop an objective that captures Time, Effort (€) and Quality
2. List high-level deliverables3. List Assumptions4. Make a 2-Level WBS
WorkshopStakeholders, Requirements, Objectives & Deliverables
Of the Brighter Project
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Business Management Consultants