Project management fundamentals PM_Auc_2015.pptx

Project management fundamentals

1. Project Management 2015

2. Introduce Your Self

3. Why Project Management

4. Module Evaluation Item Grade Group Presentation (25%) 25% Assignment and class quizzes (15%) 15% Class Participation (20 %) 2 % Final Project (40%) 40% Total 100

5. Module Plan

6. Module Plan

7. Project management history

8. In late 19 th century, in the United States, large-scale government projects were the impetus for making important decisions that became the basis for project management methodology such as the transcontinental railroad, which began construction in the 1860s. Suddenly , business leaders found themselves faced with the daunting task of organizing the manual labor of thousands of workers and the processing and assembly of unprecedented quantities of raw material .

9. By the mid Twentieth century, the Manhattan project was initiated and its complexity was only possible because of project management methods. The Manhattan project was the codename given to the Allied effort to develop the first nuclear weapons during World War II. It involved over thirty different project sites in the US and Canada, and thousands of personnel from US, Canada and UK. Born out of a small research program that began in 1939, the Manhattan Project would eventually employ 130,000 people and cost a total of nearly 2 billion USD and result in the creation of multiple production and research sites operated in secret. The project succeeded in developing and detonating three nuclear weapons in 1945 .

10. The 1950s marked the beginning of the modern Project Management era. Two mathematical project-scheduling models were developed: The Program Evaluation and Review Technique or PERT, developed by Booz-Allen & Hamilton as part of the United States Navy’s (in conjunction with the Lockheed Corporation) Polaris missile submarine program. Pert is basically a method for analyzing the tasks involved for completing a given project, especially the time needed to complete each task, and identifying the minimum time needed to complete the total project .

11. PM Methodology Methodology

12. Definitions

13. Project Is It A Project ?

14. Project Management

15. Triple Constraint

16. Projects, Programs and Portfolios

17. Project Management Environment

18. Project Management Environment

19. Projects ….Where they come from?

20. Why we do projects ?

21. Strategic Management

22. Project Life Cycle

23. Project Management Processes Initiating Process Planning Process Executing Process Closing Process

24. Project Management Processes

25. Project Management Processes

26. Project Cycle Time Cost & Staffing Level Initiation Planning Execution Monitoring and controlling Closing

27. Project Cycle Project Time Degree Low Stakeholder influence, risk, and uncertainty Cost of changes

28. Quiz

29. Project Management Environment

30. Role of a Project Manager

31. Key General Management Skills

32. Leadership

33. Leadership

34. Communication Receiver Decoding Reaction Feedback Message Channel Sender Encoding

35. Communication

36. Negotiation

37. Problem Solving

38. PMO

39. PMO

40. Project Management Environment

41. Functional Organization Project Coordination Level

42. Projectized Organization Project coordination level

43. Weak matrix Co ordination Level

44. Balanced matrix Co ordination Level

45. Strong matrix Co ordination Level

46. Organization Influence

47. Project Management Environment

48. Stake Holders

49. Stake Holders

50. Stake Holders Keep Satisfied Manage Closely Monitor Keep Informed Interest Power

51. Selecting Projects Strategically

52. Strategic Management

53. Selecting Projects Strategically

54. Ranking and prioritizing projects

55. Ranking and prioritizing projects

56. Payback Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Income 1000 5000 7000 9000 9000 Expendutuer 5000 4000 3000 1000 1000 1000 Net -5000 -3000 2000 6000 8000 8000 Cunulative Net -5000 -8000 -6000 8000 16000

57. Payback Period

58. Net Present Value

59. DR = Discount Rate T = Time Period(s)

60. Ranking and prioritizing projects

61. Project A Time Period Project A (DR + 1) ^ T NPV (1,000,000.00) - (1,000,000.00) 1 450,000.00 1.08 416,666.67 2 400,000.00 1.17 342,935.53 3 350,000.00 1.26 277,841.28 4 300,000.00 1.36 220,508.96 5 250,000.00 1.47 170,145.80 750,000.00 428,098.23

62. Project A Time Period Project A (DR + 1) ^ T NPV IRR (1,000,000.00) - (1,000,000.00) (1,000,000.00) 1 450,000.00 1.08 416,666.67 1.25 360,000.00 2 400,000.00 1.17 342,935.53 1.56 256,000.00 3 350,000.00 1.26 277,841.28 1.95 179,200.00 4 300,000.00 1.36 220,508.96 2.44 122,880.00 5 250,000.00 1.47 170,145.80 3.05 81,920.00 750,000.00 428,098.23 25% -

63. Case Study Time Period Project A Project B (1,000,000.00) (1,000,000.00) 1 450,000.00 250,000.00 2 400,000.00 300,000.00 3 350,000.00 350,000.00 4 300,000.00 400,000.00 5 250,000.00 450,000.00 In group kindly identify : Which project can be chosen based on financial returns ??

64. Project B Time Period Project B (DR + 1) ^ T NPV IRR (1,000,000.00) - (1,000,000.00) (1,000,000.00) 1 250,000.00 1.08 231,481.48 1.20 208,836.09 2 300,000.00 1.17 257,201.65 1.43 209,340.06 3 350,000.00 1.26 277,841.28 1.72 204,016.22 4 400,000.00 1.36 294,011.94 2.05 194,770.05 5 450,000.00 1.47 306,262.44 2.46 183,037.58 IRR 20% 366,798.79 -

65. Time Period Project A (DR + 1) ^ T NPV IRR Time Period Project B (DR + 1) ^ T NPV IRR (1,000,000.00) - (1,000,000.00) (1,000,000.00) (1,000,000.00) - (1,000,000.00) (1,000,000.00) 1 450,000.00 1.08 416,666.67 1.25 360,000.00 1 250,000.00 1.08 231,481.48 1.20 208,836.09 2 400,000.00 1.17 342,935.53 1.56 256,000.00 2 300,000.00 1.17 257,201.65 1.43 209,340.06 3 350,000.00 1.26 277,841.28 1.95 179,200.00 3 350,000.00 1.26 277,841.28 1.72 204,016.22 4 300,000.00 1.36 220,508.96 2.44 122,880.00 4 400,000.00 1.36 294,011.94 2.05 194,770.05 5 250,000.00 1.47 170,145.80 3.05 81,920.00 5 450,000.00 1.47 306,262.44 2.46 183,037.58 IRR 25% 428,098.23 - IRR 20% 366,798.79 -

66. Compare Year A B -250 -50 1 35 18 2 80 22 3 130 25 4 160 30 5 175 32

67. Year A B - - 250 - 250 - 50 - 50 1 35 32 18 16 2 80 66 22 18 3 130 98 25 19 4 160 109 30 20 5 175 109 32 20 330 164 77 44 28% 37%

68. Project Management Knowledge Areas

69. Project Scope Management

70. Collect Requirements

71. Mind Mapping Six Thinking Hats

72. Define Scope

73. Project Scope Statement

74. Project Statement

75. Create W.B.S.

76. Define Activities

77. Define Activities

78. WBS Sample

79. WBS Sample Touristic Villa Villas Type A Sub Structure Excavation Foundations Backfilling Super Structure Ground Floor Columns Slabs First Floor Columns Slabs Finishes Type B Sub Structure Super Structure Finishes Chalets Services Boundary Walls

80. Time Management

81. Estimate Activity Resources

82. Estimate Activity Resources WBS Activity Qty . Manpower Machinery Material Money 1.1.2.1.1 Columns 20 M3 4 C 2 M3 Shuttering 8 H 10 Kg Nails

83. Estimate Activity Durations

84. Estimation Tools

85. Estimation Tools

86. Estimation Tools

87. Estimation Tools

88. Sequence Activities

89. Dependencies

90. Dependencies

91. Dependencies

92. Leads and Lags

93. Dependencies A B Finish to Start F.S.

94. Dependencies A B Start to Start S.S.

95. Dependencies A B Finish to Finish F.F.

96. PDM / AON

97. Schedule Development

98. Schedule Development

99. CPM

100. Forward Scheduling

101. Backward Scheduling

102. Cost Management

103. Cost Estimate

104. Risk Management Project Risk Management includes the processes of conducting risk management planning, identification , analysis , response planning, and monitoring and control on a project. The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of negative events in the project.

105. Plan Risk Management

106. Identify Risks

107. Risk Identification Tools

108. Risk Identification Tools

109. Design Review Ok Revise Yes No

110. Risk Identification Tools

111. Risk Identification Outputs

112. Perform Qualitative Risk Analysis

113. Perform Qualitative Risk Analysis Tools

114. Perform Qualitative Risk Analysis Tools

115. Perform Qualitative Risk Analysis Tools

116. Perform Quantitative Risk Analysis

117. Perform Quantitative Risk Analysis Tools

118. Quiz

119. Perform Quantitative Risk Analysis Output

120. Plan Risk Responses is the process of developing options and actions to enhance opportunities and to reduce threats to project objectives

121. Strategies for Negative Risks or Threats

122. S trategies for Positive Risks or Opportunities

123. Plan Risk Response Outputs Identified risks Risk owners and assigned responsibilities Outputs from the Perform Qualitative Analysis process Agreed-upon response strategies Specific actions to implement the chosen response strategy Triggers , symptoms, and warning signs of risks’ occurrence Budget and schedule activities required to implement the chosen responses Contingency plans and triggers that call for their execution Residual risks that are expected to remain after planned responses have been taken, as well as those that have been deliberately accepted Secondary risks that arise as a direct outcome of implementing a risk response Contingency reserves that are calculated based on the quantitative risk analysis of the project and the organization’s risk thresholds.

124. Communication Management

125. Stake Holders

126. Stake Holders Keep Satisfied Manage Closely Monitor Keep Informed Interest Power

127. Plan Communications

128. Communication Methods

129. Communication Management Plan

130. Communication Management Plan

131. Manage Stakeholder Expectations

132. Project Monitoring & Control

133. Scope Control

134. Control Scope

135. Control Schedule

136. Performance reporting

137. Performance reporting

138. Performance Assessment Earned Value Planned Value Budgeted Cost of Work Scheduled (BCWS)

139. Performance Assessment Earned Value Earned Value (EV) Budgeted Cost of Work Performed (BCWP)

140. Performance Assessment Earned Value Actual Cost (AC) Actual Cost of Work Performed (ACWP)

141. Performance Assessment Earned Value

142. Performance Assessment Earned Value

143. Performance Assessment Earned Value