Download PPM Lecture 3

PPMT
CE-408T
Engr. Faisal ur Rehman
CED
N-W.F.P UET P
Presentation Outline
• Project Processes
• Project Management Integration and its
Components
• Project Scope Management
• Project Time Management
• Tools and Techniques for Project Cost
Management
Project Processes


A process is a set of interrelated actions and activities that are
performed to achieve a pre - specified set of products, results,
or services.
Processes Performed by project team falls under two types:
1. The project management processes are grouped by their
performance for an integrated purpose.
– (The purpose is to initiate, plan, execute, monitor and control,
and close a Project)
2. Product-oriented processes specify and create the project's
product. Product-oriented processes are typically defined by the
project life cycle
Project Processes

Project Process group are:

Initiating Process Group

Planning Process Group

Executing Process Group

Monitoring and Controlling Process Group

Closing Process Group
Project Processes
Project Integration Management
• In the project management context, integration includes
characteristics of unification, consolidation, articulation, and
integrative actions that are crucial to project completion,
successfully meeting customer and other
stakeholder requirements.
• Integration, in the context of managing a project, is making
choices about where to concentrate resources and effort on any
given day, anticipating potential issues, dealing with these is
sues before they become critical, and coordinating work for the
overall project good.
Project Integration Management
The integrative project management processes include:
1. Develop Project Charter _ developing the project charter that formally authorizes a
project or a project phase.
2. Develop Preliminary Project Scope Statement _ developing the preliminary project
scope statement that provides a high-level scope narrative.
3. Develop Project Management Plan _ documenting the actions necessary to define,
prepare, integrate, and coordinate all subsidiary plans into a project management plan
4. Direct and Manage Project Execution _ executing the work defined in the project
management plan to achieve the project' s requirements defined in the project scope
statement.
5. Monitor and Control Project Work _ monitoring and controlling the processes used to
initiate, plan, execute, and close a project to meet the performance objectives defined
in the project management plan.
Project Integration Management
1. Integrated Change Control _ reviewing all change requests,
approving changes, and controlling changes to the deliverables
and organizational
process assets.
2. Close Project _ finalizing all activities across all of the Project
Management Process Groups to formally close the project or a
project phase.
1. Develop Project Charter
• The project charter is the document that formally authorizes a
project.
• The project charter provides the project manager with the
authority to apply organizational
resources to project activities.
1. Develop Project Charter
Projects are usually chartered and authorized external to the
project organization by an enterprise, a government agency , a
company, a program organization, or a portfolio organization, as a
result of one or more of the following:
1. A market demand
2. A business need
3. A customer request
4. A technological advance
5. A legal requirement
6. A social need
2. Develop Preliminary Project
Scope Statement
The project scope statement is the definition of the project-what
needs to be accomplished.
The Develop Preliminary Project Scope Statement process
addresses and documents the characteristics and boundaries of
the project and its associated products and services, as well as the
methods of acceptance and scope control.
2. Develop Preliminary Project
Scope Statement
A project scope statement includes:
1.
Project and product objectives
2.
Product acceptance criteria
3.
Project requirements and deliverables
4.
Project constraints
5.
Initial defined risks
6.
Schedule milestones
7.
Initial WBS
8.
Order of magnitude cost estimate
9.
Project configuration management requirements
10. Approval Requirement
3. Develop Project Management
Plan
The Develop Project Management Plan process
includes the actions necessary to define,
integrate, and coordinate all subsidiary plans into
a project management plan.
3. Develop Project Management
Plan
1. The project management processes selected by the project management team
2. The descriptions of the tools and techniques to b e used for accomplishing those processes
3. How work will be execute d to accomplish the project objectives
4. How changes will be monitored and controlled
5. How configuration management will b e performed
6. The need and techniques for communication among stakeholders
4 Direct and Manage Project
Execution
The Direct and Manage Project Execution process requires the project manager
and the project team to perform multiple actions to execute the project
management plan to accomplish the work defined in the project scope
statement.
1. Obtain quotations, bids, offers, or proposals as appropriate
2. Create, control, verify, and validate project deliverables
3. Manage risks and implement risk response activities
4. Manage sellers
5. Adapt approved changes into the project ' s scope, plans, and environment
6. Establish and manage project communication channels, both external an d
internal to the project team
7. Collect project data and report
8. Collect and document lessons learned, and implement
5 Monitor and Control Project Work
1. Comparing actual project performance against the project management plan
2. Assessing performance to determine whether any corrective or preventive
actions are indicated, and then recommending those actions
3. Analyzing, tracking, and monitoring project risks
4. Monitoring implementation of approved changes when and as they occur.
6 Integrated Change Control
Change control is necessary because projects seldom
run exactly according to the project management plan.
1. Identifying that a change needs to occur or has occurred.
2. Influencing the factors that circumvent integrated change control so that only
approved changes are implemented.
3. Reviewing and approving requested changes.
4. Managing the approved changes
5. Reviewing and approving all recommended corrective and preventive actions.
7 Close Project
The Close Project process involves performing the project closure
portion of the project management plan.
In multi-phase projects, the Close Project process closes out the
portion of the project scope and associated activities applicable to
a given phase.
Administrative closure procedure: This procedure details all the
activities, interactions, and related roles and responsibilities of the
project team members and other stakeholders.
Contract closure procedure: Includes all activities and
interactions needed to settle and close any contract agreement
established for the project
Project Scope Management
• Project Scope Management includes the processes required to ensure that
the project includes all the work required, and only the work required, to
complete the project successfully
• Scope Planning _ creating a project scope management plan that documents
how the project scope will be defined, verified, controlled
• Scope Definition _ developing a detailed project scope
•
Create WBS _ subdividing the major project deliverables and project work
into smaller, more manageable components.
•
Scope Verification _ formalizing acceptance of the completed project
deliverables.
•
Scope Control_ controlling changes to the project scope.
Project Scope Management
• Product scope. The features and functions that characterize a product,
service, or result
• Project scope. The work that needs to be accomplished to deliver a product,
service, or result with the specified features and functions.
Project Time Management
•
Project Time Management includes the pro cesses required to accomplish timely
completion of the project.
•
Activity Definition
•
Activity Sequencing
•
Activity Resource Estimating
•
Activity Duration Estimating
•
Schedule Development
•
Schedule Control
Project Cost Management
• Project Cost Management includes the processes involved in
planning, estimating, budgeting, and controlling costs so that the
project can be completed within the approved budget.
• Cost Estimating
• Cost Budgeting _ aggregating the estimated costs of individual
activities or work packages to establish a cost baseline.
• Cost Control _ influencing the factors that create cost variances
and controlling changes to the project budget.
Cost Estimating : Tools and
Techniques
• Analogous Estimating
Analogous cost estimating means using the actual cost of
previous, similar projects.
• Determine Resource Cost Rates
must know the unit cost rates, such as staff cost per hour and
bulk material cost per cubic yard, for each.
• Bottom-up Estimating
This technique involves estimating the cost of individual work
packages or individual schedule activities with the lowest level of
detail.
Cost Estimating : Tools and
Techniques
• Parametric Estimating _a statistical relationship
between
historical data and other variables
• Project Management Software _cost estimating
software applications, computerized
spreadsheets, and simulation and statistical
tools
• Vendor Bid Analysis
• Reserved Analysis (Contingency Plan)
Cost Budgeting : Tools and Techniques
• Cost Budgeting is aggregating the cost of
individual activities to establish a common
baseline
• Cost Aggregation: Calculate WBS cost and sum
all WBS costs
• Reserve Analysis:
• Parametric Estimating:
• Funding Limit Reconciliation:
– Large variations in the periodic expenditure of funds
are usually undesirable for organizational
Cost Control: Tools and Techniques
• Cost Change Control System:
– Documented in the cost management plan
– Defines the procedures by which the cost baseline
can be changed.
Cost Control: Tools and Techniques
Performance Measurement Analysis
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
Assess the magnitude of any variances
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Earned value technique (EVT)
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Planned value (PV). PV is the budgeted cost up to a
given point in time.
Earned value (EV). EV is the budgeted amount for
the work actually
completed

Actual cost (AC). AC is the total cost incurred in
accomplishing work on the schedule activity or WBS
Cost Control: Tools and Techniques
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Estimate to complete (ETC) and estimate at
completion (EAC).
Cost variance (CV). CV equals earned value (EV)
minus actual cost (AC). CV= EV – AC
Schedule variance (SV). SV equals earned value
(EV) minus planned value (PV). SV = EV – PV
Cost performance index (CPI). A CPI value less than
1.0 indicates a cost
overrun of the estimates. CPI = EV/AC

Schedule performance index (SPI). to predict the
completion date SPI = EV/PV
Cost Control: Tools and Techniques
• Forecasting: Forecasting includes making
estimates or predictions of conditions in the
project. Helps to estimate ETC and EAC
• Project Performance Reviews
– Performance reviews compare cost performance
over time, schedule activities or work packages
overrunning and underrunning budget
– Variance analysis.
– Trend analysis.
– Earned value technique