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    Project Management

    Samuel BASSETTO, W37-07

    [email protected]

    Thanks to Khaled HADJI HAMOU

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    projects, projects

    Examples? Facility planning

    Personnal insurance management methodimplementation

    Change of work

    Redesign a building

    New product development

    Commercial introduction of a new product Research partnership development for an

    European Project

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    Outline

    Introduction & concepts

    Concurrent to your project:

    General project structure Detailed project structure Focus on Projects planning Focus on Projects Quality Risks management during the project

    Cost analysis The project follow-up

    Bonus Slides

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    Historic Milestones

    Pyramids

    Vauban (measure of construction times)

    1900 : Taylor/Fayol/Ford

    1915 : Gantt

    1950 : PERT (Program Evaluation andReview Technic)

    1989 : Project management methods

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    Normative corporations

    AFITEP Association Francophone de Management de Projet.

    IPMA International Project Management Association

    PMI Project Management Institute

    Project Management Body of Knowledge (PMBOK)

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    Nowadays context

    Why a management based on projects ?

    End date Easy overview

    Due date & delivrables => goal achievement (not

    insured but facilitated)

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    Project : a definition

    1st definition The project is a response at challenging

    constraints (innovation, deadlines, cost) that

    enterprises are facing in their global competition The project structures a precise idea, and require

    human skills and means for its uniqueconcretization, limited in the time

    [Berry 96]

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    Project : some definitions

    PMBOK Definition

    Efforts employed on a defined period for a serviceor product creation

    AFITEP Definition

    Important realization, with an end, time limited,

    with a precise goal, requiring various ressources

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    Project some definitions

    Notions extracted from thesedefinitions The notion of goal

    The notion of time

    The notion of organization

    The notion of ressources

    The notion of structure (?)

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    Project : the ASQIMC definition

    Finally :

    A way of working which

    Structures progressively an object driven by Quantitatives goals it

    Identified clearly requirements and involves

    Multiples skills which are under

    Constraints

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    Typologies of projects

    Characteristics ? Examples ?

    (A) (B)

    (C) (D)

    Entrerprise

    Project

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    The project management

    AFITEP Definition

    The project management includes thePlannification, Organization, Progression

    Follow up and the master of all aspects of projectin a continuous process for goals achievement.

    PMI definition

    Knowledge application, skills, tools and methods

    employed by activities for achieving successfullygoals of each projects.

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    Management

    Project dash board Global overview

    Project organization

    Project status

    Finance indicators

    Main milestones Delivrables

    Risks

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    The project managment roots

    W : Who ?

    W : What

    W : Where ? W : When ?

    H : How ?

    H : How many ? W : WHY ?

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    Project management

    Answer questions: Origins of the project :

    WHY ? MANDATORY for troops motivation

    Factor of success :WHAT ?

    Identify what is inside the project

    WHO? Who leads the project

    WHAT, WHO, WHEN, HOW ? Structure and plannify and guide the project

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    Project Management

    Functionalmanagement

    InstitutionmanagementHuman Factors

    Tools andtechnics

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    Managing the project

    Initial State

    Final State

    Dreamed state

    Ideal Path

    Followed

    path

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    In order to avoid

    Initial state Final state

    Dreamed stated

    Designedpath

    Followedpath

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    Project structure & follow up

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    Outline

    Introduction & concepts

    Concurrent to your project: General project structure Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project

    Cost analysis The project follow-up

    Bonus Slides

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    Project steering comity / final

    eval

    Steering comity5 review per project & session One review per project Strenghts and weakness, blocking point

    Final eval Presentation 20 + 10 questions & product presentation Prof ranking Peer ranking

    Grid /200 pts Nom : Prnom :

    Time (/20) Outline (/20)

    is it clear?

    (/20)

    Personal

    attitude (/20)

    Appropriate ?

    (/20)

    Understanda

    ble ? (/20)

    Final result

    (/20)Team

    Presentation (/80) Support (/60)

    Team

    Total (/200)Project management (/40)

    Answers

    (/20)

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    Outline

    Introduction & concepts

    Concurrent to your project: General project structure Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project

    Cost analysis The project follow-up

    Bonus Slides

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    Project structure

    Several structures:

    Temporal structure : phases Industrial projects

    Information system projects

    Operational structure : activities Businesses involved

    Suppliers

    Organisational structure Project leader (project manager ?), project director,

    sponsor(s), project team

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    Why a temporal structure

    Underline critical activities

    Better focus on qualifications during each phase

    Measure and insure quality of each phase

    Better project overview

    Step by step plannification & follow up

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    Each phase has to

    Have precise inputs

    Have a final end

    Have explicit and acceptable goals

    Identify available ressources

    Must be plannified separately

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    Example of a project phase

    1- Enterprise discussion about researchopportunities (R&D Project)

    2- Draft contract

    3- R phase (more exploratory)

    4- D Phase (more centered on indutrialdevelopment)

    5- Thesis write & presentation

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    Product

    Project

    decomposition

    Gestion de projet, Ed WEKA

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    Project phase and uncertainty

    Thesis Building a wall !

    In one side: well defined activities and phases

    In the other side: not structured activities,

    prospective project.

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    Project phasing

    Several approaches

    Cascading management

    In V In spiral

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    Cascade cycle

    Requirement

    engineering

    Requirement book

    System design

    Building blocs

    Modules

    integration

    System validation

    Payment

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    V Cycle

    System requirement

    engineering

    Requirement book

    System design

    Building blocs

    Module

    intergration

    System validation

    Payment

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    Spiral Cycle

    Risk analyhsisRequirement and

    plannnification

    DevelopmentCustomer evaluation

    Requirment book

    Customer

    satisfaction

    Initial requirements

    Requirements revision

    Initial risk analysis

    Tests

    Initial prototype

    prototype

    Final system

    Risk analysis revision

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    Contracting Owner

    ProjectManagement

    Sub Contractor 0

    Supplier 0-1 Supplier 0-2

    Supplier 1 Supplier2

    Project organization ?

    Supplier 2-1

    Matrise douvrage (fr)

    Matrise duvre (fr)partenaire

    fournisseur

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    Contracting Owner

    High level requirements & needs definitions

    Finance

    Choose the project manager

    Agreement on strategic choices and milestone

    validation

    Strategic choices

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    Project Management

    Requirement Engineering & General design

    Action plan Management

    Work management & coordination

    Cost control & evolutions

    Review with Contracting owner

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    Several actors (repetition S3)

    Contracting ower Customer

    Project Manager Project direction

    Project Manager / leader Project Team

    Suppliers

    Project Board Board Contracting Owner & PM Project Leader

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    Outline

    Introduction & concepts

    Concurrent to your project: General project structure Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project

    Cost analysis The project follow-up

    Bonus Slides

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    Project and organizations

    Functional organization Orgnization by Processus(ISO/ QS) Matricial organization

    Functions X processus Function X Project Processus X Project

    Project Based organization

    The project is a tool for change management: a cubic organization:Function x Processus x Project

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    Project structure

    Why is it necessary to structure ?

    Problems of complex project

    During the project design Identify the purpose of the project

    Identify its development

    Prepare an adapted organization

    During the project operations Establish and follow the project plan (costquality- deadlines)

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    Goals

    Project structure :

    Is a shared referential

    Allows an analytical analysis of the project(prevision & realization)

    Introduces a shared integrated codification@ the enterprise ERP

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    Structure project answers

    the breakdown structures

    What ? product: PBS

    What to do ? action: WBS

    Who is responsible of what ? responsability: OBS

    Who do ? With What ressource: RBS

    What is the cost ? cost: CBS

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    OBS

    Project organization

    S l t

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    Several actors

    Contracting ower Customer

    Project Manager Project direction

    Project Manager / leader Project Team

    Suppliers

    Project Board Board Contracting Owner & PM Project Leader

    O

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    Organization

    Direction Steering Comity

    Project Steering Comity

    Technical Team

    Project Management

    Month/BiMonth.

    Week/Month

    Day/Week

    Project Team

    Cont.

    u

    10u

    100u

    Continuous/Day

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    A member is

    A key person !

    Role

    Skills and abilities

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    The project member: an key

    operating link

    Project Manager

    Project Member

    Qualityconstraints

    To adapt to projectmethods

    CostConstraints

    Interface withothers groupmembers

    Delayconstraints

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    Role of project member

    Participate at projectmeeting

    Project member

    Follows his/herplanning

    Animate projectmethods by usingthem

    Be focused on qualityconcerns

    Share informationwith other projectmembers &collaborate

    Achieve itsbudgetobjective

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    Abilities of project member:

    HR profile

    To know how to effect a constraint task(cost, quality, delay) => need to cope

    with pression and stress Able to evolve in a coordinated

    environment

    Keen to Team Working

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    Project Manager

    An interface actor

    Role

    Ability and skills

    Constraints

    Th j t i

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    The project manager is a

    interface actor

    Project Team

    Project

    Manager

    Services

    Customer

    Functional Board

    Chiefexecutivestaff

    Quality Structure

    Board of direction

    Other Teams

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    Role of the Project Manager

    Find sponsors in theorganization

    To be efficient

    Study andunderstand

    requirements andsatistfy the customer

    Plan andexpress

    achievablegoals

    LET DO by theteam, Improve

    ressourceemployment

    Drive andcontrol the

    progression

    ProjectManager

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    Role of project manager

    Be creative and Charismatic during the1st phase

    Be respectfull of the plan

    Honnest & review rapidly at the end[Midler]

    Skill d biliti f j t

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    Skills and abilities of a project

    manager

    Master methodologies

    Knowledge of technics involved during

    the project Understanding and create an adhesion

    atmosphere in the team

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    Project Manager constraints

    Standards

    Political

    Technologies Environment

    Limitedressources

    ProjectManager Economicaspect

    Th j t Di t (if

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    The project Director (if

    necessary)

    Find internalsponsor

    Is involved duringcrisis situation

    Agree projectstrategicdirections

    Follow several projectsand advice each of

    them

    ProjectDirector Help for

    financialaspects

    Hire the projectmanager / leader.Gives his authority

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    The project board

    Finance

    Release blockedsituations

    Valide strategicorientations

    Strategic view ofprojects

    ProjectBoard

    Involved in strategicdecisions and

    operation reviews

    Valid milestones

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    PBS

    Product BreakDown Structure

    PBS Prod ct BreakDo n

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    A descriptive arborescence of the product

    1. level 1 : system

    2. level 2 : subsystem3. level 3 : Submodule

    4. level 4 : components

    5.

    The PBS is a configuration anddocumentation management support

    PBS- Product BreakDown

    Structure

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    Exemple

    Systme Rafale

    Logistique Avion Armement

    Carlingue Ailes Motorisation Navigation Pilotage Trains

    Rafale air craftSystem

    Logistic Plane Arming

    Cockpit Wings Motoring Navigation Steering Gear

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    WBS

    Work BreakDown Structure

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    Definition

    WBS : The project skeleton Project structure

    Operational activities definition Cost follow up

    Deadlines Definitions & Reviews

    Risk Management Operation management

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    The WBS allows to

    Define precisely each delivrables

    Precise definition of each action

    Deep understanding of each memberintervention

    Agreement and recognition of everyinvolved (and / or) impacted services

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    WBS concepts

    A structured decomposition of the project Create every task and subtask necessary for

    goals achievement

    Each phase is fully decomposed withouttemporal relations (for the moment)

    The work requires to be

    Complete

    Exhaustive Coherent

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    How structuring the work

    Identify phases and major actions

    For each work lot, describe in a fileeach work unit

    Dont forget non technical activities

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    PROJECT :..................................................... N W.O. :..................... EDITION FROM : ..............................

    RESPONSIBLE :.................................... LABEL : .............................................................................. DESCRIPTION :...........................................................................................................................................

    BEGINING DATE:................... FINAL DATE :.................... DURATION :......................

    MILESTONES :...........................................................................................................

    WORK ALLOCATION: :............................................... BUDGET :....................................................

    V

    I Project Manager :..................Local Manager:........................ Task Resp. :........................S

    A Date :....................................... Date :....................................... Date :.....................................S

    MAIN ACTIVITIES : .........................................................................................................................................................................................................................................................................INPUT (material, doc,...) :.......................................................................................................

    OUTPUT (fournitures, doc,...) :....................................................................................................

    EXCLUDED TASK :..................................................................................................................................

    A task file

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    Component of a WBS

    Project

    Sub-project

    Phase Work Batch

    Task

    Milestone

    Delivrable

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    A task

    Has a beginning and an end

    Consume ressources, which cost andare in limited quantity

    Is linked at other tasks by an anteriority

    (or precedence) relation (choose one)

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    Milestone

    Review or decision task Is modelled by :

    Has no duration (even if in reality has one)

    Do not consume ressources (facing the projectressource consumption)

    Is typed : A contractual milestone = Payment

    Technical Milestone = intermediate event Interface Milestone = intermediate event when all

    projects actors meet

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    Finally the WBS is

    A Top down and Bottom up tool

    Must not be frozen => need revisionduring the project.

    Unit building principles

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    Unit building principles

    Aggregation criterias Same project phase Same Speciality

    Same responsability

    Same Market

    Decomposition Criterias Functional

    Product Activity typology

    Business type

    Geography

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    Work description

    Each work lot have to be separated fromothers

    Interfaced with others

    Compatible with enterprise organization Describe completely

    Input ouput

    With an unique responsible With limited size, cost, duration and work

    load.

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    Decomposition main issue

    Find the balance between

    A too wide mesh

    A too small mesh

    Example 1 (in french)

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    Projet info :Logiciel version 2.0

    Managementprojet

    Spcificationproduit

    Conceptiondtaille

    Planification

    Runions

    Gestion

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Ralisation

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Intgrationet tests

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Projet info :Logiciel version 2.0

    Managementprojet

    Spcificationproduit

    Conceptiondtaille

    Planification

    Runions

    Gestion

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Ralisation

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Intgrationet tests

    Logiciel

    Manueldutilisateur

    Documentsde formation

    Example 1 (in french)

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    Exemple 2 (in french)

    Systme Rafale

    Logistique Avion Armement

    Carlingue Ailes Motorisation Navigation Pilotage Trains

    Spcification

    Conception

    Fabrication

    Assemblage

    Systme Rafale

    Logistique Avion Armement

    Carlingue Ailes Motorisation Navigation Pilotage Trains

    Spcification

    Conception

    Fabrication

    Assemblage

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    PBS and WBS linkage

    Project

    Subproject

    System

    subsystem

    Task

    PBS

    WBSPhase

    Work BatchCOHERENCY:

    Tasks must realizesubsystem

    Subsystem must be builtby tasks

    PBS-WBS / OBS

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    Need

    System

    Sub System

    Product

    Task

    Involved agency

    Steering comity

    Office

    Team

    People

    Flux

    PBS-WBS / OBS

    PBS-WBS / OBSa big

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    Flux

    project

    Need

    System

    Sub System

    Product

    Task

    PBS-WBS / OBSa small

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    Flux

    project

    Involved agency

    Steering comity

    Office

    Team

    People

    Outline

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    Outline

    Introduction & concepts

    Concurrent to your project: General project structure

    Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project

    Cost analysis The project follow-up

    Bonus Slides

    Pl i

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    Planning

    A project is constraint by:

    A beginning date

    An End Date (Due Date) Deadlines & delivrables

    The planning is the art of prevision and

    follw-up of projects operational goals:time, cost, quality

    P j t Pl i

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    Project Planning

    A 10 Steps planning method1. Analyse the project2. Identify tasks3. Identify tasks linkage

    4. Plot the task network5. Evaluate each task duration6. Calculate dates7. Calculate Margins PERT8. Adjust time constraints9. Draw GANTT10.Allocate ressources

    M i i

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    Main issue

    The art of project manager is

    Measure, Decide and Act so as reaching goalsdespite of contingency

    New planning planning update

    Planning

    (Idea of the reality)

    Real realization

    L l f l i

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    Level of planning

    Steering comity road map (Milestones)

    Macro planning Batch of WorkWork BreakDown Structure

    Task & ActivitesTime planning

    Task & OperationsWorkload planning

    Due dates

    Chainingconstraints

    1 Analyze the project

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    Project

    FurnitureStudies ToolingFacility layout

    1- Analyze the project

    Acceptance

    MachiningSupplies

    AssemblySupplies

    Machining

    substructure

    Machininginstallation

    Assemblysubstructur

    e

    Assemblyinstallation

    Acceptancetests

    Layout

    Studies

    Gantycrane

    installation

    1 Analyze the project

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    Project

    FurnitureStudies ToolingFacility layout

    1- Analyze the project

    Acceptance

    AMachiningSupplies

    BAssemblySupplies

    D

    Machiningsubstructure

    EMachininginstallation

    FAssemblysubstructur

    e

    GAssemblyinstallation

    I

    Acceptancetests

    C

    LayoutStudies

    HGantycrane

    installation

    Identify tasks

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    N Label

    Deb Start

    A Purchase & receipt of machining tools

    B Purchase & receipt of assembly tool

    C Study the facility layout

    D Execute the facility layout for machining

    E Install machining tools

    F Execute the facility layout for assembly

    G install assembly toolsH Install the gantry crane

    I Perform acceptance tests

    Fin End

    Identify tasks

    Identify tasks

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    Deb Start NIL

    A Purchase & receipt of machining tools Deb

    B Purchase & receipt of assembly tool Deb

    C Study the facility layout Deb

    D Execute the facility layout for machining C

    E Install machining tools A,D

    F Execute the facility layout for assembly C

    G install assembly tools B,FH Install the gantry crane C

    I Perform acceptance tests E,G,H

    Fin End I

    N Label

    Identify tasks

    4 Drawn the network

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    A

    D

    C

    B

    F

    E

    H

    G

    I

    0

    Start End

    4- Drawn the network

    Rank calculus

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    Rank calculus

    Problme : which order to choose ?

    Start En dtask

    1

    task3

    task2

    Task 4

    Task 5

    Rank calculus

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    Rank calculus

    Tches Antcdents Dure Tches Antcdents Dure

    A / 3 G E-F 9

    B A 1 H / 5

    C A 5 I H 8

    D B 6 J H 2

    E B 4 K I 3

    F C-I-D 2 L K-J 7

    Task

    Preceding tasks

    Number ofcross =

    Nomber of

    precedingtasks

    Draw the network

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    Draw the network

    Then (follow eg 91)

    A

    H

    B

    C

    I

    J

    D

    E

    K

    F

    L

    G

    5-Estimate duration

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    Deb Start / 0

    A Purchase & receipt of machining tools Deb 7

    B Purchase & receipt of assembly tool Deb 3

    C Study the facility layout Deb 5

    D Execute the facility layout for machining C 5

    E Install machining tools A,D 5

    F Execute the facility layout for assembly C 3

    G Install assembly tools B,F 3

    H Install the gantry crane C 7

    I Perform acceptance tests E,G,H 1

    Fin End I 0

    N Label

    5-Estimate duration

    To estimate duration

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    To estimate duration

    Personal experience

    Ask experts

    (Employ a significative & homogen time unit)

    6- Calculate dates

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    A

    D

    C

    B

    F

    E

    H

    G

    I

    0

    7 5

    5

    3

    5

    3

    7

    3

    1

    ESDEarliest Start Date EED

    Earliest End Date

    LEDLatest End DateLSD

    Latest Start Date

    DurationStart End

    6- Calculate dates

    7- Margin calculus

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    Free margin Duration From which a task can be delayed or

    relaxed without affecting another task of theproject

    Total margin Duration from which a task can be relaxed or

    delayed without affecting the end of the entireproject.

    Critical path & tasks

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    Critical path & tasks

    Critical path Every path which goes from the begining to

    the end of the project with the longuest

    duration. Its lenght will define the duration minimum of

    the project

    Critical path A task with margin = 0

    Calculate margins

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    A

    D

    C

    B

    F

    E

    H

    G

    I

    0

    7 5

    5

    3

    5

    3

    7

    3

    1

    0

    0

    0

    7

    5

    3

    5 10

    5 8

    10 15

    5 12

    8 11

    15 16

    16 16

    1615

    1510

    158

    1512

    105

    129

    103

    50

    0

    129

    0

    0

    0

    0

    3

    3

    4

    49

    Calculate margins

    PERT Algorithm (in french)

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    PERT Algorithm (in french)

    Algorithme du chemin critique

    Donnes : Digraphe G = (V, E), sans circuits, des activits avec leur dure dik.Rsultat :

    i dbut au plus tt des activits correspondant aux arcs (i, k) partant de i,

    i fin au plus tard des activits correspondant aux arcs (k, i) arrivant i, dure du chemin critique.

    DbutI. Calcul des dates de dbut au plus tt (rcurrence en avanant dans le projet)

    1 := 0

    Pour k := 2 n faire k := max{j + djk | j P(k)}II. Calcul des dates de fin au plus tard (rcurrence en reculant dans le projet)

    n := n

    Pour k := n-1 1 faire k := min{j - dkj | j S(k)}Fin.

    Notations:P(i) = {k V | (k, i) E}: c'est l'ensemble des sommets prdcesseurs de i.S(i) = {k V | (i, k) E}: c'est l'ensemble des sommets successeurs de i.

    8- Adjust durations &t i t

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    constraints

    Analyse constraints Review (negociate) goals Analyse taks (redefine) Review the technical solution ? Externalize ? Increase the ressources number?

    9- Draw Gantt diagram

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    Week 1 Week 2

    M MT TT TW WF F

    Task 1Task 2

    Task 3

    9- Draw Gantt diagram

    Arrowed Gantt

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    Arrowed Gantt

    Graphical & temporal acitivity sucession

    Time (in days)

    1 2 3 4 5 6 7

    T A

    T B

    T C

    Tasks chaining logics

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    Tasks chaining logics

    End Start Relation (ES)

    Precedent

    Next

    End-End Relation (EE)

    precedent

    Next

    Start Start Relation (SS)

    Precedent

    Next

    Tasks chaining logics

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    Tasks chaining logics

    Precedent

    Next+d

    precedent

    Next

    +d

    precendent

    Next+d

    End

    Start Relation (ES)End-End Relation (EE)

    Start Start Relation (SS)

    Un exemple ML-MT

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    Un exemple ML MT

    17 w

    5 w

    5 w

    7 w

    Total margin

    Free Margin

    7 w

    2 w

    5 w

    5 w

    Task 1

    Task 2

    Task 3

    Task 4

    Task 5 (end milestone)

    10- Ressources allocations

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    10- Ressources allocations

    Definition

    Human, material, energetic, informational,geographic or temporal means allocationfor a task operation

    Ressources allocation

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    Ressources allocation

    Elaborate an allocation table

    Estimate ressources required

    Allocate ressources

    Ressources allocation

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    THe charge planning is establishconsidering ressources availbility

    If overload are discovered, the project

    manager must deploy correctiveactions:

    Grading (Slip the end of the project)

    Smoothind (reorganize so as the end ofdate)

    Restructure the project

    Loads

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    Loads = duration * mobilization rate

    Load plan

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    t

    load

    Ressources raised

    Ressources availableRessources in

    idle mode

    p

    Undercapacity

    Max

    Project planning

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    Set of tools and methods for creating

    Indicators

    Operational Balanced Scorecard

    For managing the project

    Indicators

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    Measure a phenomenon

    They have to be :

    Easy to understand and appropriated

    Usefull

    Two type of indicators

    Results

    Process

    Examples ?

    Balance score card

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    Balance score card

    Management tool Underline the past performance

    Give information about futur steps

    Strong and Weak Points Gap analysis toward targets

    Each gap need an action plan

    Designed during the project first phase

    Manage with BSC

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    The quality of a BSC: It is focused = Design for customers

    It is usefull = Fullfill requirements

    It is reliable = regulary reviewed

    It help for the action plan = concrete

    It is complete = Is operational Q, C, D

    It is understandable = visual

    g

    Outline

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    Introduction & concepts

    Concurrent to your project: General project structure

    Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project

    Cost analysis The project follow-up

    Bonus Slides

    Dfinitions

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    Do we master indicators ? Can we measure ?

    Do we have control limits

    How mastering OOC?

    How is the indicator distribution ? (normal, bi modal) Which are Cp - Cpk of are key indicators ? (do we

    master them)

    Audit: Key parameters to an analyse

    Indicators vs relevance

    Deployement of a systematic indicator review and gap analysis

    Follow-up of indicator in team problem solving

    How is the management with indicators

    Outline

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    Introduction & concepts

    Concurrent to your project: General project structure

    Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project

    Cost analysis The project follow-up

    Bonus Slides

    Risks and projects

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    p j

    Some definitions: Potentiality that a project doesnt follow its

    plan.

    Virutal Gaps, unacceptable regarding goal

    NO projects without risks

    Risks and projects

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    p j

    Definition in this lesson:

    A risk is the triptych:

    Unwanted event

    Frequency

    Gravity

    Risks and project

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    p j

    The fundation of risk analysis: thecontext of the analysis

    Context

    Fearsome

    event

    RISK

    Fearsomeevent

    Frequency

    Gravity

    Risk and projects

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    p j

    Risks caracteristics Nature of the risks

    financial, human, Law, Commercial, technical

    Risk origin

    Customer, Supplier, subcontractor, internal Consequences,

    Detectability

    Gravity

    From no consequence to disaster Probabiliy of occurence

    Quantitative ? Qualitative (rare, improbable, most likely,common)

    Risks and projects

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    Risks Management Why implement a risk management?

    Prevent Malfunction

    Prevent firefighting during the project

    In other words

    Contribute to a RELEVANT definition of operational goals (cost, due dates, required perf)

    Having robust goals regarding disturbing events

    Risks and projects

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    Risks management

    Constitute a crisis group or Problem

    Solving Team

    For the management: employ

    KNOWLEDGEABLE & reliable people

    Risks and projects

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    1. Risk identification

    2. Risk ranking

    3. Risks classification

    4. Risk curring : mitigation

    5. Follow-up and control of risks6. Capitalization and risks update

    RisksANALYSISprocess -Dysfunctionalanalysis

    RiskMANAGEMENTProcess

    Management of risks during a project / 6 STEPS

    Risks and projects

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    1. Risk identification Individual or team analysis => listing of

    every potential impacting element:

    Have a look at a previous projects post

    mortem analyses, project databases

    Review a risk checklist

    Look at a risk database in the organization Ask experts involved in previous projects

    Risks and projects

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    1. Risk identification Tools for the explicitation:

    FMEA

    Failure/Fault Tree Analysis

    Causes Tree

    Bow Ties

    Risks and projects

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    2. Risks ranking

    Affect, for each risk, a value:

    Gravity, Occurrence probability, Probability ofnon detection

    FMEA formalism => RPN = Sev * Occ * Det

    Risks and projects

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    3. Risk classification Each risk, identified and estimated, must be

    classified and prioritized regarding other

    risks

    The project management evaluate each risk,

    determine if it is acceptable or notdepending on PRECISE rules, given by theproject steering commity

    Risks and project

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    3. Risk classificationLevels of riskProbability can bve replace (in often case) by a

    qualitative estimation very weak 1 weak 2

    median 3

    high 4

    very high 5

    The criticality is the product: occurance probability* impact

    C = I x P

    Risks and project

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    PROBABILITy

    IMPACT1 2 3 4 5

    1

    2

    3

    4

    5

    II

    I

    IVIII

    III

    Area I : Acceptable risks

    Area II : disturbing risks

    Area IV : una cceptable risks

    Area III : risks to treat

    Mitigation path

    4. Risk mitigation

    Risks and projects

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    4. Risk mitigation The declination=>Decline the project

    The cure=> Suppress the root cause of the risk Are solution appropriate?

    Are goals & constraints negociable?

    The mitigation

    => Diminution of the probability of occurrence &/or impact

    Risks and projects

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    4. Risks Mitigation The countermeasure

    Accept the risk and take technical, communicational,organizational, insurances

    Preventative actions; decrease its occurrence probability Emergency measures: If the event occurs, prevent thepropagation of the impact

    The transfer

    Which is the best organization for the risk? Internal services

    Subcontractor?

    Customer?

    Risks and projects

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    5. Risks control and follow-up Action plan

    Evaluation of final impact of actions

    Tracability of action: ACTION PLAN: Responsible

    When

    The forecast risk rank after treatment

    Risks and projects

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    6. Risks & actions capitalization

    A documentary system

    Trace of event & action plan

    One risk catalog Help the identification of risks for new projects

    Standardize risk management

    Constitue risks check-lists

    Store debriefing analyses

    Outline

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    Introduction & concepts

    Concurrent to your project: General project structure

    Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project Cost analysis The project follow-up

    Bonus Slides

    The Cost control

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    Ressource planning

    Cost forecast

    Budgeting

    Cost control

    The cost control

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    To have a target The Budget at date

    Compare its position The previsional cost

    Obtain bySum of what has been guaranty & done (done or in the pipe)+Sum of what is still required (to be payed)

    GAP analysis

    Gap, drift, trends Taking in account

    Project modifications & inflation

    Technical provisions

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    Technical provision are used tocover technical risks due to :

    Lack of knowledge during costestimation

    Project plan review

    skeleton review

    Planning review

    Often * 2 !

    Initial Budget

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    Task organization must be coherent with budget line

    Each subensembly is decomposed of budget line &technical provision

    The sum of all budget line (for all submodule)correspondto the technical cost of the project. There is also thegross margin General provision for the project

    Overhead charges Profit margin

    Budget Initial

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    Budgetline

    Budgetline

    Budgetline

    Sub module Sub moduleSub module Sub module

    General provisionfor the projectOverheadcharges

    Profit margin

    InitialBUDGET

    Gross Margin

    BCWP Curve

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    The BCWP Curve (CBTP in French) Budgeted Cost of Work Planned BCWP

    Official, reference curve which translateprevisional cumulated cost respecting the

    project planningCost

    Time

    BCWP

    The BDWD curve

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    The BCWD curve (CBTE in french) Budgeted Cost of the Work Done Earned Value

    Translate the evolution of real evolution ofbudgeted cost for executed works at a particulardate

    A curve depending of the planning &the work progress.

    Cost

    Aquired,planned value

    BCWPPlanningdelay

    BDWD

    TimeDelay

    Planning Gap

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    Relative Planning Gap :

    Gap Planning=

    Incur budget

    BCWP BDWD=

    BCWP

    The RCWD

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    The RCWD Curve ( CRTE in French) Real cost of Work Done

    At a particular date, is the cumulated curve ofwhat has been really spend

    rve depending of the planning &the work progress.

    Cost

    Aquired,

    planned value

    BCWP

    Planningdelay

    BDWD

    TimeDelay

    Real cost

    RCWD

    Project Controlvariance

    Cost Gap

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    Performance gap

    = BCWP - RCWD

    If < 0 More expensive than plannedIf > 0 Less expensive than planned

    Cost Variation :

    Cost Gap BCWP RCWS= =

    BCWP BCWP

    Measures analysis (datereview)

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    )

    Cost realized < Planned cost

    Not necessarly a good sign

    Cost realized > Planned cost not necessarly a bad sign

    Need a new measure :

    Work Done (Physical status)

    Measure of work

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    Planned workload

    Used Planned Workload

    Real Workload employed

    Management with delivrable

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    Real date

    Planned dates

    (or workload)

    Delivrable 1

    Rencontre des prvisions

    avec la ralit

    Delivrable 2

    D1 delayed

    Date of CR review

    Management tool

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    Real dates

    Planned charges

    Ideal project; date real = date planned

    Pb discovered late in the planning

    Earlier pb analysis

    Chronical drift of the project

    Status meeting

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    Gap ANALYSIS Difficulties to plan

    Planning = intellectual effort No standard for duration evaluation

    Ressources Ressource availability Several qualifications Learning time Ressources are focused on their favorite activities

    Modifications From the customer Product improvement

    Failures

    Outline

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    Introduction & concepts

    Concurrent to your project: General project structure

    Detailed project structure Focus on projects planning Focus on projects quality Risks management during the project Cost analysis The project follow-up

    Bonus Slides

    Meeting Point

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    Who

    The project team Duration

    1 Hour

    When

    Regularly and repetitive

    What Based on FACTs

    Format

    Status Report

    Tracking Balance Score Card

    Follow-up goals

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    Help the project manager to take theright decision, so that goals could beachieved the closest possible to the

    planning.

    Mean: the information system

    Graphical tools

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    Milestones planning

    Status for each milestons

    Late

    Real Timet1 t2 t3 t4

    2

    2

    1

    1

    In time

    In avance

    t0

    t= Realized - planned

    Graphical tools for the follow-up

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    Milestone follow-up

    Extension for all milestones

    t + (t= time realizedplanned time)

    Real timet0 t1 t2 t3 t4

    t0

    M 2

    t1

    t2

    t3advance

    late

    M 1 Passedmilestone

    Status

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    Time Status

    Workload Status

    Physical Status

    Status Follow-up

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    3

    9 10 11 12 13 1487654321 9 10 11 12 13 1487654321

    t0 t0 + 5

    4

    9

    6

    4 4

    8

    5Case 1

    5Case 2

    Case 3

    Case 4

    Total Lenght = Real lenght + rest lenghtTime status (%) = Real lenght / Overall lenght

    Suivis : example

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    Insert 1000 post along a road

    Forcasting lenght : 100 days

    Mean : 10 men

    Follow-up:

    Meeting 1 : t0+10d

    100 post inserted, Ressource employed : 100 days

    Meeting 2 : t0+20d

    50 post removed & reinsert 50 insert

    10 people more have been affected

    Status measures

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    1- Declared status

    2- Calculated statuds

    4- Milestones status

    5- Percentage statuts

    3- Recognized status

    Costforecast

    10060

    Cost forecast

    Stay to bespend

    10060 60

    10% 40% 60% 100%

    60 %

    60 %

    50 %

    40 %

    100 %0 %0 %

    Done 20 objetcsStill to do 30 objects

    40 %

    E ample of an order

    Follow the status

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    0

    10

    50

    95

    100

    30

    80

    Send consultation

    Supplier choice

    Order slip

    Expediting at reception

    Final customer expedition

    Billing

    Physical status

    Milestones

    Tentativerequirements book

    Final requirementbook

    Benchmark

    Delivery slip

    Receipt

    Example of an order

    Order example

    Status follow-up

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    Physical follow-up - Month 0 to 3

    Month event Physical Hours H. dep. / H Tot R.A.F.status Spend Phy. advan planned

    0 - 0% 0 - 200 200

    1 Envoi des consultations 10% 25 250 200 175

    2 Choix du fournisseur 30% 72 240 200 128

    3 Emission de la commande 50% 122 244 240 118

    Order example

    Operational procedures

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    Regular review (weekly, monthly,quaterly)

    Data loading

    By activity

    By ressources

    Data collection

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    Informal manner Status meeting

    Interviews

    Structured manner

    Elapsed time spread sheet systematically

    filled Directly in a tool

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    Merci pour votre attention

    Thank you for your audience

    Of quality in lessons

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    A little participation

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    Votre impression

    Points positifs Lesson on: www.g-scop.fr\~bassetts

    Pointsdamlioration

    SummaryProject Management

    http://www.g-scop.fr/~bassettshttp://www.g-scop.fr/~bassettshttp://www.g-scop.fr/~bassettshttp://www.g-scop.fr/~bassettshttp://www.g-scop.fr/~bassettshttp://www.g-scop.fr/~bassetts
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    Several project type A management idea: W5H2 Dicton (Failing to, plan is planning to fail)

    PWS / WBS / OBS / CBS / RBS

    Uncertainty management => Risks analysis

    Project management: temporal review of a project, gap analysis,a REGULAR REVISION

    Subject N1: GAZPRAM & EXXOUN

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    In a global shrinking market place of fossil energy, GAZPRAM &

    EXXOUN joined their efforts for new prospection and developmentactions. This new alliance, named G&E produced a first collaborationproject:the implemantation of the SIN pipline : from Singapore toNepal through the state of Myanmar.

    Following with interest your abilities about project management, the

    Human Ressources Direction of G&E has decided to promote you asProject Manager of this ambitious project.

    You have to do the feseability study of this project in putting a strongemphasis on a meticulus risks analysis.

    Your goal is to present to the sterring comity of G&E the validity of thisproject. From your results, the alliance can be renegociated.

    Subject N2: HILTSTARSResorts & Travel Agencies

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    Following its development strategy, in accordance with Dala Lama, Chinese

    government plan to develop touristic aspects of LHASA. LHASA will become thekingdom of meditation and skying. The high altitude will insure a confortable level ofsnow and secure this lucrative activity. In order to supply the lack of hostelsinfrastructure at an international level, Chineese government had launched a worldwidecontract offer of 1B$ for the construction of a 6 buildings, 1500 beds each from 4 to 6stars quality. The HILTSARS Compangy has won the competition. HILTSTARSresorts & Spa are a well reknowned brand of luxe and quality. It have been choosen fortheir knowledge about holidays an luxe facilities.

    Following your remarked ability in team and project management, the HR direction ofHILSTARS will entrust you to this ambitious project.

    Your participation will start by the preliminary study of this project. You will beresponsible of the general planning for the entire facility layout.

    Your goal is to present to HILSTARS steering comity your forcast planning & thesmoothing associated.

    Subject 3: National lotery & the kitch

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    You are a lucky guy/women! You won to the national lotery ! It is not

    the first price, however, you have enough money to buy you a flat inSouth of France. You can realize finally your dream. Your own loft is a820ft^2 to renovate entirely.

    Hopefully, you are a do-it yourself person and you plan to start withthe kitchen. Several layout works need to be planned : gaz, painting,

    walls

    Aware of the good job, you want to do a good job and preserve yournest egg. You decide to plan, buy and install a kitchen from IKEO.They did a super software of cost estimation and kitchen planning.

    Now its your turn to play

    Subject 3: Practice LessonLeanmanufacturing with LEGO

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    You have to imagine a pratical lesson oflean manufacturing.

    8 pers. 1 project leader

    Subject 5: Building a oenologic progr

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    You have to imagine a pratical lesson ofoenology.

    8 pers. 1 project leader

    Subject 6: sensibilisation of about rismanagement

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    You have to imagine a advertising messageto sensibilize to middle and small managersto operational risk management

    8 pers. 1 project leader

    Subject 7: World roots travel

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    You have to imagine a travel around Indiaand Nepal.

    8 pers. 1 project leader