Project

Management 101
Your Cookbook for
Victory
What we will cover:
Definition of a Project
Why have project controls
PM as a profession
Project reporting
Milestone management
Crystal ball - the foreseeable future
The Ultimate CYA
Damage control.
What we will cover in
Project Management 102:
Cookbook approach to a project
Resources identification
Timeline constraints
Risk management
Management of managers and vendors
MS Project vs. paper tracking
Contract negotiations

What is a project?
A project is a temporary endeavor
undertaken to create a unique product or
service. Temporary means that every
project has a definite beginning and a
definite ending. Unique means that the
product or service is different in some
distinguishing way from all other products
or services. PMBOK 2000 edition
Why Have Project Controls?
92% of all projects fail (Standish Research
Group)

What Professional Project
Managers do and why
Project Management Institute was established
to promote the professional management of
projects using proven methods and procedures.
PMI maintains a library of information and
publishes the Guide to the Project Management
Body of Knowledge (PMBOK), the standard
text on project management.
Great Britain PM Standard
Prince 2. Government required standard
http://www.ogc.gov.uk/prince2/index.html
What is involved in managing a
successful project?
Project Triple Constraints
Project Triple Constraints
Costs
Project Triple Constraints
Costs Time
Project Triple Constraints
Costs Time
Statement of Work (SCOPE)
Project Triple Constraints
Costs Time
Statement of Work (SCOPE)
Quality
Project Triple Constraints
Costs Time
Statement of Work (SCOPE)
Quality
Customer Satisfaction
How to practically
approach a project

Projects can be
approached like baking
a cake.

Chocolate CakeWhat it takes:

Clear objectives
Ingredients
Equipment
Manpower
A Plan
A manager of managers (PM)

Chocolate Cake
Making a chocolate cake requires all the
elements of a project:
Processes (What to do)
Knowledge (How to do)
Process groups of a project:
(The What to do of a project)
Initiation
Planning
Execution
Controlling
Closing
Called the Life Cycle of a project
Knowledge areas:
(The How to do of a project)
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communications Management
Project Risk Management
Project Procurement Management
Project Integration Management

Work Breakdown Structure
(Planning phase)
Def. A deliverable-oriented hierarchical
decomposition of the work to be executed
by the project team to accomplish the
project objectives. It organizes and defines
the total scope of the project. Each
descending level represents an increasingly
detached definition of the project work. The
decomposition consists of work packages.
(PMBOK 2000)
Chocolate Cake
Project
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls,
spoons, pans,
measuring
devices,
decorating, etc
Schedule oven(s)
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls,
spoons, pans,
measuring
devices,
decorating, etc
Schedule oven(s)
Serve and clean
up
Staff to serve
Assign serving
plates
Cleanup team
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls,
spoons, pans,
measuring
devices,
decorating, etc
Schedule oven(s)
Serve and clean
up
Staff to serve
Assign serving
plates
Cleanup team
Purchase
ingredients
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls,
spoons, pans,
measuring
devices,
decorating, etc
Schedule oven(s)
Serve and clean
up
Staff to serve
Assign serving
plates
Cleanup team
Risk analysis
Plan B?
Purchase
ingredients
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls,
spoons, pans,
measuring
devices,
decorating, etc
Schedule oven(s)
Serve and clean
up
Staff to serve
Assign serving
plates
Cleanup team
Risk analysis
Plan B?
Purchase
ingredients
Work
Breakdown
Structure
Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls,
spoons, pans,
measuring
devices,
decorating, etc
Schedule oven(s)
Serve and clean
up
Staff to serve
Assign serving
plates
Cleanup team
Risk analysis
Plan B?
Purchase
ingredients
Work
Packages
Work
Breakdown
Structure
Work breakdown structure.
Def:Deliverable oriented grouping of project
components that organizes and defines the total
scope of the project.
Locate managers and ask them to estimate their
labor requirements, constraints and risks.
Give them the project scope with budget, schedule
and milestone requirements.
Dont you make these decisions; let them.

Chocolate Cake
Project
Establish
requirements
Scope definition
How many to
serve?
Date and time?
Place to be
served?
Who will pay for
it?
Who has
authority?
Project Sponsor
Available labor
pool
Who will buy
materials
Who will cook?
Who will serve?
Who will clean
up?
Procure
equipment
Arrange for all
mixing bowls
Schedule oven(s)
Serve and clean
up
Staff to serve
Assign serving
plates
Cleanup team
Risk analysis
Plan B?
Work Breakdown
Structure
Purchase
ingredents
Work Packages

Event sequencing
Placing work packages in
logical sequential order.
Create a critical path

Project Tracking Software
Microsoft Project
Uses Project Management Institutes
PMBOK as its standard
Excellent tool IF used properly

Gantt Chart with resources
I D Task Name
1
Chocolate Cake Project
2 Est ablish scope of work and att ain f unding
3 Locate various managers
4 Est ablish requirements
5 Order ingredient s
6 Receive and st ore materials
7 Mix, bake and decorat e cake
8 Serve and cleanup
9 Project closeout
10 Risk analysis
11 Train st af f
customer,Management, project manager
project manager
manager, chief
Purchasing Mgr
Wearhousi ng
chi ef, cook 1,cook 2,cook 3,cook 4,cook
200 servers, 20 coordi nati ors, ma tre d
project manager
Purchasing Mgr
20 coordi nati ors
T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F
Mar 5, ' 06 Mar 12, ' 06 Mar 19, ' 06 Mar 26, ' 06 Apr 2, '06
I D Task Name
1
Chocolate Cake Project
2 Est ablish scope of work and att ain f unding
3 Milestone
4 Locate various managers
5 Est ablish requirements
6 Order ingredient s
7 Receive and st ore materials
8 milest one
9 Mix, bake and decorat e cake
10 Serve and cleanup
11 Project closeout
12 Risk analysis
13 Train st af f
customer,Management, project manager
3/8
project manager
manager, chief
Purchasing Mgr
Warehousi ng
3/22
chi ef, cook 1,cook 2,cook 3,cook 4,cook 5,cook 7,cook 8
200 servers, 20 coordi nati ors, ma tre d'
project manager
Purchasing Mgr
20 coordi nati ors
M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F
5, '06 Mar 12, ' 06 Mar 19, ' 06 Mar 26, ' 06 Apr 2, '06 Apr 9, '06
Pert Chart
Est ablishscope of work
and att ain f unding
2 5 days
Fri 3/ 3/06 Thu 3/ 9/06
Locate various managers
3 5 days
Fri 3/ 10/06 Wed 3/15/ 06
Est ablishrequirement s
4 3 days
Thu 3/ 16/06 Mon 3/20/06
Order ingredients
5 1 day
Tue 3/ 21/06 Tue 3/ 21/06
Project closeout
9 1 day
Mon 3/27/06 Tue 3/ 28/06
Train staf f
11 1 day
Sun 3/ 26/06 Sun 3/ 26/06
Riskanalysis
10 2 days
Thu 3/ 16/06 Fri 3/ 17/06
Chocolat eCakeProject
1 0 days
Thu 2/ 9/06 Thu 2/ 9/06
Mix, bake and decorat e
cake
7 2 days
Fri 3/ 24/06 Sun 3/ 26/06
Receiveand store
mat erials
6 2 days
Wed 3/22/ 06 Thu 3/ 23/06
Serve and cleanup
8 0.33 days
Mon 3/27/06 Mon 3/27/06
Resources
I D Resource Name I nitials Group Max. Units St d. Rate Ovt . Rat e Cost /Use Accrue At Base Calendar Code
1 Management M MGT 100% $0.00/ hr $0.00/ hr $0.00 Prorat ed St andard
2 customer JM MGT 100% $0.00/ hr $0.00/ hr $0.00 Prorat ed St andard
3 project manager JBV MGT 100% $300.00/ hr $0.00/ hr $0.00 Prorat ed St andard
4
5 Kit chen st af f K Kit chen 100% $0.00/ hr $0.00/ hr $0.00 Prorat ed St andard
6 manager m Kit chen 100% $50.00/ hr $0.00/ hr $0.00 Prorat ed St andard
7 chief CF Kit chen 100% $40.00/ hr $0.00/ hr $0.00 Prorat ed St andard
8 cook 1 c1 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
9 cook 2 c2 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
10 cook 3 c3 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
11 cook 4 c4 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
12 cook 5 c5 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
13 cook 6 c6 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
14 cook 7 c7 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
15 cook 8 c8 Kit chen 100% $20.00/ hr $0.00/ hr $0.00 Prorat ed St andard
16
17 Servers S servers 100% $0.00/ hr $0.00/ hr $0.00 Prorat ed St andard
18 ma tre d' Mat radee servers 100% $40.00/ hr $0.00/ hr $0.00 Prorat ed St andard
19 20 coordinatiors coordinat ors servers 100% $300.00/ hr $0.00/ hr $0.00 Prorat ed St andard
20 200 servers Servers servers 100% $2,000. 00/ hr $0.00/ hr $0.00 Prorat ed St andard
21 Cleanup Cleanup servers 100% $300.00/ hr $0.00/ hr $0.00 Prorat ed St andard
22 Purchasing Mgr P Purchasing 100% $40.00/ hr $0.00/ hr $0.00 Prorat ed St andard
23 Wearhousing W Purchasing 100% $200.00/ hr $0.00/ hr $0.00 Prorat ed St andard
Crystal Ball - Looking into the
foreseeable future
Earned Value is a method of forecasting the
projects cost and scheduling outcomes early in
the project
It uses various budgeted amounts (time and
costs) currently spent early in the project and
weighs them against planned amounts for the
same period.
Outcomes project budget or schedule variances at
projects end.
http://www.goldpractices.com/practices/tev/index.php
Project stakeholders
Definition: Anyone who is positively or
negatively affected by the project.
Could be:
A person(s)
A company (vendors)
A department
A social order
A government
Communications Planning - Your
Ultimate CYA
People operate with the information they
are given.
Clear directives produce clear results.
Clear objectives produce desired results.
Every stakeholder needs to know the status
of the project.
PM is the single person who sees it all.
Communications Plan
Preferred learning styles:
Visual (65%)
Auditory (33%)
Kinesthetic feelings: (tactile and emotional) ( <3%)
PMs should address all three to be effective.
Tools of the trade:
Voice mail
Emails
Audio recordings
Website
Conference calls
Group meetings (last resort)
Techniques on how to
communicate.
Always start with the bottom line.
Color code each milestone or work Category.
Green=On time/on budget.
Yellow=Potential problems if not addressed
immediately.
Red=Immediate attention required. Milestone
and/or project in jeopardy.

Email
Subject line:
Cake project status: All critical paths are Green
Text:
All critical paths are reporting green.
For details: www.vanek.ws/project/cake
For audio: www.vanek.ws/project/cake/audio
Or dial (713)555-1234
For MS Project plan:
www.vanek.ws/project/cake/msproject
Email
Subject line:
Cake project status: Yellow due to critical path
procurement issues
Text:
Procurement warns of shortage of special order cake
pans. Vendor working problem. Update by
tomorrow .
For details: www.vanek.ws/project/cake
For audio: www.vanek.ws/project/cake/audio
Or dial (713)555-1234
For MS Project plan:
www.vanek.ws/project/cake/msproject
Email
Subject line:
Cake project status: Red. All stakeholders
/conference call 3:00PM Today
Text:
Major issue with procurement. Conference call
today at 3:30PM (800) 555 1234 password
2323. Roll call will be taken. Attendance
required. Prepare by having risk response for
your area.
For details: www.vanek.ws/project/cake
Damage control
People cause problems, people fix
problems.
Effective communications is the key.
POP management (point of the problem)

Summary
Projects are managed Pro-actively
Project Managers have a cookbook which is
the recipe for a successful project.
Planning and Communicating are the most
critical elements.
Questions?


FAILURE RECORD

In the United States, we spend more than $250 billion each year on IT application
development of approximately 175,000 projects. The average cost of a development project for a
large company is $2,322,000; for a medium company, $1,331,000; and for a small company,
$434,000. A great many of these projects will fail. Software development projects are in chaos,
and we can no longer imitate the three monkeys -- hear no failures, see no failures, speak no
failures.
The Standish Group research shows a staggering 31.1% of projects will be canceled before
they ever get completed. Further results indicate 52.7% of projects will cost 189% of their
original estimates. The cost of these failures and overruns are just the tip of the proverbial
iceberg. The lost opportunity costs are not measurable, but could easily be in the trillions of
dollars. One just has to look to the City of Denver to realize the extent of this problem. The
failure to produce reliable software to handle baggage at the new Denver airport is costing the
city $1.1 million per day.
Based on this research, The Standish Group estimates that in 1995 American companies and
government agencies will spend $81 billion for canceled software projects. These same
organizations will pay an additional $59 billion for software projects that will be completed, but
will exceed their original time estimates. Risk is always a factor when pushing the technology
envelope, but many of these projects were as mundane as a drivers license database, a new
accounting package, or an order entry system.
On the success side, the average is only 16.2% for software projects that are completed on-
time and on-budget. In the larger companies, the news is even worse: only 9% of their projects
come in on-time and on-budget. And, even when these projects are completed, many are no
more than a mere shadow of their original specification requirements. Projects completed by the
largest American companies have only approximately 42% of the originally-proposed features and
functions. Smaller companies do much better. A total of 78.4% of their software projects will get
deployed with at least 74.2% of their original features and functions.
This data may seem disheartening, and in fact, 48% of the IT executives in our research
sample feel that there are more failures currently than just five years ago. The good news is that
over 50% feel there are fewer or the same number of failures today than there were five and ten
years ago.