PM 101 Training - 01 - 13 - 2014

2014 Flowserve Corporation
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FLOWSERVE | RESEARCH & DEVELOPMENT
PROJ ECT MANAGEMENT PRINCIPALS PM 101

2014
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Project Management Training Roadmap
The project management training roadmap strategy is aligned with the Project Management
Body Of Knowledge (PMBOK).
Topics
PM 101
(Yellow)
PM 201
(Green)
PM 301
(Black)
Durati on 1.5 days 2 days 4 days
Parti ci pants ~ 200 ~ 100 ~50
Introduction
Project management Comprehensi ve Revi ew Comprehensi ve
Project constrai nts Comprehensi ve Revi ew Comprehensi ve
Rol e of project manager Comprehensi ve Revi ew Comprehensi ve
Rel ati onshi p between project, program, and portfol i o management Comprehensi ve Revi ew Comprehensi ve
Project Life Cycle
Project l i fe cycl e and rel ati onshi p to PDP process I ntroducti on Comprehensi ve Comprehensi ve
Initiating Process Group
Devel op project charter I ntroducti on Comprehensi ve Comprehensi ve
Stakehol ders rol es & responsi bi l i ti es I ntroducti on Comprehensi ve Comprehensi ve
Planning Process Group
Project Pl an (scope, WBS, schedul e, and resources) I ntroducti on Comprehensi ve Comprehensi ve
Esti mate budget I ntroducti on Comprehensi ve Comprehensi ve
Pl an communi cati on I ntroducti on Comprehensi ve Comprehensi ve
I denti fy Ri sks I ntroducti on Comprehensi ve Comprehensi ve
Executing Process Group
Manage project executi on I ntroducti on Comprehensi ve Comprehensi ve
Manage project teams I ntroducti on Comprehensi ve Comprehensi ve
Perform qual i ty assurance Not Covered I ntroducti on Comprehensi ve
Conduct Procurement Not Covered I ntroducti on Comprehensi ve
Monitoring & Controlling Process Group
Moni tor and control project work I ntroducti on Comprehensi ve Comprehensi ve
Perform qual i ty control Not Covered I ntroducti on Comprehensi ve
Admi ni ster procurement Not Covered I ntroducti on Comprehensi ve
Earned Val ue Management (EVM) Not Covered Not Covered Comprehensi ve
Vari ance anal ysi s I ntroducti on Comprehensi ve Comprehensi ve
Closing Process Group
Project cl osure and gate revi ew I ntroducti on Comprehensi ve Comprehensi ve
Project Management Handbook
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Future R&D Training Courses
# Training Description Duration Who should attend Location Date
PM-201 Intermediate Project
Management Training
2 days
(classroom)
TBD TBD
PM-201-1 Intermediate Project
Management and the
Project Lifecycle
1 hour LMS Course (future)
Management - Initiating
Process Group
2 hours LMS Course (future)
Management - Planning
Process Group
Management - Executing
Process Group
Management - Monitoring
and Controlling Process
Group
Management - Closing
Process Group
1 hour LMS Course (future)
PM-301 Advanced Project
Management Training
4 days
(classroom)
TBD TBD
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Content Overview
Introduction
Product & Project Life Cycle

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What is a Project?
A Project is a temporary group of activities designed to produce a unique
product, service, or result

A project is temporary in that it has a defined beginning and end in time,
and therefore defined scope and resources

The temporary nature of projects stands in contrast with business as
usual (or operations) which are repetitive, permanent, or semi-
permanent functional activities to produce products or services

The end is reached when the projects objectives have been achieved, or
when the project is canceled, or when the need for the project no longer
exists

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Relationships between Project, Program, and Portfolio (1 of 2)
A project is a temporary endeavour undertaken to create a unique result

A program is a group of related projects managed in a coordinated way to
obtain benefits and control not available from managing them
individually.
The key linkage between a Program and a Project is the Program Plan

A portfolio is a collection of programs and/or projects that align with an
organizations investment strategy
The key linkage between a portfolio and its programs and projects is the Portfolio
Budget

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Relationships between Project, Program, and Portfolio (2 of 2)
The relationship between these three entities can be visualized by the
picture below:

In Flowserve, we
primarily use Portfolios
& Projects. Future
opportunities for
utilizing Programs
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Portfolio Management
Portfolio management is the management of one or more portfolios

Portfolio management focuses on making sure that programs and projects
are prioritized for resources to serve the organizations strategy

Just as a program is managed by a program manager,
a portfolio is managed by a portfolio director or manager.

A portfolio manager worries about the success of the whole strategy put
forth by the organization rather than solely of the success of a single
project (like what project managers do)

In Flowserve, the R&D
Portfolio is segmented
and managed by
Product/Sector
Directors and AT
Directors
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What is Project Management?
Project management is about getting things done!

Project Management is the disciple of planning, executing, managing
resources, and controlling & monitoring of the scope, budget and time to
achieve specific goals

Project management is built upon the fundamentals of the Triple
Constraint:
A project has a specific objective that is meant to be completed referencing certain
specifications (scope)
A project utilizes specific resources, both human and monetary (cost)
A project has a defined timeframe, with definitive start and end dates (time)

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Triple Constraint (1 of 3)
The challenge of every project is to be successful within the Triple
Constraint; the Triple Constraint being scope (quality), cost (resources) and
time (schedule). These three elements of a project must work in tandem
with one another

Where one of these elements is restricted or extended, the other two
elements will then also need to be either extended/increased in some way
or restricted/reduced in some way

There is a balancing of the three elements that only when fully understood
allows for the successful planning, resourcing and execution of a project

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Scope/Quality:
The scope of a project (often called the Statement of Work (SOW)) is a
clear, specific statement as to what has been agreed to be
performed/achieved in a particular project.
Quality metrics/KPIs are used to measure performance against defined scope

Cost/Resources:
This second element of the Triple Constraint is known as either Cost or
Resources.
When we talk about the cost of a project, we are talking about personnel, material, and
equipment
Time/Schedule:
This third element of the Triple Constraint is known as either Time or
Schedule. Time, in project management, is defining the duration to each
and every component of a project.
By mastering the Triple Constraint, you master the project itself
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What steps can a project manager take to ensure successful project delivery
knowing how the three attributes affect each other?

Understand the Triple Constraint
The project manager MUST be fully conscious of the fact that scope, time and cost are
fully inter-related and that the triple constraint dictates any adjustment to any of those
items MUST affect the other

Convey the Triple Constraint
It is imperative that the project manager convey that information to the project
stakeholders
Stakeholders (definition): key individuals that have a vested interest in the successful outcome
of the project or have key deliverables that make up a broader Project; to be discussed in
details in a later section)

Monitor the Triple Constraint
The project manager must stay on top of all the key attributes of the triple constraint

The project manager must be conscious of any fluctuations to the triple constraint
elements
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How Does One Determine If a Project Was Successful?
The key objectives that determine the project is successful are:
The project met its requirements as described in the scope document
The project was completed on or ahead of schedule
The project was completed within budget
The project met or exceeded customers expectations

Proper planning in advance will increase probability of success
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What is the Role of a Project Manager?
The project manager will plan, execute, monitor & control, direct, and
ensure the successful outcome of their assigned projects by:
Managing team resources (cost)
Delivering to the approved budget
Delivering to the approved schedule
Delivering to the approved project scope and meeting or exceeding customers
expectations

Provide project leadership that encourages team enthusiasm and
innovation
A person who leads
One who understands the importance of "people" to the success of a project
One who is in charge or in command of others
Person who convinces other people to follow
A person who guides or directs group(s)

Ensure compliance of project execution with Flowserve policies

Collaborate and communicate with project teams as well as stakeholders
and business executives

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Content Overview
Introduction

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Product and Project Life Cycle (1 of 2)
The terms Product life cycle and Project life cycle sound quite similar, but
in fact, are very different from one another

Product Life Cycle
The product life cycle reflects the phases involved in any type of product

The five phases of a product's life cycle are:
Development,
Introduction,
Growth,
Maturity, and
Decline

There is no set time span for a given stage; the entire cycle may last
months to years depending on the product
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Product and Project Life Cycle (2 of 2)
Project Life Cycle
A project life cycle measures the work that goes into a project from
beginning to end to accomplish the projects goals or objectives

Project activities are grouped into phases so that the project manager and
the project core team can efficiently plan and organize resources for each
activity

By planning activities by phases the project manager and the project core
team can objectively measure achievement of deliverables so the Project
Approval Committee (PAC) can make informed decisions to move ahead,
correct, or cancel the project

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Project Life Cycle and Relationship with Product Development
Process (PDP) Life Cycle (1 of 2)
The PMBOK Guide identifies project management as being broken down
into five specific parts, or Process Groups:
Initiating Process Group,
Planning Process Group,
Executing Process Group,
Monitoring & Controlling Process Group, and
Closing Process Group.

These five process groups make up the functional life-cycle of the project
There are other standards available that describe the project management processes, tools,
and techniques. Here are the links: http://www.pmi.org; www.prince2.com; www.p3m3-
officialsite.com;

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Project Life Cycle and Relationship with Product Development
Process (PDP) Life Cycle (2 of 2)
The relationship between the Product Development Process (PDP) and
PMBOK Process groups is shown below

Initiating
Gate 0
Closing
P
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e
c
t

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i
f
e

C
y
c
l
e

Planning
Executing
Product
Monitoring &
Controlling
Project Monitoring & Controlling
Go! Redirect! Go! Reset! Go! Go!
Interim
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This slide is left blank intentionally
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Content Overview
Introduction

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The Initiation Process Group consists of two processes that are intended
to begin a project. The two defined processes are often performed
simultaneously

In this stage the projects champion (e.g. Product Director) defines what
the project is and what the customer hopes to achieve by undertaking the
project
Develop Project
Charter
Identify
Stakeholders
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Project Charter (1 of 2)
The project charter is a formal document issued by the projects champion
that authorizes the project and appoints the project manager

When signed off, the project charter gives the project life

The project charter documents the business needs, current understanding
of the customers needs, the new product, service, or result that it is
intended to satisfy, defines constraints and identifies the major
stakeholders involved

The charter gives the project manager and the Project Core Team the high-
level scope, cost, and schedule window from which to operate.
If events change those overall parameters, the sponsors must be contacted to approve
the changes

According to Project Management Institute (PMI), if there is no project charter, there is no project
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Project Charter (2 of 2)
Typically, the project charter includes the following:
Scope (requirements) of the project
Any constraints and assumptions
Project justification
Summary of project costs and benefits
High-level timeline for key milestones
High-level project risks
Assigned project manager, responsibility, and authority level
Name and authority of the champion or other person(s) authorizing the project charter

Project Charter provides the boundaries for the Triple Constraint
For Flowserve R&D Projects,
the high-level timeline for key
milestones, should include as a
minimum the target dates for
any gate reviews, production
start date, and market launch
date
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Stakeholders (1 of 6)
One of the first steps in project management planning is identifying the
stakeholders

How to Identify Key Stakeholders?
A few key questions the project manager have to ask when attempting to
identify the stakeholder list are:
G: Who has something to Gain from this project?
R: Who controls or provides or procures Resources, equipment, facilities, etc.?
A: Who is Affected positively or negatively by the project?
M: Who makes the Money decisions?
P: Who has the Power to make the project succeed?
PO: Who are the ultimate Process Owners?

Process owners
are often left out
of the loop
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How Many Stakeholders will there be?
Aside from the several key stakeholders who will normally stick with you
to the end, there will be numerous others at different levels of importance
who will migrate in and out

If your project is controversial youll find that, like bees drawn to honey,
any number of stakeholders will appear from nowhere

External stakeholders include customers, suppliers, partners, government,
local community

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Stakeholder (3 of 6)
How Many Stakeholders will there be (continued)?

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Stakeholder (4 of 6)
The Stakeholder Analysis
Stakeholder Analysis is a technique used to identify the key people who
have to be won over

How to Use the Tool
Step 1 Identify Your Stakeholders
Covered in slide the earlier slide

Step 2 Prioritize Your Stakeholders
The next step is to work out their power, influence and interest, so you
know who you should focus on

Some of the stakeholders may be interested in what you are doing, others
may not care

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Step 3 Construct a matrix to identify your stakeholders influence and
interest using a Power/Interest Grid as shown below:

The X axis on the grid will signify the interest the stakeholder has for the
project while the Y axis will denote an individuals influence

Low High Interest
Influence
High
Low
Keep Satisfied
Keep Informed
Manage Closely
KeepInformed
+
Two Way
Communication
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Step 4 Working with Stakeholders
The project manager needs to define an effective communication plan to
engage with the stakeholders

Having periodic demos of the deliverable (if possible) is also an excellent
way for the stakeholders to see the end result manifest itself.
It will also enable them to have a more tangible frame of reference for discussion should
issues arise with the core design or implementation of the end deliverable.

It is imperative that stakeholders are consistently kept up to date on the
progress of the project and brought in on a regular basis for discussions
and follow-ups as things mature.

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Content Overview
Introduction

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The Planning Process Group
processes are intended to plan
a project or project phase.

The processes with dotted lines
will be discussed in PM 201
and/or PM301.

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Define Project Scope
A critical element of any project is gathering the business requirements
and creating a clear picture of what needs to be delivered.

The project scope statement, which is sometimes called statement of work
(SOW), describes in detail the projects deliverables and the work required
to create those deliverables

The SOW explains the boundaries of the project, establishes
responsibilities for each team member and sets up procedures for how
completed work will be verified and approved

The SOW also provides a common understanding of the project scope
among project stakeholders

The scope statement also provides the project team with guidelines for
making decisions about change requests during the project.

Scope statement is included within the project's charter.
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Create Work Breakdown Structure (WBS) (1 of 4)
One way to get a clear picture of all of the work that needs to be done on
a project is to create a work breakdown structure (WBS)

The two most common ways of visualizing the work are by deliverables or
by phases
For R&D projects, by Phase is the recommended method

WBS is the process of subdividing project work into smaller, more
manageable components called work packages (i.e. Phases within the
project, Steps within each Phase, Tasks within each Step, and Systems,
Sub-systems, or Components

The work package level is the lowest level in the WBS, and is the point at
which the cost and activity durations for the work can be reliably estimated
and managed.

The WBS is one of the most important pieces of the project planning!
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Below is a WBS example by Phase:

BICYCLE
Phase 1 Phase 2 Phase 3 Phase 4
Market Requirements ... Operational Requirem... Risk Assessment Financial Plan Business Plan Resource Plan Detailed Project Sch...
Detaailed Design / P... Patent Review Make / Buy Analysis Validation Test Plan Supplier Selection Manufacturing Strate... Design Review
Product Validation Manufacturing Proces... Supplier Qualificati... Market Launch Plan 3rd Party Certificat... Sales Training Mater... Final Design Review
Inventory Build-up Operations and Sales... Supplier Qualificati... Project Close-out Pr... Customer Feedback Post-Launch Review
Detailed Project Sch...
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Below is a WBS example for a Bicycle by Deliverables:

BICYCLE
Wheels Powertrain Brakes Frame Set Assembly Test Drive
Rims Rear Cassette Tubes Tires
Shifters Crank Set Chain Derailleurs
Brake Levers Brakes
Frame Handlebar Fork Seat
Frame Wheels Powertrain Brakes
Chainrings Crank Arms Pedals Front Rear Stem Headset Handlebar Seat Post Seat
Level 3
Level 4
Level 2
Level 1
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Below is the WBS Outline for the Bicycle example

WBS Level WBS ID Element Name
1 1 BICYCLE
2 1.1 Wheel s
3 1.1.1 Rims
3 1.1.2 Rear Cassette
3 1.1.3 Tubes
3 1.1.4 Tires
2 1.2 Powertrai n
3 1.2.1 Shifters
3 1.2.2 Crank Set
4 1.2.2.1 Chainrings
4 1.2.2.2 Crank Arms
4 1.2.2.3 Pedals
3 1.2.3 Chain
3 1.2.4 Derailleurs
4 1.2.4.1 Front
4 1.2.4.2 Rear
2 1.3 Brakes
3 1.3.1 Brake Levers
3 1.3.2 Brakes
WBS Outline List
WBS Level WBS ID Element Name
2 1.4 Frame Set
3 1.4.1 Frame
3 1.4.2 Handlebar
4 1.4.2.1 Stem
4 1.4.2.2 Headset
4 1.4.2.3 Handlebar
3 1.4.3 Fork
3 1.4.4 Seat
4 1.4.4.1 Seat Post
4 1.4.4.2 Seat
2 1.5 Assembl y
3 1.5.1 Frame
3 1.5.2 Wheels
3 1.5.3 Powertrain
3 1.5.4 Brakes
2 1.6 Test Dri ve
WBS Outline List (continued)
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Define Activities (1 of 2)
Define activities is the process of creating a complete list of the project
deliverables

The list, known as activity list, is a comprehensive list that includes all
schedule activities that are planned to be performed on the project

To create this list, each work package at the bottom of the WBS is
decomposed into schedule activities

An activity is typically described using a noun and verb such as create
report.

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Define Activities (2 of 2)
Below is the Activity List for the work package Frame of the Bicycle

WBS Level WBS ID Element Name Activity Predecessor
2 1.4 Frame Set
1.4.1
1.4.1.1 Create rider-bicycle system model
1.4.1.2 Design three-pivot position 1.4.1.1
1.4.1.3 Run simulation 1.4.1.2
1.4.1.4 Optimize design 1.4.1.3
1.4.1.5 Build prototype 1.4.1.4
1.4.1.6 Test prototype 1.4.1.5
1.4.1.7 Adjust design 1.4.1.6
1.4.1.8 Release to production 1.4.1.7
3 1.4.2 Handlebar
4 1.4.2.1 Stem
4 1.4.2.2 Headset
4 1.4.2.3 Handlebar
3 1.4.3 Fork
3 1.4.4 Seat
4 1.4.4.1 Seat Post
4 1.4.4.2 Seat
2 1.5 Assembl y
3 1.5.1 Frame
3 1.5.2 Wheels
3 1.5.3 Powertrain
3 1.5.4 Brakes
2 1.6 Test Dri ve
Activity List (continued)
Frame 3
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Determine Sequence of Activities
Sequence Activities is the process of identifying relationships among the
project activities

During sequence activities, the focus is to arrange the activities in the
most efficient and effective order

Every activity and milestone are connected to at least one predecessor
and one successor

The network diagram is a schematic of project activities. It shows how the
various activities are connected

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Estimate Required Resources (1 of 2)
The next step after creating the WBS and the activity list is to determine
all the resources required to support the project

Examine the projects needs in terms of personnel, material, and
equipment, how much of each you require, and when you need it

Resource needs should be defined on a Phase-by-Phase basis.

How to fulfill resource requests?
Functional Managers can approve or deny resource requests

When negotiating resources with the Functional Manager, the Project
Manager should clearly communicate the priority of their project.
Resources are assigned based on project priorities

Once resources are assigned to a project, these resources now report to the Project Manager
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Estimate Required Resources (2 of 2)
Below is the resource list for the bicycle example
WBS Level WBS ID Element Name Resource C
1 1 BICYCLE
2 1.1 Wheel s
3 1.1.1 Rims
3 1.1.2 Rear Cassette
3 1.1.3 Tubes
3 1.1.4 Tires
2 1.2 Powertrai n
3 1.2.1 Shifters
3 1.2.2 Crank Set
4 1.2.2.1 Chainrings
4 1.2.2.2 Crank Arms
4 1.2.2.3 Pedals
3 1.2.3 Chain
3 1.2.4 Derailleurs
4 1.2.4.1 Front
4 1.2.4.2 Rear
2 1.3 Brakes
3 1.3.1 Brake Levers
3 1.3.2 Brakes
Resource List
Resource A
Resource B
Resource C
WBS Level WBS ID Element Name Resource C
2 1.4 Frame Set
3 1.4.1 Frame
3 1.4.2 Handlebar
4 1.4.2.1 Stem
4 1.4.2.2 Headset
4 1.4.2.3 Handlebar
3 1.4.3 Fork
3 1.4.4 Seat
4 1.4.4.1 Seat Post
4 1.4.4.2 Seat
2 1.5 Assembl y
3 1.5.1 Frame
3 1.5.2 Wheels
3 1.5.3 Powertrain
3 1.5.4 Brakes
2 1.6 Test Dri ve
Resource F
Resource E
Resource D
Resource List (continued)
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Estimate Activities Duration (1 of 2)
The next step is to estimate the number of work days (or hours) to
complete each activity

That estimation then rolls up to create the high level estimates

When estimating an activitys duration, make sure activity owner gives
input and feels ownership of their deliverables
People are more likely to deliver on commitments that they have made rather than on
commitments that were made on their behalf!

There is a fundamental formula that ties together the duration of an
activity against the amount of work effort required, and the resources
needed to complete the work:
Activity duration = work effort/human units.

Most people subconsciously add padding to their estimates, and due to Parkinsons Law (i.e.
work expands to fill the time scheduled), this extra time will be used up unnecessarily.
Also, due to the Student Syndrome, people will wait until the last minute to accomplish their
work. The Project Manager needs to take this into account when estimating activities
durations!
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Estimate Activities Duration (2 of 2)
Below is the activity durations for the bicycle example

WBS Level WBS ID Element Name Activity Predecessor Duration
Days
2 1.4 Frame Set
1.4.1 35
1.4.1.1 Create rider-bicycle systemmodel 5
1.4.1.2 Design three-pivot position 1.4.1.1 7
1.4.1.3 Run simulation 1.4.1.2 4
1.4.1.4 Optimize design 1.4.1.3 3
1.4.1.5 Build prototype 1.4.1.4 10
1.4.1.6 Test prototype 1.4.1.5 2
1.4.1.7 Adjust design 1.4.1.6 3
1.4.1.8 Release to production 1.4.1.7 1
3 1.4.2 Handlebar
4 1.4.2.1 Stem 10
4 1.4.2.2 Headset 14
4 1.4.2.3 Handlebar 16
3 1.4.3 Fork 25
3 1.4.4 Seat
4 1.4.4.1 Seat Post 7
4 1.4.4.2 Seat 15
2 1.5 Assembl y
3 1.5.1 Frame 5
3 1.5.2 Wheels 3
3 1.5.3 Powertrain 7
3 1.5.4 Brakes 2
2 1.6 Test Dri ve 5
Activity List w/ Duration (continued)
Frame 3
WBS Level WBS ID Element Name Activity Predecessor Duration
Days
1 1 BICYCLE
2 1.1 Wheel s
3 1.1.1 Rims 39
3 1.1.2 Rear Cassette 15
3 1.1.3 Tubes 5
3 1.1.4 Tires 5
2 1.2 Powertrai n
3 1.2.1 Shifters 15
3 1.2.2 Crank Set
4 1.2.2.1 Chainrings 9
4 1.2.2.2 Crank Arms 6
4 1.2.2.3 Pedals 10
3 1.2.3 Chain 5
3 1.2.4 Derailleurs
4 1.2.4.1 Front 18
4 1.2.4.2 Rear 41
2 1.3 Brakes
3 1.3.1 Brake Levers 12
3 1.3.2 Brakes 15
Activity List w/ Duration
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Develop Schedule (1 of 4)
At this point, the what (WBS and activity list), what order (sequence
activities), when (start and finish dates), who (resources), come
together and the schedule is born

The schedule tells you when each activity should be done, what has
already been completed, and the sequence in which things need to be
finished

Creating the master project schedule is a team effort. Each member of
the Project Core Team should be involved in this process

The master project schedule should be updated and maintained on a
regular basis

The schedule transforms the project from a vision to a time-based plan
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Critical Path Method
Every project schedule has critical path(s).

Critical path is the longest path (string of activities) on the project network
diagram

Every single activity on the critical path must finish on time in order for the
project to come in on time. A delay in any one of the critical path
activities will cause the entire project to be delayed

Once youve figured out the critical path, then you can calculate the float.
The float for any activity is the amount of time (slack) that it can slip before it causes
your project to be delayed
The float for every activity in the critical path is zero

The float for every activity in the critical path is zero
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Lets create the network diagram for the Bicycle example:

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Lets create the detailed schedule for the Bicycle example:

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Scheduling Tools & Techniques
Schedule Compression
These tool helps shorten the total duration of a project by decreasing the
time allotted for certain activities. It's done so that you can meet time
constraints, and still keep the original scope of the project. You can use
two methods here:
Crashing:
This is where you assign more resources to an activity, thus decreasing the time it takes
to complete it.
This is based on the assumption that the time you save will offset the added resource
costs.
Crashing only works for activities where additional resources will shorten the duration.
Crashing does not always produce a viable alternative and may result in increased risk
and/or cost.
Fast-Tracking:
This involves rearranging activities to allow more parallel work. This means that things
you would normally do one after another are now done at the same time.
This approach may result in rework and increased risk.
Fast tracking only works if activities can be overlapped to shorten the duration.

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Estimate Costs (1 of 3)
Estimate Costs is the process of developing an approximation of the
monetary resources needed to complete project activities.

Costs are estimated for all resources that will be charged to the project.
This includes salary expense (i.e. labor), non-salary expense (i.e. materials,
services), and capital (equipment, facilities)

The accuracy of a project estimate will increase as the project progresses
through the project life cycle
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Page 51
There are a number of cost estimating techniques the Project Manager
and Project Core team can use to establish activity cost estimates. Most
common ones are:
Bottom-Up Estimating
The cost of individual deliverables is estimated with the greatest level of specific detail.
The detailed cost is them summarized or rolled up to create a total project estimate

Historical Base Estimating
This technique is used when there is a limited amount of detailed information about the
project. This technique uses historical information and expert judgment
Its a high level estimate, not a detailed estimate

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Below is the activities estimated cost for the bicycle example

WBS ID Element Name Activity Predecessor Duration
Days
Cost
1.4 Frame Set
1.4.1 35 $3,500
1.4.1.1 Create rider-bicycle system model 5 $500
1.4.1.2 Design three-pivot position 1.4.1.1 7 $700
1.4.1.3 Run simulation 1.4.1.2 4 $400
1.4.1.4 Optimize design 1.4.1.3 3 $300
1.4.1.5 Build prototype 1.4.1.4 10 $1,000
1.4.1.6 Test prototype 1.4.1.5 2 $200
1.4.1.7 Adjust design 1.4.1.6 3 $300
1.4.1.8 Release to production 1.4.1.7 1 $100
1.4.2 Handlebar
1.4.2.1 Stem 10 $285
1.4.2.2 Headset 14 $170
1.4.2.3 Handlebar 16 $250
1.4.3 Fork 25 $400
1.4.4 Seat
1.4.4.1 Seat Post 7 $250
1.4.4.2 Seat 15 $190
1.5 Assembl y
1.5.1 Frame 5 $100
1.5.2 Wheels 3 $50
1.5.3 Powertrain 7 $150
1.5.4 Brakes 2 $50
1.6 Test Dri ve 5 Priceless
$14,523
Activity List w/ Duration (continued)
Frame
WBS ID Element Name Duration
Days
Cost
1 BICYCLE
1.1 Wheel s
1.1.1 Rims 39 $2,025
1.1.2 Rear Cassette 15 $340
1.1.3 Tubes 5 $8
1.1.4 Tires 5 $65
1.2 Powertrai n
1.2.1 Shifters 15 $290
1.2.2 Crank Set
1.2.2.1 Chainrings 9 $155
1.2.2.2 Crank Arms 6 $70
1.2.2.3 Pedals 10 $425
1.2.3 Chain 5 $95
1.2.4 Derailleurs
1.2.4.1 Front 18 $850
1.2.4.2 Rear 41 $925
1.3 Brakes
1.3.1 Brake Levers 12 $0
1.3.2 Brakes 15 $380
Activity List w/ Duration
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Determine Budget
The estimated budget (forecast) is the sum up of the estimated costs of all
the individual activities or work packages

Project budgets constitute the funds authorized to execute the project

The cost baseline established the basis for measuring, monitoring, and
controlling project cost

Changes to the scope of the project will most often have a direct impact
on the budget and the forecast

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Page 54
Plan Communications (1 of 3)
Plan Communications is the process of determining project stakeholder
information needs and defining a communication approach

Communication is vital for a successful project

One of the many factors that contribute to the failure of projects is poor or
insufficient communication.

Careful communication planning and setting the right expectations with all
the project stakeholders is extremely important

Face-to-face initial communication (i.e. kickoff meetings), if feasible, to
establish the team dynamics and learning the customers and
stakeholders expectations are the keys to success when managing a
project

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Page 55
Communication Channels
Communication is a complex part of any project. The more people
involved in a project, the greater the communication among them
The formula for this relationship is N* (N-1)/2; where N being the number of people on
the project.
For example, 4 People, 6 Channels

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Communication Types
A challenge the project manager faces is to determine what type of
communication channel should he/she opt for in order to carryout
effective communication.

Some of the most common communication types are:

Communication Types
Formal
(reports, memos)
Informal
(emails)
Official
(monthly reports)
Face-to-Face
Verbal & non-verbal
(body language)
Lync
Video Conferencing
Discussion Forums
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Page 57
Identify Risks (1 of 2)
Risk is an event with some degree of uncertainty. It may or may not occur

A positive risk is an opportunity; a negative risk is a threat
Example of a positive risk event is the growth from the sales of a new product exceeding
expectations

Every project, regardless of scope or complexity, is going to have some
inherent risks

The project manager and the project core team have to identify, classify,
prioritize, mitigate, and monitor and control the project risks

Risks themselves can be from factors internal to the project, such as the
adoption of a new technology, resource constraints, and internal
dependencies

Additionally, risks can also be external, such as the health of the financial
markets, competitive pressures, or legal liabilities

All Risks should be documented in the Risk Register
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Identify Risks (2 of 2)
Risk Management Process
The project manager and project core team proactively plan how to
identify, rank, and address risks issues on a project.

The steps the project manager and project core team should follow to
perform risk assessment are:
Identification Perform a brainstorming session where all conceivable risks are itemized
Planning - Once defined, plan for contingencies as part of the overall project plan;
implement controls as needed
Derive Safeguards Place specific fallbacks into the overall project plan as
contingencies for risks if they arise
Monitor Continuously monitor the project to determine if any defined (or un-
expected) risks manifest themselves

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Content Overview
Introduction

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Page 60
The Executing Process Group processes are intended
to manage the work during a project or project
phase.

The processes with dotted lines will be discussed in
PM 201 and/or PM301.

Acquire Project
Team
Develop Project
Team
Manage Project
Team
Distribute
Information
Manage
Stakeholder
Expectations
Perform Quality
Assurance
Conduct
Procurement
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Direct and Manage Project Execution
This is the official start of actual implementation

This is the point where we have moved from the theory of how we
envisioned the project to move forward to the actual practice, where the
engine is running and we are on the road

All planning activities are now mature, work assignments should have now
been made and all parties should have full understanding of their role and
duties as it pertains to this project.

This is where the majority of the project budget is expended and most of
the project time is spent.

This is where the plan is carried out

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Acquire Project Team
Is the process of obtaining the resources (personnel, material, and
equipment) needed to complete the project. This process should be
started early on in the project.

As resources get allocated to do the actual work, the resource can charge
time against the project.

In the event the project manager and Functional Managers are unable to
complete the allocation of resources, the project manager should escalate
the issue to the PAC.

In Planning, you identify the resources you need.

In Executing, you allocate the resources

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Develop Project Team
People are the wildcards on projects

How you manage and integrate people into a team environment is
important to your success as a project manager

Good team dynamics start with an effective project manager

Establishing an effective team involves defining a clear purpose, goals,
dependencies and accountability

Enhancing the communication and interactions among the team members
helps with the ultimate successful completion of the project

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Manage Project Team
Holding People Accountable
Solicit the approval of the Functional Manager when you ask the person to
accept responsibility for a task. When you do so correctly and at the right
time, you can improve the chances for success.

If you run into trouble with getting the resources to get the work done,
you need to coach them like any Functional Manager will coach their team
members.

If all else fails, go to the Functional Manager!
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Distribute Information
The main focus here is to deliver information to the project stakeholders

Project information can be distributed using a variety of tools, including:
Hard-copy
Meetings
Electronic databases
Electronic communication such as e-mail,
Management software,

Creating efficient flow of communication from the routine status reports
to the red flag issues is essential for creating a positive workflow
experience with stakeholders
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Manage Stakeholder Expectations
Managing stakeholder expectations encompasses communicating with
stakeholders to determine their expectations and address issues in a
timely manner

Project manager should understand that managing stakeholder
communication is just as important as communicating with the project
teams

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Page 67
Content Overview
Project Management Survey
Introduction

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Page 68
The Monitoring and
Controlling processes work
very closely and have a high
degree of interactions with
each other.

The Monitoring and
Controlling processes
concentrate on confirming
that the deliverables meet the
planned specifications and
requirements

The processes with dotted
lines will be discussed in PM
201 and/or PM301.

Control Quality
Monitor and
Control Project
Work
Perform
Integrated Change
Request
Verify Scope
Control Schedule
Control Scope
Control Cost
Control Risk
Control
Procurements
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Page 69
Monitoring and Controlling Process Group
The Monitoring and Controlling process oversees all the tasks and metrics
necessary to ensure that the approved project is within scope, on time,
and on budget

This process involves comparing actual performance with planned
performance and taking corrective action to yield the desired outcome
when significant differences exist

Monitoring and Controlling process is continuously performed throughout
the life of the project

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Page 70
Monitor and Control Project Work
This is the process of tracking and reviewing the progress to meet the
performance objectives defined in the project scope

Monitoring includes status reporting, progress measurement, and
forecasting

Performance reports provide information on the projects performance
with regard to scope, cost, and schedule

In summary, Monitor and Control Project work is all about managing the
way that the project scope is executed

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Change Request (1 of 5)
A change request is a formally proposed change to the scope of a project
as a result of a proactive response to a risk, a reactive response to an
issue, or a requested modification due to market changes, new ideas,
opportunities.

If the requested changes would affect the current gate and would
jeopardizing the ability of the project manager and the Project Core team
to deliver within the tolerance of the approved project scope, cost, and
schedule, then the project manager shall request an Interim Gate Review
to seek approval

If the changes are approved, the project manager and the project core
team then need to manage the effects of those changes on the Triple
Constraint elements: scope, budget, and schedule

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Quantifying the Change Request
The project manager and the Project Core Team shall investigate the scope
change request and define the impact to scope, cost, and schedule of the
request

The investigation shall include analysis of risks/opportunities associated
with the scope change requested

Risk contingencies should be documented and managed through the
change request process!
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Page 73
Quantifying the Change Request (continued)
Be aware of scope creep!
Scope creep also known as feature creep, focus creep, creeping functionality and
kitchen-sink syndrome can sneak up, alter and destroy a project.

Scope creep is the piling up of unapproved changes that by themselves are manageable,
but in aggregate are significant.

You can expect there to be a degree of scope creep in most projects, therefore it is
important to use the change request process to document and manage ALL changes.
Every single change that is requested will need to be reviewed and approved by the
Project Manager.

Gold Plating: This term is given to the practice of exceeding the scope of a project in the
belief that value is being added. Gold plating is a scope creep!
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Defining Response Options
For a scope/change request, the Project Manager and the Project Core
Team shall determine the most appropriate project response:
Accept the request
Reject the
Defer the request

Implementing Response Plans
For accepted requests, the Project Core Team shall brainstorm multiple
methods to deliver the required attributes driven by the change request

Project manager is to ensure that the project scope, budget, and schedule
are updated to reflect the approved changes

If the project schedule is updated to reflect approved change control, a
new baseline schedule may be required

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Page 75
Change Request form that you can use to document and manage ALL changes

Change # Requestor Date Describe the
Change Being
Requested
Describe
Reason for the
Change
Describe any
Alternatives
Considered
Describes any
Technical Changes
Required to
Implement the
Requested Change
Describe Risks
to be
Considered for
this Change
Estimated
Cost Needed
to Implement
the Change
Scope Cost Schedule Approved Rejected Deferred Change
Board
Approval
Date
Change Category
Project Name
Decision
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Verify Scope
The primary purpose of this process is to formalize acceptance of the
completed project deliverables

The deliverables are examined and verified to the acceptance criteria as
outlined scope baseline

If the deliverables are satisfactory, the output is Accepted Deliverables.

If the deliverables are unacceptable, the project manager and project core
team should identify root cause and determine corrective actions and/or
how to repair the component defects

Often, these corrective actions will result in changes to a projects scope,
cost, or schedule. It is imperative that all of the findings are detailed and
communicated to the stakeholders so changes can be reviewed, approved,
and implemented in the project scope plan
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Control Schedule
Control Schedule is the process of monitoring the status of the project to
update project progress and managing changes to the schedule baseline

The Project Manager is the owner of the master schedule

Meet with Project Team members individually as required to see how their
tasks are progressing

Review the master schedule at each Core Team meeting.

Track progress of executing the schedule (identify delays, accelerations,
changes, and preparation for upcoming events)

This process is carried out throughout the project after the schedule has
been developed and continues until all schedule activities have been
completed.
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Page 78
Control Cost
Control Cost is the process of monitoring the project budget and managing
changes to the cost baseline

The project manager needs to monitor and control the budget and to
make sure that you compare the actual cost with the baseline cost in
order to make sure your project stays within funding limitations

Once you find that there is a variance from the baseline you must
determine what caused the variance and therefore decide what the most
appropriate response is.
Dont just wait for variances to occur, but influence and control the factors that
contribute to the variance.

This process is all about cost variances. A positive variance is good, a
negative variance is bad.
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Page 79
Report Performance (1 of 10)
Reporting on project performance is a vital communications need of project
stakeholders to keep them abreast of progress and the resources used in
accomplishing the project objectives

Managing a successful project involves a clear understanding of the health of
a projects scope, cost, and schedule

When reporting performance metrics, be sure to include the kinds of
information and level of detail required by the project stakeholders.

The frequency of reporting this information is decided according to project
stakeholders

The more common measures of project performance are:
Progress reporting describing the accomplishments of the project team for a given time
period.
Status reporting describing where the project is at a given point in time.
Project forecasting predicting the future of the project based upon past information and the
projects history.

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Page 80
Schedule Progress
Two popular methods for tracking progress of tasks or activities in a
project schedule: by percent complete and by work remaining

Tracking Tasks by Percent Complete:
If a task is given two weeks to complete and one week has already passed, then the task
is assumed to be 50% complete
Progress is assumed to be spread evenly throughout the time allotted and without
interruption. Unfortunately, most projects do not work this way

Tracking Tasks by Work Remaining:
The resource assigned to the task must assess how much real work is remaining and if
that work can be completed by the schedule date
What a project manager really wants to know is:
"How many total days of real work does the task require?"
"How many days of real work are remaining?", and
"Can the remaining work be done by the scheduled finish date?
Asking these question regularly allows the project manager to get a better sense of
true percentage
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Page 81
RAIL (Rolling Action Item List):
How can the project manager ensure that his/her team does not find itself
behind schedule or delayed from reaching success?
By using a Rolling Action Item List (RAIL) as a tool to drive results

How to Create a RAIL (most common format Excel)?
Action item #:
This is simply a tracking number for each action item
Action Description:
This should be as short as reasonably possible. It needs to be action oriented and descriptive enough so that you dont
forget what you were talking about during past meetings
Owner:
This needs to be designated to a specific individual, not a team
This doesn't mean that the person designated with the responsibility is the one doing all or any of the work. However, the
owner is responsible for making sure it gets done within the time frame mentioned
Date Assigned/Due Date:
Ask the action owner when they can commit to getting the action done. This is part of the buy-in process (i.e.
accountability)
Note: The due date should never change once it is agreed upon. Any updates to the original due date should be reflected in
the status/notes section
Status/Notes:
This is where you can provide interim updates on the status and any issues that may impact rescheduling of the
action. This is a great way to communicate updates to the team
Open/Closed:
This is to indicate whether the action item is open or closed
Note: Do not delete closed action items, hide them
CONFIDENTIAL
Page 82
Example of Project RAIL:
Action
Item #
Description Owner Date Assigned Due Date Status/Notes Status
(Open/Cl
osed)
119 Engi neeri ng to i nvesti gate i mpel l er materi al opti ons (i .e. WCB vs. cast i ron). Jessi ca Phi l l i ps 8/7/2013 11/22/2013 12/05/2013: Prel i mi nary resul ts are back (snap shot). Ful l report not avai l abl e yet. From the
prel i mi nary report, i t appears that we can't use the WCB materi al for i mpel l er wi th cast i ron
components (i .e. di ffuser and stage casi ng). I f we have to use WBC materi al for i mpel l ers, then we
need to add a wear ri ng. Fi nal report wi l l be publ i shed by 06-Dec-13. Ghassan to schedul e a separate
meeti ng to di scuss test resul ts
11/14/2013: Unfortunatel y the testi ng wi l l not take pl ace unti l the week of Nov 18th. They wanted to
wai t ti l l they had al l of the test pi eces and thei r test guy won't return to the offi ce unti l next week.
Shoul d have resul ts by the end of the week, 22-Nov
10/31/2013: Recei ved materi al on 31-Oct. Overni ght the materi al to test faci l i ty i n Texas. Expect resul ts
by end of week 08-Nov
10/24/2013: Materi al wi l l be i n by 25-Oct. Testi ng wi l l start the week of 28-Oct
Open
173 Oracle/Flowselex: Ji m to publ i sh an advance copy of the part sel ecti on charts for the 2", 3",
and 4" RSX for Ducti l e, Chrome, and Dupl ex
Ji m Al l en 8/28/2013 8/28/2013 8/28/2013: Ji m publ i shed copi es of the part sel ecti on charts for the 2", 3" and 4" RSX Cl osed
175 Component Stocking/Inventory Strategy: Suppl y Chai n to advi se the component stocki ng
strategy for di scharge casi ng, sucti on casi ng, stage casi ng, di ffuser, i mpel l er, and fl anges.
The strategy to i ncl ude: whi ch parts, what quanti ty, what machi ni ng confi gurati on, where,
whi ch materi al s, and l ead-ti mes
Serge I rel and 8/8/2013 11/14/2013 12/05/2013: A cal l between Suppl y Chai n and Catheri ne i s setup for Monday 8-Dec-13 to fi nal i ze the
strategy. Serge wi l l provi de Catheri ne al l she needs to fi nal i ze the stocki ng strategy for machi ned
components. The strategy wi l l be communi cated to the si tes by mi d December. Feedback from si te by
earl y Jan-14
11/14/2013: The strategy for machi ned components i s sti l l bei ng worked. A meeti ng i s schedul ed for
19-Nov-13 between Catheri ne and suppl y chai n to fi nal i ze the pl an. Afterwards, Catheri ne and Serge
wi l l have al l the i nformati on needed to fi nal i ze the stocki ng pl an and publ i sh to si tes by end of Nov.
10/24/2013: Catheri ne and Serge are formul ati ng the pl an. Suppl y Chai n i s fi ne tuni ng the pl an. The
pl an i s to fi nal i ze and publ i sh the sourci ng strategy for machi ned components by mi d November. For
cast components the strategy i s al ready defi ned and publ i shed. I n the l ast two weeks of November,
Suppl y Chai n wi l l communi cate the stocki ng program wi th si tes. Si tes to provi de feedback wi thi n two
weeks
10/17/2013: Suppl y chai n shared the strategy wi th each of the si tes. Coi mbatore prefers to source
l ocal l y i nstead of stocki ng. Catheri ne and Serge wi l l work wi th each of the si tes through the speci fi cs

Open
177 Shi p one pump model to Arnage for tear down and eval uati on. Si ze and materi al type to
be fi nal i zed at a l ater ti me
Ghassan Gebara 9/5/2013 3/30/2014 09/05/2013: Pl ace hol der Open
I tems hi ghl i ghted i n Gray are consi dered cl osed. Cl osed i tems are hi dden
I tems hi ghl i ghted i n Red are cri ti cal
RSX Projects
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Page 83
Project Forecasting
Project forecasting is used to predict a projects status, progress and
health. Forecasting answers questions such as:
How long will it take to finish this project based upon the current information and trends?
How much more money will be needed to finish this project based upon the current spend trend?
What additional resource commitments will be needed?

Project Variance
The difference between all estimated and all actual dollars. It is calculated by
subtracting the Forecast Total from the Total Current Budget.
A positive variance means that the actual cost of the product is less than the budgeted cost.
A negative variance means that the actual cost of the product is greater than the budgeted cost.

Whether positive or negative variance, the Project Manager needs to understand
what is causing variance and take proactive steps to keep it under control.

The Project Manager must be able to explain the cause of variance to stakeholders
and determine if corrective actions need to be taken to maintain the projects
budget.

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Page 84
Time Reporting (Salary Expense)
In order to properly track the progress of work, time reporting is needed
to gather hours spent on assigned tasks

Resources that are assigned work on a project must enter in a timesheet
(manually or directly into Planview) the time they spent on their tasks.

It is important that resources accurately record their time

Another component of accuracy, is to ensure that resources are reporting
against the right task

Resources are encouraged to capture their time on a weekly basis!

Accuracy of timesheet information allows the project manager to better
understand whats happening on the activity and adjust the schedule and
resource workload accordingly

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Page 85
Time Reporting (Salary Expense) (continued)
Monthly timesheet template:
This template is only applicable prior to Planview deployment

CONFIDENTIAL
Page 86
Capital and Non-Salary project expense report (New Template):

Project status indicators and gate dates are being managed on Planview by the project manager

Platform: Other Template rev 5 - June 21 2013
Primary Business Unit:
Project ID:
Project Name:
Project Manager: The Project Manager listed here will be contacted if we have questions
Currency USD
Select Month: Business Unit Amount Business Unit Amount Business Unit Amount
0 0 0
E
x
p
e
n
s
e

T
y
p
e
Capi tal
Non Sal ary
Development
Other Expense
Professional Services
Travel
Production
Other Capital
RESEARCH & DEVELOPMENT - Monthly Project Expenses Report
*****PLEASE DO NOT CHANGE THE FORMAT OF TEMPLATE***********

Totals:
Capital and Non -Salary Expenses The same currency should be used for all amounts in a month
June-13
Note: Capital amounts must
be over $5k to be considered
capital
Select by using Drop Down
List
Enter the Business Unit that paid for the expense - in order that
the correct BU gets compensation for this. There is room for
three different BUs for the same type of costs per month.
Contact the R&D PMO if you need additional columns.
When filled out, please upload this document i nto the
R&D PMO Sharepoint "Project Status" folders, in the
appropriate month:
http://teams.flowserve.com/Corp/RnDProjectManage
mentTransformationProgramNA12194/SitePages/Hom
e.aspx?RootFolder=%2FCorp%2FRnDProjectManageme
ntTransformationProgramNA12194%2FShared%20Doc
uments%2FIPO&FolderCTI D=0x0120003D1D24D0CB02
654BA9AE6A4670AE5D21&Vi ew={4152C0A7-0B25-
CONFIDENTIAL
Page 87
Example of Capital and Non-Salary project expense report:
Platform: IPO
Primary Business Unit: Chesapeake
Project ID: CHE-013
Project Name:
Project Manager: The Project Manager listed here will be contacted if we have questions
Currency USD
Select Month: Business Unit Amount Business Unit Amount Business Unit Amount
CHE $75,550.00
CHE $61,900.00
CHE $121,275.00
CHE $18,909.50
CHE $12,291.50
CHE $81,112.50
CHE $29,137.50
CHE $69,195.00
CHE $22,410.00
CHE $64,483.00
CHE $22,050.00
CHE $100,000.00
CHE $19,444.00
CHE $1,395.00
CHE $3,780.55
$702,933.55 0 0
Suction Casings/Disch Casings (Iron)
Impellers
Diffusers
Stage Casings
Total
Motor
November-13
RESEARCH & DEVELOPMENT - Monthly Project Expenses Report
*****PLEASE DO NOT CHANGE THE FORMAT OF TEMPLATE***********
E
x
p
e
n
s
e

T
y
p
e
Capital and Non -Salary Expenses
RSX (New ring section pump)
Ghassan Gebara
Note: Capital amounts
must be over $5k to be
considered capital
The same currency should be used for all amounts in a month
Capi tal
Non Sal ary
Production (Patterns/Tooling):
Other Capital (Test Lab Upgrade)
Development
Other Expense (1-Oct - 3-Oct-13)
Professional Services
VFD
Heat exchanger
Alignment laser
Electrical contractor
Hydro upgrade
VFD for Heat Exhanger Pump Motor
Total
Face-to-Face meeting in Chesapeake
Suction Casings/Disch Casings (Steel)
Suction Casings/Disch Casings (Steel)
Brg Hsgs, Grease Covers, Oil Reservoir
$400,176.00
$298,977.00
Totals:
Travel
CONFIDENTIAL
Page 88
Example of a monthly project status report:

Project Description
Project Manager Ghassan Gebara
CAR # Sponsor G. Herrera
CORP Others ( SC+Prod Man+PM + Schai n + J Bandi 2681
Budget CORP ENG (Engi neeri ng/des Bethl ehem team 5621
CORP PEC (Engi neeri ng/drawPEC team 2898
Salary Expense
Non-Salary
Expense
TOTAL
Chargeback
Salary
Expense
Non-Salary
Expense
TOTAL R&D
Corp LPO Chesapeake J. Al l en & others 1541.5
2013 Budget $411,667 $18,822 $473,538 $890,000 $0 $890,000 $170,000 $650,000 $2,140,489 SPO Arganda J. Ji menez & others 323.5
2013 YTD $235,983 $8,821 $269,284 $665,586 $0 $665,586 $101,966 $699,153 $1,711,509 SPO Arnage R. Gui doni & others 88
2014 & Beyond $286,599 $59,000 $380,159 $26,059 $23,000 $49,059 $93,500 $2,051,000 $2,539,158 SPO Coi mbatore K. Sekar & others 751.5
(*) Corp Other (Prod Mgmt, gl obal SC, Marcom) sal ary & non sal ary expenses not i ncl uded (399k budget 2014) Total 13,904.50
(**) Capi tal spendi ng i ncl udes November 2013 actual s
Benefit Status
2013 2014 2015 2016 2017 Overal l G
Booki ngs (k$) RSX $0 $1,000 $10,500 $23,300 $28,800 Budget G
Revenue (k$) $0 $400 $10,000 $23,300 $28,800 Schedul e G
GM (k$) $0 $120 $3,000 $6,990 $8,640 Qual i ty G
Booki ngs (k$) WD
/ WDX / part NM
$11,500 $8,100 $4,100 $2,100 $1,000
Revenue (k$) $11,500 $8,100 $4,100 $2,100 $1,000
GM (k$) $2,875 $2,025 $1,025 $525 $250 Uni t GM Herrera, Gui l l ermo
Si te Control l er Fol ey, Al l an
Phase Gate Review Product Di rector Powers, Chuck
Gate 0 Gate 1 Gate 2 Gate 3 Gate 4 Engi neeri ng Di rector Phi l l i ps, Rob
Explore Plan & Specify Develop Validate Launch Regi onal P&L Owner Hal dorsen, Bjorn
Basel i ne Pl an Jan-13 Apr-13 May-13 Oct-13 March-14 Regi onal Control l er Pl att, Mal col m
Forecast Jan-13 March-13 Oct-13 Jul -14 Nov-14 Operati ons Presi dent Hendri cks, Bob
Actual Jan-13 March-13 Oct-13 Operati ons Control l er Pl att, Mal col m
Cost (Budget) $0 $229,099 $700,942 $3,237,933 $752,670 R&D VP Van Gemeren
Cost (Actual ) $0 $229,099 $700,942 $904,437 COO Pajonas, Tom
1
(>$1M)
(***) Phase 3 i ncl udes November 2013 actual s
Progress Summary
Red Flags (Issues requiring management decision / intervention)
As of 02-Dec-13, the total 2013 actual Capex spendi ng i s $699,153 (target i s $650,000); of whi ch $400,176 for tool i ng/patterns and $298,977 for test l ab
upgrade.
2
(>$500K, <$1M)
None
IPO R&D Monthly Review
October 2013
Gate Reviews
Tier
(Total Cost)
4
(< $100K)
3
(>$100K,
13-FSG-1405-NP-00001 CAR I ssue Date Mar-13
BUSINESS UNIT R&D CORP
PEC
Chargeback
CAPITAL TOTAL COSTS
Project Team
Rati onal i ze and update the i ndustri al ri ng secti on pump. Desi gn a rel i abl e, competi ti ve and effi ci ent pump. Product wi l l be l ow cost sourced,
l i mi ted i n materi al s for i nventory, and add mi ssi ng hydraul i cs
Role Name
Chargeback
Hours YTD
CHE-013 RSX (New Ring Section Pump)
**
* *
***
CONFIDENTIAL
Page 89

CONFIDENTIAL
Page 90
Content Overview
Introduction

CONFIDENTIAL
Page 91
The Closing Process Group consists of two processes that are intended to
end or close a project.

The primary purpose that these Closing processes are performed is to
authorize the project (or phase) to end.

The processes with dotted lines will be discussed in PM 201 and/or
PM301.

Close Project or
Phase
Close Procurement
CONFIDENTIAL
Page 92
Close Project or Phase (1 of 4)
Close Project or Phase is the process of finalizing all activities to formally
complete the project or phase

At project or phase closure, the following may occur:
Obtain acceptance by the customer or sponsor (i.e. Record of Decision),
Conduct post-project or phase-end review, (i.e. Gate Phase Review)
Record impacts of tailoring to any process,
Archive all relevant project documents
Close out procurements
Document lessons learned
Investigating use of FLS Engineering Central as depository for R&D project lessons learned
Celebrate project success

Gate review Record of
Decision constitute the
official close of the
phase
CONFIDENTIAL
Page 93
Lessons Learned
The purpose of lessons learned is to bring together any insights gained
during a project that can be usefully applied on future projects

Capturing those Lessons Learned
It is essential to capture lessons learned on your projects prior to releasing
resources and closing the project/phase

Lessons Learned should identify which elements of the project were
successfully managed and which ones presented challenges

Lessons can be captured by asking these questions:
What went right?
What went wrong?
What could have been better?

CONFIDENTIAL
Page 94
Arrange regular brainstorming (not BLAMEstorming) sessions with the
project team. Don't leave it until the end of the project when memories
have faded.

Review lessons learned at each phase gate. You can then compile the
information at the end of the project and develop a more comprehensive
lessons learned.

During your discussions:
Be positive
Do not place blame!
Focus on successes as well as challenges
Indicate which strategies contributed to success
Indicate which improvement strategies would have the greatest impact

CONFIDENTIAL
Page 95
Document and Share
It is important to document and share findings. The best way to do this is
by creating a lessons learned report

Lessons learned must be stored in a central repository with general access
(i.e. SharePoint)

Lessons learned are equally as important on cancelled projects as they are
on completed projects
CONFIDENTIAL
Page 96

CONFIDENTIAL
Page 97

Conclusion

CONFIDENTIAL
Page 98
Summary
Our 2013 R&D Portfolio currently includes (October 2013 Playbook):

Cost Estimated Benefits
~31 M Expense Budget ~1.5 B in 5 year revenue
~11 M Capital Budget ~507 M in 5 year gross profit

# Active Projects # Resources
296 452
Effective Project Management is a critical success factor in
delivering these projects on time, on budget, on scope and in
alignment with the customers expectations.
CONFIDENTIAL
Page 99
Portfolio Management Project Management
Resource Management Organizational Change
Management

Improve
Time to
Market
Provide financial analysis and
oversight of portfolio to
support investment
decisions, balancing
strategies and budget
adherence.
Define and manage the
R&D Project Management
Framework and supporting
technology solutions.

Define and oversee R&D Resource
Management processes (planning and actuals)
and supporting technology solutions.
Communicate, train and deploy
Portfolio Management, Project
Management and Resource
Management processes and
supporting technology solutions.
Build and facilitate R&D PM
user community and
promote best practices.
R&D PMO Vision:
Strategic Domains
Provide direct Project Management
services for select Tier 1/2 R&D Projects.
Provide Project Management mentoring
to R&D PM user community.
Improve R&D resource
visibility and utilization.
Cost

Risk
Revenue

Margin
Provide visibility and consistent
tracking of global portfolio of
approved R&D projects.
CONFIDENTIAL
Page 100
Project Management Community
Our vision is to create a Project Management community
across Flowserve where best practices and ideas can be
shared.
This training is a small step forward in that direction.
For Project Management mentoring and support, please
feel free to reach out to the following PMO leaders:
Christine Strobush Director, R&D PMO
Mark Algar Senior Program Manager
Ghassan Gebara Senior Project Manager
Bruce Baker - Senior Project Manager
Rohit Srinivas Project Manager

CONFIDENTIAL
Page 101
Assessment Survey
To access the assessment survey:
From Passport, select Manage My Career tab,
Log in to LMS.
Under Search, type:R&D PDP & PM101 Training Assessment
Select the Start button
CONFIDENTIAL
Page 102
Supporting Materials
CONFIDENTIAL
Page 103
The purpose of the survey was to identify the project management
knowledge areas that will need to be covered in this training.

The survey was sent to 576 employees who work on R&D projects, of
which, 79 (~14%) participants took the survey

Survey end period closed on Friday March 29
th
For those who took the survey, thank you!

Develop project charter , identify stakeholders (Initiation), and close
project or phase (Closing) appears to be the project management
communitys strengths.

Our biggest opportunity for improvement in how to manage and deliver
projects on time, on budget, and within scope is to provide training on the
knowledge areas that were rated higher for Somewhat Important
than Very Important. All the knowledge areas are very important to
project management.

CONFIDENTIAL
Page 104
Results of the survey. Highlighted in red the % of respondents who rated
each of the knowledge areas higher for Somewhat Important than Very
Important.

Project Management Training Survey
Target Audience = 576
Participants = 79
Process Groups Somewhat
Important
Very
Important
Comments
DEVELOP PROJECT CHARTER 32 49
IDENTIFY STAKEHOLDERS 38 44
DEVELOP PROJECT MANAGEMENT PLAN 43 45
COLLECT REQUIREMENTS 51 33
DEFINE SCOPE 39 51
CREATE WBS 49 30
DEFINE/SEQUENCE ACTIVITIES 53 33
ESTIMATE ACTIVITY RESOURCES 49 36
ESTIMATE ACTIVITY DURATIONS 45 38
DEVELOP SCHEDULE 39 43
DEVELOP HUMAN RESOURCE PLAN 39 33
ESTIMATE COSTS 50 38
DETERMINE BUDGET 41 42
PLAN QUALITY 39 36 Not covered in PM 101
PLAN COMMUNICATIONS 45 29
PLAN RISK MANAGEMENT 53 25
IDENTIFY RISKS 53 33
PERFORM QUALITATIVE/QUANTITATIVE RISK 42 24
PLAN RISK RESPONSES 51 18
PLAN PROCUREMENTS 42 24 Not covered in PM 101
DIRECT AND MANAGE PROJECT EXECUTION 49 36
PERFORM QUALITY ASSURANCE 44 28 Not covered in PM 101
ACQUIRE PROJECT TEAM 52 29
DEVELOP/MANAGE PROJECT TEAM 47 37
DISTRIBUTE INFORMATION 47 25
MANAGE STAKEHOLDER EXPECTATIONS 45 33
CONDUCT PROCUREMENTS 40 15 Not covered in PM 101
PERFORM INTEGRATED CHANGE CONTROL 52 31
VERIFY SCOPE 43 39
MONITOR & CONTROL SCOPE/SCHEDULE/COSTS 36 49
PERFORM QUALITY CONTROL 49 29 Not covered in PM 101
REPORT PERFORMANCE 51 25
MONITOR & CONTROL RISKS 51 25
ADMINISTER PROCUREMENTS 45 15 Not covered in PM 101
CLOSE PROJECT OR PHASE 36 43
CLOSE PROCUREMENTS 43 25

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