Professional Documents
Culture Documents
Class Roll
If you are NOT officially enrolled in this class, see me at break or at end of class tonight All students sign the sheet being passed around All students obtain and complete an information sheet turn in at class end
Agenda
Why are we here tonight? Expectations of the class, of me, of you Course mechanics how it all will work What is PM and Why is it important? Starting out with basic PM Homework 1 assigned
Open PM Discussion
Why are you in this class?
Those organizations that take project management seriously as a discipline, as a way of life, are likely to make it into the 21st century. Those that do not are likely to find themselves in good company with dinosaurs. (Tom Peters) In the new economy, all work is project work.
(Tom Peters; The Wow Project ;Fast Company, 24, 116)
Drives Innovation
In how individual contributor & management (mgmt) work is done In product
Why PM?
Increases sales
Improved quality Ability to be a price leader Differentiates your company The difference between a company and its competitor is the ability to execute. If your competitors are executing better than you are, theyre beating you in the here and nowExecution is the great unaddressed issue in the business world today. Its absence is the single biggest obstacle to success
Ram Charan & Larry Bossidy, Execution: The Discipline of Getting Things Done, 2002, Crown Business
Why PM?
In short:
Project Management (PM) strives to achieve success from entropy-driven chaos
Why Is PM Important?
A recent survey of technology projects in the United States by the Project Management Institute reveals some startling percentages:
5th - Explain Process: 3rd Apply 2nd Practice 1st Know 4th - Synthesize 3rd - Challenge 2nd - Listen 1st - Read
Examples
The right way (we hope) first One planned for crucial or difficult topics More as you require
In class assignment
Given information Do (use a tool, create a document, etc.)
Group-style work
Ask questions Help each other
You WILL NOT always have everything spelled out to you in checklist format Sometimes you will have to MAKE ASSUMPTIONS to fill in the missing pieces
I Expect of You
Do the readings Attend class
Be An Active Learner
Ask questions & challenge the instructor Actively participate in discussions & groups Speak up when you have a question or concern Satisfactorily complete (on time) all writing assignments, examinations, projects, homeworks & exams.
Syllabus Review
Syllabus is posted at course site on WebCT You are responsible for printing it if you want a printout You are responsible to keep up with revision updates
Syllabus Review
Course Objectives Teaching Team Textbook(s) Computer Use Homework Grading Calendar Attendance Academic Honesty Etc READ THE SYLLABUS
Syllabus Contd
Demonstrate knowledge of the concepts and principles of project management and economics Formulate and analyze project management and engineering economics problems Use project management and communications software Demonstrate knowledge of teamwork and interpersonal skills Process group work and the overall functioning of the course Demonstrate written and verbal skills Actively reflect on and process your learning in the course Apply concepts, principles, methods, algorithms, and heuristics
Syllabus Contd
Teaching Team
Office Hours: As Needed Instructor: Tim Eiler Office: CE 147 Phone 1: 612.327.1553 (cell) Phone 2: 952.446.1615 (home) Email 1: eiler012@umn.edu Email 2: timothy.eiler@gmacrfc.com
Teaching Assistant: Ryan Owen
Office: Office: Phone: 612.379.3251, 919.749.5580 (c Phone: 952.239.9349 ) Email: kmiec004@umn.edu Email: owen0138@umn.edu
Graphic Design, Web Development and Hosting, Software Development, Training, PM Consulting
Release Manager
ADC Telecommunications, Minnetonka, MN Microwave Network Systems, Houston, TX Rockwell Space Operations, Houston, TX
Managed broadband access equipment product development projects Managed microwave radio/radio network equipment development projects
Astronaut Instructor
PMP (Project Mgmt Professional) Certification Project Mgmt Institute (PMI) MBA University of Houston BS ME/IEOR University of Minnesota CTM Certification Toastmasters International National Board of Directors Triangle Fraternity
Syllabus Contd
Computer Use WebCT This course uses WebCT for disseminating and collecting information If you dont know how to use WebCT, contact the department office for further instructions MS-Project and Other Tools You will be required to perform work using MS-Project and other software applications If you do not now have access to MS-Project, please arrange to get it
Syllabus Contd
Calendar See Syllabus Shows week numbers and date of Monday of each week Explains lecture material to be covered in class week Identifies prep. reading assignments for each class: PMBOK 2004 edition Other Note that reading assignments and/or homework assignments may not seem 100% synchronous with lecture material Identifies work to be assigned in each class Identifies work to be submitted in each class (or week)
Academic Honesty
Expectation: All students are expected to complete coursework responsibilities with fairness and honesty. Definition: Scholastic dishonesty means plagiarizing; cheating on assignments or examinations; engaging in unauthorized collaboration on academic work; taking, acquiring, or using test materials without faculty permission; submitting false or incomplete records of academic achievement; acting alone or in cooperation with another to falsify records or to obtain dishonestly grades, honors, awards, or professional endorsement; altering forging , or misusing a University academic record; or fabricating or falsifying data, research procedures, or data analysis. Consequences: Scholastic dishonesty WILL result in disciplinary action. Within this course, a student responsible for scholastic dishonesty can be assigned a penalty up to and including an "F" or "N" for the course.
Reasonable Accommodation
If you have a special need that requires any additional reasonable accommodation, I encourage you to please see or contact me at any time
Contract Grading
To Receive an A To Receive a B To Receive a C
Abide by all Class Policies Actively engage in class discussions small group and whole class Submit 100% of homework Receive P grade on Problem/Solution Memo Receive P grade on Project Proposal Receive P grade on 100% quizzes and assignments given in class Receive a cumulative mean score of >= 90% for 2 exams Receive P grade on Project Plan Complete Writing Interview Form
Abide by all Class Policies Actively engage in class discussions small group and whole class Submit 100% of homework Receive P grade on Problem/Solution Memo Receive P grade on Project Proposal Receive P grade on 90% quizzes and assignments given in class Receive a cumulative mean score of >= 80% for 2 exams Receive P grade on Project Plan
Abide by all Class Policies Actively engage in class discussions small group Submit 100% of homework Receive P grade on Problem/Solution Memo Receive P grade on Project Proposal Receive P grade on 80% quizzes and assignments given in class Receive a cumulative mean score of >= 70% for 2 exams
NOTE: In cases of conflict between these slides and the syllabus, the syllabus will have precedence
Grading Contd
Assignments Exams 3 Quality Quantity
Mastery Learning you may, at my discretion only, resubmit homework NLT one week following receipt of graded work
Attendance
Incredibly important in a class of this type You lose much more than your grade by not coming I will be flexible with attendance and assignments IFF
Class Groups
Form groups of 6 Each person to collect contact information (phone, email, etc) from ALL 5 other people on the team also submit your groups info to me Class Group is your first line of defense. Call them 1st to:
Get info you need if you missed class Get help obtaining or using a tool Etc.
Class Group is your team for assignments If your group shrinks < 4 people, see me
Breaks
The literature says that classes should be broken up to have a break after roughly every 45-50 minutes of class. I assume youre all adults, though, and you can make your own choices and follow through on those choices. Do you want 1 or 2 breaks during each class period?
A multidisciplinary, systems perspective, along with a product focus A basic understanding of the context in which engineering is practiced, including:
Customer & societal needs/concerns, Economics & finance, The environment & its protection, The history of technology & society
Awareness of the boundaries of ones knowledge, along with an appreciation for other areas of knowledge & their interrelatedness with ones own expertise Awareness & appreciation of other cultures & their diversity, distinctiveness, & inherent value Commitment to teamwork, including extensive experience/understanding with team dynamics Good communication skills, including written, verbal, graphic, and listening High ethical standards (honesty, sense of personal and social responsibility, fairness, etc) An ability to think both critically and creatively, in both independent and cooperative modes Flexibility: the ability and willingness to adapt to rapid and/or major change Curiosity and the accompanying drive to learn continuously throughout ones career An ability to impart knowledge to others
[1]A Manifesto
for Global Engineering Education, Summary Report of the Engineering Futures Conference, January 22-23, 1997. The Boeing Company & Rensselaer Polytechnic Institute.
Writing as a Process
To succeed in these assignments, you will need to think of writing as a process, not a product. Be sure to follow the steps specified in the assignment for the purposes of this course. As you write in your career, you can find ways to adapt this basic process to the needs in your organization.
Even if you arent the decision maker, you will be a participant in some form same principles are used for many other types of decisions
What Is A Project?
A temporary endeavor undertaken to create a unique product or service
A Guide to the Project Management Body of Knowledge, Project Management Institute
A project is a one-time, multitask job with a definite starting point, definite ending point, a clearly defined scope of work, a budget, and (usually) a temporary team. Lewis (2000). a combination of human and nonhuman sources pulled together in a temporary organization to achieve a specified purpose. (Cleland and Kerzner, 1985; Nicholas, 1990)
Characteristics Of A Project?
Temporary, with specific endpoint Unique Specific Deliverable Specific Spending Limit Element of Risk (Typically) Involve groups, across organizational lines
TRIPLE CONSTRAINT
QUADRUPLE CONSTRAINT
Fundamental Tools
Fundamental tools for the new generation of engineers and project managers
Basic Thinking (Occams Razor) Systems/ systems thinking/ systems engineering Models Teamwork Quality
Execution
customer internal
Closure
Stakeholder Analysis
Network Diagram
Duration Estimation
Resource Assignment
Schedule
Comm Plan
Budget
Quality Plan
Admin Plan
Project Plan
Project Management
Project
Function 1
Function 2
Function n
Other
Program Management
Program
Project 1
Function 1
Project 2
Function 2
Project n
Function n
Other
Other
Feasibility,
Planning/Design,
Construction,
Turnover/Startup
G.D. 1993. Project management for engineering and construction. New York: McGraw-Hill.
Controlling
Measure project performance using record of planned & completed work Chart planned and completed milestones chart Chart monthly project costs Document agreements, meetings, telephone conversations Communicate regularly with team members
Stakeholder Analysis
Network Diagram
Duration Estimation
Resource Assignment
Schedule
Comm Plan
Budget
Quality Plan
Admin Plan
Project Plan
Accountability
Where Do Projects Come From? It is not only all about the customer It all starts with the customer!
Customers need Internal vs external customer
Where Do Projects Come From? So how does the customer tell the do-er what is needed (and constraints)? The Statement of Work (SOW)
SOW
Constraints
Procedural Methodology Materials
Documentation Rules
What documentation is required
Testing results Manufacturers literature Samples Product data Color selections Etc.
2.
3.
4.
Avanti Motor Corporation of America 19740 Inglewilde Dr Norcross, Georgia Mark Ross, Customer Representative
2.
Site work
2.1 Excavation Flat and compacted to support slab foundation and building 2.2 Landscaping Turf
3.
Concrete
3.1 Footing and Slab Poured, reinforced concrete 3.2 Parking lot and street edging Curb and gutter 3.3 Walls Precast, reinforced concrete
Transmittal
A memo that introduces/outlines/explains the material being sent (much like a fax cover sheet)
Homework 1
1. Genuinely and sincerely thank at least one person who performs routine cleaning maintenance on a building in which you work or live. Doing this activity in person is strongly recommended. If you choose to do this activity other than in person, you must include a copy of any correspondence you use to accomplish it. You must provide the name of this person and the building in which s/he works. You must also provide me with some way of remotely contacting this person (phone number or email address preferred). Submit via hardcopy Submit in next class (no late homework accepted) Your signature must be on the submitted version
Homework 1
2. Find 2 examples of SOWs to study and submit as part of the assignment. Answer the following questions: What is the expected outcome required by each SOW (describe briefly)? Were the formats similar? If not, what were some of the major differences between them? Was the content of each similar even if the formats were not? What were some of the similar content items? What were some of the different content items? Who (organization) wrote each SOW? Who was the SOW being given to do the work to develop the expected outcome (if you can tell)? Submit by hardcopy a copy of each SOW and the answers to the questions. Submit in next class (no late homework accepted)
User-Level Requirements
What is a User-Level Requirement?
I (the customer) want the output to do x I (the customer) want the output to be like y
Project Charter
Break into support groups In 10 minutes, create a project charter for the paper airplane project If you have a question the answer to which all groups might need to know, please ask it Turn in a copy of the charter with all group members names affixed
Requirements
Detailed description of the external perceptions of the desired outcome of project (triple constrainttransforming into quadruple constraint) Can be several levels or layers of requirements, each with successive levels of detailed (recommended) or tailored to a different audience (be careful). One of most reliable methods of ensuring project success is to have (& widely communicate) correctly & fully documented requirements
Requirements
Need to be clear, complete, reasonably detailed, cohesive, attainable, and testable Take care to involve as many of a projects stakeholders in requirements development as feasible. Anyone who could later derail the project should her/his expectations not be met should be included as a customer here. Quality Function Deployment (QFD) is a good tool for requirements development if you have available time to use it
Requirements Semantics
Will:
Used to indicate a factual statement or assumption This class will end This class will end on time
Shall:
Used to direct mandatory action The student shall complete the homework Synonyms include must, required to, necessary to
Should:
Used to request non-mandatory work The student should purchase supplementary reading materials
From where do the goals and objectives and then eval criteria - come? What manageable targets should the evaluation criteria cover? (hint: TC) Do they need to be approved once theyve been identified? If so, by whom?
Defining Requirements
Requirements are the detailed description of the external perceptions of the desired outcome of the project (triple constrainttransforming into quadruple constraint) Requirements need to be clear, complete, reasonably detailed, cohesive, attainable, and testable
Defining Requirements
One of the most reliable methods of ensuring project success is to have (and widely communicate) correctly and fully documented requirements Take care to involve as many of a projects stakeholders in requirements development as feasible. Anyone who could later derail the project should her/his expectations not be met should be included as a customer here. Quality Function Deployment (QFD)
ITERATIVE
Why? Because projects are progressively elaborated!
Reflective Listening
SOW, Requirements Documents, and charter (and other documents) talk to each other Acceptance Criteria how will the customer/you know when the project is done?
Requirements Analysis/Agreement
Review SOW, specs, drawings for completeness Document issues in Requests For Information (RFI) Get customer addendums and do it all again until youre satisfied
Organization Types
Differentiated by:
Whether PM coordination is vertical or horizontal How much authority a PM has
Composite: same as matrix, but there is a functional PM group Projectized: everyone reports to a PM (but) Mixed: Some projectized, some matrix
Staff
Staff
Staff
Staff
Project control
Drawbacks
lines of communication outside functional department slow technological breadth project rarely given high priority
Staff
Staff
Staff
Staff
Project control
In a Balanced Matrix, one staff is replaced by a PM In a Composite Matrix, PM has its own functional organization
Drawbacks
violation of the Unity of Command principle complexity of managing full set of projects conflict
Staff
Staff
Staff
Staff
Project control
There is likely to be a separate network of functional managers A Mixed Organization is a mix of projectized, matrix/functional
Drawbacks
Strong Matrix
Projectized
PM Authority
Little/None
Limited
Moderate/High
High/Total
Virtually None
0-25%
15-60%
50-95%
85-100%
Part-time
Part-time
Full-time
Full-time
Full-time
Common PM Titles
PM Admin Staff
Part-time, if any
Part-time, if any
Part-time, if any
Full-time
Full-time
Project Plan
Once the SOW and charter are available, PM begins the process of creating the Project Plan. The Project Plan is a document that essentially: Helps organize the project planning process Helps communicate project planning information Puts all project planning information into one, easily-obtained location Why is is important to have a PM process?
General Approach
technical and managerial approaches relationship to other projects deviations from standard practices
Contractual Aspects
agreements with clients and third parties reporting requirements technical specifications project review dates
Objectives
detailed description of projects deliverables project mission statement
Project Plan
Now that you know what a Project Plan is, is for, and what specific concept areas make up its contents, were going to move on. Keep those concepts in mind, however, as we move along. The tools you learn during the next few weeks feed the Project Plan (they become the contents).
What is a DELIVERABLE?
ID tangible, verifiable constituent components of deliverables (to facilitate performance measurement) Verify correctness of the decomposition
WBS Exercise
WBS Exercise
1. Create a WBS 2. Is this (at right) organized by project life cycle phase or by function?
1.0 Office Remodel Project 1.1 Procure
1.1.1 Procure Paint 1.1.2 Procure New Carpet 1.1.2.1 Request Bids 1.1.2.2 Purchase 1.1.2.3 Receive Carpet 1.1.3 Procure New Furniture
1.2 Prepare 3. What would 1.2.1 Remove Old Furniture happen when 1.2.2 Remove Old Carpet 1.2.3 Scrub Walls decomposing deliverables far in the 1.3 Install future? 1.3.1 Paint Walls
1.3.2 Install New Carpet 1.3.3 Move in New Furniture
WBS Exercise
1.0 Office Remodel Project
1.1 Procure
1.1.1 Procure Paint 1.1.3 Procure New Furniture
1.2 Prepare
1.1.1 Remove Old Furniture 1.1.3 Scrub Walls
1.3 Install
1.1.1 Paint Walls 1.1.3 Move In New Furniture
1.1.2 Procure New Carpet 1.1.2.1 Request Bids 1.1.2.2 Purchase 1.1.2.3 Receive Carpet
Network Diagrams
Ok, up to now youve learned to:
1. 2. 3. 4. 5. Receive the customer specification Officially start the project Get the requirements right Figure out who the project stakeholders are and what they want Break the work down
So now what?
Put the work into a flow/logical sequence Identify and assign resources Create a schedule plan
Network Diagrams
How does PM put activities in logical order?
Activities progressively dependent upon each other Start at the project end and work backward Start at the project start and work forward
Purpose
Gives schematic display of the logic relationships of project activities
Note: Sequence order NOT time order
Network Diagrams
The Language of Network Diagrams:
Task: specific work items that require resources Activity: Synonymous with task, but may also be task groups Event: Zero-time, zero-resource state resulting from completion of one or more predecessor activities Milestone: Zero-time, zero-resource marking point (significant progress, etc) Network: Diagram of nodes & lines (arrows) showing work flow logic Path: Series of connected activities between 2 or more nodes
Network Diagrams
Dependencies
Finish-Start: successor cant start until predecessor finishes Finish-Finish: successor cannot finish until predecessor finishes Start-Start: successor cant start until predecessor starts Start-Finish: successor cant finish until predecessor starts
AON vs AOA
AON = Activity on Node (Precedence Diagramming PDM) AOA = Activity on Arrow (Arrow Diagramming ADM)
How To:
Group (project team) activity One task per sticky note
Task name Task description Estimated duration (see estimating duration)
Arrange sticky notes in network diagram form Draw/string arrows to indicate dependencies Rearrange, add tasks as required
B) In Groups, estimate (write it) how long the work will take
(3 minutes)
How did your individual estimates compare to group estimates? Why? What strategies did you use to derive the estimates? Consistency of estimate
Responsibility Assignment
A next step beyond WBS for process of assignment of resources Must have a good catalog or database of resource capabilities Use functional managers to assign resources
Critical Path
Path that, if delayed, will delay completion of project The series of activities that determines project duration The longest path through the project Change in start or finish time of a critical task will affect project end
Critical Time
Time required to complete all activities on the critical path
Visual Method:
Find EVERY path Add each path Longest path is critical path
CPM Example
Task
a b c d e f g
Predecessor
--a b b c, d e
Duration
4 6 3 4 5 2 7
CPM - Practice
Slack
Since critical path activities cannot be delayed without causing the project to be delayed, it follows that activities not on the critical path CAN be delayed without delaying the project.
Slack
Critical Path activities have 0 slack The amount of time a non-critical path task may be delayed without delaying the project end (or internally to the network, a later task) is called slack or float.
Star t End 3 Task 1 3 Task 3 3 Task 2
Slack
Calculated by:
LST EST = LFT EFT = slack
Where:
LST = Latest Start Time EST = Earliest Start Time LFT = Latest Finish Time EFT = Earliest Finish Time
Displayed by:
EST EFT
Task
LST LFT
0
S T A R T
5 5 5
5 5
6
Task B
11 11
E N D
Forward Pass
Task A
0 5
6 11
Task C
Backward Pass
0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 10 9 11 10 12 11
Number Convention
PERT
PERT = Program Evaluation Review Technique Formula calculation using std dev of project completion date using weighted averages of the durations Uses 3 input estimates of duration to counter uncertainty in the individual activity durations (CPM only uses 1)
Low duration (fastest likely) Medium duration (most likely) High duration (longest likely)
PERT
Sometimes called Method of Moments Network Diagrams often mistakenly called PERT Charts Examples of projects in which PERT is good?
Questions
Knowing what you have learned up to this point in the course: What are some likely things that can cause project failure? (Impact, Probability) What are some things you can try as PM to overcome the possible, typical causes of project failure?
Scheduling
What is scheduling?
Bringing together as much information as is known at a given time regarding tasks, tasks sequence, and task durations
Scheduling
What is the purpose of scheduling?
Helps PM/Team determine project task order, time requirements, personnel requirements/choices, budget, etc. Whole project big picture Visual representation One Stop Convenience Monitor/Control
What If? Analysis Risk ID/Assessment
Scheduling
How is scheduling done?
What do we know already? What do we need to find out? How should we go about getting that info?
Scheduling
What do we know already?
Activities Identified (WBS) Activities Sequenced (Network diagram)
Scheduling
What do we need to find out?
Estimates of how long the tasks will take
Resource Planning
Who/What else could/should be involved?
Impacted by Organizational Structure Functional Managers? Expert Staff? Resource skills database? Other PMs? Historical records?
Scheduling
At what level should PMs schedule be?
Top-down estimation Bottom-up estimation
How do you think the organizational structure of the company affects this effort?
Responsibility Assignment
A next step beyond WBS for process of assignment of resources Must have a good catalog or database of resource capabilities Use functional managers to assign resources
Milestone Chart
Used as a high-level summary Typically Zero-Time Events Easier to understand for managers Sometimes also called Waterfall Diagram because of the way the milestones tend to flow downward over time in the chart Milestones may be events inside or outside schedule
Milestone Chart
CE 4101W-01: Spr 2005
Class start
Exam 1
Exam 2
Jan
Feb
Mar
Apr
May
Milestone Chart
CE 4101W-01: Fall 2003
Labor Day Class start 9/3 9/4
Exam 1
10/7
Exam 2
11/4 12/9
12/19
Sep
Oct
Nov
Dec
Jan
Gantt Chart
Used to represent the timing of tasks Column 1 = task, each additional column is a time period Each task on its own row Expected time for each task represented by a horizontal bar < Left end of the bar marks the expected beginning of the task > Right end of the bar marks the expected end of the task Tasks may run sequentially, in parallel, or overlapping Milestones (tasks with no time) may be included (represented by diamonds, triangles, etc)
Gantt Schedules
Task 1 Task 2 Task 3 Task 4 Task 5
10/7
t1
t2
t3
Gantt Schedules
Project progress is marked by filling in a task bar
Task 1 Task 2 Task 3 Task 4 Task 5
10/7 75%
t1
t2
t3
Scheduling - Practice
Break into support groupsIn 10 minutes: Draw two network diagrams (AON, AOA) Determine the critical path (CPM) Draw a Gantt AND a Modified Gantt chart
Project Management Resource Leveling Task 1 2 3 4 5 6 Duration 7 5 4 2 3 1 Resources 8 6 4 4 6 6 2 1, 3 2 5 Predecessor
Resource leveling
Any form of network analysis in which scheduling decisions are driven by resource management concerns (e.g. limited resource availability or difficult to manage changes in resource levels). Resource Histogram
Project Calendars
Project Scheduling Tools have the option of setting project calendars
Number of hours/workday Number of workdays/week Default setting is *usually* 7 8-hour days/week
Project Calendars
1. Why is it important to set your calendar for the correct days of the week, correct hours per day, and correct holidays? 2. How should overtime be factored into the project (tool) calendar?
Theory Of Constraints
What is it (TOC)?
Real systems must have at least one constraint a factor that limits the system from getting more of whatever it is trying to achieve To achieve more, one must manage the constraint(s) TOC models system as a chain. To improve strength of a chain, must identify weakest link & concentrate efforts on strengthening weakest link
Acrobat Docu
Theory Of Constraints
TOC Goals:
Increase system throughput Reduce work in process (WIP) Decrease costs Reduce lost income by achieving schedule prediction 90+% of time
Theory Of Constraints
Processes & Tools
Problem-solving tools - the Thinking Processes (TP) logically/systematically answer 3 questions needed for process of ongoing improvement: "What to change?", "To what to change?" & "How to cause the change?"; Daily management tools - taken from Thinking Processes - can be used to significantly improve vital management skills, such as communication, effecting change, team building and empowerment Proven solutions - created by applying Thinking Processes to specific application areas, such as production (as introduced in The Goal), distribution (Its Not Luck), Marketing/Sales (Its Not Luck), project management, & setting company direction, to name only a few.
Theory Of Constraints
How does it work?
1. Identify the System's constraints.
Analyze process to identify task/activity limiting system productivity
5. If a constraint has been broken in previous step, go back to step 1 but do not allow inertia to cause a new constraint
This sets up a process of ongoing improvement
Theory Of Constraints
How to identify constraints?
1. Look for bottlenecks 2. Can stem from physical constraints or policy constraints Physical: Machine, people, facilities, tangible sources Easier to identify and break Policy: Rules, training, measures (RTM) More difficult to identify and break
Critical Chain
Get realistic Commitments
Eliminate multi-tasking
Manage constraints
Manage Uncertainty
Critical Chain
Rules:
Aggressive estimates
Planned pad hierarchy Parkinsons Law Student Syndrome
Include dependencies other than time in management focus No multi-tasking on critical chain Relay-runner ethic/system Report early finishes Aggregate safety (buffers) and manage to the buffers
C.C. Task 1
C.C. Task 2
C.C. Task 3
C.C. Task 4
Project Buffer
End
crobat Docume
Communication Planning
What is Project Communication?
Exchanging project-specific information from sender to recipient Communication is best done when it is: Recipient-focused Done to serve an end
Communication Planning
What is Communications Planning?
Determining the information and communications needs of the stakeholders:
Who needs information? What information do they need? When will they need that information? What options do you have to give them the information and which way(s) are best?
Communication Planning
Whats the purpose of it? How is it done? Why not just do it on the fly instead of early/in the project planning stages? Does it change with scale (duration, cost, complexity) of project? Other scales?
Communication Planning
Who needs information?
Do internal stakeholders need more or different information than external stakeholders? Explain
Communication Planning
What data/information do they need?
Communication Planning
Communication Management Plan:
Methods/procedures for info collection/storage structure Details of data/info distribution structure for various data/info types Description of data/info to be distributed Schedules showing when each type of communication is anticipated to be produced Methods for accessing data/info between scheduled communications Methods for updating/refining the CMP over time
Communication Planning
When will they need that information? Before event During event After event Periodically vs. ad hoc
Communication Planning
What options do you have to give them the information and which way(s) are best? Reports Briefings Status meetings Email Others?
Communication Planning
What options do you have to give them the information and which way(s) are best? Reports Briefings Status meetings Email Others?
Transmittal
A memo that outlines/explains submittals included with the transmittal and the actions required by the recipient
Procurement Planning
Is it likely that you will be able to do all the work with internal resources?
Procurement Planning
Procurement Management Plan: Describes
how procurement process from solicitation planning through contract closeout will be managed
Types of contracts to be used If independent estimates to be used, who will prepare them and when If there is a procurement organization in your company, what actions PM/Project Team can take independently Where procurement documents can be found How each contractor will be managed How procurement processes will coordinate with other PM processes
Opportunity Cost
What is it?
The cost of making a trade-off
Why is important?
A well run business or project doesnt have a great deal of excess (i.e. unallocated) cash/other resources lying around Projects compete with one another for resources Goal is to optimize use of limited supply Requires making trade-offs
Cost/Benefit Analysis
Cost Benefit Analysis is a tool to evaluate options
Is it worth spending $5000 to crash a schedule and gain 5 days? Is it worth dropping a product feature from this software release in order to be able to achieve the baseline schedule release or would it be better to keep the feature and slip the scheduled release by 20 days?
You also need to know the acceptable target tradeoff range(s) if there are absolute values (otherwise, rely on relative comparisons)
I once caught a fish this big |
Why buy instead of leasing? Possibility of salvage value + value obtained from asset use being greater than amortized cost Tax advantages
Time & Material (T&M) Hybrid of cost reimbursement and fixed fee Purchase Order
Solicitation
1. Send bid/proposal request documents to prospective vendors
o Presumes you have a sufficient list of applicable vendors o Distribution may be direct, via bidder conference, via advertising, etc. o Bid & Quote used when selection based on price o Proposal used when other than price (tech skills, etc) paramount o Request for Bid (RFB), Invitation to Bid (IFB) o Request for Quote (RFQ), Invitation to Quote (IFQ) o Request for Proposal (RFP), Invitation for Proposal (IFP) o Include SOW, description of required response/response format, explanation of pro forma contract terms and agreement structure
Solicitation
2. Obtain bids/proposals from sellers 3. Evaluate bids/proposals & cycle thru SOW updates 4. Select bidder (based on criteria), negotiate, & award contract
Contracts
You are the owner of a small excavation contracting business that has a multi-year T&M contract with a customer. The contract specifies the rate of pay for personnel types on the project. 1. Qualify the risks you face related to management of the contract. 2. Qualify the risks the buyer faces.
Performance (specifications/quality)
Preach Teach Be an example Provide resources Seek never-ending improvement Follow Demings 14 points
1. 2.
Develop a Strong Customer Focus Continually Improve All Processes Identify Them Improve Them (Plan, Do Check, Act) Involve Employees Mobilize Both Data & Team Knowledge to Improve Decision Making
3. 4.
(The Memory Jogger: A Pocket Guide of Tools for Continuous Improvement and Effective Planning)
Six Sigma
Six Sigma
Objective:
A comprehensive and flexible system for achieving, sustaining, and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes. Encompasses a broad array of business best practices and skills (some advanced, some common sense) that are essential ingredients for success and growth. Applicable to all types of organizations As much about people excellence as technical excellence
Method:
There are many Six Sigma Ways. there is no fixed prescription Sort of a culmination/combination of various other systems
Six Sigma
ISO Standards
ISO standards (900x, 1400x, etc.) Objective:
Improve processes & reduce process variation
Method:
Tell me what youre going to do. Do it. Show me that you did it. Set requirements for process performance in various operational areas Company establishes process to comply with the ISO specifications Registrar evaluates company ISO system
ISO system meets/exceeds ISO standard, company is certified/registered ISO system does not meet/exceed, company goes back to previous step
Failures found during audits must be dealt with via a process established as part of the companys ISO system
Quality Circles
Objective:
Improve product quality by soliciting group input from workers (and sometimes customers and/or users) in order to improve product process, features, etc.
Method:
Bring teams together to brainstorm solutions to a problem, then implement the ones that seem logical, are generally desirable, and are economically feasible and see what happens.
Quality Tools
Quality Tools
Inspection Benchmarking Process flowcharting Run chart Histogram Scatter diagram Ishikawa Diagram Pareto analysis Fault-tree analysis/FMEA Control Charts (X-bar, R) Auditing Simulation (Monte Carlo, What-if) QFD
Procurement Planning
Is it likely that you will be able to do all the work with internal resources?
Procurement Planning
Procurement Management Plan: Describes
how procurement process from solicitation planning through contract closeout will be managed
Types of contracts to be used If independent estimates to be used, who will prepare them and when If there is a procurement organization in your company, what actions PM/Project Team can take independently Where procurement documents can be found How each contractor will be managed How procurement processes will coordinate with other PM processes
Opportunity Cost
What is it?
The cost of making a trade-off
Why is important?
A well run business or project doesnt have a great deal of excess (i.e. unallocated) cash/other resources lying around Projects compete with one another for resources Goal is to optimize use of limited supply Requires making trade-offs
Cost/Benefit Analysis
Cost Benefit Analysis is a tool to evaluate options
Is it worth spending $5000 to crash a schedule and gain 5 days? Is it worth dropping a product feature from this software release in order to be able to achieve the baseline schedule release or would it be better to keep the feature and slip the scheduled release by 20 days?
You also need to know the acceptable target tradeoff range(s) if there are absolute values (otherwise, rely on relative comparisons)
I once caught a fish this big |
Why buy instead of leasing? Possibility of salvage value + value obtained from asset use being greater than amortized cost Tax advantages
Time & Material (T&M) Hybrid of cost reimbursement and fixed fee Purchase Order
Solicitation
1. Send bid/proposal request documents to prospective vendors
o Presumes you have a sufficient list of applicable vendors o Distribution may be direct, via bidder conference, via advertising, etc. o Bid & Quote used when selection based on price o Proposal used when other than price (tech skills, etc) paramount o Request for Bid (RFB), Invitation to Bid (IFB) o Request for Quote (RFQ), Invitation to Quote (IFQ) o Request for Proposal (RFP), Invitation for Proposal (IFP) o Include SOW, description of required response/response format, explanation of pro forma contract terms and agreement structure
Solicitation
2. Obtain bids/proposals from sellers 3. Evaluate bids/proposals & cycle thru SOW updates 4. Select bidder (based on criteria), negotiate, & award contract
Contracts
You are the owner of a small excavation contracting business that has a multi-year T&M contract with a customer. The contract specifies the rate of pay for personnel types on the project. 1. Qualify the risks you face related to management of the contract. 2. Qualify the risks the buyer faces.
Performance (specifications/quality)
Preach Teach Be an example Provide resources Seek never-ending improvement Follow Demings 14 points
1. 2.
Develop a Strong Customer Focus Continually Improve All Processes Identify Them Improve Them (Plan, Do Check, Act) Involve Employees Mobilize Both Data & Team Knowledge to Improve Decision Making
3. 4.
(The Memory Jogger: A Pocket Guide of Tools for Continuous Improvement and Effective Planning)
Six Sigma
Six Sigma
Objective:
A comprehensive and flexible system for achieving, sustaining, and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes. Encompasses a broad array of business best practices and skills (some advanced, some common sense) that are essential ingredients for success and growth. Applicable to all types of organizations As much about people excellence as technical excellence
Method:
There are many Six Sigma Ways. there is no fixed prescription Sort of a culmination/combination of various other systems
Six Sigma
ISO Standards
ISO standards (900x, 1400x, etc.) Objective:
Improve processes & reduce process variation
Method:
Tell me what youre going to do. Do it. Show me that you did it. Set requirements for process performance in various operational areas Company establishes process to comply with the ISO specifications Registrar evaluates company ISO system
ISO system meets/exceeds ISO standard, company is certified/registered ISO system does not meet/exceed, company goes back to previous step
Failures found during audits must be dealt with via a process established as part of the companys ISO system
Quality Circles
Objective:
Improve product quality by soliciting group input from workers (and sometimes customers and/or users) in order to improve product process, features, etc.
Method:
Bring teams together to brainstorm solutions to a problem, then implement the ones that seem logical, are generally desirable, and are economically feasible and see what happens.
Quality Tools
Quality Tools
Inspection Benchmarking Process flowcharting Run chart Histogram Scatter diagram Ishikawa Diagram Pareto analysis Fault-tree analysis/FMEA Control Charts (X-bar, R) Auditing Simulation (Monte Carlo, What-if) QFD
ISO Standards
ISO standards (900x, 1400x, etc.) Objective:
Improve processes & reduce process variation
Method:
Tell me what youre going to do. Do it. Show me that you did it. Set requirements for process performance in various operational areas Company establishes process to comply with the ISO specifications Registrar evaluates company ISO system
ISO system meets/exceeds ISO standard, company is certified/registered ISO system does not meet/exceed, company goes back to previous step
Failures found during audits must be dealt with via a process established as part of the companys ISO system
Quality Circles
Objective:
Improve product quality by soliciting group input from workers (and sometimes customers and/or users) in order to improve product process, features, etc.
Method:
Bring teams together to brainstorm solutions to a problem, then implement the ones that seem logical, are generally desirable, and are economically feasible and see what happens.
Quality Tools
Quality Tools
Inspection Benchmarking Process flowcharting Run chart Histogram Scatter diagram Ishikawa Diagram Pareto analysis Fault-tree analysis/FMEA Control Charts (X-bar, R) Auditing Simulation (Monte Carlo, What-if) QFD
Inspection
Inspection
OLD WAY: Check at the end of a process to see if it meets specified parameters. Throw away or rework (and check again) output that doesnt meet specifications.
Benchmarking
Systematized, planned method of looking at processes other than the one in which youre interested to
a) b) Compare the process in question to the comparable processes Find out new ways to make the process in question better (Best Practices)
Be very careful with benchmarkingIt seems easy, but without proper analysis, it is very easy to fool oneself into thinking that a = b = c and that is NOT ALWAYS THE CASE.
Flowcharting
Cant improve a process until all understand and agree what the process actually is Flowchart is a model of the process Improvement can come in the form of:
Whole team working in concert rather than against each other Make changes to the process steps Eliminate Shorten Rearrange Step B Start Step A
End
Pareto Analysis
The 80/20 chart Used to determine priorities May be able to determine what you can do to fix the problem directly from this chart May need to subsequently use other tools to figure out what to fix Once youve corrected the first priority problem, may need to go through subsequent rounds
Defects
Ishikawa Diagram
Also known as Cause & Effect Diagram, Fishbone Diagram
The process of chart creation is itself useful (discussion that causes people to learn) Helps keep focus on issue at hand, reducing complaints & irrelevant discussion Results in an active search for the cause Data often must be collected for study Demonstrates the level of understandingmore complex the diagram, the more sophisticated the users are about the process Problem Agnostic
Major Cause 3
Major Cause 4
Study causes and effects of failures Focuses thinking on system functioning and interaction of system component parts Define all ways that a system can fail
A.1
A.2
A.3
Allows assignment of risk factors to the possible faults Next probable step is a Pareto
Histogram
Trend analysis
Scatter Plot
Trend analysis Should use some statistical validation as well as visual
Youll never eradicate variation(average will get in your way), but see Deming point 5
Process Auditing
Auditing
Independent, objective review of the effectiveness of a system Process Product System Management Identify whether process failure is common cause or special cause Provide for tracking of appropriate corrective actions to process Everyone dislikes being criticized, but REMEMBER that the audit function is intended to help the company be better at what it does.
Being better can mean a competitive advantage (cha-ching) or, as in most cases, it can simply mean that you are able to remain competitive (like the ante into a poker game). Dont hate the auditorunless he comes to deserve it!
Simulation
Set up models of a process or situation and vary parameters to see what outcome will be after simulating what might happen What if Analysis
Once the model is established and verified, varying a parameter by a specified amount and see what happens to the outcome parameter(s)
Control Methods
Product Planning
Product Design
Process Planning
Project Budgeting
Its hard to predict, especially the future Niels Bohr Life is what happens when youre making other plans John Lennon
If its so hard to predict and everything is already obsolete by the time its on paper, why budget?
Project Budgeting
Budgets are plans for allocating organizational resources to project activities
Must forecast required resources, quantities needed, when needed, and costs
Budgets can be used as tool by upper management to monitor and guide projects
- We anticipated spending $100M by this time. How much did we actually spend?
ZBB:
Throw out last years budget Start over with a total replanning effort using more distinct, factual analysis
Disadvantages
May miss a material, though small-appearing, item
Project Budgeting
How Top-Down Budgeting works (a very, very basic example): WBS Task 2.0 Design 3.0 Concrete 4.0 Frame 5.0 Electrical Cost $50,000 $500,000 $200,000 $ 75,000
Bottom Up Budgeting
WBS identifies elemental tasks Those responsible for executing these tasks estimate resource requirements Technical Estimation Time & Cost Estimation Advantage
More accuracy from detailed lower-level analysis
Disadvantage
Tedious, long Not focused on larger picture; can get lost in details GIGO
Project Budgeting
How Bottom-Up Budgeting works (a very, very basic example): WBS Task 2.0 Design
2.1 Site Survey 2.2 Architectural Design 2.3 Drafting
Cost $44,160
$ 7,680 $24,000 $12,480
3.0 Concrete
3.1 Excavation 3.2 Pour Concrete 3.3 Test Concrete
4.0 Frame
4.1 Arrange Materials 4.2 Erect Walls
5.0 Electrical
5.1 Arrange Materials 5.2 Run Circuit Wiring 5.3 Test Electrical Systems
Levels of Estimate
ROM = Rough Order of Magnitude (~20% accurate, 10 minutes) System Estimate (~10% accurate, 1 day) Unit Estimate (~5% accurate, 1-3 weeks)
ENR - Building Cost Index History How ENR builds the Index: 66.38 hours of skilled labor at the 20-city average of bricklayers, carpenters and structural ironworkers rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20-city price from 1996, plus 1.128 tons of Portland cement at the 20-city price, plus 1,088 board.ft of 2X4 lumber at the 20-city price (cwt = hundred weight. 45.36 kg, 0.04536 tons).
YEAR 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 YEAR 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 YEAR JAN 1609 1740 1895 2015 2184 2311 2402 2410 2440 2515 JAN 2574 2615 2664 2720 2784 2886 3071 3112 3127 3332 JAN FEB 1617 1740 1894 2016 2198 2348 2407 2414 2446 2510 FEB 2576 2608 2668 2716 2775 2886 3106 3111 3131 3333 FEB MAR 1620 1750 1915 2014 2192 2352 2412 2406 2447 2518 MAR 2586 2612 2673 2715 2799 2915 3116 3103 3135 3323 MAR APR 1621 1749 1899 2064 2197 2347 2422 2405 2458 2523 APR 2591 2615 2676 2709 2809 2976 3127 3100 3148 3364 APR MAY 1652 1753 1888 2076 2199 2351 2419 2411 2479 2524 MAY 2592 2616 2691 2723 2828 3071 3125 3096 3161 3377 MAY JUN 1663 1809 1916 2080 2225 2388 2417 2429 2493 2525 JUN 2595 2623 2715 2733 2838 3066 3115 3095 3178 3396 JUN JUL 1696 1829 1950 2106 2258 2414 2418 2448 2499 2538 JUL 2598 2627 2716 2757 2845 3038 3107 3114 3190 3392 JUL AUG 1705 1849 1971 2131 2259 2428 2428 2442 2498 2557 AUG 2611 2637 2716 2792 2854 3014 3109 3121 3223 3385 AUG SEP 1720 1900 1976 2154 2263 2430 2430 2441 2504 2564 SEP 2612 2660 2730 2785 2857 3009 3116 3109 3246 3378 SEP OCT 1721 1900 1976 2151 2262 2416 2424 2441 2511 2569 OCT 2612 2662 2728 2786 2867 3016 3116 3117 3284 3372 OCT NOV 1732 1901 2000 2181 2268 2419 2421 2446 2511 2564 NOV 2616 2665 2730 2791 2873 3029 3109 3131 3304 3350 NOV DEC 1734 1909 2017 2178 2297 2406 2408 2439 2511 2589 DEC 2617 2669 2720 2784 2875 3046 3110 3128 3311 3370 DEC AVER 1674 1819 1941 2097 2234 2384 2417 2428 2483 2541 AVER 2598 2634 2702 2751 2834 2996 3111 3111 3203 3364 AVER
Estimating Expertise
There is no evidence of mystical inborn talent for cost- estimating. Expertise is not a universal phenomenon, but rather very project-specific. The most crucial attributes of good estimators are knowledge and care. Good estimators have exactly the same attributes as good gamblers: they research selectively and thoroughly. they weigh each decision against possible outcomes & behave accordingly Different building types demand different approaches. Special attention is required for complexity of the project. The easiest projects to estimate are the industrial factories and residential houses. Office construction projects are hardest to estimate, due to design/option variety
Skitmore, R.M., Stradling, S.G., & Tuohy, A.P. 1994. Human effects in early stage contract price forecasting. IEEE Transactions on Engineering Management, 41 (1), 29-39.
Hybrid Budgeting
Best of both Top-down and Bottom-up mixed Can be conflict (in fact, you want it) If you have the time and the expertise available, this is, IN MY OPINION, the best approach
4 i% FV
4
$PV
FV
1
FV2
FV
5
PV =
FV
1 = (1+i)n
FV (1+i)n
Compounding
What is it?
Why is important?
Group Work
Use Timeline Method: How much money will be your return at the end of 5 years with 5% annual interest on a deposit of $500 How would the situation change if you had a second investment of $250 in the third year? How would the formulaic calculation change? Think of 3 specific examples when you might need to know the concept of PV/FV and how to calculate it.
Annuity
What is it?
A series of equal payments at fixed intervals for a specified number of periods E.G. marketing tells you that Project X, of which youll be the PM, will generate $1M per year for 5 years starting at project release in January 2005
How is it calculated?
FVAn = PMT/(1+i) + PMT/(1+i)2 + + PMT/(1+i)t = PMT
n t=1
1/(1+i)t
Annuity
Example
0 i%
Promise to pay $1000/year for 3 years. If you were to receive this money and invest it with a 4% return, how much would you have at the end of 3 years?
1 i% 2 i% 3
$1000
$1000
$1000
i= t= n= PMT =
Answer?
Why is it important?
Couldnt we just do an FV analysis on a $5M payback at the end of 5 years in the 5 year, $5M project example? In the example above, what amount of money would you want to receive now to be able to turn down the $1000/year for 3 year deal?
(FVt / (1+i)t) - I
FVt = incremental, after tax net cash flow in year t I = the investment (capital outlay), which is assumed to all happen in year 0) NPV > 0 is good (project or activity may be chosen)
Depreciation
Paying the equipment
Suppose you buy a machine for $100k, use it for 5 years to do your thing, and then scrap it. The cost of the work produced by the machine must include a charge for the machine (depreciation). As depreciation increases, net income decreases Unlike paying the staff, depreciation is NOT a cash charge cash flows are not decreased Depreciation actually increases cash flow!!!
Methods
Straight Line Double declining balance Sum of the years digits Accelerated Cost Recovery System (ACRS) Modified Accelerated Cost Recovery System (MACRS)
Depreciation
Straight Line Method
(Purchase Amount Salvage Value) / Depreciation life Depreciation Life determined by the estimated useful life of the asset Salvage Value = value the asset is expected to have at end of depreciation life
Purchase Value
Year 1
Year 2
Year 3
Year 4
MACRS Continued
21.5 and 31.5 year class property uses straight line method 3, 5, 7, 10 year class property uses accelerated method in table below (or alternative straight line method for very small businesses)
Ownership year 1 2 3 4 5 6 7 8 9 10 11 3 33% 45 15 7 5 20% 32 19 12 11 6 7 14% 25 17 13 9 9 9 4 10 10% 18 14 12 9 7 7 7 7 6 3
MACRS Continued
Half-year convention: Assumes property put in service in middle of first year extends recovery period by one more year (3 year class property is depreciated over 4 years)
Depreciable basis: Purchase price + shipping and installation costs [NOTE: NO classes allow salvage value as part of depreciable basis]
Salvage Value: Add the difference of (actual sale price undepreciated value) to normal operating income for taxation at the normal rate E.G. - $100k equipment with 5 year class life sold at end of year 4 for $25k $25,000 ($100,000(.11+.06)) = $8000 to add to operating income
MACRS Example
Excellanz buys a computer for $150k. It requires an additional $15k for delivery and $15k for installation. The company expects to be able to sell the equipment for $25k at the end of the straight line depreciable life. What is the depreciable basis?
What is the depreciation for each year and the total depreciation?
Baselines
What is a baseline?
snapshot of project schedule, cost (budget), or scope
Homework 4
Posted via WebCT Project Control and Configuration Mgmt Risk Mgmt Project Budgeting Due 7/18 via hardcopy Work in support groups (only)
Simulation
Set up models of a process or situation and vary parameters to see what outcome will be after simulating what might happen What if Analysis
Once the model is established and verified, varying a parameter by a specified amount and see what happens to the outcome parameter(s)
Risk Management
What is it?
Risk is anything that affects triple constraint objectives
Risk Management
Why do it?
The future is uncertain When those unplanned, unplannable good or bad things happen to a project, the PM must be ready to deal with them and their consequences in order to meet the triple/quadruple constraint
Risk Management
How do you manage risks?
Initiate the process, Identify the risks, Assess/analyze the risks, Organize (rank) the risks, Plan responses to the important risks, Implement the RMP (Risk Management Plan),
Monitoring Reporting Responding
Review (cyclical)
Risk Management
Risk Identifier
Helps you track the risk Helps you communicate the risk May be nothing more than a sequential system May be something other than sequential What do you do with the risk ID when the risk goes away?
Critical person lost time injury Fire damages structure Rain delay to critical path task 1. 2. 3. Fire damages structure
1. 2. 3.
Risk Management
Risk (Identification)
Something that affects triple constraint objectives
Negative Positive (Examples?)
Measurable/Quantifiable is best, but sometimes there will be qualifiable-only risks Risks can be identified with use of many tools, methods
Project Plan, Network Diagram, Schedule, Policies, Expert Opinion, Historical Information, WBS, FMEA, etc.
Risk Management
Probability of risk occurrence (P) How likely is the risk event? Can be classified by judgment Can be classified by statistical tools
Risk Management
Impact if risk occurs (I) What will happen if the risk event occurs? Can be classified by judgment Can be classified by statistical tools
Risk Management
Risk Rank
You cant have everythingwhere would you put it? PxI Group all the equally ranked items together There can be multiple 1, 2, 3, etc. If multiple 1s, 2s, etc, can rank inside each group (use time of likely occurrence, relative impact, etc) May have to go through several rounds of successively detailed analysis to get top (10, 20, 50, 75, 100)
Risk Management
Risk Owner
Handles monitoring & responding (within constraints) Why doesnt the PM just do the risk monitoring? Who can the PM assign to be a risk monitor?
Risk Management
Monitoring Plan
How/what will you/r team watch to see if the risk may be happening? Discuss some examples
Risk Management
Response Strategy
Avoid: Do something to ensure risk wont occur (100% mitigation) Mitigate: Accept that risk might happen, but do something to alleviate the either/both the P or I if it does Accept: Whats left when theres nothing feasible to do
Accept
Mitigate
Avoid
Risk Management
Response Plan
What do you intend to do if the risk starts happening/happens? In outline form things change too rapidly, frequently to warrant more
Risk Management
Example:
Project: Create a lighted sign for a new building into which an engineering forensics company will be moving in 2 months. RMP creation example/discussion
Risk Management
In support groups: Project: Build a four-car garage Constraints: Cost not to exceed $10,000, Construction to be completed NLT 2 months from project initiation Complete an RMP with 10 risks. At least 3 must be cost-related, 3 must be qualityrelated, and 4 must be schedule-related
Schedule Management
How can you use a project schedule to actually manage (not just plan) a project?
How do you collect status from the people doing the work? GIGO Reporting/data gathering systems use of % complete
Schedule Compression
Scheduling is extremely iterative process
In fact, changes during last few days are likely! Management always wants it done faster and/or cheaper!
Schedule Compression
Scope Modification
Eliminate task(s) Shrink work required to do particular task(s) Not always viable why not?
Schedule Compression
Crashing
Add more resources to shorten time required to do the work (1+1=2)
Schedule Compression
Fast Tracking
Reworking task sequencing so more activities are done in parallel rather than sequentially
Not always feasible/viable option why not? Often results in rework Increases risk (often dramatically) Increases confusion
Schedule Compression
Can we agree that getting the project done late (after pre-agreed time) is BAD? Is it BAD to come in ahead of schedule:
By a little bit? By a lot? Why/Why not?
Configuration Management
What is it?
Establish revision control and change control methods Similar to baseline
Why is it done?
Communication keeping everyone on the same page Limit unnecessary scope creep Change impact estimation Work billing
Configuration Management
How does it work?
Written process (per project, per company, etc) Identify change possibility (acceptable person?) If CR accepted, evaluate Decide outcome of change If outcome is to proceed,
create/publish ECN Update plan information
Configuration Management
This page intentionally left blank
Do you suppose your (PM) manager will just say go at it and let me know when youre done?
Compounding
What is it?
Why is important?
4 i% FV
4
$PV
FV
1
FV2
FV
5
PV =
FV
1 = (1+i)n
FV (1+i)n
Group Work
Use Timeline Method: How much money will be your return at the end of 5 years with 5% annual interest on a deposit of $500 How would the situation change if you had a second investment of $250 in the third year? How would the formulaic calculation change? Think of 3 specific examples when you might need to know the concept of PV/FV and how to calculate it.
Annuity
What is it?
A series of equal payments at fixed intervals for a specified number of periods E.G. marketing tells you that Project X, of which youll be the PM, will generate $1M per year for 5 years starting at project release in January 2005
How is it calculated?
FVAn = PMT/(1+i) + PMT/(1+i)2 + + PMT/(1+i)t = PMT
n t=1
1/(1+i)t
Annuity
Example
0 i%
Promise to pay $1000/year for 3 years. If you were to receive this money and invest it with a 4% return, how much would you have at the end of 3 years?
1 i% 2 i% 3
$1000
$1000
$1000
i= t= n= PMT =
Answer?
Why is it important?
Couldnt we just do an FV analysis on a $5M payback at the end of 5 years in the 5 year, $5M project example? In the example above, what amount of money would you want to receive now to be able to turn down the $1000/year for 3 year deal?
(FVt / (1+i)t) - I
FVt = incremental, after tax net cash flow in year t I = the investment (capital outlay), which is assumed to all happen in year 0) NPV > 0 is good (project or activity may be chosen)
Depreciation
Paying the equipment
Suppose you buy a machine for $100k, use it for 5 years to do your thing, and then scrap it. The cost of the work produced by the machine must include a charge for the machine (depreciation). As depreciation increases, net income decreases Unlike paying the staff, depreciation is NOT a cash charge cash flows are not decreased Depreciation actually increases cash flow!!!
Methods
Straight Line Double declining balance Sum of the years digits Accelerated Cost Recovery System (ACRS) Modified Accelerated Cost Recovery System (MACRS)
Depreciation
Straight Line Method
(Purchase Amount Salvage Value) / Depreciation life Depreciation Life determined by the estimated useful life of the asset Salvage Value = value the asset is expected to have at end of depreciation life
Purchase Value
Year 1
Year 2
Year 3
Year 4
MACRS Continued
21.5 and 31.5 year class property uses straight line method 3, 5, 7, 10 year class property uses accelerated method in table below (or alternative straight line method for very small businesses)
Ownership year 1 2 3 4 5 6 7 8 9 10 11 3 33% 45 15 7 5 20% 32 19 12 11 6 7 14% 25 17 13 9 9 9 4 10 10% 18 14 12 9 7 7 7 7 6 3
MACRS Continued
Half-year convention: Assumes property put in service in middle of first year extends recovery period by one more year (3 year class property is depreciated over 4 years)
Depreciable basis: Purchase price + shipping and installation costs [NOTE: NO classes allow salvage value as part of depreciable basis]
Salvage Value: Add the difference of (actual sale price undepreciated value) to normal operating income for taxation at the normal rate E.G. - $100k equipment with 5 year class life sold at end of year 4 for $25k $25,000 ($100,000(.11+.06)) = $8000 to add to operating income
SL Example
Excellanz buys a computer for $150k. It requires an additional $15k for delivery and $15k for installation. The company expects to be able to sell the equipment for $25k at the end of the straight line depreciable life. What is the depreciable basis?
What is the depreciation for each year and the total depreciation?
Baselines
What is a baseline?
snapshot of project schedule, cost (budget), or scope
Earned Value
Earned Value Management
Performance measurement system:
A methodology used to measure & communicate the real, physical progress of a project.
Earned Value
Earned Value Management
How it works:
We plan how we will accomplish a task(s) How long it will take Resources required Estimated costs We spend time and materials in completing a task. If we are efficient, we complete task with time to spare & minimum wasted materials. If we are inefficient, we take longer than planned and waste materials. Take a snapshot of the project and calculate EV metrics to: Compare planned vs actual and use that to make a subjective assessment of progress Extrapolate the information to estimate future costs & probable completion date
Earned Value
Planned Value (PV aka BCWS)
Budgets for each activity planned (Portion of cost estimate planned to be spent on an activity during a given period)
Cost Variance (CV) = EV AC Schedule Variance (SV) = EV PV Cost Performance Index (CPI) = EV/AC (CPI < 1 is bad) Schedule Performance Index (SPI) = EV/PV (SPI < 1 is bad) Estimate at Completion (EAC) = ACWP + ((BAC-BWCP)/CPI)
Bob, When a customer-affecting release does not go as planned, you need to call the appropriate Account Manager to let her know that it failed, even if you don't yet know why that happened. They need to know so that they can decide what communication is needed with the customer's business contacts to smooth feathers, etc. This is particularly critical now as we try to assuage hurt customer feelings so that we can keep relationships with them alive for loan purchases. Depending on the impact scope, of course, you probably don't need to call them seconds after the failure or anything, but they do need to know fairly soon. After you've let them know about the initial failure, as you learn more and have updates to status and correction plans and progress, call them again as judgment dictates. Even if the failure is corrected fairly quickly, you should let them know it occurred so they can be aware of what happened. Essentially, after any customer-affecting release, call them to let them know an executive summary of how it went - success or failure. I'm assuming, given the time of day most releases happen, that they will each want to be called at their desk phones, with you leaving voice mail, but you need to work that out with each of them individually, and probably for individual releases, as well. You also need to call me to let me know of the failure, though I have less need for late night calls about correction plans and progress. I can generally, depending on the impact of the failure, of course, wait until morning to know about correction plans and progress. Calls to my cell, with voice mail left if I don't answer, are what I need. Overall, the goal is to rationally over communicate this information - while not being passive-aggressive, of course. :-) Tim
Transmittal
A memo that outlines/explains submittals included with the transmittal and the actions required by the recipient
Managing
Is the plan right? Are things going as they should? If not, how far off are we? Does it need changes? What do we need to do to be where we need to be? What changes or corrections are needed? When do the changes need to be made? Who on the project team needs to make course corrections in order to achieve the plan?
Iterate!
Managing
What do you watch?
How often?
How?
In order to make sense out of leading project teams, you need to understand the concept of team, the concept of lead, and the concept of manage.
Begin With an End in Mind: Mind: Put First Things First: First: Think Win/Win: Win/Win:
Start with a clear destination to understand where you are now, where you're going, & what you value most. Manage yourself. Organize & execute around priorities.
See life as a cooperative, not a competitive arena where success is not achieved at the expense or exclusion of the success of others. Understand then be understood to build the skills of empathic listening that inspires openness and trust. Apply the principles of cooperative creativity and value differences.
Preserving and enhancing your greatest asset, yourself, by renewing the physical, spiritual, mental and social/emotional dimensions of your nature.
Leadership vs Management
Is there a difference?
Leadership vs Management
LEADERSHIP FUNCTIONS MANAGEMENT FUNCTIONS Assessing Organizational Performance Aligning Organizational Practices with Values & Vision Altering Organizational Practices & Standards Initiating Organizational Improvements Facilitating Quality Interactions Integrating Organizational Systems & Processes Educating for Quality Performance Tracking Operational Performance Aligning Operations with Customers' Values Maintaining Operational Practices & Standards Implementing Operational Plans & Projects Solving Operational Problems Procuring Operational Resources Accounting for Resource Performance
Leadership vs Management
Czarniawska-Joerges & Wolff (1991) Spreitzer & Quinn (1996) Zaleznik (1977, 1992)
Leaders do the right things people as great assets commitment outcomes what and why things could be done sharing information networks Symbolic performance, expressing the hope of control over destiny Transformational Energize the system, their working environment is often chaotic Provide proper conditions for the people to manage themselves. Vision, inspiration, courage, human relationships, profound knowledge. Give people purpose, push the boundaries, need vision and ability to articulate it. Create change and ensure that others embrace it. The word lead means to go from leaders tend to take their followers from one place to another. Help others do the things they know need to be done to achieve a common vision. Innovation Leadership is a relationship selecting, motivating, coaching, building trust.
Managers do things right people as liabilities control rules how things should be done compliance secrecy formal authority (hierarchy) Introducing order by coordinating flows of things & people toward collective action Transactional Ensure the stability of the system
Concerned with controlling conditions and others. Allocate resources, design work methods, create procedures, set objectives and create priorities. Accomplish work through others, follow the rules, rely on legitimate power. Change when they have to. The word manage means to handle.
Get things done through other people. Conformity Management is a function planning, budgeting, evaluating, facilitating.
http://www.bus.ualberta.ca/rfield/papers/LeadershipDefined.htm
Organizing
Team building Establishing team structure and reporting assignments Define team policies, rules and protocols Motivation Conflict management Interpersonal skills Appreciation of team members' strengths and weaknesses Reward systems Project review techniques Meeting skills
Leading
Controlling
James M. Kouzes & Barry Z. Posner. 1993. Credibility: How leaders gain and lose it, why people demand it. San Francisco: Jossey-Bass.
1. They have enthusiasm 2. They have high tolerance for ambiguity 3. They possess high coalition and team-building skills 4. They have client-customer orientation 5. They have a business orientation
Graham, Robert J. & Englund, Randall L. 1997. Creating an environment for successful projects. San Francisco: Jossey-Bass
Power Tools
5 Types of Power for Leaders and Managers
Type Formal Expert Referent Reward People do what you ask because Organization tells them to You are perceived as an expert in x They like or trust you You can give them something in return
Situational!!
People hate meetings. People think meetings are a waste of time The sad part is that most of them are
You will spend a good portion of your work in meetings. Fool people make them gain respect for you by making your meetings an EFFECTIVE use of their time
Purpose is unclear Participants are unprepared Key people are absent or missing The conversation veers off track Participants dont discuss issue but instead dominate, argue, or take no part at all Meeting decisions not followed up
If meeting is held to address a specific issue, restrict meeting to this issue alone Ensure everyone properly prepared
Distribute written agenda in advance of meeting Tell where and when State and repeat the objective of the meeting
Avoid excessive formality Chair and participants control Meeting use groundrules
DURING Start: Check-in, Review agenda, Set/review ground rules, Clarify roles Conduct: Cover one item at a time, Manage discussions,
Maintain focus & pace Close: Summarize decisions, Review action items, Solicit agenda items for next meeting, Review time & place for next meeting, Evaluate the meeting, Thank participants
AFTER Follow-up: Distribute or post meeting notes promptly, File agendas, notes,
& other documents, Do and/or check up on action items/assignments.
Groupthink Groups without conflict where there is a strong norm of Concurrence Seeking
Avoiding Groupthink
1. Know the Symptoms of Groupthink
Overestimation of the Group
Illusion of invulnerability Belief in group morality
Closed Mindedness
Rationalization Stereotyping Outgroups
Avoiding Groupthink
2. Strategies for avoiding Groupthink Promote an open climate Avoid the isolation of the team Appoint critical evaluators Avoid being too directive
Controversy
Controversy exists when one persons ideas, information, conclusions, theories, and opinions are incompatible with those of another person and the two seek to reach an agreement.
Controversy
. . . Controversy is a great thing. Unfortunately, controversy gets a bad rap. Most people scurry about their lives trying to avoid controversy, avoiding disagreements with others, avoiding messy debates. . .Our world is awash in controversy. And rightly so. . . We need it. We need to discuss controversial subjects. We need to settle differences of opinion. . . Acknowledging and resolving issues that divide us is a good thing. Its what separates us from the apes. . .
Vernon Felton, Frame of Mind -- Bike, 8 (4), May 2001
Managing Conflict
The work life of a project manager is a life of conflict. Although conflict is not necessarily bad, it is an issue that has to be resolved by the project manager. Without excellent negotiation skills, the project manager has little chance for success.
Taylor, J. 1998. A survival guide for project managers. AMACON.
Managing Controversy
Mitigating The Bad Effects of Controversy
Cooperative Context
Positive Interdependence Commitment to a
Common Goal Individual and Group Accountability Face-to-Face Promotive Interaction Teamwork Skills Group Processing
Managing Controversy
Rules for Constructive Controversy
1. I am critical of ideas, not people. I challenge & refute the ideas of the opposing group, but I do not personally reject them. 2. I remember that we are all in this together, sink or swim. I focus on coming to the best decision possible, not on winning. 3. I encourage everyone to participate & to master all relevant info. 4. I listen to everyones ideas, even if I dont agree. 5. I restate what someone has said if it is not clear. 6. I first try to bring out all the ideas & facts supporting both sides, and then I try to put them together in a way that makes sense. 7. I try to understand all sides of the issue. 8. I change my mind when evidence clearly indicates I should
Managing Conflict
Strategies for Dealing With Conflict Withdrawing: Neither the goal nor the relationship are important
- withdraw from the interaction.
Compromising: Both task & relationship important but there is lack of time - you both gain and lose something. Confronting: Task & relationship are equally important.
- define conflict as a problem-solving situation and resolve through negotiation.
Managing Conflict
Which strategies do effective team members use? Ineffective team members? Under what conditions are each of these conflict strategies important? What words and phrases are needed to set up each strategy?
Managing Conflict
Blake & Mouton Conflict Model
- Importance of the Goal - Importance of the Relationship
Managing Conflict
Heuristics for dealing with conflicts: 1. Do not withdraw from or ignore the conflict. 2. Do not engage in "win-lose" negotiations. 3. Assess for smoothing. 4. Compromise when time is short. 5. Confront to begin problem-solving negotiations. 6. Use your sense of humor.
Managing Conflict
A confrontation is the direct expression of one's view of the conflict and one's feelings about it while inviting the opposition to do the same. Suggested guidelines for confrontation are: 1. No "hit-and-run": confront only when there is time to jointly define the conflict and schedule a negotiating session. 2. Openly communicate: express feelings about & perceptions of issues involved in the conflict, & try to do so in minimally threatening ways. 3. Seek 1st to understand: accurately & fully comprehend opponent's views of the feelings about the conflict. A successful confrontation sets up opportunity to negotiate.
Managing Conflict
Skilled Disagreement
1. Define Decision as a mutual problem, not as a winlose situation. 2. Be critical of ideas, not people (Confirm others' competence while disagreeing with their positions). 3. Separate one's personal worth from others' reactions to one's ideas. 4. Differentiate before trying to integrate. 5. Take others' perspectives before refuting their ideas. 6. Give everyone a fair hearing. 7. Follow the canons of rational argument.
Managing Conflict
Escalation of Conflicts Strategies for Resolving
Informal Negotiation Formal Negotiation Mediation Third-Party Mediation Arbitration Binding Arbitration Litigation
Managing Conflict
Negotiation is a conflict resolution process by which people who want to come to an agreement, but disagree about the way to resolve, try to work out a settlement.
Managing Conflict
Recommended steps in conflict negotiation: 1. Define the conflict mutually. 2. Communicate feelings and positions. 3. Communicate cooperative intentions. 4. Take the other person's perspective. 5. Coordinate the motivation to negotiate. 6. Reach agreement satisfactory to both sides -SEEK WIN-WIN OR DONT NEGOTIATE.
Managing Conflict
Negotiating Guidelines 4 Steps in Principled Negotiation
1. Separate the people from the problem 2. Focus on interests, not positions 3. Create options 4. Insist on standards
Fisher & Ury - Getting to Yes
Managing Conflict
1.
Promoting Controversy Present Viewpoints. 2. Highlight Disagreements. 3. Be Impartial and Rational. 4. Require Critical Evaluation. 5. Assign Devils Advocate Role. 6. Use Advocacy Subgroups 7. Have Second Chance Meetings
John Vomhof Jr. Staff Writer, The Business Journal 8/25/2005 There were 80 fatal work-related injuries recorded in the state in 2004, the Minnesota Department of Labor & Industry reported Thursday. That is up from 72 in 2003, and one less than in 2002. The state averaged 74 work-related deaths from 1999 to 2003. In 2004, the agriculture industry recorded the most worker fatalities, with 18; the industry had 19 deaths in 2003 and 21 in 2002. Construction had 16 fatalities in 2004, an increase from 10 in 2003 and 15 in 2002. Nine government workers were fatally injured in 2004, up from three in 2003, but down from 12 in 2002. Transportation incidents accounted for 29 of the 80 work-related deaths in 2004. That compares to 30 in 2003 and 44 in 2002. Contact with objects and equipment led to 18 fatalities in 2004, while assaults and violent acts killed 11. Falls also led to 11 work-related deaths. Women accounted for seven of the 80 people fatally injured on the job in 2004. The Census of Fatal Occupational Injuries is conducted annually by the U.S. Department of Labor's Bureau of Labor Statistics. There were a total of 5,703 fatal work injuries recorded nationwide in 2004.
Falls Transportation Contact with Objects, Equipment Harmful Substances, Environment Violence Other
377
V iolence
283
Harm ful
200
C ontact
186
Transp.
32
Falls
29
100
200
300
400
Death rate per 100,000 workers Disabling injury rate per 1,000 workers
What can PMs do to minimize risks and make the workplace safer?
Ethics Outline
What is ethics?
Definition Fundamentals Codes of ethics
What Is Ethics??
Ethics provide a systematized framework for making decisions where values conflict
Systems of ethics are used to guide our decision-making and behavior in human-to-human relationships
Systems of Ethics
There are many systems of ethics The two major theories:
Decisions are made on the basis of the consequences of an act or decision Decisions are made on the basis of the morality of acts (is act right or wrong?)
Utility Theory
Attributed to Mill Balance between good and bad consequences. Utilitarianism - acts should always maximize utility.
Duty Theory
Attributed to Kant Duties - honesty, fairness, commitment, gratitude, ...... Duties
show respect for others, express moral imperatives, and are universal.
Virtues Theory
Attributed to Aristotle Moral virtues represent a balance between extremes between excess and deficiency in conduct, emotion, desire and attitude.
Ethics in Practice
Treat others as you would want them to treat you Engineering ethics is important in
interpersonal relationships developing products and facilities impacting future generations......
Ethics in Practice
If a builder builds a house for man and does not make its construction firm and the house collapses and causes the death of the owner of the house - that builder shall be put to death. it destroys property, he shall restore whatever is destroyed, and because he did not make the house firm he shall rebuild the house which collapsed at his own expense. If a builder builds a house for a man and does not make its construction meet the requirement and a wall falls - that builder shall strengthen the wall at his own expense.
The Code of Hammurabi (2250 BCE)
PM Ethics
Preamble: In the pursuit of the PM profession, it is vital that PMI
members conduct their work in an ethical manner in order to earn & maintain the confidence of team members, colleagues, employees, employers, clients, the public, & the global community
Engineering Ethics
Engineers, in the fulfillment of their professional duties, shall:
Hold paramount the safety, health and welfare of the public. Perform services only in areas of their competence. Issue public statements only in an objective and truthful manner. Act for each employer or client as faithful agents or trustees. Avoid deceptive acts. Conduct themselves honorably, responsibly, ethically, and lawfully so as to enhance the honor, reputation, and usefulness of the profession.
2. 3. 4.
5. 6.
Ethics EvaluationTests
Is it honorable (would you hide this action from anyone)? Is it honest (does it betray a trust)? Does it fall within your area of competence? Does it avoid a conflict of interest (will your judgment be biased)? Is it fair (does it violate the legitimate interests of others)? Is it considerate (does it violate privacy or confidentiality)? Is it conservative (in terms of time and resources required)?
You're sitting across from a peer of yours, who is also a good friend on a professional level, who you know is trying to get a small business up and running "on the side." You already have recognized that he is, frankly, not the highest performer. Over the past several weeks, you have also noticed that he is doing things for his business while at work. Today, you notice that he has been holding a phone call with someone about his side business (not chatting, but actually conducting business) and that call is now just into the start of the second hour. What do you do?
You are attending a conference in the U.S. as a representative of your company. A supplier passes out a small electronic gadget, valued at about $40, to everyone at the meeting. What do you do? 1. Accept the thoughtful gesture since the gift is valued under $50, there is no need to report it. 2. Accept the gift, but be sure and report it to your manager. If your manager tells you to return it, you are required to comply. 3. Accept the gift, if declining puts you or the company in a awkward position. Then, immediately consult the Ethics Office for disposition. 4. Politely refuse to accept the gift.
(Ethics Challenge -- Case 6)
You work in Quality Assurance. You rejected some parts as nonconforming to specifications, but your manager told you to accept the part As Is. You dont agree with the decision. What do you do? a) Do nothing. Its the managers decision to make. b) Discuss it with your manager. c) Call the Ethics HelpLine. d) Ask the engineers who are responsible for the specification to clarify the situation.
(Ethics Challenge -- Case 18)
Employees in the department have noticed that your supervisor spends a good portion of his day doing homework for a company-sponsored college course. He also spends a significant amount of time making phone calls that they suspect are personal, and may be made a company expense. What should you do? a) Tell the employees to just do their work & mind their own business. b) Tell the employees that you dont want to risk your job by becoming involved. c) Suggest that your fellow employees contact the Ethics Officer or another company official. d) Raise the issue directly with your supervisor.
(Ethics Challenge -- Case 24)
In a department meeting, your supervisor takes credit for some excellent work done by an absent colleague. What do you do? a) Put the word out to your fellow workers as to who really did the work. b) Seek a private meeting with the supervisor in order to make sure your colleague gets proper credit. c) During an informal conversation with the big boss, casually let it slip that your colleague did not get the credit he deserved on a recent project. d) Inform your colleague as to what took place, and let him take whatever action he desires.
(Ethics Challenge -- Case 29)
A co-worker is injured on the job. You are a witness and what you saw reflects poorly on the company. What do you do? a) Dont get involved b) Contact the injured co-worker and offer to testify on her behalf. c) Report what you saw to the company. d) Protect the company by refusing to testify as a witness for the injured person.
When a particular male supervisor talks to any female employee, he always addresses her as Sweetie. You have overheard him use this term several times. As the supervisors manager, what should you do? a) Nothing, since no one has complained. b) Talk to the supervisor and explain that, while he may have only good intentions, his use of Sweetie could be offensive to employees and must stop. c) Order the supervisor to call an all-hands meeting to discuss the company policy on sexual harassment. d) At the next staff meeting, remind all supervisors of their obligation to maintain a professional work environment, free of discrimination or harassment of any kind.
(Ethics Challenge -- Case 42)
You work in Production Control. You plan to add a porch to your house, and you visit a lumberyard to get ideas and a price. During the discussion, the sales manager says, Oh, you work for the XYZ company. They buy a lot from us, so Im going to give you a special discount. What do you do? a) Like finding a $20 bill on the street, take the discount. When you get back to the office on Monday, ask the supervisor if all employees were eligible for the discount. b) Say I work for a different division of the XYZ Company am I still eligible for the discount? c) Ask for clarification Is that special discount available to all XYZ employees? d) If a deal sounds too good to be true, it probably is.
(Ethics Challenge -- Case 44)
A subordinate (direct report) on one of your projects has trouble getting along with others. What do you do? a) Dont get involved. b) Confront the worker, indicating what needs to change, how it needs to change, how you will monitor for improvement, and working with the employee to come up with solutions, etc. c) Report what you saw to your manager. d) Protect the company by documenting the problem.
As a senior research scientist, you receive a research paper for peer review. The paper essentially duplicates research you are writing for publication. If this paper is published before your paper you will be scooped in the profession. Christmas holidays are coming and you had planned to use the free time to complete your paper and submit it for open literature review. Reviewing the competing paper will take valuable time, and allowing it to be published first will drastically affect your career. What do you do? a) Without reading the paper, and knowing its contents could affect your conclusions, you return the manuscript to the journal editor, explaining your situation. Then you quickly finalize your paper and submit it. Let Christmas holidays conveniently delay the review, then provide negative review comments, knowing that this will delay publication. With the editors permission, contact the other author to see if you might combine efforts and produce an even better paper. Review the paper, provide objective comments and return it promptly.
b) c) d)
Ethics Summary
As an engineer, you have a duty to protect the safety of workers and the public As an engineer, you also have a duty to respect the interests/desires of your employer or client At times, these two goals may be at odds Having a basis on which to evaluate the ethics of decisions is extremely important
Project Closure
Also known as:
Project Termination Project Administrative Closure Project Feedback Project Audit
Why should this be a formal, pre-planned activity rather than just an ad hoc, deal with it as it happens situation?
Project Closure
Closure activities?
Verify product/service output Closeout financial system Gather lessons learned Update records Complete final project performance reporting Archive records
Closure results/outputs?
Project Closure/Formal Acceptance Lessons Learned Documents Project Archives Released Resources
Project Closure
Verify product/service output Does/Did it do everything you said it would? As judged by the CUSTOMER Partly objective judgment based on hard metrics Is the customer satisfied? As judged by the CUSTOMER Partly subjective judgment What might make customer dissatisfied even though the objective evidence says it was good?
Project Closure
Complete final project performance reporting Analyze, document, and report success and effectiveness of project
Project Closure
Closure results/outputs?
Project Closure/Formal Acceptance
Last minute documents to customer
As Builts Manuals
Lessons Learned Documents Project Archives Released Resources Final resources need formal leave from the project The PM can check out but can never leave
PM Miscellaneous - PMI
Project Management Institute (PMI) and Various Engineering Discipline Institutes Valuable education and extra insight Help make you that extra bit competitive Benchmarking opportunity Networking, Networking, Networking
PM Miscellaneous - PMMM
Project Management Maturity Model (PMMM) Organizations with a solid project management infrastructure achieve an average of 20 % improvements in productivity, customer satisfaction, cost reductions, & ROI.
From "The Value of Project Management in Organizations," a report based on research conducted by Project Management Solutions Inc. & The Center for Business Practices
PM Miscellaneous - PMMM
Project Management Maturity Model (PMMM)
Progressive development of an enterprise-wide project management approach, methodology, strategy, and decision-making process. Appropriate level of maturity will vary by organization based on specific goals, strategies, resource capabilities, scope, needs, etc. Maturity to which an organization should strive is determined during a detailed assessment conducted by a professional PM consulting team. The organization has achieved full project management maturity when it has met the requirements and standards for project management effectiveness as defined by the Project Management Maturity Model and can demonstrate improvements like organizational efficiency, on-time project delivery, cost control/controlled cost reductions, and profitability.
My PM Words To Live By
Learn how your business works!
How the business makes money How what you do contributes to making money How you can do things better to make money How you can avoid doing things that will hurt other parts of the business ability to make money
My PM Words To Live By
In order to win the game, you must score more than your opponent. Knowing that even the best athlete only scores a certain percentage of the times s/he makes an attempt, to increase the number of points s/he scores, s/he must take more shots and/or improve her/his skills. Those are the only choices available. A new player, particularly one without a great deal of natural talent, can improve his/her percent of shots scored to shots taken through diligent practice. Practice with the help of an experienced coach can increase the percentage even further. There comes a point where the athlete will score fewer and fewer additional points for every hour spent practicing (the law of diminishing returns). Her/his gains from learning fall off more and more drastically. That doesnt mean the athlete should stop practicing! It only means s/he needs to find another way of increasing the chances of scoring. Short of cheating or only playing against drastically inferior opponents, the sole, honest remaining other way to score more is to make more attempts!
My PM Words To Live By
Be honest, always Be straightforward, always Dont be afraid to admit youre wrong Take your work seriously, not yourself Dont let your fears get in the way of progress Learn to understand and be proficient at politics Remember *everyone* on your team even a small, innocuous thing like a piece of foam can destroy a complex machine like the space shuttle