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AdvancedProjectManagementFall 2005Project Control & ReportingProject Management and Training

Advanced Project ManagementFall 2005Advanced Project Management (formerly MSSB)Course Title:Advanced Project Management (MSSB)Course Code:CPHDate:Location:Instructor(s):AFTER SUCCESSFUL COMPLETION OF THIS COURSE, THE CLASSPARTICIPANT WILL BE ABLE TO: Identify project team roles and method of project conflict resolution Plan and estimate percent complete for schedule and budget management Identify methods for schedule compression and/or recovery Develop Risk Management Plans Identify methods for budget and scheduling estimates Develop a resource histogram and balance resources Perform Earned Value analysis on an actively tracked project plan Successfully pass the Learning Assessment at the end of the courseResources / Manuals used:WSDOT Executive Order 1032.00E “Project Management”, dated July 1, 2005.WSDOT. “Project Management Process” training manual, 2005.WSDOT. “Intro to Project Scheduling” training manual 2005.WSDOT. “A Policy for Cost Risk Assessment”, dated August 2005.Project Management Institute. A Guide to the Project Management Body of Knowledge,3rd Edition (PMBOK Guide). Project Management Institute, Inc. 2004.Harold Kerzner, Ph.D. Project Management, A Systems Approach to Planning,Scheduling, and Controlling, 8th Edition. John Wiley & Sons, Inc. 2000.Velociteach. The PMP Exam, 2005 Edition. Andy Crowe, PMP. 2004.International Institute for Learning (IIL). Advance Project Risk Management” trainingmanual, version 4.0. International Institute of Learning, Inc. 2004iIntroduction

Advanced Project ManagementFall 2005Table of ContentsMODULE 1 – GENERAL PROJECT MANAGEMENT THEORY & SKILL . 1PROJECT MANAGEMENT BODY OF KNOWLEDGE . 1THE PROJECT TEAM . 2ORGANIZATIONAL INFLUENCES AND STRUCTURE . 5POWER . 7CONFLICT MANAGEMENT. 8TEAM ROLES . 9MODULE 1 REFERENCES . 12MODULE 1 EXERCISE . 13MODULE 2 – WSDOT PROJECT MANAGEMENT OVERVIEW . 15PROJECT MANAGEMENT POLICY . 15PROJECT MANAGEMENT PLAN . 20PROJECT PERFORMANCE BASELINE MANAGEMENT . 20MODULE 2 REFERENCES . 22MODULE 2 EXERCISE . 23MODULE 3 – SCHEDULE MANAGEMENT . 25SCHEDULE TERMINOLOGY & DEFINITIONS . 25SCHEDULE TRACKING . 29SCHEDULE RECOVERY / SCHEDULE COMPRESSION . 30MODULE 3 REFERENCES . 32MODULE 3 EXERCISE . 33MODULE 4 – RISK PLANNING & RISK MANAGEMENT . 35RISK DEFINITIONS . 35RISK TOLERANCE . 35WSDOT RISK POLICY . 37RISK PLANNING PROCESS . 38EXERCISE – RISK IDENTIFICATION . 39EXERCISE – RISK ANALYSIS USING 2X2 MATRIX (CONTINUATION OF EARLIER EXERCISE RESULTS) . 42EXERCISE – RISK RESPONSE DEVELOPMENT. 47RISK MONITORING & CONTROL . 48EXERCISE – MONTE CARLO SIMULATION . 49MODULE 4 REFERENCES . 50MODULE 5 – RESOURCE PLANNING. 51RESOURCE ESTIMATING . 51RESOURCE HISTOGRAM . 51RESOURCE CONFLICT AND BALANCING . 52MODULE 5 REFERENCES . 54MODULE 5 EXERCISE . 55MODULE 6 – BUDGET MANAGEMENT . 57BUDGET DEVELOPMENT . 57COST BUDGETING. 58COST CONTROL . 58MODULE 6 REFERENCES . 68MODULE 6 EXERCISE – EARNED VALUE AND RECOVERY METHODS. 69Introductionii

Advanced Project ManagementFall 2005AcknowledgementsPatrick Forza, PMP – Project Control & ReportingPatty Mutton, PMP – Project Control & ReportingStuart Anderson – Cost Risk Estimating & ManagementBill Elliott – OR Project Management OfficeiiiIntroduction

Advanced Project ManagementFall 2005(This page intentionally left blank)Introductioniv

Advanced Project ManagementFall 2005Module 1 – General Project Management Theory & SkillProject Management Body of KnowledgeWhile terminology may vary, the principles of project management are consistent. A projectmanager needs more than tools to succeed in delivering quality projects on time and withinbudget. Project managers with the knowledge and skill to lead a team toward a common goalwill optimize team member talents to the best benefit of the team.Project ManagementBody of KnowledgeApplication AreaKnowledge,Standards, owledge &SkillsUnderstandingthe ProjectEnvironmentPMBOK Guide, 3rd EditionThe Project Management Body of Knowledge (PMBOK) Guide describes the work planningprocess as defining and refining objectives and selecting the best alternative courses ofaction. There are many tools and techniques unique to project management; such as workbreakdown structures, critical path, or earned value. These tools and techniques alone are notsufficient without effective project management knowledge and skills. The project teammust recognize and use knowledge and skills from at least five areas of expertise:The Project Management Body of KnowledgeKnowledge unique to the project management field and overlaps other managementdisciplines.Application area knowledge, standards, and regulationsProject categories with common elements but not necessary in all projects1Module 1 – General Management Theory & Skill

Advanced Project Management Functional and supporting disciplines - legal, inventory management,personnel, traffic, right-of-way, environmental, etc. Technical elements – software development or ENGINEERING Management specializations – government contracting, new productdevelopment Industry groups – automotive, chemical, agriculture.Fall 2005Each of these areas typically have there own set of accepted standards and practices.Understanding the project environmentThe team needs to understand the positive and/or negative cultural, political, socialand environmental impacts the project may have and how people (customers,stakeholders, etc.) may affect the project.General management knowledge and skillsPlanning, organizing, staffing, controlling ongoing operations; including strategicplanning, accounting, procurement, human resources, information technology, etc.Interpersonal skillsEffective communication, getting things done, leadership, motivation, conflictmanagement, and problem solving.Each of these areas may appear to be discrete elements, but they generally overlap. It is notrequired that every team member be an expert in all five areas, the combined knowledge ofthe team leads to an effectively managed project.The Project TeamOrganization planning is a process that is primarily concerned with identifying and assigningroles and responsibilities for the project. Everyone on a project has a function or role and aresponsibility assigned to that role or function. It is important for the Project Manager toidentify these roles and help influence these team members in order to keep the projectrunning smoothly and ensuring project success.Identifying and defining these roles is a vital part of the “Initiate and Align” step of theproject management process.Module 1 – General Management Theory & Skill2

Advanced Project ManagementFall 2005Stakeholders ponsorSr. Mgmt.ProjectManagerƒManagersProject Team MembersFigure 1-1Project ManagerThe project manager is ultimately responsible for the project. This person usesorganizational resources to accomplish the project objectives. The project manager is“large and in charge” for the project. The project manager leads each step in theproject management process.Project SponsorThe sponsor and the project manager are the “owners” of the project. Usually, theproject sponsor will come from senior management, but can be the customer in somecases. The project sponsor is the person or group responsible for providing thefinancial resources (funding) for the projectSenior Management (Executive Management)Senior managers are the people above the project manager within an organization.Senior management will prioritize projects in the organization. Senior managementwill Initiate the project, which is the formal recognition that a project exists. Seniormanagers delegate project responsibilities and authority to the project manager.It is also senior management’s role to create a productive environment for the project,and to review and endorse the project management plan.Functional ManagerThe functional manager manages the specialty or specific resources required to createdeliverables required for the project. Project managers will coordinate and negotiatewith the functional managers for the resources needed for the project. Functionalmanagers are often involved in project planning and setting priorities for the project.3Module 1 – General Management Theory & Skill

Advanced Project ManagementFall 2005Project Team MemberThe group of individuals that is performing the work required for the project andproject delivery.StakeholderA project stakeholder is anyone with a particularly significant interest in the project’soutcome including those providing funding or right of way for the project andproperty owners who are affected by the project. Stakeholders are unique for eachproject and include anyone actively involved in the project and whose interests maybe positively or negatively affected by the execution or completion of the project. Astakeholder may also exert influence over the project and its deliverables.A project manager must manage stakeholder expectations, which can be difficultbecause stakeholders often have different or even conflicting objectives for theproject. A Project Manager will need to work with the project team and perform akey stakeholder analysis. Key stakeholders are those stakeholders who have a directimpact on project success. Maintaining effective communication with keystakeholders is vital to project success.CustomerThe person or organization that will acquire or use the project’s product, service, orresult.Organizational Breakdown Structure (OBS)An Organization Breakdown Structure (OBS) is a hierarchical organized depiction ofthe project organization arranged so as to relate the work packages to the performingorganizational units (functional managers). This is an effective tool for defining rolesand responsibilities and facilitates the development of the Project CommunicationPlan. ponsorSr. Mgmt.QS RProjectManagerƒManagerTeamMemberƒ TeamMemberFigure 1-2Module 1 – General Management Theory & Skill4

Advanced Project ManagementFall 2005Responsibility Assignment Matrix (RAM)RoleWBS ItemWBS Deliverable 1Project ManagerFunctional Manager AFunctional Manager BFunctional Manager CFunctional Manager DFunctional Manager EFunctional Manager FFunctional Manager GFunctional Manager HFunctional Manager JFunctional Manager KFunctional Manager LFunctional Manager MFunctional Manager NFunctional Manager PA Responsibility Assignment Matrix (RAM) is a tool that relates the project OBS tothe project Work Breakdown Structure (WBS). It is used to help ensure that eachcomponent of the project’s scope is assigned to a responsible team or person.RSWBS Deliverable 2WBS Deliverable 3PAS RRAIIWBS Deliverable 4WBS Deliverable 5A SSRAWBS Deliverable 6RWBS Deliverable 7R SISIISASAP - Participant; A – Accountable; R – Review; I – Input Required; S – Signature RequiredFigure 1-3Organizational Influences and StructureProjects are typically part of an organization that is larger than the project. Examples oforganizations include corporations, governmental agencies, healthcare institutions,international bodies, professional associations, and others.Project based organizations are those whose operations consist primarily of projects. Theseorganizations fall into two categories: Organizations that derive their revenue primarily from performing projects for othersunder contract (i.e. architectural firms, engineering firms, consultants, constructioncontractors, and government contractors). Organizations that have adopted management by projects. These organizationsusually have a management system in place to facilitate project management.The structure of an organization often constrains the availability of resources.5Module 1 – General Management Theory & Skill

Advanced Project ManagementOrg Structure Fall BalancedStrongProject Mgr’sAuthorityLittle or NoneLimitedLow to ModerateModerate to HighHigh to AlmostTotalResourceAvailabilityLittle or NoneLimitedLow to ModerateModerate to HighHigh to AlmostTotalWho controlsproject ct ManagerProject ManagerProject l-timeProject MgrAdmin PMBOK Guide, 3rd EditionFigure 1-4Functional OrganizationThe typical functional organization is a hierarchy where each employee has one clearsupervisor. Staff members are grouped by their specialty. The scope of work istypically bound by the group’s specialty or specific function. Projects developed in afunctional organization will have a project coordinator in lieu of a project manager.Projectized OrganizationAt the other end of the spectrum from the functional organization is the projectizedorganization. Often, team members are collocated. Most of the organization’sresources are involved with the project’s work. Project managers have a greatamount of independence and project authority.Matrix OrganizationMatrix organizations are a blend of functional and projectized characteristics.Strong MatrixIn a strong matrix organization, the Project Manager has considerable authority andusually will have full-time staff assigned. The Project Manager will usually report toa manager of project managers, or a Project Management Office.Weak MatrixWeak matrices maintain many of the characteristics of a functional organization, withthe project manager actually providing a coordination role, with limited or no projectauthority.Module 1 – General Management Theory & Skill6

Advanced Project ManagementFall 2005Balanced MatrixA balanced matrix recognizes the need for a project manager; this structure does notprovide the project manager with the full authority over the project and projectfunding.Project CoordinatorIn some organizations, project managers do not exist. Instead, these organizationsuse the role of a project coordinator. The project coordinator has less authority than aproject manager. This person may not be allowed to make budget decisions oroverall project decisions, but they have some authority to assign resources. Projectcoordinators are typically found in weak matrix and functional organizations.Project ExpeditorThis role has the least amount of authority. The project expeditor is a staff memberwho makes sure things arrive on time and that tasks/activities are completed on time.An expeditor is usually found in a functional organization.PowerPower is the ability to influence behavior in others. Power that is based on the organizationand the position/title of the Project Manager is “Organizational” or “Legitimate” power.Power that is based on the characteristics of the person is “Individual” or “Earned” power.Legitimate/Formal PowerLegitimate power, also known as formal power, is the power that the Project Managerhas due to the position or title. This power comes from being formally in charge of aproject and the backing and support from the agency/organization.Strong, broad based formal authority for a project manager is rare. This would becharacteristic of a projectized organizational structure.Reward PowerReward power is the ability to give rewards and recognize achievements. Someexamples of these rewards and recognition are pay raises, bonus

WSDOT Executive Order 1032.00E “Project Management”, dated July 1, 2005. WSDOT. “ Project Management Process” training manual, 2005. WSDOT. “ Intro to Project Scheduling” training manual 2005. WSDOT. “A Policy for Cost Risk Assessment”, dated August 2005. Project Management Institute. A Guide to the Project Management Body of .

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