Project Management Introduction

1. Project ManagementIntroduction Agenda Definitions Project scope management Time, quality, cost Human resources management Information management Risk managementProject Management Institute Michel Tollenaere (INPG) http://www.g-scop.fr/~tollenam/best

2. Definitions A project is a temporary endeavour undertaken to create a unique product or service. It is • performed by people • constrained by limited resources • planned, executed and controlled

3. Examples • developing a new product or service • effecting change in a structure, staffing or style of an organisation • designing a new transportation vehicle • developing or acquiring a new or modified information system • constructing a building or facility • building a water system for a community in a developing country • running at campaign for political office • implementing a new business procedure or process • budget from 10k€ to many M€ • METEOR an automatic underground railway in Paris • implementing SAP in multi-sites company • the football world cup in Paris in 98 • from 8 to 10 digits numbering in a phone system • implementing A380 in a company ..\..\

4. Project features (1) Temporary • A project has a definite beginning and definite end • The duration of a project is finite • The opportunity or market window is usually temporary, most projects have a limited time frame in which to produce the product or service • The project team - as a team - seldom outlives the project. Most projects are performed by a team created for the sole purpose of performing the project Unique result • Projects involve doing something that has not been done before in the same environment • The project may require some innovation to be completed

5. Project features (2) Progressive elaboration • A project occurs step by step to define the product or service, in a so called “progressive elaboration” process. • for instance, the development of a chemical processing plant begins with the process engineering to define the characteristics of the process, and ends with the final assembly. Development of a chemical processing plant Define the chemical characteristics of the process Mechanical characteristics of the process units (pumps..etc) Detailed drawings Manufacturing of the parts Final Assembly General plant layout

6. Project features (3) • In aerospace industry, projects are divided in milestones (M1, M3, M5, M7, M9, M11) corresponding to a “state” of the aircraft. Progressive elaboration

7. Milestones : • defined state of the project • decision point Project Lifecycle Cost and Staffing level Intermediate Phases (one or more) Final Phase Initial Phase Time Finish Start

8. Project Lifecycle : example US - DOD 5000.2

9. Construction Project Lifecycle

10. Pharmaceuticals Project Lifecycle

11. Project scope management (PMI chap 5) Agenda DefinitionsProject scope management Time, quality, cost Human resources management Information management Risk management

12. Project scope management (PMI chap 5) • Product Scope : the features and functions that characterise a product or service • Project Scope : the work that must be done to deliver a product with the specified features and functions • Both scopes are described and detailed with specific tools. • Project scope management consists to ensure that the project includes all the work required, and only the work required, to complete the product successfully.

13. Product scope management PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE PROGRAMME PROGRAM A380 A380 SERIES OF AIRPLANE SERIES /DERIVES A380 800F A380 800F A380 800 A380 800 A380 700 A380 700 ... ... COMPOSANTS PRINCIPAUX FUSELAGE FUSELAGE WING AILE EMPENNAGE TAILPLANE ... ... MAJOR COMPONENTS ASSEMBLAGES ASSEMBLIES LEADING EDGE LEADING EDGE BORD D’ATTAQUE BORD D’ATTAQUE ... ... CAISSON DE VOILURE CAISSON DE VOILURE SYSTEME SYSTEME HYDRAULIC STRUCTURE STRUCTURE ... ... SUB SOUS - - ASSEMBLIES ASSEMBLAGES SYSTEM MECANIQUE MECANIQUE ATTACHE ATTACHE TRINGLERIE TRINGLERIE STRUCTURE STRUCTURE COMPOSANTS ELEMENTARY ELEMENTAIRES COMPONENTS Part 10005 Part 10005 Part 10009 Part 10009 Part 10002 Part 10002 • Bill of Materials • FAST Diagram • Structured tool that describes the product

14. Project scope management : WBS Work Breakdown Structure

15. Project scope management : WBS of a software release

16. Project scope definition : from BOM to WBS • Defining the right activities is essential for « project scope definition » • a WBS from a previous project is often used as a template for a new project. • any component in a BOM must be purchased or manufactured. • in all cases (purchasing or manufacturing), it must be tested. • any assembly should be assembled and tested (especially in software engineering) • documentation activity is essential for robust project Activity. An element of work performed during the course of a project. An activity normally has an expected duration, an expected cost, and expected resource requirements. Activities can be subdivided into tasks. Activity Definition. Identifying the specific activities that must be performed to produce the various project deliverables.

17. Project scope Change Management • Any change to product and/or project scope must follow a formal process • This process must finish with the formal acceptance of the change by the different stakeholders. • A change request may be the result of : • An external event (eg. Change in a government regulation) • an error or omission in defining the scope of the product (adding a failure system regulation). • an error in defining the scope of the project (a missing inspection) • a value adding change (positive opportunity) • a response to an identified risk (see section about risk management)

18. simple, red, robust, with wheels Customer needs description : Customer needs : What the architect understands What the architect finally described What is the manufacturer expected to do What is finally developed Possible evolutions in Product scope

19. Overquality Specifications What has been realised Court circuit Customer’s Needs Monitoring Project scope during the project Errors in specifications Waste Adequate Quality Happy hazard Unsatisfaction

20. Monitoring Project scope during the project ?? ?? A universal tool …… might be so heavy and expensive

21. Project scope management (PMI chap 5) Project Scope Management. A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully. It consists of initiation, scope planning, scope definition, scope verification, and scope change control. Scope Definition. Subdividing the major deliverables into smaller, more manageable components to provide better control. Scope Planning. The process of progressively elaborating the work of the project, which includes developing a written scope statement that includes the project justification, the major deliverables, and the project objectives. Scope Statement. The scope statement provides a documented basis for making future project decisions and for confirming or developing common understanding of project scope among the stakeholders. As the project progresses, the scope statement may need to be revised or refined to reflect approved changes to the scope of the project. Scope Verification. Formalizing acceptance of the project scope.

22. Project triangle Time, Cost, Quality Agenda Definitions Project scope managementTime, quality, cost Human resources management Information management Risk management

23. Project time management • requires activity definition • includes activity sequencing • estimates activity duration • elaborates schedule of activities Activity duration model

24. Project time management • estimates activity duration Resource requirements : which resources are required for such activity ? Activity duration # activity work effort Some activities (eg. getting authorisation, transportation time) can require a long time without any work-effort. • elaborates schedule of activities Many software tools (MSProject) do the job quite well (in a deterministic manner) They offer many outputs (GANTT Chart, PERT … etc)

25. Project time management • relationships between activities : Logical Relationship Activity A Activity B • Finish-to-start-the initiation of work of the successor depends upon the completion of work of the predecessor. • Finish-to-finish-the completion of the work of the successor cannot finish until the completion of work of the predecessor. • Start-to-start-the initiation of work of the successor depends upon the initiation of the work of the predecessor. • Start-to-finish-the completion of the successor is dependent upon the initiation of the predecessor.

26. Project time management • Network Logic Diagram A B E Start Finish D F C Precedence diagram method ; A, B, C, D, E, F are activities B A E Start Finish C F D Arrow diagramming method ; activities are shown as arrows

27. Project time management • Provides start and finish dates for all activities Float. The amount of time that an activity may be delayed from its early start without delaying the project finish date. Float is a mathematical calculation, and can change as the project progresses and changes are made to the project plan. Also called slack, total float, and path float. Free Float (FF). The amount of time that an activity can be delayed without delaying the early start of any immediately following activities. See also float. A B E Critical Path. The series of activities that determines the duration of the project. In a deterministic model, the critical path is usually defined as those activities with float less than or equal to a specified value, often zero. It is the longest path through the project. See critical path method. Start Finish D F C B A E Start Finish C F D

28. Project Cost management • cost management includes the following processes Resource planning - Cost estimating - Cost budgeting - Cost control Cumulative values M€ Total budget of the project Final Phase Initial Phase Intermediate Phases (one or more) Time Start Finish The S – Curve of cost baseline

29. Project Cost management • different cost for an activity Planned Value (PV). The physical work scheduled, plus the authorized budget to accomplish the scheduled work. Previously, this was called the budgeted costs for work scheduled (BCWS). Earned Value (EV). The physical work accomplished plus the authorized budget for this work. The sum of the approved cost estimates (may include overhead allocation) for activities (or portions of activities) completed during a given period (usually project-to-date). Previously called the budgeted cost of work performed (BCWP) for an activity or group of activities. Actual Cost (AC). Total costs incurred that must relate to whatever cost was budgeted within the planned value and earned value (which can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs) in accomplishing work during a given time period.

30. Project Cost Management • different contracts A contract is a mutually binding agreement that obligates the seller to provide the specified product and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories: Fixed-price or lump-sum contracts - this category of contract involves a fixed total price for a well-defined product. Fixed-price contracts may also include incentives for meeting or exceeding selected project objectives, such as schedule targets. Cost-reimbursable contracts - this category of contract involves payment (reimbursement) to the contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by the project, such as wages for members of the project team) and indirect costs (costs allocated to the project by the performing organization as a cost of doing business, such as salaries for corporate executives). Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable contracts often include incentives for meeting or exceeding selected project objectives, such as schedule targets or total cost. Time and material contracts-time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed- price-type arrangements. Time and material contracts resemble cost-type arrangements in that they are open ended, because the full value of the arrangement is not defined at the time of the award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-unit arrangements when, for example, the unit rates are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior engineers."

31. Project quality management Let’s start with a story : La Route du Rhum 2002 Only 3 sailers (upon 15) arriving at Pointe-à-Pitre !!!

32. Project quality management • Quality management applies to : • project activities • and project results (deliverables, components) • to fulfil quality objectives. The Deming Cycle PLAN: Design or revise business process components to improve results DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the results to decision makers ACT: Decide on changes needed to improve the process

33. Project quality management Quality Planning. Identifying which quality standards are relevant to the project, and determining how to satisfy them. Quality Assurance (QA). 1) The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. 2) The organizational unit that is assigned responsibility for quality assurance. Quality Control (QC). 1) The process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. 2) The organizational unit that is assigned responsibility for quality control.

34. Human resources management Agenda Definitions Project scope management Time, quality, costHuman resources management Information management Risk management

35. Complex projects are based on complex organisations Best skills for all complex tasks worldwide Human resources management As project is performed by humans, Project management is human and organisation management. • who decides ? • who is responsible on ? • who controls ? • who takes benefits of ?

36. Human resources management Airbus Company has been created to provide airplanes It has been created from Aerospatiale, British Aerospace, CASA, DASA

37. Human resources management Is formalised in a Organisation Breakdown Structure (OBS) A depiction of the project organization arranged so as to relate work packages to organizational units It shows which work components have been assigned to which organizational units or persons. P = Participant A = Accountable R = Review required I = Input required S = Sign-off Required Responsibility assignment matrix

38. Subcontracting management Sub-contracting requires internal resources for negociation and control. Do not confuse : a subcontractor is not a partner

39. Information management

40. Some tools (1) Ensure message storage ? Managing group lists ? Impossible to share large files

41. Some tools (2) annotation and correction of documents

42. Powerpoint diapo conférence Chats Microsoft Netmeeting Yahoo groups Windows sharing, shared blackboard Some tools (3)

43. Extended entreprising information system

44. Commercial Quality Logistics Maintenance Production C.R.M. S.R.M. M.E.S. A.P.S. K. M. K.B.E. Quality assurance Marketing Design Industrialisation ENTREPRISES INFORMATION SYSTEMS E.R.P. P.D.M./P.L.M.

45. Supplier Sub-contractor A Orderer Sub-contractor B Partner • deiversified technical products • multi-sites, multi organisation development and production • development under time constraints • physical flows • information flows • financial flows • decision systems

46. Internet, Intranet, PDM, PLM Engineering et communication situations Slides-conference Visioconference Space Distant Synchronous Asynchronous Time Same location Project location

47. Organisations Task 2 Task 3 Task 1 Tasks, processus Files and Documents Information System Systems ?

48. Donneur d ’ordres Partenaire rang 1 Partenaire rang 1 Organisations, rôles au sein des projets Equipementier Sous traitant Value evolution Who do what ? Who has done what ? Liens explicites entre paramètres, et objets documentaires Value Evolution Organisations Task 2 Réseau de Paramètres Task 3 Links between documents and assemblies and systems Link between parameters, functions, items 1 Task 1 4 2 Tâches, processus 10 14 12 5 Who is responsible on what? Configuration managezment 15 Files and Documents Parameter : Physical value Unit version tolerance and gap …. Action Exécution Décision Notification Quels systèmes ?

49. Engineering Change management Automatisation du traitement des "Change Process" S'assurer que toutes les étapes approbation/qualité ont été réalisées Document Review Router automatiquement vers les "reviewers" (requis ou optionnels) Gérer les approbations ou re-router pour révision Notification Status evolution Push of documents Files and Documents Approval Engineering change management Efficiency et Traçing