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Project

Management (For L&T)

Project Management
For L&T
Parag Mahajan
PMP, PMI-ACP, SCM, SAFe SPC, CEM+, ITIL

© Not to be redistributed, printed without wriJen approval from Parag Mahajan paragmahajan.pmp@gmail.com / 9673995721

Agenda
•  Project Management : Why
•  Project Management : What
•  Project Management : Who / Whom
•  Project Management : How

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Project Management (For L&T)

Projects ?

Why projects ?
•  Market Demand
•  Business Need
•  Customer Request
•  Technical Advance
•  Legal Requirements
•  Social Need

Whatever be the motive, for organization to succeed


PROJECT Success is essential………

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Project Management (For L&T)

Quick health check


CalcuJa Metro Rail
•  Start : 1949 End : 1984
•  Esamate : 140 Cr Actual : 1706 Cr

Katra Laole Railway
•  Time & Cost esamate : off by
500%
•  Final cost : @15,000 Cr

Commonwealth Games in Delhi
(2010)
•  ??

Health Check – IT Projects


CHAOS Resolu-on By Project Size
Chaos Project Resolu0on 100%
60
90%
50

40 80%
30
70%
20

10 60%
Failed
0
2002 2004 2006 2008 2010 50%
Successful 34 29 35 32 37 Challenged
Challenged 51 53 46 44 42 40% Successful
Failed 15 18 19 24 21

30%

20%

10%

0%
Grand Large Medium Moderate Small

2011 – 2015 Chaos Data Base

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Project Management (For L&T)

Big Iniaaaves! How do you deliver and


get early feedback?

Key Consideraaons
•  Early Feedback is essenaal
•  Deliver in chunks, small steps
•  Deliver Fast
•  Fail Fast to Succeed Faster
•  Learn from mistakes, conanuously
•  Change is essenaal – lead the change
•  Influence people around you, mulaplier effect

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Project Management (For L&T)

Project management : What ?


•  Boring
•  Just overhead/extra work
•  Useless/adding no value
•  Distracaon from“real work”
•  Hiding place for non-performers

•  Project Management in REALITY is


ü  Balancing the ”science” (what you ”should” do) with the
“art” (what you actually NEED to do)
ü  Pick, choose & use only what’s right for you and your project/
team

project
•  A project is "a temporary endeavor undertaken to create a unique product
or service or end result“
ü  Temporary: Time, People, Constraints, Assumpaons
ü  Unique: Different in one or more parameters. Not necessarily always
in funcaonal characterisacs; but the uniqueness could be in the way it
is developed, team structure, risks, CTQs etc.
•  Progressive Elaboraaon
–  Work in detail, in steps
•  Difference between Projects & Operaaons?

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Project Management (For L&T)

Project management
•  The applicaaon of knowledge, skills, tools and techniques to project
acaviaes in order to meet or exceed stakeholder needs and expectaaons
from a project.“
•  Note :
No major project is ever installed on ame, within budget, or with the same
staff that started it. Yours will not be the first.

Projects progress quickly unal they become 90% complete, then they remain
at 90% complete forever

When things are going well, something will go wrong. When things just cannot
get any worse, they will

When things appear to be going beJer, you have overlooked something

Project management : Who/WHOM

Stakeholders

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Project Management (For L&T)

CHAOS Resolu-on By Project Size

Project life cycle


100%

90%

80%

70%

60%
Failed
50%
Challenged
40% Successful

30%

20%

10%

0%
Grand Large Medium Moderate Small

Project phase: "A collecaon of logically related project These phases are indicaave
acaviaes usually culminaang in the compleaon of a major only, structure as needed
deliverable."
7/6 - 9/3 9/24 - 10/24 12/6 - 4/3 5/17 - 6/27

CON TRA CT REQUIREMEN T MAN UFA CTURIN G / ERECTION


FIN ALIZ A TION AN ALYS IS 10/25 - 12/5 D EVELOPMENT COMMIS SION IN G/
9/7 - 9/23 4/3 - 5/14 D EPLOYMEN T
6/3 - 7/3 SY STEM EN GG 7/1 - 7/31
CON TRA CT / D ESIGN TESTIN G
TEND ERIN G UAT / PG TEST
REVIEW HA NDOVER

Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15

Sep-14 Dec-14 May-15


PHASE GATE 1 PHASE GATE 3 PHASE GATE 5 Jul-15
Oct-14 PHASE
Jul-14 Sep-14 PHASE GATE 2 Apr-15 Jun-15 GATE 7 -
TENDER SUBMITTED CONTRACT, PO PHASE GATE 4 PHASE PROJECT
RECEIVED / LO ST GATE 6 CLOSURE

Why Phases ? Predictability and Visibility.

Project life cycle


Collecavely the project phases are known as the project life cycle.

PLC Defines :
ü  What : Technical work to do in each phase
ü  When : The deliverable is to be generated in each phase
ü  How : Each deliverable is reviewed, verified, and validated
ü  Who : Is involved in each phase
ü  How : To control and approve each phase

Project Life Cycle Vs. Product Life Cycle ?

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Project Management (For L&T)

Moavaang

Acquire, Problem
develop Solving
team

Project
Manager
Conflict Informaaon
Management Distribuaon

Right resources
Facilitaang
for right job

PM skills

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Project Management (For L&T)

Project management
Phases R.A. Design Mfg/Dev Tesang Deployment UAT/PG Test



Knowledge Areas
Process
Qualit Groups
Scope Time Cost I
y
P
Comm
HR Risk Proc
.
C E

I. St L

Project Charter

Agreements

Business
Contract
Case

Project
Charter

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Project Management (For L&T)

Idenafy stakeholders How ?


Power
High What ?

Keep Manage
Saasfied Closely
Low High
Interest

Keep
Monitor
Informed

Low

Stakeholder Register

Stakeholder Stakeholder Assessment Poten:al strategies for gaining


Name Interest(s) in of impact support or reducing obstacles
project

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Project Management (For L&T)

Project management
Phases R.A. Design Mfg/Dev Tesang Deployment UAT/PG Test



Knowledge Areas
Process
Groups
Scope Time Cost Quality I

P
Comm
HR Risk Proc
.
C E

Integraaon Stakeholder Mgmt. L

Why Plan ?

Source – Project Challenge Conference – Knowledge Sharing, Dr. Jerry

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Project Management (For L&T)

“If you fail to plan,


you are planning to fail.”

Benjamin Franklin

“Plans are nothing.


Planning is everything.”

Dwight D. Eisenhower

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Project Management (For L&T)

Why Planning ?
•  To develop a project plan that:
–  Facilitates later accomplishment
–  Ensures project wide integraaon
–  Monitors change effecavely
–  Provides decision support informaaon to
stakeholders
–  Can be updated by iteraave planning acaviaes

“Unless commitment is made,


there are only promises and
hopes; but no plans.”

Peter F. Drucker

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Project Management (For L&T)

Planning : What

Guidelines Baselines Thresholds

Plan

Put it all together !!


Scope

Staffing Schedule

Project
Risk Cost
Plan

Comm Quality

Procu.

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Project Management (For L&T)

Scope Management : Why

Requirements Doc capture how individual requirements meet business need for project

Scope management – what ?

What is
What is Included
Excluded
“Include all the work and only the work needed to complete the project”
old
Project Product Scope : NO G g
Scope •  “What” part Pla:n
•  Features, funcaons and characterisacs of
the product
Project Scope :
Product •  “How” part
Scope
•  All the work required to deliver the project’s
outcome (product, service, end result)

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Project Management (For L&T)

Requirement management Plan


It provides a process
•  to prepare a detailed scope statement based upon preliminary scope
statement
•  that enables creaaon of WBS from the detailed project scope statement
•  that specifies how formal verificaaon/ acceptance of the completed
project deliverables will be obtained
•  to control how requests for changes will be processed
•  to prioriaze requirements
•  to idenafy and document product metrics to be used, with raaonale
•  to create traceability matrix

Traceability matrix ?

Scope Statement
“Addresses and documents
characterisacs and boundaries of
the project, its associated
products & services as well as
methods of acceptance and scope
control”

Contents
ü  Project & product objecaves
ü  Product and service
requirements Product
acceptance criteria
ü  Project boundaries, assumpaons
and constraints, Iniaal WBS

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Project Management (For L&T)

Work Breakdown structure


• Delivery oriented grouping of project elements
What • Each descending level has greater details
• Project elements may be products or services

• Define soluaon strategy, approach, implementaaon


Why • Facilitate beJer esamates for cost, ame, project resources
– key for planning

• Decomposiaon : subdivision of project deliverables into


smaller, more manageable components unal the
How deliverables are defined to the work package level.
• Using phases or major deliverables or sub-projects as first
level

Validaang wbs
•  All major elements been idenafied at top level?
•  Decomposed into measurable components?
•  Lower level(s) items necessary? All inclusive?
•  Would stakeholders agree WBS is saasfactory?
•  Can elements be scheduled, budgeted, and
assigned to a unit that will accept responsibility?
•  Too much or too liJle visibility and control?
•  Can status reports be generated at all levels?

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Project Management (For L&T)

Time management

project Time management – what ?


Manage Timely Compleaon of Project

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Project Management (For L&T)

Project ame management : Schedule


Define Sequence Esamate Esamate Develop
Acaviaes Acaviaes Act. Res Act. Dur Schedule

-  Acavity List -  Types of -  All resources -  Work period -  CPM / PERT


Dependencies needed to complete -  Lead
-  PDM / ADM each acavity -  Lag
-  Templates -  Esamaaon -  Resource
Techniques Leveling
-  Compression

Diagraming methods
Precedence
Diagramming Method
(PDM) / Acavity On
Node (AON)

Arrow Diagramming
Method (ADM) / Acavity
On Arrow (AOA)

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Project Management (For L&T)

Criacal path
•  In a project network diagram, the series of acaviaes which determines
the earliest compleaon of the project is the criacal path .
Cri:cal Path
•  Is the longest path to complete a project and it has no Float.
•  Is the path where any delay will delay the project compleaon ame.
•  will generally change from ame to ame as acaviaes are completed
ahead of or behind schedule.
Cri:cal Ac:vity:
Any acavity on a criacal path is a criacal acavity.
Float ??

PERT
•  PERT: A concept of using Three, Time esamates for determining the duraaon
of an acavity.
•  "PERT is the network analysis technique used to esamate program duraaon
when there is uncertainty in the individual acavity duraaon esamates
•  PERT applies the criacal path method using duraaon that is computed by a
weighted average of opamisac, pessimisac, and, most likely duraaon
esamates.
ü  Esamated Duraaon of an acavity = [O + 4 M + P] / 6
•  Standard deviaaon from path’s acavity duraaon….
ü  SD=(Pessimisac duraaon – Opamisac duraaon)/6
•  Variance of an acavity is the square of Standard Deviaaon (SD)

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Project Management (For L&T)

Project cost management

Ensures planning & controlling costs so that the


project can be completed within the approved
budget

Cost management

COST

PERF.
BUDGET
REPORTS

WHAT ?

LIFE
ESTIMATE CYCLE
COSTING

PRICE

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Project Management (For L&T)

COST MANAGEMENT – what/how


•  Project Constraints, Assumpaons, High level cosang
•  Cost esamaang policies, templates, databases, historical informaaon
•  Health, safety, environment, IP, insurances, licenses, etc.
•  Project scope baseline
•  Quality parameters
•  Staffing and other resource requirements
•  Market condiaons
•  Task duraaons
•  Risk registers

COST ESTIMATING
•  Process of developing approximaaon of costs (Acavity
Cost Esamates) of resources needed to complete project
acaviaes
•  Esamaaon Techniques :
ü Vendor Bid Analysis
ü Cost of Quality
ü Reserve Analysis
ü BoJom-up, Top-Down, Analogous,
ü Resource Rates

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Project Management (For L&T)

Cost Of Quality
Conformance •  Non-Conformance (COPQ)*
•  Planning •  Rework Repair Scrap
•  Training and Indoctrinaaon •  Expediang
•  Process Control •  Addiaonal material & inventory
•  Process Validaaon •  Warranty Repairs and Service
•  Test and Evaluaaon •  Complaint Handling
•  Inspecaon and Field Tesang •  Liability Judgments
•  Product Recalls
•  Product correcave acaons
•  *(COPQ: Cost of poor quality)

What is ‘life cycle costing’?

Cost budgeang
•  Process of aggregaang the esamated costs of individual
acaviaes or work packages to establish a cost baseline

Cost Baseline =
Cost Esamates allocated to
Work Packages in WBS over
a period of ame

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Project Management (For L&T)

PROJECT RISK MANAGEMENT

Risk ?
Impact ?

Project risk management - planning

Plan Risk Idenafy Risks Perform Perform Plan Risk


Management • Determine, Qualitaave Quanataave Responses
• Define how to document risks Risk Analysis Risk Analysis • Improve
conduct risk • Prioriaze based • Numerically opportuniaes
management on probability analyze effect of • Reduce threats
and impact risks

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Project Management (For L&T)

Plan Risk responses


•  Process of developing opaons and
acaons to enhance opportuniaes and Negaave Posiave
to reduce threats to project acaviaes
ü  Addresses risks by priority by
updaang budget, schedule and
Miagate Enhance
other plans

Transfer Share

Avoid Exploit

Accept Accept

Negaave Risk responses


Avoid Miagate
• Eliminate cause of risk • Reduce probability, impact of
risk

Threats

Transfer Accept (Acave/Passive)


• Have third party take
responsibility for risk • Conangency plans for
risk

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Project Management (For L&T)

Posiave risk responses

Exploit Enhance
•  Make sure opportunity is •  Increase likelihood, impact of
realized by working hard, give risk by taking proacave acaons
100%

Opportunia
es

Share Accept
•  Give third party ownership of •  Allocaaon of reserves to the
opportunity project
•  Willing to take advantage if it
occurs, not acavely pursuing it

Risk register
Idenafied Risks, descripaon, Impact on project objecave

Risk owners and their responsibiliaes

Agreed risk response strategies

Acaons to implement risk responses

Risk Triggers

Secondary and Residual Risks

Conangency reserves of ame and cost

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Project Management (For L&T)

Project quality management

Quality Management : creaang and following policies


and procedures to ensure that a project meets the
needs for which it was undertaken

Quality ?
•  Degree to which the project fulfills
requirements / Fitness for use – Joseph Juran
•  Prevenaon is beJer than control. Zero defects is
the goal of Quality. Do it right the first ame –
Philip Crosby
•  Quality relates to conanuous improvement of
people and processes – Kaizan
•  Quality is management problem. Management
needs to provide the procedures and resources
for employees to produce quality product –
Edwards Deming

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Project Management (For L&T)

Quality management

Process
Quality
Improvement
Metrics
Plan

Quality M. Quality
Plan Checklists
Quality
Management
Planning

Communicaaon Management

Timely and appropriate Generaaon, Collecaon, Distribuaon,


Storage, Retrieval and Disposiaon Of Project Informaaon

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Project Management (For L&T)

Communicaaon Effecaveness

Team

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Project Management (For L&T)

Team Building

RACI

Responsible
-  Doers
Accountable
-  Buck stops here,
-  Decision maker
Consult
- Stakeholder, SME
Inform
-  Dependent and
relevant stakeholders

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