Project Management A Tool For ATO Success

Presented by: Pat A. Eigbe, PMP Office of Innovations and Solutions, ATO-P February 18, 2004

Briefing Outline
Project Management (PM) as a Tool Project Management Terminology PM Relationship to other Disciplines Project Management Processes Project Management Tools & Techniques Summary/Conclusion Questions
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Project Management as a Tool

Minimize Fire Drills Efficient Use of Resources Develop Better Metrics On-time and On-budget Product Delivery Apply Lessons Learned Better Communications Between Stakeholders Make Proactive Decisions
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Communications
Understanding our Environment
Tell the Marine to secure a building: they will kill everybody and point guns at the building. Tell the Air Force to secure a building: they will drive everybody out and lease the building to the highest bidder. Tell the Army to secure a building: they will surround the building and point guns at the house. Tell the Navy to secure a building: they will turn off all the lights, lock up the house, and go home.
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Project Management (PM) Terms

Project - A temporary endeavor undertaken to create a unique product or service. ATOP or VSCS - Project has a specific purpose with a start and an end date. Project Management - the Application of Knowledge, Skills, Tools, and Techniques to Project Activities to Meet Project Requirements.
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Project Management Terms II

Program - A group of related projects managed in a coordinated way. Programs usually include an element of ongoing activity.
CPDLC, SMA, URET CCLD, pFAST,as FFP1 PM Tools Development as part of Program Management

A Project/Program Manager (PM) - The Individual Responsible for Managing a Project/Program.

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Project Management Terms III

Work Breakdown Structure (WBS) A deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. Each descending level represents an increasingly detailed definition of a project work.
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Project Management Terms IV

FAA standard wbs1-0.ppt WBS Dictionary 3.1 Requirement to use FAA Standard WBS Mandatory

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Project Management Terms V

Deliverable Tangible, verifiable work product/service. Work Package A deliverable at the lowest level of the work breakdown structure. A work package may be divided into activities. Activity - Work elements with expected duration, cost, & resources that may be subdivided into tasks.

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Project Management Terms VI

Stakeholder Individuals or Organizations that will be Impacted by the Outcome of a Project. OBS: An Organizational Chart Relating Work Packages to Organization Units. Responsibility Matrix: Relates Organization Structure to WBS & Ensures that each Element of the Projects Scope is Assigned to a Responsible Individual(s).
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Project Management: Relationship to Others Disciplines

The PMBOK
Project Management Knowledge and Practice

General Management Knowledge and Practice

Application Area Knowledge and Practice

Figure is conceptual and overlaps are NOT proportional February 18, 2004 Pat A. Eigbe, PMP 11

Systems Engineering/PM Relationship I

PM Needs SE for
Integrated PM System Design & Implementation Requirements for HW and SW Tools

SE Needs PM for
Planning and tracking Managing Resources

PM System Designer Must Understand both SE Not Necessary for PM Practitioners

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Systems Engineering/PM Relationship - II

Risk Management
PM - Schedule, Cost & Technical/Quality SE Compatibility of Components of a System or Sub-System

Quality Management
PM - Process for Producing the Product SE - Ensure Product Meets the Technical or Quality Specifications
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Systems Engineering/PM Relationship - III

Configuration Management
PM - Ensure Integrity of Schedule and System for Schedule Management SE - Ensure Integrity of the System as Designed

Change Management
PM - Changes to Project Scope SE - Changes to System Requirement

Measurement
PM Program cost & schedule performance SE Technical Performance
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PMI Certification
What is PMP What PMP is not PMP Value to Holder & Employer PMP Certification Process link visit http://pm.act.faa.gov

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PM Process Groups
Project Information Flow
Initiating Processes Planning Processes

Control Processes

Executing Processes

Closing Processes

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Start

PM Process Flow
Create Project Agreement/PD/SLA 1. .1. No Create the Project Plan (PMIP) 1. .2

Identify Project & Sponsor 1. .1.1

PD/SLA OK?

Create Project Team & Team Contract

Yes

Review/ Revise Plan (PMIP) 1. .2

No

Yes

Plan OK?

Monitor/Review Progress & Deliver Products 1. .4 Control No Deliver Final Deliverables/ 1. .4. Yes Yes Project Completed!!!

No

Deliverables Accepted?

1. .

No

Report OK?

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Closing

Perform Post Project Evaluation & Prepare Close-Out report

1. .

Execution

Need Changes/ Corrective Action?

Execute Plan & Create Deliverables

Yes

Planning

1. .1.

Initiation

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Initiation Processes
Identify project and sponsor Appoint Project Manager Train team on
Project Management Process Project Plan (PMIP)

Develop Program Directive to Include

WBS that Covers the Scope High-level Milestones Budget resources
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Planning Processes I
Identify Life Cycle approach
Evolutionary (AMS 6101, Section 2.2) Incremental Waterfall

Risk Management plan

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Planning Processes II
Get approval for Program Directive Identify quality standards - use specs, IEEE, ISO, PMBOK Organizational structure Communications - who needs, what Acquire human resources for projects
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Planning Processes III (Schedule Development)

Update & Decompose WBS Identify activities Sequence Estimate duration Estimate cost Allocate resources to work packages Baseline schedule
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Planning Processes IV
Risk management detail:
Identification Analysis Response Procurement

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Implementation/Execution Processes
Use the PMIP to execute project activities Assess Technical Performance to assure product acceptance Distribute project information Make purchases Develop team skills/competencies Develop a Configuration Management plan
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Performance Measurement
Variances Performance Indices
Schedule performance Index (SPI) Cost performance Index (CPI)

Earned Value Management System (EVMS)

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Earned Value Management System Highlights

What is EVMS Planning for EVMS Tracking & Analysis Elements of EV Analysis Project Cost & Schedule Forecasting EV Reporting
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Earned Value Management System (EVMS) - I

EV - Tool for Measuring Project Performance Integrates Cost, Scope & Schedule measurements Compares work actually accomplished to work planned EV is an Early Warning System Helps management make proactive decisions to keep projects on course
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Earned Value Management System (EVMS) - II

Involves Calculating 3 key Elements
Budget - BCWS Actual Cost - ACWP Earned Value/Physical Progress - BCWP

Basis for variance analysis

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Planning for EVMS - I

Create a work breakdown structure Organize work into discrete work packages and activities Allocate a budget to each of the activities Develop a schedule and Assign resources Must include all project work in the schedule Establish the Project Baseline
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Planning for EVMS - II

Award performance credit for physical % complete: 0-100
Short duration tasks < 160 hours EV is Zero until activity is complete

50-100
Duration less than 600 hours 50% at start of activity & 50% at completion
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Planning for EVMS - III

Interim milestone;
Duration less than 600 hours Based on completed milestone for task

Level of Effort (LOE)

Long duration & consistent tasks Difficult to measure - no deliverables Measured by duration of time used e.g. 10 weeks support is 50% complete at 5 weeks
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Tracking & Analysis

Each update cycle/Reporting Period:
Obtain physical % complete for each task Calculate EV for each task Sum up EV for all tasks as project EV Calculate actual expenditure for actual work completed during the period Compare the Cumulative EV to Actual expenditure
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Elements of EV Analysis - I
Performance indices relate value of work performed to dollar spent. e.g. CPI = 0.65 means that for every dollar spent, actual value of the work performed is $0.65. Cumulative CPI used to forecast project cost at completion Cumulative SPI used to forecast project completion date
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Elements of EV Analysis - II
Cost Variance - Difference between budgeted cost an activity & actual cost of that activity
CV = EV - ACWP

Schedule Variance - Difference between scheduled completion & actual completion of an activity
SV = EV - BCWS
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Elements of EV Analysis - III

SPI EV/Planned Value SPI => 1.0, Project Schedule performing as planned or better SPI < 1.0, Project not performing as planned - needs help

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Elements of EV Analysis - IV
CPI EV/Actual Cost CPI => 1.0, Project Cost performing as planned or better CPI < 1.0, Project Cost not performing as planned - needs help % Over/Under Budget = CAC - BCWS

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Tracking & Analysis

Each update cycle/Reporting Period:
Obtain physical % complete for each task Calculate EV for each task Sum up EV for all tasks as project EV Calculate actual expenditure for actual work completed during the period Compare the Cumulative EV to Actual expenditure
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Project Cost & Schedule Forecast Methods

Estimate at Completion (EAC) is total cost to complete an activity, work package, or a project expressed as:
EAC = Actuals-to-date + Estimate to complete (ETC)

Cost EAC = BAC/CPI

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EV Reporting
Interpret the output of EV calculations Take corrective action as necessary Recommend corrective action as necessary

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Control Processes I
Coordinate and control changes to project
scope/requirements schedule budget

Monitor and manage product quality Measure progress and report performance

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Control Processes II
Monitor and control risks
keep track of identified risks monitor residual risks identify new risks ensure execution of risk plans assess effectiveness in reducing risk

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Closing Processes
Close out contracts Resolve any outstanding issues Document lessons learned Evaluate project Archive all project documents

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Conclusion
Defined Frequently used PM Terminologies Discussed Objectives of Adopting Project Management Principles. Discussed PM Processes, Tools & Techniques Discussed EVMS Overview Questions
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References
Project Management Institute (PMI), 2000. A Guide to the Project Management Body of Knowledge (the PMBOK Guide) Stratton R. W., 1999. Improving SPI and CPI Calculations on LOE Heavy Programs, Proceedings of the 30th Annual PMI Seminars & Symposium Fleming and Koppeman, 1996. Earned Value Project Management. Ibbs W & Reginato J., 2002. Quantifying the Value of Project Management Kerzner H, 2003. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. FAST @ http://fast.faa.gov/wbs/wbssec.htm
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Questions/Need Help? http://pm.act.faa.gov

Pat A. Eigbe, PMP Ext. 5-7857 patrick.eigbe@faa.gov

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