Balancing the Project.
Limited resources necessitate the need for balancing time , money, equipment, material and people resources. A project manager is constantly making choices which will optimize the use of available resources. I found the example of SAFECO field very helpful in understanding the nuances of balance in a good project. An aggressive , accelerated schedule escalated the cost of constructing the baseball field. The project achieved the time deadline but had a cost over run of $ 1oo million.
Balancing should be a part of project definition and planning stages. It involves continuous correcting during the course of a project execution.
There are three levels of balancing a project. A project can be balanced at project level, business level and enterprise level. Re estimating the project in the SOW and work packages can help increase the accuracy of estimates. Task assignments can be changed to reallocate and better manage the resources. To accelerate the schedule , more people can be assigned to a project. Balancing a project at the business case level could involve reducing the product scope, fast tracking and changing the profit requirement. Finally at enterprise level, higher management reviews the firm's resources and makes decision to keep, change, outsource or eliminate a planned project.
Tuesday, February 24, 2009
Chapter 8
The Dynamics of Accurate Estimating
Complete accuracy is impossible to achieve in estimating. A high degree of accuracy is what a project manager strives for while developing estimates. Reviewing the past performance improves the forecasts of the future. Comparing actual performance to estimates is essential to refining the estimating model. A project manager cannot control all the project variables and cannot predict the future. For example changing technology, weather, regulations may result in change of plan.
One of the important steps a project manager can take is to build estimates with complete knowledge of specifications of implementations. No amount of good business practices can replace the detailed blueprint. The blueprint gives the people developing estimates the right tool to do their job. Best people to make estimates are experienced with estimating and people who will actually work on the project. Though all projects have their own characteristics but there are enough similarities in a typical project life cycle to gain from experienced people. Professional estimators bring the expertise and finesse which is generally beyond the scope of a project manager.
Complete accuracy is impossible to achieve in estimating. A high degree of accuracy is what a project manager strives for while developing estimates. Reviewing the past performance improves the forecasts of the future. Comparing actual performance to estimates is essential to refining the estimating model. A project manager cannot control all the project variables and cannot predict the future. For example changing technology, weather, regulations may result in change of plan.
One of the important steps a project manager can take is to build estimates with complete knowledge of specifications of implementations. No amount of good business practices can replace the detailed blueprint. The blueprint gives the people developing estimates the right tool to do their job. Best people to make estimates are experienced with estimating and people who will actually work on the project. Though all projects have their own characteristics but there are enough similarities in a typical project life cycle to gain from experienced people. Professional estimators bring the expertise and finesse which is generally beyond the scope of a project manager.
Phased estimating, apportioning, parametric estimating and bottom estimating are the various estimating techniques used by project managers. Phased estimating requires cost and schedule resource estimates for one phase of a project at a time. At the end of the first phase, a new estimate for the second phase is developed. Bottom-up estimating is considered the most accurate estimating as it takes into consideration the detailed tasks and work packages.
Chapter 7
Realistic Scheduling
A realistic schedule is a step by step process which results in achievement of stakeholder objectives in time and takes into consideration project team, equipment, cost and quality of the project. The techniques of realistic scheduling form the foundation of the project planning.Laying out a detailed scheduling plan can prevent as well as be a tool for solving many subsequent problems, a project manager may encounter.
The sequence of work packages is determined by the relationship between the tasks. Generally, project management software enables you to record relationships between tasks in a predecessor table and a network diagram. The network diagram defines task relationships between work packages and reflect sequence constraints between work packages.
Another useful concept in project management is the setting up of important milestones in the life of a project. Milestones don't affect the schedule but they anchor the whole project network.
They show major progress points and state when the successor can begin.
A realistic schedule is a step by step process which results in achievement of stakeholder objectives in time and takes into consideration project team, equipment, cost and quality of the project. The techniques of realistic scheduling form the foundation of the project planning.Laying out a detailed scheduling plan can prevent as well as be a tool for solving many subsequent problems, a project manager may encounter.
The sequence of work packages is determined by the relationship between the tasks. Generally, project management software enables you to record relationships between tasks in a predecessor table and a network diagram. The network diagram defines task relationships between work packages and reflect sequence constraints between work packages.
Another useful concept in project management is the setting up of important milestones in the life of a project. Milestones don't affect the schedule but they anchor the whole project network.
They show major progress points and state when the successor can begin.
Bottom-up-estimating of cost and duration of work packages is another important planning step which a project manger needs to execute carefully. The four sources of cost estimate are labor, equipment, materials and fixed price bids. Fixed price bids especially if they are from an outside vendor can include all three labor, equipment and materials costs. Each cost is a resource restraint and schedule has to be adjusted to account for these restraints.
Chapter 6
Work Breakdown Structure
A project manager constantly strives to achieve balance in the cost-schedule and quality equilibrium of the project. One of the techniques used to successfully manage the project is WBS. Work breakdown structure is a tool to break a project into its manageable components. It is basically a task list. WBS provides a detailed illustration of project scope. It clarifies the individual and team work assignments and builds those into an overall picture.
WBS becomes the basis for monitoring the progress as identified smaller parts become measurable units.Work breakdown structure also provides accurate cost and schedule estimates for each of the tasks or components.
Project definition and risk management are the stepping stones on which work breakdown structure is built upon. Project deliverables provide the activity that defines a task. This step can be quite overwhelming. For example in case of a large project, it is not possible for a project manager to list all the detailed sub tasks required to complete a high level task in the project. He or she has to involve experts and other team members in the planning process.
A project manager constantly strives to achieve balance in the cost-schedule and quality equilibrium of the project. One of the techniques used to successfully manage the project is WBS. Work breakdown structure is a tool to break a project into its manageable components. It is basically a task list. WBS provides a detailed illustration of project scope. It clarifies the individual and team work assignments and builds those into an overall picture.
WBS becomes the basis for monitoring the progress as identified smaller parts become measurable units.Work breakdown structure also provides accurate cost and schedule estimates for each of the tasks or components.
Project definition and risk management are the stepping stones on which work breakdown structure is built upon. Project deliverables provide the activity that defines a task. This step can be quite overwhelming. For example in case of a large project, it is not possible for a project manager to list all the detailed sub tasks required to complete a high level task in the project. He or she has to involve experts and other team members in the planning process.
In a multidisciplinary project, outside subject matter experts, contractors and vendors may be employed to do some of the work in a project. They may be required to provide their own work breakdown structure.
Work package size is another key concept which helps keep tasks meaningful, manageable and under control. General guidelines of a work package ensure that tasks are accurately estimated, assigned and tracked. It makes a project manager's job a little less arduous when a work package is of correct size.
Work package size is another key concept which helps keep tasks meaningful, manageable and under control. General guidelines of a work package ensure that tasks are accurately estimated, assigned and tracked. It makes a project manager's job a little less arduous when a work package is of correct size.
Chapter 5 Risk Management
It is both astute and ironic to read Verzuh's ideas about risk management in today's economic scenario. Uncertainty is the buzz word everywhere. Most people are trying to deal with multiple risks at workplace, home ownership, stock portfolio and general market risks. To stay competitive and profitable, organizations have to systematically manage risks that may arise at various stages of a project. Project management essentially is risk management. A project manager has to constantly look for and be prepared to manage uncertainty. He or she identifies and monitor the known risks as the project progresses. Risk planning is constantly updated as some known risks don't materialise and some unknown risks may occur. Statement of work , budget , schedule , progress and other deliverables change in attempting to manage risks.
The risk management framework lays down the four steps of the process which may be repeated throughout the project. The project manager has to identify and prioritize potential risks and review any previous risks. The next step is to develop a strategy to avoid or respond in case of each of the identified risks. Obviously high priority risks get more attention and focus than the routine and low priority risks.
Risk management comes with its own costs. Additional funding has to be reserved to respond in case a risk occurs.The fourth step involves implementation, continuous monitoring and communication to the stakeholders of the project.
Tuesday, February 10, 2009
Chapter 3 and Chapter 4
Chapter 3
Verzuh defines " stakeholder" in a very simple and straight forward manner. Anyone who participates and is impacted by the project is a stakeholder. Successful project management involves coordinating, guiding and satisfying all the stakeholders. A project manager faces a seemingly arduous, even impossible task of identifying, leading and managing the core project team and everyone else with vested interest/stake in the project. Stakeholders contribute to the project in terms of funding, expertise and authority.
Project manager is the central figure around which other stake holders revolve to achieve the goals of a project. Skills and techniques of project management enable him or her to balance the multi-faceted role, a project manager has to play. One of the main tasks a project manager has to perform is to identify all the stakeholders of the project including himself/ herself. The project manager has to ascertain his own scope of authority, reporting obligations, rules and expectations.
The other key stakeholders are the core project team, peripheral team members, functional management, sponsors and customers. The core project team members are responsible for doing most of the work . They provide skills, expertise, time and effort required to run and complete the project. The project team managers are decided in the planning stage of a project. The responsibilities, roles, level of involvement of all team members are documented in statement of work.
Verzuh defines " stakeholder" in a very simple and straight forward manner. Anyone who participates and is impacted by the project is a stakeholder. Successful project management involves coordinating, guiding and satisfying all the stakeholders. A project manager faces a seemingly arduous, even impossible task of identifying, leading and managing the core project team and everyone else with vested interest/stake in the project. Stakeholders contribute to the project in terms of funding, expertise and authority.
Project manager is the central figure around which other stake holders revolve to achieve the goals of a project. Skills and techniques of project management enable him or her to balance the multi-faceted role, a project manager has to play. One of the main tasks a project manager has to perform is to identify all the stakeholders of the project including himself/ herself. The project manager has to ascertain his own scope of authority, reporting obligations, rules and expectations.
The other key stakeholders are the core project team, peripheral team members, functional management, sponsors and customers. The core project team members are responsible for doing most of the work . They provide skills, expertise, time and effort required to run and complete the project. The project team managers are decided in the planning stage of a project. The responsibilities, roles, level of involvement of all team members are documented in statement of work.
Another pivotal stakeholder is the customer who has the ultimate say in determining whether the project is successful or not. Customer provides financial resources for the project. So, it is important to accurately define a particular group as customer for the purpose of cost benefit analysis of the project.
Chapter 4
Every time a project begins, a new set of roles and responsibilities emerge. A firm foundation of of project specific rules has to laid. Project rules are created to address the following three factors:
1. Agreement by all stakeholders on the what the project has to achieve.
2. Scope of the project.
3. Management support.
The many stakeholders involved in the project i.e customers, management, project team need to agree on the documented goals, guidelines and rules of the project. It is a tough task to get so many parties to agree but it is impossible to propel the project off the ground without it. A project has to meet its stakeholder's expectations. These documented expectations become basic project rules.
The scope of every new project brings its own unique challenges. It has its own time and budget constraints. Overruns in terms of schedule and cost can pose a threat to a project. My capstone project deals with a situation wherein an organization despite having a unique as well as good quality product, is facing serious consequences because of cost overruns on its major ongoing projects.
Verzuh's example of 'Mission:Impossible' is an interesting example to launch into the subject of project charter. A project charter formally recognizes and announces the new project. It establishes expert and legitimate authority for the project. Customer and project sponsor are the best stakeholders to sign a charter. A significant change makes the existing charter obsolete and necessitates the issuing of a new charter.
SOW is probably a familiar document for all of us. It describes purpose, scope, goals, constraints and rules of a project. All stakeholders have to consider the statement of work, negotiate and modify it, if needed and finally agree to its contents.
The next step after the SOW is to prepare a responsibility matrix. This written document precisely defines the responsibilities of each party involved. It lists the major steps and activities of a project with appropriate stakeholder group and its authority.
Chapter 4
Every time a project begins, a new set of roles and responsibilities emerge. A firm foundation of of project specific rules has to laid. Project rules are created to address the following three factors:
1. Agreement by all stakeholders on the what the project has to achieve.
2. Scope of the project.
3. Management support.
The many stakeholders involved in the project i.e customers, management, project team need to agree on the documented goals, guidelines and rules of the project. It is a tough task to get so many parties to agree but it is impossible to propel the project off the ground without it. A project has to meet its stakeholder's expectations. These documented expectations become basic project rules.
The scope of every new project brings its own unique challenges. It has its own time and budget constraints. Overruns in terms of schedule and cost can pose a threat to a project. My capstone project deals with a situation wherein an organization despite having a unique as well as good quality product, is facing serious consequences because of cost overruns on its major ongoing projects.
Verzuh's example of 'Mission:Impossible' is an interesting example to launch into the subject of project charter. A project charter formally recognizes and announces the new project. It establishes expert and legitimate authority for the project. Customer and project sponsor are the best stakeholders to sign a charter. A significant change makes the existing charter obsolete and necessitates the issuing of a new charter.
SOW is probably a familiar document for all of us. It describes purpose, scope, goals, constraints and rules of a project. All stakeholders have to consider the statement of work, negotiate and modify it, if needed and finally agree to its contents.
The next step after the SOW is to prepare a responsibility matrix. This written document precisely defines the responsibilities of each party involved. It lists the major steps and activities of a project with appropriate stakeholder group and its authority.
Finally, a sound communication plan is laid out to effectively exchange information and provide feedback in an ongoing project. Disputes and conflicts often occur in the absence of a written communication strategy. The importance of communicating appropriate information to the right party in a timely manner can not be overstated.
Sunday, February 1, 2009
Chapter 1 and 2
Chapter 1
The first key idea from this chapter ( as well as the Chapter 2)differentiates a 'project' from the ongoing operations of an organization. A project is not repetitive. It is finite. A project may constitute of multiple smaller projects but they lead to a one time unique process. My project will result in a training module for the team leads and managers across the cross section of the company. The project management 101 training programs will be an ongoing process.
Dynamics of today's industry demand the use of project management skills in almost every workplace. Ever changing technology, ever increasing competition, changing business structures require the businesses to adapt at a much faster pace than it was in the past. The client for which I am producing the training program is facing pressure on all the above accounts. It can only survive and eventually hope to become profitable by monitoring and controlling cost, time and quality of its projects.
Chapter 2
The Project Environment
Traditional organizational structure has evolved to include the project managers alongside functional managers. Projects and ongoing operations require different managerial skills. It is easier and more predictable to manage ongoing activities which are repetitive in nature. Whereas the needs of a project are unique, dynamic and more challenging. The traditional staffing, general estimates of cost and schedules, traditional lines of authority and normal accounting practices cannot sufficiently support project managers. In my project, needs analysis showed clearly that the client organization was grappling with these challenges. Every time the regular quarterly reports showed cost over runs , it was too late to recover.
In chapter two, the author also puts forth the validity of project management applications in any industry. The techniques and methods from this discipline can be applied to technical, creative, financial, manufacturing and of course to management functions. Most projects are made up of multiple smaller projects transcending different functions and skill sets. A project follows its life-cycle regardless of its particular focus. In the project I am considering, the need for improving the quality with project management 101 exists among test writers, accounting staff, technical leads as well as finance and investments managers.
Project Management in a Changing World
The first key idea from this chapter ( as well as the Chapter 2)differentiates a 'project' from the ongoing operations of an organization. A project is not repetitive. It is finite. A project may constitute of multiple smaller projects but they lead to a one time unique process. My project will result in a training module for the team leads and managers across the cross section of the company. The project management 101 training programs will be an ongoing process.
Project management is definitely an art , which is being enriched by scientific techniques. Successful projects consist of agreement among team, client and management. A project has to have a controlled scope, clear plan, management support and constantly effective communication.Time, scope and resources of a project can only be managed efficiently by using science of management. In my project, it was essential that management of the company gets involved and support the requirement of a formal training program.
Dynamics of today's industry demand the use of project management skills in almost every workplace. Ever changing technology, ever increasing competition, changing business structures require the businesses to adapt at a much faster pace than it was in the past. The client for which I am producing the training program is facing pressure on all the above accounts. It can only survive and eventually hope to become profitable by monitoring and controlling cost, time and quality of its projects.
Chapter 2
The Project Environment
Traditional organizational structure has evolved to include the project managers alongside functional managers. Projects and ongoing operations require different managerial skills. It is easier and more predictable to manage ongoing activities which are repetitive in nature. Whereas the needs of a project are unique, dynamic and more challenging. The traditional staffing, general estimates of cost and schedules, traditional lines of authority and normal accounting practices cannot sufficiently support project managers. In my project, needs analysis showed clearly that the client organization was grappling with these challenges. Every time the regular quarterly reports showed cost over runs , it was too late to recover.
In chapter two, the author also puts forth the validity of project management applications in any industry. The techniques and methods from this discipline can be applied to technical, creative, financial, manufacturing and of course to management functions. Most projects are made up of multiple smaller projects transcending different functions and skill sets. A project follows its life-cycle regardless of its particular focus. In the project I am considering, the need for improving the quality with project management 101 exists among test writers, accounting staff, technical leads as well as finance and investments managers.
On the other hand, project managers have to be well versed with project environment, project specific business functions and technical skills. Success of a project is measured in its optimal achievement of time, budget and quality goals. Though difficult , it is possible to maintain a balance between these mutually dependent variables. For example, clients usually expect a simple but effective , cost efficient training module , delivered in time. It is the project manager's job to minimize any discrepancy between the realistic expectations and customer's perception.
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