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PM Technical Concepts

The document provides an overview of project management technical concepts, detailing steps such as defining project scope, establishing priorities, creating a work breakdown structure, and integrating it with organizational structures. It emphasizes the importance of coding the WBS for information systems, developing project work plans, and estimating costs effectively. Additionally, it discusses project monitoring systems, earned value management, and common indices to track project progress.

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rutteralyssa3
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14 views31 pages

PM Technical Concepts

The document provides an overview of project management technical concepts, detailing steps such as defining project scope, establishing priorities, creating a work breakdown structure, and integrating it with organizational structures. It emphasizes the importance of coding the WBS for information systems, developing project work plans, and estimating costs effectively. Additionally, it discusses project monitoring systems, earned value management, and common indices to track project progress.

Uploaded by

rutteralyssa3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 31

An Overview of Project

Management Technical
Concepts
Step 1: Defining
the Project Scope

• Writeup to meet requirements


– Technical requirements
– Definition of deliverables
– Establish goals and objectives
– Limits and exclusions
– Quality control and assurance
– Monitor to measure progress

2
Step 2: Establishing Project Priorities

• Causes of Project Trade-offs

• Managing the Priorities of Project Trade-offs

3
Project Management Trade-offs
OK

NOT OK

OK OK

4
Step 3: Creating the Work Breakdown Structure

• Work Breakdown Structure (WBS)

5
Step 4: Integrating the WBS with the Organization

• Organizational Breakdown Structure (OBS)


– Depicts how the firm is organized to discharge its
work responsibility for a project.

6
Step 5: Coding the WBS for the Information System

• WBS Coding System

• Report consolidation at any level

7
Coding
the WBS

8
Information Needs

• Project status reports


• Deliverable issues
• Changes in scope
• Team status meetings
• Gating decisions
• Accepted request changes
• Action items
• Milestone reports

9
Developing the
Project Work Plan

• The Project Network


– A flow chart of the sequence,
interdependencies, and start and
finish times of each project activity
.
• Basis for scheduling labor and
equipment
• Enhances communication
Projectmanagement.com • Project duration
• Basis for cash flow analysis
• Identifies activities and
activities that are critical – the
Critical Path
• Aid to getting and staying on
plan
10
WBS/Work Package to Network

11
Free Slack (or Float) and Sensitivity

• Free Slack (or Float)

• Sensitivity

12
Extended Network Techniques

• Laddering

Slideplayer.com

• Lags

13
Factors Influencing the Quality of Estimates

Planning
Horizon
Other
Project
(Nonproject)
Duration
Factors

Quality of
Organization Estimates People
Culture

Padding Project Structure


Estimates and Organization

14
Developing An Improved Cost Estimate

Use people
familiar with
the tasks
Use several
Include a risk
people to make
assessment
estimates

Preparing
Make no Initial
Assume normal
allowance for Estimates conditions
contingencies

Assume tasks Use consistent


are independent time units

15
Estimating (cont’d)

• Types

– Top-down (macro)
slideshare

– Bottom-up (micro)

Rickie Hui

16
Top-Down and Bottom-Up Estimates

17
Estimating Projects:
Preferred Approach

• Develop the WBS


• Rough top-down estimates
• Bottom-up estimate
• Schedules and budgets
• Reconcile differences

18
Types of Costs

• Direct Costs

• Direct (Project) Overhead Costs

• General and Administrative Overhead Costs

Patriot

19
Contract Bid Summary Costs

Direct costs $80,000


Direct overhead $20,000
Total direct costs $100,000
G&A overhead (20%) $20,000
Total costs $120,000
Profit (20%) $24,000
Total bid $144,000

20
Structure of a Project
Information System

• Creating a project monitoring


system involves:

– Data collection (the metrics)

– How, when, and who?

eng2013.wikidot.com
– Analysis

– Progress reporting

21
Project Management Information System Overview

22
Development of an Earned
Value Management System

• Time-Phased Baseline Plan

• Earned Value Cost/Schedule System

23
Project Baselines

• Baseline (PV) purpose

• Costs included in baseline

24
Baseline and Tracking Gantt Charts

25
Project Schedule Control Chart

26
Cost/Schedule Graph

27
Some Common Indices to Monitor Progress
• Performance Indices

– Cost Performance Index (CPI)


• Where CPI = Earned Value/Actual Cost

– Scheduling Performance Index (SPI)


• Where SPI = Earned Value/Planned Value

28
Earned-Value Review

29
A Common Cost Forecasting Model: EACf

EACf = ETC + AC
ETC = work remaining/CPI = BAC-EV/(EV/AC)

30
Example Monthly
Status Report

31

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