Managing Projects - CERN Indico

Part e

Managing Projectswith

Pierre Bonnal & Thijs Wijnands version1.7

Project ManagementWhat are we going to see together?

Project Team

Study Team

InitiatorsProject Board

ProjectManager

Lifecycle

Roles

Study Leader

Project Stakeholders

FINALIZECOMMISSIONBUILDDESIGNSTUDYINITIALIZE

Processes

ProjectRoadmap

ProjectProposal

ProjectMngt Plan

Coord.Schedule

ProgressReport(s)

WBS& RACI

ArtefactsLaunching a project

Finalizing a project

Ensuring quality

Reporting progress

Defining requirements

Handling issues

Managing risks

Planning & schedulingCosting

Reqts.Register

RiskRegister

Budget

PBS

CostEstimate

Close-outReport

IssueRecord(s)

6

Project Planning & Scheduling

Project Planning & Scheduling

Why?

1 to set a reference2 to assess uncertainties3 to follow up progress

Typology

2 types of project schedules

Master Schedule~ Summary Schedule

MasterplanCalendrier directeur

Coordination Schedule~ “PERT”, Gantt chart

Activity networkCalendrier de coordination

Strategic levelThe whole projectIntuitive approach

Tactical levelOne or a few phasesAnalytical approach

One page/slideCan be in the Project Roadmap

Several pagesCan be in the PMP


Initiators

Master ScheduleWhen and which effort?

Master Schedule preparation

Master Schedule (re)validation

Project Board

Master Schedule updateStudy Team

Master Schedule updatesProject Team


Coordination ScheduleWhen and which effort?

Study Coordination Schedule* preparation (if needed)Study Team

Project Coordination Schedule* updatesProject Team

Study Team

Project Coordination Schedule* preparation

* incl. PBS, WBS, LoA (list of activities), RBS, RACI matrix

Master Schedule

6.1

MayAprilMarchFeb.Jan.Dec.Nov.Oct.Sep.

BRZ•KITE project launched

CDR released Perform Basic Design

Perform Engi neering Design TDR released

Make & Test PrototypeSet Supply Chain

Perform Detailed Design of Manufacturing Facility Procure Equipment & Tooling

Perform Civil Engineering WorksInstal & Commission Equipment & Tooling

Ramp-up Production1st batch ofkites shipped

6.2

Coordination Planning & Scheduling

Coordination Planning & SchedulingA three-step process

q Identifying the project activities

w Identifying the resources available, estimating the resources required

a Gantt chartMicrosoft Project Gantt chart® ®

ProjectWizard Merlin Gantt chart® ®

The Work Breakdown Structure (WBS)

The RACI Matrix

e Scheduling the activities

The Coordination Schedule

Coordination Planning & Scheduling

3 possible approaches

Intuitiveapproaches

Analogicalapproaches

Analyticalapproaches

creativitytechniques Practice Standard

for Work BreakdownStructures

q Identifying the project activities

PMBOK Quintilianheptameter

-inspired

Coordination Planning & Schedulingq Identifying the project activities Ú analogical approaches

> Approach sold as systematic,but not that much!

> Global lessons learned collectedby the Project Management Institute

NASA's Work Breakdown Structure Handbook (NASA/SP-2010-3404)Project Management Institute's Practice Standard to Work Breakdown Structures

Coordination Planning & Schedulingq Identifying the project activities Ú analogical approaches

Project Management Institute's Practice Standard to Work Breakdown Structures

Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach

> Inspired from the Quintilian heptameter

Marcus Fabius Quintilianus(c. 35 – c. 100 CE) was a Roman

rhetorician from Hispania, widely referred to in medieval schools of

rhetoric and in Renaissance writing

quiswho

quidwhat

ubiwhere

quibus auxiliiswhich means

curwhy

quomodohow

quandowhen

1=! Describing the final deliverable(s)

The Product Breakdown Structure (PBS)

1=@ Deriving the Work Breakdown Structure (WBS) from the PBS

The WBS top nodes, then the WBS-matrix

1=# Generating the list of activities from the WBS-matrix

The activity portfolio

Work Breakdown Structure

6.2.1 INTERMEDIATEapproach

ADVANCEDapproach


What is an activity??a.k.a. work unit

] ≠ deliverable!

] consumes time

action verb (infinitive tense) + noun]

To avoid confusion, clever professional practices (e.g. MIL-HDBK-245B + appendix A) and severaltextbooks suggest to label activities as follow:

] consumes resources

] has start and end dates

] creates (a) deliverable(s)

] is measurable

] is assignable to one project participant

Some examples:Manage the projectPrepare PM documentsPerform detail design of wing surfaceSupply rope & strapsCFT for moulded ABS parts

An activity:

and only one!


What is an activity??An activity:

] consumes time Yes, but within certain limits!

] No definitive answer!

] No more than 5% to 10% of the project duration

] No more than 13 weeks (long lead projects)

] One or up to 1% of level-of-effort activities

What is the maximum duration?

] No definitive answer!

] But not more than 400 activities, otherwise difficult to manage

And how many activities on a coordination schedule?

activities vs. planned activities #748


What is a deliverable??a.k.a. result

] ≠ activity!

noun + verb at past participle tense]

Some examples:bzh-kite designedbzh-kite specifiedbzh-kite prototype testedbzh-kite manuf. facility commissioned

] ≠ product!e.g. the brz-kite

Deliverable is a term used [...] to describe a tangible or intangible object produced as a result of the project that is intended to be delivered to a customer (either internal or external).A deliverable could be a report, a document [...] or any other building block of an overall project. en.Wikipedia.org

] ≠ milestone!

6.2.2.1

WBS Top Nodes


Deriving the Work Breakdown Structure (WBS) from the PBS1=@

PBSBoM

WBS top nodes

Project management andsystem-level design activities

Development activities associated with sub-systemsand product components

A slightly refurbished PBS

System-level integration, validation, refinement and ramp-up activities

6.2.2.2

WBS-Matrix

Genericactivities

WB

S to

p no

des


Generating the list of activities from the WBS-matrix1=#

For each cell of this matrix,count how many activitiesare required to managethe project efficiently

1 One activityshall be planned

nA few activitiesshall be planned (cf. activity def.)

Sum < 400 act.

Man

age

the

proj

ect

Prep

are

PM d

ocum

ents

Perf

orm

bas

ic d

esig

nCF

T an

d aw

ard

cont

ract

Prep

are

spec

ifica

tion

Perf

orm

det

ail d

esig

nSu

pply

equ

ipm

ent

Neg

otia

te a

gree

men

t

Prep

are

cons

truc

tion

Do

eart

hwor

ksPo

ur c

oncr

ete

Do

2nda

ry w

orks

Do

last

fini

shin

gs

Cont

rol,

surv

eyTr

ansf

er to

ow

ner


Generating the list of activities from the WBS-matrix1=#Generic activities suited to a construction projectì

Man

age

the

proj

ect

Prep

are

PM d

ocum

ents

Perf

orm

mar

ketin

g/sa

les

activ

ities

Perf

orm

det

ail d

esig

n

Perf

orm

sys

tem

-leve

l des

ign

Perf

orm

IP /

pate

nt re

late

d ac

tiviti

esPr

epar

e pr

ocur

emen

t spe

cs /

orde

r

CFT

and

awar

d co

ntra

cts

/ pla

ce o

rder

Des

ign

and

set t

he s

uppl

y ch

ain

Prep

are

mak

ing

Mak

e, a

ssem

ble…

Verif

y, v

alid

ate…

Cons

truc

t, in

stal

l…

Refu

rbis

h…Co

mm

issi

on, r

amp-

up…


Generating the list of activities from the WBS-matrix1=#Generic activities suited to a NPD projectì

Genericactivities

WB

S to

p no

des

LoA


Generating the list of activities from the WBS-matrix1=#

1 2 11

11 1

1 3 11 1

1 1 111 1

2 1 11 4 11

1 21 1 3

2 1 1

2

3

4

5

6

7

8

9

1

B C D E F G H I J K L M N O PA

1 1 1 7 6 1 3 1 2 2 4 2 2 1 1 2 3 2 2 1 1 2 2 1 1 2 1 2 1 2 1 1 2 2 1 1 2 2 1 1

bzh·kiteFabricsCarbon rodsMoulded ABS partsRings (COTS)Rope & strapStorage bagPrinted material

Level

Mana

ge th

e proj

ect

Prep

are PM

docu

ment

sPe

rform

mark

eting

/sales

activ

ities

Perfo

rm IP

/pate

nt re

lated

activ

ities

Perfo

rm ba

sic de

sign

Perfo

rm de

tail d

esign

Prep

are sp

ecific

ation

/ ord

erCF

T / aw

ard co

ntrac

t / pl

ace o

rder

Prep

are m

aking

Make

, asse

mble…

Test,

valid

ate…

Refu

rbish

…Co

nstru

ct, in

stall…

Comm

ission

, ramp

-up…

= 59 WUs

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

CBA

WU ID PU ID Work Unit or Planned Unit Label100 Manage bzh-kite project101 Prepare bzh-kite project management documents102 Refine Breizh-Sports product planning103 Develop marketing plan for bzh-kite 010 Develop sales plan for bzh-kite104 Develop after-sale support plan for bzh-kite 011 Design and release launch materials 012 Design and release promotion materials 013 Facilitate field testing106 Refine industrial design of bzh-kite107 Perform basic design for bzh-kite 014 Manufacture and assemble pre-series bzh-kite108 Define the supply-chain for all bzh-kite components109 Define bzh-kite manufacturing/assembly scheme f process diagram110 Design bzh-kite manufacturing/assembly facility f plant layout

1

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

CBA

WU ID PU ID Work Unit or Planned Unit Label111 Perform detail design for bzh-kite fabrics f engineering drawings112 Choose materials for bzh-kite fabrics113 Identify suppliers for bzh-kite fabrics114 Prepare specifications for bzh-kite fabrics115 CFT/award contract for bzh-kite fabrics 015 Define/design equipment for bzh-kite fabrics related processes 016 Prepare specifications for bzh-kite fabrics equipment 017 CFT/award contract for bzh-kite fabrics equipment 018 Prepare making for bzh-kite fabrics equipment 019 Make/assemble bzh-kite fabrics equipment116 Choose materials for bzh-kite carbon roads117 Identify suppliers for bzh-kite carbon roads118 Prepare specifications for bzh-kite carbon roads119 CFT/award contract for bzh-kite carbon roads 020 Define/design equipment for bzh-kite carbon roads related processes

1

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

CBA

WU ID PU ID Work Unit or Planned Unit Label 021 Prepare specifications for bzh-kite carbon roads equipment 022 CFT/award contract for bzh-kite carbon roads equipment 023 Prepare making for bzh-kite carbon roads equipment 024 Make/assemble bzh-kite carbon roads equipment120 Perform detail design for bzh-kite moulded ABS parts 121 Identify suppliers for bzh-kite moulded ABS parts122 Prepare specification for bzh-kite moulded ABS parts123 CFT/award contract for bzh-kite moulded ABS parts124 Prepare/place order for bzh-kite rings125 Prepare/place order for bzh-kite rope & strap 025 Define/design fixtures for bzh-kite rope & strap related processes 026 Prepare/place order for bzh-kite components for rope & strap fixture 027 Prepare making for bzh-kite rope & strap fixtures 028 Make/assemble bzh-kite rope & strap fixtures126 Design storage bag for bzh-kite

1

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

CBA

WU ID PU ID Work Unit or Planned Unit Label127 Identify suppliers for bzh-kite storage bags128 Prepare specification for bzh-kite storage bags129 CFT/award contract for bzh-kite storage bags130 Design UG & SI for bzh-kite131 Identify suppliers for bzh-kite UG & SI publishing132 Prepare specification for bzh-kite UG & SI publishing133 CFT/award contract for bzh-kite UG & SI publishing 029 Perform tests of pre-series bzh-kite 030 Define/design equipment for bzh-kite final assembly processes 031 Install bzh-kite manufacturing/assembly facility equipment 032 Refine bzh-kite manufacturing/assembly processes 033 Refine bzh-kite manufacturing/assembly quality assurance processes134 Train bzh-kite manufacturing/assembly facility work force 034 Commission bzh-kite manufacturing/assembly facility

The list ofActivities

(~Work Units)level n

> Work packages = level 1 of the Work Breakdown Structure

> Activities = the leaves ( ) of the WBS (from level 2 to level 6 max.)

> There is no requirement to have all activities at a same level!


the Project

the WorkPackages

Sub-WP'sor CWP's

(Contractor WP)

level 0

level 1

WBS


WorkBreakdownStructure

ProductBreakdownStructure

PBS RBSWBSGenericActivities

ResourceBreakdownStructure

BoM

Bill ofMaterials

List ofActivities

Project Breakdown Structure

OrganisationalBreakdownStructure

OBS

to be movedto facility, itemand/or assetmanagementsystems afterthe project iscompleted

CBS

CostBreakdownStructure

RACI Matrix

6.2.3

w Identifying the resources available, estimating the resources requiredCoordination Planning & Scheduling

2=! Identifying the resources that are available

The Resource Breakdown Structure (RBS)

2=@ Estimating the resources that are required

See section dedicated to Project Costing

2=# Assigning resources to activities

The RACI Matrix

2 types of resources

Renewableresources

Non-renewableresources


2=# Assigning resources to activities Ú RACI Matrix

RBS

List

of

acti

viti

es

RIs required

XExecutes

FFollows up

IIs informed

HProvide help

for each cell of the matrix, resourceimplication is elicited



RIs required

XExecutes

FFollows up

IIs informed

HProvide help

XIs responsible

F

X

F

X

F

Participateto decisions

X

F

I

H

X

F

I

H

X_

F_

I-

H_

Only one per row



XIX

F XI I

II

RFFF

XX

I I

II I RFFF

XX

XI

XF

XXXXH

HII H

RBS

List

of

acti

viti

es

The purpose of this RACImatrix is twofold:

1. identifying the required resources (‘X’,‘R’ and sometimes ‘F’ and ‘H’)

2. organizing information circulation (mailing lists)

MicrosoftExcel spreadsheet

®

®

Coordination Schedule

6.2.4

3=! Estimating the duration of the activities

Defining technical constraints between activities3=@

If required, defining resource constraints3=^

If required, defining temporal constraints3=$

Coordination Planning & Schedulinge Scheduling the activities

If required, getting rid of loops3=#DSM (Design Structure Matrix)

Calculating earliest/latest start/finish dates, floats + critical path(s)3=%PDM (Precedence Diagramming Method) + Gantt Chart

RCPS (Resource-Constrained Project Scheduling) + Gantt Chart

Calculating (earliest) start/finish dates and floats3=&

Project Costing

Why?

1 to set a reference2 to assess uncertainties3 to follow up progress

Project CostingA three-step process

q Estimating the resources required to perform the project

w Budgeting the resources allocated to the project

The (project) Cost Estimate

The (project) Budget Document


Initiators

Project CostingWhen and which effort?

Preliminary Cost Estimate (study + project) preparation

Budget Document (re)validation

Project Board

Cost Estimate (project) refinement/update

Study Team

Cost Estimate + Budget Document updatesProject Team

Initial Budget Document (study + project) preparation

Budget Document (project) refinement/update

(Project) Cost Estimate

7.1

Project Costing

4 families of cost estimating approaches

Globalapproaches

Modularapproaches

Detailedapproaches


the project is analysed as a whole estimates donefor each activity

top-downanalogical

parametric(Cost Estimation

Relationship)

bottom-upanalytical

Intuitiveapproaches

rules-of-thumb

Project Costingq Estimating the resources required to perform the project

DECOMMISSIONOPERATE & MAINTAIN

FINALIZE

COMMISSIONBUILDDESIGNSTUDYINITIALIZE

t

incomes

expenses

Which costs (and incomes) to take into account??

projectfront-end

costs

operations andmaintenance

costs

dism.costs

development costs


Which costs to take into account??

Services

Renewable resources

RESOURCES

Tooling

Vehicles

Space

Equipment*

EquipmentParticipantsInternal

External*

External*

Goods In-kindboth

Equipment

Financial

Non-renewable resources

Goods

Services

both

UtilitiesWater

Sewage

Energycontractsagreements

workload currency(person∙week, person∙month, etc.)

monetary currency(CHF, EUR, GBP, USD, JPY, etc.)


Which costs (and incomes) to take into account??

Only chargeable costs shall be considered !]

Cash flows that are distorded (i.e. suppressed or modified)]

Cash flows that are generated by the project]

Past or irrecoverable costs: no!]

Renunciation costs: yes!]

Unquantifiable costs: no!]

Cash flowsof the project =

Cash flowsof the organisation

with the project−

Cash flowsof the organisationwithout the project

These costs will existwhatever the decision

E.g. the consequence of stoppinga project that is already on-going

Benefits sometimesreplace incomes

Project Costing

Global approaches


1=! Estimating with global approaches

Linearregressions

Chiltonlaw

Freimanprinciple

Distanceweighing

and from tables


Dealing with price escalation?

weighing coefficients so that:

where

appropriate economical indices


Dealing with price escalation?


Dealing with location factors?


1=@ Estimating with modular approaches

Project cost as a function of several sizing parameters:

Software:

TruePlanning® [PRICE System] (www.pricesystems.com)>

where are the sizing parameters

Cost+ [3f] (www.3f-fr.com)>COCOMO for IT projects (csse.usc.edu)>

Handbook:

ISPA (International Society of Parametric Analysts)Parametric Estimating Handbook (www.ispa-cost.org)



FINALIZE


t

incomes

expenses

1=# Estimating with detailed approaches

projectfront-end

costs

operations andmaintenance

costs

dism.costs

development costs

PBS WBS

does not exist that muchin scientific facilities!

does not exist that muchin scientific facilities!

past andirrecoverable

costs

past andirrecoverable

costs



FINALIZE


Which accuracy can be obtained??

FeasibilityStudy

OpportunityStudy

BasicDesign

DetailedDesign

Global Modular Detailed

±30% ±20% ±10% ±5%

ConceptualStudy

OpportunityStudy

SystemDesign

DetailedDesign

Global Detailed

±30% ±20% ±10% ±5%Detailed

Process industry projects

New product development projects

imprecision ≠ uncertainty!

deterministicnature

probabilisticnature



FINALIZE


How to deal with interest rates and future price escalation??

cost of money ≠ price escalation!

interest rates(financial concept)

inflation(economical concept)

All CF’s shall be set as if they were paid now!]

t2019now

In Cost Estimate and Budget, all figures in CHFnow

E.g. a payment to occur in 2019

± kCHF

± p·yr

Cost EstimateEditorial Process

Verification:> Some other Key Study (or Project) Participants+ some experts in the fields

> Authoring: Study (or Project) Manager+ a few Key Study (or Project) Participants

Validation:> Study (or Project) Manager

Typical Content

The figuresand theiraccuracy

The approach used (global, modular, detailed)The assumptions (incl. sourcing of economicalrates and indices)

A comprehensive

cost breakdown

is appreciated!

(Project) Budget Document

7.2

Project Costingw Budgeting the resources allocated to the project

BudgetDocument

CostEstimate

± kCHF

± p·yr

whichbecomes

kCHF

p·yr

#748

TAB orTotalAllocatedBudget

– +Logically:

MicrosoftExcel spreadsheet

®

®

Project Costingw Budgeting the resources allocated to the project

BudgetDocument

kCHFp·yr

#748

TAB orTotalAllocatedBudget

BAC orBudget atCompletion

PMR orProjectManagementReserve

WBSCBS Cost

BreakdownStructure

or

Budget DocumentEditorial Process

> Verification:

at CostCenterlevel

at WorkPackagelevel

Project Board

Project Manager

> Validation:

Some other Key Study (or Project) participants+ some experts in the field

> Authoring: Study (or Project) Manager+ a few Key Study (or Project) Participants

Study Manager

10 towers made of 8 bricks each of different colours and sizesTowers linked by 10 thin bricks

the ugly castle project

Searching for a brick of the right colour and size 5 secondsAdding a brick to another one or to an assembly 3 secondsPlacing an assembly on the green plate 6 secondsUnit prices of a brick & of a building plate 0.50 $ & 5.00 $Manpower costs 0.05 $/seconda = 7.15b = 0.53Figures from past projects

Chilton law


Your task: estimatingthe cost of this projectby various means


the ugly castle project

Searching for a brick of the right colour and size 5 secondsAdding a brick to another one or to an assembly 3 secondsPlacing an assembly on the green plate 6 secondsUnit prices of a brick & of a building plate 0.50 $ & 5.00 $Manpower costs 0.05 $/seconda = 7.15b = 0.53Figures from past projects

Chilton law


Your task: estimatingthe cost of this projectby various means

120100806040200

$

# bricks20 40 60 80 100 120 140

Project ManagementWhat are we going to see together?

Project Team

Study Team

InitiatorsProject Board

ProjectManager

Lifecycle

Roles

Study Leader

Project Stakeholders


Processes

ProjectRoadmap

ProjectProposal

ProjectMngt Plan

Coord.Schedule

ProgressReport(s)

WBS& RACI

ArtefactsLaunching a project

Finalizing a project

Ensuring quality

Reporting progress

Defining requirements

Handling issues

Managing risks

Planning & schedulingCosting

Reqts.Register

RiskRegister

Budget

PBS

CostEstimate

Close-outReport

IssueRecord(s)

[email protected] +41 22 767 5710 +41 75 411 2072

cern.ch/quality

cern.ch/openSE

cern.ch/go/8rMF

Managing Projects - CERN Indico

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