PMpriniciples&practiceforManagers

1. Office of Innovations and Solution
ACB-1
Project Management
Principles and Practice for Managers
Presented by: Pat A. Eigbe, PMP®
Office of Innovations and Solutions, ATO-P
February 17, 2004

2. February 17, Pat A. Eigbe, 2
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

3. February 17, Pat A. Eigbe, 3
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

4. February 17, Pat A. Eigbe, 4
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.

5. February 17, Pat A. Eigbe, 5
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.

6. February 17, Pat A. Eigbe, 6
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.

7. February 17, Pat A. Eigbe, 7
Project Management Terms IV
 FAA standard wbs1-0.ppt
 WBS Dictionary 3.1
 Requirement to use FAA Standard
WBS – Mandatory

8. February 17, Pat A. Eigbe, 8
Project Management Terms V
 Deliverable – Tangible, verifiable work product or 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.

9. February 17, Pat A. Eigbe, 9
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 Project’s Scope is Assigned
to a Responsible Individual(s).

10. February 17, Pat A. Eigbe, 10
Project Management:
Relationship to Others Disciplines
Project Management
Knowledge and
Practice
General Management
Knowledge and
Practice
Application Area
Knowledge and
Practice
The PMBOK™
Figure is conceptual and overlaps are NOT proportionalFigure is conceptual and overlaps are NOT proportional

11. February 17, Pat A. Eigbe, 11
Systems Engineering/PM
Relationship – I
 PM Needs SE for
Integrated PM System Design
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

12. February 17, Pat A. Eigbe, 12
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 Quality
Specifications

13. February 17, Pat A. Eigbe, 13
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

14. February 17, Pat A. Eigbe, 14
PMI Certification
 What is PMP®
 What PMP®
is not
 PMP®
Value to Holder & Employer
 PMP®
Certification Process link – visit
 http://pm.act.faa.gov

15. February 17, Pat A. Eigbe, 15
PM Process Groups
Initiating
Processes Planning
Processes
Control
Processes
Executing
Processes
Closing
Processes
Project Information Flow

16. February 17, Pat A. Eigbe, 16
Start
Create Project Agreement/PD/SLA
1.5.1.5
PD/SLA OK?
Identify Project & Sponsor
1.5.1.1
Review/ Revise Plan (PMIP)
1.5.2
Execute Plan & Create Deliverables
1.5.3
Need Changes/
Corrective Action?
Deliver Final Deliverables/
1.5.4.5
Deliverables
Accepted?
Perform Post Project Evaluation & Prepare Close-Out report
1.5.5
Report
OK?
Project
Completed!!!
Plan OK?
No
Yes
Yes
No
Yes
No
No
Yes
No Yes
Create the Project Plan (PMIP)
1.5.2
Create Project Team & Team Contract
1.5.1.6
Monitor/Review Progress & Deliver Products
1.5.4
InitiationPlanningExecutionControlClosing
PM Process Flow

17. February 17, Pat A. Eigbe, 17
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

18. February 17, Pat A. Eigbe, 18
Planning Processes I
 Identify Life Cycle approach
Evolutionary (AMS 6101, Section 2.2)
Incremental
Waterfall
 Risk Management plan

19. February 17, Pat A. Eigbe, 19
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

20. February 17, Pat A. Eigbe, 20
Planning Processes III (Schedule
Development)
 Update & Decompose WBS
 Identify activities
 Sequence
 Estimate duration
 Estimate cost
 Allocate resources to work packages
 Baseline schedule

21. February 17, Pat A. Eigbe, 21
Planning Processes IV
 Risk management detail:
Identification
Analysis
Response
Procurement

22. February 17, Pat A. Eigbe, 22
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 Change Management plan

23. February 17, Pat A. Eigbe, 23
Performance Measurement Tools
 Variances
 Performance Indices
Schedule performance Index (SPI)
Cost performance Index (CPI)
 Earned Value Management System
(EVMS)

24. February 17, Pat A. Eigbe, 24
Earned Value Management System
Highlights
 What is EVMS
 Planning for EVMS
 Tracking & Analysis
 Elements of EV Analysis
 Project Cost & Schedule Forecasting
 EV Reporting

25. February 17, Pat A. Eigbe, 25
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

26. February 17, Pat A. Eigbe, 26
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

27. February 17, Pat A. Eigbe, 27
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

28. February 17, Pat A. Eigbe, 28
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

29. February 17, Pat A. Eigbe, 29
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 tangible deliverables
Measured by duration of time used e.g. 10
weeks support is 50% complete at 5 weeks

30. February 17, Pat A. Eigbe, 30
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

31. February 17, Pat A. Eigbe, 31
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

32. February 17, Pat A. Eigbe, 32
Elements of EV Analysis - II
 Cost Variance - Difference between
budgeted cost of an activity & actual cost of
that activity
CV = EV - ACWP
 Schedule Variance - Difference between
scheduled completion & actual completion
of an activity
SV = EV - BCWS

33. February 17, Pat A. Eigbe, 33
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

34. February 17, Pat A. Eigbe, 34
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

35. February 17, Pat A. Eigbe, 35
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

36. February 17, Pat A. Eigbe, 36
EV Reporting
 Interpret the output of EV calculations
 Take corrective action as necessary
 Recommend or take corrective action as
necessary

37. February 17, Pat A. Eigbe, 37
Control Processes I
 Coordinate and control changes to project
scope/requirements
schedule
budget
 Monitor and manage product quality
 Measure progress and report performance

38. February 17, Pat A. Eigbe, 38
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

39. February 17, Pat A. Eigbe, 39
Closing Processes
 Close out contracts
 Resolve any outstanding issues
 Document lessons learned
 Evaluate project
 Archive all project documents

40. February 17, Pat A. Eigbe, 40
Conclusion
 Defined Frequently used PM Terminologies
 Discussed Objectives of Adopting Project
Management Principles.
 Discussed PM Processes, Tools &
Techniques
 Discussed EVMS Overview
 Questions

41. February 17, Pat A. Eigbe, 41
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

42. February 17, Pat A. Eigbe, 42
Questions/Need Help?
http://pm.act.faa.gov
Pat A. Eigbe, PMP®
Ext. 5-7857
patrick.eigbe@faa.gov