Home - Project Management

1/25/2012

Is using project management methodologies enough to ensure a successful business? The simple answer is no. Successfully executing individual projects does not guarantee overall business success unless they are the right projects to meet the business objectives. Project selection is outside the scope of the project management purview. Controlling this selection and prioritization process is the precise purpose of Project and Portfolio Management (PPM). PPM focuses on generating strategic alignment to ensure that we collectively as a business are doing the right things to achieve success.

Complicating this effort is the element of time. As a portfolio of projects is established, each project is not started at a single point in time nor do they typically progress at the same rate. This places each project at unique phases throughout the portfolio’s lifecycle. What this means for the selection process is that it does not occur once. The process must be robust enough to manage the evolution of the portfolio; continuously re-synchronizing the individual projects with the outcomes the portfolio intends to achieve.

In future discussion we will elaborate on three key PPM systems essential to managing business alignment and introduce their methods, disclose how they can be individually leveraged and recommend ways to integrate them continuously to enable business success. Without systems such as these, organizations can often become unbalanced in their tactical approaches to success, under/over-utilized in their resource assignments and so focused on short term results that they lose sight of their strategic long term vision. Implementing these systems in your business will enable your projects to not only deliver their promised results, but also ensure those results are resources and time well spent in the pursuit of success.

Stay tuned to read how Portfolio Prioritization, Risk Management and Performance Monitoring can provide a framework upon which your organization can begin to mature. With these as the foundation for your PPM System you will see the tangible benefits this methodology can provide and accelerate the commitment to enterprise management concepts in a positive atmosphere. These systems are common in their ability to inform decision makers and evolve as business cycles shift while maintaining focus on the long term vision of leadership.

Posted at 1:10 PM by Mark Stoutt | Category: Project Management | Permalink | Email this Post | Comments (0)

1/9/2012

Project Reviews Round 2 – Using Project Reviews for the Smaller Projects

Project Reviews Round 2 – Using Project Reviews for the Smaller Projects: Project Reviews are generally used on a monthly or more frequent basis on larger, high profile projects to facilitate communication and resolve issues, but often smaller projects are left alone. However, Project reviews can be a great tool for keeping smaller, less visible projects on target and out of trouble. Project management, corporate management, clients, and other stakeholders should meet on a regular basis, such as monthly, to review the project's cost, schedule, and technical status. Reviews for these projects don't have to be long or detailed, but regular meetings will facilitate communication and improve accountability from the project team. How often do you get your project team together to review status reports?

Posted at 12:35 PM by Cherie Chance | Permalink | Email this Post | Comments (0)

12/19/2011

What’s the Point of Level of Effort Activities?

I am currently working on a demolition project that has good technical scope with a schedule of values. I have a few support activities that are categorized as level of effort (LOE) activities. LOE activities are typically support activities with no defined deliverable, which support other work. On this particular project, we have an LOE activity that is related to an activity that uses physical percent complete. In some instances, the physical percent complete of the discrete work activity and the LOE percent complete are not aligned. For best management of the project, does this give an accurate earned value? I would love to hear your thoughts and experiences with this.

Posted at 10:03 AM by Denise M. Hoomes | Category: Earned Value Management | Permalink | Email this Post | Comments (1)

11/10/2011

Iterative and Incremental Development with Agile

A traditional (waterfall) software development approach provides a highly structured and linear design process that relies heavily on detailed up-front planning where each phase must be completed before moving sequentially on to the next one.

One main disadvantage to this approach is there is no realization of any business value until the end of the project, in addition; you will rarely (if ever) return to a phase once it is complete. Therefore, there is only one opportunity to get it right and there is usually one large product integration at the end of a project. This type of big bang project delivery approach can increase risks and can lead to a product that does not meet evolving system requirements.

In contrast, agile utilizes an iterative and incremental framework for delivery where each iteration delivers a fully functioning increment of software. Basically, iterative development allows time for improving on what has already been developed, while incremental development breaks up the work into smaller chunks as they are integrated and adjusted as needed.

Rather than just continuing on with developing the next cycle of a product without feedback, an agile team will elicit customer response to software as it is delivered. This provides a powerful inspection and adaption loop for future product iterations and increments while reducing project risks and increasing customer satisfaction.

Posted at 8:49 AM by Gary A. Boruff | Category: Agile Project Management | Permalink | Email this Post | Comments (0)

10/25/2011

Integrated Value Engineering: Delivering Value Throughout a Project’s Lifespan

Value is defined by the ratio of Function to Cost (Value=Function÷Cost). People make choices every day based on perceived value. We think about value all the time, whether it is a major purchase such as a car or house, our next vacation destination or even choices as mundane as picking a restaurant or movie. Everyone wants to get the most "bang for their buck". The same holds true in business.

In the business realm, managers make value-based choices for everything from office supplies to construction projects. Different purchasing decisions have different definitions of value. For office supplies, value might be driven by the vendor's ability to provide same day or next day delivery, their selection of products, and of course, cost.

In contrast, construction projects tend to have a much more complex and multi-faceted definition of value. Not to mention the potential for significant financial consequences if the building, road, bridge or utility system doesn't perform as intended.

With the ultimate goal of obtaining maximum value, all phases of a construction project have critical decision points where outcomes can be contrary to that goal. Without a repeatable method to evaluate design and construction options, unnecessary risk may be incurred during the project lifecycle. To help minimize the risk associated with the decision making process, firms are implementing Value Engineering.

Value Engineering (VE) is the commonly used name for the systematic and structured approach used to improve projects, products and processes. Traditional VE efforts have historically been focused at either the project kickoff phase or the construction bid process phase of construction projects. These traditional approaches, while value-added, have some intrinsic failure modes that can be addressed by utilizing VE techniques during all phases of the project.

Construction Project Solutions, LLC (CPS), in partnership with Greene and Associates, has developed the Ci² Integrated Value Engineering approach for facility design and construction. The Ci² process integrates VE concepts across the entire project lifespan, from initial design through project close-out. The Ci² process supports decision making that aligns with both the project goals and overall business goals for everyone involved with the project. This ongoing evaluation process promotes the generation of value creating ideas at all phases of the project and ensures the ideas are evaluated and carried through the project.

To learn more about the Ci² Integrated Value Engineering approach for facility design and construction, please contact Construction Project Solutions at 865-474-9789.

Posted at 9:24 AM by Tim Monroe | Category: Project Management | Permalink | Email this Post | Comments (0)

10/10/2011

Two and Two Isn’t Four?

Using the store financial option in Primavera P6 can give you a great tool for managing and reporting your earned value information. This feature allows you to store your actual, planned and earned value information by your financial periods. This information is then available for reporting, and tracking. However, occasionally, your data can get "lost". You may notice when you sum the individual period data, including your 'this period' data, it doesn't equal your cumulative data. The data is stored in the database but not showing in any period. To fix this, you will need to go to the projects view and click on the calculations tab. Then uncheck the link actual and this period costs option (your project will need to be open), and recheck it. This will recalculate by subtracting all stored financial periods from the cumulative values for planned, earned and actual. This will relink the values and put any differences in the 'this period' fields.

Posted at 10:54 PM by Cherie Chance | Category: Primavera Tips | Permalink | Email this Post | Comments (0)

9/26/2011

Why Do Project Management Reviews?

Why do you need project reviews if you’re not having any issues on your project? I’ve seen organizations where this is viewed as a waste of time and resources in some organizations. However, the value of a regular project management review is tremendous in my opinion. Having a monthly review forces regular updates of project information, regular analysis of project status and is invaluable in communication of project issues, current and potential. A project review should have a standardized format for reports and a set time each month. Project financial, scope and technical status should be reviewed and any issues identified, documented, and communicated to upper management or clients as appropriate. For most projects, earned value analysis is appropriate on some scale and project managers should understand and explain variances which occur. The review should allow for honest dialogue between the project team and management and/or clients on project issues. Open discussion can eliminate potential issues, allow for early resolution of conflicts, identify new risks both positive and negative, and keep all stakeholders on the same page.

Posted at 6:18 PM by Cherie Chance | Category: Project Management | Permalink | Email this Post | Comments (0)

9/9/2011

How Can There Be This Many Percent Complete Options!

How Can There Be This Many Percent Complete Options!

A friend who is moderately new to Primavera P6 recently wanted to add percent complete to her activity layout. She was somewhat overwhelmed with the number of choices available. Here is a simplified look at what percent complete can mean in the Primavera world.

Activity Percent Complete - There are three options for activity percent complete. Each of these percent completes is calculated and available for each activity, the selection in the General tab indicates which one is tied to activity percent complete.

» Duration % Complete will calculate the activity percent complete as (Original Duration-Remaining Duration)/Original Duration*100. This can work for level of effort type work.

» Physical % Complete requires the user to update the percent complete manually. This allows you to reflect the technical percent complete of a task regardless of the duration. This percent complete should be based on an objective measure of the task's progress. Steps can be used to track individual components of an activity to help you calculate this.

» Units % Complete will calculate the activity percent complete by taking the actual units ((labor and non-labor)/(actual units (labor and non-labor) + the remaining units (labor and non-labor))*100. This will work for activities where the expenditure of resources against the forecast accurately reflects the progress of the task.

There are also other percent completes you can show in layouts and reports. Some of the more commonly used of these are:

» Performance % Complete is used to calculate earned value. This is calculated based on settings in the Earned Value tab of the WBS. It can be based on the activity percent complete, 0/100 or 50/50, milestones or a custom percent complete.

» Schedule % Complete shows how much of the activity should be completed based on the baseline's duration.

» Cost % Complete is calculated as (Actual Total Cost/At Complete Total Cost)*100.

» Cost % of Planned is calculated as the (Actual Total Cost/BL Total Cost)*100

» Steps % Complete shows the WBS percent complete based on the WBS Milestones that are assigned.

So, make sure when you are reporting percent complete in Primavera, you understand which value you are reporting and what it represents, and it can save you unnecessary problems.

Posted at 8:39 PM by Cherie Chance | Category: Primavera Tips | Permalink | Email this Post | Comments (0)

8/17/2011

Traditional Project Management vs. Agile Project Management

One of the main factors in determining a Project Management approach for a software development project is learning how to achieve a balance between predictability and responsiveness for a given organization. While each business domain shares similarities, each organization has its own culture, goals, and business drivers which define strategies for success.

Traditional Project Management (waterfall) approaches software development assuming that the events affecting a project's outcome are focused on providing long-range predictability as related to cost, schedule, and features. The complete project is planned up-front, often leaving very little or no scope for changing requirements. Generally, it is assumed that an optimal and predictable solution exists. Traditional approaches can work well when the risks are low and the technical scope and project definition are well known and not likely to change too often.

Agile Project Management emphasizes flexibility and responsiveness at the expense of predictability by focusing on continuous alignment and delivery of customer requirements through working software. Agile methodologies are based on rolling wave planning utilizing incremental and iterative delivery where the product features with the highest priority are developed first. By providing working software frequently in fixed time boxes (iterations), an Agile project can validate business value more rapidly than a traditional project approach. In addition, frequent customer feedback leads to an increase in overall product satisfaction by delivering results based on the overall vision and business value. Agile methods can work well on many types of projects, but are most effective where project risks are high and the project definition is continuously changing.

Posted at 8:29 PM by Gary A. Boruff | Category: Agile Project Management | Permalink | Email this Post | Comments (0)

8/1/2011

Troubleshooting Spread Data in P6

Another frequent question I hear from Primavera P6 users concerns time distributed, or spread, data and why it behaves the way it does. Here are a few things to think about when looking at spread data. First, there are several types of spread data available, make sure you understand what you are looking at. For example, an issue can be caused when someone is reporting what they believe to be the BCWS or baseline spread and instead are reporting the current budget spread for example. Cost and spread information available includes:

» Budget – Spread of the current budget across the planned dates

» Planned – Spread of the baseline budget across the baseline dates (planned or current depending on your settings

» Actual – Spread of the actual cost/units across either the current schedule dates or the stored financial periods, depending on your settings

» Remaining – Spread of the remaining cost/units across the current schedule

There are a number of things that can impact the spread data or cause unexpected reults. Here are the most common:

» Because P6 spreads costs based on units per time, if there are no units assigned, the associated cost will be spread in the first period of the activity.

» The budgeted spread and possible the planned spread (depending on settings) will use the planned dates, which may or may not equal your current dates.

» If you store actual data using financial periods, you will need to ensure you are spreading financial period actual cost, not just actual cost. Spreading actual cost will take the total actual cost and spread in over the duration to date.

» Using future bucket planning, using a resource lag, or editing resource dates will impact your spread.

» Primavera offers a lot of flexibility and valuable information concerning resource spreads, but there are a lot of variables which impact that data, so be sure and always double check the information before using it for decision making or submittal to your client. For more information about Primavera, PM training and project management/controls and process improvement, log on to www.managementsolutionsllc.com or call us at 865-963-0400. We have the expertise to help you succeed.

Posted at 4:01 PM by Cherie Chance | Category: Primavera Tips | Permalink | Email this Post | Comments (0)

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