Certificate IV in Project Management Practice Day 1: Project - - PDF document
BSB41515 C ERTIFICATE IV IN P ROJECT M ANAGEMENT P RACTICE BSB41515 Certificate IV in Project Management Practice Day 1: Project Initiation Course structure 8-day program Attendance sheet Active participation Assessment portfolio Initiating
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.1 INSTITUTE OF PROJECT MANAGEMENT
Day 1: Project Initiation
8-day program
Attendance sheet Active participation Assessment portfolio
Initiating projects Planning projects (2 days) Project leadership Project delivery & close
https://open.institute.pm
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.2 INSTITUTE OF PROJECT MANAGEMENT
Project frameworks
What is a project? Projects v business as usual Project methodologies
Opportunity definition
Project lifecycle The triple constraints Project concept canvas
Alternatives analysis
Alternatives identification Feasibility analysis Cost estimation
The business case
Quantifying outcomes Organisational risk Multi-criteria analysis
What is a project? Projects v business as usual Project methodologies
OPEN Unit 1: Project frameworks
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.3 INSTITUTE OF PROJECT MANAGEMENT
A temporary endeavour undertaken to create a unique product, service or result
OPEN 1.1
OPEN 1.2
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.4 INSTITUTE OF PROJECT MANAGEMENT
Routi
/ cy cyclic clic Temporary ary / / uniq unique
DISRUPTIVE CHANGE ORGANIC CHANGE
Establi blished r hed relations
ips Ne New & w & comple lex r x relati tionships
Ro Routine pl ine planning anning Si Signific ificant pl ant planning anning Base Based on
precedent Uncertai rtain pe n performanc rformance Se Self-fin
ancing Up-front f ront finance nance OPEN 1.3
OPEN 1.4
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.5 INSTITUTE OF PROJECT MANAGEMENT
How well does your organisation manage projects?
What are the benefits of a project methodology?
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.6 INSTITUTE OF PROJECT MANAGEMENT
Common language
Policies and processes Assets (templates) Definitions
Make quicker decisions
OPEN 1.8
Assures project delivery
Enables reliable estimates Optimises resources Reduces risk
Solve problems faster
OPEN 1.8
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.7 INSTITUTE OF PROJECT MANAGEMENT
Facilitates change
Changing personnel Changing requirements Changing environment
Realise opportunities
OPEN 1.8
Client satisfaction
Reduces investment costs Improves staff morale Enhances reputation
Keep promises
OPEN 1.8
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.8 INSTITUTE OF PROJECT MANAGEMENT
Knowledge base
Documents lessons learned Templates future projects Culture of project excellence
Leverage success
OPEN 1.8 OPEN 1.8
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.9 INSTITUTE OF PROJECT MANAGEMENT
Why do we document our projects? Can we ever over-document projects?
OPEN 1.9
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.10 INSTITUTE OF PROJECT MANAGEMENT
Project lifecycle The triple constraints Project concept canvas
OPEN Unit 1: Project frameworks OPEN Unit 3: Alternatives analysis
OPEN 1.5
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.11 INSTITUTE OF PROJECT MANAGEMENT
Reflect on a project you have recently contributed to How well did you (or the project team)…
…test the project concept with stakeholders? …plan the project? …manage change during project delivery? …capture and communicate lessons learned?
OPEN 1.6
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.12 INSTITUTE OF PROJECT MANAGEMENT
OPEN 1.7
When might a project have too much time or money?
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.13 INSTITUTE OF PROJECT MANAGEMENT
Doing the right project Doing the project right
OPEN 3.0 OPEN 3.0
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.14 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.1
Current v ideal state Link to the objectives of the organisation paying for it What outcomes / benefits do we need to have? What outcomes / benefits would be nice to have? What is out of scope? And when is the latest we can start? Estimate range ±30-50% Who do we need to get involved from Day 1? Authorise development of business case
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.15 INSTITUTE OF PROJECT MANAGEMENT
Upgrade office technology Improve efficiency and customer service Improve productivity Be scalable for growth Integrate with existing technology Enable new service channels Reduce energy costs Office furniture Telephones Start before end of financial year No more than 6 months to deliver $50,000 - $80,000 Office manager IT manager IT consultants
The boss wants to honour high performing project managers in
Prepare a project concept canvas for this opportunity
PRO TIP
Brainstorm benefits before you decide whether they are ‘must’ or ‘might’ have
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.16 INSTITUTE OF PROJECT MANAGEMENT
Alternatives identification Feasibility analysis Cost estimation
OPEN Unit 3: Alternatives analysis OPEN 3.2
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.17 INSTITUTE OF PROJECT MANAGEMENT
What is the optimal way to realise this
OPEN 3.2
Alternatives identification
Generating ideas
Reflection Brainstorming Secondary sources
Organising ideas
Lists Mind-maps Flowcharts
Alternatives analysis Threshold feasibility
Is this something people want? Is this something we can do? Is this something we can afford? Is this something we are allowed to do?
OPEN 3.2
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.18 INSTITUTE OF PROJECT MANAGEMENT
Identify five (5) alternative ways to realise the outcomes identified in the project concept canvas
OPEN 3.2
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.19 INSTITUTE OF PROJECT MANAGEMENT
Questions to ask
Do people want Option A more than Option B? Is it easier for us to produce Option A than B? Is Option A more affordable than Option B?
Other methods to use
Pros and cons SWOT analysis PESTLE analysis
OPEN 3.2
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.20 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.6
Analogous estimates Parametric estimates
Mean (average) Median Mode Three-point estimates
OPEN 5.5
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.21 INSTITUTE OF PROJECT MANAGEMENT
Past performance suggests that freighting a widget from New York to Hobart usually takes about 10 days; however, if the planets align correctly, it can arrive in as few as seven Once though, it actually took 25 days to arrive, and the project suffered as a result How much time should the project team build into their schedule to allow for the widget to arrive?
OPEN 5.5
Best case – 7 days Most likely – 10 days Worst case – 25 days
(tO + 4tM + tP)
(7 + (4 x 10) + 25)
OPEN 5.5
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.22 INSTITUTE OF PROJECT MANAGEMENT
We need to engage a consultant on a project, but don’t really know how much that is going to cost, so we reviewed similar projects to get a reliable estimate We found on a project of this type it usually costs around $7,500; although the true range of prices was $6,000 to $12,000 Using the three-point estimate formula, how much should the project team allow in their budget for consultancy?
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.23 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.7
Infrastructure (eg rent) Labour Materials Power & water Insurances Interfaces (eg IT)
Repairs & maintenance Operator training Upgrades / scalability Decommissioning
OPEN 3.7
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.24 INSTITUTE OF PROJECT MANAGEMENT
A new car costs $20,000 to purchase and $5,000 per year to
A second-hand car costs $5,000 to purchase and $10,000 per year to operate Which is the better option over two (2) years? Which is the better option over four (4) years?
Post-project revenue less ownership (outcome) costs
Profit / loss
Annualise – if possible – to enable comparison
What is the useful life of each alternative?
OPEN 3.7
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.25 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.7 OPEN 3.7
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.26 INSTITUTE OF PROJECT MANAGEMENT
Why is it important to accurately estimate financial costs and impacts?
What are the potential consequences of under-estimating? What are the potential consequences of over-estimating?
How accurate do we need to be in the business case?
Why is it important to accurately estimate project costs?
What are the potential consequences of under-estimating? What are the potential consequences of over-estimating?
How accurate do we need to be in the business case?
Actual
+10%
+20% Business case
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.27 INSTITUTE OF PROJECT MANAGEMENT
Quantifying outcomes Organisational risk Multi-criteria analysis
OPEN Unit 3: Alternatives analysis OPEN 3.8
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.28 INSTITUTE OF PROJECT MANAGEMENT
Knowledge / skills
Productivity
Stakeholder networks Brand / reputation Corporate culture Community well-being
Our organisation Our clients The community The environment
How can we measure these benefits?
How will we know if our project is a success?
OPEN 3.8
Identify potential impacts for the identified alternatives How will you measure these impacts if the project alternative is selected?
…# clients served / # widgets produced per hour? …customer satisfaction score (out of 10)? …staff turnover / training costs reduced by x%? …# net favourable social media mentions? …# safety incidents and near-misses
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.29 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.8 OPEN 3.8
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.30 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.9
What are the risks to the organisation of each alternative?
What are the risks to the organisation of doing nothing?
The risks to project delivery are analysed in the project plan
OPEN 3.9
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.31 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.9
OPEN 3.9
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.32 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.9
OPEN 3.9
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.33 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.9
OPEN 3.9
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.34 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.9
OPEN 3.9
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.35 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.9
Perform an organisational risk assessment for an awards night
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.36 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.10 OPEN 3.10
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.37 INSTITUTE OF PROJECT MANAGEMENT
Compare alternatives across common criteria Use standard scores for each criteria
Best score wins!
Criteria should be clearly defined by the organisation Criteria can also be weighted by the organisation
OPEN 3.10
Option Zero – Do nothing
Has no project cost
Option 1 - $2500 bonus
Will cost 2-5% of our program budget
Option 2 – Awards night
Will cost 10-20% of our program budget
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.38 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.10
Option 1 - $2500 bonus
Will increase our profit by less than 1%
Option 2 – Awards night
Will increase our profit by less than 1-2%
OPEN 3.10
Option 1: Improve org / stakeholder well-being by 1-2% Option 2: Improve org / stakeholder by 2-5%
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.39 INSTITUTE OF PROJECT MANAGEMENT
OPEN 3.10
OPEN 3.10
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.40 INSTITUTE OF PROJECT MANAGEMENT
It is recommended that detailed planning commence on Option B.
A complete project plan is to be presented for Board approval in four (4) weeks time The plan should continue the assumptions made in the business case, and include a detailed WBS, schedule, budget, stakeholder and risk registers and any other documentation deemed relevant by the PMO The PMO should also recommend at that time the appointment of a suitably qualified project manager and project steering committee If the assumptions of the business case are invalidated by the planning process, the board should be duly advised and a new course of action recommended It is proposed that a budget of $15,000 be allocated to planning the project
OPEN 4.1
Planning constraints
Time – key milestones Cost – high-level budget Scope – key deliverables Quality – acceptance criteria
Critical success factors
For example…
Resource availability assumptions Other project dependencies Key stakeholder relationships Known project risks
OPEN 4.1
https://institute.pm/free-project-management-resources/
BSB41515 CERTIFICATE IV IN PROJECT MANAGEMENT PRACTICE DAY 1.41 INSTITUTE OF PROJECT MANAGEMENT
What are some other criteria you could use to evaluate project alternatives?