Contemporary

Methods and
Tools of
Project
Management
Lecture 2
Project Management Life Cycle
S EQU E N CE O F FO U R PM LC
F I V E PRO C ES S ES M O D EL S
Project management life cycle is a
framework (model) comprising a ( PH A S ES )
set of distinct high-level stages
required to transform business
needs into working deliverables
(in an orderly and efficient
manner)

Scope Plan Launch Execute Close

Initiate Plan Control - Change Close out
Project Phases.
Scoping The Project
Scoping The Project

What will you do?

How will you know you did it?

Create Requirements Breakdown
Structure (RBS)

Assess completeness of requirements

Classify project in the landscape

Determine best fit PMLC model

Write POS
Project Success Criteria (or COS)

Cost, schedule, and specifications met External project – profit, loyal

customer, reference
Internal project - market share, new
Needs met, deliverables used, products, new technology
customer satisfied Increased readiness (lessons learnt),
team’s loyalty

Satisfaction, development, readiness

Requirements
Project goal
and solution

Requirement 1 Requirement 2 … Requirement n

Function 1. 1 Function 1. 2 Function 2. 1 Function n. 1 Function n. 2

Process 1. 2.1 Process 1. 2.2

Activity Activity
1. 2.2.1 1. 2.2.2

Feature Feature
What the product or process will do 1. 2.2.2.1 1. 2.2.2.2

How the product or process will work

Types of Requirements
Collect initial requirements from
stakeholders
Analyze requirements
Define and record requirements
Prioritize requirements
Functional requirements
Agree on and approve requirements
Non-functional requirements Trace requirements to work items
Query stakeholders after implementation on
needed changes to requirements
Utilize test management to verify and validate
system requirements
Assess impact of changes
Revise requirements
Document changes
Criteria of Good Requirements and
Specifications
Unambiguous – not subject to interpretation Unique set – each stated only once
Complete – nothing let out Normalized – should not overlap
Consistent – no conflicts, which also means Linked set – shows relationships
no duplication Complete – nothing let out
Modifiable – amendable to change Consistent – no conflicts
Traceable – to a customer need Bounded – specifies nonnegotiable
Verifiable – means provided to verify the constraints
requirement Modifiable – amendable to change
Configurable – traceable changes
Granular – right level of abstraction

ISO IEEE IEC (2018)

Requirements Examples
Functional Requirements

2 Functional Requirements VENDOR RESPONSE

2,1 Finance
2.1.1 Can your system handle multiple currencies (ie. GBP and Euro)? Yes
2.1.2 How are exchange rates managed (per bdx, per item, per qtr, per year, other)? Per month, per trading partner
2.1.3 Can we extract data into financial formats as required? (Ergo UK require specific formats to Yes, via Data warehouse
report to Ergo Germany [EFI/Platin] and GLISE [DEFNS])?
2.1.4 What financial KPI’s are provided? Profitability, triangulation, etc

Non-Functional Requirements

3 Non-Functional Requirements VENDOR RESPONSE

3,1 Overall system characteristics
3.1.1 Is there one single instance (hosted model) or separate instances (licence model) of There is one sinlge instance of the system (SaaS) with shards per customer or group of customers
the system?
3.1.2 Is the system multi-carrier and multi-currency ready? BinderCloud is multi-currier and multi-currency
3.1.3 What is the scalability of System:
3.1.3a · What is the target size of your clients / annual volume of transactions / etc.? BinderCloud stores above 5 mln transactions annually and is able to scale to 100 million of
transactions annually
3.1.3b · What is your target for Performance management? Response time less than two seconds to any requests
How To Elicit (Gather) Requirements
Requirements Traceability Matrix
Id Requirement Acceptance Type Status Priority Related Work
criteria packages
Stakeholder Approved M
Business S
Solution Proposed C
Transition W

M – Must have Is anything that prevents forward movement

or progress from being made until it is
S – Should have
removed or otherwise resolved
C – Could have
W – will not have this time
Requirements Traceability Matrix (Sample)
Requirements management system

Item 1.2 – not bounded requirement

Sample Scope Statement
Activity Deliverable Acceptance Criteria Acceptance
sign off

Select one or several software Identification of

potential suppliers
List of suppliers Mailing list with suppliers’
details is ready
Project Board

application packages (components)

Distribution of ITT Receipt confirmation Confirmation of suppliers Project Manager
which can be used as the core of the received

required solution Suppliers’ support List of questions and List of questions and Project Manager
during the response answers answers complete
phase

Evaluation of suppliers’ Comparative evaluation Scores are calculated Project Board

responses matrix
Requirements have been elicited Selection of two Justification of selection Memo is written Project Board
shortlisted suppliers (per
component)
ITT (a document) has been produced
Review of components Review report Review scores are Project Board
at demonstrations calculated
(out of scope)
Contract negotiations Contracts Contracts are accepted by Project Board
with preferred suppliers TUL and suppliers
Out of Scope, Assumptions, Constraints
Is anything that does not fall within the Is used in project planning to define a factor
established scope of a project that is true, real or certain, even if there is no
proof
Additional tasks or changes to the
requirements, work items, tasks, activities
Resource Assumptions
Cost Assumptions
Schedule-Based Assumptions
Is limiting factors that can impact quality, Quality/Specification Assumptions
delivery, and overall project success Technology Assumptions
Location/Environment Assumptions
Concerns scope, quality, schedule, budget, One can create an assumptions log
resources, and risk
Project assumption is not project risk
There are business constrains and technical
constrains
Scope Creep
Utilize project planning
Manage scope and requirements
Engage the customer and stakeholders

No project scope Resurface the project scope

Unclear (ambiguous) project Change your control process
objectives and requirements Consider de-prioritization of deliverables
Unrealistic project objectives Reconsider project resources
Lack of change control
Overpromising on a product
Ineffective change control process
Too many stakeholders
Last minute customer feedback
Poor communication
Project Landscape
solution
clear not clear
Low complexity
Few scope change requests
Well-understood technology infrastructure
Emertxe Extreme Low risk
not clear Experienced and skilled project team
project project
Plan-driven

goal
Critical problem without a known solution
Previously untapped business opportunity
Traditional Agile Change-driven
clear High risk
project project
Client involvement is essential
PMLC Traditional Models

Monitor &
Linear Scope Plan Launch Control
Close
Traditional

Monitor & Next

Launch Close Close
Incremental Scope Plan Control incre
increment
increment
increment
ment project
 PMLC Agile Models
Monitor & Next
Plan Close
Agile

Launch Close
Iterative/ Scope Control itera
iteration iteration
iteration
iteration
tion project
Adaptive

Monitor &
Extreme

Scope Plan Launch Close Next Close

Extreme Control
phase phase phase
phase
phase phase project
Project Overview Statement
Project overview Project name Project No. Project manager

statement Sample project PSO-001 Vladimir Serbin

Problem/Opportunity

To restore our lost market share we must quickly develop our capabilities in the customized furnishing business but are unable to because our project
management processes cannot support the needs of the product development teams

Goal
Provide a fully mature and comprehensive portfolio of project management support services to all project teams in less than four years

Objectives
1. Provide off the shelf and customized project management training
2. Develop and document a standard project management process to support all our project teams with special focus on product development teams
3. …

Success Criteria
1. Over 50% of all PMs will receive basic training by the endo of 20xx Q3
2. Project quarterly success rates will increase from current 35% by 70% by 20xxQ4
3. …

Assumptions, Risks, Constraints (Obstacles, Impediments)

1. Business unit managers will resist change in their operating procedures
2. The customized furnishings market is not as strong as forecasted
3. Project managers will continue to practice their old ways

Prepared by Date Approved by Date

The Project Scoping Meeting
Create RBS Intro
Draft the POS Purpose of the meeting (facilitator)
Review COS (if one exists)
Description of the current state (client representative)
The client group Description of the problem or business opportunity (client
The PM and core members of the rep)
project team Requirement elicitation and decomposition (facilitator)
The facilitator group Discussion of gaps between the current and end states
Choose the “best-fit” project management approach to
Less than 15 people in total (for a close the gap (PM)
large project; significantly less for a Draft and approve the POS (group)
small one) Adjourn
Project Phases.
Planning The Project
Planning The Project

Scope What When Who

Schedule A1.1 June X
A.1.2 July Y
Resources

Budget

Uncertainty

Quality
What Sprint Priority
A1.1 1 M
A1.2 1 S
B2 2 M
C3 3 C
Project Performance Domains

Planning
Planning Performance Domain

The project progresses in an organized, coordinated, and deliberate manner

There is a holistic approach to delivering the project outcomes

Evolving information is elaborated to product the deliverables and

outcomes for which the project was undertaken

Time spent planning is appropriate for the situation

Planning information is sufficient to manage stakeholder expectations

There is a process for the adaptation of plans throughout the project based
on emerging and changing needs or conditions
Planning Overview And Variables

Estimate Development approach

Accuracy Project deliverables

Precision Organizational requirements

Acceleration Market conditions

Crashing Legal or regulatory restrictions

Fast tracking
Work Breakdown Structure (WBS)
Level
0 Project

1 PM AB CD EF

4
Outputs created as the
result of work done
during a project

Work packages
WBS for House

4.1 Drywall drawing

4.2 Drywall
2.1 Foundation 4.3 Hung drywall
2.2 Custom framing design
2.3 Wood
2.4 Assembled frame
2.5 Roof

3.1 Wiring design

3.2 Wiring
3.3 Installed wiring
Work Package Detail

Work Package Detail

Start date Project: <Name> Work Package: <WP Name>
Finish date Description: Deliverable(s):
Dependencies Input(s):
etc.…
Activities (Tasks) Resource Expected Cost
duration
Activity (Task) 1 A 8h $700
Work which must be completed to create a
work package Activity (Task) 2 A 8h $700

Effort, duration, people, and physical resources Activity (Task) 3 A 16 h $1400

A $2800
WBS Template

Efforts,
person-
ID Work item/Activity/Task Start Date End Date hours Material resources (list)
1. Project management
1.1. Project Scope
1.1.1. Success criteria
1.1.2. RBS
1.1.3. Scope formulation
1.1.4. Project Overview Statement
1.1.5. Project Scoping Meeting
1.2. Project Plan
1.2.1. WBS
1.2.2.
Estimating

Range
Accuracy
Precision Low accuracy, high precision
Confidence
Estimating (2)

Point estimate, single number Cycle time and throughput

Range, probability, probability distribution Key deliverable dates

Budget estimates

Absolute – number Add contingency to time and funds

Relative – planning poker, story points (proxy measures)

Scheduling (Predictive)

Predictive or adaptive Crashing – adding people, overtime, paying to expedite

deliveries

1. Decompose the project into specific activities Fast-tracking – parallel performance when normally they
2. Sequence them and define dependencies are sequential
3. Estimate the effort, duration, people, and physical
resources required to complete the activities
4. Allocate people and resources to the activities based on Mandatory – contractually required or inherent
availability Discretionary – best practices or preferences
5. Adjust the sequence, estimates, and resources until and External – between project and non-project activities
agreed-upon schedule is achieved Internal – between one or more project activities
Types of Dependencies

A logical relationship in which a successor activity

cannot start until a predecessor activity has finished

The logical relationship in which a successor activity

cannot finish until a predecessor activity has finished

A logical relationship in which a successor activity

cannot start until a predecessor activity has started

A logical relationship in which a successor activity

cannot finish until a predecessor activity has started
Scheduling. Definitions

Longest sequence of activities from start to finish date The latest possible point in time when the activity can
of the project be completed without violating schedule or delaying the
project end date

The earliest point in time when the activity can begin

The amount of time an activity can be delayed from its
early start date without violating schedule or delaying
The earliest point in time when the uncompleted activity the project end date
can be completed

The amount of time an activity can be delayed without

The latest possible point in time when the activity can delaying the early start of any successor or violating
begin without violating schedule or delaying the project schedule
end date
 25 C 35 Product upgrade
Scheduling Produce B has total float
prototype
5 B 25 10
C, D have free float
A critical path method for calculating
the early start and early finish dates Acquire
from the project start prototype 35 45
materials
0 A 5 20 15 E 25 45 G 70
A critical path method for calculating Determine
the late start and late finish dates
through the schedule model from the new 15 35 Design Perform
project end date product graphics sales calls
features 5 D 15 10 25
5
Design
0 5 marketing 35 45 45 70
campaign 15 F 45
10
ES EF

5 15 Conduct
marketing Activity
https://www.youtube.com/w 30 Duration
atch?v=PEqT7ros31s
15 45 LS LF
Gantt Chart Example
PERT, Lead, Lag

Developed in the 1950s A modification of the logical relationship that allows an

acceleration of the successor activity

Optimistic
A modification of the logical relationship that imposes a
Most likely delay of the successor activity

Pessimistic

(Optimistic + 4 * (Most likely) + Pessimistic) / 6

Gantt Chart Example (2) lag lead
Milestones
Clarify team priorities

Provide a good overview of progress

Provide a decisive way to achieve project goals

Milestones Examples
Customer approved the contract Project approved
Tendering the construction contract finished Project planned
Permissions secured Project funded
Funds secured Design approved
The site acquired Team assigned
etc. Vendors signed

Requirements gathered Requirements approved

Development planned Critical tasks completed
First release ready KPI reached
First release accepted by the users Customer feedback received
First release deployed
First release is in production
Testing done
Defects fixed
Project completed
Milestone Schedule
Implementing an electronic record system for a hospital

Milestone Completion Stakeholder Acceptance Criteria

date
Needs assessment 28 February Ops mgmt List of needed features
Hardware selection 15 April Ops mgmt, HW choice with contract
CIO
Vendor selection 30 May Ops mgmt Vendor choice with contract
Installation and configuration 15 July SME, IS dept Functional SW in test environment
head
Conversion 31 August SME, IS dept All data converted
head
Testing 15 October SME, IS dept Sign off on test
head
Training 30 November Ops mgmt., Sign off on training
HR
Planning Change
Change Request Form
The approved project plan mainly consisting of scope, Ref: Originator: Project:
schedule, and cost Status: (S,C,R,A)
Date
Description of change:
Change control is the process through which all Why needed:
Impact on project scope:
requests to change the approved baseline of a project, Impact on deadline dates:
programme or portfolio are captured, evaluated, and Impact on budget:
acted upon Impact on quality:
Impact on risk:
Impact on team:

A formal written request or proposal to recommend Date approved:

changes to any project planning component, such as Project manager Sponsor Customer
document, deliverable or baseline
____________ ____________ ____________
Budget
Costs estimation

Fixed – remain the same regardless of the size or

volume of work
Variable – vary directly with the volume of use
Direct – only occur because of the project (labor or
other direct costs)
Never lie to themselves Indirect – needed to keep the organization running, not
Never lie to anyone else associated with any specific project (then allocation)
Be conservative but do not exaggerate Recurring – repeat as work continues
Nonrecurring – happen only once during the project
Regular – occurred at normal work hours
Expedited – paid overtime or extra charges from
suppliers for rapid delivery
Methods of Estimating Costs. Issues

Use historical data from a similar activity or a project Lack of supportive details
Need to know how and to what extent this project Assumptions and constraints should be considered
differs from the previous one Variations
Normal (within 3 sigma)
Special cause (handled as risks)
An algorithm is used to calculate cost or duration based Time value of money and international currency
on historical data and project parameters fluctuations
Requires more details that analogous

Low level estimates are aggregated into total quantity

for the component work
Most detailed, time consuming, and potentially most
accurate
Determine Budget

Efforts, Cost of Total

person- person- costs of Cost of
ID Work item/Activity/Task hours hour labor materials* Total costs
1. Project management 62 62 000 ₽ 3 000 ₽ 65 000 ₽
1.1. Project Scope 32 32 000 ₽ 3 000 ₽ 35 000 ₽
1.1.1. Develop Success criteria 5 1 000 ₽ 5 000 ₽ - ₽ 5 000 ₽
1.1.2. Create RBS 15 1 000 ₽ 15 000 ₽ - ₽ 15 000 ₽
1.1.3. Formulate Scope 2 1 000 ₽ 2 000 ₽ - ₽ 2 000 ₽
1.1.4. Create Project Overview Statement 3 1 000 ₽ 3 000 ₽ - ₽ 3 000 ₽
1.1.5. Hold Project Scoping Meting 6 1 000 ₽ 6 000 ₽ 3 000 ₽ 9 000 ₽
1.1.6. Write Project Scoping Meeting Minutes 1 1 000 ₽ 1 000 ₽ - ₽ 1 000 ₽
1.2. Project Plan 30 30 000 ₽ - ₽ 30 000 ₽
1.2.1. Develop WBS 15 1 000 ₽ 15 000 ₽ - ₽ 15 000 ₽
1.2.2. Develop Schedule 15 1 000 ₽ 15 000 ₽ - ₽ 15 000 ₽

* including external services. In this example - cost of renting a room for the meeting
Cost Schedule
W1 W2 W3 W4 W5 W6 W7 W8
ID Work item/Activity/Task
1. Project management 65 000 ₽
1.1. Project Scope 35 000 ₽
1.1.1. Develop Success criteria 5 000 ₽ 5 000 ₽
1.1.2. Create RBS 15 000 ₽ 15 000 ₽
1.1.3. Formulate Scope 2 000 ₽ 2 000 ₽
1.1.4. Create Project Overview Statement 3 000 ₽ 3 000 ₽
1.1.5. Hold Project Scoping Meting 9 000 ₽ 9 000 ₽
1.1.6. Write Project Scoping Meeting Minutes 1 000 ₽ 1 000 ₽
1.2. Project Plan 30 000 ₽
1.2.1. Develop WBS 15 000 ₽ 15 000 ₽
1.2.2. Develop Schedule 15 000 ₽ 15 000 ₽

1 2 3 4 5 6 7 8
Total costs of the week 20 000 ₽ 14 000 ₽ 31 000 ₽ - ₽ - ₽ - ₽ - ₽ - ₽

1 2 3 4 5 6 7 8
Accumulated costs 20 000 ₽ 34 000 ₽ 65 000 ₽ 65 000 ₽ 65 000 ₽ 65 000 ₽ 65 000 ₽ 65 000 ₽
Costs Schedule (Graphs)
Other Planning Items
Checking Outcomes – The Development
Approach
Outcome Check
The project progresses in an organized, A performance review of project results against the project baselines and other measurement
coordinated, and deliberate manner metrics demonstrates that the project is progressing as planned. Performance variances are within
thresholds
There is a holistic approach to delivering the The delivery schedule, funding, resources availability, procurements, etc. demonstrate that the
project outcomes project is planned in a holistic manner with no gaps or areas of misalignment
Evolving information is elaborated to product Initial information about deliverables and requirements compared to current information
the deliverables and outcomes for which the demonstrates appropriate elaboration. .Current information compared to the business case
project was undertaken indicates the project will produce the deliverables and outcomes it was undertaken to deliver
Time spent planning is appropriate for the Project plans and documents demonstrate that the level of planning is appropriate for the project
situation
Planning information is sufficient to manage The communications management plan and stakeholder information indicate that the
stakeholder expectations communications are sufficient to manage stakeholder expectations

There Is a process for the adaptation of plans Project using a backlog show the adaptation of plans throughout the project. Projects using a
throughout the project based on emerging change control process have change logs and documentation from change control board meeting
and changing needs or conditions that demonstrate the change control process is being applied
Project Phases.
Launching the Project
Tools, Templates, and Processes

Problem solving
Decision making
Conflict resolution
Consensus building
Team meetings
Collaborative
Project Team
Functional, Project and Matrix Organizations
Project Organization M I X ED

Customer organization
Traditional Agile

Project manager

Agile team
Selected PMI Roles
PROJECT SPONSOR PROJECT MANAGER PROJECT TEAM
Project Roles COMPLEX PROJECT

TRADITIONAL PMI PROJECT

Approve and represents the business interests

Establishes the expected business value for the project

Same as a traditional project manager

Owner of the deliverables

Technical expert responsible for development efforts

Functional or business expert responsible for product

definition
The Complex Project Team
Project
executive

Core team
Sponsor
supports supports

Process Product
Co-manager Co-manager
advises advises Business

manage

manage
Business systems
engineer analyst

Development team collaborates

Client team lead
lead
coordinates

coordinates
collaborates
Development task
Client task leads
leads

collaborates
Development team Client team
members members
Client Involvement

Lack of it is #2 most critical for project failure Team shall change their attitude – frequent feedback
(poor planning is #1) is a way

Greater clarity of client requirements Demonstrate alternatives and constrains

No (or small) delays with response
Less financial and resource wastage
Early feedback (moving target) Always use the language of the client

Maintain a continuous brainstorming culture

Client participates in all decisions and changes to
the requirements and plans for achieving them Establish an open and honest team environment

Use a co-project manager model

Desired Project Manager Behaviors
Honest decisions, protecting people, defending core Understanding project scope, cost estimates, controlling
values, leading change, maintaining trust, sowing respect, costs, reporting variances
etc.

Learning customer expectations, insisting project

Leading the chartering process, coordinating project decisions based on facts, , leading quality assurance
plan and execution, balancing stakeholders, etc. efforts

Handle scope by understanding wants and needs, Handle human resources, attracting and retaining good
determining real requirements, disallowing scope creep people, nurturing professional growth, developing a self-
managed team and creating the sense of urgency

Leading schedule development, understanding resources

and logistics, PDLC, key milestones and making schedule Through writing, actively listening and speaking
decisions articulately, negotiating, working through conflict
Team Evolution
TUCKMAN MODEL

Low familiarity among the team

Individual roles are not clear
Emphasis on collective goals

Interdependence of members
Manage differences and conflict
Focus on consensus-building

Participation and empowerment

Commitment to team goals
Roles and responsibilities

High mutual trust

High commitment
Self-managed team
Belbin Team Model
Know vs Do

Soft skills are more important than hard skills in project

management, any managerial job or entrepreneurship
Soft Skills
Hard Skills In Project Management
Some Other Skills
SYSTEM THINKING

DECOMPOSITION

P R I O R I T I Z AT I O N
( M U LT I - TA S K I N G ,
TIME MANAGEMENT)

E S T I M AT I O N
System Thinking
Decomposition

Recursive

Data decomposition

Exploratory

Speculative

Assembly

Functional
Prioritization

Must have – Should have – Could have – Will not

have (this time)
Project Performance Domains

• Team
Team Performance Domain

Shared ownership

A high-performing team

Applicable leadership and other interpersonal skills

demonstrated by team members
Project Team Management And Leadership
Common Aspects Of Team Development
Project Team Culture
High-Performing Project Teams
Leadership Skills
Interpersonal skills
Checking Outcomes - Team Performance
Domain
Outcome Check

Shared ownership All project team members know the vision and objectives. The project team
owns the deliverables and outcomes of the project.

A high-performing team The project team trusts each other and collaborates. The project team adapts
to changing situations and is resilient in the face of challenges. The project
team feels empowered and empowers and recognizes members of the
project team
Applicable leadership and other Project team members apply critical thinking and interpersonal skills. Project
interpersonal skills demonstrated team member leadership styles are appropriate to the project context and
by team members environment.