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What is so special about managing Projects..?

Tuesday, May 26, 2009

How to Manage Scope Creep...?

Wants & Expectations of Stakeholders converted to Project Scope

Normally SCOPE CREEPS occur mainly on account of the fact that the key stakeholders WANTS and EXPECTATIONS were not read, understood, documented and converted to PROJECT SCOPE...!!

This GAP in the PROJECT SCOPE expected by STAKEHOLDER and that understood & provided by CONTRACTOR leads to SCOPE CREEP...!!

Biggest Blunder in Project Management....

No Stakeholder Analysis

Stakeholder analysis is seldom given importance in many projects which inturn leads to huge risks on landing up in project failures.

Stakeholder analysis deals with study of the following:

  1. Who are all stakeholders?
  2. Who are key stakeholders?
  3. What are their needs?
  4. What are their wants?
  5. What are their requirements and expectations?

By performing stakeholder analysis, all these needs, wants, requirements and expectations could be documented , understood and converted to Project scope, which forms the HEART of any PROJECT SUCCESS...!!!

Important Concept for Project Bidding...

Project Life Cycle Cost vs. Product Life Cycle Cost

You have to divide a line in estimating a bid..

i.e whether you are bidding for a project which in turn results in a product or deliverable. Or whether the scope involves operation, maintenance, amc, warranty and insurance components of products operational life also.

Project cycle is subset of product cycle.

Once you decide on your bid's scope is for project cycle or product cycle, this itself will make your problem of estimation half solved!!!

Main Factor in Handling Multiple Projects...

Prioritize..!!!

is a powerful word in the field of multiple project management or program or portfolio management.

At any juncture of decision making you may have to prioritize and decide on any of the following:

Fund Allocation

  1. Resource Allocation
  2. Compromise
  3. Dedication of Time

Gantt Chart : Benefits for Project Manager...

To Satisfy Top Mgmt & Client

Bar charts are of course used widely due to its simplicity in indicating progress compared to actual planned.

But in reality the activities in a bar charts could be well planned so that the project looks on track. This is because the interdepencies are not higlighted in these charts. This inturn could not trigger any possible threat in the schedule leading to product delays.

Project managers do prefer such charts to gain top mgmt and client's confidence.

Saturday, May 23, 2009

Pitfalls of Project Management....

Uncertainties...

Uncertainties of varying degree and impact forms the part and parcel of any Project. Without uncertainties there is no project.
Our objective should be to standardize and manage the project such that these uncertainties are minimized to the extent possible.
A contingency plan and contingency fund to be established for uncertainties not under our control or not predictable from past experience.

How to Identify a Failing Project...???

Success Criteria and Performance Measurement

Success Criteria defined in a project shall act as a scale or benchmark. Achievement of this benchmark determines that the project is successful as per plan.
In order to assess whether project is on track or to forecast whether in future the project could be brought back on track, an effective project performance measurement system in line with the success criteria parameters are to be defined and implemented.
Success Criteria : Eg. Profit 10%, Milestones achieved within scheduled date etc.
Performance measurement : Earned Value Method (EVM) !

The performance measurement information and the success criteria forms the backbone any decisions made by the project management team for a healthy project completion.

How do you control Material Wastages in a Project???

It has been observed from past experience that major wastage are in Bulk Materials only (say Cement, Sand, Aggregates, Bricks, Steel etc. in Construction projects).
Hence the only way to reduce wastage is through following measures:
  • Scope of Work to be defined clearly
  • Periodic plan for respective scope of work required
  • Material Specification and Unit Consumption arrived
  • Procurement cycle considering the Lead Time in line with periodic work plan prepared to followed up.
  • Regular Reconciliation of Bulk material indented against work executed to arrive at wastage.
  • Implement corrective and preventive measures

Common error in Cost Estimation...

Blindly relying on Vendor Quotes for Estimates...!!!


Most of the cost estimates in a project go wrong because we totally rely on vendor quotes and three quotation system instead of doing a detailed Item Rate Analysis for indivudal items of work.
By relying on a vendors estimate blindly, the following risk components are on our head :

  • Lack of vendors clarity or perception on scope and specification
  • Lack of vendors knowledge on market trends
  • Lack of vendors knowledge on the inter dependcies of various activities in the project.
  • Lack of vendors knowledge on the main contractual terms and condition set between you and client
  • Vendor may quote unrealisticallly low just for the sake of winning the order and then stop performing later.

How to make Project Cost Management effective...

A Good Cost Accouting Management Information System..!!

To manage cost, first you have to use an MIS which tracks and depicts the cost booked in the project as on date, accurately and in details under various cost heads freezed by your management for monitoring purposes.
Forecasting and other management techniques shall be of no use if the cost booked figure in hand in not accurate enough to make decisions effectively.
Hence it goes with the saying that, "If you know and understand your past well then you shall be in a position to rightly predict the future course".

Negotiaitons and Conflict Management...

Projects are all made up of negotiations at various stages of project cycle.
When we talk of negotiation its all about, getting more from less, which is the mantra for present generation. And hence effect of any negotiation process can lead to conflicts.
Hence conflict management and negotiations go hand in hand in affecting the success of any construction projects.
If you master Negotiation and Conflict Management skills you control the Project.

Why do Projects Fail...???

Success Criteria defined are Unrealistic...!!!!
Success criteria defined varies from one project to another. For example success criteria can be defined as follows :
  • Project Cost not to exceed : Rs 50 Cr in Rs 55 Cr project
  • Project to be completed within scheduled target dates
  • Gross Margin or Profit to be a min. of 10%
  • Defined intermediate milestones to be completed on set target dates
  • Stated product quality standards to be maintained
  • Zero accident to be ensured
  • Minimum Staff Productivity of Rs 10 Lakh/ month
  • Avg Working Capital to be within target
  • Out standings to be not more than a months o/s.
  • No legal implications or issues

Even if any of above set success criteria is unrealistic and not in consensus with the stakeholders, then projects performance may be misled to be a failure.
Not defining realistic success criteria itself is a major contributor to declare project as failure...!!!

Causes of Project Delays...!!!

Lack of Scope Clarity & Formal Acceptance of Deliverable !!!

Lack of scope clarity in the project leads to various ambiguities which inturn affect project completion.
If there is no scope clarity then there is no consensus on the deliverable to be produced between owner and contractor. In such cases the deliverable never get signed off or formally accepted by the owner leading to delay and over staying in projects.
Hence Lack of Scope clarity and Absence of Formal Acceptance of Deliverable go Hand in Hand to delay completion of Project Closeout Phase.

Cause of Poor Communications...!!!

Lack of Stakeholder Analysis !!!
When stakeholder analysis itself is not done in projects, then there is no point of discussing any further on the communication aspects in a project environment.
Without stakeholder analysis, we won't be in a position to identify the following :
1. Who are all the stakeholders in the project?
2. What and in which mode the information has to be transferred to these stakeholders?
3. What is the frequency of such reporting systems?
4. Authenticity and correctness of information provided?
5. Timeliness of the reports generated and delivered?
All the above is a must and should be adhered to for effect on communications to ensure effective decision making throughout the project cycle.

Best Scheduling Technique - A Myth!!!

Scheduling Techniques however good and advanced/ sophisticated they are can't be determied as Best as the effectiveness of such schedules lies in the activities or work packages identified as well the completeness of the schedule to bind with the total project scope.
Also in practice it is noticed that all tools and techniques available in market / literature- CPM, PERT, CCPM, MS Project, Primavera all are good in only generating a base schedule and arriving at a project duration for client or top mgmt approvals.
These schedules once freezed on day one, it takes immense efforts to rebaseline the schedule, once any changes to scope occurs. Any scope change is part and parcel of projects. Also defining how many activities is too much or too less is an art, which make life more miserable for schedulers. Further to this use of stringent inter dependencies other that the straight forward finish - to - start is also not very practical indeed.
Mind you; all these scheduling techniques are good for planning, and they fail when it comes to monitoring and control.
Hence these schedules management efforts normally stops at the initial stages itself, that is till the same is approved contractually after that these schedule just hang around at your office as a display piece/ monumental paper work.
Its hard to DIGEST but its TRUE FACT!!!!
If you don't believe in this MYTH, do visit your Project Managers Office or Project Conference Rooms and observe whats on the walls... :-)

Risk of not implementing Risk Management...!!!

Sounds funny! but its true.
We all talk of Risks in Construction, but it is very rarely that a stringent and religious implementation of Risk Management is being effected in all construction projects.
Risk Management doesn't necessarily enforce that separate team or individual to be nominated for performing Risk Management activities in a project. But every individual in the project team shall have to contribute to this.
At times a Risk Register or Risk Management efforts looks very active and attractive towards start of the project just to get some contingency funds approved by top management.
This approved risk fund forms a part of budgetary cushion for Project Managers instead of serving the purpose for which it was intended to.

Wednesday, May 20, 2009

Project Management - What Not to Do...

1. Use of Thumbrule estimates
2. Not giving importance to Quantity Survey in Construction Projects
3. Risk Management and Contingency planning neglected
4. Project Plan considered to be a document alone and not a tool to be aligned with.
5. Not monitoring or measuring progress effectively
6. Preparing Project schedule with too many or too less number of activities.
7. Doing additional works without approved rates/ prices negotiated.
8. No legally bound contract signed while issuing sub projects / packages to sub contractors.
9. Highlighting extent of progress and performance in varying magnitude among various stakeholders.
10. Not performaing Stakeholder Analysis

What is a PROJECT......????

PROJECT =???????
P
erformance Monitoring & Control (MIS, EVM)
R ealistic Plan (Cost, Schedule and Quality Baselines)
O bjectives (Project Scope, Specifications and Success Criteria)
J ustification (Business Case to Justify the Selection of this Project)
E xit Criteria (Scope Verification / Formal Acceptance by Client)
C onstraints and Assumptions (to be continously managed)
T ask Oriented Execution (Resource Allocated & Executed)

What is LUCK...???

RESULT = Func(EFFORT, NOISE)
EFFORT = Your input (Decisions & Actions) towards attainment of Set Goal or RESULT.
The Success and % of Accompalishment of RESULT, also depends on the NOISE.
NOISE = Negative Impact on account of Other's Input (Decisions & Actions)
If Noise is in your Favour, then you are Lucky
i.e. 100% EFFORT gives 100% RESULT
If Noise is against you, then you are Unlucky
i.e. 100% EFFORT gives lesser than 100% RESULT
At any case RESULTS can be at PAR or BELOW EFFORTS made but NOT ABOVE EFFORTS MADE...
Hence, if anyone says I expected 80% in Exam but scored 85%, and he calls himself LUCKY...
Then its wrong statement, he scored 85% because his efforts were at par or above 85% level . This shows he has only UNDERESTIMATED HIS EFFORTS and LUCK has nothing to DO with this..
Thus LUCK just helps us in Getting desired RESULT at par with EFFORTS made and not OVER and ABOVE EFFORTS Made...!!!

What are the management techiniques adopted by large construction companies in order to minimise disputes and claims?

Use of ISSUE LOGS...
ISSUE LOGS refers to a document convering the following details updated during any ISSUES/DISPUTES raised between two parties in a CONTRACT and ISSUES analyzed on a Priotity Basis:
  • Date of Issue
  • Between Which Parties
  • Issue Title / Description
  • Root Cause of Issue
  • Outcomes
  • Corrective Action / Preventive Action to be Taken
  • Effect on Set Project Constraints (Priority Weightage)
  • Reference to related Records / Correspondences
  • Claim Amount with Break Up Details (If any)
  • Acknowledgement fromthe other Party with Remarks

These Issue Logs when maintained shall aid any party in supporting themselves with necessary evidences to avoid disputes or to win in any of the claims / disputes raised...!!!

When is Critical Path Method most effective in Construction Scheduling and why?

CPM is useful only in Planning Stage to arrive at Project Duration for Top Mgmt and Client Approvals..
After that, CPM Network gets OBSOLETE as SCOPE changes gets introduced right from Day 1...

Safety in Construction?

Expenses incurred at Project Sites towards SAFETY PRECAUTIONS are a measure of importance given by an Orgnaizations towards SAFETY..
These Expenses towards SAFETY are not even at par with Stationary Expenses at Site..
Human Life is valued Lesser than amount spent for reprinting Progress Reports at SITE...
SAFETY starts with "S" but BEGINS with "U"

As a Project Manager what tips are to be taken in Mind?

Project Manager = Thick Skinned + Thick Tongued
Thick Skinned = Handle any given situation and decide with COOL MIND...!!!
Thick Tongued = Communicate information and decisions well and continously to all Stakeholders...!!!

Is bar chart a better option for Project Planing?

B = Broad Level View
A = Actual Status against Planned
R = Rational
C = Consensus in Understanding
H = Highlights Progress
A = Actionable
R = Required for TOP Mgmt or Client Communications
T = Time Scaled

What is Earned Value in Project Management??

Earned Value at any point measures :
Whether a Work done is
  1. Cost --> On Budget, Under Budget or Over Budget
  2. Time -->On schedule , Ahead of Schedule or Behind Schedule
  3. Actual Cost & Time Efficiency?
  4. With Present Efficiency --> How much we shall be spending in future?
  5. If to be within Budget --> What efficiency to be attained in Future?

Problem : GOOD CONCEPT, But at what level to be applied, WBS - Work Package, Summary Level or Activity level???

Which tools are you using for managing projects?

Customized Spreadsheet (say MS Excel Templates) based on Top Management, Client and Project Specific Requirement is developed through continous learning and adaptation, is predominantly used for any PM Data/ Information representation and analysis...

Why focus on labour for increasing productivity?

In Construction domain, in spite of Heavy Mechanization, Around 95% of the activities within the Project Duration are labour intentsive.
As accuracy in estimating the Material Costs forms the prime factor in Cost Budgeting, similarly Labour Productivity forms the prime factor in calculating ETC (Estimate to Complete) Duration of every activity in the project.
Labour Productivity is affected mainly due to Wrong Logical sequencing and Poor Crew Mobilization Plan resulting in
1. Labour Resource available at spot, and is IDLE, since preceeding activity not completed.
2. Lack of Timely Delivery of Supporting Informations/ Instructions and Material Resources

What are your thoughts about PMP certification?

PMP is a very accredited and globally recognized for exhibiting and proving your inclination, grip and capability to implement PM processes in your day to day Project Management Duties.
Above all attaining PMP Credential is a Morale BOOSTER and you gain CONFIDENCE in applying your PROJECT MANAGEMENT Skills at your WORK...!!!

Presently Civil Engineers are facing problems in their jobs, It will continue? The Boom will come?

Good Civil Engineers with Professional Commitment are very scarce in the present generation considering the fact that very few abitious students take up CIVIL ENGINEERING as a DISCIPLINE and later develop their CAREER in it.
But regarding prospects of a Civil Engineer in a Professional Career as well as Job Scenarios, it is immaterial provided you are skilled , knowledgeable, having right attitude and is inclined towards continous learning and improvement...!!!

Hou will we minimize the over heads in project?

1. Timely Mobilization & Demobilization of Resources
2. Effective use of MIS - Management Information System
3. Maintain a minimum Staff Productivity - Say Res 15 Lakhs of Invoice/Staff Month. If nto achieved look for loop holes and problems in invoicing or over staffing
4. Avoid procurement in small quantities leading to excessive conveyance and transportation charges. Always plan in lots.
5. Multi skilled Manpower and Staff could be handy at times to utilize learning curve efforts in the project.

Shoul we have a Database on "Lessons learnt" of major construction projects?

A LESSON LEARNT Databae is a MUST for the following reasons : -
1. Continuous Learning and Improvements
2. To avoid repeatitive mistakes
3. To avoid efforts from scratch for a work / effort already made in the past
But SUCCESS of LESSONS LEARNT depends on the following :
1. Categorization of Cases using Keyworks
2. Storage and Sharing Mechanism Employed
3. Trust Worthiness - That is both Good and Bad experiences to be documentated and shared
4. Knowledge sharing Incentive
5.Easy Retrieval and Search Mechanism to Identify the right and only required extent of Knowledge from the the Database to be put in use...!!!

What is the accurate and standard method of manpower estimation in construction projects?

Manpower Estimates depend on only two factors:-
1. Market Rate - very directly available on market analysis / survey
2. Productivity Rate - available in CPWD standards - Delhi Schedule of rates
But productivity Rate in reality inturn is depends on the following:
1. Skill Level of Workforces
2. Availability of Material and information to work with
3. Quality measures and Workmanship expected
4. Safety measures in place
5. Risk Factor
6. Environmental Factors
Thus a judicious productivity rate to be assumed for calculating MANPOWER Estimates in a project..!!!

Tuesday, May 19, 2009

Why scope is important ?

A well defined and understood SCOPE indicates that PROJECT is in HEALTHY State and its progress can be CONTROLLED effectively...
The efficiency and effectives of any process in project management is governed by the SCOPE of the Project.
Eg.:
Understanding scope is like knowing what topics you are going to be tested on in the exam?
A well defined scope is synonymous to having a Question Paper in hand prior to attending the Exam.

How better can your situation be than this one....!!!!

What are the major pitfalls for beginning project managers?

The following are the areas where a new project manager shall fall in a dilemma on to what decision or step to be taken:

  • Trying to execute the tasks in hand rather that managing them
  • Overdoing
  • People management and soft issues - Managing work done by people or people themselves ?
  • To compromise of Cost or Quality or Scope or Time?
  • Dealing with Client requirments?

Why Some organizations projects fail one after another ???

Because most of the time the commitment and drive present in the contracts team to wing an LOI for a project for showing a good order booking, is not present in the Project Management Team to make sure the project gets completed. The reasons may be as follows:
  • Under Quoting
  • Lack of Skilled Workforce
  • Lack of Directon and Support from Top mgmt
  • Fund Shortage
  • Absence of good MIS
  • Above all Lack of Planning and Monitoring

PMP certification after civil engineering?

PMP certification matters mainly if you work in a project environment.
PMP certification is first a professional skill development for any individual. It boosts the confidence level of an individual and enhances his competencey in understanding and applying various processes involved in a project management field.
PMP credential indicates to the project manegement professional world that you have a good understanding of PMBOK (Project Management Body of Knowledge), a globally accepted standard published by PMI, which has a good consensus in the project management community.

Be a PMite... do follow up..