Introduction to Project Management

Malcolm Kear

EFTS/EODI Training Programme

Wednesday, 10 June 2009
Course Objectives
To provide participants with:
An awareness of the importance of applying good
practice Project Management in projects of any size.
An understanding of essential elements, including the
Leadership Role of the Project Manager, Project
Planning, Risk Management and Stakeholder
Engagement.
An understanding of the principle elements of design
control to be applied within projects at Culham.
Culham Challenges
What are the particular technical challenges
facing projects at Culham?
Research environment
requirements may be hard to define and may change
producing one or a few items rather than production line
Uncertainties of leading edge R&D
solutions may have to be developed, including possibly new
technologies
first of a kind so planning and estimating is difficult
Need to balance the desire to get maximum
performance versus achieving acceptable
reliability/availability
Culham Challenges
What are the particular management challenges
facing projects at Culham?
Requirements hard to define and may evolve
Risk Management (all aspects) crucial but difficult
Cross functional team composition
Competing pressures on resources, e.g. design office
Working with scientific organisations not used to project
and QA disciplines planning may be poor
Collaborative agreements rather than contracts
Political - EC funding requirements
Growing funding pressures due to ITER
What is a Project?
Unique process consisting of a set of coordinated and
controlled activities with start and finish dates,
undertaken to achieve an objective conforming to
specific requirements, including constraints of time, cost,
quality and resources

A Project is a planned set of activities

A Project has a scope
A Project has time, cost, quality and resource constraints
What is Project Management?
The art of organising, leading, reporting and
completing a project through people
What is Project Management?
A project is a planned undertaking
A project manager is a person who causes things
to happen
Therefore, project management is causing a
planned undertaking to happen.
Exercise 1
Write down three attributes of a good Project
Manager
Project Manager Role
A Good Project Manager
Takes ownership of the whole project
Is proactive not reactive
Adequately plans the project
Is Authoritative (NOT Authoritarian)
Is Decisive
Is a Good Communicator
Manages by data and facts not uniformed optimism
Leads by example
Has sound Judgement
Is a Motivator
Is Diplomatic
Can Delegate
Stakeholder Engagement
Stakeholder
A person or group of people who have a
vested interest in the success of an
organization and the environment in which
the organization operates
Exercise 2
Write down three typical project stakeholders
Exercise 2 - Typical Stakeholders
Sponsor
Funding Body
Customer
Suppliers
End User
HSE/Environmental Agency
Maintenance Team
Neighbours/Community/Shareholders
Fusion Community
Interfaces
Stakeholder Engagement process
Identify Stakeholders
Assess needs
Define actions
Establish communication channels
Gather feedback
Monitor and review
 The Project Process Readiness for
Project Justification Design Approval
Strategic and Budgetary Gate 1 Gate 2 - Approval of
Gate 0 - Approve Project Definition Gate 3 Manufacture
Approval Undertake Design Final Documents - Approval to
place Contract

Initiate Project
Prepare Technical Design
Ensure Machine Compatibility Prepare
Safety Case Modification
Undertake Tender
Project
set-up Project
Major
Definition Conceptual
Project Scheme
Design
Proposals Design Detailed Tender
Appoint Project Sponsor Design Invitation &
Assess Project Priority
Assess Budget Implications
Est. Proj. Deliverables and Objectives
Raise/Extend/Update initial TCD-R/PERF Assessment
Prepare Outline Conceptual Design
Appoint Project Leader
Define Design Constraints Prepare Extend TCD-Rs/PERFs
Approve Project Set-up
Interface Requirements Spec. (IRP) Prepare Sub-system Detailed Design Hold
Finalise Conceptual Design Detailed Design Review (DDR)
EFDA/CSU/JOC Management Hold Conceptual Design Review (CDR) Clear Sub-system DDR Issues
Clear CDR Issues Use TCD-I/MMAC for Sub-system DD Approval
Initiate Modification Safety Case Prepare Final Documents including:
Update PMP - Design Documents., Machine Compatibility *** These will comprise:
Approve Proceed to Detailed Design Documents., Safety Case Modification - Technical Specification
- Drawings
Project Team/IRP/EFDA/CSU/JDC Project Team/Interfaces/EFDA/CSU/JDC - Contractual Requirements

Draft Statement of Requirements (SoR) Compile Tender Docs.***

* This will include: Review & Approve SoR Identify Send out Invitations (ITTS)
Resources Appoint Project Raise/Extend Sub-system TCD-Rs/PERFs Hold Clarification Meetings
- Initial WBS, OBS and CBS Agree Classifications & Interfaces
Team Produce & Maintain Receive Tenders
- Project Plan Prepare Sub-system Scheme Design
Procurement Plans Evaluate Tenders
- Risk and Procurement Strategies Hold Sub-system Scheme Design Review (SDR)
Undertake Project Risk Assessment Arrange site visits
Prepare Project Boundary Document Clear Sub-system SDR Issues Approve changes to Specs.
Develop Project Management Plan (PMP)* Update PMP Choose preferred Company
** These will only take place here Use TCD-I/MMAC for Sub-system SD Approval
Raise initial TCD-R/PERF**
for large projects demanding DO
Prepare Preliminary Conceptual Design** Project Team/Contracts/EFDA
effort for preliminary Conceptual Project Team/Interfaces
work
Project Leader/Project Team/EFDA/CSU

Readiness for Operation

Implement Project Gate 4
- Acceptance of System
Note: Overall Project
Complete Project Management and Reporting will
Manufacture
be as defined in the Project
Equipment Install Management Plan (PMP)
Equipment Test &
Commission Confirm
Completion Project Gates (Formal Decision Points)
Raise Contract Documentation
Place Contract Review See accompanying notes
Hold Kick off Meeting (KOM)
Clarify Issues (Quality Plan) Test Equipment against Test Schedule
Monitor Progress Commission Complete System
Witness key Procedures
Complete Release Note Undertake Post
Project Team/ICM/EFDA/CSU Project Review
Approve Complete Package****
Approve Release Note
Pack & Dispatch Equipment Project Team/CSU
UNCONTROLLED
Confirm Technical Completion
Receive Equipment
Project Team/Contractor/ICM
Pre-test Equipment
Install equipment
Review Project Records
Handover Documents Resolve
Reservations
Complete

Obtain
WHEN PRINTED
Acceptance of Completed Project
**** This includes Project Team/ICM
supporting documentation
Project Team/EFDA/CSU
Key Points in Project Set-up and Definition

Create Project Management Plan (PMP)

Be clear of scope and objectives
Establish clear statement of what is to be
done (WBS)
Establish Risks to be Managed
Establish Costs and Durations
Establish Resources Required
Project management Plan - PMP
Master Document for Project
Defines the following:-
Project Objectives, Scope, Deliverables
Stakeholders (Internal & External)
Work to be done (WBS)
Project Organisation and Resources (OBS)
Project Costings (CBS)
Project Schedule
Procurement/Contract Strategy
Risk Management
Quality management
Change Management
Project Planning
Project Planning
Adequate planning leads to the correct
completion of work
Planning
Inadequate planning leads to frustration
towards the end of the project & poor
project performance

Project Start Project End

Work Breakdown Structure (WBS)
The Work Breakdown Structure is the
foundation for effective project planning, costing
and management.
It is the most important aspect in setting-up a
Project
It is the foundation on which
everything else builds
Work Breakdown Structure - Definition
A Work Breakdown Structure (WBS) is a
hierarchical (from general to specific) tree
structure of deliverables and tasks that need
to be performed to complete a project.
Example WBS - Top Level ILW Project
ITER-Like
Wall Project
1.0.0.0.0

Research & Engineering EP2 Project Be Installation Erosion/Deposition

Development Design & Manufacture Shutdown Management Recycling Preparation for ILW
1.1.0.0.0 1.2.0.0.0 1.3.0.0.0 1.4.0.0.0 1.5.0.0.0 1.6.0.0.0 1.7.0.0.0

Be Sliced Be Remote Overall Project Assess JET Sliced Be Tiles Engineering

Recycling Tiles Handling Management Be Stocks Install Prep. Design & Manuf.
1.1.1.0.0 1.2.1.0.0 1.3.1.0.0 1.4.1.0.0 1.5.1.0.0 1.6.1.0.0 1.7.1.0.0

Bulk W Bulk Metal Torus Installation Contractual Prepare & Ship Bulk Metal Tiles Erosion/Deposition
Divertor Tiles Group Management JET Be Install Prep. Assemby & Calib.
1.1.2.0.0 1.2.2.0.0 1.3.2.0.0 1.4.2.0.0 1.5.2.0.0 1.6.2.0.0 1.7.2.0.0

W Coatings W Coated Waste Man. Safety & HP W Coated CFC Erosion/Deposition

1.1.3.0.0 CFC Tiles Group Management Install Prep. Installation
1.2.3.0.0 1.3.3.0.0 1.4.3.0.0 1.6.3.0.0 1.7.3.0.0

Markers Embedded Vacuum Quality Embed. Diag. Erosion/Deposition

1.1.4.0.0 Diagnostics Group Management Install Prep. Management
1.2.4.0.0 1.3.4.0.0 1.4.4.0.0 1.6.4.0.0 1.7.4.0.0

R&D Engineering D&M ILW Tile Removal FZJ Contract Install Prep.
Management Management & Replacement Management Management
1.1.5.0.0 1.2.5.0.0 1.3.5.0.0 1.4.5.0.0 1.6.5.0.0

Bulk W EP2 Shutdown Install Prep.

Tiles Management Bulk W
1.2.6.0.0 1.3.6.0.0 1.6.6.0.0

Component Inspect Install Prep.

& Re-pack Other Activities
1.2.7.0.0 1.6.7.0.0
Example WBS - Top Level TSCL Project
Optical
Systems
5.5.C.0.0.0.0.0

Thomson Scattering
Core (LIDAR)
5.5.C.1.0.0.0.0

LIDAR Project LIDAR System Laser Collection Laser Path Control & LIDAR LIDAR Interfaces &
Management Concepts Systems Optics Optics Acquisition Port Engineering Services Integrated Testing
1.1.0.0.0 1.2.0.0.0 1.3.0.0.0 1.4.0.0.0 1.5.0.0.0 1.6.0.0.0 1.7.0.0.0 1.8.0.0.0 1.9.0.0.0

Key Project Overall Cluster Lasers Collection Laser Path Control System Shutters Water LIDAR
Milestones Co-ordination 1.3.1.0.0 Optical Design Optical Design Interface Definition 1.7.1.0.0 Services Interfaces
1.1.1.0.0 1.2.1.0.0 1.4.1.0.0 1.5.1.0.0 1.6.1.0.0 1.8.1.0.0 1.9.1.0.0

Key Project Performance Laser Collection Laser Control Labyrinth Interspace Mock-up
Deliverables Analysis Layout Windows Windows System 1.7.2.0.0 Vacuum Facility
1.1.2.0.0 1.2.2.0.0 1.3.2.0.0 1.4.2.0.0 1.5.2.0.0 1.6.2.0.0 1.8.2.0.0 1.9.2.0.0

Key ITER LIDAR Laser Beam In-Vacuum Plasma Facing Acquisition Extension Tubes & LIDAR Basic Mock-up
Milestones & IPL Neutronics Combiner Collection Mirrors Laser Mirrors System Mirror Mounting Power Tests
1.1.3.0.0 1.2.3.0.0 1.3.3.0.0 1.4.3.0.0 1.5.3.0.0 1.6.3.0.0 1.7.3.0.0 1.8.3.0.0 1.9.3.0.0

Overall Scattering Ex-Vacuum Other Laser LIDAR External Port Optics Spectrometer Tokamak
Management Theory Collection Optics Mirrors Instrumentation Mounting Area Tests
1.1.4.0.0 1.2.4.0.0 1.4.4.0.0 1.5.4.0.0 1.6.4.0.0 1.7.4.0.0 1.8.4.0.0 1.9.4.0.0

Safety & HP R&D Collection Optics Laser Path Safety Bioshield Laser Final System
Management Tasks Mechanical Design Mechanical Design Interlocks 1.7.5.0.0 Room Testing
1.1.5.0.0 1.2.5.0.0 1.4.5.0.0 1.5.5.0.0 1.6.5.0.0 1.8.5.0.0 1.9.5.0.0

Risk Radiation Spectrometer Beam Safety BSM Port Cell/ System Assembly
Management Effects Data System Dump System Penetrations Interspace & Dis-assembly
1.1.6.0.0 1.2.6.0.0 1.4.6.0.0 1.5.6.0.0 1.6.6.0.0 1.7.6.0.0 1.8.6.0.0 1.9.6.0.0

Quality Remote Detectors Alignment EM Analysis for

Management Handling 1.4.7.0.0 System In-Port Comp.
1.1.7.0.0 1.2.7.0.0 1.5.7.0.0 1.7.7.0.0

Item Alignment Calibration

Test Unit System System
1.2.8.0.0 1.4.8.0.0 1.5.8.0.0

Engineering Calibration
Analysis System
1.2.9.0.0 1.4.9.0.0
Project Planning WBS (1)
Lowest Level of WBS is the Work Package
(WP)
WP can be clearly defined allowing package
to be costed, scheduled and resourced
WP contains a list of Tasks to be Performed
that form the basis for the Schedule
WP allows assignment of responsibilities
(Work Package Manger, WPM)
Project Planning WBS (2)
WBS allows hierarchical build-up of costs
and schedule
Cost and Schedule can be reported at any
level of the WBS
WBS facilitates strong management during
project execution (Cost and Schedule
control)
WBS can be used for many other things -
Document Management, Risk Management
etc.
Project Planning
A word about Scheduling
Schedules (task durations) can have a wide
variation
There is no unique answer. Rather, there is a
statistical variation depending on assumptions
Need to understand the basis of scheduling
(Most challenging; Most likely; Absolute certainty
- bet your life on it!)
Most people are very optimistic/naive
Common schedule development
Accuracy of Timescale Estimates

100
90
80
Subsequent
70 Estimates
Probability

60
50
40
30 First
Estimate
20
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Timescale
 Example WBS for the
ITER-Like Wall & TSCL Projects

MJ Kear
Project Planning Key Points
Recognise that adequate project planning is
essential
Produce a sound WBS
Use the framework provided by the Project
Management Plan (PMP) template
Involve the right people
Allow enough time
Be systematic
Project Risk Management
Project Risk Definition (1)
Project risk is an uncertain event or condition
that, if it occurs, has a positive or negative
effect on a project objective
Project Risk Definition (2)
A combination of the probability of a defined
threat or opportunity (Likelihood) and the
magnitude of the consequences of the
occurrence (Impact) defines a Risk Index
Risk Impact
Threat Scope Poor Quality Product
Threat Schedule Late Delivery
Threat Cost Overspend

In addition there are health, safety and

environmental threats that must be
managed (CDM Regulations)
Risk Management Process
Identify Risks
Assess likelihood and impact
Rank risks and prioritise
Define risk management approach & actions
Implement actions
Monitor & review
Example Risk Management for the
ITER-Like Wall Project

MJ Kear
Risk Management Key Points
Make the management of risk integral to the
way the project is managed
Ensure that cost and time contingencies are
consistent with identified risks
Focus on the significant few dont try to
manage too many risks
Be vigilant and proactive
Project Monitoring and Control
Exercise 3
Write down three typical project
control/monitoring activities
Project Monitoring
Typical Monitoring Activities
regular reviews of progress against schedule
using WBS as basis (Plan against Baseline)
regular review of actual costs (O/P from SAP)
against budgeted costs and Earned Value at
WBS level
regular review of resource loading
regular progress meetings with project team
regular meetings with contractors
production of periodic progress reports
risk reviews
inspections/ audits
Project Control
Typical Control Activities
assign responsibilities at Work Package level
staged authorisation of work to be done
staged release of budgets (staged release of
WBS(e) numbers)
ensure PM has a Management Reserve under
his control
seek corrective action reports when WPs go off
track (overrunning or overspending)
release Management Reserve carefully
Project Monitoring and Control
Summary
Monitor against the plan status regularly
Take a factual approach to decisions
Identify management action early
Check that defined controls are being
applied correct if necessary
Apply change control
Introduction to Design Management
Design Management
Design takes place as part of a project
Design Management is part of Project
Management
Design Management considerations must be
included in the PMP
Exercise 4
Write down three Design Management
Activities
Exercise 4 - Design Management Activities
Sub-divide Design Stages (CD, SD & DD)
Sub-divide Tasks (WBS)
Define Constraints and Interfaces (WPD
Summary Sheet)
Formally Initiate the Design (TCD-R/PERF)
Ensure Design conforms to H&SE and CDM
Requirements
Hold Design Reviews (Peer review)
Formally Approve Design (TCD-I/MMAC)
Design Stages
Conceptual Design
Scheme Design
Detailed Design
Conceptual Design Phase
TCD-R
Decide Local or TCS route
Develop Conceptual Design
Define Constraints & Interfaces
Carry out Conceptual Design Review
Initiate Safety Case Modification if required
Obtain Approval to Proceed to next stage
Scheme and Detailed Design
Basic considerations and process similar to
concept
Need to ensure that safety & environmental
issues receive proper consideration as
design develops (CDM Regulations)
Exercise 5
List who should be invited to a design review
Write down three issues that should be
considered at a design review
Exercise 5 - Design Reviews, Attendance
Project Leader or nominee (Chairman)
RO (Work Package Manager)
Customer
End User
Safety and Quality Reps
All other Relevant Interfaces/Stakeholders
Other Experts in the area being reviewed
 Exercise 5 - Design Reviews, Issues to
Consider
Assumptions and Constraints
Technical Solutions - Does it meet the Spec?
Safety, Environment and CDM issues
Can it be Manufactured/Maintained?
Actions from previous DRs
Issues to be resolved (including Timescales)
Safety & Environment
Need to ensure that safety & environmental
issues receive proper consideration as
design develops
Involve the right people from the start
Systematically identify issues Hazards/Risks,
Environmental Aspects & Impacts
Carry out rigorous reviews at each design stage
Control Design Changes
MUST take note of CDM Regulations
CDM Regulations
CDM - Construction (Design & Management)
Regulations recently updated
Now must have someone in EACH Project
Responsible for CDM
Currently information is on the Conceptual,
Scheme & Detailed Design steps on the
Process Maps
More information will be developed over the
coming months
Design Change control
Needs to be a formal and defined procedure
New procedure in place CD/P/J008 for JET
Facilities
Confirm Completion
Ensure design records are complete and
accurate
Ensure any outstanding actions or issues
are addressed
Ensure Maintenance Records are produced
Ensure User Manuals are produced
Hold a formal Post Project review