ISO 21500 Training

Back Up Slides
Hariyo D. Pangarso, MT, PMP
hariyodp@gmail.com
PMBOK Guide vs ISO 21500
Portfolio, Program &
Project Management
What are you going to be doing
exactly one year from today?
Use “Rolling Wave” Planning Techniques
Lesser
Detail
365
Day
Look
Ahead

180
Greatest 90 Day
Detail 30 Day Look
Day Look Ahead
7 Day
Look Ahead
Look
Ahead 8
Ahead
 What are the
DIMENSIONS of The “Soft”
part of the Project-
“Quality” we Deming’s HOW we deliver.
need to consider “Customer PERFORMANCE
Satisfaction”
when
Planning? Crosby’s
Juran’s PROJECT “Conformance
“Fitness To
QUALITY
for Use” Specifications”

Ishikawa’s
The “PRODUCT” “Continuous
of the Project- Improvement”
WHAT we deliver.

9
Translating VOC into a CTQ Tree
VOC CTQ Tree
CTQ

CTQ CTQ

I want CTQ CTQ

CTQ

Need
CTQ CTQ

CTQ

CTQ

(CTQ = Critical to Quality)

 Develop and define attribute
Voice of the or variables for CTQs
Customer/ Features CTQs Measurement
Market Accessible sales staff (no of missed phone-calls)
Quotations
No errors (did understand (no of loops)
custiomer needs)
Responsivness (response-time)

Meets customer needs (% of deliveries to

customer request)
Shorter Delivery
lead- No updates (Delivery on first confirm date)

times
To site delivery (% of units delivered to site)

Short assambly time (h/inst)

Installation
Test trail done same day (% of inst)
as site installation
 Goal Statement
- with SMART assessment

Ensure that your goal is set up SMART to be able to

judge when your project and goals are fulfilled.

Specific Specify what products/processes/services/activities are included in the goal

formulation. Keep it simple but specific. Avoid abbreviations that are not
generally known.

Measurable What measurements will show that the goal will be fulfilled? How will relevant
progress be tracked? Variable data are always desirable, it facilitate you to track
positive or negative progress trends to the final goal.

Achievable How tough must we set the goal to be challenged to do our best efforts and
more? A tough and very ambitious goal will drive new perspectives and out of
the box thinking. An over ambitious goal will cause de-motivation and lack if
empowerment.

Relevant Do we know that this goal area is what we should put our efforts on? Is it high
enough priority so it won't be down prioritized by other activities?
Not only set up a time when the goal shall be fulfilled but also during what
Time bounded period of time (start and stop time) will measurement will be taken to prove a
solid baseline for goal fulfilment?
IMPROVEMENT: Efficiency focus
Identify unnecessary activities and find
Eliminate a way to eliminate them.

Combine activities in order to decrease

Combine transportation and/or handling time

Find new solutions to rearrange or

Rearrange move activities

Simplify Simplify remaining activities

Exercise: Help John with his morning activities!

Morning routine

The alarm clock goes off at 06:30. He remains in bed for 30 minutes. He then
listen to the news that are broadcasted every half hour and that lasts for 10
minutes. After that he makes himself a breakfast (two sandwiches and a glass of
milk) that takes 5 minutes to prepare and 10 minutes to eat. He chooses what
clothes to wear and gets dressed, which takes 5 + 5 minutes. After that he
reads the morning paper for 10 minutes. Finally he brushes his teeth for 5
minutes.
He should be at work at 08:10 and it is a 15 minutes walk to get there. John is
very punctual and never wants to be late. Therefore he normally gets a little
bit early to work to be on the safe side.
Task
Perform a simple ”as-is” process mapping that describes Johns process ”Getting
to work”.
John wants to sleep as long as possible. At what time can he set the alarm clock
and still get in time for work. Map your ”wanted state” of Johns ”Getting to
work”-process. You might want to use the four steps ECRS.
BASIC STATISTICS, Terminology
Normal distribution

Every Normal Curve can be defined by

two numbers:
• Average: a measure of the center
σ (s)
• Standard deviation: a measure of spread
_
µ (x) •3 Point Estimates
• Mean = (1Pessimistic+4Most Likely+1Optimistic)/6
x, s - calculated process value
,  - true process value • Standard Deviation = (Pessimistic – Optimistic) / 6

Average Standard deviation

x1  x2  ...  xn
x = ( x1  x) 2  ( x2  x) 2  ...  ( xn  x) 2
n s = n 1
 NORMAL DISTRIBUTION
 68.26% fall within ± 1 sigma
 95.46% fall within ± 2 sigma
 99.73% fall within ± 3 sigma
 99,9937% fall within ± 4 sigma
 99,999943% fall within ± 5 sigma
34.13% 34.13%  99.999997% fall within ± 6 sigma

13.60% 13.60%

2.14% 2.14%

0.13% 0.13%

-3 -2 -1 +1  +2 +3 

68.26%

95.46%

99.73%
Process Capability Using Mini-Tab
A quick capability analyses shows that you will risk a 7% failure
rate with the current design.
Too high for volume production?!

Process Capability of Data

LSL USL
P rocess D ata Within
LS L 4,95 Overall
Target *
USL 5,05 P otential (Within) C apability
S ample M ean 5,01844 Cp 0,78
S ample N 30 C PL 1,07
S tDev (Within) 0,0214079 C PU 0,49
S tDev (O v erall) 0,0214079 C pk 0,49
C C pk 0,78
O v erall C apability
Pp 0,78
PPL 1,07
PPU 0,49
P pk 0,49
C pm *

4,96 4,98 5,00 5,02 5,04 5,06

O bserv ed P erformance E xp. Within P erformance E xp. O v erall P erformance
P P M < LS L 0,00 P P M < LS L 694,44 P P M < LS L 694,44
P P M > U S L 0,00 P P M > U S L 70211,86 P P M > U S L 70211,86
P P M Total 0,00 P P M Total 70906,30 P P M Total 70906,30
 7 Management tools- which tool to
choose???
Affinity diagram Relation diagram Tree diagram

”WHAT” ”WHY” ”HOW”

Flowchart Arrow diagram Matrix diagram Fishbone diagram

Product C
Product D
Product A
Product B
Y X 1
X Y X 2
Y X 3
X Y 4

”IF-OTHERWISE” ”WHEN” ”WHICH ONE” ”CLARIFY”

Powers of a Project Manager

Project manager can have different

powers namely:

• Formal

• Reward

• Penalty

• Expert

• Referrent
Responsibilities Assignment Matrix (RAM)
Recognition and Rewards

 Theories of Motivation
 Maslow's Hierarchy of Needs
 McGregor's Theory X and Y
 Contingency Theory
 Herzberg's Motivation-Hygiene Theory
 Expectancy Theory
 Achievement Theory
Maslow’s Motivation
Forms of Power (1)
 Reward Power
 Influence others through reward and recognition
 Examples include a pay raise, time off
 Expert Power
 Exists when the manager is an expert on the subject
 Influence others through their special knowledge or
ability
 Legimate Power (Formal)
 Influence others through formal authority or because
of his/her position
Forms of Power (2)
 Referent Power
 Based on respect or Influence others through
charisma
 Coercive Power (Penalty/Punishment)
 Influence others through punishment
 Example: If this module does not pass quality
control by the end of next week, you are all fired”
 Best Forms : Expert & Reward
 Worst : Penalty
 Earned your own : Expert
 High
Conflict Management
Use Forcing:
Use Problem Solving/Confrontation:
- When you are sure that you are right
- To reduce overall project cost
- When an emergency situation exist (DO or DIE)
- To gain commitment and create a common power base
- When stakes are high and issues are important
- When there’s enough time & the skills are complementary
- When you are stronger
- When there is mutual trust, respect& confident
- Demonstrate power positition
Desire to satisfy Oneself

Use Comprimising:
- For temporary solution
- For backup if collaboration fails
- When you can’t win
- When the others are as strong as you are
- When you’re not sure you are right

Use Avoiding/Withdrawing:
Use Smoothing/Accommodating :
- When you can’t win or the stakes are low
- To create obligation for a trade-off at a later date
- When the stakes are high but you aren’t ready yet
- When stakes are low & liability is limited
- To gain time
- To maintain harmony, peace & goodwill
- To maintain neutrality or reputation
- When you’ll lose anyway
- When you think the problem will go away by itself

Low Desire to satisfy Others High

Sources of Conflict

50% of Project Conflict comes from these

3 sources

Technical Human
Personality Cost Procedure Priorities Schedule
Opinions Resources

Less common sources of More common sources

Conflict of Conflict
 Categories of Estimates
AACE Frame et al
 “Order of Magnitude” +50% to -30% +75% to -25%
 AKA- Initiation, Conceptual, SWAG, Preliminary,
Probable

 “Budget Estimate” +30% to -15% +25% to -10%

 AKA- Developmental, Appropriation, Control, Design

 “Definitive Estimate” +15% to -5% +10% to -5%

 AKA- Early Execution, Check, Bid, Lump Sum, Tender,
Post Contract
From AACE “Skills & Knowledge of Cost Engineering” 27
Used with Permission
 Categories of Estimates
CAREER
+60% +75%
LIMITING
+40% +50%
+25%
ZONE
% Accuracy of Estimate PROJECT +30%
+10%
+20%
MANAGER +15%
0%
0%
SAFETY -15%
-5% -5%
-20% ZONE -10%
-30%
-40%
-25% PROJECT MANAGER
DEATH ZONE
Order of Magnitude Budget Estimate Definitive Estimate Post Contract
“Initiation” or or Developmental “Functional Design” Closing Phase
Conceptual Phase Phase or Execution Phase
Project Complete
Estimate Categories Over Time
Per J. Davidson Frame et al +75% 28
Per AACE Best Practices +50%
 Can you illustrate the EXPECTED
MONETARY VALUE formula?
Identify Risk
And The
Probability of Determine EXPECTED
It happening.. How Much Is MONETARY
At Stake VALUE (+/-)

%%
X =
$
What does a well run plan
look like?

+
-
course
deviation Frequent, small course
corrections
“to stay on track”
From Max Wiedeman,
PMP
 Tools & Techniques 2: Precedence Diagramming Method

Predecessor Successor
1. Finishto Start (FS) Predecessor Finish, Successor Start (natural
dependency)
2. Start to Start (SS) Predecessor Start, Successor Start (Parallel)
3. Finishto Finish (FF) Predecessor Finish, Successor Finish (Parallel)
4. Start to Finish (SF) Predecessor Start, Successor Finish

 Example:
1. FS Activities: The awards ceremony (successor) cannot start until the race (predecessor) has finished
2. SS Activities: Project management activities started (successor) only if Project work started
(predecessor)
3. FF Activities: Writing a document (predecessor) is required to finish before editing document (successor
can finish)
4. SF Activities: The first security guide shift (successor) cannot finish until the second security guard shift
(predecessor) start
Tools & Techniques 3: Leads & Lags

LEADS LAGS

A A

B B

days days

2 days lead time 5 days lag time

FS – 2 days FS + 5 days
 Network Diagramming Methods
Precedence Diagram (PDM or Activity On Node)
A B C
Start Finish

D E F

Arrow Diagram (ADM or Activity On Arrow)

Start B
A 3 5 C
1

2 B 7
F
E
4 6 36
Guide to Project Management Body of Knowledge, August, 1994
 What is the Process to use in doing
scheduling Problems?
Activity Activity Activity Activity
FS FS FS
A B C D
Duration 3 Duration 4 Duration 4 Duration 10

Step 1) Perform FORWARD PASS CALCULATIONS

Step 2) Perform BACKWARDS PASS CALCULATIONS
Step 3) Subtract Early Dates from Late Dates to CALCULATE TOTAL
FLOAT.

NOTE: You can either deduct the ES from the LS OR EF from the LF.
Can you DEMONSTRATE SCHEDULE
CALCULATIONS?
GIVEN: No imposed Finish Date
1 3 4 4 5 8 9 18
LS LF LS LF LS LF LS LF

Activity Activity Activity Activity

A B C D
Duration 3 Duration 1 Duration 4 Duration 10
1 3 4 4 5 8 9 18

- ES

0
EF

0
ES

0
EF

0
ES

0
EF

0
ES

0
EF

0
= TF TF TF TF TF TF TF TF
 What happens when we impose a
FINISH DATE?
GIVEN: Imposed Finish Date of Work Period 24
7 9 10 10 11 14 15 24
LS LF LS LF LS LF LS LF

Activity Activity Activity Activity

A B C D
Duration 3 Duration 1 Duration 4 Duration 10
1 3 4 4 5 8 9 18

- ES

6
EF

6
ES

6
EF

6
ES

6
EF

6
ES

6
EF

6
= TF TF TF TF TF TF TF TF
 What IMPORTANT CONCEPT does this
illustrate?
GIVEN: Imposed Finish Date of Work Period 24
Activity Activity Activity Activity
A B C D
Duration 3 Duration 1 Duration 4 Duration 10
6 6 6 6 6 6 6 6
TF TF TF TF TF TF TF TF

This example illustrates that TOTAL FLOAT belongs NOT to

an individual activity, but to the entire STRING of activities!!!
 What happens when we impose a
FINISH DATE?
GIVEN: Imposed Finish Date of Work Period 12
-5 -3 -2 -2 -1 2 3 12
LS LF LS LF LS LF LS LF

Activity Activity Activity Activity

A B C D
Duration 3 Duration 1 Duration 4 Duration 10
1 3 4 4 5 8 9 18

- ES

-6
EF

-6
ES

-6
EF

-6
ES

-6
EF

-6
ES

-6
EF

-6
= TF TF TF TF TF TF TF TF
 What IMPORTANT CONCEPT does this illustrate?

GIVEN: Imposed Finish Date of Work Period 12

Activity Activity Activity Activity
A B C D
Duration 3 Duration 1 Duration 4 Duration 10
-6 -6 -6 -6 -6 -6 -6 -6
TF TF TF TF TF TF TF TF
This is an example of NEGATIVE FLOAT!!!

NEGATIVE FLOAT is defined to be scheduling too much work

in too short a period of time.

NEGATIVE FLOAT REPRESENTS AN IMPOSSIBLE SITUATION !!!!

 What happens if our project develops
NEGATIVE FLOAT?
As NEGATIVE FLOAT represents an IMPOSSIBLE
SITUATION, it MUST be eliminated.
What are the solutions to eliminate NEGATIVE FLOAT?

There are only 4 possible solutions to eliminate negative float !!!

1) LET THE DATES SLIP (Surrender)
2) ADD RESOURCES (Expensive Alternative)
3) DESCOPE (Not very practical except at the
conceptual stage)
4) IMPROVE THE WORK PROCESS
(Work SMARTER, Not HARDER)
 What are the two methods associated with
schedule compression?

“Crashing” involves adding more resources to

critical activities in order to shorten their
duration, while;

“Fast Tracking” involves performing as many

activities in parallel as possible.

Each method entails cost and risk impacts……

 Sample Schedule-
Calculate the ED’s, LD’s and TF
GIVEN: No Imposed Finish Date; All relationships FS unless otherwise
noted. __ __ __ __
Activity Activity
SS +5
C E
__ __ Duration 8 Duration 2
__ __ __ __
Activity __ __ __ __
Activity Activity
B __ __ __ __
A Duration 10
G
Duration 5 Duration 5
__ __
__ __ __ __
__ __ __ __
__ __ Activity __ __
__ __ F
Activity Duration 5 FF +2
D __ __
Duration 15
__ __
__ __
__ __
 Sample Schedule-
Calculate the ED, LD’s and TF
GIVEN: No Imposed Finish Date; All relationships FS unless otherwise
noted. 13 20 21 22
Activity Activity
SS +5
C E
Duration 8 Duration 2
8 20
1 5 11 18 23 27
Activity 19 20
Activity 2 2 2 2 Activity
B
A Duration 10 G
Duration 5 Duration 5
6 15
1 5 2 5 21 27
21 25
0 0 2 0
Activity
6 20 F
Activity Duration 5 FF +2
D
Duration 15
21 25
0 0
6 20
0 0
 Vague Well
<50% SCOPE DEFINITION >85% Define
d

100% 100%

CONTRACTOR RISK
OWNERS RISK

CONTRACT TYPES 0%
0%
CPPC CPFF CPAF CPIF CR CS FPI FP/EPA FFP

Cost Reimbursable T & M Fixed Price

Adapted from Gregory Garrett,

World Class Contracting