PM Tip of the Day – 22.07.2013
‘When defining the project scope, remember to specifically note what is NOT included in the project.’
by Rita Mulcahy
PM Tip of the Day
- July 22, 2013
Category Archives: Articles
PM Tip of the Day
- July 18, 2013
PM Tip of the Day – 18.07.2013
If it is in the contract, it must be done unless both sides agree and change is issued. Make sure you understand the contracts on your project!
by Rita Mulcahy
The History of Project Management
- July 17, 2013
When did we actually start using project management basic principles?
Even though the main PM Bodies – IPMA, PMI and guidelines such as PMBoK and PRINCE were developed in the late 20th century, project management principles existed and were used though not under an consolidated format.
All the major construction works starting of with the pyramids had ‘embedded’ project management – high level split of work a.k.a WBS, division of the levels of work to manageable size item a.k.a Activities, sequence set for all the activities a.k.a Dependencies, resources allocated – labour force, materials and a set of equipments etc.
Project Management is a part of everything we do on a day to day basis, it up to us to tailor the guidelines and to create the fit for purpose methodology for our projects, alongside with the proper tools, techniques and software systems.
PM Tip of the Day
- July 17, 2013
PM Tip of the Day – 17.07.2013
If you feel you are spending too much time dealing with problems rather than preventing them, simply have a look-ahead meeting with the team to anticipate the future and have everyone refocus on preventing problems.
by Rita Mulcahy
History of the Gantt Chart
- July 16, 2013
History of the Gantt Chart
The first graph that depicted sequenced activities displayed over time was developed by Karol Adamiecki (1866 – 1933) in 1896 and it has called an harmonogram.
The graph as we all know it today was attributed to Henry Gantt (1861–1919) an American engineer , who developed it between the 1910 -1915. The famous bar chart was used during World War I.
During the 80’s specialised software tools integrated the possibility of building Gantt charts.
Nowadays there are numerous project management software tools (Primavera, Microsoft Project etc.) that can assist the planning process by creating Gantt Charts showing all possible type of activities, ie. Summary, Milestone, Task Dependent / Normal.
What is your favourite PM tool for creating Gantt Charts?
PM Tip of the Day
- July 16, 2013
PM Tip of the Day – 16.07.2013
Remember to ask your suppliers and consultants what changes are going on in their companies. This helps you anticipate project problems caused by those entities.
by Rita Mulcahy
PM Tip of the Day
- July 15, 2013
Starting today – 15.07.2013 through our website
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PM Tip of the Day – 15.07.2013
Do your management decisions and actions meet only your needs, or those of your team, organization, and comunity?
by Rita Mulcahy
Risk Management in Investments
- July 12, 2013
Risk Management is one of the most important areas within Project Management and it should be included in each efficient Business Case.
When referring to risk events (Threats or Opportunites) there are several internal and external factors that might influence the investment’s cash flow, thus affecting the Net Present Value (NPV), the Internal Rate of Return (IRR) and the Payback Period.
A correct approach for an efficient risk management must start off with a methodology; this sets out the risk management activities, whilst defining risk tolerances and impact types.
This risk management planning process sets the framework for the Risk Identification, the Qualitative and Quantitative Risk Analysis, and Risk Response Planning.
The Quantitative Risk Analysis, done through the means of a specialised software package – such as Primavera Risk Analysis, can be the decisive factor for making the right call:
GO / NO GO ahead with the proposed investment
The integrated simulation model Monte – Carlo can determine the quantified impact of the risks on NPV, IRR and the payback period. This proactively determines whether the KPIs are above the Company’s hurdle rates, by taking into account the risk model used.
The costs of running a probabilistic cash flow risk analysis are understandably lower in comparison with the consequences of not having a well-documented business case. Therefore, the main concern of every entreprenour before getting into a start-up should be building a sound Business Case.
‘Plan your work and work your plan’
Scope of the program
The objective of the program was the improvement of the environmental performance and the increase of efficiency of 5049 wells in Romania. The following were intended: reduction of production cost, increase of the production volumes and increase of the operational safety.
Work at each well location included cleaning of the location, fixing the soil, treatment of slam and management and elimination of waste. In the case of the beam pumping units, the engines have been equipped with new braking devices. All units have been painted with a new layer of paint to protect them against rust.
Our objective
Our contribution was determining the confidence degree for completing the objectives of the project, as well as setting the risk management plans.
We monitored the evolution of the project by running risk analyses in various stages in the course of the project and we ensured its protection against external events.
Carrying out
1. Organizing workshops to identify the risks at project level
After the analysis meetings to identify and analyze the events which may occur, a risk register resulted, which contains 52 events (threats or opportunities).
At the level of each risk, we established a cause, an effect, the occurrence probability, the impact on the objectives and we identified the possible correction measures.
2. Filling in the risk register
3. Qualitative and quantitative analysis
4. Monte Carlo analysis
5. Running reports and interpretation of results
6. Risk analysis reports
6.a Time/cost distribution graph
What is the probability that the project is finalized at the date initially set?
There is only 14% chance that the project is finalized at the date set in the initial planning, without taking into consideration the risks which may occur.
6.b Duration/cost sensitivity graph (Tornado Graph)
We established the “hot points” in the planning. Which activities are more sensitive and require our focus? (an activity does not have to be critical to be the most sensitive one).
6.c Comparing plans, before and after identifying the solutions to reduce costs
By comparing the curves associated with the previous and afterwards situation, at 80% confidence degree, we notice that by implementing solutions to reduce the impact, we reduce the completion term of the project with 71 days.
Results
- The program was completed on time and under the expected conditions
- The program reduced the production costs with 2$/barrel
- Had positive effects on the production volumes and on the operational safety
- Led to the improving of the situation of the environment, as well as to the improving of the location conditions
Project Management Excellence Award in Romania in 2008.
International Project Excellence Award from IPMA (International Project Management Association) in 2009.
This was the first time when a company from Romania won the Global Excellence Award in Project Management.
Event Agenda
9:00 – 9:30
Receiving guests
9:30 – 9:45
WELCOME
Tiberiu VULPES, PMP, General Manager Infinity Business Solutions
9:45 – 10:15
General concept of risk management in projects
Dan PRECUPESCU, Executive Manager, Infinity Business Solutions
- Identification and Risk Assessment
- Probabilistic Methods
- Tracking results and control
10:15 – 11:00
Primavera Risk Analysis – Dedicated risk management solution
Adrian PREDOI, PMP, Technical Manager, Infinity Business Solutions
- Impact on cash flow risk investment projects
- Objective determination of reserve time and money (P20 vs. P80)
11:10 – 11:15
Coffee break
11:15 – 12:00
Interactive workshop – project risk analysis
Tiberiu VULPES, PMP, General Manager Infinity Business Solutions
12:00 – 12:45
Lessons learned regarding risk management in large-scale investment projects
Special guest: Ovidiu BRADIN, PMP, Projects & Engineering | Project Support Services OMV Petrom S.A. | E&P Development
Location
Phoenicia Grand Hotel – Saidon room, Bucharest
For registration:
office@infinitybiz.ro sau ana.geaman@infinitybiz.ro
call office: +40 21.232.11.38
mobile: +40 763.056.192
