COMPUTER-AIDED PROJECT MANAGEMENT:THE CAPM PLATFORM

THE CAPM PLATFORM

An organization needs to have available for project managers, project teams, line managers, and senior managers a tool set that facilitates the activities of the management processes noted above.

An example of one type of tool frequently used in project management is a list of items that, when completed, would signify the completion of a project deliverable—a punch list is one such list that is regularly used to this day in construction projects. More and more, these tools are being incor- porated into computer applications. In this section, we will take a look at tools that are available, or are being constructed, to automate the concentric circle processes.

Automating the Project Management Core Processes

Before proceeding, a brief word of caution is in order. It is the mistaken belief of many that in order to manage projects effectively, one merely needs to purchase a project management tool and become trained in use of the tool (the ‘‘buy ’em a tool and send ’em to school’’ approach). This is possibly the worst approach that could be taken to improve the effectiveness of project management in an organization. We have already noted that project management predated the commercially available tools to aid that endeavor, so we know that it is possible to manage projects effectively without the use of automation. The single most important thing to remember about these tools is that it is not the tool, but rather the people using the tool, who manage the projects. In order for people to use the tools properly, they must first master the techniques upon which these tools are based.

As an example, to develop useful data for scope, time, and cost management, the successful tool user must have a working knowledge of scope statement development; work definition (through work breakdown structures or other such techniques): activity estimating (three-point estimating of both effort and duration); precedence diagramming method (also known as project network diagramming); and progress-evaluation techniques (such as earned value). Expecting success through the use of a tool without a thorough prior grounding in these techniques is like expecting someone who has no grounding in the basics of writing (grammar, syntax, writing technique) to use a word-processing application to produce a novel. Some novels on the market notwithstanding, it just does not happen that way. With this firmly in mind, let’s look at the types of tools one might use in modern project management.

Scope, Time, Cost, and Resource Management

The preponderance of tools on the market today are those that aid project managers in time and cost management (commonly called schedule and budget management). In addition, many of these tools include resource management. These tools can be helpful in:

• Developing activity lists (project scope) and displaying work breakdown structures

• Noting activity estimates (in some cases, calculating ‘‘most likely’’ estimates for three-point estimating techniques)

• Assigning dependencies (precedence structure) among activities

• Calculating and displaying precedence diagrams (PERT charts)

• Calculating and displaying project schedules (Gantt charts)

• Assigning individual or group resources

• Setting and displaying calendars (both for the project and for individual resources)

• Calculating project costs (for various types of resources)

• Entering time card and resource usage data

• Tracking project cost, schedule, and resource data

• Rescheduling and recalculating schedule and cost data after input of activity actual data

• Calculating and displaying project progress

• Leveling resources

• Displaying resource histograms

• Sorting and filtering for various scenarios

• Generating reports for use by various project stakeholders

These are just some of the capabilities that can be found in these tools (see the section on selecting tools below for a citation of an extended list of these capabilities). The tools that can be used for such an effort are too numerous to list. Examples of these are Microsoft Project 98, PS7, and Artemis. For some of the low-end tools (particularly for MS Project 98), there is an after-market of tools that can be used in conjunction with the primary tool to help it do its job more effectively. These range from tools like GRANEDA Dynamic (which provides an excellent graphical interface to print pro- fessional-looking precedence diagrams, Gantt charts, and work breakdown structures) to tools such as Project 98 Plus (which provides a very user-friendly interface for sorting and filtering for MS Project 98).

Risk Management

Since two characteristics that we have attributed to project work are its unique nature and its time limitations, projects are inherently risky. Many projects run into problems or fail altogether because an inadequate job was done around risk management. Project risk management is a three-step process that involves:

1. Identifying, assessing, and documenting all potential project risks

2. Developing risk avoidance and mitigation plans

3. Implementing these plans when the risks occur

Clearly, this is not a process that ends once the project-planning activities have been completed. Rather, project managers need to monitor and assess potential project risk throughout the entire conduct of the project.

One type of risk that all project managers face is that associated with project schedules. A typical method for handling this risk is to run Monte Carlo simulations on the project precedence diagram (PERT chart). This is done by (1) assigning random durations (within predefined three-point activity estimates) to individual activities, (2) calculating project duration over and over for hundreds (some- times thousands) of repetitions, and (3) analyzing the distribution of probable outcomes of project duration. There are a number of tools on the market that perform these tasks. Two of the most popular are @Risk and Risk+. Other fine tools are also available that perform similarly. These tools can perform simulations on practically any project calculations that lend themselves to numerical analysis. The output of these tools is the analysis of probable project durations in both numerical and graphical formats (see Figure 7).

Why is it important to use tools like these to help us manage risk? Quite simply, single-point project estimates are rarely, if ever, met. Project managers need to understand the probable range of outcomes of both project cost and duration so they can make informed decisions around a host of project issues (e.g., setting project team goals, deciding when to hire project personnel). They also need this information to set proper expectations and conduct intelligent discussions with the project team members, senior managers, and customers. The correct use of such tools can help project managers do just that.

In addition to these tools, other tools are available to help track the status of potential risk events over the course of a project. One such tool, Risk Radar, was designed to help managers of software- intensive development programs. Regardless of the intended target audience, this tool can be quite helpful for any type of project risk-tracking effort. With the proper input of risk data, it displays a

graphic depicting the number of risk events with similar risk exposure and lays them out on an easily understood grid. This is a common way to track risk. An example of a similar grid is shown below (see Figure 8).

Change Management

As noted earlier, there are two types of changes with which project managers need be concerned. The first is a change in the scope of work of the project. Most projects encounter scope changes during the evolution of work on the project. Since scope changes almost always result in budget and schedule changes, it is very important to track them accurately. This can usually be done by using the scope, time, cost, and resource-management software discussed above.

The second type of change is one that addresses changes in technical project documentation. Technical drawings, quality documents, and electrical wiring diagrams are examples of such docu- ments. There are a number of tools available for these efforts, and they are as diverse as the technical functions that might employ them. They are generically known as configuration management tools. While these will not be addressed in this chapter, project functional teams should make every effort to select tools like these that will help them manage these documents so that current versions are available to all project members who need them.

Communications Management

Communications skills are arguably the most important skill of project management. Similarly, com- munications tools can be considered among the most important project tools. As noted in the PMBOK Guide, Project Communications Management includes the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. It provides the critical links among people, ideas, and information that are necessary for success. Everyone involved in the project must be prepared to send and receive communications in the project ‘‘language’’ and must understand how the communications they are involved in as individuals affect the project as a whole.

Tools that aid managers in project communications are not terribly different from those that are used in operations communications. They include:

• Word processors (e.g., WordPerfect, MS Word)

• Presentation tools (e.g., MS PowerPoint, Corel PRESENTS)

• Spreadsheets (e.g., Lotus 1-2-3, MS Excel)

• Individual and workgroup communications tools (e.g., e-mail, Lotus Notes)

With the availability of Internet communications and the advent of tools similar to those noted above, tool sets such as these should be readily available for use by project teams.

Automating the Organizational Support Processes

Like the communications tools discussed above, tools that are useful in the organizational support processes are those that have been used for some time in operations management. Operations man- agement processes are, after all, operations work (line or functional management) as opposed to project work (project management). Since operations management has been taught in business schools for decades, there are tools on the market that can aid in various aspects of these endeavors. While these tools are too numerous to discuss here, some have been designed with the express purpose of supporting project management activity. Among them are:

• Multiproject resource-management tools: These tools help line managers manage scarce re- sources across the many projects in which their organizations are involved. They include tools such as ResSolution* and Business Engine.

• Project portfolio management tools: These are tools that help senior managers balance the accomplishment of their organizational goals across the range of projects, both ongoing and potential, in their organizations. They address issues such as budget, benefits, market, product line, probability of success, technical objectives, and ROI to help them prioritize and undertake projects. One such tool that does this is the project portfolio module of Portfolio Plus.

• Activity and project historical databases: These are tools that help a project team and all managers more accurately estimate the outcomes of their projects. Among the many problems that arise in projects, an unrealistic expectation about project outcomes is one of the most flagrant. One reason for these unrealistic expectations is the poor quality of activity-level esti- mates. One way to increase the accuracy of these estimates is to employ three-point estimating techniques, which have been referred to above. An even better way of increasing the accuracy of estimates is to base them on historical data. Were one to examine the activities that are performed over time in an organization’s projects, it would become apparent that many of the same types of activities are performed over and over from one project to another. In some cases, nearly 80% of these activities are repeated from one project to another. Unfortunately, in many organizations, such historical data is rarely available for project team members to use for esti- mating. Consequently, three-point estimating techniques need to be universally employed, pro- ject after project. Once organizations develop, maintain, and properly employ accurate activity historical databases, the need for the relatively less accurate three-point estimates (remember that single-point estimates are much less accurate than three-point estimates) will be reduced, thereby resulting in more accurate estimates at both the activity and project levels.

Finally, we should mention that while integration of all the types of tools discussed is probably technologically possible, it is not always either necessary or desirable. In fact, it is the author’s belief that in some instances, particularly in the case of multiple-project resource management, it is better to do detailed management of project resources within the context of the center circle and less detailed management at a higher level within the context of the outer circles without daily integration of the two activities.