I have been burned more times than I can count by bad estimates. What can a project manager do to help ensure the accuracy of estimates? First we should understand the basics behind the estimating process (there are many more than I have listed here). Some items to consider are:
The more unique the project, the more of a challenge it will be to get good estimates
Estimates are only as good as the estimator is at predicting the future
Padded" estimates are not always bad as long as the padding is communicated (... and as long as the Project Manager is the one doing the "padding")
An estimate is not a bid
Estimates using sound estimating practices, performed by experienced estimators from clear specifications should never be negotiated
Ballpark estimates are guesses and should be treated as much by the project team, management, and the project sponsor
Other items to consider when estimating are:
Ensure the statement of work or contract is clear and understood by the person(s) doing the estimates
Ensure that a schedule or mandated date doesn't drive the estimating thought process
Include Risk Management in the estimating process
Ensure that estimates take into account the skill level(s) of the person(s) that will do the work
If your work breakdown structure (WBS) is flawed, your estimates will be inaccurate
Accurate estimating is an art and a science. The estimator (or team) must take into account historical data from past projects, the team's knowledge and experience, the project risks, the statement of work and other project information to make the best estimate possible.
Keep in mind when planning your project that estimates aren't hard and fast numbers. They are guesses, however they should be very good guesses if you have good estimators and are following tried and true estimating practices.
Monday, November 30, 2009
Monday, November 23, 2009
Deming and Project Management
Continuous Improvement is the output of a good Quality Management process, and Continuous Improvement requires the proper application of quality tools and techniques. One of the most recognizable Quality Tools is the "Deming Wheel". The Deming Wheel is a simple diagram that focuses efforts around four processes: PLAN, DO, CHECK, and ACT (PDCA Cycle). While this diagram may seem simplistic at first sight, it is a very powerful tool when applied to projects. In fact, Project Management is dependent upon the PDCA Cycle to deliver effective results.
A quick summary of the PDCA Cycle follows.
Plan is the initial phase of the PDCA Cycle. High levels goals and objectives are agreed upon and resources are acquired. In this phase we are identifying a particular problem or problems and breaking them down into manageable tasks. We want to decide specifically how we will solve the problem and establish metrics to measure progress.
Do is executing the Plan. Also, reporting is done in this phase to check progress. Do can be prototyping in the IT world, designing experiments, constructing a building, building a model, etc.
Check is the evaluation phase. Did we do what we said we were going to do? Did we meet the project's objectives? What does the data tell us? This is where are metrics are analyzed. We are looking at our KPIs (Key Performance Indicators) and making recommendations for action.
Act is the adjustment phase. What are we going to do to get back on track or to make improvements? Should we continue or cancel the project? Do we need to re-plan and start the cycle over again? Here we are acting on our findings from the Check phase. We want to make sure we are acting on the right information at the right time.
The PDCA Cycle is a great tool to help us be successful in Project Management. Using proven Quality Management tools that support Continuous Improvement will help project managers to do a better job managing their projects.
Remember the Four Principles of Quality Management are:
Customer Satisfaction
Plan Do, Check, Act (PDCA) Cycle
Management by Fact
Respect for People
Combining these Quality Principles with your Project Management Processes will lead to powerful results for your customers.
A quick summary of the PDCA Cycle follows.
Plan is the initial phase of the PDCA Cycle. High levels goals and objectives are agreed upon and resources are acquired. In this phase we are identifying a particular problem or problems and breaking them down into manageable tasks. We want to decide specifically how we will solve the problem and establish metrics to measure progress.
Do is executing the Plan. Also, reporting is done in this phase to check progress. Do can be prototyping in the IT world, designing experiments, constructing a building, building a model, etc.
Check is the evaluation phase. Did we do what we said we were going to do? Did we meet the project's objectives? What does the data tell us? This is where are metrics are analyzed. We are looking at our KPIs (Key Performance Indicators) and making recommendations for action.
Act is the adjustment phase. What are we going to do to get back on track or to make improvements? Should we continue or cancel the project? Do we need to re-plan and start the cycle over again? Here we are acting on our findings from the Check phase. We want to make sure we are acting on the right information at the right time.
The PDCA Cycle is a great tool to help us be successful in Project Management. Using proven Quality Management tools that support Continuous Improvement will help project managers to do a better job managing their projects.
Remember the Four Principles of Quality Management are:
Customer Satisfaction
Plan Do, Check, Act (PDCA) Cycle
Management by Fact
Respect for People
Combining these Quality Principles with your Project Management Processes will lead to powerful results for your customers.
Thursday, November 19, 2009
Hope and the Project Manager
Hope is important in project management because it helps us keep our commitments, and also helps us put our faith in others . Don’t get me wrong. Hope won’t make you successful; however, hope can guide us to change the unchangeable and gives us courage to do the right things.
Hope gets us ready to fight the good fight. Hope helps us survive the storms that always come. Hope can dispel fear and give us the strength to carry on. To be good project managers (and leaders) we must always realize (and hope) that our best days are ahead of us.
Hope inspires confidence. Hope is contagious. Hope helps us keep commitments.
Hope gets us ready to fight the good fight. Hope helps us survive the storms that always come. Hope can dispel fear and give us the strength to carry on. To be good project managers (and leaders) we must always realize (and hope) that our best days are ahead of us.
Hope inspires confidence. Hope is contagious. Hope helps us keep commitments.