Module 1 -Strategic Project Assessment & Selection
Identification of appropriate investment projects is based on the overall corporate strategy, strategic goals and commercial policies of the organization. It is vital that the process of project identification be closely aligned with corporate strategies, goals and policies.
-
Based on the portfolio of projects identified against the requirements of the strategic corporate strategy and goals, it becomes imperative to evaluate individual projects based on technical criteria to determine their technical viability.
- Key issues in project analysis
- Market analysis – supply and demand
- Technical analysis – technical viability
- Financial analysis – financial viability
- Economic analysis – social cost-benefit
- Environmental analysis
- Risk analysis – levels of risk associated with the project
- Analysis of technical and engineering aspects
- Technical viability
- Location
- Process, equipment, methods, procedures
- Size – optimal scale of operation
- Environmental analysis
- Consideration on environmental aspects
- Applicable regulations and specifications
- Due diligence
Key Topics
- Corporate Strategy and Organizational Projects
- Setting the Stage for Project Alignment with Strategy
- Developing a Strategic Management Plan
- The Strategic Management Process
- Environmental Analysis and Portfolio Development
- The Aggregate Strategic Project Plan
- Objective Directed PM Process
- Project Management Definitions
- Project Classification
- Characteristics of a Project
- The Project Life Cycle
- Project Development Life Cycle
- The Project Process Model
- Knowledge Areas & Project Process Flow
- The Triple Constraint
Technical Evaluation Analysis
Module 2 - Project Program Structures, Systems and Processes
Project Programs, Systems and Structures provide an integrated mechanism for the process of project selection and assessment based on (1) corporate strategies, goals and policies, and (2) financial feasibility and technical viability. Day Two examines the requirements for project program management within the organization as a whole, which is an essential element of project integration at the strategic level
Key Topics
- Developing Strategic Business Criteria for Project Evaluation
- Linking Business Strategy and Multiple Projects
- Establishing Weighted Scoring Models
- Integrated Enterprise Project Planning and Management Cycle (IPPMC)
- Program Management and Portfolio Management
- Program Management and Project Management
- Program Management in Organisational Planning
- Program Governance
- The Program Life-Cycle
- Benefits Management
- Stakeholder Management
- Program Governance through Phase-Gate Reviews
- Program Management Life-Cycle Phases
- Pre-Program Set Up
- Program Set Up
- Program Management and Technical Infrastructure
- Program Close-Out
- Development of Corporate Structures for Program Management
- Integration of Functional Departments
Module 3 -Project Contract Types & Compensation Arrangements
Once specific projects and programs have been identified, an important element of the overall decision-making process is to determine the most appropriate contracting approach to ensure that corporate goals are realized and risk eliminated. Day Three explains the three primary contracting approaches, including the various types of contracts based on these approaches.
Key Topics
- Fixed Price contracts
- Firm fixed price
- Fixed price with economic price adjustment
- Unit price contracts
- Unit price with escalation
- Fixed price with redetermination
- Time and material
- Cost-Plus contracts
- Cost sharing
- Cost reimbursement
- Cost plus award fee
- Cost plus fixed fee
- Cost plus percentage of cost
- Incentive contracts
- Fixed Price Incentive
- Cost Plus Incentive
Module 4 -Sourcing and Selecting Suppliers, Consultants and Contractors
The next step in the process of project identification is the careful and deliberate selection of consultants, suppliers and contractors to ensure that only those capable of meeting the strategic, tactical and technical objectives of the organization, in the shortest possible time, at the highest technical quality, and at the most economical cost to the organization, are engaged in providing these critical services to the organization. Day Four looks at the most appropriate source selection techniques for a given project or program.
Key Topics
- The Source Selection Method
- Selection and Management Actions
- Evaluation Criteria
- Contractor Evaluation – Plant and Site Surveys
- Two-step Selection Process
- Step 1 – Qualifications-Based Selection of Design Professional
- Step 2 – Clarification of Engineering Services to be Provided
- Pre-Award Stage
- Bid/Enquiry Planning
- Bid Package Development
- Award Stage
- Competitive Bids
- Competitive Proposals and Negotiations
- Non-Competitive Methods
- Bid Evaluation
- Post-Award Stage
- Contract Execution & Administration
Module 5 - Project Execution Management, Control and Reporting
Estimation of project costs is based on identified activities and allocated resources. This provides the basis for accurate progress and cost control against the contractual baseline, which is used to analyze deviations and make accurate projections of final cost and completion dates. Day Five explains the internationally-recognized process of Earned Value Management to control and manage project execution.
Key Topics
- Bid Documents Development
- Project Resource Table & Budget
- Project Cost Baseline Management
- Project Management Reporting
- Earned Value Control Process
- Progress Control Charts – Trend Analysis
- Schedule and Cost Variance Forecasting
- Schedule Variance (SV)
- Cost Variance (CV)
- Schedule Performance Index (SPI)
- SPI Run Chart
- Cost Performance Index (CPI)
- CPI Run Chart
- Estimated Cost at Completion
- Estimated Duration at Completion
- Progress Tracking and Monitoring
Module 6 - Fundamental Principles of Project Risk Management
A review of the fundamental principles of Project Risk Management.
Key Topics
- Definitions – What is risk?
- The triple constraint & stakeholder analysis
- Risk management processes & model
- Establish risk context and criteria
- Identify the risk events, risk triggers (causes), and risk receptors (effects)
- Analyze risk events by qualitative or quantitative methods
- Formulate risk treatment strategies and analyze the effect of each on the risk cost
- Implement the selected risk strategies
- Identifying potential risk events
- Techniques for identifying risk events
- Identifying triggers, indicators and receptors
- Risk scenario description
Module 7 - Project Risk Analysis, Assessment & Quantification
Various methods used for qualitative and semi-quantitative risk analysis.
Key Topics
- Qualitative and semi-quantitative risk analysis techniques
- Risk matrices and risk ranking
- Techniques for identifying risk events
- Regular expert panel meetings
- Brainstorming
- Delphi technique
- Nominal group technique (NGT)
- Crawford slip
- Fishbone Diagramming
- Qualitative descriptions of probability
- Qualitative descriptions of impact
- Qualitative risk analysis matrix
- Risk response strategies
- Progressive risk management plan development
Module 8 - Project Risk Analysis and Outcomes Modelling
More advanced techniques for quantitative risk analysis by estimating probability and impact.
Key Topics
- Detailed risk quantification and prioritization
- Risk characteristics
- Risk matrices and risk ranking
- Estimating probability
- Estimating impact
- Weighted probability & impact rating
- Risk ranking
- Progressive risk management plan development
- Expected Monetary Value concepts (EMV)
- Risk quantification and EMV
- Decisions under conditions of uncertainty
Module 9 - Project Risk Strategy Development
Explores the development of risk mitigation strategies aimed at minimizing the potential impact of risk events on the project
Key Topics
- Risk Quantification and Expected Monetary Value
- Best case scenario
- Base case scenario
- Worst case scenario
- Decisions under conditions of uncertainty
- Risk treatment objectives
- Procedure for risk strategy development
- Risk response development matrix
- Risk strategy development and implementation
- Forecasting annual project cash flows over the economic life
- Financial scenario planning and risk mitigation
Module 10 - Project Risk Scenario Planning & Mitigation
The relationship between project risk and the financial feasibility of the investment.
Key Topics
- Advanced scenario planning
- Advanced risk mitigation strategies
- Procedure for risk strategy development
- Risk response strategies
- Risk acceptance
- Risk prevention
- Risk avoidance
- Risk mitigation
- Risk transfer & contracting
- Implementing mitigation strategies
- Multiple option decisions
- Combining risk and cash flow analyses
PM19
