American Academy of Project Management (AAPM) Theories, Practice & Application(s)
Updated: May 16, 2019
Concise project management starts with applicable theory. Theory is rooted in fundamental knowledge. Knowledge must include coverage of all aspects of project management.
Triple Constraint & Scope
Project management discusses theory of triple constraint: cost, schedule, scope. The inter-relationship of the the triple constraint is one variable affects the other. If Schedule milestones are missed the cost is affected. If cost experiences over-runs the schedules can be affected. Negative effects on cost and schedule directly influence scope. All faucets of triple constraint affect one another.
Understanding the affect that each item has on the goals of your project is fundamental to efficient project management. The Scope of your project is the guide post to your activities. Without properly identifying scope projects are doomed. Understanding the interdependence of each component allows proper risk assessment. With risk assessment comes the second skill of project management.
Project management revolves around sound risk management and the project manager's ability to institute quality control. Quality control deals with budget constraints. Cost over runs and schedule delays are the primary hurdles projects deal with. These hurdles center the basis for risk in projects. Risk requires sound implementation of Risk Management. Risk Management deals with risk through 1) Risk Transfer, 2) Risk Mitigation, or 3) Risk Acceptance.
Figure 1.2 discusses rating risk from 1 to 3. The ratings for risk are low, medium and high. Risks that have low severity and high likely hood of occurrence may result in risk mitigation. Risks that have high severity and low likely hood may still require risk mitigation. Low severity and low likelihood may result in acceptance. Given the severity is low and the chance low cost benefit analysis may not justify address.
Typically risk that categorize in red require Risk Transfer. Risk that categorize in orange require Risk Mitigation. Risk that categorize in green are accepted. Risk is revealed by accurately determining project scope and understanding the triple constraint relationship. In order to design efficient project charters a fundamental understanding of these concepts is required.
How to Define Project Scope
Defining Project Scope begins with analyzing: goals, budget, time and requirements. The goal is the finish line. What are you trying to accomplish? The budget is asking the obvious question. How much money do you have to make it happen? Time is how long you have to complete the task. You cannot undertake the construction of a bridge in thirty days. Requirements are the resources required to satisfy the goal, time, and quality required to measure success. Once you define your project's scope you can begin to enter the planning phase.
Project Managers rely upon business case studies and a step by step guide to accomplish things. We do not conduct research papers. Feasibility studies, environmental impact studies and engineering reports are focused research papers that discuss theory and applicability to your project. Project Charters make sense of theory and put the knowledge into action. A good Project Charter contains two parts.
Project Governance Part 1
The Project Governance gives the background of the project. The background discusses the situation. Project Governance will also include the purpose, objectives, scope of activities and discuss the Project Management Strategy. Project Governance should also cover an organizational chart of the Project Team. The Project Governance lastly addresses the Stakeholders in a Project.
Project Management Part 2
The Project Management portion of the Project Charter details the Project Schedule, Project Costs, Financial Analysis and details Quality Control. Quality Control will also annotate Performance Metrics. Risk Assessment is included (as detailed above) along with a sound Communication Plan. Communication Plans are: Who, How, What, Why, Purpose, Role, et cetera. Support Plans are formal studies relied upon that incorporate related plans and third party documents. Assumptions are always detailed along with the Terms & Conditions of Engagement.
A Work Breakdown Structure (WBS) and Gannt Chart should always be included. Without this key component it is impossible to track your project. If possible a financial analysis should be conducted showcasing the value increase for every step of completion. Parametric tracking is useful and will justify cost.
Project management is a robust methodology that applies theory. Practices that detail organization are essential to good project management. This introduction to project management provides the framework which certifying bodies such as the American Academy of Project Management (AAPM) seek to achieve. For more information please contact our staff to discuss how project charters can be used for your project.
Knight Advisory & Planning (KAP) is the only company to primarily focus on Public Private Partnerships (P3) since 2006. KAP operations are spread across countries of the world to serve this need. KAP Network consists of core partners surrounded by interlocking networks of consultants and affiliates in key trading countries and disciplines. We maintain Master Project Manager (MPM) who are American Academy of Project Management (AAPM) certified and are experienced in the following industries: construction, development, finance, technology, FinTech, biotechnology, production, R&D, and manufacturing. With over twenty (20) years of experience let us guide you through the P3 process.