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Session 3
THE PMP® EXAMPREP COURSE
PMI, PMP and PMBOK are registered marks of the Project Management Institute, Inc.
Agenda
9:00 – 10:15
10:15 – 10:30
10:30 – 12:00
12:00 – 12:45
12:45 – 2:15
2:15 – 2:30
2:30 – 4:00
Practice the PMP Exam Questions
Break
Cost Management Part 1 (Pass the PMP® Exam Ch. 5)
Lunch
Cost Management Part 2 (Pass the PMP® Exam Ch. 5)
Break
Quality Management (Pass the PMP® Exam Ch. 6)
2
Practice PMP Exam…
Chapters 5–6 The PMBOK® Guide
You have 50 questions
Mark each one as A, B, C, or D
You have 50 minutes to answer as many as possible –
in the exam you would have 1 hour
Good luck!
3
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COST MANAGEMENT
Chapter 5 of Pass the PMP ® Exam
Chapter 7 of the PMBOK® Guide
Overview
Low
Medium
High
5
Cost Management
You will need to know all the formulas
All the formulas make sense – learn the logic
Write down all the formulas as soon as you are allowed to start writing in the exam
6
Cost Management
Links in very tightly with Scope and Time management
Initiating Planning ExecutingMonitoring &
ControllingClosing
Project Management Process GroupsKnowledge
Area
Processes
• Control Costs
Project Cost
Management
7
• Plan Cost
management
• Estimate
Costs
• Determine
Budget
Table 3-1. Project Management Process Groups and Knowledge Area MappingA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
.1 Inputs
.1 Project management plan
.2 Project charter
.3 Enterprise environmental factors
.4 Organizational process assets
.2 Tools and Techniques
.1 Expert Judgment
.2 Analytical techniques
.3 Meetings
.3 Outputs
.1 Cost management plan
.1 Inputs
.1 Cost management plan
.2 Scope baseline
.3 Activity cost estimates
.4 Basis of estimates
.5 Project schedule
.5 Resource calendars
.6 Agreements
.7 Organizational process assets
.2 Tools and Techniques
.1 Cost aggregation
.2 Reserve analysis
.3 Expert judgment
.4 Historical relationships
.5 Funding limit reconciliation
.3 Outputs
.1 Cost baseline
.2 Project funding requirements
.3 Project document updates
Project Cost Management
7.1 Plan Cost Management 7.3 Determine Budget
.1 Inputs
.1 Project management plan
.2 Project funding requirements
.3 Work performance data
.4 Organizational process assets
.2 Tools and Techniques
.1 Earned value management
.2 Forecasting
.3 To-complete performance index
(TCPI)
.4 Performance reviews
.5 Project management software
.6 Reserve analysis
.3 Outputs
.1 Work performance information
.2 Cost forecasts
.3 Change requests
.4 Project management plan updates
.5 Project document updates
.6 Organizational process assets
updates
7.4 Control Costs
8
7.2 Estimate Costs
.1 Inputs
.1 Cost management plan
.2 Human resource management plan
.3 Scope baseline
.4 Project schedule
.5 Risk register
.6 Enterprise environmental factors
.7 Organizational process assets
.2 Tools and Techniques
.1 Expert Judgment
.2 Analogous estimating
.3 Parametric estimating
.4 Bottom-up estimating
.5 Three-point estimating
.6 Reserve analysis
.7 Cost of quality
.8 Project management software
.9 Vendor bid analysis
.10 Group decision making techniques
.3 Outputs
.1 Activity cost estimates
.2 Basis of estimates
.3 Project document updates
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
9
Inputs Tools and Techniques Outputs
.1 Project management plan
.2 Project charter
.3 Enterprise environmental
factors
.4 Organizational process assets
.1 Expert Judgment
.2 Analytical techniques
.3 Meetings
.1 Cost management plan
Plan Cost Management
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
10
• This is the process where you develop your cost
management plan which will guide you and the project
team in the development of individual cost estimates
and the project budget
• It will also provide guidance on how changes to the
project costs and budget will be managed.
Plan Cost Management
Variable Costs vs. Fixed Costs
Direct Costs vs. Indirect Costs
Sunk Costs
11
Cost Types
12
Inputs Tools and Techniques Outputs
.1 Cost management plan
.2 Human resource management
plan
.3 Scope baseline
.4 Project schedule
.5 Risk register
.6 Enterprise environmental
factors
.7 Organizational process assets
. 1 Expert Judgment
.2 Analogous estimating
.3 Parametric estimating
.4 Bottom-up estimating
.5 Three-point estimating
.6 Reserve analysis
.7 Cost of quality
.8 Project management software
.9 Vendor bid analysis
.10 Group decision making
techniques
.1 Activity cost estimates
.2 Basis of estimates
.3 Project document updates
Estimate Costs
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
May be performed multiple times
“Controlling definitely beats preliminary concepts by
an order of magnitude”
13
ESTIMATE TYPE ESTIMATE RANGE
Order of Magnitude Estimate -50% to +100%
Rough Order of Magnitude Estimate -25% to +75%
Conceptual Estimate -30% to +50%
Preliminary Estimate -20% to +30%
Definitive Estimate -15% to +20%
Control Estimate -10% to +15%
Estimate Costs
Analogous Estimating
Bottom Up Estimating
Parametric Estimating
Three-point estimates
You know these concepts from Time Management!
14
Cost Estimating Tools & Techniques
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Reserve Analysis
– Management Reserve (Unknown Unknowns)
– Contingency Reserve (Known Unknowns)
Project management estimating software
Vendor bid analysis
15
Cost Estimating Tools & Techniques
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Cost of Quality (COQ)
– Also used in Quality Planning
– Mirrored by Cost of Poor Quality (COpQ)
– Decisions to reduce quality rarely save costs. They usually transfer costs to other parts of the product lifecycle.
16
Cost Estimating Tools & Techniques
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Estimate Costs Outputs
Activity Cost Estimates
Basis of Estimates
Project document updates
17
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Cost vs. Budget
The difference is …..
Project costs are individual cost estimates for specific activities and work packages which when aggregated form a total project cost estimate.
The project budget are your project costs over time.
18
19
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute Inc., 2013, Page 213.
20
Determine Budget
21
Inputs Tools and Techniques Outputs
.1 Cost management plan
.2 Scope baseline
.3 Activity cost estimates
.4 Basis of estimates
.5 Project schedule
.5 Resource calendars
.6 Agreements
.7 Organizational process assets
.1 Cost aggregation
.2 Reserve analysis
.3 Expert judgment
.4 Historical relationships
.5 Funding limit reconciliation
.1 Cost baseline
.2 Project funding requirements
.3 Project document updates
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Determine Budget
Budget = Cost Baseline
The cost budgeting process time phases the costs so
that the performing organisation will know how to plan
for cash flow and likely expenditures
22
Determine Budget Inputs
.1 Activity cost estimates
.2 Basis of estimates
.3 Scope baseline
.4 Project schedule
.5 Resource calendars
.6 Agreements
.7 Organisational process assets
23
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Determine Budget Tools &
Techniques
.1 Cost aggregation
.2 Reserve analysis
.3 Expert judgment
.4 Historical relationship
.5 Funding limit reconciliation
24
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
25
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute Inc., 2013, Page 214.
Determine Budget Outputs
.1 Cost performance baseline - Specifies how much
and when
.2 Project funding requirements
.3 Project document updates
26
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Costs and Budget
Control Costs
28
Inputs Tools and Techniques Outputs
.1 Project management plan
.2 Project funding requirements
.3 Work performance data
.4 Organisational process assets
.1 Earned value management
.2 Forecasting
.3 To-complete performance
index (TCPI)
.4 Performance reviews
.5 Project management software
.6 Reserve analysis
.1 Work performance
information
.2 Cost forecasts
.3 Change requests
.4 Project management plan
updates
.5 Project document updates
.6 Organisational process assets
updates
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Cost Control
Similar to other control areas we have covered to date,
i.e. scope and time control
The project manager is proactive
Measure actual against planned
Used to forecast future performance!
29
Cost Control Inputs
.1 Project management plan
.2 Project funding requirements
.3 Work performance data
.4 Organisational process assets
30
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Cost Control Tools & Techniques
.1 Earned value management
.2 Forecasting
.3 To-complete performance index (TCPI)
.4 Performance reviews
.5 Reserve analysis
.6 Project management software
31
Figure 7-1. Project Cost Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Earned Value Technique
Method to measure project performance against the
project baseline (actual vs. planned)
Helps analyse and understand deviations
32
33
34
35
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute Inc., 2013, Page 219.
Figure 7-12. Earned Value, Planned Value, and Actual Costs
36
Real EV Data Example
A ‘three line graph’ based on real project data
For a real client (who didn’t really understand – make
sure you do!)
37
Project Status Report
38
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2400
2600
2800
BCWS
BCWP
ACWP
PVEV
AC
Earned Value Terms
BAC = Budget at Completion
– How much you originally planned for the project to cost
39
Earned Value Terms
PV = Planned Value (BCWS)– How much you planned to spend on what you planned to have
achieved
– The position you should be in at the present point in time
EV = Earned Value (BCWP)– How much you planned to spend on what you actually achieved
– The value of the work that has been completed at the present
point in time.
AC = Actual Cost (ACWP)– How much you actually spent on what you actually achieved
– The cost incurred at the present point in time.
40
Example
You are a project manager on a project to complete
15km of road. Your approved budget for the project is
$930,000, and you have forecast that the project will
take 35 weeks to complete. You are 13 weeks into the
project, and have constructed 7km of road at a cost of
$58,000 per km.
Use this information to calculate the following at the
present point of the project;
– Budget at Completion (BAC)
– Actual Cost (AC)
– Planned Value (PV)
– Earned Value (EV)
41
Earned Value Terms
EAC = Estimate at Completion
– How much it’s looking like it’s going to cost based on
what you’ve done so far
– There are four possible formulae;
– AC + ETC
– BAC/CPI
– AC+ (BAC-EV)
– AC+[(BAC-EV)/(CPIc x SPIc)]
42
Earned Value Terms
ETC = Estimate to Complete
– How much you still have to spend to get it done
VAC = Variance at Completion
– Difference between what you thought the project
would cost and what it actually ends up costing
43
Grouping
Group I
BAC
AC
PV
EV
44
Group II
CV = EV - AC
CPI = EV / AC
SV = EV - PV
SPI = EV / PV
Formulas – Cost Variance
CV = EV – AC
– The difference between what you’ve done should
have cost you and what it actually cost you
For example:
According to your project plan, you should spend $18
to make three widgets. You’ve produced three widgets,
but have spent $20. Your Cost Variance is -$2.
45
Formulas – Schedule Variance
SV = EV – PV
– The difference between how much you’ve
accomplished and how much you had planned to
accomplish by now
For example:
According to your project plan, at this point you should
have produced five widgets for a value of $30. You’ve
produced three widgets with a value of $18. Your
Schedule Variance is -$12.
46
Handy Hint
For Cost Variance and Schedule Variance, positive is
positive!
47
Formulas –
Schedule Performance Index
SPI = EV/PV
– The ratio of how much you’ve accomplished to how
much you planned to accomplish
For example:
You’ve produced three widgets worth $18. You should
have produced five widgets worth $30. Your Schedule
Performance Index is 0.6.
48
Formulas –
Cost Performance Index
CPI = EV/AC
– The ratio of how much it should have cost to how
much it actually cost for a given period of time
For example:
In September, you should have made three widgets at
a cost of $18. You spent $20 to make them. Your Cost
Performance Index for September is 0.9.
49
Formulas –
Cumulative CPI
Cumulative CPI = CPIc
– CPI from the beginning of the project, not just for any
given period of time
50
For example:
By now you should have made 10 widgets at a cost of
$30. You’ve made 10, but it cost you $40. Your CPIc
is
0.75.
Handy Hint
For Cost Performance Index and Schedule Performance
Index, greater than one is great!
51
More Handy Hints
Wherever EV is used in a formula it nearly always comes first
If it is a variance it is EV minus something
If it is an index it is EV divided by something
If the formula relates to cost use AC
If the formula relates to schedule use PV
52
Formulas - Estimate at Completion
EAC = one of four possible formulas!
– How much it’s looking like it’s going to cost based on
what you’ve done so far
– Several ways to calculate depending on the
information you have available – all very logical
53
Formulas - Estimate at Completion v1
EAC = BAC/CPI or BAC/CPIc
– Budget divided by your cost performance to date.
54
For example:
Your project was to create 300 widgets for $900.
Based on your CPI of 0.75, it will actually cost $1,200.
Formulas - Estimate at Completion v2
EAC = AC + ETC
– How much it’s looking like it’s going to cost based on
what you’ve done so far
55
For example:
Your project was to create 300 widgets for $900.
You’ve created 100 widgets for $400, and you
estimate it will cost another $700 to create the next
200. Your EAC is $1,100.
Formulas - Estimate at Completion v3
EAC = AC + (BAC - EV)
– Take your total budget, remove the value you have
earned to date, and add you costs to date.
56
For example:
Your project was to create 300 widgets for $900.
You’ve created 100 widgets with an actual cost of
$400, but an earned value of only $300, meaning you
still have $600 of value left to create. Your EAC is
$1,000.
Formulas - Estimate at Completion v4
EAC = AC + ((BAC - EV)/(CPIC x SPIC))
– Take your total budget, remove the value representing the work
you have actually achieved, divide that by an overall
performance indicator, and then add you costs to date.
57
For example:
Your project was to create 300 widgets for $900. You’ve
created 100 widgets with an actual cost of $400, but an
earned value of only $300. According to the plan, you
should have created 150 widgets by now. You still have
$600 of value left to create, but it will likely cost you
$1,200 to create that value. Your EAC is $1,600.
Formulas - Estimate to Complete
ETC = EAC - AC
– How much more it’s going to cost to finish it.
For example:
Based on your most current calculations, you expect it
will cost $100,000 to build your house. You’ve already
spent $60,000. Your ETC is $40,000.
58
Formulas - Variance at Completion
VAC = BAC – EAC
– The difference between how much you planned for
the project to cost, and how much you think it’s going
to cost now.
59
For example:
You hoped your house was going to cost $80,000, but
it’s actually looking like it’s going to cost $100,000.
Your VAC is –$20,000.
Control Costs - TCPI
The rate at which you have to go to achieve the desired
outcome.
Based on either EAC or BAC
– BAC: (BAC - EV) / (BAC - AC)
– EAC: (BAC - EV) / (EAC - AC)
This is the only time that less than 1 is good and
greater then 1 is bad
60
Control Costs Outputs
.1 Work performance information
.2 Cost forecasts
.3 Change requests
.4 Project management plan updates
.5 Project document updates
.6 Organisational process assets updates
61
And now the big example . . .
You are the project manager on a project to build 40kms
of road at a cost of $10,000 per kilometre over 20 months
At 14 months into the project you have built 22kms of
road and spent a total of $205,000.
Calculate: BAC, AC, PV, EV, CV, CPI, SV, SPI, EAC, ETC
and VAC
Bonus points for using at least 3 different formulae for
EAC!
62
Answers
BAC = $400,000
AC = $205,000
PV = $280,000
EV = $220,000
CV = +$15,000
CPI = 1.07
63
SV = -$60,000
SPI = 0.78
EAC = BAC/CPI = $373,800
EAC = AC + ((BAC-EV)/(CPI x SPI))
=$421,860
ETC = Depends on which EAC you used
VAC = Depends on which EAC you used
Practice Questions
Pass the PMP® Exam, Page 155
64
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QUALITY MANAGEMENT
Chapter 6 of Pass the PMP® Exam
Chapter 8 of the PMBOK® Guide
Overview
Low
Medium
High
66
Quality Management
Initiating Planning ExecutingMonitoring &
ControllingClosing
Project Management Process Groups
Knowledge
Area
Processes
• Plan Quality
Management
• Perform
Quality
Assurance
• Control
QualityProject
Quality
Management
67
Table 3-1. Project Management Process Groups and Knowledge Area MappingA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Quality Management
Management of the degree to which a set of inherent
characteristics fulfills requirements
68
Quality Management
Prevention over inspection
It costs more to fix an error than to prevent one!
69
Quality vs. Grade
Grade refers to the amount of features a product has.
Low grade is fine, low quality is not
70
Precision & Accuracy
Precise
Precise & Accurate
71
Some Basic Concepts
Total Quality Management (TQM)
ISO 9000
Six Sigma
Kaizen
Just in Time (JIT)
72
.1 Inputs
.1 Project management plan
.2 Stakeholder register
.3 Risk register
.4 Requirements documentation
.5.Enterprise environmental factors
.6 Organisational process assets
.2 Tools and Techniques
.1 Cost-benefit analysis
.2 Cost of quality
.3 Seven basic quality tools
.4 Benchmarking
.5 Design of experiments
.6 Statistical sampling
.7 Additional quality planning tools
.8 Meetings
.3 Outputs
.1 Quality management plan
.2 Process improvement plan
.3 Quality metrics
.3 Quality checklists
.4 Project document updates
.1 Inputs
.1 Quality management plan
.2 Process improvement plan
.3 Quality metrics
.4 Quality control measurements
.5 Project documents
.2 Tools and Techniques
.1 Quality management and control
tools
.2 Quality audits
.3 Process analysis
.3 Outputs
.1 Change requests
.2 Project management plan updates
.3 Project document updates
.4 Organisational process asset
updates
Project Quality Management
8.1 Plan Quality
Management
8.2 Perform Quality
Assurance
.1 Inputs
.1 Project management plan
.2 Quality metrics
.3 Quality checklists
.4 Work performance data
.5 Approved change requests
.6 Deliverables
.7 Project documents
.8 Organizational process assets
.2 Tools and Techniques
.1 Seven basic quality tools
.2 Statistical sampling
.3 Inspection
.4 Approved change requests review
.3 Outputs
.1 Quality control measurements
.2 Validated changes
.3 Verified deliverables
.4 Work performance information
.5 Change requests
.6 Project management plan updates
.7 Project document updates
.8 Organizational process assets
updates
8.3 Control Quality
73
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
74
Inputs Tools and Techniques Outputs
.1 Project management plan
.2 Stakeholder register
.3 Risk register
.4 Requirements
documentation
.5.Enterprise environmental
factors
.6 Organizational process
assets
.1 Cost-benefit analysis
.2 Cost of quality
.3 Seven basic quality tools
.4 Benchmarking
.5 Design of experiments
.6 Statistical sampling
.7 Additional quality planning
tools
.8 Meetings
.1 Quality management plan
.2 Process improvement plan
.3 Quality metrics
.3 Quality checklists
.4 Project document updates
Plan Quality Management
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Plan Quality Management
Identifying the quality specifications for the project
Development of:
– The quality management plan,
– The process improvement plan, and
– The configuration management plan
75
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Plan Quality Inputs
.1 Project management plan
.2 Stakeholder register
.3 Risk register
.4 Requirements documentation
.5.Enterprise environmental factors
.6 Organisational process assets
76
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Plan Quality Tools & Techniques
.1 Cost-benefit analysis
.2 Cost of quality
.3 Seven basic quality tools
.4 Benchmarking
.5 Design of experiments
.6 Statistical sampling
.7 Additional quality planning tools
.8 Meetings
77
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Plan Quality Outputs
.1 Quality management plan
.2 Process improvement plan
.3 Quality metrics
.4 Quality checklists
.5 Project document updates
78
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
79
Inputs Tools and Techniques Outputs
.1 Quality management
plan
.2 Process improvement
plan
.3 Quality metrics
.4 Quality control
measurements
.5 Project documents
.1 Quality management
and control tools
.2 Quality audits
.3 Process analysis
.1 Change requests
.2 Project management
plan updates
.3 Project document
updates
.4 Organisational process
asset updates
Perform Quality Assurance
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Perform Quality Assurance
Steadily improving the activities and processes used to
achieve quality
80
Perform Quality Assurance
Don’t confuse with Control Quality!
An executing process, not a control process
81
Perform Quality Assurance Inputs
.1 Quality management plan
.2 Process improvement plan
.3 Quality metrics
.4 Quality control measurements
.5 Project documents
82
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Perform Quality Assurance
Tools & Techniques
.1 Quality management and control tools
.2 Quality audits
.3 Process analysis
83
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Perform Quality Assurance
Outputs
.1 Change requests
.2 Project management plan updates
.3 Project document updates
.4 Organisational process asset updates
84
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
85
Inputs Tools and Techniques Outputs
.1 Project management plan
.2 Quality metrics
.3 Quality checklists
.4 Work performance data
.5 Approved change requests
.6 Deliverables
.7 Project documents
.8 Organizational process
assets
.1 Seven basic quality tools
.2 Statistical sampling
.3 Inspection
.4 Approved change requests
review
.1 Quality control
measurements
.2 Validated changes
.3 Verified deliverables
.4 Work performance
information
.5 Change requests
.6 Project management plan
updates
.7 Project document updates
.8 Organizational process
assets updates
Control Quality
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Control Quality
Looking at specific results to determine if they conform
to quality standards
“Quality” does not mean “good”! It means “fulfils
requirements”.
86
Control Quality Inputs
.1 Project management plan
.2 Quality metrics
.3 Quality checklists
.4 Work performance data
.5 Approved change requests
.6 Deliverables
.7 Project documents
.8 Organizational process assets
87
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
Control Quality
Tools & Techniques
.1 Seven basic quality tools
.2 Statistical sampling
.3 Inspection
.4 Approved change requests review
88
Figure 8-1. Project Quality Management OverviewA Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. ©2013 Project Management Institute, Inc. All rights reserved
7 Basic Quality Tools
Seven charts that shows quality information graphically
for easier understanding and analysis:
1. Cause and Effect/Fishbone/Ishikawa diagram
2. Control Chart
3. Check sheet
4. Scatter Diagram
5. Pareto Chart
6. Histogram
7. Flowchart
89
Cause & Effect - Ishikawa/Fishbone
Time Machine Method Material
Major
Defect
Energy Measurement Personnel Environment
Potential Causes Effect
90
Control Chart
Upper
Control
Limit
Lower
Control
Limit
X
Upper
Specification
Limit
Lower
Specification
Limit The ‘Rule of Seven’
7 consecutive points on one side of the
mean must be investigated to determine the
cause, as it threatens the mean amount
91
Check Sheet
92
• A standardized list of activities, process, and steps
that need to be completed during quality management
activities.
Scatter Diagram
93
Pareto’s Law, a.k.a.
‘The 80/20 Rule’
80% of the problems come from 20% of the causes
Focus improvement efforts on the 20% for biggest
results
94
Pareto Diagram
Frequency by Cause
Cumulative Percentage
95
Histogram
96
Sample Process Flowchart
No
YesNo
Yes Yes
No
12. Order
Materials
11. Specs Signed
(Package and QA)
10. Approved Proof
back to Vendor
9. QA
Review/
Approval
4. Artwork
Approved
2. Compliance
Copy
3. Develop
Artwork
1. Project
Request
6. Artwork
out for Proofs
5. Change
control for specs
7. Vendor
Makes Proofs
8.
Package
Dev’t Review/
Approval
97
Statistical sampling
Sampling a part of the total population and not the entire
population
Use when testing the entire population costs too much
or when destructive testing is involved.
98
Perform Quality Control Outputs
.1 Quality control measurements
.2 Validated changes
.3 Verified deliverables
.4 Organisational process assets updates
.5 Change requests
.6 Project management plan updates
.7 Project document updates
99
Practice Questions
Pass the PMP® Exam, Page 182
100
Next Session
Starts with practice the PMP exam on today’s material
– Cost and Quality Management (please bring a
calculator)
Read chapters 9, 10 and 11 of the PMBOK® Guide
(and Appendix X3) or Pass the PMP® Exam, chapters
7, 8 and 9
Create your own PMP style multi-choice practice
question
101