modul pmf - project planning
DESCRIPTION
Project PlanningTRANSCRIPT
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Project Planning
MODULE
3 Copyright Prosys Solutions International All rights Reserved
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MODULE 3 Project Planning Prosys Solutions Intl
Project Management Plan Project Charter
A description of the PM approach or strategy
Work Breakdown Structure (WBS)
Cost estimates, Schedule, Responsibility
Assignments (each task if necessary)
Performance measurement baseline (scope,
schedule, cost)
Major milestone
Key staff
Risk Management Plan
Scope Management Plan
Quality Management Plan
Cost Management Plan
Schedule Management Plan
Staffing Management Plan
Communication Management Plan Risk Response Plan
Procurement Management Plan
Change Management Plan
Configuration Management
Plan
Requirements Management Plan
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MODULE 3 Project Planning Prosys Solutions Intl
Remember that project scope product scope Project scope
Work performed to deliver the product, service, or result with the specified features and/or functions
May include product scope Measured against Project Management Plan
Product scope Features and functions characterizing the product, service,
or result Measured against product requirements
Project Scope & Product Scope
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MODULE 3 Project Planning Prosys Solutions Intl
Scope Management Plan includes processes for: Preparing a detailed project scope
statement Enabling the creation of WBS from
the detailed project scope statement
Establishing how the WBS will be maintained and approved
Specifying how formal acceptance of the completed project deliverables will be obtained
Controlling how requests for changes to detailed project scope statement will be processed
Planning Scope Management Requirements Management Plan
Component of the project management plan that describes how requirements will be analyzed, documented, and managed
How requirements activities will be planned, tracked, reported
Configuration management activities
Requirements prioritisation process Product metrics that will be used
and the rationale for using them Traceability structure to reflect
which requirement attributes will be captured on the traceability matrix
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MODULE 3 Project Planning Prosys Solutions Intl
Scope Definition
Description What should be done? Key Deliverable of the project.
Function: as a Documented basis in making project decisions
Scope Statement
Product scope description
Acceptance criteria
Project deliverables
Project exclusions
Project constraints
Project assumptions
Results in Scope Statement, which contains many details concerning project and product deliverables, as one of many basis used to keep the project on track Dont forget to Identify the service coverage for: Preparation & Resource Mobilization Technical Solution & Infrastructure Management of Change Communication & Socialization Start-up System and Commissioning Project Hand-over
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MODULE 3 Project Planning Prosys Solutions Intl
Work Breakdown Structure (WBS)
Creating WBS involves subdividing project deliverables and project work into smaller,
more manageable components. WBS provides a structured vision of what has to be delivered
deliverable-oriented hierarchical decomposition of the total scope of work to be
carried out by project team to accomplish project objectives and create required
deliverables
Work not included in WBS is not within project scope
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Scope Baseline
The approved version of scope statement, WBS, and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison original plan + approved changes
Project Scope Statement WBS WBS dictionary (document
providing detailed deliverable, activity, & scheduling information about each WBS component)
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MODULE 3 Project Planning Prosys Solutions Intl
WBS Level 1
WBS Level 2 WBS Level 2 WBS Level 2
WBS Level 3 WBS Level 3
Work Breakdown Structure (WBS)
Work Package
Work Package
Work Package
Division & subdivision of project scope & project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level
Decomposition
Work Package is the lowest level in the WBS, and is the point at which the cost and schedule for the work can be reliably estimated.
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MODULE 3 Project Planning Prosys Solutions Intl
Planning Project Schedule
Define tasks and activities to be
carried out by each phase
Define the milestones &
deliverables; sequencing the
activities and tasks
Estimate duration of activities,
tasks and phases
Refine the plan
Create schedule
Refine/Tune Schedule
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MODULE 3 Project Planning Prosys Solutions Intl
Defining activities: identifying and documenting specific actions to be performed to produce project deliverables Scope definition vs. Activity definition Activity definition: decomposition
up to activity level Scope definition: decomposition up
to deliverables level
Rolling Wave Planning: iterative planning technique in which the work to be accomplished in the near term is planned in detail, while future work is planned at a higher level of the WBS As more is known about the upcoming events, work packages can be decomposed into more detailed activities
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MODULE 3 Project Planning Prosys Solutions Intl
PDM ADM Mostly represented by Activity-on-Node (AoN)
Represented by Activity-on-Arrow (AoA)
4 relationships: Finish to start Start to finish Start to start Finish to finish
1 relationship: Finish to start
Does not use dummy May use dummy activity (does not require work or time) to show task dependencies
Activity sequencing
Activity sequencing: Identifying and documenting relationships among the project activities May use diagrams, such as PDM and ADM
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Precedence Diagramming Method (PDM) Network Diagram
Activity Name 1
Duration (D)
ES EF
LS LF
Activity Name 2
Duration (D)
ES EF
LS LF LS : Latest Start LF : Latest Finish
ES : Earliest Start EF : Earliest Finish
121 Initial Design 10 days
A120 Draft Drawing 20 days
A130 Run Simulation 15 days
A140 Final Design 10 days
Example
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MODULE 3 Project Planning Prosys Solutions Intl
Begin
A B
C D E
H F G End
I
K L
J
Precedence Diagramming Method (PDM)
12 activities, 23 logic diagrams
Sequence Activities
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MODULE 3 Project Planning Prosys Solutions Intl
Arrow Diagramming Method (ADM) Network Diagram
A 10
Example
Node 1
Node 2
Activity
Duration
Node 1
Node 2
Dummy
No duration
A 20
Initial design
10 days
A 30
A 40
A 50
Draft drawing
20 days
15 days
Simulation
A 60
Final design
10 days
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MODULE 3 Project Planning Prosys Solutions Intl
Precedence Relationship Types
Activity A FS
Activity B
Activity A SS
Activity B
Activity A FF
Activity B
Activity A
SF Activity B
Finish to Start
Start to Start
Finish to Finish
Start to Finish
Network Diagram
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Leads and Lags
Leads A
B FS 5 days
Lags A
B FS + 5 days
Network Diagram
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Precedence Calculation Sequence Activities
Forward Calculation
Backward Calculation
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Critical Path Identification and Float Sequence Activities
Activity No.
Duration (Day)
Early Late Total FLOAT
(TF) Start (ES) Finish (EF) Start (LS) Finish (LF)
A10 2 1 2 1 2 0
A20 3 3 5 5 7 2
A30 1 6 6 8 8 2
A40 4 3 6 3 6 0
A50 2 7 8 7 8 0
A60 5 9 13 9 13 0
Total FLOAT (TF) = (LS) - (ES) = (LF) - (EF)
Total FLOAT = 0 (Critical Path)
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Dependency Determination Sequence Activities
Mandatory Dependency (Hard Logic)
Discretionary Dependency (Soft Logic)
External Dependency
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Activity duration estimation: estimating the number of work periods needed to complete individual schedule activities with estimated resources Expert Judgment Analogous Estimating Parametric Estimating Reserve Analysis Group Decision-Making Techniques Three-Point Estimating
Duration Estimation Techniques
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Develop Schedule
Schedule baseline The approved time phased plan (for a project, a work breakdown structure component, a work package, or a schedule activity)
Define task list from each work package
Estimate the duration for each defined task
Do Network Planning to show interdependency among tasks
Create project schedule baseline and milestones
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Tuning Schedule
Schedule Compression
Fast Tracking Compressing Project Schedule (phases normally done
in sequence performed in parallel , at least partially)
Higher probability of rework Usually increases risk
Crashing Usually increases cost Taking action to decrease project duration
Increase productivity Move resources from non-critical tasks or adding resources
Work overtime Reduce the scope of work (if possible)
Subcontracting part of the work
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Workgroup Session: Project scheduling
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MODULE 3 Project Planning Prosys Solutions Intl
Cost Estimation Developing an approximation of the cost
of resources needed to complete project activities
Identifying and considering various costing alternatives
Also considering cost tradeoffs & risks, such as: o Make or buy o Buy or lease o Resource sharing to achieve optimal
costs for project Cost Risk: who has the cost risk in a type
of contract (buyer or seller) described in risk management
Cost Estimating is different with Pricing (when project is performed under contract)
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MODULE 3 Project Planning Prosys Solutions Intl
Project Cost Direct Cost Direct Material Direct Labor Cost
Indirect Cost Supervisory Cost Construction Equipment/Tools
Overhead Cost Fringe benefits Office and its facilities
Variable Cost Cost that changes with the amount of work Cost of material, supplies, wages
Fixed Cost Cost that does not change as production changes
Sunk Cost Cost that has been invested into or expended upon the project
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Cost Estimating Techniques
Analogous estimating Using the actual cost of previous, similar
projects as the cost estimation basis.
Parametric estimating Using a statistical relationship between
historical data and other variables (e.g. square footage in construction, lines of code in software
development, required labor hours)
Bottom-up estimating Estimating the cost of individual work packages then summarized or rolled up to higher levels
Three-point estimating Considering estimation uncertainty & risk,
using three estimates to define approximate activity cost range
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MODULE 3 Project Planning Prosys Solutions Intl
Cost Budgeting Allocating overall cost estimates to individual activities or work packages to establish cost baseline for measuring project performance
Some questions to ask: Is it expensive ? Is it a high volume item ? Is it complex or difficult to construct? Is there duplication ? Is there spare capacity ? Does it require special skills ? High maintenance & operation costs? Does it use obsolete materials ? Is the design rushed ?
Project budget includes all funds authorized to execute the project Cost baseline == approved time-phased project budget, excluding management reserves
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Expenditures
Cost baseline
Funding requirements
Time
Cum
ulat
ive
Cost
s
The difference between the maximum funding and the end of the cost baseline is Management Reserve
Cash Flow, Cost Baseline and Funding Display
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MODULE 3 Project Planning Prosys Solutions Intl
Workgroup Session: Develop Project Schedule & Cost Estimation
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MODULE 3 Project Planning Prosys Solutions Intl
Project Quality Management
Quality Management Plan
Quality Assurance
Quality Control
Quality Management Concerns
Customer satisfaction Prevention over Inspection Continuous improvement Management responsibility Cost of Quality (CoQ)
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MODULE 3 Project Planning Prosys Solutions Intl
Quality Grade The degree to which a set of inherent
characteristic fulfill requirements (ISO 9000)
Delivered performance/result
LOW QUALITY is a problem
Category assigned to deliverables having the same functional use but different technical characteristics Design intent LOW GRADE is not necessarily problem
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MODULE 3 Project Planning Prosys Solutions Intl
Quality Management Plan
Describing how the organisations quality policies will be implemented, and how project management team plans to meet the quality requirements set for the project
Project quality system: organizational structure, responsibilities, procedures, process, and resources needed to implement quality management
Quality management plan must address QC, QA, and quality improvement for the project
May contain: Deliverables & milestones Quality requirements Standards for monitoring &
controlling Process review Major check points Inspections & acceptance criteria
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MODULE 3 Project Planning Prosys Solutions Intl
CoQ refers to total cost of conformance work and nonconformance work that should be done as a compensatory effort May be incurred throughout the deliverables life-cycle
Post-project CoQ may be incurred because of Product return Warranty claim Product recall Errata
Cost of conformance Cost of nonconformance
Money spent during project to avoid failures
Money spent during & after project because of failures
Prevention costs (build a quality product) training, document processes, equipment, time to do it right
Appraisal costs (assess the quality) testing, destructive testing loss, inspections, quality audits
Internal failure costs (found by project) rework, scrap, repair
External failure costs (failures found by customer) liabilities, warranty work, business loss, legal issues
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MODULE 3 Project Planning Prosys Solutions Intl
Project Human Resource Management the processes that organize and manage the project team.
Project Management Team
is a subset of the project team and is
responsible for project management activities
such as planning, controlling, and closing.
Project Team:
is comprised of the people who have
assigned roles and responsibilities for
completing the project.
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Form of Project Organization
Project Organization Charts:
Functional Organization
Projectized Organization
Weak Matrix Organization
Balanced Matrix Organization
Strong Matrix Organization
Composite Matrix Organization
Organization chart & position description forms:
Hierarchical type charts Graphical, top-down format
Matrix-based charts e.g.: Responsibility Assignment
Matrix
Text-oriented formats e.g.: Position description document,
role-responsibility-authority form
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Functional Organization
Project Coordination
Staff Staff engaged in project activities on part time basis under coordination of each functional manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
Chief Executive
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MODULE 3 Project Planning Prosys Solutions Intl
Projectized Organization
Project Coordination
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Chief Executive
Staff Staff engaged in project activities On full time basis under full direction of project mgr.
PROJECT MANAGER
PROJECT MANAGER
PROJECT MANAGER
PROJECT MANAGER
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MODULE 3 Project Planning Prosys Solutions Intl
Weak Matrix Organization
Project Coordination
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Chief Executive
Staff Staff engaged in project activities On part time under stronger influence by Functional manager
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
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MODULE 3 Project Planning Prosys Solutions Intl
Balanced Matrix Organization
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project Manager
Chief Executive
Project Coordination Staff Staff engaged in project activities sharing time and effort on equal basis
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
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Strong Matrix Organization
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project Manager
Project Manager
Project Manager
Project Coordination
Chief Executive
Manager of Project Managers
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
Staff
Staff engaged in project activities With 60-90% time effort under coordination Of designated project manager
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Staff
Staff engaged in project activities with help of additional staff assigned & control by functional mgr.
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project Manager
Project Manager
Project Manager
Project B Coordination
Project A Coordination
Composite Matrix Organization
Chief Executive
Manager Of Project Managers
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
FUNCTIONAL MANAGER
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MODULE 3 Project Planning Prosys Solutions Intl
Responsibility Assignment Matrix
Responsible Accountable Inform
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Project Characteristic Functional Weak Matrix Composite Matrix PROJECT
Uncertainty LOW MODERATE HIGH HIGH
Technology STANDARD STANDARD COMPLEX NEW
Complexity LOW LOW MEDIUM HIGH
Duration SHORT MEDIUM MEDIUM LONG
Size SMALL SMALL MEDIUM LARGE
Importance LOW MODERATE MODERATE HIGH
Customer DIVERSE DIVERSE 3 OR 4 ONE
Interdependency (Within) LOW MEDIUM MEDIUM HIGH
Interdependency (Between) HIGH MEDIUM MEDIUM LOW
Time Criticality LOW MODERATE MODERATE HIGH
Key Factors of Determining Project Organization Form
Adapted from: Robert Youker.Organizational Alternatives For Project Management, Project Management Quarterly, Drexel Hill, Pa.8(1), March 1977, p.21.
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Workgroup Session: Develop Responsibility Assignment Matrix (RAM)
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MODULE 3 Project Planning Prosys Solutions Intl
Human Resource
Plan
Provides guidance on how project human resources should be defined, staffed, managed, controlled, and eventually released
Roles and responsibilities Role Authority Responsibility competency
Project organization charts Staffing management plan
Staff acquisition Resource calendars Staff release plan Training needs Recognition and rewards Compliance Safety
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Project Organization Sample for Complex Project
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Project Communication Management
Define documentation standards Setup project file Stakeholder analysis
Choose project management tools
Define reporting & meeting procedures
Define monitoring and reporting metrics
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Communication Management Plan
Stakeholder communication requirements Information to be communicated Reason for information distribution Time frame & frequency for the distribution of required information & receipt of
acknowledgment or response Person responsible for communicating the information Person responsible for authorising confidential information release Information receiver Methods/technologies used to convey the information Allocated resources for communication activities Escalation process identifying time frames & management chain for escalation of issues
that cannot be resolved at lower staff level Method for updating & refining communications management plan as the project
progresses & develops Glossary of common terminology Flow charts of project information flow, workflows with possible sequence of
authorisation, report list, meeting plans, etc Communication constraints (usually derived from specific legislation or regulation,
technology, organisational policies, etc)
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MODULE 3 Project Planning Prosys Solutions Intl
The Plan..
.. documents how you will manage and control communications Since communications are complex, the communications
management plan should be in writing in order to be understood by all project team members and stakeholders.
As with other management plans, the communications management plan becomes part of the project management plan
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Stakeholder management planning will identify how the project will affect stakeholders, allowing: Development of various ways to
effectively engage stakeholders Manage stakeholders
expectations Ultimately achieve project
objectives
Stakeholder management Create & maintain relationships
between and among project team & stakeholders
Aims to satisfy the needs & requirements within project boundaries
Stakeholder Management Planning
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MODULE 3 Project Planning Prosys Solutions Intl
Desired & current engagement levels of key stakeholders
Scope & impact of change to stakeholders
Identified interrelationships & potential overlap between stakeholders
Stakeholder communication requirements for current project phase
Information to be distributed to stakeholders, including language, format, content, and level of detail
Reason for the distribution of that information & the expected impact to stakeholder engagement
Time frame & frequency for the distribution of required information to stakeholders
Method for updating & refining stakeholder management plan
Stakeholder Management
Plan
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MODULE 3 Project Planning Prosys Solutions Intl
Workgroup Session: RAM, Communication planning, Stakeholder
management
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MODULE 3 Project Planning Prosys Solutions Intl
An uncertain event or condition that, if it
occurs, has a positive or negative effect on a
projects objectives
Project Risk
Impact to: Scope
Quality
Cost
Schedule
Uncertainty:
Known (Open)
Known Unknown (Blind or Hidden)
Unknown Unknown
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Risk Management Plan
Describes how risk management will be structured and performed on the
project.
It becomes the subset of Project Management Plan.
Risk Management Plan
Methodology
Roles & Responsibilities
Budgeting
Timing
Risk Categories
Definitions of risk probability & impact
Probability & impact matrix
Revised stakeholders tolerances
Reporting formats
Tracking
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Document in which the results of risk analysis & risk response planning are
recorded
Risk Register
List of Identified Risks Risk event Cause/root cause Effect
Assigned risk owners List of Potential Responses Control actions Risk symptoms & warning signs Residual & secondary risks Risk watch list Contingency reserves
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Assess the impact and likelihood of identified risk (subjective)
Risk Analysis: Qualitative
Activities: Determine which risk events warrant a
response Determine the probability and impact Determine which risk to analyze more fully
in risk quantification or to skip risk quantification in favor to going directly to risk response planning
Document non critical or non top risk Determine the overall risk ranking for the
project
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Risk Event Status = Risk Probability x Risk Impact
Risk Event Status precisely what might happen to the detriment of the project
Risk Probability how likely the event is to occur
Risk Impact the severity of the consequences
Risk Analysis: Qualitative
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Numeric analysis of probability of each risk and impact on the project
Risk Analysis: Quantitative
Include: Determine which risk events warrant a
response Determine overall project risks Determine quantified probability Determine cost and schedule reserves Identify risks requiring the most attention Create realistic and achievable cost,
schedule or scope targets
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Risk Rankings Evaluating Impact of a Risk on Major Project Objectives
Impact 1 2 4 8 16
Time
Insignificant schedule slippage
Delivery plan milestone
delay within
quarter
Delivery plan milestone delay of one quarter
Delivery plan milestone delay of
more than one quarter
Delivery plan milestone
delay\outside fiscal year
Cost Insignificant cost increase 20% cost increase
Scope
Scope decrease is
barely noticeable
Changes in project limits or features
with
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MODULE 3 Project Planning Prosys Solutions Intl
Risk Rankings
Time, Cost, and Scope Objectives
Large Aversion to High & Very High Impacts
Probability Impact
5 5 10 20 40 80
4 4 8 16 32 64
3 3 6 12 24 48
2 2 4 8 16 32
1 1 2 4 8 16
High
15 ++
Moderate
7 14 Low 1 6 Risk Score
Translate Score to Risk Rank
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Risk Probability Impact Matrix
Prob. Threats Opportunities
0,90 0,05 0,09 0,18 0,36 0,72 0,72 0,36 0,18 0,09 0,05
0,70 0,04 0,07 0,14 0,28 0,56 0,56 0,28 0,14 0,07 0,04
0,50 0,03 0,05 0,10 0,20 0,40 0,40 0,20 0,10 0,05 0,03
0,30 0,02 0,03 0,06 0,12 0,24 0,24 0,12 0,06 0,03 0,02
0,10 0,01 0,01 0,02 0,04 0,08 0,08 0,04 0,02 0,01 0,01
0,05 0,10 0,20 0,40 0,80 0,80 0,40 0,20 0,10 0,05
Each risk is rated on its probability of occurring and impact on an objective if it does occur. The organizations thresholds for low, moderate or high risks are shown in the matrix and determine whether the risk is scored as high, moderate or low for that objective
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Avoid Eliminate threat or
protect the project from its impact
Transfer Shift threat impact &
response ownership to third party
Mitigate Reduce risk probability
or occurrence or impact
Accept Acknowledge & not
take action unless the risk occurs
Negative
Strategies for negative risks or threats
Passive acceptance Document the strategy, leaving the project team to deal with the risks as they occur, periodically review the threat to ensure that it doesnt significantly change
Active acceptance Usually involves establishing contingency reserve to handle the risks
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Strategies for positive risks or opportunities
Exploit Eliminate uncertainty by
ensuring the opportunity happens
Enhance Increase probability
and/or the positive impacts
Share Allocate some/all
ownership to third party to benefit the project
Accept Willing to take advantage
of the opportunity but not actively pursuing it
Positive
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Risk Response Strategies
Avoid Exploit
Cause-related
Transfer Share
Outsource-related
Mitigate Enhance
Probability & impact-related
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Workgroup Session: Risk Analysis
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MODULE 3 Project Planning Prosys Solutions Intl
Procurement Management
Update Project Plan Identify potential vendors/contractors
Assess and select shortlist vendors
Identify seller selection planning
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MODULE 3 Project Planning Prosys Solutions Intl
Bid and Quotation Generally used when the source selection decision will be price driven.
Proposal
Generally used when non financial consideration such as technical skills or approach are paramount
Common names of procurement documents
IFB : Invitation for Bid RFP: Request for Proposal RFQ: Request for Quotation IFN : Invitation for Negotiation CIR : Contractor Initial Response
Procurement Documents
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Types of Contract
Cost Reimbursable Cost Plus Fee (CPF) or Cost Plus Percentage of Cost (CPPC) or Cost Plus Award Fee (CPAF) Cost Plus Fixed Fee (CPFF) Cost Plus Incentive Fee (CPIF)
Cost Reimbursable
Cost Plus Fee (CPF) or Cost Plus
Percentage of Cost (CPPC) or Cost Plus
Award Fee (CPAF)
Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF)
Fixed Price or Lump-Sum
Fixed Firm Price (FFP)
Fixed Price Incentive Fee (FPIF)
Fixed Price with Economic Price
Adjustments (FP-EPA)
Time and Material (T&M)
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Contract types to be used
Risk management issues
Constraints & assumptions
Make-or-buy decisions, procurement matrix
Evaluation criteria
Direction for managing multiple sellers
Requirement identification for performance bonds or insurance contracts
Direction to be provided to the sellers
Form and format for procurement
Procurement documentations
Guidance to coordinate procurement with scheduling, performance reporting, and project activities
Prequalified sellers identification
Procurement metrics
Project Procurement
Plan
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