pmp preparatory material

1Project Management Framework Version 1.0 Project Management Framework

“Building Professionalism in Project Management”


Course Objective

To familiarize participants with Project Management Body of Knowledge Guide (Fourth Edition) by explaining the concepts, processes, and techniques of Project Management.


What the exam will test? Your knowledge about PMI’s processes and your ability to

apply these processes in a variety of situation.

Your understanding of the many terms that are used to describe the process.

Your understanding of professional responsibility as it applies to project management.


Learning Strategies

20 / 80 approach

Learn PMPism

Emphasis on learning exercise

Gaining understanding through review exercise and class discussions

Remove friction in reading PMBOK® Guide

PMBOK is a registered mark of the Project Management Institute, Inc


PROJECT MANAGEMENT FRAMEWORKPROJECT MANAGEMENT FRAMEWORK

The PMI Registered Education Provider logo and PMP are registered marks of the Project Management Institute, Inc


Course Structure

Project Management Framework

Introduction

PMBOK® Guide

Role of a Project Manager

Define a Project

Define Project Management

Correlation among Project, Program, and Portfolio Management

Enterprise Environmental Factors

Project and Operations Management

Project Management Office (PMO)

Project Life Cycle and OrganizationProject Life Cycle - Introduction

Projects Life Cycle - Characteristics

Product vs. Project Life Cycle Relationship


Course Structure

Phase-to-Phase Relationship

Relationship between Stakeholders and the Project

Types of Stakeholders

Organizational Influences on Project Management

Projects Phases

Project Governance

Project Management Processes for a ProjectProject Process - Introduction

Common Project Management Process Interaction

Project Management Process Group - Flow


Project Management Framework - Project Management Framework - IntroductionIntroduction


Project Management Body of Knowledge Project Management Body of Knowledge (PMBOK)(PMBOK)®® - Introduction - Introduction

Sum of knowledge within the profession of Project Management.

Practitioners & Academicians apply and advance it.

Includes proven traditional practices, as well as innovative and advanced practices.

Is constantly evolving.



PMBOKPMBOK®® Guide Guide PMBOK®® Guide is a recognized standard for the project management

profession.

Project Management Institute (PMI) views these standards as a foundation reference.

PMBOK®® Guide identifies (provides a general overview) the subset of Body of Knowledge that is generally recognized as good practices and promotes a common lexicon.



Code of Ethics and Professional ConductCode of Ethics and Professional Conduct PMI Code of Ethics and Professional Conduct:

Guides practitioners of the Project Management Profession Describes expectations practitioners have of themselves and others

Code of Ethics and Professional Conduct is specific about:

Obligation of Responsibility – to comply with laws, regulations and organizational and professional policies

Respect, fairness, and honesty – to deal with the stakeholders

Acceptance of the code is a requirement for the PMP®

certification by PMI.


ProjectProject

A project is a temporary endeavor undertaken to create a unique product, service, or result.

Every project has a definite beginning and a definite end.

A project creates unique deliverables in the form of products, services, or results.

(Repetitive elements may be present in some project deliverables, which does

not change the fundamental uniqueness of the project work.)

Uniqueness is an important characteristic of

project’s deliverables.

A project ends as a result of one of the following: Project objectives have been achieved. It becomes clear that the project objectives

cannot be met. The need for the project no more exists.

Continue…


Project Continue…Project Continue…

A single person A single Organization Multiple Organizational Units

A project can involve:

A project can create:

A product that can be either a component of another item or an end item in itself A capability to perform a service A result such as a outcome or document


1. Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.

2. Project Management is accomplished through the application and integration of project management processes in 5 process groups - Initiating, Planning, Executing, Monitoring and Controlling, and Closing.

3. The project manager is the person responsible for accomplishing the project objectives.

4. Project managers often talk of “Project Constraints” which includes: project scope, quality, time, cost, resources, and risk in managing competing project requirements.

Project ManagementProject Management

Continue…


Project Management Continues…Project Management Continues…

Progressive Elaboration means developing and continuing by increments.

Project objectives, scope and deliverables are progressively elaborated.

Progressive Elaboration should not be confused with scope creep.

Progressive ElaborationProgressive Elaboration


Project, Program, and Portfolio Management

Portfolio Management

Program Management

Project Management

Project management exists in a broader context that includes:

Project prioritization is

based on:

Risk

Funding

Organizational Strategic

Plan

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK®Guide) –Fourth Edition, Project Management Institute, Inc., 2008, Figure 1-1. Page 8.


Program ManagementProgram Management

Program:

A project may or may not be a part of a program but a program will always have projects.

A group of related projects Individual project management is not available Includes elements of related work outside the scope

Program Management focuses on:

Project Interdependencies Optimal approach for managing them

Projects within programs are related through common outcome or collective capability


Portfolio ManagementPortfolio Management

Portfolio:

Collection of projects or programs Facilitate effective management to meet business objectives Not interdependent or directly related to projects or programs

Portfolio Management being a centralized management includes :

Identifying Prioritizing Authorizing Managing and Controlling all programs and projects

Project, Program, and Portfolio Management on certain parameters

Senior managers or senior management teams typically take on the responsibility of portfolio management for an organization.


Project and Strategic PlanningProject and Strategic Planning

Projects are:

Strategic Considerations:

Market Demand Business Need Customer Request Technological Advance Legal Requirement

An organization’s strategic plan becomes the primary factor guiding investments in projects.

Means of achieving an organization’s strategic plan Authorized to follow strategic considerations


Project Management Office (PMO)Project Management Office (PMO)

PMO is an organizational unit to centralize and coordinate the management of projects under its domain.

PMO: Acts as an integral stakeholder A key decision maker Involved in selection, management, and

deployment of resources

PMO supports Project Managers in:

Identifying and developing project management standards Coaching, mentoring, and training Managing shared resources Developing, managing, and monitoring project policies and procedures Coordinating across projects


PMO and Project Manager PMO and Project Manager

PMOs and Project Managers follow different objectives but the final aim is to achieve the strategic needs of the organization.

Difference between the role of PMO and Project Manager:

PMO Project Manager

Focuses on achieving potential business objectives.

Focuses on achieving specified project objectives.

Optimizes the use of shared resources across all projects.

Controls the assigned project resources.

Manages methodologies, standards, risk/opportunity, and interdependencies among projects at enterprise level.

Manages project constraints such as scope, schedule, cost, etc. of an individual project.


Operations are ongoing and repetitive while projects are temporary and unique.

The purpose of a project is to attain its objectives (and then terminate).

The objective of an ongoing operation is to sustain the business.

Project and Operations ManagementProject and Operations Management

Project intersect with operations during project life

cycle at various points: Each closeout phase Developing a new product Upgrading a product Improvements in operations Divestment of the operations at the end of the product life cycle


Characteristics a Project Manager :

Role of a Project ManagerRole of a Project Manager

Knowledge – What the project manager knows Performance – How the project manager applies the knowledge Personal – How the project manager behaves while performing the project

A Project Manager is the person assigned by an organization to achieve objectives of the project.


Project Life Cycle and OrganizationProject Life Cycle and Organization


Project Life Cycle - IntroductionProject Life Cycle - Introduction

A project life cycle is a collection of generally sequential and sometime overlapping project phases.

Project managers or the organization can divide projects into phases to provide better management control with appropriate links to the ongoing operations of the performing organization and these phases are known as the Project Life Cycle.

Many organizations identify a specific set of life cycles for use on all their projects.


Project Life Cycle - Characteristics Project Life Cycle - Characteristics

1. Phases are generally sequential.

Most Project Life Cycles share a number of common characteristics:

2. Cost and staffing levels are low at the start, peak during the intermediate phases, and drop rapidly as the project draws to a conclusion.

Continue…Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK®Guide) –Fourth Edition, Project Management Institute, Inc., 2008, Figure 2-1. Page 16.


Project Life Cycle - Characteristics Project Life Cycle - Characteristics

3. The ability of stakeholders to influence the project outcome and cost is highest at the start and gets progressively lower as the project continues.

4. Risk is greatest at the start of the project and gets progressively lower as the project continues.



Product vs. Project Life Cycle Relationships (As per (As per PMBOKPMBOK®® Guide Guide))



Project PhasesProject Phases are:

Divisions within a project for extra control to manage the completion of a deliverable effectively Typically sequential but can overlap in some projects Elements of the project life cycle Segmented into logical subsets for easy management

Characteristics of Phases:

The close of a phase ends with some form of transfer, usually when phases are sequential

Primary objective of the phase requires an extra degree of control to be successful

No single way to define the ideal structure for a project

Continue…


Phase starts once the earlier phase is complete

Phase starts prior to the completion of the previous phase

Planning of the next phase depends on the planning of the current phase

Project Phases

Single Phase Multiple Phases

Sequential Overlapping Iterative

Projects having only one phase


Project Governance

Project Governance:

A comprehensive, consistent method of controlling the project Should be included in the project management plan Must fit within the larger context of the program

Project Governance is facilitated by:

Phase structure which provides a formal basis for control Review of the deliverables to determine completeness and acceptance A natural point to reassess the effort underway to change or terminate the project Formal phase completion which does not include authorizing the subsequent phase


Project StakeholdersProject Stakeholders

1. Project stakeholders are individuals and organizations that are : actively involved in the project or whose interests may be affected as a result of project execution or

completion or may exert influence over the project’s objectives and outcomes.

2. The project management team must identify the stakeholders and manage their

influence in relation to the requirements to ensure a successful project.

Continue…


The Relationship Between Stakeholders andThe Relationship Between Stakeholders and the Project the Project



Organizational InfluencesOrganizational Influences

Organizational Influences on Project Management:

Culture, Style, and Structure Degree of project management maturity Involvement of external entitles as a part of a joint venture

Continue…


Organizational Culture and StyleOrganizational Culture and Style

Organizational cultures and styles may have a strong influence on a project’s ability to meet its objectives.

The cultures are reflected in numerous factors including:

1. Shared values, norms, beliefs, and expectations

2. Policies and procedures

3. View of authority relationships

4. Work ethics and work hours

Continue…


Organizational StructureOrganizational Structure The structure of the performing organization often constraints the availability of resources in a spectrum from functional to projectized, with a variety of matrix structures in between.

Continue…


For conducting organization’s work, whichincludes but not limited to:

Organizational standard processes Standardized guidelines, work instructions, etc. Guidelines and criteria for tailoring set of standard processes Organization communication requirement Project closure requirements Financial, Change, and risk control procedures

Organizational Process Assets

Processes & Procedures Corporate Knowledge Base

For storing and retrieving organizational information, which includes but not limited to: Process measurement databases Project files Historical information and lessons learned knowledge base Issue and defect management databases Configuration management knowledge databases Financial databases


Enterprise Environment Factors:


Project Management ProcessesProject Management ProcessesFor a Project For a Project


Project Process - IntroductionProject Process - Introduction

A Process is a set of interrelated actions and activities that are performed to achieve a pre-specified set of products, results, or services.

Project processes are performed by Project Team.

Ensure effective flow throughout the project

Includes tools and techniques in applying skills and capabilities

Specify and create the project products

Defined by the project life cycle

Vary by application area


Project Management Process GroupsProject Management Process Groups

These process groups are:

Project management processes are grouped into five categories known as project management process groups or process groups.

1. Initiating Process Group:

– To define a new project or a new phase of an existing project

– Obtains authorization

2. Planning Process Group:

– To establish the scope of the project

– Refine the objectives

– Define the course of action

Continue…


Project Management Process GroupsProject Management Process Groups

3. Executing Process Group:

– To complete the defined work in the project

– Satisfy the project specifications in the project management plan

4. Monitoring and Controlling Process Group:

– To track, review, and regulate project’s progress and performance

– Identifies the areas where changes are required

– Initiates the required changes

5. Closing Process Group:

– To finalize all activities to formally close the project or phase


Common Project Management Process Interactions

Following figure shows the integrative nature of project management that requires

the Monitoring and Controlling Process Group to interact with the other process groups.



Common Project Management Process Interactions



DefinitionsDefinitions

Input: Any item, whether internal or external to the project that is required by a process before that process proceeds. May be an output from a predecessor process.

Output: A product, result, or service generated by a process. May be an input to a successor process.

Tool: Something tangible, such as a template or software program, used in performing an activity to produce a product or result.

Technique: A defined systematic procedure employed by a humanresource to perform an activity to produce a product or result or deliver a service, and that may employ one or more tools.

(As per (As per PMBOKPMBOK®® Guide Guide))


47Project Management Framework Version 1.0 Project Management FrameworkThe PMI Registered Education Provider logo and PMP are registered marks of the Project Management Institute, Inc


Before we begin…


Everyone respects your time, do you?

Come on time, Promptly return from the breaks


Age and experience maketh a good manager

sometimes...not always

51Project Management Framework Version 1.0 Project Management Frameworkwhen switched off or silent

Your phone looks better…


Involvement is the key

not mere enrolment…


Be here…

…and only here


Listen to others…

…before you start correcting them

55Project Management Framework Version 1.0 Project Management FrameworkThank you!!!


PROJECT INTEGRATION MANAGEMENTPROJECT INTEGRATION MANAGEMENT



Course StructureProject Integration Management

Introduction

Integration Management – Introduction

Develop Project Charter : Inputs, Tools, and Outputs

Develop Project Charter

Monitor and Control Project Work : Inputs, Tools, and Outputs

Monitor and Control Project Work

Direct and Manage Project Execution

Perform Integrated Change Control

Perform Integrated Change Control : Inputs, Tools, and Outputs

Develop and Manage Project Execution : Inputs, Tools, and Outputs

Develop Project Management Plan

Develop Project Management Plan : Inputs, Tools, and Outputs

Close Project

Close Project : Inputs, Tools, and Outputs


IntroductionIntroduction


Project Integration Management – IntroductionProject Integration Management – Introduction

What is Integration?

It is the processes required to ensure that the various elements (people, It is the processes required to ensure that the various elements (people, product, etc.) of the project are appropriately coordinated with each product, etc.) of the project are appropriately coordinated with each

other. other.


Project Integration Management – IntroductionProject Integration Management – Introduction

It is a unique knowledge area and it is the core of project management.

It includes processes and activities needed to identify, define, combine, unify, and coordinate between the various processes and project management activities within the project management process group.

It involves putting the pieces of the project together into a cohesive whole, while managing trade offs among the different project objectives and alternatives to meet or exceed stakeholders needs and expectations.

It involves selection about: Resource Allocation Balancing among competing objectives

and alternatives Managing interdependencies among

project management knowledge areas


Project Integration Management – Processes Management – Processes

Develop Project Charter (Initiating) – process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholder's needs and expectations.

Develop Project Management Plan (Planning) – process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans.

Direct and Manage Project Execution (Executing) – process of performing the work defined in the project management plan to achieve the project’s objectives.

Monitor and Control Project Work (Monitoring & Controlling) – process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.

(As per (As per PMBOK® GuidePMBOK® Guide))

Continue…PMBOK is a registered mark of the Project Management Institute, Inc


Project Integration Management – ProcessesProject Integration Management – Processes

Perform Integrated Change Control (Monitoring & Controlling) – process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and the project management plan.

Close Project or Phase (Closing) – process of finalizing all activities across all of the project management process groups to formally complete the project or phase.

(As per (As per PMBOK® GuidePMBOK® Guide))

These processes:

Interact with each other and with the processes in the other Knowledge Areas Occur at least once in every project or project phases

Continue…PMBOK is a registered mark of the Project Management Institute, Inc


Project ManagementProject ManagementPlanPlan

ChangesChanges

Project Integration Management – ProcessesProject Integration Management – Processes

Planning process group provides the Executing process group with a documented project management plan during the early stage of the project.

Later, it facilitates updates to the project management plan if changes occur during the progress of the project.

PlanningPlanning ExecutingExecuting


Develop Project CharterDevelop Project Charter

Project charter is the process of developing a document that:Formally authorizes a project or a phase. Jot downs initial requirements.Establishes a partnership between the

performing organization and the requesting organization (Internal Project) and performing organization and Customer (External Project).

Who can authorize Projects?

Projects are authorized by someone external to the project:

A sponsorPMOPortfolio steering committee

Continue…


Process Process - Develop Project Charter- Develop Project Charter

The project initiator or sponsor should be at a level that is appropriate to funding the project.

Chartering a project links the project to the strategy and ongoing work of the organization. (Internal)

The Project Manager is identified and assigned to the project as early as possible, but always prior to the start of planning, and preferably while Project Charter is being developed.

Project charter provides the project manager with the authority to apply resources to project activities.


Develop Project Charter – Inputs, Tools, and OutputsDevelop Project Charter – Inputs, Tools, and Outputs

Project statement of work- Business need- Product scope description- Strategic plan

Business case Contracts Enterprise environmental factors Organizational process assets

Expert judgment Project charter


Develop Project Charter Data Flow DiagramDevelop Project Charter Data Flow Diagram

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK®Guide) –Fourth Edition, Project Management Institute, Inc., 2008, Figure 4-3 Page 74.


Develop Project Charter: OutputsDevelop Project Charter: Outputs

Project CharterProject charter documents:

Business needs Current understanding of customer’s needs New product, service, or result

Project purpose Measurable project objectives and related success criteria High-level requirements High-level project description High-level risks Summary milestone schedule Summary budget Project approval requirements Responsibility and authority level of project manager, sponsor, or other

persons


Process Process - Develop Project Management Plan- Develop Project Management Plan It defines how the project is executed, monitored and controlled, and

closed.

It’s content will differ depending upon the application area and complexity of the project.

Project management processes selected by the project management team

Level of implementation of each selected process Description of the tools and techniques to be used How the selected processes will manage the

dependencies, interactions, inputs, and outputs among processes

It is updated, controlled, and approved through the

Perform Integrated Change Control process.


Develop Project Management Plan – Inputs, Tools, Develop Project Management Plan – Inputs, Tools, and Outputsand Outputs

Project charter Outputs from planning

processes Enterprise environmental f

actors Organizational process as

sets

Expert judgment Project management plan


Develop Project Management PlanDevelop Project Management Plan



Integrates and consolidates all of the subsidiary management plans

and baselines from the planning processes.

Project Life cycle Project management

processes

tailored to that project Subsidiary Plans Other baselines

It includes:

Develop Project Management Plan: OutputsDevelop Project Management Plan: Outputs

Project Management Plan

Continue…


Develop Project Management Plan: OutputsDevelop Project Management Plan: Outputs

What is performance measurement baseline?

A performance measurement baseline is the combination of: Schedule baseline Cost performance baselines Scope baseline

These baselines are used as an overall project baseline against which integrated performance can be measured.

Can you think of other baselines?

Quality

The performance measurement baseline is used for earned value measurement.


Process Process - Direct and Manage Project Execution - Direct and Manage Project Execution The process of performing the work defined in the project management plan

to achieve the project’s objectives.

What type of different activities could be included?

Perform activities to accomplish project requirements Create project deliverables Staff, train, and manage the team members Obtain, manage, and use resources (material, tools, etc.) Implement the planned methods and standards Establish and manage project communication channels (Internal and External) Generate project data (Cost, schedule, technical and quality progress, status to facilitate forecasting) Issue change request and adapt approved changes Manage risk and implement risk response activities Manage sellers and suppliers Collect and document lessons learned, and implement approved process improvement activities


Direct and Manage Project Execution Direct and Manage Project Execution

Corrective actions that will bring anticipated project performance into compliance with Project Management Plan.

Preventive actions to reduce the probability of potential negative consequences.

Defect repair request to correct product defects found by quality process with a recommendation to repair or replace the component.

It is directly affected by the project application area.

It requires implementation of approved changes covering:


Direct and Manage Project Execution– Inputs, Direct and Manage Project Execution– Inputs, Tools, and OutputsTools, and Outputs

Project management plan Approved change requests

– The documented, authorized changes to expand or reduce project scope which may require implementation of preventive or corrective actions.

Enterprise environmental factors

Organizational process assets

Expert judgment Project management

information system

Deliverables Work performance

information Change requests Project management plan

updates Project document update

s


Direct and Manage Project Execution Direct and Manage Project Execution



Direct and Manage Project Execution:Direct and Manage Project Execution:Tools and TechniquesTools and Techniques

Who can be the experts?

Consultants, Stakeholders, Professional and technical associations and other units within the organization.

Project management information system is a part of the enterprise environmental factors.

It provides access to an automated tools, such as: A scheduling software tool A configuration management system An information collection and distribution system

Web interfaces to other online automated systems


Direct and Manage Project Execution: OutputsDirect and Manage Project Execution: Outputs

Deliverables: An approved deliverable is any unique and verifiable product to perform a service to complete a process, phase, or project.

Work Performance Information: Collective information as the project progresses. This includes:

Deliverables status Schedule progress Costs incurred

Continue…

Change Requests: Issues found during the project work. These issues may modify Project's: Policies or procedures, scope, cost, schedule or quality.

Requests for a change can include:

Corrective action Preventive action Defect repair


Direct and Manage Project Execution: OutputsDirect and Manage Project Execution: Outputs

Project management plan that may be updated include:

Requirement, Schedule, Cost, Quality, Human, Communications, Risk, Procurement Management Plans

Project Baselines

Project documents that may be updated include:

Requirement documents Project logs (issue, assumption, etc.) Risk register Stakeholder register


Process Process - Monitor and Control Project Work- Monitor and Control Project Work

The process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.

Monitoring includes:

Collecting Measuring Distributing performance information, and Assessing measurements and trends to improve processes

Controlling includes:

Determining corrective or preventive actions Replanning and following up on action plans

Continue…


Monitor and Control Project WorkMonitor and Control Project Work

Comparing actual project performance against the project management plan.

Assessing performance to determine whether any corrective or preventive actions are indicated, and recommending those actions as necessary.

Identifying new risks and analyzing, tracking, and monitoring existing project risks.

Maintaining an accurate, timely information base concerning the project's product(s) and their associated documentation through project completion.

Providing information to support status reporting, progress measurement, and forecasting.

Providing forecasts to update current cost and current schedule information.

Monitoring implementation of approved changes as per their occurrence.

What type of different activities could be included?


Monitor and Control Project Work– Inputs, Tools, Monitor and Control Project Work– Inputs, Tools, and Outputsand Outputs

Project management plan Performance reports Enterprise environmental

factors Organizational process as

sets

Expert judgment Change requests Project

management plan Project document u

pdates


Monitor and Control Project WorkMonitor and Control Project Work



Monitor and Control Project Work– OutputsMonitor and Control Project Work– Outputs

Change requests Project management plan Project document updates

Project Management Plan Project Document


Process Process - Perform Integrated Change Control - Perform Integrated Change Control

It is performed from project inception through completion.

The project management plan, scope statement, and other deliverables must be maintained by carefully and continuously managing changes by:

Rejecting changes OR Approving changes

Incorporate approved changes

into revised baseline.

Continue…


Influencing the factors that circumvent change control so that only approved changes are implemented.

Reviewing, analyzing, and approving change requests promptly (slow decision may negatively affect time, cost, or the feasibility of a change)

Managing approved changes.

Releasing approved changes for incorporation into the project management plan and project documents.

Reviewing, approving, or denying all recommended corrective and preventive actions.

Coordinating changes across the entire project.

Documenting the complete impact of change requests.

Perform Integrated Change ControlPerform Integrated Change ControlWhat type of different activities could be included?

Continue…


Perform Integrated Change ControlPerform Integrated Change Control

Every (documented) change must be either accepted or rejected by some authority.

Within the project management team OR External organization

Many times, change control system includes a change control board (CCB) responsible for approving o rejecting change requests.

If the project is being provided under a contract, then some proposed changes need to be approved by the customer.


Note Note

Do not consider yourself an opponent of changes by default, but you do need to manage changes and make sure each change goes through the change control system and that changes do not make their way through the backdoor. So, when it comes to changes, the keyword is control, not oppose.


Configuration Management System Configuration Management System

A configuration management system with integrated change control provides, a standardized, effective, and efficient way to manage approved changes and baselines within a project.

Configuration control focuses on

Specifications of deliverables and processes

Identifying, documenting and controlling changes to the project and the product baselines

Change control focuses on

While

Continue…


Configuration Management System Configuration Management System Configuration management system, including change control

processes, accomplishes three objectives:

Establish an evolutionary method to consistently identify and request changes to established baselines, and assess the value and effectiveness of those changes.

Provides opportunities to continuously validate and improve the project by considering the impact of each change.

Provides mechanism for the project management team to consistently communicate all approved and rejected changes to the stakeholders.

Continue…


Configuration Management System Configuration Management System

Configuration management activities included in the integrated change control processes are:

Configuration Identification

Configuration status accounting

Configuration verification and audit


Perform Integrated Change Control– Inputs, Tools, Perform Integrated Change Control– Inputs, Tools, and Outputsand Outputs

Project management plan

Work performance information

Change requests Enterprise environment

al factors Organizational process

assets

Expert judgment Change control

meetings

Change request status updates

Project management plan updates

Project document updates


Perform Integrated Change ControlPerform Integrated Change Control



Perform Integrated Change Control – OutputsPerform Integrated Change Control – Outputs

Change request status updates Project management plan updates Project document updates


The process of finalizing all activities across all the Project Management Process Groups to formally complete the project or phase.

Includes activities to investigate and document the reasons if a project is terminated before completion.

Process Process - Close Project or Phase- Close Project or Phase

Activities for administrative closure of the project or phase: Satisfy completion or exit criteria for the phase or

project

Transfer the project’s products, services, or results to the next phase or production or operations

Collect project or phase records, audit project success or failure, gather lessons learned and archive project information for future use.


Close Project or phase – Inputs, Tools, and Close Project or phase – Inputs, Tools, and OutputsOutputs


Accepted deliverables Organizational proces

s assets

Expert judgment Final product, service, or result transition

Organizational process assets updates


Close Project or PhaseClose Project or Phase



Close Project or Phase - OutputsClose Project or Phase - Outputs

Final product, service, or result transition:

- refers to the transition of the final product, service, or result that the project was authorized to produce. (based on transition criteria)

Organizational Process Assets Updates:

- includes project files, project or phase closure documents, and historical information, etc.


PROJECT SCOPE MANAGEMENTPROJECT SCOPE MANAGEMENT



Course Structure

Project Scope Management

Introduction

Project Scope Management - Introduction

Collect Requirements: Inputs, Tools, and Outputs

Collect Requirements

Verify Scope: Inputs, Tools, and Outputs

Verify Scope

Create WBS

Control Scope

Control Scope: Inputs, Tools, and Outputs

Create WBS: Inputs, Tools, and Outputs

Define Scope

Define Scope: Inputs, Tools, and Outputs


Project Scope ManagementProject Scope Management

The processes required to ensure that the project includes all the work required, and only the work required to complete the project successfully.

It is primarily concerned with defining and controlling ‘what is’ and ‘what is not’ included in the project.


Project Scope Management - ProcessesProject Scope Management - Processes

Collect Requirements: process of defining and documenting stakeholders’ needs to meet the project objectives.

Define Scope: process of developing a detailed description of the project and product.

Create WBS: process of subdividing project deliverables and project work into smaller, more manageable components.

Verify Scope: process of formalizing acceptance of the completed project deliverables.

Control Scope: process of monitoring the status of the project and product scope and managing changes to the scope baseline.


Product Scope vs. Project ScopeProduct Scope vs. Project Scope

Product Scope: The features and functions that characterize a product, service, or result. Completion of the “product scope” is measured against the product requirements.

Project Scope: The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions. Completion of the “project scope” is measured against the project management plan.


Project Scope ManagementProject Scope Management The work involved in performing the five processes of Project Scope Management is

preceded by a planning effort by the project management team.

This planning effort is part of the Develop Project Management Plan process, This includes:

Time, Cost, and Scope management

Scope Management Plan process provides guidance on how project scope will be:

Defined Documented Verified Managed, and Controlled


Collect RequirementsCollect Requirements


Collect RequirementsCollect Requirements The process of defining and documenting stakeholders’ needs to meet the project

objectives.

Continue…

Categories of Requirements

Project Requirements Product Requirements

Business Requirements

Project management Requirements

Delivery Requirements

Technical Requirements

Security Requirements

Performance Requirements



Requirements become the foundation of Scope definition.

The development of requirements begins with an analysis of the information contained in:

The project charter The stakeholder register

Cost, schedule, and quality planning are built on these requirements.


Collect Requirements – Inputs, Tools, and OutputsCollect Requirements – Inputs, Tools, and Outputs

Project Charter Stakeholder register

Interviews Focus groups Facilitated workshops Group creativity techniques Group decision making techniques Questionnaires and surveys Observations Prototypes

Requirements documentation Requirements management

plan Requirements traceability

matrix


Collect Requirements – Tools and TechniquesCollect Requirements – Tools and Techniques

Technique Key Characteristics Limitations

Interview A formal or informal method to find out information by talking to the stakeholders directly

Often conducted “one-on one”

Analysis of the data becomes difficult

Expensive and time consuming

Interviewer can be biased

Focus groups Bring stakeholders and subject matter experts together to learn about their expectations and attitudes towards a proposed product, service, or result

Trained moderator guides through an interactive discussion

More conversational than a one-on-one interview

Cost of finding a moderator with good facilitative skills and venue

May be dominated by one or two participants only

Analysis of the data becomes difficult and time consuming

Continue…




Facilitated

Workshops

Sessions to bring key cross-functional stakeholders together to define product requirements

A primary technique for quickly defining cross-functional requirements and reconciling stakeholder differences

Issues can be discovered and resolved more quickly than in individual sessions

Difficult to keep focused, clear purpose and desired outcome

May be dominated by powerful individuals

Group Creativity Technique

Brainstorming Nominal group technique The Delphi technique Idea/mind mapping Affinity diagram

Analysis of the data becomes difficult and time consuming

May loose the focus of the discussion

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Technique Key Characteristics

Limitations

Group Decision

MakingTechniques

An assessment process of multiple alternatives with an expected outcome for future actions

Used to generate, classify, and prioritize product requirements

Multiple methods such as, Unanimity, Majority, Plurality, and Dictatorship

Time consuming May be dominated by

powerful people Problems and conflicts

occur due to non acceptance of some decisions

Questionnairesand Surveys

Written sets of questions designed to quickly gather information from wide number of audiences

Statistical analysis is appropriate

No response for selective items

Time consuming

Continue…




Observations A direct way of viewing individuals in their environment and how they perform their jobs or tasks

Can also be done by a “participant observer” who actually performs a process or procedure to experience how it is done

May land up collecting unimportant material

Unable to observe large population

Data analysis can be time consuming

Prototypes A method of providing a working model of the expected product before actually building it

Allows stakeholders to experiment with a model rather than only discussing abstract representations

Too slow process Time consuming and

expensive


Collect Requirements – OutputsCollect Requirements – Outputs

Requirements Documentation: describes how individual requirements meet the business need for the project.

Format of a requirements documents may be,

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A simple document listing all the requirements categorized by stakeholder and priority

Elaborate forms containing executive summary, detailed descriptions, and attachments


Collect Requirements – OutputsCollect Requirements – Outputs Requirements documentation include:

Business need or opportunity to be seized, describing the limitations of the current situation and what the project has been undertaken

Business and project objectives for traceability Functional requirements, describing business processes, information,

and interaction with the product, as appropriate which can be documented textually in a requirements list, in models, or both

Non-functional requirements, such as level of service, performance, safety, security, compliance, supportability, retention/purge, etc

Quality requirements Acceptance criteria Business rules stating the guiding principles of the organization Impacts to other organizational areas, such as the call center, sales force,

technology groups Impacts to other entities inside or outside the performing organization Support and training requirements Requirements assumptions and constraints

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Collect Requirements – OutputsCollect Requirements – Outputs Requirements Management Plan: documents how requirements will

be analyzed, documented, and managed throughout the project.

How requirements activities will be planned, tracked, and reported Configuration management activities such as:

how changes to the product, service, or result requirements will be initiated,

how impacts will be analyzed, how they will be traced, tracked, and reported, as well as the authorization

levels required to approve these changes

Requirements prioritization process Product metrics that will be used and the rationale for using them Traceability structure, that is, which requirements attributes will be captured on the traceability matrix and to which other project documents requirements will be traced.

Requirements Management Plan includes:

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Collect Requirements – OutputsCollect Requirements – Outputs

Requirements Traceability Matrix: Is a table that links requirements to their origin and

traces them throughout the project life cycle. Ensures that each requirement adds business value

by linking it to the business and project objectives. Provides a structure for managing changes to the

product scope.

This process includes tracing requirements to: Business needs, opportunities, goals, and objectives Project objectives Project scope/WBS deliverables Product design and development Test strategy and test scenarios, and More detailed requirements from high-level requirements

Sample RTM


Define Scope Define Scope


Define Scope

The process of developing a detailed description of the project and product.

A detailed project scope statement is critical to project success and builds upon the major deliverables, assumptions, and constraints that are documented during project initiation.

During planning, the project scope is defined and described with greater specificity as more information about the project is known.


Define Scope – Inputs, Tools, and OutputsDefine Scope – Inputs, Tools, and Outputs

Project Charter - If in the performing

organization, project charter is not used then comparable information needs to be acquired and used as a basis for the detailed project scope statement.

Requirements documentation


Expert judgment Product analysis Alternatives

identification Facilitated workshops

Project scope statement



Define Scope – OutputsDefine Scope – Outputs

Project Document Updates:

Stakeholder register Requirements documentation, and Requirements traceability matrix

The detailed project scope statement includes:

Product scope description Product acceptance criteria

Project deliverables Project exclusions Project constraints Project assumptions


Define Scope Data Flow Diagram



Create WBSCreate WBS


Create WBSCreate WBS

Create Work Breakdown Structure (WBS) is the process of subdividing project deliverables and project wok into smaller, more manageable components.

Requirements become the foundation of WBS.

The WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team, to: Accomplish project objectives and Create required deliverables

The lowest level of WBS component are called work packages and it can be:

Scheduled Cost Estimated Monitored Controlled


Create WBS – Inputs, Tools, and OutputsCreate WBS – Inputs, Tools, and Outputs

Project scope statement Requirements

documentation Organizational process a

ssets

Decomposition

WBS WBS dictionary Scope baseline Project document upd

ates


Create WBS – OutputsCreate WBS – Outputs

WBS

WBS dictionary A document generated by the Create

WBS process that supports the WBS.

Scope baseline Project scope statement WBS WBS dictionary


Project Scope Statement


Work Breakdown StructureWork Breakdown Structure


Work Breakdown Structure - ExampleWork Breakdown Structure - Example

RSD – Requirement Specification Design

RTM – Requirement Traceability Matrix


Create WBS Data Flow Diagram



Verify ScopeVerify Scope


Verify ScopeVerify Scope The process of formalizing acceptance of the completed project deliverables.

Verify Scope includes:

Reviewing deliverables to ensure satisfactory completion

Obtaining formal acceptance of deliverables


Scope Verification vs. Quality Control Scope Verification vs. Quality Control

Scope verification is primarily concerned with the acceptance of deliverables, while quality control is primarily concerned with meeting quality requirements specified for the deliverables.

If the project is terminated early, the project scope verification process should establish and document the extent of completion.


Verify Scope – Inputs, Tools, and OutputsVerify Scope – Inputs, Tools, and Outputs

Project management plan Requirements documentation Requirements traceability

matrix Validated deliverables

- Completed and checked for correctness by the Perform Quality Control process.

Inspection Accepted deliverables Change requests Project document updates


Verify Scope – OutputsVerify Scope – Outputs

Accepted deliverables: Formal documentation received from the customer or sponsor acknowledging stakeholder acceptance of the project’s deliverables is forwarded to the Close project or Phase process.

Project Document Updates: Include any documents that define the product or report status on product completion.

Change requests


Verify Scope – OutputsVerify Scope – Outputs

IntegratedChangeControl

Deliverable

Accepted

Close Documented forNon-acceptance

Not Accepted

Yes NoChange Request

Defect Repair


Verify Scope Data Flow Diagram



Control ScopeControl Scope


Control Scope

The process of: Monitoring the status of the project and product scope Managing changes to the scope baseline

It ensures that all requested changes and recommended corrective actions are processed through the Perform Integrated Change Control process.

It is also used to manage the actual changes when they occur and integrated with other control processes.

Uncontrolled changes are often referred to as project scope creep.


Control Scope – Inputs, Tools, and OutputsControl Scope – Inputs, Tools, and Outputs

Project management plan - Contains: Scope baseline,

Scope management plan, Change management plan, Configuration management plan, and Requirements management plan.

Work performance information

Requirements documentation

Requirements traceability matrix


Variance analysis- Determining the cause and degree of variance relative to the scope baseline- Deciding whether corrective or preventive action is required.

Work performance measurement


Change requests Project management plan

updates Project document updates


Control Scope – OutputsControl Scope – Outputs



Change requests

Project management plan updates Scope Baseline Updates Other Baseline Updates



Control Scope Data Flow Diagram



PROJECT TIME MANAGEMENTPROJECT TIME MANAGEMENT



Course StructureProject Time Management

Introduction

Project Time Management – Introduction

Define Activities : Inputs, Tools, and Outputs

Define Activities

Estimate Activity Duration : Inputs, Tools, and Outputs

Estimate Activity Duration

Estimate Activity Resources

Develop Schedule

Develop Schedule : Inputs, Tools, and Outputs

Estimate Activity Resources : Inputs, Tools, and Outputs

Sequence Activities

Sequence Activities : Inputs, Tools, and Outputs

Control Schedule

Control Schedule : Inputs, Tools, and Outputs


Project Time Management – IntroductionProject Time Management – Introduction


Project Time Management – IntroductionProject Time Management – Introduction The processes required to manage timely completion of the project.

They include the following:

Define Activities - process of identifying the specific actions to be performed to produce the project deliverables.

Sequence Activities - process of identifying and documenting relationships among the project activities.

Estimate Activity Resources - process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity.

Estimate Activity Durations - process of approximating the number of work periods needed to complete individual activities with estimated resources.

Continue…



Develop Schedule - process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.

Control Schedule - process of monitoring the status of the project to update project progress and managing changes to the schedule baseline.

*Note: Majority of effort in the Project Time Management is incurred in the Control Schedule process to ensure completion of project work on time.


Scheduling OverviewScheduling Overview


Define ActivitiesDefine Activities


Define ActivitiesDefine Activities The process of identifying the specific actions to be performed to produce the

project deliverables.

Project work packages that are decomposed into smaller components called activities to provide basis for:

Estimating Scheduling Executing Monitoring and Controlling the project work


Define Activities – Inputs, Tools, and OutputsDefine Activities – Inputs, Tools, and Outputs

Scope baseline

Enterprise environmental factors


Decomposition- Involving team members in the decomposition can lead to better and more accurate results.

Rolling wave planning

Templates

Expert judgment

Activity list

Activity attributes

Milestone list


Rolling Wave PlanningRolling Wave Planning

A form of progressive elaboration planning where, - the work to be accomplished in the near term is planned in detail and

- future work is planned at a higher level of the WBS.

Work can exist at various levels of detail depending on where it is in the project life cycle.


Define Activities Data Flow DiagramDefine Activities Data Flow Diagram



Define Activities – OutputsDefine Activities – Outputs

Activity list- It is a comprehensive list including all schedule activities required on the project.

Activity attributes- Extend the description of the activity by identifying the multiple components associated with each activity.

Milestone list- A milestone is a significant point or event in the project.

Mandatory (Such as those required by contract) - Milestone List

Optional (Such as those based upon historical information)


Sequence ActivitiesSequence Activities


Sequence ActivitiesSequence Activities The process of identifying and documenting relationships among project

activities. Activities are sequences using logical relationships.

Every activity and milestone except the first and last are connected to at least one predecessor and one successor.

It may be necessary to use lead and lag time between activities to support a realistic and achievable project schedule.

Sequencing can be performed by using:- project management software or- manual or automated techniques


Sequence Activities – Inputs, Tools, and OutputsSequence Activities – Inputs, Tools, and Outputs

Activity list Activity attributes Milestone list Project scope

statement Organizational proc

ess assets

Precedence Diagramming Method (PDM)

Dependency determination Applying leads and lags Schedule network templates

Project schedule network diagrams



Sequence Activities Data Flow DiagramSequence Activities Data Flow Diagram



Precedence Diagramming Method (PDM)Precedence Diagramming Method (PDM) PDM is a method used in Critical Path Method (CPM) for constructing a project schedule network diagram.

It uses boxes or rectangles, referred to as nodes, to represent activities, and connects them with arrows that show the logical relationships that exist between them. Also known as Activity On Node (AON)

Four types of dependences included in PDM:

Finish-to-start (FS)

Finish-to-finish (FF)

Start-to-start (SS)

Start-to-finish (SF)


Types of DependenciesTypes of Dependencies

FINISH START

F Completion of successor depends on completion of predecessor

Initiation of the successor depends on completion of the predecessor

S

Completion of the successor depends upon the initiation of predecessor

Initiation of the successor activity depends on the initiation of predecessor


Types of DependenciesTypes of Dependencies

Finish to Finish

Start to Start

Finish to start


Dependency DeterminationDependency DeterminationFollowing types of dependencies are used to define the sequence among the activities:

Mandatory dependencies – Those that are contractually required or inherent in the nature of the work being done (referred to as “Hard logic”).

Discretionary dependencies – Established based on - knowledge of best practices and unusual aspect of the project. (referred to as “preferred logic, preferential logic, or soft logic”)

Discretionary dependencies should be fully documented since they can create arbitrary total float values and can limit later scheduling options.

When fast tracking techniques are employed, these discretionary dependencies should be reviewed and considered for modification of removal.

Continue…


Dependency DeterminationDependency Determination External dependencies – The project management team determines which

dependencies are external dung the process of sequencing the activities. Involves relationship between project activities and non-project activities (sub

contractors). These dependencies are usually outside the project team’s control.


Estimate Activity ResourcesEstimate Activity Resources


Estimate Activity ResourcesEstimate Activity Resources

The process of estimating the type and quantities of: Material People Equipment Supplies required to perform each activity.

It is closely coordinated with the Estimate Costs process.


Estimate Activity Resources – Inputs, Tools, and Estimate Activity Resources – Inputs, Tools, and OutputsOutputs

Activity list Activity attributes Resource calendars Enterprise environment

al factors Organizational process

assets

Expert judgment Alternatives analysis Published estimating

data Bottom-up estimating

- When an activity cannot be estimated with a reasonable degree of confidence, the work within the activity is decomposed into more detail

Project management software

Activity resource requirements

Resource breakdown structure



Estimate Activity Resources Data Flow DiagramEstimate Activity Resources Data Flow Diagram



Estimate Activity Resources – OutputsEstimate Activity Resources – Outputs

Resource breakdown structure

- It is a hierarchical structure of the identified resources by resource category and resource type.

- Examples of resource categories include: Labour Material Equipment Supplies

- Resource types can include: Skill level Grade level Other information as appropriate to the project.

- It is useful for organizing and reporting project schedule data with recourse utilization information.


Estimate Activity DurationsEstimate Activity Durations



The process of approximating the number of work period needed to complete individual activities with estimated resources.

The duration estimate is progressively elaborated, based on quality and availability of the input data and results in better and accurate estimates.

Continue…



Using Project Calendar & Resource Calendar

Number of Work Periodsneeded (Activity Duration)

Amount of work effort required &Resources to be applied


Estimate Activity Duration – Inputs, Tools, and Estimate Activity Duration – Inputs, Tools, and OutputsOutputs

Activity list Activity attributes Activity resource requirements Resource calendar Project scope statement Enterprise environmental factors Organizational process assets

Expert judgment Analogous estimating Parametric estimating Three-point estimates Reserve analysis

Activity duration estimates



Estimate Activity Duration Data Flow DiagramEstimate Activity Duration Data Flow Diagram



Estimation MethodsEstimation Methods

1. Analogous Estimating:

Analogous duration estimating is frequently used to estimate project duration when there is a limited information

Uses parameters such as duration, budgets, size, weight, and complexity, from a previous, similar project, as the basis for estimation

Uses historical information and expert judgment. Is generally less costly and time consuming but also less accurate. Is most reliable when the previous activities are similar in fact and not just in

appearance, and the project team members preparing the estimates have the needed expertise.

Continue…


Estimation MethodsEstimation Methods

2. Parametric Estimating:

Uses a statistical relationship between historical data and other variables (e.g. square feet in construction) to calculate an estimate for activity parameters, such as: cost. budget, and duration.

It can produce higher levels of accuracy depending upon the sophistication and underlying data built into the model.

It can be applied to a total project or to segments of project, in conjunction with other estimating methods.

Continue…


Estimation MethodsEstimation Methods3.Three-Point Estimates:

The accuracy of activity duration estimates can be improved by considering estimation uncertainty and risk.

Program Evaluation and Review Technique (PERT) uses three estimates to define an approximate range for an activity's duration:

Most likely (tM) - Realistic expectation

Optimistic (tO) - Best-case

Pessimistic (tP) - Worst-case

PERT analysis calculates an Expected (tE) activity duration using a weighed average of these estimates

tE = (tO + 4tM + tP )

______________

6

Standard Deviation (SD) = (tP – tO ) / 6

Variance = ( SD ) 2 = [(tP – tO ) / 6 ] 2


Example using PERT• For example, take a network with the following dependent tasks,

with each successor task having a finish-to-start relationship with the predecessor task:

The standard deviation of the total path is given by taking the square root of the sum of the squares of each task standard deviation.


Sigma calculations


Develop ScheduleDevelop Schedule


Develop Schedule

The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.

Developing an acceptable project schedule is often an iterative process.

It determines the planned start and finish dates for project activities and milestones (dates).

Revising and maintaining a realistic schedule continues throughout the project as work progresses, the project management plan changes, and the nature of risk events evolves.


Develop Schedule – Inputs, Tools, and OutputsDevelop Schedule – Inputs, Tools, and Outputs

Activity list Activity attributes Project schedule network

diagrams Activity resource

requirements Resource calendars Activity duration estimates Project scope statement Enterprise environmental

factors Organizational process

assets

Schedule network analysis

Critical path method Critical chain method Resource levelling What-If scenario analysis Applying leads and lags Schedule compression Schedule tool

Project schedule Schedule baseline Schedule data Project document

updates


Develop Schedule Data Flow DiagramDevelop Schedule Data Flow Diagram



Schedule Network Analysis

It is a technique to generate the project schedule.

It employs various analytical techniques, to calculate the early and late start and finish dates for the uncompleted portions of project activities.

These techniques are: Critical Path Method Critical Chain Method What-if Analysis Resource leveling

Develop Schedule – Tools and TechniquesDevelop Schedule – Tools and Techniques


Critical Path Method (CPM)

This method calculates the theoretical early start and finish dates, and the late start and finish dates, for all activities without regard for any resource limitations.

This is done by performing a forward and backward pass analysis through the schedule network.


Continue…


Critical Path MethodCritical Path Method

Continue…


Float = Late Start – Early Start (or) Late Finish – Early Finish


Demo-Float

Continue…



Early start and finish dates and late start and finish dates – Affected by activity total float

Critical paths – A zero or negative total float

Critical Activities – Schedule activities on a critical path

Networks can have multiple near critical paths

Positive difference between early and late dates –Total Float


Critical Chain Method

The resource-constrained critical path is known as the critical chain.

After the critical path is identified, resource availability is entered and the resource-limited schedule result is determined.

Determining schedule status by comparing


amount of buffer remaining

amount of buffer needed to protect the delivery date

Difference between the buffer needed and the buffer remaining, determine if corrective action is appropriate.


Resource leveling

A schedule network analysis technique applied to a schedule that has already been analyzed by the critical path method.

Used when shared or critical required resources are only available at certain time, in limited quantities, or to keep resource usage at a constant level.

Often cause the original critical path to change.



What-If Scenario Analysis (Monte Carlo Analysis)

An analysis of the question “What if the situation represented by scenario ‘X’ happens?”


Applying Leads and Lags

Refinements applied during network analysis to develop a viable schedule.


Crashing

Fast Tracking

Schedule Compression

Shortens the project schedule without changing the project scope.


Scheduling Tool

Expedite the scheduling process by generating start and finish dates based on:

the inputs of activities network diagrams resources and activity durations


Develop Schedule – OutputsDevelop Schedule – Outputs

Project Schedule

Includes a planned start date and planned finish date for each activity. Can be presented in summary form, sometimes referred to as the master schedule or

milestone schedule or presented in details Project schedule can be presented in any of the following forms:


Control ScheduleControl Schedule


Control ScheduleControl Schedule The process of monitoring the status of the project to update project progress and

manage changes to the schedule baseline.

It is concerned with: Determining the current status of the project schedule Influencing the factors that create schedule changes Determining that the project schedule has changed Managing the actual changes as they occurs

It is a component of the Perform Integrated Change Control process.


Control Schedule – Inputs, Tools, and OutputsControl Schedule – Inputs, Tools, and Outputs


Project schedule Work performance

information Organizational

process assets

Performance review Variance analysis Project management

software Resource leveling What-if scenario

analysis Adjusting leads and

lags Schedule compression Scheduling tool



Change requests Project management plan Project document updates


Control Schedule Data Flow DiagramControl Schedule Data Flow Diagram



Control Schedule - OutputsControl Schedule - Outputs Work performance measurement

- The work packages and control accounts, are documented and communicated to stakeholders.

Organizational process assets updates - Causes of variances - Corrective action chosen and the reasons - Other types of lessons learned from project schedule control

Change requests Project management plan

- Schedule baseline - Schedule management plan - Cost baseline

Project document updates - Schedule Data - Project Schedule


PROJECT COST MANAGEMENTPROJECT COST MANAGEMENT



Course Structure

Project Cost Management

Introduction

Project Cost Management – Introduction

Estimate Costs : Inputs, Tools, and Outputs

Estimate Costs

Control Costs

Control Costs : Inputs, Tools, and Outputs

Determine Budget

Determine Budget : Inputs, Tools, and Outputs


Project Cost Management - IntroductionProject Cost Management - Introduction It includes the processes involved in estimating, budgeting and controlling costs so that

the project can be completed within the approved budget.

Project Cost Management includes:

Estimate Costs – process of developing an approximation of the monetary resources needed to complete project activities.

Determine Budget – process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Control Costs – process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.


On the smaller scope projects, cost estimating and cost budgeting are tightly linked and they are viewed as a single process.

The work involved in performing the Project Cost Management processes is preceded by a planning effort

This planning effort is part of the Develop Project Management Plan process, which produces a Cost Management Plan.

As example, the Cost Management Plan can establish:

Level of accuracy Unit of measure Organizational procedure links Control thresholds Rules of performance measurement Reporting formats Process descriptions

Project Cost Management - IntroductionProject Cost Management - Introduction


It is primarily concerned with the cost of resources needed to complete schedule activities.

This broader view of Project Cost Management is called Life Cycle Costing, it should also consider the effect of project decisions on the cost of -

Using Maintaining and Supporting

the product, service, or result of the project.

Value Engineering

Project Cost Management - IntroductionProject Cost Management - Introduction


Estimate CostsEstimate Costs


Estimate CostsEstimate Costs

It is the process of developing an approximation of the monetary resources needed to complete the project activities.

It includes identification and consideration of costing alternatives such as make versus buy, buy versus lease, and the sharing of resources in order to achieve optimal costs.

The accuracy of an estimate will increase as the project progresses through the project life cycle and thus, cost estimating is an iterative process from phase to

phase.

±50% Rough Order of Magnitude (ROM)

Acc

ura

cy

±10% Definitive Estimate


Estimate Costs – Inputs, Tools, and OutputsEstimate Costs – Inputs, Tools, and Outputs

Scope baselineScope statement- Work breakdown structure- WBS dictionary

Project schedule Human resource plan Risk register Enterprise environmental


assets

Expert judgement Analogous estimating Parametric estimating Bottom-up estimating Three-point estimates Reserve analysis Cost of quality Project management

estimating software Vendor bid analysis

Activity cost estimates Basis of estimates Project document

updates


Estimate Costs Data Flow DiagramEstimate Costs Data Flow Diagram



Estimate Costs – Tools and TechniquesEstimate Costs – Tools and Techniques

Expert Judgment

• Guided by historical information

• Determine use of combined methods of estimating

• Reconcile differences between these methods

Top-down Estimating

Analogous Estimating Parametric Estimating

• Relies on the actual cost of previous similar projects • Uses historical information and expert judgment• Used when limited amount of detailed information about the project is available• Less costly, time consuming, and less accurate• Applies to a total project or to segments of a project

• Uses a statistical relationship between historical data and other variables• Produces higher levels of accuracy• Applies to a total project or to segments of a project



Bottom-Up Estimating

• A method of estimating a component of work

• Detailed estimation on cost of individual work packages or activities

• Summarizing detailed cost for subsequent reporting and tracking purposes

• Cost and accuracy depends on the size and complexity of individual activity or work package



Three-Point Estimates

PERT analysis calculated an expected (CE) activity cost using a weighted average

of these three estimates.

• Accuracy of single-point activity cost estimates can be improved by considering estimation uncertainty and risk

• Three estimates to define an approximate range for an activity’ cost:

– Most likely (CM)

– Optimistic (CO)

– Pessimistic (CP)

• Add-on techniques– Reserve Analysis– Cost of Quality (COQ)– Project Management Estimating Software– Vendor Bid Analysis

CE = CO +4CM +CP

6


Estimate Costs - Outputs Estimate Costs - Outputs

Activity Cost Estimates

Cost can be either Variable or Fixed

Variable Cost: Cost changes with the amount of work (e.g. Material Cost)

Fixed Cost: Cost does not change with the amount of work (e.g. Rentals)

Cost can be either Direct or Indirect

Direct Cost: Costs that are directly attributable to work on the project. (Team Wages)

Indirect Cost: Overheads or costs incurred for the benefit of more than one project. (h/w, s/w purchased)


Estimate Costs – OutputsEstimate Costs – Outputs

Basis of estimates- The amount and type of additional details supporting the cost estimate vary by application area.

- Supporting details for activity cost estimates provide a clear and complete

understanding of how the cost estimate was derived.

Project document updates- For example, Risk register


Determine BudgetDetermine Budget


Determine BudgetDetermine Budget

The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Project budgets constitute the funds authorized to execute the project.

This baseline includes all authorized budgets, but excludes management reserves.

Project cost performance will be measured against the authorized budget.

Cash Flow, Cost Baseline and Funding - Graphical Display


Determine Budget – Inputs, Tools, and OutputsDetermine Budget – Inputs, Tools, and Outputs

Activity cost estimates Basis of estimates Scope baseline

- Scope Statement- Work breakdown structure- WBS dictionary

Project schedule Resource calendars Contracts Organizational process

assets

Cost aggregation Reserve analysis Expert judgment Historical

relationships Funding limit

reconciliation

Cost performance baseline

Project funding requirements



Determine Budget Data Flow DiagramDetermine Budget Data Flow Diagram



Determine Budget – Tools and Techniques Determine Budget – Tools and Techniques

Reserve Analysis

It can establish both, the contingency reserves and the management reserves for the project.

Contingency reserves – Allowances for unplanned but potentially required changes that can result from realized risks identified in the risk register.

Management reserves – Budgets reserves for unplanned changes to project scope and cost.

Reserves are not a part of the project cost baseline, but may be included in the total budget for the project and they are not included as a part of the earned value measurement calculations.


Cost Roll UpCost Roll Up


Control CostsControl Costs


Control CostsControl Costs The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.

Any increase to the authorized budget can only be approved through the Perform Integrated Change Control process.

The key to effective cost control is the management of the approved cost performance baseline and the changes to that baseline.

What type of different activities could be included? Influencing factors that create changes to cost baseline.

Ensuring that all change requests are acted on in a timely manner. Managing the actual changes when and as they occur. Ensuring that cost expenditure do not exceed the authorized funding, by period and in total

for the project. Monitoring cost performance to isolate and understand variance from the approved cost

baseline. Monitoring work performance against funds expended. Preventing unapproved changes from being included in the reported cost or resource usage. Incoming appropriate stakeholders of all approved changes and associated cost. Acting to bring expected cost overruns within acceptable limits.


Control Costs – Inputs, Tools, and OutputsControl Costs – Inputs, Tools, and Outputs

Project management plan Project funding

requirements Work performance

information Organizational process

assets

Earned value management Forecasting To-complete performance

index Performance reviews Variance analysis Project management software

Work performance measurements

Budge forecasts Organizational process

assets updates Change requests

- Analysis of project performance can result to the cost performance baseline or other components of the project management plan.




Control Costs Data Flow DiagramControl Costs Data Flow Diagram



Earned Value Management (EVM) integrates project scope, cost, and schedule measures to help the project management team assess and measure project performance and progress.

Planned Value (PV): Estimated value of the work planned to be done.Earned Value (EV): Estimated value of the work actually

accomplished.Actual Cost (AC): Actual money spent for the work accomplished.Budget at Completion (BAC): Budget for the total project work.

Important Terms:

Control Costs – Tools and TechniquesControl Costs – Tools and Techniques


Earned Value, Planned Value, and Actual CostsEarned Value, Planned Value, and Actual Costs



ForecastingForecasting

The project team can develop a forecast for the estimate at completion(EAC) that may differ from the budget at completion (BAC) based on the project performance.

Estimate at Completion (EAC): How much at present we expect total project to cost.

Estimate to Complete (ETC): How much more, at present, we expect it to cost to finish the project.

Variance at Completion (VAC): How much over or under budget, do we expect to be at the end of project.



Cost Management Formulae Cost Management Formulae Item Formula Remark

Cost Variance (CV) EV – AC Negative value indicates over budget and positive value indicates under budget

Schedule Variance (SV) EV – PV Negative value indicates behind schedule and positive value indicates ahead of schedule

Cost Performance Index (CPI) EV / AC Lesser than one indicates over budget and greater than one indicates under budget

Schedule Performance Index (SPI)

EV / PV Lesser than one indicates behind schedule and greater than one indicates ahead of schedule

Estimate at Completion (EAC) BAC / CPI Considering that the rate of spending remains the same

AC + ETC Considering that the current estimate is fundamentally flawed

AC + (BAC – EV) Considering atypical variances

AC + [(BAC – EV) / CPI]

Considering typical variances

Estimate to Complete (ETC) EAC – AC Considering that the current estimate is fundamentally flawed

BAC – EV Considering atypical variances

(BAC – EV) / CPI Considering typical variances

Variance at Completion (VAC) BAC – EAC Considering the status of the budget expected at the end of the project


To-Complete Performance Index (TCPI)To-Complete Performance Index (TCPI)


If it becomes obvious that the BAC is no longer viable, then the project manager develops a forecasted estimate at completion (EAC).

Work Remaining (BAC – EV) = TCPIFunds Remaining (BAC – AC) or (EAC – AC)

Once approved, the EAC effectively supersedes the BAC as the cost performance goal.

The calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal, such as the BAC or the EAC.


Important Financial Terms Important Financial Terms Financial Term Definition

Benefit Cost Ratio (BCR)

Compares the benefits (revenues) to the costs of different options

Chart of Accounts

Any numbering system used to monitor project costs by category (for example, labor, supplies, and materials)

Depreciation Reduced price of an asset over time attributable to deterioration, obsolescence, and impending retirement Applies particularly to physical assets such as equipment and structures Straight Line depreciation: Standard amount depreciating every year Accelerated depreciation: Value depreciating at a faster rate, for example, Double Declining method and Sum of the Years Digits

Internal Rate of Return (IRR)

Rate at which the project inflows and project outflows are equal Project with greatest IRR is generally selected

Net Present Value (NPV)

Present value of the total benefits minus costs over many time periods Investment is profitable for positive NPV Project with greatest NPV is selected

Opportunity Cost

Opportunity given up by selecting one project over another

Payback Period Time period it takes to recover the investment made in the project before the profits start accumulating

Present Value The current value of future cash flows.

Sunk Cost Expended costs, to be avoided when deciding whether to continue with a troubled project


PROJECT HUMAN RESOURCE MANAGEMENTPROJECT HUMAN RESOURCE MANAGEMENT



Course Structure

Project Human Resource Management

Introduction

Project Human Resource Management Skills

Develop Human Resource Plan : Inputs, Tools, and Outputs

Project Human Resource Management Processes

Human Resource Theories

Develop Human Resource Plan

Develop Project Team : Inputs, Tools, and Outputs

Develop Project Team

Acquire Project Team

Acquire Project Team : Inputs, Tools, and Outputs

Manage Project Team

Manage Project Team : Inputs, Tools, and Outputs


Project Human Resource Management SkillsProject Human Resource Management Skills

Project Human Resource Management relies on the substantial body of literature

about dealing with people.


Project Human Resource Management - IntroductionProject Human Resource Management - Introduction

Project Human Resource Management includes the processes that organize, manage, and lead the project team.

The project team is comprised of the people who have been assigned roles and responsibilities for completing the project.

Involvement and participation of team members in project planning and decision making can be beneficial and early involvement adds their expertise and strengthens their commitment to the project.

The project management team (referred as the core, executive, or leadership team) is a subset of the project team and is responsible for the project management and leadership activities.


Project Human Resource Management - IntroductionProject Human Resource Management - Introduction

Managing and leading the project team includes:

Influencing the project team

Professional and ethical behavior

Human Resource factors that may impact the project:

Team environmentGeographical locations of team membersCommunications among stakeholdersInternal and external politicsCultural issuesOrganizational uniqueness


Develop Human Resource PlanDevelop Human Resource Plan

It is the process of identifying and documenting:

Project roles, responsibilities, and required skills

Reporting relationships and

Creating a staffing management plan


Develop Human Resource PlanDevelop Human Resource Plan

It also documents:

Timetable for staff acquisition and release Identification of training needs Team-building strategies Plans for recognition and rewards programs Compliance considerations Safety issues Impact of the staffing management

plan on the organization

The availability of, or competition for, scarce or limited human resources should be considered.


Develop Human Resource Plan – Inputs, Tools, Develop Human Resource Plan – Inputs, Tools, and Outputsand Outputs

Activity resource requirements Enterprise environmental factors Organizational process assets

Organization charts and position descriptions

Networking Organizational theory

Human resource plan


Develop Human Resource Plan – Tools and TechniquesDevelop Human Resource Plan – Tools and Techniques

Organization Charts Position Descriptions

Hierarchical Matrix-based

- A responsibility assignment matrix (RAM) is used to illustrate the connections between work packages or activities and project team members. - One example of RAM is RACI (responsible, accountable, consult, and inform)

Text-orientedformats

Other sectionsof the Project Management Plan

- Responsibilities related to managing the project are listed and explained in other sections of the project management plan. - For example, risk register lists risk owners, communication plan lists team members responsible for communication activities.


Develop Human Resource Plan – Tools and Develop Human Resource Plan – Tools and TechniquesTechniques

Networking – Formal and informal interaction with others in an organisation, industry, or professional environment.

Organizational Theory – Provides information regarding the way in which people, teams, and organizational units behave.


1. Maslow’s Hierarchy of Needs:

Human Resource TheoriesHuman Resource Theories



2. Hezberg’s Theory of Motivation:

Presence of hygiene factors will not motivate people to perform as these are expected, however, their absence will demotivate performance.



3. McGregor’s Theory of X and Y:

‘X’ (Micro Management)

‘Y’ (Self Motivated)

4. Expectancy Theory:

People will behave based on what they expect as a result of their

behavior.


Develop Human Resource Plan – OutputsDevelop Human Resource Plan – Outputs

Human Resource Plan include: Roles and responsibilities

Role Authority Responsibility Competency

Project organization chart

Staffing Management Plan includes: Staff Acquisition Resource calendars (Resource Histogram) Staff release plan Training Needs Recognition and Rewards Compliance Safety


Acquire Project TeamAcquire Project Team

The project management team have limited control over selecting the team members due to:

Collective bargaining agreements, Use of subcontractor personnel, Matrix project environment, Internal or external reporting relationships

and other various reasons

It is the process of confirming human resource availability and obtaining the team necessary to complete project assignments.

Continue…


Acquire Project TeamAcquire Project Team Impact of unavailability of the required human resources get reflected in:

Project schedules Project budgets Customer satisfaction Project quality Project risks Training plans and the other project

management plan as required


Acquire Project Team – Inputs, Tools, and OutputsAcquire Project Team – Inputs, Tools, and Outputs

Project management plan Enterprise environmental


assets

Pre-assignment Negotiation Acquisition Virtual teams

Project staff assignments

Resource availability

Staffing management plan updates


Virtual Teams

Groups of people with a shared goal who fulfill their roles with little or no time meeting face to face.

The availability of electronic communication such as e-mail, audio conferencing, web-based meetings and video conferencing has made such teams feasible.

Communications planning becomes increasingly important in a Virtual Team Environment.

Acquire Project Team – Tools and TechniquesAcquire Project Team – Tools and Techniques


Develop Project TeamDevelop Project Team

It is the process of improving

To achieve high performance and to meet the project’s objectives, project managers should have skills to:

Identify Build Maintain Motivate, Lead, and Inspire project teams

Competencies

Interactions

Overall environment

Continue…


Develop Project TeamDevelop Project Team

Teamwork is critical for project success, and developing effective project teams is one of the primary responsibilities of the project manager.

Project managers should motivate their team by: Providing challenges and opportunities Providing timely feedback and support as needed Recognizing and rewarding good performance

High team performance can be achieved by: Using open and effective communication Developing trust among team members Managing conflicts in a constructive manner Encouraging collaborative problem-solving

and decision-making

Continue…


Develop Project Team – Inputs, Tools, and OutputsDevelop Project Team – Inputs, Tools, and Outputs

Project staff assignments


Resource calendars

Interpersonal skills Training Team-building

Activities Ground rules Co-location Recognition and

rewards

Team performance assessments Enterprise environmental factors

updates


Team-Building Activities Forming Storming Norming Performing Adjourning

Develop Project Team – Tools and TechniquesDevelop Project Team – Tools and Techniques

Co-location - Involves placing of the most active project team members in the same

physical location to enhance their ability to perform as a team.

- This may require, a team meeting room places to post schedules other conveniences that enhance communication and a sense of community.

Continue…


Recognition and Rewards

– Recognition and Rewards should be given - willingness to work overtime to meet an aggressive schedule objective

– Recognition and rewards should not be given - need to work overtime due to poor planning by the team member

– Avoid win-lose (zero sum) rewards

– People are motivated When they feel they are valued in the organization

Develop Project Team – Tools and TechniquesDevelop Project Team – Tools and Techniques

Recognition and rewards should be given to make them feel that they are valued


Team Performance Assessments

Develop Project Team – OutputsDevelop Project Team – Outputs

– The project management team makes formal or informal assessments of the project team’s effectiveness and as a result, the project management team can identify the specific: - training

- coaching - mentoring - assistance of changes required to improve the team’s performance.

– The evaluation of a team’s effectiveness include: Improvements in skills and competencies Reduced staff turnover rate Increased team cohesiveness


Manage Project TeamManage Project Team

It is the process of:

Tracking team member performance Providing feedback Resolving issues Managing conflict Managing changes to optimize project performance Appraising team member performance

Continue…


Manage Project TeamManage Project Team

As a result of managing project team:

Change requests are submitted. Human resource plan is updated. Issues are resolved. Input is provided for performance appraisal. Lesson learned are added to the organization database.


Manage Project Team – Inputs, Tools, and OutputsManage Project Team – Inputs, Tools, and Outputs

Project staff assignments Project management plan Staffing management plan Team performance

assessment Performance reports Organizational process

assets

Observation and conversation

Project performance appraisals

Conflict management Issue log Interpersonal skills

Enterprise environmental factors updates


Change requests- Staffing changes, whether by choice or by uncontrollable events, can affect the rest of the project management plan.



Leadership StylesLeadership Styles

Directing : Telling others what to do.

Facilitating : Coordinating the inputs of others.

Coaching : Instructing others.

Supporting : Providing assistance along the way.

Autocratic : Making decisions without gathering information from other team members.

Consultative : Inviting ideas and suggestions from team members.

Consensus : Problem solving in a group with decision making based on group agreement.


Various Powers of a Project ManagerVarious Powers of a Project Manager

Formal (Legitimate)

Reward

Penalty (Coercive)

Expert

Referent

(Best forms of power are EXPERT and REWARD)


Conflict ManagementConflict Management

Characteristics of conflict and the conflict management process: Conflict is natural and forces a search for alternatives Conflict is a team issue Openness resolves conflict Conflict resolution should focus on issues, not personalities Conflict resolution should focus on the present, not the past

Six general techniques for resolving conflict: Withdrawal / Avoidance Smoothing / Accommodating Compromise Forcing Collaborating Confronting / Problem Solving


Interpersonal SkillsInterpersonal Skills Project managers use a combination of,

Technical Human Conceptual skills

To analyze situations and interact appropriately with team members

Using appropriate interpersonal skills aids project managers in capitalizing on the strengths of all team members.


PROJECT COMMUNICATIONS MANAGEMENTPROJECT COMMUNICATIONS MANAGEMENT


Course StructureProject Communications Management

Introduction

Basic Communication Model

Plan Communications : Inputs, Tools, and Outputs

Project Communications Management Processes

Plan Communications

Manage Stakeholder Expectation : Inputs, Tools, and Outputs

Distribute Information

Distribute Information : Inputs, Tools, and Outputs

Report Performance

Report Performance : Inputs, Tools, and Outputs

General Communication Dimensions

Manage Stakeholder Expectation

Identify Stakeholders

Identify Stakeholders : Inputs, Tools, and Outputs


Project Communications ManagementProject Communications Management

It includes the processes required to ensure timely and appropriate: Generation Collection Distribution Storage Retrieval and Ultimate disposition of

project information

Continue…

Project Manager’s majority of time (90%) is spent in communicating with the project team and other stakeholders (internal or external to the organization).


Project Communications Management Project Communications Management

Effective communication creates a bridge between diverse stakeholders involved

in a project by:Connecting various cultural and organizational backgroundsDifferent levels of expertise

Various perspectives and interests in the project execution or outcome

Continue…


Project Communications ManagementProject Communications Management Communication activity has many potential dimensions, including:

Internal (within the project) and external (customer, other projects, the media, the public)

Formal (reports, memos, briefings) and informal (emails, ad-hoc discussions) Vertical (up and down the organization) and horizontal (with peers) Official (newsletters, annual report) and unofficial (off the record communications) Verbal and non-verbal (voice inflections, body language) Written and oral

Continue…


Project Communications ManagementProject Communications Management Communication skills common for general and project management:

Listening actively and effectively Questioning, probing ideas and situations Educating to increase team’s knowledge Fact-finding to identify or confirm information Setting and managing expectations Persuading a person or organization Negotiating to achieve mutually

acceptable agreements between parties Resolving conflict to prevent disruptive

impacts Summarizing, recapping, and

identifying the next steps


Project Communications Management - ProcessesProject Communications Management - Processes


Identify StakeholdersIdentify Stakeholders

It is critical to identify stakeholders early in the project, and to analyze their levels of interests, expectations, importance, and influence.

A strategy can be developed for approaching each stakeholder and determining the level and timing of their involvement to maximize positive influences and mitigate potential negative impacts.

Stakeholders should be classified according to their interest, influence and involvement as this enables the project manager to focus on the relationships necessary to ensure the success of the project due to limited time.


Identify Stakeholders – Inputs, Tools, and OutputsIdentify Stakeholders – Inputs, Tools, and Outputs

Project charter Procurement documents Enterprise environmental


assets

Stakeholder analysis Expert Judgement

Stakeholder register Stakeholder management

strategy


Identify Stakeholders – Tools and TechniquesIdentify Stakeholders – Tools and Techniques

Stakeholder analysis – Generally follows three steps

Step 1: Identify all potential project stakeholders and relevant information

Step 2: Identify the potential impact each stakeholder could generate, and classify them so as to define an approach strategy.

Stakeholder’s classification models: Power/interest grid Power/influence grid Influence/impact grid Salience model

Continue…

Example


Identify Stakeholders – Tools and TechniquesIdentify Stakeholders – Tools and Techniques

Step 3: Assess how key stakeholders are likely to react or respond in various

situations, in order to plan: How to influence them to enhance their support and Mitigate potential negative impacts


Plan CommunicationsPlan Communications It determines information and communication needs of the project stakeholders. For

example: Who needs what information When they will need it How it will be given to them, and By whom

This process is tightly linked with enterprise environmental factors, because the organization’s structure will have a major effect on the project's communications requirements.


Plan Communications – Inputs, Tools, and OutputsPlan Communications – Inputs, Tools, and Outputs


strategy Enterprise environmental


assets

Communication requirements analysis

Communications technology

Communication models Communication methods

Communicationmanagement plan

Project documents updates


Communications Requirements AnalysisCommunications Requirements Analysis

Number of communication channels : [ n ( n -1) ] 2

where n = Number of stakeholders

Continue…


Communications Requirements AnalysisCommunications Requirements Analysis

Number of communication channels = [ n ( n -1) ]

2 = [ 5 ( 5 -1) ] 2 =10


Communication TechnologyCommunication Technology

Factors that can affect the selection of communication technology in a project include:

Urgency of the need for information Availability of technology Expected project staffing Duration of the project Project environment


Basic Communication ModelBasic Communication Model

The Sender is responsible for making the information Clear Unambiguous and Complete

so that the Receiver receives it correctly.

The Receiver is responsible for ensuring that the information is received in its entirety, understood correctly and acknowledged.


Communication MethodsCommunication Methods Methods used to share information among project stakeholders are classified into:

Interactive communication – Between two or more parties performing multidirectional exchange of information.

e.g. meetings, phone calls, video conferencing, etc.

Push communication – Sent to specific recipients who need to know the information. e.g. letters, memos, reports, emails, etc.

Pull communication – Used for very large audiences that requires the recipients to access the communication content at their own discretion. e.g. intranet sites, e-learning, etc.


Communications Management PlanCommunications Management Plan

The Communications Management Plan provides:

Stakeholder communication requirements. Information to be communicated. (Format, Content,

Level of detail) Person responsible for communicating the information. Methods or technology used to convey the information. Escalation process. Glossary of common terminology.

Continue…


Communications Management PlanCommunications Management Plan

Type of Information

Purpose of Distribution

Document Format

Method of Distribution

FrequencyPerson

Responsible

Audience

Requirements gathering

To understand customer

requirements

MS Word document

Meeting and written

communication

During project

initiation

Project manager

Project team

Weekly status Project status update

MS Word document

E-mail communication followed by a

meeting

Weekly Project manager

All project stakeholders

Executive status

To check progress and

discuss corrective

actions

MS Power Point

presentation

Meeting and written

communication

Bi-weekly Operations manager

Senior executives

and functional

heads

Knowledge sharing

To share lessons learned

MS Power Point

presentation

Classroom Presentation

Monthly Team members

Project team


Distribute InformationDistribute Information

It is the process of making relevant information available to project stakeholders as planned, this involves:

Implementing communications management plan Responding to unexpected requests for information

Information distribution methods include:

Sender-receiver models Choice of media Writing style Meeting management techniques Presentation techniques Facilitation techniques


Distribute Information– Inputs, Tools, and OutputsDistribute Information– Inputs, Tools, and Outputs


Performance reports- Used to distribute project performance and status information, - Should be made available prior to project meetings, - Should be as precise and current as possible.


Communication methods Information distribution tools

- Hard-copy document distribution- Electronic communication and conferencing tools- Electronic tools for project management

Organizational process assets updates- Stakeholder notifications- Project reports- Project presentation- Project records- Feedback from

stakeholders- Lessons learned documentation


Manage Stakeholder ExpectationsManage Stakeholder Expectations It is the process of communicating and working with stakeholders to meet their needs and addressing issues, such as:

Actively managing the expectations of stakeholders Addressing concerns that have not become issues yet Clarifying and resolving issues that have been identified

Managing expectations helps to increase the probability of project success by ensuring that the stakeholders understand the project benefits and risks.


Manage Stakeholder Expectations – Inputs, Tools, and Manage Stakeholder Expectations – Inputs, Tools, and OutputsOutputs


strategy Project management plan Issue log Change log Organizational process

assets

Communication methods

Interpersonal skills Management skills


Change requests Project management

plan updates Project document

updates


Issue LogIssue Log

Used to document and monitor the resolution of issues. Used to facilitate communication and ensure a common understanding of issues.

Issue # IssueDate

AddedRaised

ByPerson

AssignedResolution Due Date

StatusDate

ResolvedResolution


Report PerformanceReport Performance It is the process of collecting and distributing performance information, including status reports, progress measurements, and forecasts.

Types of Performance Reports

The performance reporting process involves: Periodic collection and analysis of baseline versus actual data

Forecasting the project results

Simple Reports Elaborate Reports

- Performance information, such as percent complete, or status dashboards for each area(i.e., scope, schedule, cost, and quality)

- Analysis of past performance- Current status of risks and issues- Work completed during the period and to be completed next- Other relevant information which must be reviewed and discussed


Report Performance – Inputs, Tools, and OutputsReport Performance – Inputs, Tools, and Outputs

Project management plan Work performance information Work performance measurements Budget forecasts Organizational process assets

• Variance analysis• Forecasting

methods• Communication methods• Reporting systems

• Performance reports• Organizational process

assets updates• Change requests


Communications MethodsCommunications Methods


Report Performance – Tools and TechniquesReport Performance – Tools and Techniques

Forecasting Methods –The process of predicting future project performance based on the actual performance to date.

Classification of Forecasting Methods:

Time series methods – Use historical data as the basis for estimating future outcomes. Example, earned value, moving average, etc.

Casual/econometric methods – Use the assumption that it is possible to identify the underlying factors that might influence the variable that is being forecasted. Example, sale of umbrellas associated with weather conditions.

Judgmental methods – Incorporate intuitive judgements, opinions, and probability estimates. Example, composite forecasts, surveys, etc.

Other methods – Include simulation, probabilistic forecasting, and ensemble forecasting.


Tabular Performance Report SampleTabular Performance Report Sample


PROJECT PROCUREMENT MANAGEMENTPROJECT PROCUREMENT MANAGEMENT



Course Structure

Project Procurement Management

Introduction

Project Procurement Management – Introduction

Plan Procurements : Inputs, Tools, and Outputs

Plan Procurements

Administer Procurements

Administer Procurements : Inputs, Tools, and Outputs

Conduct Procurements

Conduct Procurements : Inputs, Tools, and Outputs

Close Procurements

Close Procurements : Inputs, Tools, and Outputs


Project Procurement Management – Project Procurement Management – IntroductionIntroduction


Project Procurement Management – IntroductionProject Procurement Management – Introduction The processes necessary to purchase or acquire products, services, or results needed

from outside the project team.

It includes the contract management and change control processes required to develop and administer contracts or purchase orders.

The organization can be either the buyer or seller of the products, services, or results of a project.


ContractContract A contract is a mutually binding agreement that obligates:

Seller to provide the specified products, services, or results.

Buyer to provide monetary or other valuable consideration.

It is a legal relationship subject to remedy in courts.

Legally binding nature of a contract usually means that it will be subjected to a more extensive approval process.

The project management team may seek support early from specialists in contracting, purchasing, law, and technical disciplines.

Continue…


ContractContract Depending upon the application area, the seller can also be called contractor,

subcontractor, or vendor, service provider, or supplier.

Depending on the buyer’s position in the project acquisition cycle, the buyer can be called a client, customer, prime contractor, contractor, acquiring organization, service requester, or purchaser.


Project Procurement Management ProcessesProject Procurement Management ProcessesProject Procurement Management processes includes:

Plan Procurements — process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers.

Conduct Procurements — process of obtaining seller responses, selecting a seller, and awarding a contract.

Administer Procurements — process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed.

Close Procurements — process of completing each project procurement.


Centralized vs. Decentralized ContractingCentralized vs. Decentralized ContractingCENTRALISED CONTRACTING DECENTRALISED CONTRACTING

Advantages Increased expertise in

contracting. Standardized company

practices. Contracting professional have a

clearly defined career path. Dept will provide its employees

training/shared knowledge for continuous improvement.

Disadvantages Contracting help may be difficult

to obtain as & when needed. Contract person may be shared

by different projects

Advantages Easier access to contracting

expertise. Loyalty to the project. More focused contracting

experience.

Disadvantages No Home Department for contract

person, after project is completed. Difficult to maintain high level of

contracting expertise. Lack of standardization & replication

of efforts.


Project Manager’s Role in ProcurementProject Manager’s Role in Procurement

In procurement, the Project Manager should:

Know the procurement process. Understand contract terms and conditions. Make sure the contract contains all Project Management Requirements

(Attendance at meeting, reporting, communication etc.) Identify risks and incorporate mitigation and allocation of risks into the

contract. Help tailor the contract to the unique needs of the project. Incorporate schedule for procurement process into the schedule for the project. Be involved during contract negotiations to protect relationship with the seller

and protect the integrity of the project. Uphold the entire contract (Not just the contract statement of work). Work with the Contract Manager to manage changes to the contract.


Plan ProcurementsPlan Procurements


Plan ProcurementsPlan Procurements

The process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers.

This process involves determining:


Plan Procurement – Inputs, Tools, and OutputsPlan Procurement – Inputs, Tools, and Outputs

Scope baseline- Scope statement, WBS, and WBS dictionary

Requirements documentation Teaming agreements Risk register Risk-related contract decisions Activity resource requirements Project schedule Activity cost estimates Cost performance baseline Enterprise environmental factors Organizational process assets

Make-or-buy analysis

Expert judgment Contract types

Procurement management plan

Procurement statements of work

Make-or-buy decisions

Procurement documents

Source selection criteria

Change requests


Plan Procurements Data Flow DiagramPlan Procurements Data Flow Diagram



Plan Procurement – InputsPlan Procurement – Inputs

Requirements documentation include:

Important information about project requirements that is considered during planning for procurements. Requirements with contractual and legal implications that may include health, safety, security

Teaming agreements:

Teaming agreements are legal contractual agreements between two or more entities to form a partnership or joint venture, or some other arrangements as defined by the parties.

Teaming agreement ends with the ending of new business opportunity.


Make-or-Buy Analysis Make-or-Buy Analysis A general management technique used to determine whether particular work can

best be accomplished by the project team or must be purchased from outside sources.

Budget constraints may influence make-or-buy decisions.

The analysis includes both indirect as well as direct costs.


Contract Types Contract Types The risk shared between the buyer and seller is determined by the contract type.

Types of Contract

Fixed-price Contracts Cost-reimbursable Contracts

Time and MaterialContracts (T&M)

Continue…


Fixed-price Contracts

Fixed Price Incentive FeeContract (FPIF)

Fixed Price with EconomicsPrice Adjustment Contract

(FP- EPA)

Firm Fixed Price Contract(FFP)

Examples

Contract = $1,100,000

Contract = $1,100,000. For every monthearly the project is finished, an

additional $10,000 is paid to the seller.

Contract = $1,100,000, but a price increase will be allowed in year two

based on the U.S. Consumer Price Index report for the year one.

Contract = the contract price is $1,100,000 but a price increase will be

allowed in year two to account for increases in specific material costs.


Examples

Contract = Cost plus a fee of $1,100,000

Contract = Cost plus $5,000 for every month production exceeds 100,000 units.

Maximum award available is $50,000.

Contract = Cost plus an award fee (to be determined) for each deliverable completed at least 7 days early.

Cost-reimbursable Contracts

Cost Plus Fixed FeeContracts (CPFF)

Cost Plus Award FeeContracts (CPAF)

Cost Plus Incentive FeeContracts (CPIF)

Continue…

Cost Plus Percentage of Cost Contracts (CPPC)

X -- 10 X - Y -- 20X + Y -- 5


Example

Contract = $100 per hour plus expenses or materials at cost.

Contract = $100 per hour plus materials at $5 per linear meter of wood.

Time and MaterialContracts (T&M)


Risk and Contract Types Risk and Contract Types


Describes how the procurement process will be managed from developing procurement documents through contract closure. This includes:

Procurement Management Plan

Plan Procurement – OutputsPlan Procurement – Outputs

Types of contracts to be used Risk management issues Whether independent estimates will be used and if they are needed as evaluation criteria; Managing multiple suppliers; Coordinating procurement with other project aspects, such as scheduling and performance reporting Constraints and assumptions that could affect planned procurements Establishing the form and format to be used for the procurement/contract statements of work Identifying prequalified sellers Procurement metrics to manage contracts and evaluate sellers. Handling the make-or-buy decisions and linking them into the Estimate Activity Resource and Develop Schedule processes Identifying requirements for performance bonds or insurance contracts to mitigate some forms of project risk Establishing the direction to be provided to the sellers on developing and maintaining a work breakdown structure (WBS)


A Procurement Management Plan can be: Formal or informal Highly detailed or broadly framed Based upon the needs of each project


Procurement Statements of workProcurement Statements of work

The statement of work (SOW) for each procurement is developed from the project scope baseline and defines only that portion of the project scope that is to be included within the related contract.


Common terms for different types of procurements include: Request for information (RFI), Invitation for bid (IFB), Request for proposal (RFP), Request for quotation (RFQ), Tender notice, Invitation for negotiation, and Invitation for seller’s initial response

Procurement DocumentsProcurement Documents


Source Selection CriteriaSource Selection Criteria

Selection criteria are often included as a part of the procurement documents.

Such criteria are developed and used to rate or score seller proposals, and can be objective or subjective.



Source Selection Criteria, examples:Source Selection Criteria, examples: Understanding of need Overall or life-cycle cost Technical capability Risk Management approach Technical approach Warranty Financial capacity Production capacity and interest Business size and type Past performance of sellers References Intellectual property rights Proprietary


Conduct ProcurementConduct Procurement


Conduct ProcurementsConduct Procurements

The process of obtaining seller responses, selecting a seller, and awarding a Contract.

The team will receive bids or proposals and will apply previously defined selection criteria to select one or more sellers who are qualified to perform the work and acceptable as a seller.


Conduct Procurements – Inputs, Tools, and OutputsConduct Procurements – Inputs, Tools, and Outputs

Project management plan Procurement documents Source selection criteria Qualified seller list Seller proposals Project documents Make-or-buy decisions Teaming agreement Organizational process

assets

Bidder conferences Proposal evaluation techniques Independent

estimates Expert judgment Advertising Internet search Procurement

negotiations

Selected sellers Procurement contract

award Resource calendars Change requests Project management


updates


Conduct Procurements Data Flow DiagramConduct Procurements Data Flow Diagram



Conduct Procurements – Tools and TechniquesConduct Procurements – Tools and Techniques Bidder Conferences (also called as contractor, vendor, and pre-bid conferences)

- meetings with sellers and buyers prior to submission of a bid or proposal- these conferences used to ensure that:

- prospective sellers have a clear and common understanding of the procurement (technical and contractual requirements)- no bidders receive preferential treatment- incorporation of responses on questions into the procurement documents as amendments- sellers hear every question from each seller and answers from the buyer


Administer ProcurementsAdminister Procurements


Administer ProcurementsAdminister Procurements The process of managing procurement relationship, monitoring contract

performance, and making changes and corrections as needed.

Due to varying organizational structures, many organizations treat contract administration as an administrative function separate from the project organization.

While a procurement administrator may be on the project team, this individual typically reports to a supervisor from a different department.


Administer ProcurementsAdminister Procurements

Project Management Processes that apply to Contractual relationship include:

Direct & Manage Project Execution – to authorize the seller’s work at the appropriate time

Report Performance – to monitor contract scope, cost, schedule, and technical performance

Perform Quality Control – to inspect and verify the adequacy of the seller’s product

Perform Integrated Change Control – to assure that changes are approved and conveyed to all the concern people

Monitoring and Control Risk – to ensure that risks are mitigated


Administer Procurements – Inputs, Tools, and OutputsAdminister Procurements – Inputs, Tools, and Outputs

Procurement documentsProject management planContractPerformance reportsApproved change

requestsWork performanceinformation

Contract change controlsystem Procurement

performance reviews Inspections and audits Performance reporting Payment systems Claims administration Records management

system

Procurement documentationOrganizational process assets updatesChange requestsProject management

plan updates


Administer Procurements Data Flow DiagramAdminister Procurements Data Flow Diagram



Close ProcurementsClose Procurements


Close ProcurementsClose Procurements

The process of completing each project procurement.

It also involves administrative activities such as:- Finalizing open claims,- Updating records to reflect final results

and - Archiving such information for future use

Unresolved claims may be subjected to litigation after Contract Closure.

The contract terms and conditions can prescribe specific procedure for Contract Closure.


Close Procurements – Inputs, Tools, and OutputsClose Procurements – Inputs, Tools, and Outputs

Project management plan Procurement documentation

Procurement audits Negotiated settlements Records management system

Closed procurements Organizational process

assets updates


Close Procurements Data Flow DiagramClose Procurements Data Flow Diagram



Close Procurements – Tools and TechniquesClose Procurements – Tools and Techniques

Procurement audits

Is a structured review of the procurement process originating from the Plan Procurement process through Administer Procurements.

Objective – to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project or other projects within the performing organization.


PROJECT RISK MANAGEMENTPROJECT RISK MANAGEMENT


Course StructureProject Risk Management

Introduction

Project Risk Management – Introduction

Plan Risk Management : Inputs, Tools, and Outputs

Plan Risk Management

Perform Qualitative Risk Analysis

Perform Qualitative Risk Analysis : Inputs, Tools, and Outputs

Identify Risks

Identify Risk : Inputs, Tools, and Outputs

Perform Quantitative Risk Analysis

Perform Quantitative Risk Analysis : Inputs, Tools, and Outputs

Plan Risk Responses

Plan Risk Response : Inputs, Tools, and Outputs

Monitor and Control Risks

Monitor and Control Risks : Inputs, Tools, and Outputs


Project Risk Management – IntroductionProject Risk Management – Introduction

Project Risk is an uncertain event or condition. If it occurs, it has a positive or negative effect on at least one project objective ( i.e. Time, Cost, Scope or Quality). Project Risk is always in future

A risk may have one or more causes and if it occurs, one or more impacts.

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Some examples of areas of uncertainty are since we fail to:

Understand who the project is for Appoint an executive user responsible for sponsoring the project Appoint a fully qualified and supported project manager Define the objectives of the project Secure commitments from people who are needed to assist with the project Estimate costs accurately Specify very precisely the end users' requirements

Project Risk Management – IntroductionProject Risk Management – Introduction

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Project Risk ManagementProject Risk Management

Risk conditions could include aspects of the project’s or organization’s environment, such as:

Poor project management practices.

Lack of integrated management system.

Concurrent multiple projects.

Dependency on participants not under control,

etc.

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Risk Process Overview Risk Process Overview


Project Risk Management - ProcessesProject Risk Management - Processes


ProcessProcess - Plan Risk Management - Plan Risk Management

The process of deciding to approach and conduct risk management activities for a project.

It ensures that level, type and visibility of risk management are commensurate with

Risks and Importance of the project to the organization.

It also ensures that: Sufficient resources and time are provided to manage

risks. There is agreed upon basis for evaluating risks.


Plan Risk Management – Inputs, Tools, and Plan Risk Management – Inputs, Tools, and OutputsOutputs

Project scope statement

Cost management plan Schedule management

plan Communications

management plan Enterprise

environmental factors Organizational process

assets

Planning meetings and analysis Risk management plan


Plan Risk ManagementPlan Risk Management

Plan Risk Management includes the following:

Methodology (Approach, tools & data sources)

Roles and Responsibilities

Budgeting (Cost for the risk management processes)

Timing (How & when the Risk Management activities will be performed throughout

the project lifecycle).

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Plan Risk ManagementPlan Risk Management

Risk Categories (Risk Breakdown Structure (RBS))

Definition of Risk Probability Levels and Impact Levels

Probability and Impact Matrix

Stakeholder Risk Tolerances

Reporting Formats (Content & Format of Risk Register)

Risk Tracking Mechanism


Risk Breakdown Structure Risk Breakdown Structure (As per PMBOK(As per PMBOK ® Guide) Guide)


Impact Levels Impact Levels (As per PMBOK(As per PMBOK® Guide) Guide)


Probability and Impact Matrix Probability and Impact Matrix (As per PMBOK(As per PMBOK® Guide) Guide)


Questions to be Addressed in a Plan Risk Management

Why is it important to take/not take this risk in relation to the project objectives?

What is the specific risk, and what are the risk mitigation deliverables?

How is the risk going to be mitigated? (What risk mitigation approach is to be used?)

Who are the individuals responsible for implementing the risk management plan?

When will the milestones associated with the mitigation approach occur?

How much is required in terms of resources to mitigate risk?


Plan Risk Management Data Flow DiagramPlan Risk Management Data Flow Diagram


Process Process - Identify Risks- Identify Risks

It determines which risks might effect the project and documents their characteristics.

All project personnel should be encouraged to identify risks.

Iterative process - new risks may become known as the project progresses through its life cycle.

Risk Identification Qualitative Risk Analysis

Quantitative Risk Analysis

Methods for prioritizing identified risks


Identify Risks – Inputs, Tools, and OutputsIdentify Risks – Inputs, Tools, and Outputs

Risk management plan Activity cost estimates Activity duration estimates Scope baseline Stakeholder register Cost management plan Schedule management

plan Quality management plan Project documents Enterprise environmental


assets

Documentation reviews Information gathering

techniques Checklist analysis Assumptions analysis Diagramming techniques SWOT analysis Expert judgment

Risk register


Identify Risks – Tools and TechniquesIdentify Risks – Tools and Techniques

Documentation reviews

Risk information gathering techniques. (Brainstorming, Delphi, Interviewing, Root Cause Identification)

Checklist Analysis

Assumptions Analysis

Diagramming techniques (Cause–and- Effect Diagram, Process Flow Charts, System Flow Charts, Influence Diagrams)


Risk RegisterRisk Register

The primary output of risk identification and is a component of the Project Management Plan.

Contents of Risk Register

List of

identified risks

List of

potential responsesRoot causes of risk

Updated risk categories


Identify Risks Data Flow DiagramIdentify Risks Data Flow Diagram


Process Process - Perform Qualitative Risk Analysis- Perform Qualitative Risk Analysis

The specific objectives of perform qualitative risk analysis are:

Subjectively evaluate the probability and impact of each risk.

Create a starter list of risks by determining the critical or top risks that you will quantify further.

Go / No- Go decision (having evaluated the risks, do we still want to do this project).


Perform Qualitative Risk AnalysisPerform Qualitative Risk Analysis

Beginning in qualitative risk analysis, the project team relies on the data about risk acquired in risk identification

(Data Precision ranking : “how well understood is the risk”). It should include analysis of the following:

Extent of understanding of the risk.

Data available about the risk.

Reliability and Integrity of the data.


Perform Qualitative Risk Analysis – Inputs, Perform Qualitative Risk Analysis – Inputs, Tools, and OutputsTools, and Outputs

Risk register Risk management plan Project scope statement Organizational process

assets

Risk probability and impact

assessment Probability and impact matrix Risk data quality assessment Risk data categorization Risk urgency assessment Expert Judgement

Risk register updates


Tigers - High Probability, High Impact. These are dangerous animals and must be neutralized as soon as possible.

Alligators - Low Probability, High Impact. These are dangerous animals which can be avoided with care.

Puppies - High Probability, Low Impact. We all know that delightful pup will grow into an animal which can do damage, but a little training will ensure that not too much trouble ensures.

Kittens - Low Probability, Low Impact. The largest cat is rarely the source of trouble, but on the other hand a lot of effort can be wasted on training it!


Perform Qualitative Risk Analysis Data Flow DiagramPerform Qualitative Risk Analysis Data Flow Diagram


ProcessProcess - Perform Quantitative Risk Analysis - Perform Quantitative Risk Analysis

The specific objectives of perform quantitative risk analysis include:

Numerically evaluating probability and impact of each risk.

Determining the level of risk the project currently has and whether that level of risk is acceptable for the expected gain from the product of the project.

Determining the probability of cost or schedule objectives for the project.


Perform Quantitative Risk Analysis – Inputs, Perform Quantitative Risk Analysis – Inputs, Tools, and OutputsTools, and Outputs

Risk register Risk management plan Cost management plan Schedule management plan Organizational process assets

Data gathering and representation techniques

Quantitative risk analysis and modelling techniques

Expert judgement

Risk register updates


Perform Quantitative Risk Analysis – Tools and Perform Quantitative Risk Analysis – Tools and TechniquesTechniques

Data Gathering and Representation Techniques Interviewing

Range of Project Cost Estimates Collected During the Risk Interview


Perform Quantitative Risk AnalysisPerform Quantitative Risk Analysis

Commonly used techniques in perform quantitative risks analysis include:

Sensitivity Analysis

Decision Tree Analysis

Expected Monetary Value Analysis (EMV)

Modeling and Simulation


Sensitivity AnalysisSensitivity analysis helps to determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. One typical display of sensitivity analysis is the tornado diagram, which is useful for comparing relative importance and impact of variables that have a high degree of uncertainty to those that are more stable.

R1

R2

R3

R4

R5


Diagrams that show the sequence of interrelated decisions and the expected results of choosing one alternative over the other.

Let’s take an example of a company which is trying to decide whether an e-learning prototyping is worthwhile on the project. The impact of whether the equipment works or fails is shown in the diagram below. As per the information provided in the diagram, what is the expected monetary value of your decision?

Failure: 35% probability and $120,000impact

Failure: 70% probability and $450,000 impact

Pass: No impactDo not e-learning prototype:Setup cost $0

Pass: No impact

E-learning Prototype:Setup cost $200,000

Decision Tree Analysis


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Calculated by multiplying the probability of the risk times its impact and thenadding them together. Positive results indicate opportunities and negative generally indicate threat to the project.

EMV = P x I (where, P = Probability and I = Times Impact)




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Airline A(20% * Rs. 50,000 = Rs. 10,000) + (80% * Rs. 0 = Rs. 0) + Rs. 9,000 = Rs. 19,000

Airline B(40% * Rs. 50,000 = Rs. 20,000) + (60% * Rs. 0 = Rs. 0) + Rs. 3,000 = Rs. 23,000



Modeling and SimulationA project simulation uses a model that translates the specified detailed uncertainties of the projectinto their potential impact on project objectives. Iterative simulations are typically performed usingthe Monte Carlo technique. In a simulation, the project model is computed many times (iterated), with the input values (e.g., cost estimates or activity durations) chosen at random for each iteration from the probability distributions of these variables.


Perform Quantitative Risk Analysis Data Flow Perform Quantitative Risk Analysis Data Flow DiagramDiagram


Process Process - Plan Risk Responses- Plan Risk Responses

It involves arriving at strategy or mix of strategies most likely to be effective for each risk.

Primary and Back-up strategy may be selected.

A Fall back plan can be developed if the selected strategy does not turn to be fully effective or if an accepted risk occurs.

Contingency plan can be developed, along with identification of conditions that trigger their execution.


Plan Response Responses – Inputs, Tools, Plan Response Responses – Inputs, Tools, and Outputsand Outputs

Risk register Risk

management plan

Strategies for negative risks or threats

Strategies for positive risks or opportunities

Contingent response strategy Expert judgement

Risk register updates Risk-related

contractual agreements




Plan Risk Responses - StrategiesPlan Risk Responses - Strategies


Plan Response Responses Data Flow DiagramPlan Response Responses Data Flow Diagram


ProcessProcess - Monitoring and Control Risks - Monitoring and Control Risks

Project work should be continuously monitored for new and changing risks.

Monitoring and Control Risks involves:

Identifying, analyzing and planning for newly arising risks. Keeping track of identified risks and those on the watch list. Monitoring trigger conditions for contingency plans. Monitoring residual risks. Reviewing the execution of risk responses.


Residual Risk, Secondary Risk & WorkaroundResidual Risk, Secondary Risk & Workaround

Residual Risk A risk that remains after risk responses have been implemented.

Secondary Risk A risk that arises as a direct result of implementing a risk response.

Workaround A response to a negative risk that has occurred. Distinguished from contingency plan in that a workaround is not planned in advance of the occurrence of the risk event.


Monitoring & Control Risks– Inputs, Tools, Monitoring & Control Risks– Inputs, Tools, and Outputsand Outputs

Risk register Project management

plan Work performance

information Performance reports

Risk reassessment Risk audits Variance and trend

analysis Technical performance

measurement Reserve analysis Status meetings

Risk register updates Organizational

process assets updates



updates


Risk AuditsRisk Audits

Risk Audits examine and document effectiveness of risk responses in dealing with:

Identified risks and their root causes and

Effectiveness of the risk management Process


Monitor and Control Risks Data Flow DiagramMonitor and Control Risks Data Flow Diagram


PROJECT QUALITY MANAGEMENTPROJECT QUALITY MANAGEMENT



Course Structure

Project Quality Management

Introduction

Project Quality Management – Introduction

Plan Quality : Inputs, Tools, and Outputs

Plan Quality

Perform Quality Control

Perform Quality Control : Inputs, Tools, and Outputs

Perform Quality Assurance

Perform Quality Assurance : Inputs, Tools, and Outputs


Project Quality Management – IntroductionProject Quality Management – Introduction


Project Quality Management - IntroductionProject Quality Management - Introduction

The Project Quality Management processes include:

Plan Quality – process of identifying quality requirements and/or standards for the project and product and documenting how the project will demonstrate compliance.

Perform Quality Assurance – process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.

The processes and activities of the performing organization that determine quality policies, objectives, and responsibilities to satisfy the project needs.

Perform Quality Control – process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.


Product Quality vs. Project QualityProduct Quality vs. Project Quality

Project quality management addresses the management of project and product of the project and applies to all projects, regardless of the nature of their product.

Product quality measures and techniques are specific to the type of product produced by the project.

Failure to meet product or project quality requirements can have serious negative consequences for any or all of project stakeholders, which may lead to:

Employees attrition Errors Rework


Quality vs. GradeQuality vs. Grade Quality is the degree to which a set of inherent

characteristics fulfill requirements (Customer, Project).

Grade is a category assigned to products or services having the same functional use but different technical characteristics.

Low quality is always a problem; low grade may not be.

Project Manager and Project Management Team are responsible for determining and delivering the required level of both quality and grade. Quality and Grade are not the same


Precision vs. AccuracyPrecision vs. Accuracy Precision and Accuracy are not equivalent.

Precision – The values of repeated measurements are clustered and have little scatter. (not necessarily accurate)

Accuracy – The measured value is very close to the true value. (not necessarily precise)

The Project Management Team must determine, how much accuracy or precision or both are required.


Modern Quality ManagementModern Quality Management

Complements project management as both recognize the importance of:

Customer Satisfaction

Prevention over Inspection

Continuous Improvement

Management Responsibility

Process improvement models include Malcolm Baldrige, OPM3® CMMI®.


Control Limits vs. ToleranceControl Limits vs. Tolerance

Control Limits: are the limits within which the variation of the process is permitted and are determined by the organization’s quality standard.

Tolerance: The result is acceptable if it falls within the range specified by the tolerance.


Process Process - Plan Quality - Plan Quality

The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance.

This process should be performed in parallel with the other project planning processes.

E.g. Proposed changes in the product to meet identified quality standards may require cost or schedule adjustments and a detailed risk analysis.


Plan Quality – Inputs, Tools, and OutputsPlan Quality – Inputs, Tools, and Outputs

Scope baseline Stakeholder register Cost performance

baseline Schedule baseline Risk register Enterprise environmental


assets

Cost benefit analysis Cost of quality Control charts Benchmarking Design of experiments Statistical sampling Flowcharting Proprietary quality

management methodologies

Additional quality planning tools

Quality management plan

Quality Metrics Quality checklists Process improvement

plan- Process boundaries- Process configuration- Process metrics- Targets for improved

performance



Plan Quality – InputsPlan Quality – Inputs

Quality Policy

Quality Policy

Either Or

By PerformingOrganization

By Project ManagementTeam

Project should have a Quality Policy.


Plan Quality – Tools and TechniquesPlan Quality – Tools and Techniques

Cost-Benefit analysis Cost of quality Control charts Benchmarking Statistical sampling Design of experiments Flowcharting Proprietary quality management methodologies Additional quality planning tools


Plan Quality – OutputsPlan Quality – Outputs

Quality Management Plan: Describes how the project management team will

implement the performing organization's quality policy.

Quality Metrics: An operational definition that describes, in very specific

terms, a project or product attribute and how the quality control process will measure it.

Quality Checklists: A structured toll, usually component-specific,

used to verify that a set of required steps has been performed.

Quality checklists are used in the quality control process

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Plan Quality – OutputsPlan Quality – Outputs

Process improvement Plan: A subsidiary of the project management plan. Details the steps for analyzing processes to

identify activities which enhance their value. Areas to consider include:

Process boundaries Process configuration Process metrics Targets for improved performance

Project Document Updates: Stakeholder register Responsibility Assignment Matrix


Plan Quality Data Flow DiagramPlan Quality Data Flow Diagram



Process Process - Perform Quality Assurance- Perform Quality Assurance

Perform Quality Assurance is the process of

Perform Quality Assurance also provides an umbrella for continuous process improvement, which Is an iterative means for improving the quality of all processes.

auditingQuality requirements

Results from quality control measurements

To ensure appropriate quality standards and operational definitions are used.

Perform Quality Assurance is an execution process that uses data created during Perform Quality Control.


Performance Quality Assurance – Inputs, Tools, Performance Quality Assurance – Inputs, Tools, and Outputsand Outputs

Project management plan- Quality management plan- Process improvement plan

Quality metrics Work performance information Quality control measurements

Plan Quality and Perform Quality Control tools and techniques

Quality audits Process analysis




updates


Perform Quality Assurance – Tools and TechniquesPerform Quality Assurance – Tools and Techniques

Quality Audits It is a structured, independent review to determine whether project

activities comply with organizational and project policies, processes, and procedures.

The objectives of a quality audit are: Identify all the good/best practices being implemented and all the gaps/shortcomings Share the good practices introduced or implemented in similar projects Proactively offer assistance in a positive manner to improve implementation of

processes to help the team raise productivity Highlight contributions of each audit in the lessons leaned repository of the

organization

They can confirm the implementation of approved change requests including: Corrective actions Defect repairs Preventive actions

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Perform Quality Assurance – Tools and Perform Quality Assurance – Tools and TechniquesTechniques

Process Analysis Follows the steps outlined in the process improvement plan to

identify needed improvements

Process analysis includes root cause analysis -

A specific technique to identify a problem

Discover the underlying causes that lead to it

Develop preventive actions


Performance Quality Assurance Data Flow DiagramPerformance Quality Assurance Data Flow Diagram



Process Process - Perform Quality Control- Perform Quality Control

The process of monitoring and recording results of executing the quality activities to: Assess performance Recommend necessary changes

Quality control activities identify: Causes of poor process or product quality Recommend and/or take action to eliminate them

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Perform Quality ControlPerform Quality ControlKey Terminologies

Statistical Quality Control – Especially sampling and probability, to help evaluate quality control outputs

Prevention – Keeping errors out of the process Inspection – Keeping errors out of hands of the customer

Attribute Sampling – The results either conforms or does not conform Variables Sampling – The result is rated on a continuous scale that measures the degree of conformity


Perform Quality Control – Inputs, Tools, and OutputsPerform Quality Control – Inputs, Tools, and Outputs


Quality metrics Quality checklists Work performance

information Approved change

requests Deliverables Organizational process

assets

Cause and effect diagram

Control charts Flowcharting Histogram Pareto chart Run chart Scatter diagram Statistical

sampling Inspection Approved change

requests review

Quality control measurements Validated changes Validated deliverables Organizational process assets

updates Change requests

- if the recommended corrective or preventive actions or a defect repair requires a change to the project management plan, a change request should be initiated in accordance with the defined Perform Integrated Change Control

Project management plan updates Project document updates


Ishikawa’s seven basic tools of quality:

Cause and Effect Diagram

Histogram

Pareto Chart

Run Chart

Scatter Diagram

Control Charts

Flowcharting

Statistical Sampling

Inspection

Approved Change Requests

Review

Perform Quality Control – Tools and TechniquesPerform Quality Control – Tools and Techniques


Quality TheoriesQuality Theories

Joseph Juran: • Developed the 80/20 principle.• Advocated Top Management involvement.• Defined Quality as “fitness for use”.

W. Edwards Deming:• Developed 14 steps to quality management• Advocated Plan - Do – Check - Act cycle for quality

improvement.

Philip Crosby:• Popularized the concept of cost of poor quality.• Advocated prevention over inspection & “zero defects”.• He believed quality is “Conformance to requirements”.


Perform Quality Control Data Flow DiagramPerform Quality Control Data Flow Diagram


pmp preparatory material

Documents

project scope

project progress

schedule tools

schedule status

viable schedule

milestone schedule

master schedule

detailsproject schedule