project control management content

8/18/2019 Project Control Management Content

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Participant s Notes:

Project Execution and Control Getting Started

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Introductions

Please write your name on the name tentprovided.

When the instructor calls on you, please stateyour name, and then briefly describe yourbackground or current job assignment andyour education, training or experience inproject management.

Also, please share at least one interest thatyou have outside of work.


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• You will be given information pertainingto the location of restrooms and

scheduled breaks.

• Be aware of the location of exits for yourown safety in the event of anemergency. Your instructor may give youspecific instructions if necessary.

• Please turn off cell phones and pagers.

• Please refrain from using e-mail duringclass time; check e-mail only duringbreaks.

• To get the most out of this class, youractive participation is encouraged.


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Each module builds upon the knowledge,skills, and techniques you learn in the prior

modules, so by the end of the course, you willhave a complete understanding of this coursecontent.


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Please review the course goal within thecontext of your work environment.


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Please review the objectives. By doing so, youwill be able to focus your attention on the

areas that this course is intended to address.


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We may have a wide variety of startingexperience and knowledge in this classroom.

Be willing to contribute where you havespecific knowledge and experience.


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You can expect each module to flow asfollows:

• A module overview is presented, andlearning objectives are outlined.

• Concepts, tools, and techniques areintroduced, and exercises are integratedto support learning points.

• The module is reviewed, and youll havean opportunity to ask additionalquestions.

• A learning journal is provided at the endof each module, so you can make note ofyour insights, and how you might apply

them to your own projects.

We invite you to contribute your comments,questions, and observations as they occur,during question opportunities and duringbreaks.


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This discussion will be used as a backgroundto anchor the course in the real world.

Solving the problems and resolving the issues,within the learners scope of control andinfluence, becomes the motivation for theremainder of the class.

It also sets the expectations each learner hasfor the course.

Please take a moment to think about and listyour expectations to share with the class.


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Project Execution and Control Foundation Concepts

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*Materials in this class are substantiallyaligned with the Project Management Institute

(PMI)®, A Guide to the Project ManagementBody of Knowledge (PMBOK ® Guide ) – FifthEdition, Project Management Institute, Inc.,2013.

PMI®s standards and certifications arerecognized on a global scale.


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Some examples of single-release products are:

• Buildings• Consulting services

Examples of multiple-release products are:

• IT applications

• Consumer electronics

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The 42 project management processes aregrouped into five categories known as the

Project Management Process Groups.

Not all of the real world interactions amongthe Process Groups and Knowledge Areaprocesses can be documented, however, wewill look at a summary of the discreteprocesses and how they generally worktogether in delivering projects.


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The Project Management StandardsFramework clearly lays out the typical

landscape of a projects journey.

Note the emphasis on Planning andControlling. Although not necessarily moreimportant than the other process groups,most practitioners agree that it is in theseprocesses where the Project Manager has thegreatest opportunity to impact projectperformance. And if they had to choose theone most critical group, most would sayPlanning.

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This exercise will be conducted either as a fullclass activity or as a break-out session with

groups of up to 5 people.


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Use the chart to rank project managementissues.

• Rank each issue on a scale of 1 (low) to5 (high) with regard to both frequencyand criticality.

• Discuss the differences and come to aclass or group consensus on the top 3 - 5issues.

• Identify project management tools andtechniques that may address these topissues.

• Consider two or three areas where youfeel you need to perform better on your

projects.

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This event will be conducted as an openforum, inviting contributions from all

participants.

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Moving learners from reactive to proactivebehaviors is one of the primary goals of this

learning experience. The traditional conceptof triple constraints, along with its moreupdated persona called competingdemands, provides exactly what we need!


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Project Management theory has alwaysrecognized that, in order for a project to be

successful, the project manager has tobalance multiple competing factors, or projectdrivers.

Traditionally, the demands were known as thetriple constraints (depicted on this slide tothe left). Those triple constraints varied,depending on the practitioner discussing them(e.g., schedule, scope, cost – schedule,performance, cost, etc.). Later the listexpanded to six competing demands.

PMBOK ® Guide – Fifth Edition recognizes sixcompeting constraints

that need to bebalanced and prioritized by the project

manager in order to maximize the probabilityof achieving project success.

- PMBOK ® Guide – Fifth Edition, p. 47


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This event will normally be conducted ingroups of 3 or 4 people in break-out sessions,

with a class debrief to follow.

An alternative approach, as classroom timingdictates, this event can be conducted as a fullclass activity.

You may use the worksheet on the next slideto record your discussions.



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Use this worksheet to record your groupsdeliberations.


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A project life cycle (PLC)…

Is a collection of project phases:

• Generally sequential

• Sometimes overlapping

• Sometimes Iterative (Agile, Spiral, Rapid Prototyping)

• Sometimes Phased (Large Systems Development)

Differentiates its phases by name and number as determined by:

• Management and control needs of the organization

• Nature of the project

• Projects area of application

There are many similar versions of PLCs, which may vary by (but are not limited to):• Organization

• Industry

• Technology

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Each phase review is a decision point – Go/NoGo.

Evaluate:

• Compliance with program objectives

• Internal and external environmentalchanges

• Critical performance metrics

• Progress to schedule

• Projected cost, margin, revenue, life-cyclecost, etc.

• Deliverables for requirements compliance

Use a standard set of questions to facilitatethese decision points.


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Project Execution and Control Scope Management

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Review these performance-based learningobjectives carefully.

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The Work Request is the first document usedin beginning the requirements definition

process. It outlines the business need for theproject, along with objectives. It identifies thecustomer audience and begins to defineassumptions and constraints for the project.

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The Project Proposal is created to gain a high-level understanding of the project. It provides

a general idea of the scope of the project,which is derived from the RequirementsOverview document. It provides backgroundon the business case for the project, as wellas a preliminary assessment of the risks forthe project. An idea is given of the projectduration and identified constraints andassumptions are documented.

This document may also be used as a basisfor comparing competed projects in the overallproject governance process.

Business Case – A documented economicfeasibility study used to establish validity ofthe benefits of a selected component lackingsufficient definition and that is used as a basisfor the authorization of further projectmanagement activities.

PMBOK ® Guide – Fifth Edition, Glossary

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Develop Project Charter – The process ofdeveloping a document that formally authorizes the

existence of a project and provides the projectmanager with the authority to apply organizationalresources to project activities.


Charters normally include:

• Project description

• Business need for project

• Product description – key deliverables, ifknown

• Objectives/constraints – cost and schedule

• Project scope (inclusions and exclusions)

• Key stakeholders and roles• Project manager’s authority and responsibility

• Risks

• Assumptions

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The preliminary scope statement generallyprovides the project stakeholders with

information about why the project wasselected, a summary of the product, service,or result that will be delivered at thecompletion of the project, a summary-levelexplanation of major deliverables, and theproject objectives that have been established.

The project objectives will be easier tovalidate upon completion if they are clear andmeasurable.

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Business objectives are the reasons forperforming the project. For example, reducing

cost, eliminating errors, etc. Because ITprojects are often embedded in a higher orderproject (e.g., business process redesign ordevelopment of a new product or service forsale to customers), IT professionals need toaddress business issues.

Project (technical) objectives define theproduct or the physical outcome of theproject, by a given date, for a given cost. Theproject objective is a means to the end of thebusiness objective. This information is beingasked for in the Project Request.

Phase, Activity, or Task objectives are thespecific outcome of the performance of a taskwithin the project. These objectives areassociated with specific task deliverables.They contribute cumulatively to the projectobjectives.

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The CHAOS Report produced by The StandishGroup International (1995) indicates that the

major reasons that information technologyprojects are behind schedule and over budgetis due mainly to incomplete or changingrequirements or the quality of the customerrelationship.

But before we can define detailedrequirements, we need to start with theobjectives defined in the project charter, asdefined in the previous module. For there, weneed to confirm the deliverables in the scopestatement also developed in Initiating (but willbe covered here in this module), describe the

work it will take to achieve those deliverables(WBS), then write the detailed requirements,with possibly several iterations before we havea baseline document. Let’s look at how thiscritical process plays out.

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Product Scope

• The features and functions thatcharacterize a product, service, orresult.*

• High-level product scope sets theframework for subsequent requirementsdevelopment activities.

Project Scope

• The work performed to deliver a product,service, or result with the specifiedfeatures and functions.*

• High-level project scope becomes part ofthe scope baseline for the project

*PMBOK ® Guide – Fifth Edition, Glossary

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Development of a detailed scope statements iscrucial for successful project outcome. As

major deliverables are defined, constraintsand assumptions are documented. Thisprovides for clear direction as the project isinitiated.

Scope definition subdivides the major projectdeliverables into smaller, more manageablecomponents. This will assist in developingmore accurate cost, duration, and resourceestimates.

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At this point, the team continues to workthrough the tools and techniques, iteratively

refining and progressively detailing the scopeuntil the baseline scope statement is created.

Develop 20–30 questions, using the keywords, to enhance the discovery process.

There are multiple levels of detail to provideclear understanding of the product, service orresults desired.

Use diagrams and graphic representations tosupport the written descriptions of thedeliverables.

An example of the graphics and diagramsmight be for an internal process improvementproject, a picture of the “as is” state based oncorporate dashboard results with a descriptionof the “to be” end result expected as a projectoutcome.

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Business objectives drive the project; theyprovide the measures of ultimate project

success. What happens if business objectivesare unclear? Project objectives are the meansto the end of business objectives. Whathappens if project objectives are unclear?

Requirements and scope managementtransfers knowledge from the users andcustomers to the product developers and theproject team. This facilitates effective decisionmaking by both clients and seniormanagement.

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Scope Management Plan – a component ofthe project or program management plan that

describes how the scope will be defined,developed, monitored, controlled, and verified.

Project Scope Management – includes theprocesses required to ensure that the projectincludes all of the work required, and only thework required, to complete the projectsuccessfully.


Based upon the project needs, the ScopeManagement Plan may be informal or formal,generalized or with a high level of detail.

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The WBS structure must be related to theobjectives of the project. It is derived from the

project objectives, and is used as a frameworkfor defining project activities and tasks. Itensures that the total scope of work isdefined. It defines tasks and relates them toonly one specific work effort so activities arenot omitted or duplicated.

Work that is outside of the WBS is outside ofthe scope of the project. Often, the WBS isused to develop or confirm an understandingof the project scope.

• Top-down view of how project activitiesfit into the overall project structure

• Each descending level increases indetailed description of projectdeliverables

• Lowest deliverable level often referred toas work package

• Work packages may be subdivided intoactivities, which can be furthersubdivided into tasks

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Full Development Projects – These projects provide new or enhanced system functionality, which supportsthe business processes.

Vendor Development Projects – Any new or enhancement projects where a vendor/third-party company isinvolved in providing the solution.

Minor Development Projects – These projects are trivial improvements to existing applications for which thebusiness requirements are clearly defined in the business case or documentation without additional analysis andthat do not exceed 80 man-days of CMB Technology effort.

Work Order Projects – Improvements to existing applications for which the Business requirements are clearlydefined in the business case and that do not exceed 5 man-days of CMB Technology effort .

Agile Projects – A new software development methodology based on the Iterative life-cycle approach. Thismethodology is currently in a Pilot mode and is not available to the entire organization as a process standard;hence projects approved by the Methodology Team can only follow the CMB Technology Agility Process Standardfor Project development effort.

Support Project Types:

The following are the various other work types that are called “Projects”, but are not considered to bedevelopment projects and more of a support work nature:

Development Support Projects (DS)

Production Support Projects (PS)

Program Management Projects (PgM)

Business Consultancy Projects (BC)

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Once the project requirements have beendefined, tasks to deliver the requirements

need to be analyzed through a process calleddecomposition. The result of this process iscalled a Work Breakdown Structure (WBS).

Potential structural models:

• Phases

• Deliverables

• Product features

• Cautions

• Avoid breakdown by disciplines(e.g., sales, trading, marketing, training,

etc.)• Don’t worry about sequencing (yet)

• Make sure every WBS element has oneor more deliverables

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The high-level deliverables listed in the WBSare defined as part of the Scope Statement.

Each of those high-level deliverables is thenbroken down into more detail to continue toelaborate the requirements of the project.

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The construction of a new office buildingdelivers a tangible product by using several

elements. The product elements start with theLevel 2 construction and flow down to theLevel 4 tasks with concrete shown as anexample.

The Level 2 tasks for design, procurement,and commissioning are integrating tasks; all ofthe elements of the construction task requireinput from these to be complete. Projectmanagement is shown as a separate elementand has input into all of the other elements.

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As the work is defined to lower levels of detail,we arrive at tasks. This unit of requirement is

usually determined by the ability to assign itto one individual or a small group ofindividuals – usually from 40-80 hours ofwork.

Work Package – The work defined at thelowest level of the work breakdown structurefor which cost and duration can be estimatedand managed.

WBS Dictionary – document that providesdetailed deliverable, activity, and schedulinginformation about each component in the

work breakdown structure.PMBOK ® Guide – Fifth Edition, Glossary

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The Task Activity Description providesmore specific information in regard to unit of

work. It facilitates the assignment of work,once the project begins. It should also providethe details of the work to be performed. Thisdocument provides the lowest level ofrequirement.

Activity – A distinct, scheduled portion ofwork performed during the course of aproject.


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Contingency Reserve – Budget within thecost baseline or performance measurement

baseline that is allocated for identified risksthat are accepted and for which contingent ormitigating responses are developed.

Management Reserve – An amount of theproject budget withheld for managementcontrol purposes. These are budgets reservedfor unforeseen work that is within scope of theproject.


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Progressive Elaboration – The iterativeprocess of increasing the level of detail in a

project management plan as greater amountsof information and more accurate estimatesbecome available.


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This diagram displays the process ofelaborating project scope. There are key

deliverables that are created as part of thescope definition process.

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Since projects are dynamic in nature, changeis inevitable. Therefore, having tools in place

to manage the change is critical to projectsuccess.

Additional factors include:

• Determining that a change has occurred

• Determining change impact

• Managing the actual changes when andif they occur – updating the plan

Perform Integrated Change Control – Theprocess of reviewing all change requests;

approving changes and managing changes todeliverables, organizational process assets,project documents, and the projectmanagement plan; and communicating theirdisposition.


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• Changes to Business Requirements

• Requested changes during the SDLC

must be recorded, reviewed, approvedby all affected parties, tracked, andcontrolled. In addition to the tasksaround the change request itself, it isalso required that the impact on theoverall project effort and timeline beevaluated. This process acts as thevehicle to ensure the integrity of thebaseline deliverables as well as to trackincremental development costs.

• Changes to Project Plan

• All project work products must bedocumented, controlled, and stored

within the Project Management Toolsused by the Project.

• Guidelines for this responsibility aredocumented in the PMBOK ® Guide chapter on Integration Management.

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Changes to any one area of knowledge mustbe integrated into the total change control

process to ensure the big picture is consideredfor each change.

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Scope Creep – The uncontrolled expansionto product or project scope without

adjustments to time, cost, and resources.


The change control process will also assist indetecting changes that are not submitted asrequests. These changes can be scheduleslippages and cost overruns. Both are changesto the project plan and must be addressed.These types of changes are detected bycomparing work results with project plans.

Any variance to the plan is considered achange and must be analyzed to determine

the impact on the project’s end date or thecustomer’s level of satisfaction.

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Except for customer acceptance, Closingactivities upon IT project completion typically

occur after the developed system orapplication is migrated into production, or at

“Go-Live”.

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Participant s Notes: Closing the project is not something thathappens at a moment in time. It requires

planning and action to preserve an orderly,useful set of information for:

• Using the product

• Maintaining the product

• Improving performance on futureprojects

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Validating the project scope includes reviewingdeliverables to ensure that each is completed

satisfactorily. This process can be performed atmajor milestones, end of phase reviews, or at theend of the project. It is designated as a Monitoringand Controlling process by the PMBOK ® Guide –Fifth Edition, Table 3-1, p. 61, but we cover it herein Closing because of its natural relationship toother Closing processes and the obviousimportance of the last iteration of scope verificationto signal the close of the project.

If the project is terminated early, the project scopevalidation process should establish and documentthe level and extent of completion. Validate Scopediffers from Control Quality in that the former is

primarily concerned with acceptance ofdeliverables, while the latter is primarily concernedwith meeting the quality requirements. ControlQuality is generally performed first, but the twoprocesses can be performed in parallel.

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Lisa K. Westerback, Department of Commerce, describes a situation in which a standard trainingprogram, for all users of a new desktop e-mail, appointments, and application access software

package (the more efficient choice), was rejected in favor of a more effective segmented trainingapproach. The segments were:

• IT geniuses (who clamor for new technical horizons)

• Technically adept (who welcome advances and see applications to business goals)

• Technologically impaired (recalcitrant users who fear and hate technology of any kind)

After treating the first two groups with appropriate levels of standard training and the last groupwith individualized attention, “Only one concern marred the otherwise successful implementation.Some of those in the truly recalcitrant category, though in the end accepting and approving of thenew software, criticized the special attention they received. Surely, they thought, the resourcecost for the individualized consultations must have been exorbitant to learn to use such simple

software!”Make executive stakeholders a special segment and plan for their continual contact, culminating ina complete buy-in at a final project presentation.

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Project Execution and Control Project Scheduling

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Review these performance-based learningobjectives carefully.

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A resource is any tangible entity, such as a person, tool, supply item or facility used in theperformance of a project. Resource planning, including estimating, must be performed before

estimates of time and cost can be developed. And because there are basic concepts and bestpractices that apply regardless of the project environment and tools available, a categoricalresource checklist helps to expedite the planning.

Resource categories include:

• People (in-house, critical liaisons and/or contract personnel)

• Materials (supplies, goods, etc. specific to product being produced)

• Equipment (heavy to light office type and/or items also specific to product being produced)

• Services (outsourced components, e.g., market research, or support services, e.g.,overnight delivery, as well as other services specific to product being produced)

Regardless of whether you agree with the value of a categorical checklist, almost everyone

agrees that human resources – our people – are the most valuable resource and essentialachieving project success.

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Project Execution and Control

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Project Scheduling

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Resources must be managed in a way toensure that individual projects produce

expected outcomes. Therefore, resourceplanning includes the:

• Identification of the types and number ofresources required for the kinds of projectsthat are expected to be performed

• Identification of gaps between the resourcesneeded and the resources available, andwell as viable options to fill the gaps

• Application of planning tools that will aidresource planning and management

The three topics that follow will address theimplementation of these resource planningactivities in detail. However, we will spendmost of our time on the first two activities ofthe three.


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Project Scheduling

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Resource requirements are foundational to theestimating and scheduling process, and resourceassignments are best suited at the work package or

activity level.

The following points will provide guidance on theapplication of the Resource Requirements Matrix.

• Categorize the resource(s) by People, Materials,Equipment and Services

• Identify the required performance level for eachresource

• Estimate the quantity of each resource

• Verify and decide upon the hourly rate forhuman resource or equipment lease

• Estimate the duration and effort for human

resource, and duration for equipment lease

• Establish start and end dates for resource and% of time resource is allocated (this helps withnegotiations)

• Include comments on working assumptions, suchas commitments, availability, physical locationand source


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When identifying resource requirements, don’t forget the client, sponsor, etc. If the “S” insponsor is made to look like a dollar symbol ($) by drawing a line through it, it could be a

reminder that the sponsor is a crucial project resource. Also, keep in mind those in therequesting organization, i.e., the customer. End users and support staff are vital, and possiblymembers of the community, if the initiative is government funded. These resources, and perhapsothers, are project stakeholders who must be considered during the identify resourcerequirements activity.

What could happen if the organization delegated project management responsibility to one wholacked the knowledge to manage the effort or is marginally available? Do you think the projectwould be negatively impacted? The result would be the same irrespective of the resourceidentified. If the appropriate knowledge is lacking to perform the task and or the person wasunavailable, then negative impacts would be the outcome. When identifying resourcerequirements, ensure resource availability, required skill and performance levels.

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Project Scheduling

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If we must look outside our organization to fill aresource gap, then procurement is a viable option.Market conditions and procurement practices maywarrant consideration of a sole, single, or multiplesource supplier.

“Sole sources” exist when a single seller controlsthe supply of products or services in a definedmarket. These situations are usually the product ofmarket conditions such as technology leadership,patent protection, limited/exclusive franchisedistributorships, mergers and acquisitions, etc.

“Single source” selections are usually driven byobjective business decisions; such as leveragedvolume purchase contracts, standardizationprograms/systems, parts/service provided by an “original equipment manufacturer”, consistency ofquality/batch control, “just in time” deliveryrequirements, etc. “Single source” selection basedpurely on personal preference or subjectiverationale should not be sanctioned.

“Multiple source” selection is driven by theavailability of more than one suppliers in themarket and is facilitated by soundproposal/sourcing processes.


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Project Scheduling

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The project manager is responsible fordescribing the project needs relative to

specifications, drawings, delivery dates,estimated costs, and input to decision-makersabout whether to make or buy goods andservices from outside the performingorganization. In either case, we also musttake into account capital investments versusexpense for tax purposes.


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The PMBOK ® Guide – Fifth Edition Glossaryfurther elaborates on the definition of an

estimate saying that it is: “Usually applied to project costs, resources,effort and durations and is usually precededby a modifier (i.e., preliminary, conceptual,feasibility, order-of-magnitude, definitive),[most of which we will explore in more detailin Module 4 of this course]. It should alwaysinclude some indication of accuracy (e.g., + -x percent).”

Unlike the budget process, project schedulingis NOT the simple result of cumulativedurations. If that were true, the project wouldbe a string of serial activities linked from start

to finish and we would never be able to meetcustomers’ expectations!

In this course, our first priority is to addressestimating activities that support projectscheduling, the heart of the course beingModules 2-5. A secondary objective is toaddress the related processes which areaddressed in Modules 6 and 7.

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Now that we know how to provide the answerand the data behind the answer to the first

two questions posed, we will move on toaddressing the third scheduling question: Howlong will it take? The answer will encompassestimating perspectives, approaches,techniques, methods within each technique,characteristics of good estimating, etc., as willsoon be evident.

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To expand on the answers to the question of “How do “we” develop estimates”, we explore

each one of the five approaches listed above.

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Rolling wave is often used as a best practice inproject management, especially for initiatives that

span multiple years, because it allows incrementalrefinement of estimates over the project life.

Given an estimate used to baseline is provided inPhase 1, the next phase should have sufficientdetail to provide a more accurate estimate. BeyondPhase 2 details are not available to estimate withinthe confidence level to baseline, and this isacceptable.

The rules for rolling wave follows, assuming inPhase 1:

• Estimates for Phase 2, should be a budgetestimate used to re-baseline – +/- 10%

• Estimates for Phases 3 – 5 should be “soft” –>/= plus or minus 20% , depending on the

span of years and complexity As the graphical representation shows, initially, anestimate provided in Phase 1 of the project willhave the greatest range. This reflects a lack ofconfidence and or accuracy in the estimate. ThePhase 2 would result in an estimate with a smallerrange, reflecting greater accuracy and a higherlevel of confidence, because more information ordetails are available at that point in time.

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An order of magnitude or rough order ofmagnitude (ROM) uses past experience, scale

factors, parametric curves or capacityestimates to achieve its level of accuracy.

An analogous (budget) estimate is proratedfrom previous projects that are similar inscope and capacity to achieve its level ofaccuracy. It is a systematic hybrid betweenfacts and experience, and requires datacollection. After a sufficient amount of dataare collected, empirical adjustments are madethat take into account: project duration andcomplexity; size of team and competencies ofteam members; overtime expenditures;development and test environments.

The parametric estimate uses statistical data,i.e., a dollar amount per square foot, orparametric curves. The appropriate algorithmor curves can be applied at many levels of theWBS, and often produces an estimate slightlybetter in accuracy than analogous estimating.

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Bottom-up or definitive estimates are preparedfrom vendor quotes, fairly complete plans,specifications, unit prices, and estimates tocomplete; and bottom-up estimates have thegreatest level of accuracy when compared to top-down estimates.

Single-point estimates time in effort and orduration. Effort is a function of the base estimateand productivity factors. Duration is a function ofeffort, work calendar factors (vacations andholidays), as well as risk.

Consider the following to arrive at a single pointestimate:

• Assign each activity within a work package asingle estimate

• Aggregate each activity estimate into anestimate for the work package. (Thisfacilitates monitoring and controlling theschedule and budget.)

3-point, multi-point or PERT estimates require 3separate estimates to calculate the mean, anexpected time, for an activity. (See the slides thatfollow for more detail.)

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Program Evaluation and Review Technique(PERT) uses 3 time estimates. Keeping in

mind all the factors that can impact estimates,this method is:

• The most accurate in developing theindividual activity estimate

• The most mature, well-known

PERT was developed in 1958 and 1959 by theUnited States of America (USA) Navy for thePolaris submarine program and is still usedsuccessfully by the USA DoD for some of theirlarge engineering projects.

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PERT uses the mean of a beta distribution, which is a weighted average, to calculate duration estimatesthat have factored in some element of risk. The accuracy, and therefore the confidence, of activity duration

estimates using this approach are improved by considering estimation uncertainty or risk. PERT calculates anExpected (t €) time using a weighted average of three estimates, as shown in the formula above. Considerthe following, when using PERT:

1. Estimate the most PESSIMISTIC (tP) value … REALISTICALLY, which is based on the worst-casescenario.

2. Estimate the most OPTIMISTIC value (tO) … REALISTICALLY, which is based on the best-case scenario.

3. Determine or estimate the MOST LIKELY (tM) value, given the resources likely to be assigned, theirproductivity, realistic availability of the resources when needed, dependencies on other participants andinterruptions.

4. Use the formula to calculate the weighted average estimate.

Note: Make certain you enlist a subject matter expert to aid in the estimating, using this method. Andconsider it for any “critical activities”, that is activities that are on the critical path, and activities that havesignificant risk associated with them. Additionally, PERT could be used estimating effort, cost, linear feet ofmaterial, tons of raw material, energy needed, lines of code, time for UAT, liters of fluid and the number ofhelp desk calls per day.


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PERT introduces time buffers by consideringestimate contingencies or risks. Over the life of

the project, these defensible buffers can increasethe likelihood of completing the project on time.

We will explain more about the advantage ofusing this method in Module 6 – Budget, Riskand Contingency Planning. And in Module 7, wewill see how PERT can help to achieve morerealistic baselines.

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In order to calculate the probability of completing a project within a certain timeframe perform thefollowing:

1. Calculate the expected duration (tE) of each activity on the critical path.

2. Calculate the standard deviation of each activity on the critical path.

3. Square the standard deviation of each activity on the critical path to get each activity’s variance.

4. Add up the expected durations (tE) of the activities on the critical path to get the expected duration ofthe total project.

5. Add up the variances (NOT THE STANDARD DEVIATIONS) of each activity on the critical path to getthe variance of the total project.

6. Calculate the square root of the variance of the total project to get the standard deviation of the project(this is not the same as adding the individual standard deviations from the activities.)

7. Add/subtract the standard deviation from the project’s expected duration (or mean) to get eachincrement on the normal curve in order to calculate the probability of finishing the project relative to a

specific date.• The probability of getting the project done within 16 weeks is 50% + .5 (68%) = 84%

• Within 17 weeks, we have 50% + .5 (95%) = 97.5%

• Within 14 weeks, we have 50% - .5 (68%) = 16%

• Within 13 weeks, we have 50% - .5 (95%) = 2.5%

Adapted from Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 11 th

Project Time ManagementProject Execution and Control



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Edition , by Harold Kerzner, Ph.D., p. 618.Project Execution and Control Project Scheduling

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Project Scheduling

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Level of Flexibility:

• Mandatory dependencies are referred toas “hard” dependencies becauseactivities with this attribute must besequenced in a certain order

• Discretionary dependencies are referredto as “soft” dependencies because thelogic relationships are not absolute, butbased on preferred practice

Level of Control:

• External dependencies extend beyondthe project team and the direct control ofthe project manager

• Internal dependencies are containedwithin purview the project team and thedirect control of the project manager


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IIL-PEC

The CPM is performed without regard toresource availability and is therefore

theoretical. CPM calculates early and latedates or time periods, based on the sequenceof activities as defined in the network diagramand the duration estimates for the activities.

The critical path is the sequence of activitiesthat represent the longest path through aproject, which determines the shortestpossible duration. A critical path activity isany activity on the critical path in a projectschedule.

Critical Path Method: A method used toestimate the minimum project duration and

determine the amount of scheduling flexibilityon the logical network paths within theschedule model.


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On any network path, the schedule flexibilityis measured by the positive difference

between early and late dates, and is termed “total float.” Critical paths may have positive,zero, or negative total float depending on theconstraints applied.

In the examples that will follow for the criticalpath method, total float will need to bedetermined for each activity.

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There will be more on float calculations, and

its use when we apply the CPM.In the example shown:

Total float = late finish (LF) – early finish (EF)

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In the conventions shown, the name of theactivity is positioned in the middle of the box

with the duration of the activity directly belowit.

The top-left corner of the box contains theearly start date, and the top-right corner ofthe box contains the early finish date.

Similarly, the bottom-left corner of the boxcontains the late start date, and the bottom-right corner of the box contains the late finishdate.

We will discuss how to determine or calculateeach of these values via the Critical Path

Method.

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A forward pass is performed from left to rightthrough the network. This process will identify

the early start and early finish for eachactivity. Start with one for the first activitiesto get the initial early start dates, and thenadd the duration to the early start andsubtract one to get the early finish for eachactivity.

In the forward pass process, the greater valueof the early finish for all predecessors isalways used (and incremented by one) whenmultiple predecessors converge onto onesuccessor. Remember: the predecessor’searly finish is incremented by one to get the

early start for the successor.

The early finish for the last activity in thenetwork is also the project duration.Therefore the duration for the schedulenetwork shown is 18 work periods.

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A backward pass is performed starting fromright to left. It will determine the late start

and late finish for each activity. Start byinheriting the early finish for the late finish inthe last activity (H), and then subtract theduration from the late finish (and add one) forthe late start. The lesser value of all successortasks that converge from a predecessor (anddecremented by one) is used as the late finishfor the predecessor, as in activity B.Remember: the successor’s late start isdecremented by one to get the late finish forthe predecessor.

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This slide illustrates the old CPM calculationthat PMI used in previous versions of the

PMBOK ® Guide.

After the ES and EF are determined by theforward pass and the LS and LF aredetermined by the backward pass, one cancalculate the float for each activity. The floatcan be calculated by:

Float = Late Finish - Early Finish

or

Float = Late Start - Early Start

Although both formulas will provide you with

the same answer, it is advisable to use bothformulas to verify the correctness of yourresults for the forward and backward pass.

In summary:

Float > 0 (time is available)

Float = 0 (situation is critical)

Float < 0 (project is behind schedule)

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The critical path, as we learned, is the path ofactivities that has float that is less than or

equal to zero. Therefore, the critical path isdenoted by A, C, G, H.

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Start with a schedule that balances thecompeting constraints by first:

• Using an unconstrained approach, i.e. donot back into a given date

• Assuming resources will be availablewhen they are needed

• Using FS precedence relationships asmuch as possible for the precedencediagram

• Employing the CPM

Review the initial draft of a completedschedule, and then apply any or all of theoptimizing techniques to make the neededadjustments. At this point, it is appropriate touse a scheduling tool to enter all activities,precedence relationships, planned dates, andresources.

The optimizing techniques listed above will beaddressed in the balance of this module.

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The basic principles to resource leveling are:

• Monitor resource loading to avoid overallocation

• Ensure critical path activities get thehighest priority when loading

• Make adjustments in resourceassignments to activities that havepositive float, if applicable

• Adjust effort and duration as needed,such as when the number of resourcesallocated must change or the skill level ofresources change

Resources need to be “leveled” when theallowable time period for a resource isexceeded. The usual result of resourceleveling is a longer activity and or projectduration. The usual result of not leveling isover allocation of human resources, “burn-out”, and an increase in attrition.

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IIL-PEC

Fast tracking and crashing both bypass bestpractices to accelerate the schedule.

Therefore both options will introduceadditional risk into the project.

Be sure to assess the risk and adviseaccordingly when considering these methodsof compression.

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Crashing is one of the most over ratedschedule optimization techniques in the

business. Crashing is not effective, ifadditional resources do not have the skills orbring continuity into the project, as in havingfamiliarity with the project history. Addingresources can not only add confusion, but alsoresult in higher costs and undue risks thatmount up to something beyond the timesavings thought possible.

USE WITH CAUTION!!

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Fast tracking is used to reduce projectduration when the logical relationships

between activities can be changed. Thistechnique is applicable only between activitieswith discretionary attributes. This can beachieved by:

• Changing the precedence relationship of2 activities from finish-to-start to start-to-start or finish-to-finish. or impose alead.

• Moving an activity off of the critical pathinto an existing path

• Moving an activity off of the critical path

and creating a new parallel path

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Project Execution and Control Quality Management



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Participant s Notes: Review these performance-based learningobjectives carefully.


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Participant s Notes: Quality should be planned in, not inspected in. The planshould comply with known standards, regulations, or

company policies based on the product of the project.It is a good practice to invest in prevention andappraisal efforts, establish how quality will be measuredthroughout the project, and be certain the end resultwill conform to the customer’s stated requirements.

Productivity, cost, and quality all contribute toprofitably satisfying the customer.

The characteristics of quality may be viewed in terms of:

• Degree of excellence (e.g., good, average, poor)

• An attribute, trait, or faculty

• Fitness for a particular purpose

Attributes are properties that cannot be measureddirectly but, nevertheless, can be recognized andappreciated. A valued attribute in the food and drinkindustry would be taste. Those industries producinghousehold goods may have a quality attribute ofappearance. The textiles industry might be moreattuned to tactile property attributes such as softness,warmth, and stiffness.


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Participant s Notes:Customer satisfaction is accomplished by meeting customer requirements by evaluating, defining, andmanaging expectations.

Preventing errors in a process is typically less expensive than fixing them by inspection.

Success in projects and organizations requires the involvement of all members of the team, management mustprovide the resources needed to ensure success.

Continuous improvement is referred to in Japan as Kiazen. This is the process as described by Shewhart andDeming as plan-do-check-act.

The cost of quality is broken down into two areas, the cost of conformance and the cost of non-conformance.

Quality. The degree to which a set of inherent characteristics fulfills requirements.

Grade. A category or rank used to distinguish items that have the same functional use, but do not share thesame requirements for quality.

Precision. A measure of exactness.

Accuracy. An assessment of correctness.


While sometimes a lower grade is specified after a cost-benefit analysis - lower quality is not acceptable.

Precision is related to repetitiveness. The ability to hit the same point over and over again, while accuracydeals with hitting the value that is specified.


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Participant’s Notes:



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Participant s Notes:Plan to Assure the Process is Right

Before finalizing the quality plan, you should understand

what quality acceptance looks like, so the plan reflectsthe criteria of stakeholders.

There are nine basic steps in the quality planningprocess:

1. Review the documents for quality language.

2. Identify a quality team and leader.

3. Identify plan components and owners.

4. Negotiate specific quality assurance (QA)requirements.

5. Plan the (QA and quality control (QC)) steps forthe project.

6. Educate the project team on QA/QC guidelines.

7. Incorporate QA/QC tasks into the project plan.

8. Get client sign-off.

9. Implement plans for QA/QC data


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Cost of quality refers to the total cost of all efforts to achieve product, service, or result quality. RememberCrosby and his “quality is free” slogan?

Cosby was referring to the notion that the cost of prevention and appraisal should be a part of the cost ofdoing business, and should not be viewed as separate and distinct. Prevention refers to designing qualityin—allowing for project team member, end user or customer training and mapping out a quality strategybefore you jump in to keep you on course. Appraisal refers to pre- and production inspections, tests, orsampling that is done to assure the final product will be within the product specification levels.

Design reviews, training, and quality planning are associated with the costs associate of prevention activities.Inspections, lab tests, and in-process testing are costs associated with appraisal activities.

Juran spoke often of the cost of not conforming to quality and was speaking of the impact of internal andexternal failure. Internal failures are those that occur before leaving the organization and include scrap,rework, repair, and defect evaluation. This causes costs to rise and employees to get disgruntled abouthaving their efforts wasted. The goal is to design quality in, so there is little to catch at the inspection phase.External failures are those discovered by the customer and include returns, complaints, corrective action, andfield maintenance. There is no way to know the true cost of external failures. Unhappy customers maycomplain to their friends and acquaintances about the failure, and you will never know what the loss of that

business might be. If loss of life occurs because of an unsafe product, the cost is immeasurable.In the 1930s, Juran was one of the pioneers who first considered the idea that there were legal implicationsassociated with the lack of quality, such as civil or criminal liability, appropriate remedies in court and thenotion of express or implied warranties.



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Participant s Notes: When used in quality planning, costs andbenefits consider the trade-offs to ensure a

constant focus on stakeholder satisfaction andon the bottom line. In other words, thebenefits of our quality activities shouldoutweigh the costs.

Benchmarking allows comparisons of theresults among projects, which are used as abasis of measurement to generate ideas toimprove performance.

Design of experiments is a statistical methodthat assists in identifying factors that mayinfluence variables to find the most acceptable

product combinations.


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Participant s Notes: The American Society for Quality (ASQ) states, “Quality assurance is all the planned and

systematic activities implemented within thequality system that can be demonstrated toprovide confidence a product or service willfulfill requirements for quality.”

“Quality assurance” is a bit of a misnomerbecause it is not specifically about quality, butmostly about ensuring compliance withprocess.

In any case, the operative word is “assurance,” which, according to ASQ, is “theact of giving confidence, the state of being

certain, or the act of making certain.”


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Participant s Notes: Quality assurance is assuring that the quality of theproduct or service you are providing the customer

is as agreed according to the service levelagreement, statement of work, or contract. Soanother task of the project manager, distinct fromthe QA role, is confirming that all customer-provided product specifications are clearlydocumented in the scope of the project. Next theproject manager will identify how delivery of theproduct specifications will be confirmed during theproject and at time of customer inspection ortesting prior to turnover.

For example, in operational information systems,"quality" might be defined as the number of times asystem completely and successfully executes

without failure or interruption. One way to assurethat level of quality would be to measure andreport the number of executions run and theirsuccess / failure ratios during product testing.


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Participant s Notes: An interrelationship diagraph is one of a familyof diagrams that helps to explain the cause

and effect relationships between elements in aproject. The Interrelationship Diagraph maybe developed with the help of other tools,such as, the affinity diagram, the fishbonediagram and the decision tree diagram. Itallows one to systematically identify, analyzeand categorize the cause and effectrelationships that exist between critical issues.


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Participant s Notes: Among the objectives of a quality audit are:

• Identify where you are

• Identify good practices

• Do a gap analysis

• Provide assistance in improving productivity

Intended outcomes from a quality audit:

• Planned project quality is met

• Products are safe and fit for use

• All laws and regulations are followed

• Data systems are accurate and adequate

• Proper corrective action is taken when

required• Improvement opportunities are identified


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Participant s Notes: Cause-and-effect diagrams, also calledIshikawa diagrams or fishbone diagrams,

illustrate how various factors might be linkedto potential problems or effects.


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Participant s Notes: While there are many styles, two types of flowcharts are generally used. One is a process flow

chart and the other is a system flow chart. Anexample of a process flow chart is shown. Theyboth graphically display how various elements of aprocess or system relate. As a project progresses,understanding the tasks and decisions that occur inany given process can help the project teamanticipate what and where quality problems mightsurface, which helps the team to developapproaches for dealing with them.

A common format for flow charts is known as theSIPOC model. This flowchart shows the relationshipbetween:

• Suppliers

• Inputs

• Process

• Outputs

• Customers


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Participant s Notes: Listed are the seven primary tools for quality.We will explore each of these in more detail

when we get to Control Quality.


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Participant s Notes: The Pareto diagram is named after VilfredoPareto, a nineteenth century Italian economist who

postulated that a large share of wealth was ownedby a small percentage of the population. This basicprinciple translates well into quality problems. Mostquality problems result from a small number ofcauses. Quality experts often refer to the principleas the 80/20 rule, which means that 80% ofproblems are caused by 20% of the potentialsources.

A Pareto diagram puts data in a hierarchical orderfrom most occurrences to fewest occurrences,suggesting that the highest number of occurrences,if resolved, would produce the greatestimprovement. When seeking operational or processimprovement project opportunities within an

organization, this can be a helpful tool in decidingwhat to fix first. While the Pareto diagram will pointto the biggest culprit of failed throughput, the otherfactor to consider is the cost of correcting thaterror. Although it can summarize all types of data,the Pareto analysis technique is used primarily toidentify and evaluate nonconformities.


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Participant s Notes: As indicated in the slide, the histogramconsists of a series of bar charts that shows a

distribution of data. The columns representand information attribute describing asituation. The height of each bar representsthe frequency of occurrence of each itemlisted. This tool provides an excellent meansto identify problems in a process by thedisplay of each distribution.


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Participant s Notes: A typical control chart is a graphical display ofa quality characteristic that has been

measured or computed from a sample or asresults of a process. Remember the transitionin history from craftsman to mass production?In attempting to “manufacture” 10,000muskets, a pattern for interchangeable partswas designed for unskilled workers to use.The discovery at that time was that eventhough there were repeatable processes,slight variation still occurred, even with designpatterns.

The question is, will those variations allow thepieces to fit together in the final product and

still work? We have a target (the exactpattern) and specification limits (slightvariances from the pattern) that will still allowthe parts to fit together and work. Those limitsare referred to as upper specification limitsand lower specification limits.


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Participant s Notes: The quality control chart contains a line in thecenter that represents the average of two other

horizontal lines, called the upper control limit (UCL)and the lower control limit (LCL). These are set bythe company, rather than the customer, and areintended to be more rigorous than the customer’sexpectations, which are represented by thespecification limits. These control limits are chosenso that if the process is in control, all of the samplepoints will fall between them. As long as the pointsplotted are within the control limits, the process isassumed to be in control, and no action isnecessary.

However, a point that plots outside of the controllimits is interpreted as evidence that the process is

out of control, and investigation and correctiveaction is required to find and eliminate theassignable, or special causes responsible for thisresult. The data points are plotted connected withstraight line segments for easy visualization.


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Participant s Notes: The process is in control when no obviousabnormalities appear in the control chart.

This is the desirable process state.


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Participant�

project control management content

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