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Project Management Workshop

based on PMI Processes

Beginning Route Consulting Services Pvt Ltd


Regus Business Center
Level 2, Elegance Tower,
Mathura Road, Jasola, New Delhi - 110025

Contact No. : +91 99102 45599,


Email : info@beginningroute.com
Web : www.beginningroute.com

About Us
Beginning Route is a consulting company that exists to realize the points on the
management's agenda. We
generate measurable improvements by developing
processes, organisation and IT. Our approach is driven by a strong focus on results and
responsibility for the customer obtaining the expected effect fast. Beginning Route is the
local and close partner in both simple and complex undertakings.
Our culture is based on three core values: team spirit, passion and results, which
characterise everything we do.
Team spirit: We act as team players with our customers and collaborating partners. Together, we
create sustainable business improvements.
Passion: We have a burning commitment to improve and develop our customers' businesses.

Results: We do not give up before creating real improvements and concrete values for customers and
collaborating partners.

Ground Rules

Scope vs. Time


Cell phones
Laptops
Office meetings
Time to start / end !
3

Introduction - Participants

Name
Industry
Organization
Job functionality
Experience in Project Management
4

Introduction to Project Management

Set Goals
Plan
Manage
Monitor
Deliver
Close
When you dont know where you are going
any road will get you there !!

A simple question

Are YOU managing the PROJECT ?


OR
Is PROJECT managing YOU ?

What is a Project?
A temporary endeavor undertaken to create a
unique product, service or result
Any examples anybody ..

Project Characteristics

Temporary
Definite start and finish dates
Unique
Progressive Elaboration
Limited Resources
8

Project Characteristics
Progressive Elaboration
Progressive means
proceeding in steps,
continuing steadily
with increment.
Elaboration means
worked out with care
and detail, developed
thoroughly

Project Characteristics
Progressive Elaboration

Project scope is high-level in the beginning. It becomes more


detailed as project team progresses and develops better
understanding of project objectives and deliverables.
Each projects product is unique. Hence, the characteristics that
distinguish it must be progressively elaborated

10

Project Characteristics
Progressive Elaboration

The distinguishing characteristics are

Broadly defined early in the project.


Become more explicit and detailed as the project progresses.
THEN, THE PROJECT TEAM BEGINS TO GRASP THEM BETTER!

11

Project Characteristics
Progressive Elaboration

The distinguishing characteristics are:

Broadly defined early in the project.


Become more explicit and detailed as the project progresses.
THEN, THE PROJECT TEAM BEGINS TO GRASP THEM BETTER!

12

What is Project Management?


The application of knowledge, skills, tools and
techniques to meet project objectives

13

Project Managers role


This is what its
like; for the project
manager !

14

Project Managers role

The project manager is responsible for the overall accomplishment of the project, ensuring that the project objectives are
achieved.

The key role of the project manager is to ensure project integration.

The role of project manager comprises many responsibilities including:


*
*
*
*
*
*
*
*

Planning and defining scope


Resource planning
Time estimating
Developing a budget
Managing risks and issues
Risk analysis
Documentation
Strategic influencing

* Activity planning and sequencing


* Developing schedules
* Cost estimating
* Controlling quality
* Creating charts and schedules
* Customer Liaison
* Team leadership

15

What is Project Constraint?


What is a constraint?
Anything that is limiting your options is called a constraint.
What limits your options?
Checkout:
Scope
Schedule
Budget
Quality, Resources and Risk.

16

What is Project Constraint?


In real life, you find new client demands:
Schedule is shortened
Scope is added
Requirements are changed
Budget is reduced
How would you manage such situations?

17

What is Project Constraint?


Real Life Challenge!
If the schedule is shortened?
Option one: the budget needs to be increased to add additional resources to
do the same work in less time.
Option two: If a budget increase is not possible, then the scope or quality may
be reduced to deliver a product in less time for the same budget.
Bigger dilemma ahead!

18

What is Project Constraint?


Bigger dilemma!

Often project stakeholders have differing ideas as to which factors are most important! This
creates even bigger challenge for the project team.
Assessing the situation and balancing the demands in order to deliver a successful project is
your responsibility! Due to potential for change, the project management plan needs to be
iterated and progressively elaborated throughout the projects life cycle!

19

Stakeholder
Broad Definition
Stakeholder is a Person or organization that is actively involved in the project, or
whose interests may be positively or negatively affected by execution or completion
of the project

PMI.org

20

Project Triple Constraints


Time
Scope
Cost
Balancing Scope, Time, Cost within the framework of quality
to meet Project Objectives
21

If Projects are not managed properly


It results in one, many or all of the following

Time Overrun
Cost Overrun
Dissatisfied Stakeholders
De-motivated team members
Loss of Customer and Money

22

The Solution
Project Management System consisting of:
Formal Project Planning
Effective Monitoring & Control

With additional elements:


Tools/Techniques and Methodologies
23

Project Management Methodology


A collection of processes, methods
and tools
Provides a roadmap to manage
the project effort and activities
Provides a checklist of key
deliverables and activities
24

Inputs -> Tools / Techniques -> Output

25

PM Process Groups

Initiating
Planning
Executing
Monitoring & Controlling
Closing
26

Interaction between process groups

Monitoring & Controlling

Initiating

Planning

Closing

Executing

27

Project Lifecycle
Process group wise activities across the project life cycle

Level Of Activities

Executing
Planning

Initiating

Controlling

Closing

Time
28

Project Lifecycle

29

PM Knowledge Areas

Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resources Management
Communication Management
Risk Management
Procurement Management
Stakeholder Management (PMBOK5)

Professional Responsibility and Ethics


30

PM Knowledge Areas
1.

Integration Management To ensure integration of the all project management processes and activities
in meeting the project's objectives.

2.

Scope Management To ensure that the project contains all the work required to meet the objectives,
nothing more, nothing less.

3.

Time Management To ensure that the project is completed within the time constraints.

4.

Cost Management To ensure that the project can be completed within the approved budget.

5.

Quality Management To ensure that the project meets the quality requirements of the stakeholders.

6.

Human Resource Management To organize, develop and manage the project team.

7.

Communications Management - To ensure the management of project information, from collection to


disposition.

8.

Risk Management To increase the probability and impact of opportunities and decrease the
probability and impact of threats.

9.

Procurement Management To ensure products or services of the required quality are procured for
integration with the final product.

Professional Responsibility and Ethics


31

Knowledge areas & Process map


42

Integration
Management

Initiation (2)
Develop project charter

Scope Management
Time Management
Cost Management
Quality Management
Human Resources
Management
Communication
Management
Risk Management
Procurement
Management

Identify Stakeholders

Planning (20)
Develop project
management plan

Execution (8)
Direct and manage
project execution

Monitoring
and Control (10)

Monitor and Control Project work Close project phase


Perform integrated change control

Collect requirements
Define Scope
Create WBS
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule

Verify Scope
Control Scope

Estimate Costs
Determine Budget

Control Costs

Control Schedule

Plan Quality

Perform quality assurance

Develop Human Resource Plan

Acquire project team


Develop project team
Manage project team

Plan Communications

Distribute Information
Manage stakeholder expectations

Plan Risk Management


Indentify Risks
Perform qualitative analysis
Perform quantitative analysis
Plan risk responses
Plan procurements

Closing (2)

Perform quality control

Report Performance

Monitor and Control Risks

Conduct procurements

Administer procurements

Close procurements

32

Project Management Office (PMO)


A strategic function in an organization
that facilitates accomplishment of strategic goals
with the help of centralized effective project / program
management
by enhancing the competencies of the organizational
project management community and enhancing the
organizational project management maturity.

33

Project Management Office (PMO)


A PMO supports Project Managers in a variety of ways including:
Managing shared resources across all projects.
Identifying and developing project management methodology, best practices
and standards.
Coaching, mentoring, training and oversight.
Monitoring compliance with project management standards and policies
through project audits.
Coordinating communication across projects.

PMOs create value through Standardization (e.g. process, systems),


Knowledge (e.g. retention, training) & Consulting (e.g. project, outcome)
34

Project Management Office (PMO)

35

Summary
Q&A
Discussions

36

Project Integration Management

Difficulty

Memorization

Exam Importance

High

Medium

High

Project Integration Management Processes


Ten Knowledge Areas

Tools and
Techniques

Project
Success

Core Functions
Scope
Management

Time
Management

Cost
Management

Quality
Management

Integration Management
Stakeholder needs
and expectations

Human
Resources
Management

Communications
Management

Risk
Management

Procurement
Management

Facilitating Functions

Stakeholder
Management

Enterprise
Success

Project Integration Management Processes


Integration Management
(Processes and their major output)
Develop project charter
=> Project Charter

Monitor and control project work


=> Change Requests

Develop project management plan


=> Project management plan

Perform integrated change control


=> Change Request status updates

Develop and manage project Execution


=> Deliverables

Close Project or phase


=> Final product transition

Project Integration Management Processes

Project Integration Management Processes


Initiating

Planning

Develop
Develop
Project Charter Project
Management
Plan

Executing

Monitoring
Closing
and Controlling

Direct and
Manage
Project
Execution

Monitor and
Close Project
Control Project or Phase
Work
Perform
Integrated
Change Control

41

Develop Project Charter


Developing the project
charter that formally
authorizes a project or
a project phase

42

Develop Project Charter


Inputs

Tools and Techniques Outputs

1. Business Case
2. Contract (When Applicable)
3. Project Statement of Work (S.O.W.)
4. Enterprise Environmental Factors
5. Organizational Process Assets

1. Expert Judgement

1. Project charter

43

Project Selection Methods


Expert judgment is one of the techniques used in project management to
accomplish various tasks, including project selection. It refers to making a
decision by relying on expert advice from one or more of the following
sources:
Senior management
An appropriate unit within the organization
The project stakeholders, including customers and sponsors
Consultants
Professional and technical associations
Industry groups
Subject matter experts from within or outside of the performing organization
Project management office (PMO)
44

Project Selection Methods


Benefit Measurement Model

Compare projects for the perceived benefits


Also called as Comparative approach or decision models
Involves scoring of projects based on cost, risk
Murder boards involves challenging the project need
Payback Period
Cost Benefit Analysis
Scoring Models
Net Present Value
Internal Rate of Return
45

Project Selection Methods


Mathematical Models
Involves mathematical formulas to predict success rate
Also called as Constrained Optimization

46

Project Selection Methods


Present Value (PV) or Expected Present Value (EPV) a series of
expected future cash flows expressed in todays monetary
value
PV = FV / (1+r) n

Net Present Value (NPV) the current value of the expected


cash flows minus the initial investment/ cost
Payback period the amount of time to recover your cost
47

Project Selection Methods


Internal Rate of Return (IRR) Investments return in profitability
similar to banks interest rate.
Return On Investment (ROI) A return ratio that compares the
net benefits of a project/ product, verses its total cost

Opportunity Cost the cost of choosing one opportunity over


another
Depreciation a decrease in value of property
48

Constrained Optimization Methods


Constrained optimization methods are concerned with predicting the success of the
project. These methods are based on complex mathematical models that use
formulae and algorithms to predict the success.
These models use the following kinds of algorithms:
Linear
Nonlinear
Dynamic
Integer
Multiple objective programming

49

Project Charter

Summary Milestone Schedule


Summary Budget
High-level Risks
Key Stakeholders (Decision makers)
Assigned PM and Authority Level
Name and Responsibility of the Persons
Authorizing the Charter

50

Project Charter
Project Business Case (Project justification w.r.t risk & returns)

Reason for undertaking the project: Problem, Opportunity or Directive


Problem or Opportunity Statement and Associated Benefits
Estimated Project Costs
Project Risks

High-level Project Description


Project Objectives and related Success Criteria or Metrics
(with respect to Scope, Schedule, Cost, Quality)

Triple Constraints Flexibility or Tradeoff Matrix


Summary Product Requirements or Features (Product Scope)
51

Develop Project Management Plan


Process includes the action Management Plan
necessary to define, integrate and co-ordinate
all subsidiary plans into a project management
plan

52

Develop Project Management Plan


Inputs

Tools and Techniques

Outputs

1. Project Charter

1. Expert Judgment

1. Project
Management Plan

2. Outputs from Planning


Processes
3. Enterprise Environmental Factors

4. Organizational process
Assets

53

Components of Project Management Plan

Project scope management plan


Schedule management plan
Cost management plan
Quality management plan
Process improvement plan
Staffing management plan
Communication management plan
Risk management plan
Procurement management plan
Milestone list
Resource calendar
Schedule, Cost, Quality baseline
Risk register
Change and Configuration management plan
54

Direct and Manage Project Execution


process requires the Project Manager & Team
to perform multiple actions to execute the
project management plan to accomplish the
work defined in the project scope statement

55

Direct and Manage Project Execution


THE CONCEPT
Is Primary Process for Carrying out the project management plan.
Involves directing and managing various technical and organizational
interfaces existing in the project to execute the tasks as planned.

Deliverables are produced as outputs (from the processes as defined in


the project management plan).

56

Direct and Manage Project Execution


What do we do?

Perform activities to accomplish project requirements


Create project deliverables
Staff, train, and manage the team members
Obtain, manage, and use resources (all types e.g. men, material, cost)
Implement the planned standards and methods
Establish and manage project communication channels
Generate project data (status, forecasting)
Issue change requests and adapt approved changes into the projects scope, plans and Environment
Manage risks and implement risk response activities
Manage sellers and suppliers
Collect and document lessons learned, and implemented approved process improvement activities.

57

Direct and Manage Project Execution


What do we get?

Deliverables

Work performance information about completion status of deliverables, and what has been
accomplished is fed into the performance reporting process.

Work performance info used as input to monitoring and Controlling Process Group.

58

Direct and Manage Project Execution


Here we also implement

Approved corrective actions to bring anticipated project performance as per project plan.

Approved preventive actions to reduce probability of negative consequences.

Approved defect repair with recommendation to either repair or replace defective component.

59

Direct and Manage Project Execution


Inputs

Tools and Techniques

Outputs

1. Project management
plan

1. Project management
information system

1. Deliverables

2. Approved change
requests

2. Expert Judgment

2. Work performance
information
3. Change Requests

3. Enterprise
Environmental Factors
4. Organizational process
Assets

4. Project management
plan updates
5. Project document
updates
60

Direct and Manage Project Execution


Process Inputs
1. Project Management Plan
We have discussed in detail.
2. Approved Change Requests
As a part of the Perform Integrated Change Control process, a change control status update
shows that some changes are approved and some are not.
Approved change requests are scheduled for implementation by the project team.
Approved change requests are the documented, authorized changes to expand or reduce
scope. Approved change requests can also modify, project management plan, procedures,
costs/budget, or revise schedule.
Approved change requests may also require implementation of Corrective Action, or
Preventive Action, or Defect Repair or Replacement of Defective Component.
61

Direct and Manage Project Execution


Process Inputs
3. Enterprise environmental factors
Factors that can influence are:
Organizational, company or customer culture and structure
Factors that can influence are:
Infrastructure (existing facilities and capital equipments)
Personnel administration (employee performance review and training, hiring and firing
guidelines)
Stakeholder risk tolerances
Project Management Information System (PMIS) AN AUTOMATED TOOL:

1) A scheduling software,
2) A configuration management system,
3) An information collection and distribution system
4) Web interfaces to other online automated systems
62

Direct and Manage Project Execution


Process inputs
4. Organizational process assets
OPAs that can influence are:
Standard guidelines and work instructions
Communication requirements (defining allowed media, record retention, and security
requirements)
Issue and defect management procedures (defining issue and defect controls, issue and
defect identification and resolution, and action item tracking).
Process measurement databases used to collect and make available measurement data on
processes and products
Project files from previous projects
Issue and defect databases (having historical issue and defect status, control info, resolution,
and action item results).
63

Direct and Manage Project Execution


Tools and Techniques
EXPERT JUDGMENT
Such judgment and expertise is applied to all technical and management details during this
process. This expertise is provided by the project manager and the project management
team.
Additional expertise is available from many sources:

other units within organization e.g functional heads


consultants, stakeholders
professional/technical associations

Project Management Information System


Is also used here. Details already discussed.

64

Direct and Manage Project Execution


OUTPUT
1. Deliverables
A deliverable is any unique and verifiable product, result or capability to perform a
service that must be produced to complete a process, phase, or project.
Are mostly tangible but intangible too:
Example : Tangible Deliverables
1) Software Code 2) Buildings 3) Structures 4) Roads
Intangible Deliverables
1) Training 2) Mentoring 3) Facilitation

2. Information on work results:


Which To what extent the quality standards are being met
What costs have been incurred or committed deliverables have been completed and which
have not --- IS COLLECTED HERE AND FED INTO THE PERFORMANCE REPORTING PROCESS FOR NECESSARY ANALYSIS
AND EVALUATION!
65

Direct and Manage Project Execution


OUTPUT
3. Changes Requests
When issues are found while work is being performed, change requests are issued.
Change requests may to expand modify project policies or procedures, project cost or
budget, project schedule or project quality.
Other change requests cover preventive or corrective actions to forestall negative impact
later in the project
Please note: requests for a change can be direct or indirect, externally or internally initiated, and can be optional or
legally/contractually mandated. They can include:
a) Corrective action (to bring expected future performance in line with the project management plan).
b) Preventive action (to reduce the probability of negative consequences associated with project risks).
c) Defect repair
d) Updates (changes to formally controlled documentation, plans to reflect modified or additional ideas or content.

66

Direct and Manage Project Execution


OUTPUT
4. Project Management Plan Updates
Include updates to:
Requirements management plan
Schedule management plan
Cost management plan
Quality management plan
Human resource plan
Procurement management plan, and
Project baselines

67

Direct and Manage Project Execution


OUTPUT
5. Project Document Updates
Include updates to:
Requirements documentation
Project logs (issue, assumptions, etc.)
Risk register, and
Stakeholder register

68

Monitor and Control Project Work


monitoring project processes associated with
Initiating, Planning, Executing and Closing as
well as for Corrective or Preventive action for
managing variances

69

Monitor and Control Project Work


Monitoring means:
1. Collecting, measuring, and distributing performance information.
2. Assessing measurements and trends to effect process improvements!
3. Is done throughout the project.
4. Continuous monitoring gives the project management team an insight into the
health of the project, and IDENTIFIES AREAS THAT MAY REQUIRE SPECIAL ATTENTION!

Controlling means:
1. Determining corrective or preventive actions or
2. Replanning and
3. Following up on action plans TO DETERMINE IF THE ACTIONS TAKEN RESOLVED THE
PERFORMANCE ISSUE!

70

Monitor and Control Project Work

71

Monitor and Control Project Work


How do we do it?
1. Comparing actual project performance against the project management plan!
2. We assess performance to determine whether any corrective and preventive actions are indicated.
If so, then we recommend them to CCB for approval.
3. We analyze, track, monitor project risks to ensure the risks are identified, their status is reported, and
appropriate response plans are executed.
4. We maintain accurate and timely information base about projects product and related documentation
through project completion.
5. We provide information to support STATUS REPORTING, PROGRESS MEASUREMENT, FORECASTING!
6. We provide forecasts to update current schedule and cost information.
7. We monitor implementation of approved changes.

72

Monitor and Control Project Work


Inputs

Tools and Techniques

Outputs

1. Project management Plan

1. Expert Judgment

1. Change Requests

2. Performance Reports
3. Enterprise Environmental
Factors

2. Project management
plan updates
3. Project document
updates

4. Organizational process
assets

73

Monitor and Control Project Work


Process Inputs
1.Project Management Plan provides baselines for measuring performance.
2.Performance reports provide actual work performance information.
Reports prepared by the project team detailing activities, accomplishments, Milestones,
identified issues, and problems.
Performance reports provide key information.
Examples:
- Current status
- Significant accomplishments for the period
- Scheduled activities
- Forecasts, and
- Issues.
74

Monitor and Control Project Work


Process Inputs
3. Enterprise environmental factors that can influence this process:

PMIS used for variance analysis and evaluation of impact on the project.

Stakeholder risk tolerances

Company work authorization systems

Government or industry standards (regulatory agency regulations, product standards, quality standards, and workmanship
standards).

4. Organizational process assets that can influence this process:

Issue and risk management procedures,

Financial control procedures (time reporting, accounting codes, expenditure and disbursement reviews,
and standard contract provisions),

Organization communication requirements,

Risk control procedures (risk categories, probability and impact matrix), Issue and risk management
procedures

Process measurement database (for benchmarking measurement data on processes)

Lessons learned database.


75

Monitor and Control Project Work


Tools and Techniques
Expert judgment

The project management team uses expert judgment to interpret the information provided by
the monitor and control process. The project manager, along with the team, determines the actions
required to ensure project performance matches with the expectations detailed in the project
management plan.
Please Remember!

Although not mentioned specifically, we use here all the performance measurement, forecasting and
change control tools and techniques, including PMIS.

76

Monitor and Control Project Work


OUTPUT
1. Change requests
Variance Measurements resulting from this process may lead to following change requests:
a) Corrective action to bring expected future performance in line with project management plan.
b) Preventive action to reduce the probability of negative consequences associated with project
Risks.
c) Defect repair Corrective action to either repair the defect in a project component or
completely replace it.

Change requests are sent to ICC Process (CCB) for review and approval.
Change requests are sent to ICC for review and approval. Without review and approval of ICC, no change request can be
implemented.
Change requests, if approved, may:

Expand, adjust project or product scope,


Revise project management plan,
Revise project documents, or
Revise product deliverables

77

Monitor and Control Project Work


OUTPUT
2. Project management plan updates Revision of following may happen:

Baselines (Scope baseline, schedule baseline, cost performance baseline).

Subsidiary plans (such as schedule management plan, cost management plan, quality management plan).
3. Project document updates
Revision of following may happen:

Forecasts

Performance reports

Issue log

78

Perform Integrated Change Control


is Process of
Reviewing all change requests, approving
changes and managing changes to the
deliverables, project management plan,
project documents and the organizational
process assets.
79

Perform Integrated Change Control

Please Remember!
This process is performed from project inception through completion dealing with all types of
change related activities
One of the major purpose of this process is to carefully and continuously manage changes
and permit only approved changes to revise a baseline.
This is the only way to maintain the project management plan, the project scope statement
and other deliverables!

80

Perform Integrated Change Control


Inputs

Tools and Techniques

Outputs

1. Project Management Plan

1. Expert judgment

1. Change request status


updates

2. Work performance
Information

2. Change Control
Meetings

2. Project management
plan updates

3. Change Requests

4. Enterprise Environmental
Factors

3. Project document
updates

5. Organizational process
Assets
81

Configuration Management System


It includes any documented procedures and tools used to
apply technical & administrative directive & surveillance to
the following sub-processes:
Configuration Management sub-processes:

Configuration Identification
Configuration Control
Configuration Status Accounting / Reporting
Configuration Audit and Verification
82

Close Project or Phase


performing the project closure section of the
project management plan, or in multiphase
projects, closes out the portion of the project
scope and associated activities of that phase

83

Close Project or Phase


Inputs

Tools and Techniques

Outputs

1. Project management plan

1. Expert Judgment

1. Final product, service or


result transition

2. Accepted deliverables
3. Organizational process
assets

2. Organizational process
assets Updates

84

Close Project or Phase

Update all project records to reflect the final project status.


Capture & document lessons learned
Archive project documents
Complete final performance appraisal.
Update team member skills database
Send final invoicing advice to Finance.
Transfer or transition the projects product, service or results to the next phase (in the case of
phase closure) or to production or operations.
Confirm that all the project exit / completion criteria have been met.
Send out formal communication to all stakeholders that the projects product has been
accepted and the project is being formally closed.
The finished and unfinished deliverables must be transferred to the appropriate stakeholders.
85

Summary
Q&A
Discussions

86

Project Scope Management

Difficulty

Memorization

Exam Importance

Low

Medium

High

Project Scope Management


Scope Management
(Processes and their major output)
Collect requirements
=> Requirements documentation

Verify Scope
=> Accepted Deliverables

Define Scope
=> Project scope statement

Control Scope
=> Change requests

Create WBS
=> WBS

88

Project Scope Management


The Concept
It is primarily concerned with
DEFINING AND CONTROLLING
WHAT IS AND IS NOT INCLUDED
IN THE PROJECT!
89

Project Scope Management

Why it is so important ?

90

Project Scope Management

Projects success is directly influenced


by the care taken in capturing
project and product requirements!

91

Project Scope Management Processes


Initiating Planning

Executing

Monitoring and
Controlling

Collect Requirements

Verify Scope

Define Scope

Control Scope

Closing

Create WBS

92

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

93

Collect Requirements
Inputs

Tools and Techniques

Outputs

1. Project Charter

1. Interviews
2. Focus groups
3. Facilitated workshops
4. Group creativity
techniques
5. Group decision-making
techniques
6. Questionnaires & surveys
7. Prototypes
8. Observations
9. Documents Analysis
10. Reverse Engineering

1. Requirements
Documentation

2. Stakeholder Register

2. Requirements
Management Plan
3. Requirements
Traceability Matrix

94

Requirements Management Plan

Process
Traceability
Change Control
Requirements Attributes
Prioritization
Metrics
95

Define Scope
Developing a detailed scope statement as the
basis for future project decisions

96

Define Scope
Inputs

Tools and Techniques

Outputs

1. Project Charter

1. Product Analysis

1. Project Scope Statement

2. Requirements
documentation

2. Alternatives
Identification

2. Project document
updates

3. Organizational Process
Assets

3. Expert Judgment

4. Facilitated workshops

97

Project Scope Statement


Product Scope Description
Project Deliverables
Tangible deliverables
Intangible deliverables

Project Boundaries
Product Acceptance Criteria
Project Assumptions
Project Constraints
98

Project Scope Statement


Got it wrong !

99

Create WBS
Is the process of subdividing the major project deliverables
and project work into smaller, more manageable
components
The lowest level of the WBS is referred to as a work package.
For every work package a WBS dictionary is compiled.
The scope baseline consists of the approved detailed project
scope statement, WBS and WBS dictionary.

100

Create WBS
PURPOSE ?

101

Create WBS
PURPOSE
1. IMPROVES accuracy of time, cost, and resource estimation
2. DEFINES a baseline for measuring and controlling performance!
3. FACILITATES unambiguous responsibility assignments!

102

Create WBS

Increases final project cost due to undesirable changes that also spoil project rhythm !
103

WBS
Work Breakdown Structure
A deliverable-oriented hierarchical decomposition
of work to be executed by the project team to:
create required deliverables
accomplish project objectives

104

WBS
WBS
WBS organizes and defines the total scope and
represents specified in the current approved
Scope Statement!
What is a work package?
Lowest level of WBS. A work package can be
scheduled, cost estimated, monitored, and
controlled.
105

Work Breakdown Structure

106

Work Breakdown Structure


In WBS
Each descending level provides increasingly detailed definition of project work.
Planned work at lowest level WBS Components (work package) is:
Scheduled
Resource Allocated
Cost estimated
Monitored & Controlled
Tracked

107

Create WBS
Inputs

Tools and Techniques

Outputs

1. Project Scope Statement

1. Decomposition

1. WBS

2. Requirements documentation

2. WBS Dictionary

3. Organizational Process
Assets

3. Scope Baseline
4. Project document
updates

108

WBS
Decomposition
-- process of breaking down major project deliverables or sub-deliverables
into smaller, manageable components
WBS Component
An entry in the WBS that can be at any level.

Work Package
A deliverable at the lowest level of each branch of the WBS.

Control Account (CA)


A management control point in the WBS, typically at any level above the work
package level, that is tracked and compared to earned value for
performance measurement.
109

WBS
WBS Dictionary
A document that describes each component in the WBS.

Code of Accounts
The numbering system used to uniquely identify each component of the WBS.

Scope Baseline
An approved specific version of the Scope Statement and its associated WBS
and WBS Dictionary.

110

Verify Scope
is the process of obtaining the stake holder's
formal acceptance of the completed project
scope and associated deliverables

111

Verify Scope
Inputs

Tools and Techniques Outputs

1. Project Management
Plan (Scope Baseline)

1. Inspection

2. Requirements
documentation

1. Accepted deliverables
2. Change requests
(Defect Repair)
3. Project document updates

3. Requirements
Traceability Matrix
4. Validated deliverables

112

Verify Scope vs. Perform Quality Control


Verify Scope

Perform Quality Control

Concerned with acceptance of work


results.

Concerned with correctness of work


results.

Performed at the end of a phase or


end of the project.

Performed throughout the project


but can also be performed in parallel
with Scope Verification.

Performed by the customers and users.

Performed by project QC team.

113

Control Scope
Concerned with influencing the factors that
create project scope changes and controlling
the impact of those changes

114

Control Scope
Inputs

Tools and
Techniques

Outputs

1. Project Management Plan

1. Variance analysis

1. Work performance
measurements
2. Organizational process
assets updates
3. Change requests
4. Project Management
plan Updates
5. Project document
updates

2. Work performance Information


3. Requirements documentation
4. Requirements Traceability Matrix
5. Organizational process assets

115

Summary
Q&A
Discussions

116

Project Time Management

Difficulty

Memorization

Exam Importance

High

High

Medium

Project Time Management

Project Time Management

Lets Get Started!

Project Time Management


Time Management
(Processes and their major output)
Define Activities
Activity List
=> Activity Attributes

Estimate Activity Durations


=> Duration Estimates

Sequence Activities
=> Project Network Diagrams

Develop Schedule
Project Schedule
Schedule Baseline

Estimate Activity Resources


Resource Requirements
Resource breakdown structure

Control Schedule
Work performance measurements

119

Project Time Management

Purpose?

120

Project Time Management

Timely completion of the project.

121

Project Time Management


In simple words the project time management processes describe how to
monitor and control time spent within a project.
Every resource on the project needs to know what to do and when.
Without an agreed and realistic schedule, time may be wasted waiting for
predecessor tasks to complete or tasks may be done out of sequence,
leading to rework and additional costs.

Using the Time Management processes, the amount of time being spent
by the project team can be controlled, which will increase the chances of
delivering the project on time and as scheduled.

122

Project Time Management Processes


Initiating Planning
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule

Executing

Monitoring and
Controlling

Closing

Control
Schedule

123

Define Activities
Identifying the specific schedule activities that
must be performed to produce various project
deliverables

124

Define Activities
Inputs

Tools and Techniques

Outputs

1. Scope Baseline

1. Templates

1. Activity list

2. Enterprise
environmental factors

2. Decomposition

2. Activity Attributes

3. Expert Judgment

3. Milestone List

3. Organizational process
Assets

4. Rolling Wave Planning

125

Define Activities - OUTPUT


ACTIVITY LIST
Consists of all the schedule activities to be performed to complete the
project.
Includes the activity identifier and a scope of work description for each
activity in sufficient detail to help team members understand what
work is required to be accomplished!

126

Define Activities - OUTPUT


Activity attributes

Extend the description of each activity by identifying multiple components


associated with each activity.
Please note: components for each activity evolve over time. During initial
stages of the project they include: activity ID, WBS ID, and activity name.

127

Define Activities - OUTPUT


Activity attributes
When completed they may include:
1) activity codes, activity descriptions
2) predecessor, successor, logical relationships
3) leads and lags
4) resource requirements
5) imposed dates
6) Constraints, and assumptions.

128

Define Activities - OUTPUT


Activity attributes
Question: What is the use of activity attributes?
Answer:
1) Used to identify the person responsible, geographical area, and activity
type such as level of effort (LOE)
2) Used for schedule development.
3) Used for selecting, sorting, ordering in various ways within reports.

129

Define Activities - OUTPUT


Milestone list
Identifies all milestones and indicates:
- Mandatory milestones (in contract)
- Optional milestones (as per project requirements/historical information)
Milestones list is a component of project management plan
Milestones are used in schedule mode

130

Sequence Activities
Identifying and documenting dependencies
among schedule activities

131

Sequence Activities
Inputs

Tools and Techniques

Outputs

1. Project Scope Statement

1. Precedence
Diagramming Method
(PDM)

1. Project Schedule
Network Diagrams

2. Activity list
3. Activity attributes

2. Schedule Network
Templates

4. Milestone list
5. Organizational process
Assets

3. Dependency
Determination

2. Project document
updates
a. Activity List
b. Activity Attributes
c. Risk Register

4. Applying Leads & Lags


132

Dependency Determination
Mandatory Dependency or Hard Logic
Discretionary Dependency or Soft Logic or
Preferred Logic or Preferential Logic
External Dependency

133

Precedence Relationship
Finish-to-Start
Start-to-Start
Finish-to-Finish
Start-to-Finish

134

Gantt Chart

135

Estimating Activity Resources


Estimating the type & quantities of resources
required to perform each schedule activity

136

Estimating Activity Resources


Inputs

Tools and Techniques

Outputs

1. Activity list

1. Expert judgment

1. Activity Resource
Requirements

2. Activity Attributes

2. Alternatives analysis

3. Resource calendars

3. Bottom-up estimating

2. Resource Breakdown
Structure (RBS)

4. Enterprise
environmental factors

4. Published estimating
data

3. Project document
updates

5. Organizational process
Assets

5. Project management
Software
137

Estimate Activity Durations


estimating the number of work periods that
will be needed to complete individual
schedule activities

138

Estimate Activity Durations


Inputs

Tools and Techniques

Outputs

1. Project Scope Statement


2. Activity list
3. Activity attributes
4. Activity resource
requirements
5. Resource Calendars
6. Enterprise
environmental factors
7. Organizational process
Assets

1. Expert judgment

1. Activity duration
estimates

2. Analogous estimating
3. Parametric estimating

2. Project document
updates

4. Three-point estimates
5. Reserve analysis

139

Estimation Techniques
Estimate is a quantitative assessment of
the likely amount or outcome. It should
always include some indication of
accuracy (e.g., plus/minus a certain
percentage).

140

Estimation Techniques

Analogous (Top down)


Parametric
Bottom Up
Three Point Estimates
PERT Estimate = (O + 4M + P) / 6

141

Estimation Techniques
Analogous (Top down) - an estimate done using the values of parameters from
previous experiences with similar activities.
Parametric - uses a statistical relationship between historical data and other
variables to calculate an estimate for activity parameters e.g. multiplying the
planned work to be performed by the historical cost per work unit to obtain an
estimated cost value.
Bottom Up Estimating based on individual work packages of the WBS and rolledup to get the total estimate for the project. This estimate is normally the most
accurate because it is based on estimating at detail level.
Three Point Estimates

PERT Estimate = (O + 4M + P) / 6

142

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

143

Develop Schedule
Inputs

Tools and Techniques

Outputs

1. Project Schedule Network


Diagrams
2. Activity duration estimates
3. Activity resource
requirements
4. Activity list
5. Activity attributes
6. Resource calendars
7. Enterprise environmental
factors
8. Organizational process
assets
9. Project Scope Statement

1. Schedule network
analysis
2. Schedule compression
3. What-if scenario analysis
4. Resource levelling
5. Critical Path Method
6. Critical Chain Method
7. Applying leads & lags
8. Scheduling tool

1. Project schedule
2. Schedule baseline
3. Schedule data
4. Project document
updates

144

Project Network Diagrams


Pictorial representation of project activities
A summary description of Sequence Activities sequencing approach
accompanies them
Unusual sequences, if any, are properly narrated
A network diagram is traditionally known as PERT Chart, however PERT
(program evaluation and review technique was a particular type of
network diagram using weighted average

145

Project Network Diagrams


Start

A
5 wk

B
3 wk

E
12 wk

F
4 wk

C
4 wk

G
6 wk

H
2 wk

D
8 wk

I
4 wk

J
3 wk

K
5 wk

L
2 wk

Finish

146

Critical Path
What is Critical Path
Importance
Relation to Risk

147

Critical Path
What is Critical Path
It is the longest path in the project network diagram which represents the shortest time in
which the project can be done - PMBOK

Importance
Relation to Risk
Nature of Critical Path

Critical Path changes while tracking


Changes while change in scope of works
Multiple Critical Paths
Changes while monitoring!
148

Critical Path
Longest duration path
Shortest time for Project to finish

149

Critical Path Method


Forward Pass
Backward Pass
Calculate Float
Total Float is the time a single task can be delayed without delaying project completion.
Free Float is the time a single task can be delayed without delaying the early start of the successor task.

Identify the critical path

150

Float or Slack
Float (Total Float) or Slack(Total Slack)
The amount of time a task can be delayed without
delaying the project completion date.

Free Float or Free Slack


The amount of time a task can be delayed without
delaying the Early Start date of its successor, i.e.
without affecting the float of its successor tasks.
151

Float or Slack

152

Exercise

153

Solution Critical Path

154

Solution ES, EF, LS, LF

155

Schedule Compression
Schedule compression is the shortening of the project
schedule without affecting the project scope.

Crashing
Adding more resources to the Critical Path tasks.
Fast Tracking
Doing activities on the Critical Path, in parallel, that would normally be done in
sequence

156

Control Schedule

Determine 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 occur

157

Control Schedule
Inputs

Tools and Techniques

Outputs

1. Project Management
Plan
a. Schedule Baseline
b. Schedule Management
Plan

1. Performance reviews
2. Variance analysis
3. Project management
software
4. Schedule compression
5. What-if scenario analysis
6. Resource levelling
7. Adjusting leads & lags
8. Scheduling tool

1. Work performance
measurements
2. Organizational process
assets updates
3. Change requests
4. Project management
plan updates
5. Project document
updates

2. Work performance
information
3. Organizational process
assets

158

Summary
Q&A
Discussions

159

Project Cost Management

Difficulty

Memorization

Exam Importance

High

High

High

Project Cost Management Processes


Cost Management
(Processes and their major output)
Estimate Costs
Activity cost estimates
Determine Budget
Cost performance baseline
Funding requirements
Control Costs
Work performance measurements
Budget forcasts

161

Project Cost Management Processes


Initiating Planning
Estimate Costs

Executing Monitoring
Closing
and Controlling
Control Costs

Determine Budget

162

Estimate Costs
Developing an approximation of the costs of
the resources needed to complete project
activities

163

Estimate Costs
Inputs

Tools and Techniques

Outputs

1. Scope Baseline
2. Project schedule
3. Human Resource Plan
4. Risk Register
5. Enterprise
environmental factors
6. Organizational process
assets

1. Expert judgment
2. Analogous estimating
3. Parametric estimating
4. Bottom-up estimating
5. Three-point estimates
6. Project management
estimating software
7. Vendor bid analysis
8. Reserve analysis
9. Cost of quality

1. Activity cost estimates


2. Basis of estimates
3. Project document
updates

164

Determine Budget
aggregating the estimated costs of individual
activities or work packages to establish a cost
baseline

165

Determine Budget
Inputs

Tools and Techniques

Outputs

1. Scope Baseline
2. Activity cost estimates
3. Basis of estimates
4. Project Schedule
5. Resource calendars
6. Contracts
7. Organizational process
assets

1. Cost aggregation

1. Cost Performance
Baseline

2. Reserve analysis
3. Expert judgment
4. Historical relationships

2. Project funding
requirements
3. Project document
updates

5. Funding limit
reconciliation

166

Control Costs

influencing the factors that create changes to cost baseline,


ensuring change is agreed and managing the change.
also searches causes of +ve and ve variances
Any increase to the authorized budget can only be approved
through the Perform Integrated Change Control Process.

167

Control Costs
Inputs

Tools and Techniques

Outputs

1. Project management
plan

1. Earned Value
Management (EVM)
2. Forecasting
3. To-Complete
Performance Index (TCPI)
4. Performance reviews
5. Variance analysis
6. Project management
software

1. Work performance
measurements
2. Budget forecasts
3. Organizational process
assets updates
4. Change requests
5. Project Management
Plan updates
6. Project document
updates

2. Work performance
information
3. Project funding
requirements
4. Organizational process
assets

168

Summary
Q&A
Discussions

169

Project Quality Management

Difficulty

Memorization

Exam Importance

Medium

Medium

High

Project Quality Management


Quality Management
(Processes and their major output)
Plan Quality
Quality management plan
Quality metrics
Quality checklists
Perform Quality Assurance
Change requests
Perform Quality Control
Quality control measures
Validated changes
Validated deliverables

171

Standard Definition of Quality


Quality is the degree to which a set of inherent characteristics
fulfil requirements - PMBOK Guide 4th edition (Glossary)
Conformance of requirements of the customer Philip Crosby
Predictable uniformity & dependability at low cost and suited to
the market W. Edwards Deming
Fitness for use Joseph Juran

172

Quality Vs. Grade


Quality is the degree to which a set of inherent characteristics fulfill requirements,
whereas, grade is a category assigned to products or services having the same

functional use but different technical characteristics:


Low grade: Limited number of features

Low quality: Defective deliverables, poor documentation


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

Definition of Project Quality Management


Quality is a combination of:
Conformance to requirements - Crosby
Fitness for use Juran
Predictable degree of uniformity and dependability at low cost and suited to the market Deming

Giving extra to the customer vs. Project Scope (Gold-plating)


Is discouraged by PMI
174

Steps of Project Quality Management


Project Quality Management processes include all the activities of the performing organization that determine
quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was
undertaken. PMI

175

Definition of Project Quality Management

Project Quality Management deals with quality


processes, roles and responsibilities and quality goals of
the organization

Project quality management addresses both:


a) Management of the project
b) Management of projects product

We MUST succeed in meeting quality requirements for


both:
a) Project
b) Product of the project

Impact of Poor Quality


Increased Cost
Low customer
satisfaction

177

Project Quality Management


Optimal Quality Level
Quality comes at a cost
Optimal Quality is reached at the
point where the incremental revenue
from improvement equals the
incremental cost to secure it.

178

Project Quality Management Processes


Initiating

Planning

Executing

Monitoring and Controlling

Plan Quality

Perform Quality
Assurance

Perform Quality Control

Closing

Plan Quality identifying and planning the implementation and tailoring of the
existing quality system to suit the current project

Perform Quality Assurance Execute the quality plan developed in the previous step
Perform Quality Control Monitoring and controlling the quality processes to ensure
that they comply with standards. It also is responsible for identifying corrective and
preventive actions for non-compliance

179

Project Quality Management Processes


Initiating

Planning

Executing

Monitoring and Controlling

Plan Quality

Perform Quality
Assurance

Perform Quality Control

Plan Quality

Vs. Perform Quality Assurance Vs. Perform Quality Control

Determine a Plan for the


Quality.

Determine if the Project is complying Measure specific project results


with the Organizational (as well as
against standards.
Project) policies and procedures.

Major task is preparation of


Quality Management Plan.

Major task is conducting regular


project Audits.

Closing

Major activity is defect repair and


measuring whether the quality
indicators are improving or not.

Results of the Audit are corrective


and preventive actions.

180

Plan Quality
identifying which quality standards are
relevant to the project and determining how
to satisfy them

181

Plan Quality
Inputs

Tools and Techniques

Outputs

1. Stakeholder Register
2. Scope Baseline
3. Schedule Baseline
4. Cost Performance
Baseline
5. Risk Register
6. Enterprise
environmental factors
7. Organizational process
assets

1. Cost-benefit analysis
2. Benchmarking
3. Design of Experiments
4. Cost of Quality (CoQ)
5. Control Charts
6. Statistical sampling
7. Flowcharting
8. Proprietary quality
management
methodologies
9. Additional quality
planning tools

1. Quality Management
Plan

2. Quality metrics
3. Quality checklists

4. Process Improvement
Plan
5. Project document
updates
182

Plan Quality - Inputs


1.
a)
b)
c)

Enterprise environmental Factors


provide:
Standards and regulations
Rules, standards, and guidelines
specific to the application area, and
Working/ operating conditions of the
project/ product which may affect
quality.

2. Organizational process assets provide:


a) Quality policy, procedures and
guidelines,
b) historical database, and
c)
lessons learned.

3. Scope Baseline.
a) Scope statement: contains the product description, major project
deliverables, and acceptance criteria. The product description contains
details of technical issues and other concerns that can affect quality planning.
The definition of acceptance criteria can significantly increase or
decrease project costs and quality costs. Satisfying acceptance criteria means
the needs of the customer have been met.
b)

WBS: identifies the deliverables, the work packages and the control accounts
used to measure project performance.

c)

WBS dictionary: defines technical information for WBS elements and must be
considered during quality planning.

183

Plan Quality - Inputs


4. Cost Performance baseline

Documents the accepted time phase used to measure cost performance.

Quality must be achieved within this time-phased budget.

5. Risk Register

Provides threats and opportunities that may impact quality requirements


6. Schedule Baseline

Accepted schedule within which quality parameters should be achieved.

7. Stakeholder Register

Identifies stakeholders with a particular interest , or impact on quality.

184

Plan Quality Tools


Cost/ Benefit analysis
a business case for each quality that compares the cost to the benefit.
COSTS
Training
Surveys
Studies
Appraisal
Design Review

BENEFITS
Less rework
Lower costs
Higher productivity
Increased stakeholder satisfaction

185

Plan Quality Tools


Benchmarking
The process of comparing one's project/business processes and performance metrics to industry
bests and/or best practices from other project/industries.
Purpose: To generate ideas for improvements and offer standards to measure performance.
Method: We compare the actual or planned projects practices to those of other projects.

Sources: These projects can be:


a) within performing organization or outside
b) Within same application area or in another Application area

186

Plan Quality Tools


Design of Experiments
An analytical technique that identifies the elements, or variables, that will have impact on overall
project outcomes.

Generally, this method is used concerning the product of the project


but can also be applied to project management processes.
This process designs and sets up experiments to determine the ideal
solution for a problem utilizing a limited number of sample cases.

187

Plan Quality Tools


Cost of Quality
Cost of quality includes all costs incurred over the life of the Product by investing in preventing
non conformance to requirements and ensuring that the product conforms to requirements.

Cost of Conformance
Quality Training
Inspection
Testing

Cost of Non Conformance


Rework
Scrap
Warranty Cost

This is the money spent during the Project


to avoid failures

This is the money spent during and


after the Project be cause of failures

188

Plan Quality Tools


Flow Charting
Show the logical steps needed to accomplish an objective and interrelation of individual elements
of a system..
Purpose - These charts assist project team to
assess the type and area where quality
problems may appear.

189

Plan Quality Tools


Histogram
A histogram is a vertical bar chart showing how often a particular variable occurred.
Purpose - Histograms are used to plot density
of data, and often for density estimation,
estimating the probability density function of
the underlying variable.

190

Plan Quality Tools


Proprietary quality management methodologies
Six Sigma
Lean Six Sigma
Quality Function Deployment.
CMMI, etc

Standard deviation is used to measure how far


the data is from the mean.
Sigma is another name for Standard deviation.
In any such distribution, if you go one sigma
above or below the mean, it covers 68% data.
At Six sigma, the distribution covers 99.99985%
of the data. So if a company operates at
6sigma, less than 3.4 defects are expected from a
sample of 1 million.
191

Plan Quality Tools


Additional quality planning tools
Flowcharting
Force field analysis
Matrix diagrams
Nominal group techniques
Affinity diagrams
Prioritization techniques

192

Plan Quality Outputs


Quality management plan
Describes how the project management team will implement its quality policy.
Details the project quality system that includes:
Organization structure
Responsibilities
Procedures
Processes, and
Resources (required to implement project quality management)

193

Plan Quality Outputs


Quality metrics (Operational definitions)
A quality metrics is an operational definition that describes, in very specific
terms a project or product attribute and how the quality control will measure it.
Examples:
On-time performance,
Budget control,
Defect frequency,
Failure rate,
Availability,
Reliability, and
Test coverage.

194

Plan Quality Outputs


Quality Checklists
It is a component specific, structured tool used to verify a set of required steps
has been performed.
Examples:
A do this list, or have you done this monitor!
These lists ascertain consistency in frequently performed tasks.
Most organizations have it, or you can get one from commercial service
providers or professional associations.

195

Plan Quality Outputs


Process improvement plan
Details steps for analyzing processes to identify activities which enhance their
value.

Project document updates


Stakeholder Register.
Responsibility Assignment Matrix

196

Perform Quality Assurance


applying the planned and systematic quality
activities to provide confidence to
stakeholders that the project will satisfy
quality standards

197

Perform Quality Assurance


Inputs

Tools and Techniques

Outputs

1. Project Management
Plan

1. Plan Quality Tools &


Techniques

1. Organizational process
assets updates

2. Quality metrics

2. Perform Quality Control


Tools & Techniques

2. Change requests

3. Work performance
information
4. Quality control
Measurements

3. Quality Audits
4. Process Analysis

3. Project Management
Plan updates
4. Project document
updates

198

Perform Quality Control


monitoring specific project results to
determine whether they comply with relevant
quality standards and identifying ways to
eliminate causes of unsatisfactory
performance

199

Perform Quality Control


Inputs

Tools and Techniques

Outputs

1. Project Management Plan


2. Quality metrics
3. Quality checklists
4. Work performance measurements
5. Approved change requests
6. Deliverables
7. Organizational process assets

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

1. Quality control measurements


2. Validated deliverables
3. Validated changes
4. Organizational process assets
updates
5. Change requests
6. Project Management Plan
updates
7. Project document updates

Cause and Effect diagram


Control Chart
Flowcharting
Histogram
Pareto Chart
Run chart
Scatter Diagram
Statistical sampling
Inspection
Approved change requests
Review

200

Tools- Cause and effect diagram


Also called
Fish Bone Diagram
Ishikawa Diagram

Used to identify the root cause


of a problem or defect.
Used for proactive analysis
quality planning and assurance

Used for reactive analysis


quality control

Encourages group participation


201

Tools- Control Chart


Purpose of Control Chart
Used to determine whether or not process
is stable or has predictable performance.
Upper and lower specification are set
based on the requirements, reflecting
minimum and maximum values allowed.

202

Tools- Control Chart


There may be penalties for crossing these limits.
For repeatable processes are generally +/- 3 sigma!

203

Tools- Flow Charting

Show the logical steps


needed to accomplish an
objective and interrelation
of individual elements

Plan Quality Tools &


Techniques of a system.

These charts assist project


team to assess the type and
area where quality problems
may appear.

204

Tools- Pareto Chart


Pareto Chart is a type of Histogram
where the plotted values are arranged
in descending order.

Represents the most common sources


of defects 80-20 Rule.

Rank-ordered histogram used


to prioritize corrective action.

Used to separate the vital few


(20% causes) from the trivial
many (80% causes).

205

Tools- Scatter Diagram

Purpose - Analyzing relationships between


two variables plotted on the horizontal axis
and on the vertical axis. The pattern of their
intersecting points can graphically show
relationship patterns.

Used to examine theories about causeand-effect relationships and to search for


root causes of an identified problem.

Used to design a control system to ensure


that gains from quality improvement efforts
are maintained.

206

Tools- Statistical Sampling

It involves choosing part of a population of interest for inspection.


Sample frequency and sizes should be determined during the plan quality process
so the cost of quality will include the no. of tests, expected scrap, etc.

207

Tools- Statistical Sampling


Prevention
Keeping errors out of the process

Inspection
Keeping errors out of the hands of the customer

Attribute or Discrete (Countable) sampling


The result conforms or it does not

Variable or Continuous (Measurable) sampling


The result is rated on a continuous scale that measures the degree of
conformity

208

Tools- Inspection

An inspection is, most generally, an organized


examination or formal evaluation exercise.
Involves the measurements, tests, and gauges
applied to certain characteristics in regard to an
object or activity.
The results are usually compared to specified
requirements and standards for determining
whether the item or activity is in line with these
targets.
Inspections are usually non-destructive.

209

Summary
Q&A
Discussions

210

Project HR Management

Difficulty

Memorization

Exam Importance

Low

Medium

Medium

Project Human Resources Management

Project Human Resource Management includes the processes that organize,


manage and lead the Project Team.

The Project Team is comprised of the people with assigned roles and
responsibilities for completing the project.

The Project Management is a subset of the Project Team and is responsible for the
project management and leadership activities such as initiating, planning,
executing, monitoring, controlling and closing the project.

212

Project Human Resources Management


Human Resource Management
(Processes and their major output)

Develop human resource plan


Human resource plan

Acquire project team


Project staff assignments

Develop project team


Team performance assessments

Manage project team


Change Requests

213

Project Human Resources Management- Challenges


THE CHALLENGES
Managing people on projects involves:

Key General Management Skills, like leading communicating, negotiating, problem solving,
and influencing organization.

Dealing with individuals- delegating, motivating, coaching, mentoring, etc.

Dealing with groups- team building, solving conflicts, etc.

Administering the human resource function. May also have the responsibility of HR
redeployment and release (depends on where they belong).
214

Project Human Resources Management Processes


Initiating

Planning

Executing

Develop Human Resource Plan

Acquire Project Team

Monitoring
and
Controlling

Closing

Develop Project Team


Manage Project Team

215

Develop Human Resource Plan


identifying and documenting project roles,
responsibilities and reporting relationships, as
well as creating the staffing management plan

216

Develop Human Resource Plan


Inputs

Tools and Techniques

Outputs

1. Activity resource
Requirements

1. Organization charts &


position descriptions

1. Human Resources Plan

2. Enterprise
environmental factors

2. Organizational theory
3. Networking

3. Organizational process
Assets

217

Develop Human Resource Plan


Organization chart

Project reporting relationships are


graphically displayed.

Depending on the project needs, you


can make it formal or informal;
broadly-detailed or highly-detailed.

E.g US $ 2 billion ABC Power Project,


has mind-boggling organization chart
for about 7000 People.

218

Develop Human Resource Plan


Resource Assignment Matrix

219

Develop Human Resource Plan


Organization theory

Informs us on the ways people, teams and organizations behave.


We must use proven principles to shorten the time needed to arrive at
outputs of HR planning. It makes planning more effective.
1. Goal-setting
2. Group Dynamics
3. Total Interactive Process

220

Develop Human Resource Plan


Networking
For effectiveness of staffing management plan options, we must understand
political and interpersonal factors that may impact them.

So, we need to use networking, such as:


1) Proactive correspondence
2) Luncheon meetings
3) Informal conversations
4) Trade conferences
Networking pays from start of the project till its completion!
221

Acquire Project Team


Obtaining the human resources required to
complete the project

222

Acquire Project Team


Inputs

Tools and Techniques

Outputs

1. Project Management
Plan

1. Pre-assignment

1. Project staff assignments

2. Negotiation

2. Resource calendars

3. Acquisition

3. Project Management
Plan Updates

2. Enterprise
environmental factors
3. Organizational process
Assets

4. Virtual teams

223

Virtual Team

Groups of people with a shared goal, who fulfill


their roles with little face-to-face interactions.

The virtual teams may be comprised of:


Members from same organization in widespread
geographic area
SMEs in different geographic areas
Home office employees
Employees work in different shifts
Consultants who work in different time-zones

224

Project staff assignments


Staffing management plan

Resource Histogram: may include a


horizontal line maximum number of hours
available from a particular resource.

If bars extend beyond the available resource


hours, we need to use resource levelling
(adding more resources or extending
schedule).

225

Develop Project Team


improving the competencies and interaction
of team members to enhance project
performance

226

Develop Project Team


improving the competencies and interaction
of team members to enhance project
performance

227

Develop Project Team


Inputs

Tools and Techniques

1. Project staff assignments 1. Team-building activities


2. Project Management
Plan

Outputs
1. Team performance
assessments

2. Interpersonal skills
3. Training

3. Resource calendars

2. Enterprise
environmental factors
updates

4. Co-location
5. Recognition & rewards
6. Ground rules
228

Stages of Team Development


Forming :
Getting to know each other
Understanding acceptable group behavior.
Stage of transition from individual to
member status
Leader's guidance is very important

Storming:
Authority/ Power struggles
Leaders guidance is important
229

Stages of Team Development


Norming:
Knowing each others strengths and
weaknesses
Agreement and Consensus on Goal
Leader facilitating role

Performing:
Team has a shared vision
Conflicts are resolved productively
Leader delegating and overseeing role
230

Stages of Team Development


Adjourning
The work is completed and the team breaks up.

231

Types of Power

Legitimate Power
Reward Power
Expert Power
Referent Power
Punishment Power
232

Types of Power

Legitimate Power
Also known as Formal Power or Positional
Power
Power comes from being formally in charge of
the project and the people

Expert Power
You are the subject matter expert
The team respects you for your expertise in a
specific area, and gives you credibility
because of that

233

Types of Power

Reward Power
Your ability to give award a bonus or another
kind of reward in order to motivate team
members

Punishment Power
Also known as Coercive Power
You correct a team member for poor behavior.
Do this one-on-one and in private

234

Types of Power

Referent Power
Youre standing in for someone who has more
position or power in the company
Also comes from the charismatic personality of
the project manager
Can also come when you ally with a powerful
person

235

Manage Project Team


tracking team member performance,
providing feedback, resolving issues and
coordinating changes to enhance project
performance

236

Manage Project Team


Inputs

Tools and Techniques

Outputs

1. Project Management
Plan

1. Observation &
conversation

1. Enterprise
environmental factors
updates

2. Project staff assignments 2. Project performance


appraisals
3. Team performance
assessments
3. Conflict management

2. Organizational process
assets updates

3. Change requests
4. Performance reports
5. Organizational process
Assets

4. Issue Log
5. Interpersonal skills

4. Project Management
Plan updates
237

Conflict Management
What is a conflict ?
In most projects, there will be instances when the project team, management, and other
stakeholders disagree on the progress, decisions, and proposed solutions within the project. Its
essential for the project manager to keep calm, lead, and direct the parties to a sensible solution
thats best for the project.
*

Issues created by people and issues to be avoided.

Need to be confronted in order to bring out real issues


and in turn resolve the issues.

238

Conflict Management Resolution Techniques

Confrontation or Problem Solving


The most effective way to resolve conflict
Long Lasting Solution
Most Time Consuming
Willingness needed from both parties to work
together
Win-Win

Compromising

Each party gives up something


Brings some degree of satisfaction to both parties
Not for resolving technical issues
Lose-Lose
239

Conflict Management Resolution Techniques


Smoothing or Accommodating
Emphasize commonalities and Deemphasizes
differences
Temporary Tactic
Does not resolve, only delays
Lose-Lose

Withdrawal or Ignoring

Walking away from the problem


Temporary Tactic
Does not resolve, only delays
Lose-Lose

240

Conflict Management Resolution Techniques


Forcing

Using Power, imposing decision


Can cause additional conflicts
Use when time is a major constraint
Win-Lose

241

Management Styles
Autocratic
Boss takes decisions and everyone follows;
Subordinates inputs and desire are not taken into
consideration.

Laissez-Faire (Delegating)
Team takes the decisions; enhances free thinking.

Democratic
Team participates in decision making process
Both management and staff is involved in making
decisions.
242

Motivation

The internally generated feeling stimulating


us to act

Creates and maintains the desire to move


toward goals

243

Maslow's Hierarchy of needs

Self Actualization
Self fulfilment, growth, learning, etc.

Esteem
Accomplishment, respect,
attention, appreciation, etc.

Social
Love, affection, approval, friends,
association, etc.

Safety
Security, stability, freedom from
threat, etc.

Physiological
Air, water, food, house, clothing,
etc.
244

Frederick Herzberg Hygiene and Motivating factors

Hygiene factors

Management supervision
Company policy & administration
Positive working condition
Good interpersonal relationship
Job security
Status within the organization
Compensation
Personal life

Presence of hygiene factors will not insure higher productivity but


absence of these factors may result in poor productivity.

245

Frederick Herzberg Hygiene and Motivating factors


Motivating factors

Sense of achievements
Sense of recognitions
Environment for self working
Sense of responsibility
Opportunities of advancement
Opportunities for growth

Motivating factors give desired results if hygiene


factors exist.

246

Mc Gregors Theory X, Theory Y


Theory X
The average worker is inherently lazy and needs supervisions
The average worker dislikes work and avoids work whenever
possible
To induce adequate effort, the supervisor must threaten
punishment and exercise careful supervision
The average worker avoids increased responsibility and seeks to be
directed
Based on strict rules, performance incentives, rewards, threats to
job security

247

Mc Gregors Theory X, Theory Y


Theory Y
Workers are willing to do the job without continuous supervision
The average worker likes to be active and finds satisfaction on
job
Willing participation and self-direction towards achieving goals
and objectives
The average worker seeks opportunity for personal improvement
and self respect
Theory Y relies on worker participation in decision making
process and good manager-staff relationships.

248

William Ouchi Theory Z


Japanese Management Style

Lifetime Commitment
Collective Decision making
Individual Responsibility
Informal control with formalized performance measure
Holistic concern for the Employee

249

Victor Vroom Expectancy Theory


Motivation level of an individual depends on
The level of expectation of their efforts will result in a desired
outcome (Is the work important?)
The expectation that good work will be rewarded (Will I be
rewarded?)
Attractiveness of the reward (What is the value of the reward?)

Motivation will be high when all three factors


are high.

250

Summary
Q&A
Discussions

251

Project Communication Management

Difficulty

Memorization

Exam Importance

Medium

Medium

Medium

Project Communication Management Processes


Communications Management
(Processes and their major output)
Identify Stakeholders
Stakeholder register
Plan communications
Communications management plan

Distribute Information
(Send Information to stakeholders)

Manage stakeholders expectations


(Talk, discuss, clarify)
Report performance
Performance reports

253

Project Communication Management Processes


Initiating

Planning

Executing

Identify
Stakeholders

Plan
Communications

Distribute Information Report


Performance
Manage Stakeholder
Expectations

Monitoring
and
Controlling

Closing

254

Identify Stakeholders
Identifying all people, groups
and organizations impacted
by the Project or primary
users of the product or
service

255

Identify Stakeholders
Inputs

Tools and Techniques

Outputs

1. Project Charter

1. Stakeholder analysis

1. Stakeholder Register

2. Procurement documents 2. Expert judgment

2. Stakeholder
management Strategy

3. Enterprise
environmental factors

4. Organizational process
Assets

256

Plan Communications
Determining the information &
communications needs of
the project stakeholders

257

Plan Communications
Inputs

Tools and Techniques

Outputs

1. Stakeholder Register

1. Communication
requirements analysis

1. Communication
Management Plan

2. Communication
technology

2. Project document
updates

2. Stakeholder
management strategy
3. Enterprise
environmental factors

3. Communication models

4. Organizational process
Assets

4. Communication
methods

258

Communication Management Plan

Information to be communicated
Person responsible for communicating and receiving information (Single Point of
Contact)
Methods or technologies used to convey the information
Frequency of the communication and status reporting periods
How information requests will be met between two scheduled reporting periods
Escalation process and management chain for each level of escalation
Method of updating and refining the communications management plan
Communication constraints
Glossary of common terminology
259

Distribute Information
Making needed information available to
project stakeholders in a timely manner

260

Distribute Information
Inputs

Tools and Techniques

Outputs

1. Project Management
Plan

1. Communication
methods

1. Organizational process
assets updates

2. Performance reports

2. Information distribution
tools

3. Organizational process
Assets

261

Manage Stakeholders Expectations


managing communications to satisfy the
requirements of and resolving issues with
project stakeholders

262

Manage Stakeholders Expectations


Inputs

Tools and Techniques Outputs

1. Stakeholder Register

1. Communications
methods

2. Stakeholder management
strategy

1. Organizational
process
assets updates

2. Interpersonal skills
2. Change requests

3. Project Management Plan

4. Issue Log
5. Change Log

3. Management skills
3. Project Management
Plan updates
4. Project document
updates

6. Organizational process Assets


263

Report Performance
Collecting & distributing performance
information. This includes status reporting,
progress measurement and forecasting

264

Report Performance
Inputs

Tools and Techniques

Outputs

1. Project Management Plan

1. Variance analysis

1. Performance reports

2. Work performance
Information

2. Forecasting
methods

2. Organizational
process
assets updates

3. Work performance
Measurements

3. Communication
methods

4. Budget forecasts

4. Reporting systems

3. Change requests

5. Organizational process Assets


265

Communication Model

Message

Decode

Sender

Encode

Medium

Receiver

266

Communication Model

Sender
Receiver
Medium
Feedback
Noise
Encode
Decode

- The person who needs to initiate the communication


- The person who gets the message
- The thing used to transmit the message
- A response to a message
- Something that interferes with the message
- Modify a message so that it can be sent
- Modify a message that has been sent so that it can be
understood

267

Communication Channels
Channels = n(n-1)/2
n = the number of stake holders

268

Types of Communication
Formal Written
Informal Written
Formal Verbal
Informal Verbal
269

Non Verbal and Para lingual communications


Nonverbal Communication
Gestures, facial expressions,
and physical appearance

Para lingual Communication


Tone and pitch of your voice

270

Summary
Q&A
Discussions

271

Project Risk Management

Difficulty

Memorization

Exam Importance

Low

Medium

Medium

Project Risk
Project risk is an uncertain event or condition
that, if it occurs, has a positive or negative
effect on project objective
Negative risks are called threats, positive risks
are called opportunities.

273

Project Risk
Risk Management
(Processes and their major output)
Plan risk management
Risk management plan
Identify risks
Risk register

Plan risk responses


Risk register updates
Contract decisions
Monitor and Control risks
Risk register updates
Change requests

Qualitative Analysis
Risk register updates
Quantitative Analysis
Risk register updates

274

Project Risk What is Risk?

Travel Risk

Risks for entertainment

Risks in Space program

Risks at work place

Risks for entertainment

Risks at work place

Risk is uncertain and is everywhere!

275

Project Risk Management


Risk Management is the management of processes concerned with
conducting risk management planning, identification, analysis, responses,
and monitoring & control risk on a project.

Every risk has two attributes:


Probability (P) or Likelihood of Occurrence
Impact (I) or Consequence, if it occurs

The Severity of a risk (S) is a function of both Probability and Impact of


the risk, i.e. Risk Severity or Risk Exposure or Risk Score = P X I
276

Risk & Expected Monetary Value (EMV)


EMV = Probability x Impact (in units of money)
EMV calculates the average result of positive (opportunity) and negative
(threat) risks.
The EMV of opportunities are expressed as positive values, while those of
threats are negative.
EMV for a project is calculated by multiplying the value of each possible
outcome by its probability of occurrence and adding the products together.
A common use of this type of analysis is in decision tree analysis.
277

Risk & Expected Monetary Value (EMV)


Example:
There is a negative risk (threat) that has a 25% probability of prohibiting
the execution of work package ABC and if that risk occurs the impact of
not having executed the package is estimated at $10,000.
EMV = 25% * $10,000 = -$2,500.
There is also a positive risk (opportunity) that has a 10% probability of
speeding up the execution of work package ABC and if that happens it
will save the project $15,000.
EMV = 10% * $15,000 = +$1,500.
Therefore the EMV for work package ABC is S1,500 - $2,500 = -$1,000
278

Project Risk Management Processes


Initiating Planning

Plan Risk Management


Identify Risks

Perform Qualitative Risk Analysis

Executing

Monitoring
and
Controlling

Closing

Monitor
and
Control
Risks

Perform Quantitative Risk Analysis


Plan Risk Responses

279

Plan Risk Management


determining how to approach, plan and
execute the risk management activities for a
project

280

Plan Risk Management


Inputs

Tools and Techniques

Outputs

1. Project Scope Statement


2. Schedule Management Plan
3. Cost Management Plan
4. Communications
Management Plan
5. Enterprise environmental factors
6. Organizational process
assets

1. Planning meetings &


analysis

1. Risk Management Plan

281

Risk Management Plan


How risk identification, qualitative and quantitative analysis, response
planning, monitoring, and control will be performed.
This plan does not address responses to individual risks.
The risk management plan may include:
Risk Management Methodology
Defines the approaches, tools and data sources to be used to perform risk management
on this project.

Risk Management Team


Identify Risk Management team.

Roles and Responsibilities


Defines roles & responsibility of risk management team members.
282

Risk Management Plan

Budgeting
Establishes a budget for risk management for the project.

Timing
Risk management process timing and frequency.

Scoring and Interpretation


Scoring methods identified for qualitative and quantitative risk analysis. Methods and scoring must
be consistent.

Reporting Formats
Defines how the results of the risk management processes will be documented, analyzed, and
communicated to the project team, internal and external stakeholders, sponsors, and others.

Tracking
Define how all facets of risk activities will be tracked.
283

Identify Risks
determining which risks might affect the
project and documenting their characteristics

284

Identify Risks
Inputs

Tools and Techniques

Outputs

1. Risk Management Plan


2. Stakeholder Register
3. Scope Baseline
4. Activity duration estimates
5. Activity cost estimates
6. Schedule Management Plan
7. Cost Management Plan
8. Quality Management Plan
9. Project documents
10. Enterprise environmental factors
11. Organizational process assets

1. Documentation reviews

1. Risk Register

2. Information gathering techniques


3. Checklist analysis
4. Assumptions analysis
5. Diagramming techniques
6. SWOT analysis
7. Expert judgment

285

Identify Risks Risk Register

286

Examples of Risk
Schedule Risks

Task on Critical Path


Tasks which have several predecessors
Tasks that have minimal float or slack
Optimistically estimated tasks
Tasks with external dependencies
Tasks representing major milestones
Schedule that do not list the assumptions

287

Examples of Risk
Resource Risks

Tasks with one key individual assigned


Tasks using scarce resources
Tasks which require large amount of resources
Availability of tools and techniques

Scope Risks

Uncertainty of new technologies


Dynamics of customer requirements
Tasks with significant business impact
Extremely aggressive business requirement

288

Perform Qualitative Risk Analysis


prioritizing risks for subsequent further
analysis or action by assessing and combining
their probability of occurrence and impact

289

Perform Qualitative Risk Analysis


Inputs

Tools and Techniques

1. Risk Management Plan

1. Risk probability & impact 1. Risk Register Updates


assessment
2. Probability & impact
matrix
3. Risk data quality
assessment
4. Risk categorization
5. Risk urgency assessment
6. Expert judgment

2. Risk Register
3. Project Scope Statement
4. Organizational process
Assets

Outputs

290

Perform Quantitative Risk Analysis


numerically analyzing the effect on overall
project objectives of identified risks

291

Perform Quantitative Risk Analysis


Inputs

Tools and Techniques

Outputs

1. Risk Management Plan

1. Data gathering &


representation Techniques

1. Risk Register Updates

2. Risk Register
3. Schedule Management
Plan

2. Quantitative risk analysis


& modelling techniques
3. Expert Judgment

4. Cost Management Plan


5. Organizational process
assets
292

Plan Risk Responses


developing options and actions to enhance
opportunities and reduce threats to project
objectives

293

Plan Risk Responses


Inputs

Tools and Techniques

Outputs

1. Risk Management Plan

1. Strategies for negative


risks or threats

1. Risk Register updates

2. Risk Register

2. Strategies for positive


risks or opportunities
3. Contingent response
strategy
4. Expert judgment

2. Risk-related contract
decisions
3. Project Management
Plan updates
4. Project document
updates

294

Monitor and Control Risks


Tracking identified risks, Monitoring residual
risks, Identifying new risks, Executing risk
response plans and Evaluating their
effectiveness throughout the project life cycle

295

Monitor and Control Risks


Inputs

Tools and Techniques

Outputs

1. Project Management
Plan

1. Risk reassessment
2. Risk audits
3. Variance & trend analysis
4. Technical performance
measurement
5. Reserve analysis
6. Status meetings

1. Risk Register updates


2. Organizational process
assets updates
3. Change requests
4. Project Management
Plan updates
5. Project document
updates

2. Risk Register
3. Work performance
information
4. Performance reports

296

Personal Attitudes to Risk


Risk Averse
Risk Seeking
Risk Neutral

297

Contingency / Reserve
Contingency Reserve
A specific provision for future risk situations which may be planned for. This is kept at
Project Level. (Known Unknowns)

Management Reserve
A separately planned quantity of reserve in terms of money and time, to manage future
risk situations which may not be possible to predict. (Unknown Unknowns)

298

Summary
Q&A
Discussions

299

Project Procurement Management

Difficulty

Memorization

Exam Importance

High

Medium

High

Project Procurement Management


Procurement Management
(Processes and their major output)
Plan procurements
Procurement management plan
Statement of work
Conduct procurements
Selected sellers
Contract award

Administer procurements
Procurement Documents

Close procurements
Closed procurements

301

Project Procurement Management


the processes to purchase or acquire products, services or results
needed from outside the project team to perform the project work.
the contract management and change control processes required to
administer contracts or purchase orders issued by authorized
project team members.
administering any contract issued by an outside organization (the
buyer) that is acquiring the project from the performing
organization (the seller) and administering contractual obligations
placed on the project team by the contract.
302

Project Procurement Management Processes


Initiating

Planning

Executing

Monitoring
Closing
and Controlling

Plan
Procurements

Conduct
Procurements

Administer
Procurements

Close
Procurements

303

Plan Procurements
Determining what to purchase or acquire and
determining when & how

304

Plan Procurements
Inputs

Tools and Techniques

Outputs

1. Scope Baseline
2. Requirements documentation
3. Project Schedule
4. Activity cost estimates
5. Cost Performance Baseline
6. Activity resource
requirements
7. Risk Register
8. Risk-related contract decisions
9. Teaming agreements
10. Enterprise environmental
factors
11. Organizational process assets

1. Make-or-buy analysis

1. Procurement
Management Plan
2. Procurement Statements
of Work (SoW)
3. Make-or-buy decisions
4. Procurement documents
5. Source selection criteria
6. Change requests

2. Expert judgment
3. Contract types

305

Contract Types
FFP
Firm Fixed Price

FPIF
Fixed Price plus Incentive Fee

CPFF
Cost Plus Fixed Fee

CPIF
Cost Plus Incentive Fee

CPPC
Cost Plus Percentage Cost
306

Risk Associated with Contracts


FFP
FPIF
CPFF
CPIF
CPPC

Sellers Risk

Buyers Risk
307

Procurement Management Plan


It describes how the procurement processes will be managed,
right from developing procurement documentation (Plan
Procurements process) through Close Procurements.
Contents
Handling the make-or-buy decisions and linking them into the Activity
Resource Estimating & Schedule Development processes.
Types of contracts to be used.
Establishing the direction to be provided to the buyers on developing and
maintaining a contract Statement of Work (SoW).
308

Procurement Management Plan


Contents
Standardized procurement documents, if they are needed.
Assumptions and constraints that could affect planned purchases and
acquisitions.
Handling the lead times required to purchase or acquire items from sellers
and coordinating them with the Project Schedule Development.
Coordinating procurement with other project aspects such as scheduling and
performance reporting.
Identifying pre-qualified selected sellers, if any, to be used.
Managing multiple providers.
Procurement metrics to be used to manage contracts and evaluate sellers.
309

Procurement Documents

Invitation for bid (IFB)


Request for proposal (RFP)
Request for quotation (RFQ)
Tender notice
Invitation for negotiation
Contractor initial response

310

Conduct Procurements
obtaining information, quotations, bids, offers
or proposals, as appropriate

311

Conduct Procurements
Inputs

Tools and Techniques

Outputs

1. Make-or-buy decisions
2. Project Management
Plan
3. Procurement documents
4. Qualified seller list
5. Seller proposals
6. Source selection criteria
7. Project documents
8. Teaming agreements
9. Organizational process
assets

1. Bidder conferences
2. Proposal evaluation
techniques
3. Independent estimates
4. Expert judgment
5. Procurement
negotiations
6. Advertising
7. Internet search

1. Selected sellers
2. Procurement contract
award
3. Resource calendars
4. Change requests
5. Project Management
Plan updates
6. Project document
updates

312

Bidder Conference
They are meetings with prospective sellers prior to preparation of a bid or
proposal to clarify procurement requirements and provide responses to
sellers queries.
They are used to ensure that all prospective sellers have a clear, common
understanding of the procurement requirements. This makes the
evaluation of proposals easier.
Responses to sellers queries are incorporated into the procurement
documents as amendments.
Bidder conferences are also called contractor, vendor or pre-bid
conferences.
313

Advertising
Existing lists of potential sellers can often be
expanded by placing advertisements in
general circulation publications

314

Develop Qualified Seller List


They can be developed from the organizational
assets if such lists or information are readily
available.
Procurement documents can also be sent to
determine if some or all of the prospective sellers
have an interest in becoming a qualified potential
seller.
315

Screening System / Weighting System


Screening System
It involves establishing minimum requirements of performance for one
or more of the evaluation criteria, for instance, a prospective seller
might be required to propose a project manager who has specific
qualifications before the remainder of the proposal would be
considered.

Weighting System
It is a method for quantifying qualitative data to minimize the effect of
personal prejudice on seller selection.
316

Administer Procurements
Managing the contract and relationship between the buyer
and the seller
Reviewing and documenting how a seller is performing or has
performed to establish required corrective actions and
provide a basis for future relationships with the seller
Managing contract-related changes
When appropriate, managing the contractual relationship
with the outside buyer of the project
317

Administer Procurements
Inputs

Tools and Techniques

Outputs

1. Procurement documents
2. Project Management
Plan
3. Contract
4. Performance reports
5. Work performance
information
6. Approved change
requests

1. Contract change control


system
2. Procurement
performance reviews
3. Inspections & audits
4. Performance reporting
5. Payment systems
6. Claims administration
7. Records management
system

1. Procurement
documentation
2. Organizational process
assets updates
3. Change requests
4. Project Management
Plan updates

318

Administer Procurements

The Administer Procurements process ensures that the sellers performance meets contractual
requirements and that the buyer performs according to the terms of the contract.
Both the buyer and seller administer the contract to ensure that both it and the other party meet
their contractual obligations and that their own legal rights are protected. On larger projects with
multiple products and services, a key aspect of Procurement Administration is managing interfaces
among the various providers.
While a procurement administrator may be on the project team, this individual typically reports to
a supervisor from a different department, especially, if the performing organization is also the seller
of the project to an external customer.
Procurement Administration also has a financial management component that involves monitoring
of payments to the seller and ensures that seller compensation is linked to seller progress.
Procurement Administration also includes managing any early termination of the contracted work
(for cause, convenience or default) in accordance with the termination clause of the contract.

319

Close Procurements
completing & settling each contract, including
the resolution of any open items and closing
each contract applicable to the project or a
project phase

320

Close Procurements
Inputs

Tools and Techniques

Outputs

1. Project Management Plan

1. Procurement audits

1. Closed procurements

2. Procurement documentation

2. Negotiated
settlements

2. Organizational process
assets updates

3. Records management
System

321

Procurement Audits
It is a structured review of the procurement process from the
Plan Procurements process through Administer
Procurements.
The objective of the audit is to identify successes and failures
that warrant recognition in the preparation or administration
of other procurement contracts on the project or on other
projects within the performing organization.
322

Negotiation Techniques
Deadline
imposing a deadline to reach an agreement

Stalling
one party may claim that an agreement cannot be finalized because of
his limited authority

Fair and Responsible


a negotiator may claim that the price for a product is equitable
because thats what another company is paying.

323

Negotiation Techniques
Delay
are useful when tempers are beginning to flare, to divert from a
subject, etc (Ex: arrival of refreshments, request for break etc)

Withdrawal
one party may attack an issue, then retreat

Arbitration
a third party may be brought in when agreement cannot be reached.
(out of court settlement)

324

Negotiation Techniques
Fait Accompli
a party may claim that what is being asked for has already been
accomplished and cannot be changed

325

Single Source / Sole Source


Single Source
preferred seller

Sole Source
only one seller

326

Summary
Q&A
Discussions

327

Professional Responsibility

Difficulty

Memorization

Exam Importance

Low

Low

Medium

Philosophy
Project Manager should
Be a leader
Deal with issues in a direct manner
Act ethically and legally
Be open and upfront
Be professional Follow PMBOK Processes
329

Philosophy
Dont ask
What should I do in my organization?

Important Question

What should I do?


330

Code of Ethics and Professional Conduct


Applies to
All PMI Members
All Non Members
Who hold a PMI certification
Who apply to commence a PMI certification process
Who serve PMI in a volunteer capacity

331

Responsibility
Our duty to take ownership for
Decisions
we make or
fail to make

Consequences that result

332

Respect
Our duty to show high regards for
Ourselves
Others
Our Resources

333

Respect
An environment of respect results in:
Trust
Confidence
Performance Excellence
Fosters mutual cooperation
Diverse perspectives are encouraged and valued
334

Fairness
Our duty to make decisions
Impartially

Our conduct must be free from


Self interest
Prejudice
Favoritism
335

Honesty
Our duty to
Understand the truth
Act in a truthful manner

336

Professional Responsibility
Integrity Sticking to high moral principles
Dont give Bribe
Spread Knowledge, Share Knowledge, Mentor,
Teach, adopt best practices

337

Professional Responsibility

Be fair to everyone
Respect differences in a group
Resolve conflicts in favour of the customer
Dont hide things from stakeholders
Be ethical in all decisions
338

Quality should be checked by PM after an


activity or work package is complete

Sujoy

The project manager must spend time trying


to
Improve Quality

Sujoy

The Project Manager


must make sure the authorized approaches
and processes
are followed

Sujoy

You are required to understand that people


must be compensated for their work

Sujoy

You should spend time documenting


who should do what

Sujoy

Lessons Learned is
a
PMI Best Practice!!

Sujoy

Summary
Q&A
Discussions

345

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