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AGENDA
Day 1 PMP Exam Prep Introduction Project Management Framework *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management DAY 2 Project SCOPE Management Project TIME Management Project COST Management Project QUALITY Management DAY 3 Project COMMUNICATION Management Project HUMAN RESOURCE Management Project RISK Management Project PROCUREMENT Management DAY 4 Professional & Social Responsibility REVISION & QUIZ
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MAJOR PROJECT DOCUMENTS Other Project Documents (or Systems) Used by the Project
These systems could include tools, techniques, methodologies, resources (i.e. templates), procedures, documentation, tracking systems, approval levels, etc. Project Management Information System(PMIS) an information system, consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes. It is used by project management team to support all aspects of the project from initiating through closing, and can include both manual and automated systems.
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INTEGRATION PROCESSES
INTEGRATION PROCESS DEFINITIONS 4.1 Develop Project Charter that formally authorizes a project or a project phase. 4.2 Develop Project Management Plan the process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plan. 4.3 Direct & Manage Project Execution the process of performing the work defined in the project management plan to achieve the projects objectives.
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INTEGRATION PROCESSES
4.5 Monitor & Control Project Work
The
process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.
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INTEGRATION PROCESSES
PROCESSES BY PROCESS GROUP
Initiating Planning Executing Monitoring and controlling Closing
4.3 Develop 4.4 Direct and 4.5 Monitor Project Manage and Control Management Project Project work Plan Execution 4.6 Perform Integrated Change Control
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PROJECT CHARTER
What should a project charter address?
Project purpose or justification, Measurable project objectives and related success criteria,
High-level requirements, High-level project description, High-level risks, Summary milestone schedule, Summary budget, Project approval requirements, Assigned project manager, responsibility, and authority level, and Name and authority of the sponsor or other person(s) authorizing the project charter.
Formally authorizes a project (never changes)
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Inputs
Project statement of work
Business Case Contract Enterprise environmental factor Organizational process assets
Outputs
Project Charter
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Business Case:
Business case or similar document provides the necessary information from a business standpoint to determine whether or not the project is worth the required investment. Typically the business need and the cost-benefit analysis are contained in the business case to justify the project. For external project, the requesting organization or customer may write the business case. Business case is created as a result of one or more of the following: - Market demand - Organizational need - Customer request - Technological advance - Legal requirement - Ecological impacts - Social need
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Expert Judgement
It is available from many sources, including: Other units within the organization, Consultants, Stakeholders, including customers or sponsors, Professional and technical associations, Industry groups, Subject matter experts, and Project management office (PMO)
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Example:
Initial Investment (P) = $200,000 Cash Inflow (C) =$25,000 I quarter for 3 years n = # of periods Payback period (n) = P/C= $ 200,000 I $25,000 = 8 quarters or two years
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Opportunity Cost :
The cost of the opportunity that you picked What did you give up (your cost) for the project you selected? The amount you would have made if you picked the project with the next best NPV (expected value in today's money) Opportunity cost is always the second best alternative (doesn't take the third or subsequent projects into account)
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Consideration in order of priority: 1. IRR (highest positive) 2. NPV (highest positive) 3. Payback period (shortest)
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3. Project Management Information System (PMIS) 4. Expert Judgment Expert judgment is often used to assess inputs used to make the
Project Charter Available from many sources, including: Other departments in your organization Consultants Stakeholders Professional or technical associations and industry groups, i.e. PMI
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Project Charter
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INTEGRATION PROCESSES
PROCESSES BY PROCESS GROUP
Initiating
Planning
Executing
Closing
4.2 Develop 4.3 Direct 4.4 Monitor Project and Manage and Control Management Project Project work Plan Execution
INTEGRATION PROCESSES
PROCESSES BY PROCESS GROUP
Initiating
Planning
Closing
4.2 Develop 4.3 Direct 4.4 Monitor Project and Manage and Control Management Project Project work Plan Execution
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Inputs
Project Charter
Outputs
Project management Plan
Output from Planning processes Enterprise environmental factor Organizational process assets
PMP Prep Integration Slide 43
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Expert Judgment
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INTEGRATION PROCESSES
PROCESSES BY PROCESS GROUP
Initiating
Planning
Closing
4.2 Develop 4.3 Direct 4.4 Monitor and Manage and Control Project Project Management Project work Execution Plan
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Inputs
Project management plan
Outputs
Deliverables Work performance information Change requests Project management plan updates Project document updates
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OUTPUTS
Deliverables
Any unique & verifiable product, result or capability to perform a service that is identified in the project management planning documentation, and must be produced and provided to complete the project
Change Request
When issues are found while project work is being performed, change requests are issued which may modify project policies and procedures, project scope, project cost or budget, project schedule or quality. Other change requests cover needed preventive or corrective actions to forestall negative impacts later in the project. Request for a change can be direct or indirect, externally or internally initiated, can be optional or legally/contractually mandated.
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INTEGRATION PROCESSES
PROCESSES BY PROCESS GROUP
Initiating
Planning
Closing
4.2 Develop 4.3 Direct 4.4 Monitor Project and Manage and Control Project work Management Project Plan Execution
closing. Corrective or preventive actions are taken to control the project performance. Monitoring is an aspect of project management performed throughout the project. This process is concerned with: Comparing actual project performance against the project management plan Assessing performance to determine whether any corrective or preventive actions are indicated, then recommending those actions as necessary Analyzing, tracking, and monitoring project risks to make sure the risks are identified, their status is reported, and that appropriate risk response plans are being executed Maintaining an accurate, timely information base concerning the projects product (s) and their associated documentation through project completion Providing information to support status reporting, progress measurement, and forecasting Providing forecasts to update current cost and current schedule information Monitoring implementation of approved changes when and as they occur
Inputs
Project management plan
Outputs
Change Requests Project Management Plan updates Project documents updates
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Performance reports
Expert Judgment
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INTEGRATION PROCESSES
PROCESSES BY PROCESS GROUP
Initiating
Planning
Closing
4.2 Develop 4.3 Direct 4.4 Monitor Project and Manage and Control Management Project Project work Plan Execution
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Inputs
Project management plan
Outputs
Approved change requests Rejected change requests Project management plan (updates) Project scope statement (updates) Requested changes Approved preventive actions Approved corrective actions Approved defect repair Validated defect repair Deliverables
Requested changes Work performance information Recommended preventive actions Recommended corrective actions Recommended defect repair Deliverables
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23 Differen t Process
Change Request
Approved change Req. Project Mgmt. plan updated Scope statement updated
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INTEGRATION PROCESSES
PROCESSES BY PROCESS GROUP
Initiating
Planning
Closing
4.3 Develop 4.4 Direct 4.5 Monitor Project and Manage and Control Management Project Project work Plan Execution
CLOSE PROJECT
WHAT HAPPENS DURING PROJECT CLOSURE?
Finalize all activities completed across all process groups to formally close the project or project phase Transfer completed or cancelled project as appropriate Establish procedures to coordinate activities needed to verify and document the project deliverables, to coordinate and interact to formalize acceptance of those deliverables by the customer or sponsor Investigate and document the reasons for actions taken if a project is terminated before completion
CLOSE PROJECT
PROCEDURES TO PERFORM CLOSURE ACTIVITIES
Administrative Closure Procedures
integrated activities needed to collect project records analyze project success or failure gather lessons learned archive project information for future use by organization
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CLOSE PROJECT
Tools &Techniques
Project management methodology Project management Information system Expert judgement
Inputs
Project management plan
Outputs
Administrative closure
Contract documentation Enterprise environmental factors Organizational process assets Work performance information Deliverables
procedure Contract closure procedure Final product, service or result Organizational process assets (updates)
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CLOSE PROJECT
INPUTS
Project Management Plan Contract Documentation
Includes contract itself, as well as changes to the contract and other documentation (such as the technical approach, product description, acceptance criteria)
Organizational Process Assets e.g. formal sign off forms Work Performance Information e.g. all invoices from procurement Deliverables
PMP Prep - Integration Slide 74
CLOSE PROJECT-T&T
TOOLS & TECHNIQUES Project Management Methodology
Project Management Information System (PMIS) Expert Judgment
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Project Files
Documentation resulting from the projects activities
Historical Information
Historical information & lesson learned information are transferred to the lessons learned knowledge base for use by future projects
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Questions?
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DAY DAY 1 2
CHAPTER 5
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AGENDA
Day 1 PMP Exam Prep Introduction Project Management Framework *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management DAY 2 Project SCOPE Management Project TIME Management Project COST Management Project QUALITY Management DAY 3 Project COMMUNICATION Management Project HUMAN RESOURCE Management Project RISK Management Project PROCUREMENT Management DAY 4 Professional & Social Responsibility REVISION & QUIZ
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SCOPE PROCESSES
SCOPE PROCESS DEFINITIONS
5. 1 Collect Requirements - Collect Requirements is the process of defining and documenting stakeholders needs to meet the project objectives.
- The projects success is directly influenced by the care taken in capturing and managing project and product requirements. - Requirements include the quantified and documented needs and expectations of the sponsor, customer, and other stakeholders. - the requirements need to be elicited, analyzed, and recorded in enough detail to be measured once project execution begins. - Collecting requirements is defining and managing customer expectations. - Requirements become the foundation of the WBS. - Cost, schedule, and quality planning are all built upon these requirements. - The development of requirements begins with an analysis of the information contained in the project charter and stakeholder register.
SCOPE PROCESSES
5.2 Define Scope It is the process of developing a detailed description of the project and product. 5.3 Create WBS Subdivide major project deliverables into smaller, more manageable components 5.4 Verify Scope Formal acceptance of completed project deliverables, i.e. a signed document 5.5 Control Scope Control changes to the project scope
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SCOPE PROCESSES
Process by process group
Planning 5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS Monitoring and Controlling 5.4 Verify Scope 5.5 Control Scope
COLLECT REQUIREMENTS
WHAT HAPPENS IN COLLECT REQUIREMENTS?
The development of requirements begins with an analysis of the information contained in the project charter and stakeholder register.
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COLLECT REQUIREMENTS
TOOLS & TECHNIQUES Interviews
Focus groups Facilitated workshops Group creativity techniques Group decision making techniques Questionnaires and surveys observations Prototypes
INPUTS
Project charter Stakeholder register
OUTPUTS
Requirements documentation
3. 4.
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6. 7. 8.
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Traceability matrix is a table that links requirements to their origin and traces them throughout the project life cycle. It provides a structure for managing changes to the product scope. The process includes, but not limited to tracing: - Requirements to business needs, opportunities, goals, and objectives; - Requirements to project objectives; - Requirements to project scope/WBS deliverables; - Requirements to product design; - Requirements to product development; - Requirements to test strategy and test scenarios; and - High-level requirements to more detailed requirements
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SCOPE PROCESSES
Process by process group
Planning
5.1 Collect Requirements 5.2
Define Scope
5.3 Create WBS
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DEFINE SCOPE
What happens in Define Scope?
Define Scope is the process of developing a detailed description of
the project and product. The preparation of a detailed project scope statement is critical to project success and builds upon the major deliverables, assumptions, and constraints that are documented during project initiation. During planning, the project scope is defined and described with greater specificity as more information about the project is known. Existing risks, assumptions and constraints are analyzed for completeness
DEFINE SCOPE
TOOLS & TECHNIQUES Expert judgement
Product analysis Alternative identification Facilitated workshops
INPUTS
Project charter Requirements documentation Organizational process assets
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Requirements documentation
Described in Sec. 5.1.3.1
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Project deliverables
Product or service of the project, and supplementary results, such as project management reports & documentation
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Project constraints
- Restriction or limitation of the project scope that limit teams option e.g. pre-defined budget; imposed dates or schedule milestones etc. - Projects performed under contract generally have contractual provisions
Project assumptions - Factors, that for planning purposes, are considered true, real or certain. - Generally involve a degree of risk
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SCOPE PROCESSES
Process by process group
Planning
5.1 Collect Requirements 5.2 Define Scope 5.3
Create WBS
PMP Prep Scope Slide 28
CREATE WBS
WHAT'S A WORK BREAKDOWN STRUCTURE?
Deliverable-oriented hierarchy of decomposed work to be done by the project team. Organizes & defines the total scope of the project. Subdivides the project work into smaller, more manageable pieces of work. (refer to figure 5-7 in page117 of PMBOK)
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CREATE WBS
TOOLS & TECHNIQUES
Decomposition
INPUTS
Project scope statement Requirements documentation Organizational process assets
OUTPUTS
WBS WBS dictionary Scope baseline Project document updates
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CREATE WBS
Decomposition process involves:
Identifying the deliverables and related work Structuring and organizing the WBS Decomposing the upper WBS levels into lower level detailed components. Develop & Assign identification codes to each WBS component (code of account) Verifying that the degree of decomposition of the work is necessary and sufficient
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CREATE WBS
Sample Intranet WBS Organized by Product
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CREATE WBS
Basic principles for creating a WBS:
1. A unit of work should appear at only one place in the WBS. 2. The work content of a WBS item is the sum of the WBS items below it. 3. A WBS item is the responsibility of only one individual, even though many people may be working on it. 4. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical. 5. Project team members should be involved in developing the WBS to ensure consistency and buy-in. 6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item. 7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement.
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that details each WBS component It includes: Code of account identifier a statement of work with defined deliverables Responsible organization List of schedule milestone It could include: Contract information Quality requirements Technical references List of associated activities/interdependencies Resources required Cost estimate
SCOPE PROCESSES
Process by process group
Planning
5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS
Verify Scope
5.5 Control Scope
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VERIFY SCOPE
HOW DO WE VERIFY SCOPE?
Getting the stakeholders' formal acceptance of completed or updated
scope & deliverables, i.e. the WBS or the software you delivered If a project terminates early, project scope verification should be done next to establish & document the level & extent of completion. Scope verification is concerned with acceptance of deliverables, While quality control is concerned with quality of deliverables Quality control is generally performed before scope verification but can be performed in parallel as well It's unethical to ignore Scope Verification because it adds risk to meeting the customer's needs (see PMP Code of Conduct)
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VERIFY SCOPE
TOOLS & TECHNIQUES Inspection INPUTS Project scope
statement WBS dictionary Project scope management plan Deliverables
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SCOPE PROCESSES
Process by process group
Planning
5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS
Control Scope
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CONTROL SCOPE
WHAT HAPPENS DURING CONTROL SCOPE ? (Change is inevitable)
Influencing the factor that create project scope changes Controlling the impact of those changes Assures all requested changes and recommended corrective actions are processed through the project Integrated Change Control process Project scope control is used to manage the actual changes when they occur& integrated with other control processes Note: Uncontrolled changes are often referred to as project scope creep
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CONTROL SCOPE
TOOLS & TECHNIQUES Change control system Variance analysis Replanning Configuration management system OUTPUTS INPUTS Project scope statement Project scope statement (updates) Work breakdown structure WBS (updates) WBS dictionary WBS dictionary (updates) Project scope Scope baseline (updates) Requested changes management plan Recommended corrective action Performance reports Organizational process assets Approved change requests (updates) Work performance Project management Plan information (updates)
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Variance Analysis
Project performance measurements are used to assess the magnitude of variation. Important aspects of scope control include determining cause of variance to scope baseline and deciding whether corrective action is required. Time & cost areas (to come) use a mathematical technique called earned value analysis.
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Configuration Management System Provides procedures for the status of the deliverables, and assures that requested changes to the project scope & product scope are thoroughly considered & documented before being processed through ICC process.
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Questions?
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DAY 3
CHAPTER 6
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AGENDA
Day 1
PMP Exam Prep Introduction Management Project Management Framework Management *Introduction RESOURCE Management *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management PROCUREMENT Management Project SCOPE Management Responsibility
DAY 4
Project QUALITY Project RISK Project HUMAN
DAY 2
Project
DAY 5
DAY 3
Project TIME Management Project COST Management
DAY 6
REVISION & QUIZ
Manages the project schedule to ensure timely completion of the project Utilizes the Schedule Management Plan from the Develop Project Management Plan process
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TIME PROCESSES
DEFINITIONS : TIME PROCESSES
6.1 Define Activities Identifying the specific actions to be performed to produce project deliverables (at the lowest level in the WBS, which is called the work package). 6.2 Sequence Activities Identifying & documenting relationships among the project activities. 6.3 Estimate Activity Resources Estimate the type & quantities of material, people, equipment, or supplies required to perform each activity.
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TIME PROCESSES
6.4 Estimate Activity Durations
Estimate the number of work periods needed to complete individual activities with estimated resources.
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TIME PROCESSES
PLANNING MONITORING & CONTROLLING 6.6 Control Schedule
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DEFINE ACTIVITIES
WHAT HAPPENS IN DEFINE ACTIVITIES? Identifies the specific actions to be performed to produce the project deliverables. The
Create WBS process identifies the deliverables at the lowest level in the Work Breakdown Structure (WBS), the work package. Decompose the work packages into smaller components called activities that represent the work necessary to complete the work package. Differentiate between a work package and an activity? A work package is a deliverable as a result of work An activity is an action that produces a deliverable alone or together with other activities Activities provide a basis for estimating, scheduling, executing, and monitoring & controlling the project work. Implicit in this process is defining and planning the schedule activities such that the project objectives will be met.
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DEFINE ACTIVITIES
TOOLS & TECHNIQUES Decomposition
Rolling wave planning Templates Expert judgement
Scope baseline
Enterprise environmental factors Organizational process assets
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Work in near term is planned in detail Work in future is planned at a higher level of WBS Therefore, work can exist at various levels of detail depending on where it is in the project life cycle. For example, during early strategic planning, when information is less defined, work packages may be decomposed to the milestone level. As more is known about the upcoming events in the near term it can be decomposed into activities.
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Expert Judgment
Experts - experienced and skilled in developing detailed
project scope statements, the WBS, and project schedules can provide expertise in defining activities
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Activity Attributes Multiple components associated with each activity that evolve over time. During the initial stages of the project they include: - Activity ID, WBS ID, and Activity Name and when completed may include - Activity codes, activity description - Predecessor activities, successor activities, logical relationships - Leads & lags - Resource requirements - Imposed dates, constraints & assumptions - Person or company responsible for executing the work - Geographic area or place where the work has to be performed - Activity type such as level of effort, discrete effort, and apportioned effort
PMP Prep Time Slide 11
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TIME PROCESSES
PLANNING 6.1 Define Activities MONITORING & CONTROLLING 6.6 Control Schedule
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SEQUENCE ACTIVITIES
WHAT HAPPENS IN SEQUENCE ACTIVITIES?
Identifies & documents logical relationship among the project activities. Every activity and milestone except the first and last are connected to at least one predecessor and one successor. Defines precedence relationships and leads & lags to support development of a realistic & achievable project schedule. Sequencing can be performed by using project management software or by using manual or automated techniques.
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SEQUENCE ACTIVITIES
TOOLS & TECHNIQUES Precedence diagramming
method (PDM) Dependency determination Applying leads & lags Schedule network templates
Activity list Activity attributes Milestone list Project scope statement Organizational process assets
INPUTS
OUTPUTS
Project schedule network diagrams Project document updates
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SEQUENCE ACTIVITIES
INPUTS
Activity List Activity Attributes Milestone List Project Scope Statement Organizational Process Assets
PMP Prep-Time
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SEQUENCE ACTIVITIES
Tools &Techniques
1) Precedence
Method of constructing a Project schedule network diagram that uses Rectangles or boxes (called nodes) to represent activities Arrows show dependencies This method is also called activity-on-node (AON)
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completion of predecessor activity. Hence two tasks must finish at the same time e.g. Wiring Inspection cant finish until House Wiring is completed. Predecessor Activity A Successor Activity B
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ADM uses arrows to represent activities & connects to nodes to show their dependencies Also called activity-on-arrow (AOA) Used in teaching Schedule Network Theory Uses only finish-to-start dependencies and is not as prevalent as PDM Can require "dummy" relationships (dummy activities) (broken lines) that have zero value for duration Uses more than one time estimate.
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2) Dependency Determination
Three types of dependencies are used
Mandatory dependencies (sometimes called hard logic) Inherent in the nature of the work e.g. before basement 1st floor Discretionary dependencies (preferred, preferential or soft logic) Sometimes required in unusual aspect of the project PM team decides based on knowledge, best practices & exp. External dependencies Relationship between project & non-project activities, i.e. dependent on delivery of computers before the software development can start
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Standardized project schedule network diagram templates can be used to expedite the preparation of networks Portions of a project schedule network diagram are often referred as sub network or fragment network Useful for identical deliverables, as in different floors of a multi-storied building
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TIME PROCESSES
PLANNING 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule MONITORING & CONTROLLING 6.6 Control Schedule
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Estimate Activity Resources is the process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity. For example. a construction project team will need to be familiar with local building codes. Such knowledge is often readily available from local sellers. However, if the local labor pool lacks experience with unusual or specialized construction techniques, the additional cost for a consultant might be the most effective way to secure knowledge of the local building codes.
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INPUTS
Activity list
Activity attributes Resource calendars Enterprise environmental factors Organizational process assets
OUTPUTS
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Activity Attributes Resource Calendars The composite resource calendar includes the availability, capabilities, and skills of human resources
- Which resources (people, equipment, material) are potentially available. - Estimate resource types, i.e. senior vs. junior engineer at different phase of the project (e.g. during early phases of an Engineering Design Project-Junior engineer is fine but at later stages experienced engineers will be required). - Consider geographical location & when they will be available.
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Alternatives Analysis
Many schedule activities have alternative methods of accomplishment. They include: Using various levels of resource capability or skills Using different sizes or types of machines or tools, e.g. automated or manual Make-or-buy decisions regarding the resources (whether to outside contracting is cheaper than hiring)
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Bottom-up Estimating
For accuracy, the work within schedule activity is decomposed into more detail Each activity is then totalled into overall project Schedule activities may or may not have dependencies between them that can affect the application and use of resources.
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TIME PROCESSES
PLANNING 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule MONITORING & CONTROLLING 6.6 Control Schedule
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Activity list Activity attributes Activity resource requirements Resource calendars Project scope statement Enterprise environmental factors Organizational process assets
INPUTS
OUTPUTS
Activity duration estimates Project document updates
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OUTPUTS
Activity Duration Estimates
Quantitative assessments of the likely number of work periods required to complete a schedule activity Estimates should include some indication of the range of possible results, I.e. 2 weeks +/-2 days to indicate that schedule activity will take at least eight days and no more than 12 days (assume 5 day week)
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TIME PROCESSES
PLANNING 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations MONITORING & CONTROLLING 6.6 Control Schedule
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DEVELOP SCHEDULE
HOW DO YOU DEVELOP A SCHEDULE ?
Develop Schedule is the process of analysing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule. Determine planned start & finish dates for all project activities Schedule development is iterative (repeats in cycles) & continues throughout the project to modify duration & resource estimates as the: Work progresses Project Management Plan changes the nature of risk events evolves The schedule baseline (developed at the beginning of the project) is used to track work progress and variance.
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DEVELOP SCHEDULE
TOOLS & TECHNIQUES
Schedule network analysis
Critical path method Critical chain method Resource levelling What-if scenario analysis Applying leads and lags Schedule compression Scheduling tool
Activity list Activity attributes Project schedule network diagrams Activity resource requirements Resource calendars Activity duration estimates Project scope statement Enterprise environmental factors Organizational process assets
PMP Prep Time Slide 43
INPUTS
OUTPUTS
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Produces a resource-limited or resource-constrained schedule Reverse resource allocation scheduling is done from project end.
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Creates a schedule model, then computes different scenarios (simulations) if X happens; assess the feasibility of the project schedule under adverse conditions. The most common technique is Monte Carlo Analysis (read Section 11.4.2.2)
Shortens project schedule without changing the project scope to meet schedule
constraints, imposed dates, or other schedule objectives. Crashing addition of more resources on the critical path to complete the project earlier (generally increases cost). Fast tracking - activities or phases that normally would be done in sequence are performed in parallel; can require work to be performed without detailed info. & can increase risk.
8) Scheduling Tool Automated scheduling tools expedite the scheduling process by generating start and finish
dates based on the inputs of activities, network diagrams, resources and activity durations. A scheduling tool can be used in conjunction with other project mgmt. Software applications as well as manual methods.
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Bar chart with only scheduled start or completion dates of major deliverables and key external interfaces (see Fig. 6-14, p.158 top milestone schedule) In milestone chart activities have zero duration
Bar Charts
Gantt Charts with bars representing activities show activity start and end
dates & expected durations For control & management communication, more comprehensive summary activity, (see Fig. 6-14, p.158 middle summary schedule) sometime referred to as a hammock activity, is used between milestones or across multiple interdependent work packages
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3) Schedule Data 4) Project Document Updates - Activity resource requirements - Activity attributes - Calendar - Risk register
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TIME PROCESSES
PLANNING 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule MONITORING & CONTROLLING
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CONTROL SCHEDULE
WHAT HAPPENS IN CONTROL SCHEDULE?
Schedule control is concerned with: Determining the current status of the project schedule Influencing the factors that create schedule changes Determining that the project schedule has changed Managing the actual changes as they occur
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CONTROL SCHEDULE
TOOLS & TECHNIQUES
Performance reviews
Variance analysis Project management software Resource levelling What-if scenario analysis Adjusting leads and lags Schedule compression Scheduling tool
INPUTS
Project management plan Project schedule Work performance information Organizational process assets
OUTPUTS
Work performance measurements Organizational process assets updates Change requests Project management plan updates Project document updates
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Variance Analysis
Compare target vs. actual/forecast start and finished dates provides useful information for the detection of deviations and for the implementation of corrective actions in case of delays.
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Estimate in Months 0 3 4 2 5 7 1 3 4
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Questions?
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DAY DAY 1 3
CHAPTER 7
Slide 1
AGENDA
Day 1
PMP Exam Prep Introduction Management Project Management Framework Management *Introduction RESOURCE Management *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management PROCUREMENT Management Project SCOPE Management Responsibility
DAY 4
Project QUALITY Project RISK Project HUMAN
DAY 2
Project
DAY 5
DAY 3
Project TIME Management Project COST Management
DAY 6
REVISION & QUIZ
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COST PROCESSES
COST PROCESS DEFINITIONS
7.1 Estimate Costs
Develop cost approximations of all monetary resources needed to complete project activities.
COST PROCESSES
Processes by process group
Planning Monitoring and controlling 7.3 Control Costs
ESTIMATE COSTS
HOW DO YOU ESTIMATE COSTS?
Get a cost approximation of the monetary resources needed to complete each schedule activity Resources should include: Labour & services Materials, equipment & facilities Information technology Inflation, cost contingency reserves Cost estimates are generally expressed in units of currency (or hours) Possible causes of variations should be considered (risk) Accuracy should increase as project progresses Some organizations have formally trained project cost estimators
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ESTIMATE COSTS
Salient Features:
Cost estimating includes identifying and considering various costing alternatives Cost estimates are expressed in units of currency Cost estimates are normally refined during the course of the project. The accuracy of a project estimate will increase as the project progresses through the project life cycle. A project in initial phase could have a rough order of magnitude (ROM) estimate in the range of -50 to +50%. Later in the project, as more info. Is known, estimates could narrow to a range -10 to +10%.
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ESTIMATE COSTS
TOOLS & TECHNIQUES Expert judgement Analogous estimating
Parametric estimating Bottom-up estimating Three-point estimates Reserve analysis Cost of quality Project management estimating software Vendor bid analysis
INPUTS
Scope baseline Project schedule Human resource plan Risk register Enterprise environmental factors Organizational process assets
PMP Prep Cost Slide 9
Project Schedule
The type and quantity of resources and the amount of time which those resources are applied to complete the work of the project are major factors in determining the project cost. Schedule activity resources and their respective durations are used as key inputs to this process.
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Analogous Estimating
Using actual cost of previous, similar projects as the basis for costing current project. This method is less costly than other techniques, but is less accurate. Most reliable when previous projects are similar.
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Bottom-up Estimating
Estimating the cost of individual work packages or schedule activities with the lowest level of detail. This detailed cost is then summarized or "rolled up" to higher levels for reporting and tracking purposes. More accurate than Analogous Estimating.
Three-Point Estimates
PERT uses three estimates to define an approximate range for an activitys cost as under: {Optimistic + (4 * Most Likely) + Pessimistic} / 6
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Cost of Quality
Can also be used to prepare the schedule activity cost estimate (see section 8.1.2.2 Cost of Quality in PMBOK)
QualityCosts
Preventi on Costs
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Basis of Estimates
- The amount and type of additional details supporting schedule activity cost estimate vary by application area. - Supporting detail for activity cost estimate vary by application area. Supporting detail for activity cost may include: Documentation of the basis of the estimate, Documentation of all assumptions made, Documentation of any known constraints, Range of estimates {e.g.$ 10K (-10% / + 10%) or between $9K and $11K} Indication of the confidence level of the final estimate
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COST PROCESSES
Processes by process group
Planning Monitoring and controlling 7.3 Control Costs
DETERMINE BUDGET
WHAT HAPPENS IN DETERMINE BUDGET?
Aggregating the estimated costs of individual schedule activities or work packages to establish a total cost baseline for measuring performance. It establishes the Project's funding requirements. Remember that the project scope statement provides only the summary budget.
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DETERMINE BUDGET
TOOLS & TECHNIQUES Cost aggregation
Reserve analysis Expert judgment Historical relationship Funding limit reconciliation
Activity cost estimates Basis of estimates Scope baseline Project schedule Resource calendars Contracts Organizational process assets
INPUTS
OUTPUTS
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Reserve Analysis
Establishes contingency reserves, such as the management contingency reserve, that are allowance for unknown unknowns risks identified in risk register. PM needs approval for using such reserves. They are not part of project cost baseline, but are included in the budget for the project. Review your reserves through the project to ensure you have the right amount Contingency reserves (spare funds) allow for unplanned, but potentially required changes that may result from identified risks (to cost baseline) Management reserves account for "unknown unknowns": a) Included in performing organization's management budget b) Not included in project budget, cost baseline or earned value calculations
PMP Prep Cost Slide 22
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COST PROCESSES
Processes by process group
Planning Monitoring and controlling
CONTROL COSTS
WHAT SHOULD YOU DO IN CONTROL COSTS?
Influencing the factors that create changes to the cost baseline, Ensure that all change requests are acted on in a timely manner, Manage the actual changes when and as they occur, Make sure that cost expenditures don't exceed authorized funding (by period & in total) for the project, Monitor cost performance to isolate and understand variances from approved cost baselines, Monitor work performance against funds expended, Prevent unapproved changes from being included in the reported cost or resource usage, Inform appropriate stakeholders of approved changes and associated cost, and Act to bring expected cost overruns within acceptable limits
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CONTROL COSTS
TOOLS & TECHNIQUES Earned value mgmt. Forecasting To-complete performance index Performance reviews Variance analysis Cost change control system Project management software
Project management plan Project funding requirements Work performance information Organizational process assets
INPUTS
OUTPUTS
Work performance measurements Budget forecasts Organizational process assets updates Change requests Project management plan updates Project document updates
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ETC based on new estimate Revised (New) estimate for the work
remaining (uses standard estimating techniques) because original estimate was flawed, e.g. in a project installing the latest version of Primavera on 500 computers, the team though initially had expected current hardware would be okay, found that 20% of the computers require upgrading; thus a revised new estimate.
current variances are seen as typical of future variances (is expected to occur in future as well). ETC = (BAC -EV)/ CPI (factors in CPI for trend)
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DEPRECIATION
Straight Line Depreciation (SLD)
Equal amount of depreciation is taken out each period (year) Example below shows depreciation for 5 years where:
Depreciable value is $140,000 (purchase price) - $40,000 (salvage Value) = $100,000
$ 140,000
$40,000
0 1 2 3 4
$20,000
DEPRECIATION
Double Declining Balance (DDB)
Depreciation taken out each period (year) by double straight line depreciation Usually, applied on the initial purchase price (dont subtract salvage value) Example below shows depreciation for 5 years where:
Depreciation for 1st year is $140,000 / 5 years x 2 = $56,000 (or 40% of $140,000) Depreciation for 2nd year is $84,000 / 5 years x 2 = $33,600 (or 40% of $84,000)
Purchase Price Depreciation % Year Depreciation Depreciated Balance
0 1 2 3 4 5
DEPRECIATION
Sum of Years Digits Depreciation (SYD)
Accelerated depreciation amount taken out each period (year) based on years digits Example below shows depreciation for 5 years where sum of years digits = 1+2+3+4+5 = 15 Depreciation factor for 1st year is 5 (reverse order of years) / 15 (sum of years) Multiply factor by original balance to get depreciation for that year Depreciation for 1st year is 5/15 x $100,000 = $33,333, 2nd year is 4/15 x $100,000 = $26,667
Salvage Depreciation Year Depreciatio Depreciate Value Factor n d Balance $40,000 5/15 4/15 3/15 2/15 1/15 0 1 2 3 4 5 0 $33,333 $26,667 $20,000 $13,000 $6,667 $100,000 $66,667 $40,000 $20,000 $6,667 0
PV
January February March April May June July 0 2500 8000 13000 42000 62000 70000
EV
0 3600 8000 10000 38000
AC
0 6000 8000 8000 48000
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From the last chart, we have these values and can make these calculations: PV $42,000 EV = $38,000 AC = $48,000
Comparing original amount budgeted for work that's done (EV) to the amount spent to produce that work (AC), we can get cost variance (CV) as follows: CV (= EV -AC ) = $38,000 -$48,000 = -$10,000 (> spent than planned) Comparing original amount budgeted for work that's done (EV) to the amount budgeted for that work In the plan (PV), we can get schedule variance (SV) as follows: SV (= EV -PV ) = $38,000 -$42,000 = -$4,000 work than planned)
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% of work Scheduled % of Budget Spent % of Work Accomplished To Complete Performance Index (TCPI) CV% SV%
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CV% SV%
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This means only 79 cents worth of work was done for each $1.00 of work planned, and only 88 cents worth of work was actually done for each $1.00 spent.
SPI = EV I PV = $0.79 CPI= EV I AC = $0.88 Case 2 is the worst case where all performance indicators are negative.
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This is bad news. Our work efficiency is a bit low. We are getting only 92 cents of work done per dollar. We are behind schedule.
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CV = $200 CV% = 8% CPI = 1.09 SPI = EV/PV = 2400/2600 = 0.92 Case 3 is under budget, but behind schedule.
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Questions?
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DAY 3
CHAPTER 10
Slide 1
AGENDA
Day 1
PMP Exam Prep Introduction Management Project Management Framework Management *Introduction RESOURCE Management *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management PROCUREMENT Management Project SCOPE Management Responsibility
DAY 4
Project QUALITY Project RISK Project HUMAN
DAY 2
Project
DAY 5
DAY 3
Project TIME Management Project COST Management
DAY 6
REVISION & QUIZ
generation, collection, distribution, storage retrieval, and ultimate disposition of project information These processes provide the critical links among people & information
that are necessary for successful communications. Project managers spend the majority of their time communicating with team members and other project stakeholders, whether they are internal or external to the organization. Effectively deals with stakeholders' information needs.
PMP Prep Communications Slide 2
COMMUNICATION SKILLS
COMMUNICATION SKILLS
Most communication skills are common for general mgmt. and project mgmt., such as, but not limited to: Listening actively and effectively, Questioning, probing ideas and situations to ensure better understanding, Educating to increase teams knowledge so that they can be more effective, Fact-finding to identify or confirm information, Setting and managing expectations, Persuading a person or organization to perform an action, Negotiating to achieve mutually acceptable agreements between parties, Resolving conflict to prevent disruptive impacts, and Summarizing, recaping, and identifying the next steps.
PMP Prep Communications Slide 3
COMMUNICATION MODELS
See Fig 10-8, p.255 for a basic two-person model of communications (how ideas or information are sent & received between two parties) Key components of model include: Encode: translate thoughts or ideas into a language that is understood by others Message & feedback-message: the output of encoding Medium: the method used to convey the message, e.g. email, fax Noise: anything that interferes with transmission and understanding of the message (e.g. distance) Decode: to translate the message back into meaningful thoughts or ideas Inherent in the model is an action to acknowledge a message. Acknowledgement means that the receiver signals receipt of the message, but not necessarily in agreement with the message. Another action is response to a message, which means that the receiver has decoded, understands, and is replying to the message. Sender is responsible for making information clear & complete so that the receiver can receive it correctly & confirming that it is understood properly Receiver is responsible for making sure that information is received in its entirety & correctly understood
PMP Prep Communications Slide 4
COMMUNICATION MODELS
COMMUNICATION METHODS
There are several communication methods used to share information among project stakeholders. These methods can be broadly classified into: Interactive communication Between two or more parties performing a multidirectional exchange of information. It is the most efficient way to ensure a common understanding by all participants on specified topics, and includes meetings, phone calls, video conferencing, etc. Push communication Sent to specific recipients who need to know the information. This ensures that the information is distributed but does not certify that it actually reached or was understood by the intended audience. Push communication includes letters, memos, reports, emails, faxes, voice mails, press releases etc. Pull communication Used for very large volumes of information, or for very large audiences, that requires the recipients to access the communication content at their own discretion. These methods include intranet sites, e-learning, and knowledge repositories, etc.
PMP Prep Communications Slide 5
COMMUNICATIONS PROCESS
COMMUNICATIONS PROCESSES
PROCESSES BY PROCESS GROUP
PLANNING EXECUTING INITIATING MONITORING & CONTROLLING 10.3 Report Performance
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IDENTIFY STAKEHOLDERS
WHAT HAPPENS IN IDENTIFY STAKEHOLDERS?
It is the process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success
Project stakeholders are persons and organizations such as customers, sponsors, the performing organization, and the public that are actively involved in the project, or whose interests may be positively or negatively affected by the execution or completion of the project. They may also exert influence over the project and its deliverables. Stakeholders may be at different levels within the organization and may possess different authority levels, or may be external to the performing organization for the project (Section 2.3 identifies various types of project stakeholders.
IDENTIFY STAKEHOLDERS
TOOLS & TECHNIQUES
Stakeholder analysis Expert judgement
INPUTS
Project Charter Procurement documents Enterprise environmental factors Organizational process assets
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Expert Judgement
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COMMUNICATION PROCESSES
INITIATING PLANNING EXECUTING
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PLAN COMMUNICATIONS
WHAT HAPPENS IN PLAN COMMUNICATIONS? Plan communications is the process of determining the project
stakeholder information needs and defining a communication approach (see fig. 10-7, the Data Flow diagram) Who needs - what, when; how the needs will be fulfilled and by whom Identifying the information needs of the stakeholders and determining a suitable means of meeting those needs are important factors for project success.
Improper communication planning will lead to problems such as delay in message delivery, communication of sensitive information to the wrong audience, or lack of communication to some of the required stakeholders.
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PLAN COMMUNICATIONS
TOOLS & TECHNIQUES
Communication requirement analysis Communication technology Communication models Communication methods
INPUTS
Stakeholder register Stakeholder management strategy Enterprise environmental factors Organizational process assets
OUTPUTS
Communications management plan Project document updates
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Determine total information needs of project stakeholders Combine the type & format of information needed with an analysis of the value of that information (e.g. all information that contributes to project success or prevents failure) Number of communication channels is, n ( n -1 ) / 2 (remember for exam) where n = number of stakeholders How many potential channels of communication are there in a project with 21 stakeholders? __________
Communications technology factors that can affect the project include: Urgency of the need for information Is project success dependent upon
having frequently updated information available on a moments notice, or would regularly issued written reports suffice? Availability of technology - Are existing systems appropriate, or do the project needs warrant change needed? Expected project staffing - Are proposed communications systems compatible with the experience & expertise of project participants, or is extensive training and learning required? Length of the project - Is the available technology likely to change before the project is over? Project environment - Does the team meet and operate on a face-to-face or in a virtual environment?
COMMUNICATION METHODS
There are several communication methods used to share information among project stakeholders. These methods can be broadly classified into: Interactive communication Between two or more parties performing a multidirectional exchange of information. It is the most efficient way to ensure a common understanding by all participants on specified topics, and includes meetings, phone calls, video conferencing, etc. Push communication Sent to specific recipients who need to know the information. This ensures that the information is distributed but does not certify that it actually reached or was understood by the intended audience. Push communication includes letters, memos, reports, emails, faxes, voice mails, press releases etc. Pull communication Used for very large volumes of information, or for very large audiences, that requires the recipients to access the communication content at their own discretion. These methods include intranet sites, e-learning, and knowledge repositories, etc.
PMP Prep Communications Slide 21
COMMUNICATION METHODS
There are several communication methods used to share information among project stakeholders. These methods can be broadly classified into: Interactive communication Between two or more parties performing a multidirectional exchange of information. It is the most efficient way to ensure a common understanding by all participants on specified topics, and includes meetings, phone calls, video conferencing, etc. Push communication Sent to specific recipients who need to know the information. This ensures that the information is distributed but does not certify that it actually reached or was understood by the intended audience. Push communication includes letters, memos, reports, emails, faxes, voice mails, press releases etc. Pull communication Used for very large volumes of information, or for very large audiences, that requires the recipients to access the communication content at their own discretion. These methods include intranet sites, e-learning, and knowledge repositories, etc.
PMP Prep Communications Slide 22
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Resources allocated for communication activities, including time and budget; Escalation process identifying time frames & the management chain for escalation of issues; Method for updating and refining the communications management plan as project progresses and develops; Glossary of common terminology; Flow charts of the information flow in the project, workflows with possible sequence of authorization, list of reports, and meeting plans, etc.; and Communication constraints, usually derived from specific legislation or regulation, technology, and organizational policies, etc.
COMMUNICATIONS PROCESSES
PROCESSES BY PROCESS GROUP
PLANNING EXECUTING INITIATING MONITORING & CONTROLLING 10.3 Report Performance
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DISTRIBUTE INFORMATION
WHAT HAPPENS IN DISTRIBUTE INFORMATION?
Making information available to project stakeholders as planned (see Fig. 10-10, page 259, Data Flow Diagram It is performed throughout the entire project life cycle and in all management processes. The focus is mainly in the execution process, which includes implementing the communications management plan, as well as responding to unexpected requests for information.
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INPUTS
Project management plan Performance reports Organizational process assets
OUTPUTS
Organizational process assets updates) Requested changes
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Performance reports
Performance reports are used to distribute project performance and status information, should be made available prior to project meetings, and should be as precise and current as possible.
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Requested Changes
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COMMUNICATIONS PROCESSES
PROCESSES BY PROCESS GROUP
PLANNING EXECUTING 10.2 Distribute Information INITIATING MONITORING & CONTROLLING 10.3 Report Performance
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It involves communication activities directed towards project stakeholders to influence their expectations, address concerns, and resolve issues (read page 261)
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INPUTS
Stakeholder register Stakeholder mgmt. strategy Project management plan Issue log Change log Organizational process assets
OUTPUTS
Organizational process assets updates Change requests Project mgmt. plan updates Project document updates
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Inputs
Stakeholder register
Stakeholder management strategy
An understanding of stakeholder goals and objectives is used to determine a strategy to manage stakeholder expectations (see Section 10.1.3.2)
Change log
It is used to document changes that occur during a project. These changes and their impact to the project in terms of time, cost, and risk,
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COMMUNICATIONS PROCESSES
PROCESSES BY PROCESS GROUP
PLANNING EXECUTING 10.2 Distribute Information INITIATING MONITORING & CONTROLLING
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REPORT PERFORMANCE
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REPORT PERFORMANCE
TOOLS & TECHNIQUES
Forecasting methods Communication methods Reporting systems
Variance analysis
INPUTS
Project management plan
Work performance information Work performance measurements Budget forecasts Quality control measurements Organizational process assets
OUTPUTS
Performance reports
Organizational process assets updates Change Requests
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Forecasting Methods
It is the process of predicting future project performance based on actual performance to date. Forecasting methods may be classified in different categories: - Time series methods - Causal/econometric methods - Judgmental methods - Other methods (include simulation, probabilistic forecasting, and ensemble forecasting)
PMP Prep Communications Slide 42
Reporting Systems
Standard tool for the project manager to capture, store, and distribute information to stakeholders.
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Questions?
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DAY 4
CHAPTER 8
Slide 1
AGENDA
Day 1
PMP Exam Prep Introduction Management Project Management Framework Management *Introduction RESOURCE Management *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management PROCUREMENT Management Project SCOPE Management Responsibility
DAY 4
Project QUALITY Project RISK Project HUMAN
DAY 2
Project
DAY 5
DAY 3
Project TIME Management Project COST Management
DAY 6
REVISION & QUIZ
Slide 2
ISO
PMP Prep - Quality
TQ M
Slide 4
COQ
Modern quality management complements project management. For example, both disciplines recognize the importance of: Customer Satisfaction: understanding, evaluating, defining, and managing combination of: conformance to requirements (the project must produce what it said it would produce), and fitness for use (the product or service must satisfy real needs) Prevention Over Inspection: The cost of preventing mistakes is generally much less than the cost of correcting them, as revealed by inspection Management Responsibility: Management must provide resources needed to meet quality levels and thus succeed Continuous Improvement: The plan-do-check-act cycle is the basis for quality improvement (as defined by Shewhart and modified by Deming)
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QUALITY VS GRADE
QUALITY versus GRADE Quality and Grade are not the same. Grade is a category (or rank) that distinguishes items having the same functional use but different technical characteristics, e.g. a product with lots of features and benefits is generally considered a high grade product, but still can be of poor quality. Quality is a degree measuring fitness for use, e.g. a high quality product will meet the specs and satisfy the real purpose, but may have limited features (or, grade). For example, software of high quality has no bugs, but may be low grade because it has limited features (such as Microsoft Calculator). Low quality is always a problem, low grade may not be. PM and his team are responsible for determining and delivering the required levels of both quality and grade.
PMP Prep Quality Slide 6
QUALITY PHILOSPHIES
QUALITY PHILOSOPHIES
W. Edwards Deming
Workers need to be shown what acceptable Quality is Quality is a Management problem Improve Leadership, drive out fear Improve constantly and forever (continuous improvement) Started the TQM movement
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QUALITY PHILOSPHIES
Phillip Crosby
Quality is Free Right the First Time Prevention is the Key Zero Defects
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QUALITY PROCESSES
PROCESSES BY PROCESS GROUP Planning 8.1 Plan Quality Executing Monitoring & Controlling
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PLAN QUALITY
WHAT YOU DO IN PLAN QUALITY?
The process of identifying quality requirements and/or standards for the project & product, and documenting how the project will demonstrate compliance.
Quality planning should be performed in parallel with the other project planning processes. For example, proposed changes in the product to meet identified quality standards may require cost or schedule adjustments and a detailed risk analysis of the impact to plans. The quality planning techniques discussed here are those most frequently used on projects. There are many others that may be useful on certain projects or in some application areas.
PLAN QUALITY
TOOLS & TECHNIQUES Cost-benefit analysis
Cost of Quality Control charts Benchmarking Design of experiments Statistical sampling Flowcharting Proprietary quality mgmt. methodologies Additional quality planning tools
Scope baseline Stakeholder register Cost performance baseline Schedule baseline Risk register Enterprise environmental factors Organizational process assets
PMP Prep Quality Slide 13
INPUTS
Quality management plan Quality metrics Quality checklists Process improvement plan Project document updates
OUTPUTS
2.
3.
4.
PLAN QUALITY-INPUTS
INPUTS
5. Risk Register The risk register contains information on threats and opportunities that may impact quality requirements 6. Enterprise Environmental Factors Governmental agency regulations, rules, standards, and guidelines specific to the application area may affect the project 7. Organizational Process Assets Organizational quality policies, procedures and guidelines, historical databases and lessons learned from previous projects specific to the application area may affect the project
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Flowcharting
Graphical representation of a process showing the relationships
among process steps. Flowcharts show activities, decision points, and the order of processing See Fig. 8-7 in Page 199.
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Quality Checklists
Structured tool used by both QA and QC to verify a set of required steps have been performed (usually component specific)
PMP Prep Quality Slide 23
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QUALITY PROCESSES
PROCESSES BY PROCESS GROUP Planning
8.1 Plan Quality
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Project management plan Quality metrics Work performance information Quality control measurement
INPUTS
Organizational process assets updates Change requests Project management plan (updates) Project document updates
OUTPUTS
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Change Requests Project Management Plan Updates - Quality mgmt. plan - Schedule mgmt. plan - Cost mgmt. plan Project Document Updates - Quality audit reports - Training plans - Process documentation
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QUALITY PROCESSES
PROCESSES BY PROCESS GROUP Planning Executing Monitoring & Controlling 8.3 Perform Quality Control
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TECHNIQUES
INPUTS
Quality control measurements Validated changes Validated deliverables Organization process assets updates Change Requests Project management plan updates Project document updates
OUTPUTS
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Rule of Seven' which is when 7 values in a row are all below or all
above the mean or increase/decrease in direction For processes outside acceptable limits, the process should be adjusted ( the upper & lower limits are usually set at +/-3 sigma, where sigma is standard deviation)
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Flowcharting
Helps to analyse how problem occur A flowchart is a graphical representation of a process There are many styles, but all flowcharts activities, decision points, and the order of processing See Figure 8-8, an example of a process flowchart for design reviews
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Scatter Diagram
Shows the pattern of relationship between two variables This tool allows the quality team to study and identify the possible relationships between changes observed in two variables The closer the points are to a diagonal line, the more closely they're related
PMP Prep Quality Slide 45
Statistical Sampling
Involves
choosing part of a population of interest for inspection (For example, select 10 widgets at random out of 100)
Inspection Examination of a work product to determine if it conforms to standards Generally, the results of an inspection include measurements Inspection can be conducted at any level, for example, the results of a single activity can be inspected, or final product of the project can be inspected Inspections are also called reviews, peer reviews, audits, and walkthroughs Approved Change Requests Review All approved change requests should be reviewed to verify that they were implemented as approved.
PMP Prep Quality Slide 46
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Change Requests
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STANDARD DEVIATIONSlide 1
Accuracy Measurement Standard deviations from the mean (or average): +/-1 (on both sides of the mean) = 68.3% : (1sigma) +/-2 =95.5% : (2 sigma) +/-3 =99.7% : (3 sigma) +/-6 =99.9% : (6 sigma)
Sigma and Standard Deviation are the same
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STANDARD DEVIATIONSlide2
Formulas: Mean (u)/Average = (sum the data, and then divide by the number of items) = 31 / 6 = 5.17 Variance (a 2) - how spread out a distribution of data is (both sides of mean) =E ( ( x - u ) 2) -where x is, each sample data, i.e. 4.9 on the n -1 next slide and n is the number of samples (6) = 0.2334 6-1 =0.04668
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Low quality is always a problem, low grade may not be. PMBOK, p.18D.
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Questions?
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DAY 4
CHAPTER 9
PMP Prep HR
Slide 1
AGENDA
Day 1
PMP Exam Prep Introduction Project Management Framework *Introduction COMMUNICATION Management *Project Life Cycle & Organisation Project Management Processes
DAY 3
Project TIME Management Project COST Management Project
DAY 2
Project INTEGRATION Management Management Project SCOPE Management RESOURCE Management
DAY 4
Project QUALITY Project RISK Management Project HUMAN
DAY 5
PROCUREMENT Management Project Professional & Social
PMP Prep HR
Slide 2
9.1 Develop Human Resource Plan Identifying & documenting project roles, responsibilities & reporting relationships, as well as creating the Staffing Management Plan 9.2 Acquire Project Team Obtain people needed to complete the project 9.3 Develop Project Team Improve competencies & interaction of team members to enhance project performance 9.4 Manage Project Team Track team member performance, provide feedback, resolve issues & coordinate changes to enhance project performance See Figure 9-3, p.218 for human resource plan data flow diagram
PMP Prep HR Slide 3
PMP Prep HR
Slide 4
requirements
OUTPUTS
Human Resource Plan
PMP Prep HR
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PMP Prep HR
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PMP Prep HR
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Templates for organizational charts and position descriptions, and Historical information on organizational structures that have worked in previous projects
PMP Prep HR
Slide 9
Hierarchical- type charts Organizational breakdown structure (OBS) - looks similar to WBS, Resource breakdown structure (RBS) another hierarchical chart
but is broken down by organisations existing departments, units or teams
broken down by types of resources, e.g. welders, graphic designers, etc. RBS can help tracking project costs, and can be aligned with the organizations accounting system (RBS can contain resource categories other than human resources).
PMP Prep HR Slide 10
Text-oriented formats
Detailed job or position descriptions; documents that provide information such as responsibilities, authority, competencies, and qualifications; etc. Other sections of the project management plan Some responsibilities related to managing the project are listed and explained in other sections of the project management plan. For example, the risk register lists risk owners, the communication plan lists team members responsible for communication activities.
PMP Prep HR
Slide 11
Organizational Theory
Provides information regarding the ways people, teams & organizational units behave. Helps managing people & groups; includes motivational theories
PMP Prep HR
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PMP Prep HR
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RESOURCE HISTOGRAM
PMP Prep HR
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Compliance - Government regulations, union contracts & HR policies Safety policies & procedures that protect team members from safety
hazards
PMP Prep HR
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PMP Prep HR
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PMP Prep HR
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OUTPUTS
Project Staff assignments Resource calendars Project management plan (updates)
PMP Prep HR
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PMP Prep HR
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Negotiation
PM team uses their influencing skills to obtain staff members from within the performing organisation. May need to negotiate with Functional managers Other project management teams
PMP Prep HR
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Resource Calendars
Documents the time periods (or calendar) each project team member can work on the project Creating a reliable final schedule depends on having a good understanding of each persons schedule conflicts, including vacation time and commitments to other projects
PMP Prep HR
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PMP Prep HR
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INPUTS
Project staff assignments Project management plan Resource calendars
PMP Prep HR
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PMP Prep HR
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Training
Activities designed to enhance the competencies of the project team members. Example of training methods include: Classroom, online, computer-based, on-the-job training from another project team member, mentoring, and coaching from other team members (Training includes diversity/cultural training as well)
PMP Prep HR
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PMP Prep HR
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PMP Prep HR
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TYPES OF POWER
Power is the potential ability to influence behaviour to get people to do things they would not normally do.
Types of Power
Legitimate (Formal) -based on actual or perceived position e.g. boss or bosss spouse Coercive-based on fear of punishment (normally used as the last resort) Reward -based on reward possibility (great to use). To be effective, rewards should be based on activities & performance under a person's control. Must have a clear criteria with a planned system of evaluation. Must be awarded in public. Expert Exert power based on your expertise or knowledge (great to use) Referent - Ability to influence other through charisma
PMP Prep HR Slide 33
PMP Prep HR
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Destructive
Aggressor Dominator Devils Advocate Topic Jumper Recognition Seeker Withdrawer Blocker
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MANAGEMENT STYLES
Autocratic Management by authority vs Consensus
Good For
Mature, well-defined projects When quick decisions are needed
Weakness
Limits staff bye-in leading to low morale Possible arbitrary decision
Weakness
Confusion about project objectives Inability to make decisions
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MANAGEMENT THEORIES
MANAGEMENT THEORIES
McGregor's Theory Theory X Workers viewed as inherently self-centred, lazy
Traditional view of management; top-down . Managers control & micromanage the workers Theory Y People will perform their best if they are properly motivated Workers viewed as willing & eager to accept responsibility Managers create environment that aids workers in achieving goals
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MANAGEMENT THEORIES
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MANAGEMENT THEORIES
HYGIENE FACTORS Absence of proper hygiene factors are linked to dissatisfaction
at the work-place. Examples of Hygiene factor are: company policies & job security pay, remuneration, salaries working conditions supervision
MOTIVATING FACTORS When they exist, team members have a good time at their place of
work. It includes, sense of achievement & recognition for things done opportunity for growth & advancement responsibility & stimulating work
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INPUTS
Project staff assignments Project management plan Team performance assessment Work performance information Performance reports Organizational process assets
OUTPUTS
Enterprise environmental factors updates Organization process assets (updates) Change Requests Project management plan (updates)
cs
Precise
Project charter, Scope statement,
Transmitted project plan, WBS, project status through Complex issues medium Contract related communication of correspondence Written informal Emails, notes, memos, letters Regular communication with team member High degree of Presentations, Speeches Negotiations, conflict resolution flexibility Personal contact, group meetings or telephone Conversation with team members Project meetings
Oral Formal
Oral Informal
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Issue Log As issues arise in course of managing the project team, a written log can document persons responsible for resolving specific issues by a target date
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Interpersonal Skills
Project managers uses combination of technical, human, and conceptual skills to analyze situations and interact appropriately with team members. This aids PM capitalizing on the strengths of all team members (read Appendix F in PMBOK).
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Questions?
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DAY 4 CHAPTER 11
Slide 1
AGENDA
Day 1
PMP Exam Prep Introduction Management Project Management Framework Management *Introduction RESOURCE Management *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management PROCUREMENT Management Project SCOPE Management Responsibility
DAY 4
Project QUALITY Project RISK Project HUMAN
DAY 2
Project
DAY 5
DAY 3
Project TIME Management Project COST Management
DAY 6
REVISION & QUIZ
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Known risks Those that are identified and can be proactively managed & analyzed
Unknown risks (unknown knowns & unknown unknowns) Cannot be proactively managed
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Look for risks caused by things like poor project management, dependency on uncontrollable external resources, concurrent multiple projects, etc. Accept risks if they're in balance with a possible reward Communicate about risk information openly & honestly Provide risk responses in line with the organization's perceived balance between risk-taking &risk-avoidance To be successful, an organization should be committed to addressing the management of risk proactively & consistently throughout the project
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RISK PROCESSES
RISK PROCESS DEFINITIONS
11.1 Plan Risk Management Process of deciding how to approach and conduct (plan & execute) the
risk management activities for a project.
11.2 Identify Risks Determine which threats/opportunities might affect the project &
document their details
11.3 Perform Qualitative Risk Analysis Assess each risk's chance of occurring & probable impact to get a
prioritized list of risks requiring more analysis or action
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RISK PROCESSES
11.4 Perform Quantitative Risk Analysis
Numerically analyze identified risks' effect on overall project objectives
11.5 Plan Risk Responses Analyze risks and make a plan of actions & options to enhance
opportunities & reduce threats to project objectives
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RISK PROCESSES
Processes by process group Planning Monitoring and controlling 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses
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Timing Defines when & how often the risk management process will be performed throughout the project life cycle, and establishes risk management activities to be included in the project schedule.
Risk categories Provides a structure that ensures a comprehensive process of systematically identifying risk to a consistent level of detail & contributes to the effectiveness and quality of Risk Identification An organization can use a previously prepared categorization of typical risks. A Risk Breakdown Structure (RBS) (not a Resource Breakdown Structure, which is also RBS) is one approach to providing such a structure (see fig.11-4, page 244) Revised stakeholders' tolerances - Stakeholders tolerances may be revised in risk management planning process
PMP Prep Risk Slide 14 Powered by POeT Solvers Limited
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Relative scales (also called ordinal scale) for impact are rank ordered descriptors such as low, medium, high, very high reflecting impact in increasing order. Alternatively, numeric scales (also called cardinal scales) assign values to these impacts. The values may be Linear (e.g. 1, 3, 5, 7, 9) or, Non-linear (e.g. 1, 2,4, 8) non-linear scales may represent organizations desire to avoid high-impact threats or exploit high impact opportunities, even if they have relatively low probability
1 3
4 1
3 4
Time Cost
4 5 2 12 40
5 2
Scope Quality
3 8 8 Note: The figures in the box 9 probability of a risk impacting an3 are 20 objective
Risks are prioritized by their potential impact on project multiplied by their possibility of occurring, e.g. 10% x $800 = $80 risk value See Figure 11-5, p.245 for a sample impact scale (relative & numerical) See Figure 11-8, p.252 for a Probability & Impact Matrix look-up table where you can look up your impact (bottom row) multiplied by your determined probability (left column) and get a rating which can be measured against other projects in your company
Reporting formats
Describes the content & format of risk register (list of risks with details)
Tracking
Documents how all facets of risk activities will be recorded for the benefit of current project, future needs, and lessons learned.
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RISK PROCESSES
Processes by process group Planning 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses Monitoring and controlling 11.6 Monitor and Control Risks
IDENTIFY RISKS
WHAT HAPPENS IN IDENTIFY RISKS? Identify Risks determines which risks might affect the project & documents their characteristics Participants in identify risk activities can include the following, where appropriate: project manager, project team members, risk management team (if assigned), risk experts from outside, customers, end-users, stakeholders, etc. All project personnel should be encouraged to identify risks. Identify risks - is an iterative process because: Risk events may happen, which may cause new risks Status of identified risks may change New risks may occur
INPUTS
Risk management plan Activity cost estimates Activity duration estimates Scope baseline Stakeholder register Cost mgmt. plan Schedule mgmt. plan Quality mgmt. plan Project documents Enterprise environmental factors Organizational process assets
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Consistency between those plans and with the project requirements and assumptions
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Expert Judgement
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RISK PROCESSES
Processes by process group
Planning 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses Monitoring and controlling 11.6 Monitor and Control Risks
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RBS)
Expert Judgement
Expert judgement is required to assess the probability and impact of each risk to determine its location in the matrix shown in Fig. 11-10 (page 293)
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RISK PROCESSES
Processes by process group
Planning 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses Monitoring and controlling 11.6 Monitor and Control Risks
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RISK PROCESSES
Processes by process group
Planning 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses Monitoring and controlling 11.6 Monitor and Control Risks
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opportunities and reduce threats Risk responses must be: Appropriate to the significance of the risk Cost effective Timely Realistic Within the project context Agreed upon by all parties involved Owned by a responsible person
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For example: Avoid a scope risk by changing to a less "bleeding edge" technology,
e.g. TD bank lost three months on a project because of unproven software Avoid a cost risk by properly doing Activity Resource Estimating Avoid a resource risk by removing its requirement
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Transfer - To third party Generally involves payment to the party taking on the risk e.g. procurement of a critical item, For example: Transfer a scope risk by employing a contractor Transfer schedule risk by purchasing flood insurance for a New Orleans project Transfer a resource risk by purchasing on-site warranty
Mitigate -Reduce impact of an adverse risk/or reduction in the probability For example: Mitigate a scope risk by building a prototype Mitigate a resource risk by cross-training a team member Mitigate a schedule risk by using a pool of temporary workers, e.g. Departmental Stores/Malls use lots of part-time workers Accept
Used because it's seldom possible to eliminate all threats from a project Actively decide not to change project plan to deal with a risk Passive acceptance requires no action, leaving the project team to deal with the threats or opportunities as they occur Active acceptance establishes a contingency reserve or strategy
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cost of resource has gone down gaining high priority with a supplier should be defined and tracked
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RISK PROCESSES
Processes by process group
Planning 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses
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OUTPUTS
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Questions?
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DAY DAY 1 5
CHAPTER 12
Slide 1
AGENDA
Day 1
PMP Exam Prep Introduction Management Project Management Framework Management *Introduction RESOURCE Management *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management PROCUREMENT Management Project SCOPE Management Responsibility
DAY 4
Project QUALITY Project RISK Project HUMAN
DAY 2
Project
DAY 5
DAY 3
Project TIME Management Project COST Management
DAY 6
REVISION & QUIZ
PROCUREMENT PROCESSES
Review the Offers; Select the best out of the potential Sellers; Negotiate a written Contract.
Manage the Contract & contract changes; the relationships between Buyer and Seller. Review & document the Seller performance. Manage contractual relationship with outside Buyer of the Project. 12.4 Close Procurements Complete & settle each contract See the Process flow diagram in page 273.
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PROCUREMENT PROCESSES
Planning Executing Monitorin Closing g and controllin g
12.2 12.3 12.4 Conduct Administer Close Plan Procurement Procurement Procurement Procurement s s s s
12.1
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PLAN PROCUREMENTS
HOW DO WE PLAN PROCUREMENTS?
Identify which project needs that can best be: project needs which can be, must be, met by acquiring products, services or results outside the Project organization. accomplished by the project team during project execution. The process involves consideration of whether, how, what, how much & when to acquire. includes reviewing the risks involved in each make or buy decision. includes reviewing the type of contract planned to be used with respect to mitigating or transferring risks to the Seller.
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PLAN PROCUREMENTS
TOOLS & TECHNIQUES Make-or-buy analysis
Expert judgement Contract types
Scope baseline Requirements documentation Teaming agreements Risk register Risk-related contract decisions Activity resource requirements Project schedule Activity cost estimates Cost performance baseline Enterprise environmental factors Organizational Process assets
INPUTS
Procurement statements of work Make-or-buy decisions Procurement documents Source selection criteria Change requests
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PLAN PROCUREMENTS
INPUTS
Enterprise Environmental Factors Marketplace conditions: what products, services & results are available, at what prices, under what terms & conditions. If the performing organization does not have a purchasing or contracting group, then project team will have to supply both resources & expertise to perform all procurement activities. Organizational Process Assets Formal & informal procurement-related policies, procedures, forms, guidelines & management systems that are considered in developing Procurement Management Plan & selecting contract types to be used. Existing organisation policies frequently constrain procurement decisions. Though many a times those policies are devised based on lessons learned from past projects.
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Activity Resource Requirements (Section 6.3.3.1) Project Schedule Activity Cost Estimates
Cost estimates developed by the procuring activity are used to evaluate the reasonableness of the bids or proposals received from potential sellers
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CONTRACT TYPES
Contract Types
FIXED-PRICE (FP) CONTRACTS Firm Fixed Price Contracts (FFP) Seller to complete the job within a fixed total price. The Product has to be well defined ( both seller & buyer are at risk ) Fixed Price Plus Incentive Fee -FPIF Seller completes within a fixed total price, plus an extra incentive for meeting or exceeding certain objectives e.g. fixed price of $100,000 + $25,000 for completing by a target date
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CONTRACT TYPES
Fixed Price Incentive Fee Contracts (FPIF) Incentive is based on sellers performance tied to achieving agreed to metrics. Typically such financial incentives are related to cost, schedule, or technical performance of the seller In FPIF contracts, a price ceiling is set, and all costs above the price ceiling are the responsibility of the seller, who is obligated to complete the work.
CONTRACT TYPES
Fixed price with Economic Price Adjustment Contracts (FP-EPA)
The contract type is used whenever the sellers performance period spans a considerable period of years, as is desired with many long-term relationships. It is Fixed price contract, but with a special provision allowing for pre-defined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities. The EPA clause must relate to some reliable financial index which is used to precisely adjust the final price. The FP-EPA contract is intended to protect both buyer and seller from external conditions beyond their control.
CONTRACT TYPES
COST-REIMBURSABLE (CR) CONTRACTS
Involves
payment (reimbursement) to the seller for seller's actual costs, plus a fee typically representing seller profit May also include financial incentive clauses whenever the seller exceeds, or falls below, defined objectives such as costs, schedule, or technical performance targets. Three or more common types in use are as given below: Cost Plus Fixed Fee CPFF Buyer pays all costs plus a fixed fee Cost over runs will not increase the fixed fee e.g. cost of $100,000 + fixed fee of $15,000 (as profit)
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CONTRACT TYPES
Cost Plus Incentive Fee -CPIF Buyer pays all costs plus an incentive to beat some criteria Criteria might be a cost or time target with a certain formula e.g. cost of $100,000 + a pre-determined fee $5000 as incentive for early delivery
Cost Plus Award Fee contracts (CPAF) The seller is reimbursed for all legitimate costs, but the majority of the fee is only earned based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract. The determination of fee is based solely on the subjective determination of seller performance by the buyer, and is generally not subject to appeals.
PMP Prep Procurement Slide 17
CONTRACT TYPES
TIME & MATERIAL (T&M) CONTRACTS
Hybrid type of contractual agreement that contains aspects of both cost-reimbursable & fixed-price contracts. The full value of the agreement and the exact quantity of items to be delivered is not known when the agreement is made (like a cost reimbursement contract) Based upon unit rates or hourly rates as preset by the Buyer & Seller for a specific resource category (like a fixed-price contract)
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CONTRACT TYPES
Question
Contract cost is estimated to be $210,000 and a fee of $10 ,000 is offered to the supplier for completing the contract on or before time. If the contractor beats the cost, both the buyer and the seller will share the savings at 40:60 ratio. If the actual cost of the work comes out to $180,000, what will the Seller get if the contract is completed before time?
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CONTRACT TYPES
ANSWER:
Target cost" $210,000 Seller's fee" $10,000 Sharing ratio = 40% buyer / 60% seller seller Actual cost" $180,000 Cost savings = $210,000 -$180,000 = $30,000 Seller's profit = $10,000 + ( $30,000 X 60% ) = $28,000 Final price to buyer = $180,000 + $28,000 = $208,000
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CONTRACT TYPES
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CONTRACT TYPES
Spectrum of Risk
Contract type should be chosen based on the degree of risk (do you
know what will it cost to deliver?) Risk increases if scope is not well defined. So defining the scope better will get you a better contract with less risk for all. Risk can affect any/or all of them - time, cost, quality & scope
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PROCUREMENT DOCUMENTS
Procurement Documents
RFP (Request for Proposal or Request for Tender) - requests a price and details on how the work will be carried out, time frame, who will do it, biography of the team, company experience, etc. IFB (Invitation for Bid or Request for Bid) -requests one price for all the work. Request for Quote (RFQ) -requests a price quote per item, on hourly or per unit basis.
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Make-or-Buy Decisions
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PROCUREMENT PROCESSES
PROCESSES BY PROCESS GROUP
12.1
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CONDUCT PROCUREMENTS
WHAT HAPPENS IN CONDUCT PROCUREMENTS?
Conduct Procurements is the process of obtaining Seller responses, selecting a seller, and awarding a contract (see Figures 12-4 and 12-5 in page 329 of PMBOK)
In this process, the team will receive bids or proposals and will apply previously defined selection criteria to select one or more sellers who are qualified to perform the work and acceptable as a seller. On major procurement items, overall process of requesting responses from sellers and evaluating those responses can be repeated. A short list of qualified sellers can be established based on a preliminary proposal. A more detailed evaluation can then be conducted based on a more specific and comprehensive requirements document requested from the sellers on the short list. In addition, tools and techniques described here can be used alone or in combination to select sellers. For example, a weighting system can be used to: - Select a single seller that will be asked to sign a standard contract, and - Establish a negotiating sequence by ranking all proposals by the weighted evaluation scores assigned to each proposal.
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CONDUCT PROCUREMENTS
TOOLS & TECHNIQUES Bidder conferences Proposal evaluation techniques Independent estimates Expert judgement Advertising Internet Research Procurement negotiations
INPUTS
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Proposal Evaluation Techniques On complex procurements, where source selection will be made based on seller responses to previously defined weighted criteria, a formal evaluation review process will be defined by the buyers procurement policies. The evaluation committee will make their selection for approval by management prior to the award.
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PROCUREMENT PROCESSES
PROCESSES BY PROCESS GROUP
12.1
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ADMINISTER PROCUREMENT
HOW DO WE ADMINISTER PROCUREMENT?
It is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed (see Figures 12-6 and 12-7 in page 336). Both the buyer and the seller will administer the procurement contract for similar purposes. Each must ensure that both parties meet their contractual obligations and that their own legal rights are protected.
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ADMINISTER PROCUREMENT
The Administer Procurements process ensures that the sellers performance meets procurement requirements and that the buyer performs according to the terms of the legal contract. The legal nature of the contractual relationship makes it imperative that the project management team is aware of the legal implications of actions taken when administering any procurement. Due to varying org. structures, many organizations treat contract administration as an administrative function separate from the project organization. While a procurement administrator may be on the project team, this individual typically reports to a supervisor from a different department. This is usually true if the performing organization is also the seller of the project to an external customer.
ADMINISTER PROCUREMENT
TOOLS & TECHNIQUES Contract change control system
Procurement performance reviews Inspections & audits Performance reporting Payment systems Claims administration Records management system
Project management plan Contract Performance reports Approved change requests Work performance information
PMP Prep Procurement Slide 35
Organizational process assets (updates) Change requests Project Mgmt. Plan (updates)
ADMINISTER PROCUREMENTINPUTS
1) Procurement Documents 2) Project mgmt. plan 3) Contract 4) Performance reports 5) Approved change requests 6) Work performance information
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ADMINISTER PROCUREMENTT&T
TOOLS & TECHNIQUES Contract change control system
Defines the process to modify a contract Includes paperwork, tracking systems, dispute resolution procedures & approval levels necessary for authorizing changes, i.e. work authorization system
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Payment systems
Payments to the seller are typically processed by the accounts payable system of the buyer after certification of satisfactory work by an authorized person on the project team. Strictly as per terms of contract.
ADMINISTER PROCUREMENTOUTPUTS
OUTPUTS
1) Procurement documentation
It includes, but not limited to, the procurement contract with all supporting schedules, requested unapproved contract changes, and approved change requests. It also includes any seller-developed technical documentation and other work performance information such as deliverables, seller performance reports, warranties, financial documents including invoices and payment records, and the result of contract-related inspections.
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ADMINISTER PROCUREMENTOUTPUTS
2) Organizational Process Assets (updates) Read page 340 3) Change Requests 4) Project Mgmt. Plan (updates)
- Procurement mgmt. plan - Baseline schedule (must be updated to reflect the current expectations
PROCUREMENT PROCESSES
PROCESSES BY PROCESS GROUP
12.1
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CLOSE PROCUREMENTS
WHAT HAPPENS IN CLOSE PROCUREMENTS?
Close procurements process supports the close project process
Verifies that all work and deliverables were acceptable Administrative activities, such as update records to reflect final results and archive them for future use In multi-phase projects, the terms of a contract may only apply to a given phase of the project. Unresolved claims may be subject to litigation after close procurements. Contract terms & conditions can prescribe specific procedures for close procurements. Early termination of a contract is a special case of close procurements & can happen when the buyer & seller mutually agree or when there's contract default
PMP Prep Procurement Slide 59
CLOSE PROCUREMENTS
TOOLS & TECHNIQUES Procurement audits
Negotiated settlements Records management system
INPUTS
Procurement management plan Procurement documentation
OUTPUTS
Closed procurements Organizational process assets (updates)
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B. It eliminates costs related to material handling, storage, paperwork and inspection. C. It emphasizes short-term relationships with suppliers that last until the delivery is received. D. It reduces inventory to zero or the re-order level.
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Questions?
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DAY 5
PROFESSIONAL & SOCIAL RESPONSIBILITY
Slide 1
AGENDA
Day 1
PMP Exam Prep Introduction Management Project Management Framework Management *Introduction RESOURCE Management *Project Life Cycle & Organisation Project Management Processes Project INTEGRATION Management PROCUREMENT Management Project SCOPE Management Responsibility
DAY 4
Project QUALITY Project RISK Project HUMAN
DAY 2
Project
DAY 5
DAY 3
Project TIME Management Project COST Management
DAY 6
REVISION & QUIZ
PROFESSIONAL RESPONSIBILITY
Responsibilities to the Profession Compliance with all organizational (PMI) rules & policies Candidate/Certificant Professional Practice Advancement of the Profession Responsibilities to Customers & the Public Qualifications, experience & performance of professional services Conflict of interest situations & other prohibited professional conduct Administration of Code of Conduct By becoming PMP, you agree to abide by this code of conduct. PMI reserves the right to suspend or revoke the credentials of any PMP who is determined to have committed a violation of this code.
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Provide accurate and truthful information directly or indirectly related to all aspects of PMI Certification Program Responsibility to report violations of the PMP Code of Professional Conduct by individuals in the field of project management Responsibility to cooperate with PMl concerning ethics violations and the collection of related information Responsibility to disclose to clients, customers, owners or contractors, significant circumstances that could be construed as a conflict of interest or an appearance of impropriety
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CANDIDATE/CERTIFICANT PROFESSIONAL PRACTICE Responsibility to provide accurate, truthful advertising and representations concerning qualifications, experience and performance of services
Responsibility to comply with applicable laws, regulations and ethical standards governing professional practice in the state/province and/or country when interacting with PMI and when providing project management services Responsibility to act in an honest & ethical manner when interacting with PMI and when providing PM services (another word for ethical is moral & the dictionary description of ethical is 'Being in accordance with the accepted principles of right & wrong that govern the conduct of a profession') Responsibility to maintain and respect the confidentiality of the contents of the PMP credential exam.
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PMI reserves the right to suspend or revoke the credential of any PMP who is determined to have committed a violation of this Code
SUMMARY
Truthfully report information about your PMP status & PM experience.
You're responsible for the integrity of the PM process, the product & yourself. Avoid putting your own personal gain above project objectives. Abide by laws, rules, & regulations of the country you're working in. Report instances that might appear to be a conflict of interest. It's always better to inform others of an apparent conflict than to have it discovered later & your methods called into question. Deal with problems.
PMP Prep Responsibilities Slide 9
SUMMARY
Always strive to maintain honesty in project reporting.
Respect the use of confidential information and intellectual property & always verify who has permission to access it & when disclosures are required. Balance the needs & interests of stakeholders with project objectives. Respect and understand cultural differences & don't impose your beliefs on others. Culture shock is when you find yourself in a different cultural environment than you're familiar with. Diversity training can help project team members with relationship management techniques about cultural & ethnic differences.
PMP Prep Responsibilities Slide 10
Questions?
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