www.GLOBALSKILLUP.com PMP® Certification Training!
Apr 21, 2017
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PMP® Certification Training!
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2
GET TO KNOW ME
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Intended for
Professionals to learn Project
Management Subject for
daily use
Professionals to take PMP®
Certification exam by Project
Management Institute
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Course Content C
ha
pte
rs 1. Introduction to PMI®, PMP®, PMBOK®, Exam Pattern & Format
2. Understand Project Management Framework
3. Project Management Process Groups
4. Knowledge Area: Integration Management
5. Knowledge Area: Scope Management
6. Knowledge Area: Time Management
7. Knowledge Area: Cost Management
8. Knowledge Area: Quality Management
9. Knowledge Area: Human Resource Management
10. Knowledge Area: Communications Management
11. Knowledge Area: Risk Management
12. Knowledge Area: Procurement Management
13. Knowledge Area: Stakeholder Management
14. Professional & Social Responsibility
15. PMP® Exam Preparation
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Introduction
Chapter 1
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Chapter 1
Objectives
Project Management Institute
PMI Membership
Other PM Certifications & Bodies
About PMP® Credential
Project Management Body of Knowledge
Course Inline with 2016 January Exam Change
PMP Eligibility Criteria
PMP Exam Cost
PMP Application Process
Exam Pattern & Format
This chapter entails one to understand the basic terms which are often heard when spoken about PMP®.
Showcases the participants to understand the long standing history of PMP®, which institute provides it, and based on which knowledge the exam itself is formulated.
One will also learn the eligibility criteria to meet for taking the exam, how to file for the PMP® exam, cost involved for exam, pattern of questions itself and so on.
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Project Management Institute
PMI® (Project Management Institute) is the most prominent body on
the subject of Project Management in existence today.
History: founded in 1969 as a Not-for-Profit.
Reputation: Has an army of certified professionals working at junior
management level to board level across industries and government
bodies who live by the highest standards set by PMI®.
PMI® Certifications in Existence
CAPM® (Certified Associate in Project Management)
PMI-PBA (Professional in Business Analysis)
PMP® (Project Management Professional)
PMI-ACP® (Agile Certified Practitioner)
PgMP® (Program Management Professional)
PMI-RMP® (Risk Management Professional)
PfMPSM (Portfolio Management Professional)
PMI-SP® (Scheduling Management Professional)
OPM3® (Organizational Project Management Maturity Model) Certification
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PMI Membership
Membership in PMI provides PMP Aspirants with:
Complimentary digital copies of all PMI global standards including A Guide to
Project Management Body of Knowledge (PMBOK® Guide)
Networking, mentoring and volunteering opportunities via PMI chapters and
Communities of Practice
24/7 exclusive access to project management knowledge and information on
PMI.org, ProjectManagment.com, and ProjectsAtWork.com
Access to unabridged project management and business books via eReads
and Reference
Money-saving discounts on certification exams and foundational online
courses
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Other PM Certifications & Bodies
Besides PMI, there are several other Bodies & Certifications which are offered in Project Management. Let us know what those are:
UK government agency Office of Government Commerce (OGC), especially for the UK government projects
PRINCE2 (Projects in Controlled Environments, version 2) is a methodology
PRINCE2 Foundation – Basic Level(75Q, 50% Pass Percentage)
PRINCE2 Practitioner – Advanced Level(80Q, 55% Pass Percentage)
PRINCE2 Professional – Advanced with Group Exercises(Assessment Based)
The Association for Project Management(APM) is registered UK organization caters
to Project management & Program Management profession.
Five Dimensions of Professionalism:
Breadth – APM Body of Knowledge; Depth – APM Competence Framework; Achievement – APM
Qualifications; Commitment – Continuing Professional Development; Accountability – APM Code
of Professional Conduct
Introductory Certificate
APMP Qualification
Practitioner Qualification
Certificated Project Manager – Discontinued.
Risk Certificate
The International Project Management Association (IPMA) is a Swiss registered non-profit organization for promotion of Project Management as a Profession worldwide.
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About PMP® Credential
PMP® (Project Management Professional) is the most
prominent certification on the subject of Project
Management. It is the most sought after certification for
both budding professionals to prove their mettle and
Industry veterans to set bar high for rightful job candidates.
History: PMP® certification has been in existence from 1984
and has gone under multiple revisions and the latest exam
is based on 5th PMBoK® edition.
Reputation: PMP® certification proves that you have widest
and highest knowledge in areas of project management.
Often Observed: PMP® with the good industry exposure
and project management experience garner the best paid
jobs in the project management profession with great
respect. Why? Ask us.
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Project Management Body of Knowledge
PMBoK®
PMBOK:
Project Management Body of Knowledge
Present is 5th Edition, released in 2012 Q4.
PMBOK 6th Edition due in 2017 Q1 End*
History:
It has been a trend to observe 3rd to 4th , 4th
to 5th has been released almost 3years to
4years in duration
Reputation:
PMBoK® has been considered the most
comprehensive guide to acquire knowledge
in the area of project management. This has
been referred by industry veterans to
budding professionals across globe.
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Course Inline with
2016 January Exam Change
So what is the Exam change?
Exam is based on scenarios created from various tasks performed by Project Manager. These domain tasks were defined way back, few years ago.
Questions are all primarily based on these scenarios coming out of these tasks of Project Manager.
PMI has upgraded the domain tasks to add a few more based on today’s project managers new role based on existing new technology he uses.
This means, more new domain tasks in addition to old domain tasks. That also boils down to more variety of new Questions for Exam takers from 2016 Jan onwards.
To understand these tasks, refer: https://armadilloconsultants.com/pmp-exam-change-2016/
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PMP Eligibility Criteria
Four year Bachelors degree or above High School Diploma or equivalent
At least 3 years (36 months) of project management
experience with 4500 Hours of leading & directing
projects
At least 5 years of project management experience
with 7500 Hours of leading & directing projects
35 Contact Hours of Formal Project Management Education.
Collect this Certificate from Armadillo Consultants upon training completion.
PMP Exam Cost PMI® Membership Non PMI Membership
Membership Fee USD 139 – Annual
USD 12 – Local Chapter -
Membership Benefits Multiple Benefits
including PMBoK® guide. -
PMI Exam Fee USD 405 USD 555
Total Payment 139+12+405 = 556 555
PMI Re-Exam Fee USD 275 USD 375
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PMP Application Process
1. Fulfill PMP® eligibility criteria.
2. Have Project dates & areas handy before starting the application process on http://pmi.org
3. Prepare & submit the application online or manually.
4. PMI® scrutinizes & sends an approval. In case of PMI® audit, show facts and/or evidences.
5. Once approved, schedule exam with in 1 year at Test Center – Prometric/Prodevia
6. At the end of exam, results are made available immediately. Collect the result sheet.
7. Results are broken into 5 Process group areas and performance rated in each area.
8. Prometric provides the result summary on a printed copy.
9. PMP® certificate hardcopy will be couriered to specified address provided in application.
10. Maintain PMP® certification every 3 years with 60 PDU’s.
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What does PMI Ask For on Project Experience in Form?
Exhibit 1 of 2
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What does PMI Ask For PMP Experience to fill in Form?
Exhibit 2 of 2
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PMP Education from Training Provider
PROJECT MANAGEMENT KNOWLEDGE PROFICIENT
ARMADILLO CONSULTANTS
35 Fill date of your Enrolment with us. Fill end date of your training.
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Exam Pattern & Format By default CBT(Computer Based Test) is available at Prometric test centers for Exam takers.
For those who stay farther than 200 KM’s away from CBT test centers could request for PBT(Paper Based Test) format of examination.
Exam Duration is 4 Hours for total of 200 Objective Type Questions with 4 options and only 1 correct answer and No Negative Marking
It is not possible to differentiate scoring & non-scoring Questions.
Expect 90% Randomized Scenario Based Questions & 10% Straightforward Questions.
Results are Immediate to showcase overall Pass/Fail and 5 Process Group grades:
Proficient
Moderately Proficient
Below Proficient grades
PMI® Process Groups Initiating Planning Executing
Monitoring
&
Controlling
Closing
Randomly
placed
Non-
Scoring
Questions
Total
Percentage of Questions 13% 24% 30% 25% 8%
Number of Scoring Questions 23 42 52 44 14 175
Number of Non-Scoring Questions 25 25
Number of Total Questions 23 42 52 44 14 25 200
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Chapter 1 - Debrief
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From what we have understood so far is:
Project Management Institute
PMI Membership
Other PM Certifications & Bodies
About PMP® Credential
Project Management Body of Knowledge
Course Inline with 2016 January Exam Change
PMP Eligibility Criteria
PMP Exam Cost
PMP Application Process
Exam Pattern & Format
Chapter 1
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Understand
Project Management
Framework
Chapter 2
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Chapter 2
Objectives
Fundamentals of Project Management
Framework Project & Project Management
Operation
Program & Program Management
Portfolio & Portfolio Management
PMO & its connect across organization
Need for Projects
Role of a Project Manager
Qualities of a Project Manager
Product Life Cycle & Project Life Cycle
Enterprise Environmental Factors
Stakeholder & Relation to Project
Management by Objectives (MBO)
Project Manager’s Radar Wheel
Organizational Structure, Its Influence on
Projects
Organizational Process Assets
Project Triple Constraints
This chapter entails one to understand the fundamentals of Project Management framework.
One will understand the need for projects – why they exist. Role of a Project Manager & qualities one need to exhibit in Project Manager’s role inside a Product Life Cycle & Project Life Cycle.
Factors such as Enterprise Environmental Factors, Stakeholders, MBO, Organizational Structure, Organizational Process assets, Project Triple Constraints which influence the overall Project existence and the way it works towards Project end outcome.
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Quick Poll:
Which of these terms have you heard earlier in life?
Time
Opportunity / Scope
Price / Cost
Quality
Communication
Buy & Sell / Procurement
Work Force / Labor / Resources / Human Resources
Danger / Risk
Customers / Clients / Stakeholders
Putting it all together / Integration
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Fundamentals of Project Management Framework
What is a Project and Project management?
Project is a temporary endeavor with a beginning and end, undertaken to create a unique product, service or
result.
Example: Setup a Manufacturing line to produce goods.
Project management is a science and art to apply the knowledge, skills, tools & techniques to activities to meet project requirements.
What is an Operation?
Operation is an ongoing activity, to produce a similar ―attribute & characteristic‖ products or a repetitive service.
Example: Manufacturing line of a product.
What is a Program and Program management?
Program is a collection of projects managed /coordinated to acheive
strategic objectives of program and gain benefits & control which would not be possible with management of them individually.
Program management refers to the centralized coordinated effort to manage the program to meet the
strategic objective.
What is a Portfolio and Portfolio management?
Portfolio refers to collection of programs and projects grouped to meet a common strategic objective.
Portfolio management is the management of portfolios to deliver the strategic objectives in line & prioritized with the Organization’s objectives.
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Differences
Projects
Unique Products
One time endeavour
Start Date & End Date
Operations
Similar Products
On-going endeavour
No defined timeframe
Similarities Performed by people & resources
Constrained by limited availability of resources Planned, executed, and controlled
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Fundamentals of Project Management Framework
What is a PMO?
Project Management Office is a central management body to
coordinate for all the projects defined under its umbrella. Role and authority of a PMO in each organization may vary considerably.
How are Projects, Program, Portfolio & PMO connected?
Across the large organizations, you will find often these interconnections of the
entire functioning of the management as depicted here in the organizational chart.
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Project Management Roles
Project Manager
Project Coordinator
Project Expediter
Project Sponsor
Senior Management
Stakeholder
Functional Manager
Project Management Office
Program Manager
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Need for Projects
Role of a Project Manager
Qualities of a Project Manager
Why do we need Projects?
Projects are a means to acheive the discrete benefits, contribute to
the benefits of program, to the objectives of portfolio, and to the strategic plan of organization.
What is the role of a Project Manager?
Project Manager is a person assigned and authorized by
management to undertake a definitive, time bound, unique result oriented project with the organizational support to acheive its objectives.
Project Manager’s prime role is to integrate project aspects and then
to communicate across different stakeholders while execution of proactive steps to ensure the next steps are followed as planned originally.
What qualities should one have in that role?
Project Manager should be Knowledgeable, Performance
Oriented and have Personal traits. Knowledge about the project management, application of right set of tools and techniques.
Knowledgeable across the board of the end to end of the project management subject. Wider the
knowledge, more chances of Project manager to apply them.
Performance Oriented to apply the various tools & techniques to deliver or accomplish the results.
Personal traits like how you behave, your attitude, leadership
and general management abilities all applied to get the best outcome of the project.
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Product Life Cycle & Project Life Cycle
Different phases of the project organized in a manner to have better control of project itself is usually referred to as Project life cycle. Normally each project tends to have an unique lifecycle inline to the organization’s nature of business & approach to business.
Idea Ramp up Growth Prolonged Maturity
Death /Decline
P P
P P P P
P P P P P P
Project Initiating
Planning
Executing
Closure
Monitoring & Controlling
Product life cycle is the arrangement of different phases of product delivery itself and may contain multiple projects to contribute to the delivery.
Prolonged Maturity is desired as this would be the peak of the monetization period on the product.
Project life cycle across various natures of business can be called in different terms, however, all projects will predominantly follow the basic 5 stages as shown. Terms such as, Software Development Life Cycle, Financial Management Life Cycle, ICT Life Cycle,
Investment Life Cycle and so on.
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Enterprise Environmental Factors
Stakeholder & Relation to Project
Management by Objectives (MBO) What are Enterprise Environmental factors and how
do they relate to a project?
Enterprise environmental factors are
influences which alter the course of a
project or its existence.
For example, in pharmaceutical industry,
the Regulatory clauses by the Regulator.
The new clauses published by regulator
will cause the project to change its
course or direction towards its end
objectives.
Who are Stakeholders and their relation to Project?
Stakeholders as the definition itself
suggests, Stake + Holders. Anyone who
has stake in the project would be a
stakeholder. They can be internal or
external to the organization. Because of
the nature of holding stake in the
project, stakeholders exert enormous
influence over the course of the project
direction.
And success of any project depends on
effective stakeholder management, PMI
has introduced a separate chapter in
the 5th edition of PMBOK to address the
concept of Stakeholder Management.
What is MBO (Management by Objectives)?
SMART Objectives with Corrective Actions which
are defined & Supported extensively by
Management.
SMART is defined as:
Specific – Should be Specific as possible.
Measureable – Should be Quantifiable.
Attainable – Should be challenging yet
achievable.
Realistic – Should be practical and doable.
Timely – Should be Time Bound.
Why does organization adopt the MBO philosophy?
Stakeholders as the definition itself
suggests, Organizations with clearly
defined, transparent objectives installed
across the organizations tend to perform
better.
Increases dramatically the organization
end focus to work upon and builds
cohesiveness across the organization to
achieve the desired outcome.
This means a profitable and flourishing
business.
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Project Manager’s Radar Wheel
0
2
4
6
8
10
12
Scope
Schedule
Cost
Quality
HR
Communication
Risk
Procurement
Integration
Stakeholder
PM time expected in a Project Sample - PM time realistically spent
Project Manager role demands a lot and it
is truely a multi-dimensional role as
depcited in the PM’s Radar Wheel.
One has to be aware, PM has to manage
his time effectively and spend it wisely
without which the project is going to be in
a struggling mode.
For illustrations purpose:
A sample project has been outlined
where the project manager is
supposed to meet 10 points on every
front of the project dimension.
Although when you chart out the
realistic project manager pull and push,
it would never be a 10 point perfect
scale.
Radar wheel depicts the realistic points
where the project manager would
have spent based on the needs of the
project.
Project Manager’s time is critical for success of project!
PM spends ~90% (majority) of time in communication.
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Organizational Structure, Its Influence on Projects
Organizational Process Assets
How does an Organizational Structure influence on
Projects and Project Management?
Organizational structure creates the
environment on how the project team will
function, communicate and ofcourse
escalate or appraise a project situation.
And this is a very important factor which can
alter the course of the project and how
project management is perceived or viewed
in the organization. Let us understand this
visually through the chart.
In all cases of discussion, even for exam, unless
explicitly mentioned, always go with the
assumption of Matrix organization.
What are the organization’s process assets which
influence Projects?
The list of such process assets could be
enormous.
Here are some of the most frequenlty used
assets.
Policies & Controls
Standards & Guidelines
Tools & Templates
Checklists & Criteria's
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Projectized Organization
Org2:
Dedicated Project Manager has complete Team working for Project
Manager direct reporting lines
Org1 Client
Project Manager
Design Manager
Design Team Design Team
Development Manager
Development Team
Development Team
Quality Manager
Quality Team
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Functional Organization
Org2: Functional Managers act like Project Manager. No Project
Manager.
Org1 Client
Design Manager
Design Team Design Team
Development Manager
Development Team
Development Team
Quality Manager
Quality Team
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Balanced Matrix Organization
Org2: Project Manager & Functional Managers with equal Power
Org1 Client
Project Manager
Design Manager
Design Team Design Team
Development Manager
Development Team
Development Team
Quality Manager
Quality Team
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Weak Balanced Matrix
Organization
Org2: Project Manager with Weak Power. Acts as Project Coordinator.
Org1 Client
Design Manager
Design Team Design Team
Development Manager
Development Team
Development Team
Quality Manager
Quality Team
Project Coordinator from PMO
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Strong Balanced Matrix
Organization
Org2:
Project Manager acts as Authority on Functional
Managers. Has strong power.
Org1 Client
Project Manager
Design Manager
Design Team Design Team
Development Manager
Development Team
Development Team
Quality Manager
Quality Team
Development Manager acts as Project Manager
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In Class Activity - Quick Role Play
Scenario:
Client has asked the Business Head to deliver a new product for their business
enhancement.
Roles Required – Volunteers please.
Client
Business Head
Project Manager
Resource Manager
Team Member
Assumptions:
Make your assumptions – inform before hand in writing.
What to achieve from the role play?
Give the client confidence about the delivery of the new product.
Let us discuss the Learning's.
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Project Triple Constraints
Time, Scope, Cost are marked on the corners of the triangle (project) representing intended constraints on Project are referred as triple constraint.
Any pull on one constraint in its own direction changes the dimensions of other two corners of triangle and alters project.
Quality is inherent to the project and goes accordingly with pull and push of triple constraints.
Triple Constraint also known as Iron Triangle.
Time
Scope Cost
Quality
Risk
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Chapter 2 - Debrief
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THIS BRINGS TO CHAPTER 2 COMPLETION.
From what we have understood so far is: Fundamentals of Project Management Framework
Project & Project Management
Operation
Program & Program Management
Portfolio & Portfolio Management
PMO & its connect across organization
Need for Projects
Role of a Project Manager
Qualities of a Project Manager
Product Life Cycle & Project Life Cycle
Enterprise Environmental Factors
Stakeholder & Relation to Project
Management by Objectives (MBO)
Project Manager’s Radar Wheel
Organizational Structure, Its Influence on Projects
Organizational Process Assets
Project Triple Constraints
Chapter 2
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Project Management
Process Groups
Chapter 3
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Chapter 3
Objectives
Common Inputs, Tools & Techniques, Outputs (ITTOs)
Initiating Process Groups - 2 Processes
Planning Process Groups - 24 Processes
Executing Process Groups - 8 Processes
Monitoring & Controlling Process Groups - 11 Processes
Closing Process Groups - 2 Processes
All the above 47 Processes & their Inputs, Tools & Techniques, Outputs (ITTOs)
This chapter entails one to understand the 5 different Process Groups, 47 Processes, their Inputs, Tools & Techniques, Outputs.
Detailed understanding about each of these 47 processes with practical and theoretical knowledge.
Understand some of the important concepts of project management process groups and processes with the aid of samples and examples.
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Project Management Process Groups
Based on the W. Edward Deming Plan-Do-Check-Act
cycle and groups are largely derived from same.
Project Management is Integration of these
processes running across the project. Actions taken
during one process typically need alignment and
coordination with interfacing processes. These
project management processes are grouped into
five groups.
1. Initiating Process Group: Processes performed to define and authorize the new project and start.
2. Planning Process Group: Processes performed to scope the project, refine project objectives, and define course of action to acheive project objectives.
3. Executing Process Group: Processes performed to complete the defined
work inline with specifications.
4. Monitoring & Controlling Process Group: Processes perfomed to monitor the work being performed to the specifications and perform processes to adopt changes in order to bring
back the work being performed inline to the specifications.
5. Closing Process Group: Processes performed to closure of all activities and finally the project end formally.
Project Management
Processes
Plan
Do
Check
Act
Planning
Execution
Monitoring
Controlling
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8 Initiating Domain Process Group Tasks
1. Perform project assessment based upon
available information, lessons learned from
previous projects, and meetings with relevant
stakeholders, in order to support the evaluation
of the feasibility of new products or services
within the given assumptions and/or
constraints.
2. Identify key deliverables based on the business
requirements, in order to manage customer
expectations and direct the achievement of
project goals.
3. Perform stakeholder analysis using appropriate
tools and techniques, in order to align
expectations and gain support for the project.
4. Identify high level risks, assumptions, and
constraints based on the current environment,
organizational factors, historical data and
expert judgment, in order to propose an
implementation strategy.
5. Participate in the development of the project
charter by compiling and analysing gathered
information, in order to ensure project
stakeholders are in agreement on its elements.
6. Obtain project charter approval from the
sponsor, in order to formalize the authority
assigned to the project manager and gain
commitment and acceptance for the project.
7. Conduct benefit analysis with stakeholders
(including sponsor, customer, subject matter
experts), in order to validate project alignment
with organizational strategy and expected
business value.
8. Inform stakeholders of the approved project
charter, in order to ensure common
understanding of the key deliverables,
milestones, and their roles and responsibilities.
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13 Planning Domain Process Group Tasks
1. Review and assess detailed project
requirements, constraints, and assumptions
with stakeholders based on the project
charter, lessons learned, and by using
requirement gathering techniques, in order to
establish detailed project deliverables.
2. Develop a scope management plan, based
on the approved project scope and using
scope management techniques, in order to
define, maintain, and manage the scope of
the project.
3. Develop the cost management plan based on
the project scope, schedule, resources,
approved project charter and other
information, using estimating techniques, in
order to manage project costs.
4. Develop the project schedule based on the approved project deliverables and milestones,
scope, and resource management plans, in
order to manage timely completion of the
project.
5. Develop the human resource management
plan by defining the roles and responsibilities of
the project team members, in order to create
a project organizational structure and provide
guidance regarding how resources will be
assigned and managed.
6. Develop the communications management
plan based on the project organization
structure and stakeholder requirements, in
order to define and manage the flow of
project information.
7. Develop the procurement management plan
based on the project scope, budget, and
schedule, in order to ensure that the required
project resources will be available.
8. Develop the quality management plan and
define the quality standards for the project
and its products, based on the project scope,
risks, and requirements, in order to prevent the
occurrence of defects and control the cost of
quality.
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13 Planning Domain Process Group Tasks
9. Develop change management plan by
defining how changes will be addressed and
controlled, in order to track & manage
change.
10. Develop the risk management plan by
identifying, analysing, and prioritizing project
risks, and defining risk response strategies, in
order to manage uncertainty and opportunity
throughout the project life cycle.
11. Present the project management plan to the
relevant stakeholders according to applicable
policies and procedures, in order to obtain
approval to proceed with project execution.
12. Conduct kick-off meeting, communicating the
start of the project, key milestones, and other
relevant information, in order to inform and
engage stakeholders and gain commitment.
13. Develop the stakeholder management plan
by analysing needs, interests, and potential
impact, in order to effectively manage
stakeholders’ expectations and engage them
in project decisions.
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7 Executing Domain Process Group Tasks
1. Acquire and manage project resources by
following the human resource and
procurement management plans, in order to
meet project requirements.
2. Manage task execution based on the project
management plan by leading and developing
the project team, in order to achieve project
deliverables.
3. Implement the quality management plan using
the appropriate tools and techniques, in order
to ensure that work is performed in
accordance with required quality standards.
4. Implement approved changes and corrective
actions by following the change management
plan, in order to meet project requirements.
5. Implement approved actions by following the
risk management plan, in order to minimize the
impact of the risks and take advantage of
opportunities on the project.
6. Manage the flow of information by following
the communications plan, in order to keep
stakeholders engaged and informed.
7. Maintain stakeholder relationships by following
the stakeholder management plan, in order to
receive continued support and manage
expectations.
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7 Monitoring & Controlling Domain
Process Group Tasks
1. Measure project performance using
appropriate tools and techniques, in order to
identify and quantify any variances and
corrective actions.
2. Manage changes to the project by following
the change management plan, in order to
ensure that project goals remain aligned with
business needs.
3. Verify that project deliverables conform to the
quality standards established in the quality
management plan by using appropriate tools
and techniques, in order to meet project
requirements and business needs.
4. Monitor and assess risk by determining whether
exposure has changed and evaluating the
effectiveness of response strategies, in order to
manage the impact of risks and opportunities
on the project.
5. Review the issue log, and update if necessary,
and determine corrective actions by using
appropriate tools and techniques, in order to
minimize the impact on the project.
6. Capture, analyze, and manage lessons
learned using lessons learned management
techniques, in order to enable continuous
improvement.
7. Monitor procurement activities according to
the procurement plan, in order to verify
compliance with project objectives.
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7 Closing Domain Process Group Tasks
1. Obtain final acceptance of the project
deliverables from relevant stakeholders, in
order to confirm that project scope and
deliverables were achieved.
2. Transfer the ownership of deliverables to the
assigned stakeholders in accordance with the
project plan, in order to facilitate project
closure.
3. Obtain financial, legal, and administrative
closure using generally accepted practices
and policies, in order to communicate formal
project closure and ensure transfer of liability.
4. Prepare and share the final project report
according to the communications
management plan, in order to document and
convey project performance and assist in
project evaluation.
5. Collate lessons learned that were documented
throughout the project and conduct a
comprehensive project review, in order to
update the organization’s knowledge base.
6. Archive project documents and materials using
generally accepted practices, in order to
comply with statutory requirements and for
potential use in future projects and audits.
7. Obtain feedback from relevant stakeholders,
using appropriate tools and techniques and
based on the stakeholder management plan,
in order to evaluate their satisfaction.
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Understand PMBOK
5 Process Groups
Initiating Process Group
Planning Process Group
Executing Process Group
Monitoring & Controlling Process Group
Closing Process Group
10 Knowledge Areas
Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resource Management
Communication Management
Risk Management
Procurement Management
Stakeholder Management
Initiating
Planning
Executing
Closure
Monitoring & Controlling
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Client
Project
Vendor
Vendor
Work
PM
ClientPM
VendorPM
Vendor PM
Internal Stakeholders External Stakeholders External Stakeholders
Organization 1
Organization 2
Organization 3
Organization 4
Internal
External
External
For effective preparation, consider yourself to be in the center of entire project engagement during
PMBOK Study
Foundation: PMBOK Study Assumption
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47 Processes
Knowledge Area
Initiating (2P) 13% Questions
Planning (24 P) 24% Questions
Executing (8P) 30% Questions
Monitoring & Controlling (11P) 25% Questions
Closing (2P) 8% Questions
Integration 4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3 Direct And Manage Project Work
4.4 Monitor And Control Project Work 4.5 Perform Integrated Change Control
4.6 Close Project Or Phase
Scope
5.1 Plan Scope Management 5.2 Collect Requirements 5.3 Define Scope 5.4 Create WBS
5.5 Validate Scope 5.6 Control Scope
Time
6.1 Plan Schedule Management 6.2 Define Activities 6.3 Sequence Activities 6.4 Estimate Activity Resources 6.5 Estimate Activity Duration 6.6 Develop Schedule
6.7 Control Schedule
Cost 7.1 Plan Cost Management 7.2 Estimate Costs 7.3 Determine Budget
7.4 Control Costs
Quality 8.1 Plan Quality Management 8.2 Perform Quality Assurance
8.3 Control Quality
Each process has
Inputs to the process
Tools & Techniques applied to the process
Outputs from the process
Table Continued…
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47 Processes
Knowledge Area
Initiating (2P) 13% Questions
Planning (24 P) 24% Questions
Executing (8P) 30% Questions
Monitoring & Controlling (11P) 25% Questions
Closing (2P) 8% Questions
Human Resources
9.1 Plan HR Management
9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team
Communications 10.1 Plan Communications Management
10.2 Manage Communications
10.3 Control Communications
Risk
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
11.6 Control Risks
Procurement 12.1 Plan Procurement Management
12.2 Conduct Procurements
12.3 Control Procurements
12.4 Close Procurement
Stakeholder 13.1 Identify Stakeholders
13.2 Plan Stakeholder Management
13.3 Manage Stakeholder Engagement
13.4 Control Stakeholder Engagement
Each process has
Inputs to the process
Tools & Techniques applied to the process
Outputs from the process
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Common ITTO’s
Common
Inputs
• Project Management Plan
• Enterprise Environmental Factors
• Organizational Process Assets
Common
Tools & Techniques
• Expert Judgment
Common
Outputs
• Project Management Plan updates
• Project document updates
• Change Requests
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Common Inputs
Project Management Plan
• Is created across the processes in summary or detailed manner.
• Is the basis for all the project work to be accomplished based on the approach defined in the plan.
Enterprise Environmental Factors
•Factors which have direct or indirect influence on the outcome of Project.
•Could be Internal to the organization or beyond organization – external.
•Some of them are listed here:
•Organization Culture
•Organization Format & structure
•Human Resource Policies
•Political Climate
•Regulatory environment
•Government Environment Policy
•Financial & Market Conditions…
Organizational Process Assets
•Organizational assets within the organization to help & guide project manager accomplish project delivery.
•Some of them are listed here:
•Processes, Guidelines and Procedures
•Examples: Financial Payment Processes, Technical Guidelines, Disaster Recovery Procedures
•Corporate Knowledge Base
•Examples: Historical Project Files & Reports, Past lessons learned
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Common Tools & Techniques
Expert Judgment
• Experts in their Subject Matter are considered to be the prime source of information for the project manager to gather inputs on any particular subject.
• This is one of the elements for decision making process for project manager and management.
• Project Manager also utilizes the Expert skills to resolve issues in that particular expertise domain. This ensures that project manager is only a facilitator and not the problem solver him/herself.
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Common Outputs
Project Management Plan Updates
• Is created across the processes in summary or detailed manner and becomes the continuously evolving output from each process
• Is utilized by all project team members
Project Document Updates
• At any given point the project documents need to be up to date
• Documents which get updated include:
• Requirements Document
• Project Issue Log
• Risk Register
• Stakeholder Register
• Performance Reports
• Communication Log
Change Requests
• All change requests derived out of each input or process is an output.
• This is also an input to Integrated Change Control Process which includes Corrective, Preventive actions, defect repairs and scope changes.
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We Learnt: Common ITTO’s
Common
Inputs
• Project Management Plan
• Enterprise Environmental Factors
• Organizational Process Assets
Common
Tools & Techniques
• Expert Judgment
Common
Outputs
• Project Management Plan updates
• Project document updates
• Change Requests
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Let us talk about Initiating Key Purpose of this Group:
Align Stakeholder Expectations to
Project’s Purpose
Nature of aspects involved in Initiating:
Selection of the Project using
Business Case
Project feasibility check &
Product fitment
Selection of the Sponsor
Identification of all Stakeholders
Cultivate Stakeholder
Management Strategy
Gather preliminary information
required for Project
establishment including
processes and lessons learnt
Evaluate Initial requirements,
Identify Risks & Evaluate
Assumptions
Selection of the Project Manager
Develop Project Charter
Breakdown Project into phases
based on Strategy
Define High level objectives of
the Project
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Exam Perspective on Initiating
Primary goals of Initiating are:
Develop project charter
Identify Stakeholders
Understand the following in Initiating:
Staffing is very low
Costs are very low
Chances of Project success are very low
Risks are higher
Stakeholders Influences are higher
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Let us talk about Planning Key Purpose of this Group:
Develop Project Management Plan
along with subsidiary Management Plans
Nature of aspects involved in Planning:
Planning all phases of the Project
Plan all subsidiary management plans
Detailed Scope Requirements & Develop Scope Statement
Evaluation of Detailed Time(Schedule), Cost(Budget) Needs, Quality (Benchmark Standards, Adoption of Processes, Metrics)
Identify Procurement Needs(Purchases)
Define the Human Resource Requirements including Roles,
Responsibilities Matrix
WBS Creation & WBS Dictionary Development
Create activity list, network diagrams, resource requirements
Identification of Project Critical Path
Perform Risk Identification, Risk Qualitative & Quantitative Analysis with Risk Response Strategy
Develop detailed Procurement plan
Develop Process Improvement plan
Develop Change management plan
Develop Project Performance measurement plan & Establish Baselines
Approval on the Project Plans
Kick Off Project Execution
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Exam Perspective on Planning
Primary goals of Planning are:
Finalize a Project Management Plan
Establish supporting Subsidiary Management Plans
Understand the following in Planning:
Project Management Plan and Subsidiary
Management Plans are not finalized until a
thorough Risk assessment and identification has
been performed
Before using any of these plans, all of them need
to be approved by the Project
board/Sponsor/Stakeholders
Provisions should be made in the entire planning
to accommodate the changes which will arise
across the project dimensions
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Let us talk about Executing
Key Purpose of this Group:
Get the work done as defined in the management plans by using all
defined means
Nature of aspects involved in Executing:
Project Work Execution as per Baselines
Acquire & Deploy Procured Services,
Products & Resources
Select Sellers & Check Quality of Deliverables from Procurement
Deploy & manage the Human Resources
Project Team Performance Reinforcements, Rewards,
Recognition, Team Building
Conduct Meetings & Communicate Information
Adherence to the Project Processes
Implement Approved Changes by CCB (Change Control Board)
Quality Assurance & Quality Audits, Continuous Process Improvements
Record Issues in the Issue Log, assist the Conflict Resolution
Produce the Deliverables
Ramp down Resources and finally release
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Exam Perspective on Executing
Primary goals of Executing are:
Direct and Manage Project Work
Re-adopt and Refine the Project
Work as progression happens
Understand the following in Executing:
Project progression involves
getting the work accomplished
along with the re-planning,
updates and re-baseline the
project upon approvals
Large amount of the entire project
sum is expensed in this stage
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Let us talk about Monitoring &
Controlling Key Purpose of this Group:
Is to measure the performance of the project, address change requests,
recommended corrective and preventive actions along with implement defect repairs
Nature of aspects involved in Monitoring & Controlling:
Measure work against the Project performance baselines
Enable corrective and preventive actions
Enable approved baseline changes & re-calibered Project plan
Seek approval for the Change
Requests
Perform Quality Control
Perform Procurement Monitoring
Perform Risk Audits
Perform Integrated Change Control
Perform Forecast Management
Perform Configuration
Appraise Stakeholders with actionable information
Get an approval on the deliverables from Customer
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Exam Perspective on
Monitoring & Controlling Primary goals of Monitoring & Controlling are:
Monitor and Control Project Work and Integrate Change Control
Pay more attention on these areas:
Perform root cause analysis
Secure additional funding
Perform validated defect repair
Calculate ETC(Estimate to Complete)
Reassess project control system for effectiveness
Understand the following in Monitoring & Controlling:
Project subsidiary plans are complete and realistic
Project performance is measured against metrics
Variances observed are rectified with corrective actions
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Let us talk about Closing
Key Purpose of this Group:
Project performed is now
brought to a proper closure with
all the proper project details
been documented, archived,
released and published
Nature of aspects involved in Closing:
Conformity to Product
Requirements
Procurement Closure
Phase Closure
Product Acceptance
Financial Closure
Stakeholder Appraisal of Project
Performance
Document Project Performance
Report
Document Project Lessons Learnt
Archive Project information for
Future use
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Exam Perspective on Closing
Primary goals of Closing are:
Ensure Project Administrative Closure on the Project is completed(without which project is not marked complete)
Understand the following in Closing:
Project is not always only closed in proper manner, it may also be subject of Project termination
Reasons for Project termination has to be detailed and documented formally for future references
After the Project is closed formally, it is time to Celebrate.
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Chapter 3 - Debrief
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THIS BRINGS TO CHAPTER 3 COMPLETION.
From what we have understood so far is:
Common Inputs, Tools & Techniques, Outputs (ITTOs)
Initiating Process Groups - 2 Processes
Planning Process Groups - 24 Processes
Executing Process Groups - 8 Processes
Monitoring & Controlling Process Groups - 11 Processes
Closing Process Groups - 2 Processes
All above 47 Processes & their Inputs, Tools & Techniques, Outputs (ITTOs)
Chapter 3
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Integration Management
Chapter 4
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Chapter 4
Objectives
Understand the different Integration
Management Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Integration aspects required to pull together the project towards its success!
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Project Integration Management is the integration of actions
in a consolidated manner across various processes to ensure
the overall project still delivers on all intended aspects of the
project requirements.
Project Integration is essential to proper and up to date
functioning of the project by ensuring :
right options are derived for resource allocation
approved changes to the project scope are vitalized
decisions taken on the competing project objectives
triggering right processes for next action
engaging stakeholders with effective communication &
information across the changes
managing inter dependencies between processes &
knowledge areas
consistency in delivery approach, documentation,
standards being adopted across processes
Knowledge Area: Integration Management
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There are 6 Integration Management processes:
1. Develop Project Charter
Develop a document called Project Charter to formally authorize the project and start
using organizational resources by Project Manager
2. Develop Project Management Plan
Develop a plan which will include all subsidiary management plans and
integrated baselines
3. Direct and Manage Project Work
Directing and Managing the planned work along with implementing the approved changes
4. Monitor and Control Project Work
Monitoring and Controlling of project work during execution of project while status reports circulated, corrective & preventive actions implemented
5. Perform Integrated Change Control
Integrating the approved changes and keeping the project focused to deliver end project objectives
6. Close Project or Phase
Formally closing all project/phase related activities
Knowledge Area: Integration Management
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4.1 Develop Project Charter
Inputs
• Statement Of Work
• Business Case
• Contract
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Expert Judgment
Outputs
• Project Charter
• Integration
• Develop Project Charter
• Scope
• Time
• Cost
• Quality
• Human Resource
• Communications
• Risk
• Procurement
• Stakeholder
• Identify Stakeholders
Initiating Process Development of a formal document which authorizes project, outlining preliminary requirements of stakeholder’s and is a mandatory step to start the project.
Project charter has to be signed by a Sponsor who is a higher authority than a project manager and with knowledgeable about both internal & external needs &
influences.
PM’s Authority can be in multiple
ways, exerted on team.
Positional – Authorized to act
on behalf of sponsor
/management
Referent – Influence using
their own personality
Reward – Influence using the
incentives and recognition.
This is the most influential
Expert – Influence using the
subject matter expertise or
respect because of PM skills
Coercive – Influence using
the fear or rebuke. This is the
least influential
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Statement of Work (SOW)
Statement of work is the nature of product or service to be delivered at end of project.
For Internal Projects, Project Initiator or Sponsor provides the SOW.
For External Projects, in addition Customer may also provide the SOW.
It may constitute of:
Business Need
Defines what the business would serve to the needs of the market or introduce new product/service.
High Level Product Scope
Defines what product will be actually be capable of and how it will serve the business need.
Strategic Plan
Defines how the project is inclined to the organizational goals. All projects should be always inclined towards organizations strategic goals in addition to serve the business need.
Business Case establishes whether the project is worth the investment.
Executives or Management uses this knowledge to make investment decision into the project.
Business Analysts are the key group to perform the Cost Benefit Analysis (CBA) of the project based on the stakeholder inputs and then consumed by the executives for decision making.
Business Case is the result of the need, it could be:
Market Requirement
Customer Need
Social Need
Technological Requirement
Organizational Advancement
Compliance
Ecological Need
…
Business Case
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How Projects are chosen
for Investment?
• Present value of Project considering future cash inflows & cash outflows, also includes inflation rate & foreign exchange rates
• NPV = 𝐹𝑉
(1+𝑟)𝑛
• FV-Future value, r-Interest rate, n- Time period
NPV
Net Present Value
• IRR is known as the Annualized effective compounded return rate on the Project / Investment.
• Also known as Effective Interest Rate.
IRR
Internal Rate of Return
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• Returns on Invested Value are calculated as a metric to compare amongst several Projects or to make Investment decisions.
• ROI = Net Profit / Investment Value
ROI
Return on Investment
• Considered as typically a Period of Investment to be earned back or to break even point.
• Payback Period = 𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝐶𝑎𝑠 𝐼𝑛𝑓𝑙𝑜𝑤 − 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠𝑖=0
Payback Period
Projects are picked for investment based
on many parameters in an organization.
Golden Rule of Selection:
Highest NPV Wins!
Highest IRR Wins!
Highest ROI Wins!
Lowest Payback Period Wins!
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Project Charter It is the document issued by project
initiator or sponsor to formally authorize
existence of a project and provide the
project manager with the authority to
apply organizational resources to project
activities.
It documents the business/customer
needs, assumptions, constraints, and
high-level requirements to develop or
create new product, service, or result.
Intended to satisfy the needs such as:
Project purpose or justification,
Measurable project objectives and
related success criteria,
High-level requirements, Assumptions
and constraints,
High-level project description and
boundaries,
High-level risks, Summary milestone
schedule,
Summary budget, Stakeholder list,
Project approval requirements
(i.e., what constitutes project
success, who decides the project
is successful, and who signs off on
the project),
Assigned project manager,
responsibility, and authority level
Name and authority of the
sponsor or other person(s)
authorizing the project charter.
The size of the project charter varies
on complexity of project and
information known at the time of its
creation.
At minimum, the charter should outline
the high-level boundaries of project.
This document is created initially and
NOT updated on continual mode.
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4.2 Develop Project Management Plan
Inputs
• Project Charter
• Outputs From Other Processes
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Expert Judgment
• Facilitation Techniques
Outputs
• Project Management Plan
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
In order to develop a ―comprehensive project
management plan‖ based on which the project work
itself can be accomplished, it requires to define, prepare
and coordinate all the sub-plans and integrate them.
This plan document will define the approach of the work
to be done, how the project will be executed, monitored
& controlled, along with how to close the project.
Project management plan document may include:
Subsidiary Project Management Plans
Project Phases
Change Control Process
…
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Facilitation techniques have broad application within project management
processes and are used to guide the development of the project
management plan.
Some of the key techniques used by facilitators to help teams and individuals
achieve agreement to accomplish project planning activities include:
Brainstorming
Conflict resolution
Problem solving
Meeting management
Facilitation Techniques
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Project management plan components may
include, but not limited to:
Baselines(Scope, Schedule, Cost)
Scope Baseline(Project Scope
Document, WBS, WBS Dictionary)
Subsidiary Management Plans(Scope,
Requirements, Schedule, Cost, Quality,
Process Improvement, Human Resources,
Communications, Risk, Procurement,
Stakeholder)
Project management processes
Level of implementation for each process
Tools and techniques to be used
How work will be executed, changes will
be monitored and controlled
How configuration management will be
performed
How baseline integrity will be maintained
Project Management Plan Stakeholder communication needs
Project life cycle, its phases and
processes applied
Key management reviews including
periodic issue management,
escalation meetings, risk reviews so on.
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Project Documents
Apart from the Project management
plan, there are project documents
which are generated and used for
managing project outcome.
Here is a list of some of them:
• Activity Attributes
• Activity Cost Estimates
• Activity Duration Estimates
• Activity List
• Activity Resource Requirements
• Agreements
• Basis Of Estimates
• Change Log
• Change Requests
• Forecasts
• Cost Forecast
• Schedule Forecast
• Issue Log
• Milestone List
• Procurement Documents
• Procurement Statement Of Work
• Project Calendars
• Project Charter
• Project Funding Requirements
• Project Schedule
• Project Schedule Network
Diagrams
• Project Staff Assignments
• Project Statement Of Work
• Quality Checklists
• Quality Control Measurements
• Quality Metrics
• Requirements Documentation
• Requirements Traceability Matrix
• Resource Breakdown Structure
• Resource Calendars
• Risk Register
• Schedule Data
• Seller Proposals
• Source Selection Criteria
• Stakeholder Register
• Team Performance Assessments
• Work Performance Data
• Work Performance Information
• Work Performance Reports
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4.3 Direct and Manage Project Work
Inputs
•Project Management Plan
•Approved Change Requests
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Project Management Information Systems
•Meetings
Outputs
•Deliverables
•Work Performance Data
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process Directing and managing the
project work execution to ensure
the project objectives are met
along with any approved changes
of work also being executed.
In addition to managing the
planned activities, project
management team also has to
deal with unplanned ad-hoc tasks
which may be beneficial to the
success of the project objectives.
Key benefit of this process is it
provides overall management of
project work as per the needs of
the project objectives.
This process includes activities as:
Perform activities to accomplish
project work towards the objectives
Create Project Deliverables
Up skill the project team to ensure
capabilities to accomplish the tasks
Procure required budget, time,
resources, material
Establish the processes and
procedures to be followed
Establish communication channels
and contracts with third parties
Manage risks, evaluate constraints
and validate assumptions of work
Manage stakeholders and their
engagement levels are adequate
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Corrective Action
Deviations to the planned work has to be
brought back in the line of planned work,
this is accomplished with the
implementation of Corrective actions.
Preventive Action
Deviations to the planned work has to be
brought Deviations to the planned work
once acted with correction actions
should be altered such that any further
deviations are prevented with
implementation of Preventive actions.
Defect Repair
In order to ensure any activity which is
leading to non-conformance of the
product requirements is repaired to
deliver a conformance to the product
requirements
Corrective Preventive
Effe
ctiv
enes
s is
h
igh
Co
sts
are
hig
h
4.3 Direct and Manage Project Work In addition to ensure project work is accomplished, sometimes Project Management
Team has to establish suitable actions for implementation of Work & Approved changes.
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Deliverables are the actual outcomes
of any particular phase, module,
process or it may be Project.
Each deliverable is a tangible end
outcome which can be measured in accordance to the defined
objectives.
All deliverables are usually passed
through the quality processes to
ensure they meet the desired quality
and performance.
All these deliverables collectively
contribute towards the end Project
deliverables.
The smallest scale of raw data which is
used to execute the work being
performed to accomplish the work.
Such data gathered during the
execution of processes or work
accomplished is in some cases
retained for further analysis and in
some other cases purged to ensure no
further confidentiality of such data be
maintained.
In some cases the historical record of
such data is valuable for new projects
in similar industries.
Examples include KPI’s (Key
Performance Indicators), actual costs,
number of defects, performance
metrics, simulation records, actual
duration of the tasks and so on. Tangible Outcomes
Tangible Outcomes
Tangible Outcomes
Tangible Outcomes
Deliverables Work Performance Data
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4.4 Monitor and Control Project Work
Inputs
•Project Management Plan
•Schedule Forecasts
•Cost Forecasts
•Validated Changes
•Work Performance Information
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Analytical Techniques
•Project Management Information Systems
•Meetings
Outputs
•Change Requests
•Work Performance Reports
•Project Management Plan Updates
•Project Document Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is a process of how to monitor work in progress & control work in progress so that it meets end project objectives. During the process:
work performance is reviewed & continuous reports are generated to circulate
corrective & preventive actions implemented to put work back on track
forecasts are being circulated for future project path.
Key benefit is that it generates a ready understanding of the current progress on project and future project forecast.
In order to effectively monitor and control work being done by the team, work performed and progress of the work can be compared with baselines developed in planning.
Baselines can be for Project scope, cost, time and quality.
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4.5 Perform Integrated Change Control
Inputs
•Project Management Plan
•Work Performance Reports
•Change Requests
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Meetings
•Change Control Tools
Outputs
•Approved Change Requests
•Change Log
•Project Management Plan Updates
•Project Document Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is a process to perform
integrated changes to the
project and define the new plans
arising due the changes which
have been accepted.
During the course of the project a
series of changes occur which
could be minor, moderate, major
and based on the CCB(Change
Control Board) these changes
are either Accepted, Rejected or
Delayed.
Once the new plans are
established, the respective
baselines are adopted and a
new perspective on the project is
circulated among stakeholders.
Perform Integrated Change
Control is performed over the
duration of the entire project and
is sole responsibility of the Project
Manager.
Approved Change Requests may
require completely new or revised
estimates of the Cost, Activity,
Schedule, Resources and Risk
evaluation.
All changes go through CCB and
approved by Project
Sponsor/Project Manager. In
some cases
stakeholders/customers are
additionally included to CCB for
additional approval.
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Change Control focuses on the
changes to ensure the project
objectives are achieved. Configuration
control is focused on specification of
the processes and the deliverables.
Some of the Configuration
Management activities included in the
Perform Change Control process are:
1. Configuration Identification
2. Configuration status Accounting
3. Configuration Verification and
Audit
Configuration Identification
Identification and Selection of the
Configuration items which helps in
managing the accountability for the
entire project duration.
Configuration Status Accounting
Once accounted, the status of the
configuration item has to be reported
to the team and the stakeholders for
rest of the project duration.
Configuration Verification and Audit
Ensures the configuration items are
correctly marked, addressed, labeled,
registered and implemented as
identified in the project audit summary.
Change Control and Configuration Control
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Collection of formal documented procedures, paperwork, tracking systems and approval levels for authorizing changes.
Plan for how changes will be managed
CCB creation
Change Control Tools are essential for the
performance of the Integrated Change Control
Process of Project management. This should not
be considered as IT Change Management.
Identification of the right tool(either manual or
automated) may be chosen based upon the
project management team and stakeholder
requirements.
Normally the tools which are chosen should
enable the project management team to
perform the change control along with
automated communication flows and decision
publishing to the stakeholder groups.
Change Control Tools
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Approved Change Requests
Changes which are pushed or pulled to the CCB are either approved or rejected
and in cases it may be delayed for further evaluation.
Once the changes are approved they are supposed to be implemented in the
project with the Direct and Manage Work execution process.
The status changes of all the changes in the CCB are recorded and circulated to the
intended teams along with the stakeholders for further information, action and
support
All changes are recorded in the change log during the project duration whether they
are approved or rejected.
Change Log
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Change Desired
Define Change
Impact Analysis
CCB Review
Project Revised
Deliver Project
Re-evaluate Change
Maintain Change
Log
CCB will ensure Project
Manager has sufficient
control over the changes.
Uncontrolled change
implementations
with/without the
knowledge of Project
Management Team often
results in Termination of
Projects – since they lack
the overall vision of the
project if the changes are
not addressed properly.
Forming the committee of
members (including client)
on CCB ensures the
stakeholders know and
make approval on only
desired changes toward
the project or act upon
them accordingly.
Change Control Board (CCB) Flow
Rejected Changes
Delayed Changes
Scheduled
Integrated Approved
Change Requests
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4.6 Close Project Or Phase
Inputs
•Project Management Plan
•Accepted Deliverables
•Organizational Process Assets
Tools & Techniques
•Expert Judgments
•Analytical Techniques
•Meetings
Outputs
•Final Product, Service or Result Transition
•Organizational Process Assets Updates
•Integration
•Close Project Or Phase
•Scope
•Time
•Cost
•Quality
•Human Resource
•Communications
•Risk
•Procurement
•Stakeholder
•Close Procurements
Closing Process
This is the process of closing project with all project related activities in the manner the project objectives are accomplished.
Key benefit of the process is to formal closure of all project activities, generate the lessons learned, release the organizational resources for next projects.
Closure of the project is performed once the Project Scope is realized as per the Scope Baseline and confirmed by project management team.
In case of the project being terminated, the Close Project process ensures a detailed investigation into the reasons why the project
had to be terminated and the lessons are documented accordingly.
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Chapter 4 - Debrief
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THIS BRINGS TO “INTEGRATION MANAGEMENT” COMPLETION.
From what we have understood so far is:
6 Integration Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 4
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Scope Management
Chapter 5
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Chapter 5
Objectives
Understand the different Scope
Management Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Scope Management aspects required to understand the customer needs, how they need to be approached and
finally brought to the satisfactory need of the customer – making the project successful!
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Project Scope Management includes all the defined project work which need to be accomplished in order to ensure the project is completed successfully.
Project scope may be a subset of the Business Needs which is a much larger context of the requirements. Multiple projects or phases, based on the budget available may also be established in order to accomplish the required business
needs for the market.
Manage Scope Management involves definition and controlling project scope for the project.
Scope can be broadly categorized into:
Business Scope: set of market needs at high level
Product Scope: subset of business scope to define the product or service characteristics
Project Scope: subset of Product Scope to define project deliverables
Base lined Scope is primary reference for project and further approved changes by CCB(Change Control Board) are added to establish new scope baselines
which are secondary references during project.
Project Scope Completion marks Completion of Project.
Knowledge Area: Scope Management
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There are 6 Scope Management processes:
1. Plan Scope Management
Establishing the Project Scope in the Scope management plan document
2. Collect Requirements
Collecting the requirements from stakeholder groups ensuring those requirements are managed (monitor, Control) till end of the project
3. Define Scope
Defining the detailed Project scope in the Scope Statement
4. Create WBS ( Work Breakdown Structure)
Establishing and breaking down the scope
into manageable components in structured manner
5. Validate Scope
Once the work is accomplished it needs to be validated against the requirements
6. Control Scope
Monitoring and Controlling the project scope across the project duration w.r.t Scope Baseline
Knowledge Area: Scope Management
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5.1 Plan Scope Management
Inputs
•Project Management Plan
•Project Charter
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Meetings
Outputs
•Scope Management Plan
•Requirements Management Plan
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Plan Scope Management is to create a Scope
Management document that documents how the
project scope will be defined, validated and controlled.
Benefits of having this document early will ensure the
minimal conflict resolutions arising due to the project
scope changes.
Key benefit of this process is to provide guidance and
direction on how the scope will be managed during the
course of project.
This plan helps to reduce the risk of project scope creep.
Let us understand this in little detail for practical sense.
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Scope Management Plan describes how the scope will
be defined, developed, monitored, controlled, and
verified.
It constitutes of the:
Process for preparation of a detailed project scope
statement
Process to enable WBS creation from the detailed
project scope statement
Process that establishes how the WBS will be
maintained and approved
Process that specifies how formal acceptance of the
completed project deliverables will be obtained;
and
Process to control how requests for changes to the
detailed project scope statement will be processed.
This process is directly linked to the Perform
Integrated Change Control process
Plan itself can be at a high or low level, based on the
needs of the project.
Scope Management Plan
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Requirements management plan details how the requirements
will be solicited, analyzed, documented and managed.
The phase-to-phase relationship influences requirements
management. Based on the nature of the project, either single
phase, multiple phase(sequential or overlapping phases),
project manager defines the approach adopted for
requirements management.
It constitutes of the:
How requirements activities will be planned, tracked and
reported
Configuration management activities such as:
how changes to the product will be initiated
how impacts will be analyzed
how they will be traced, tracked, and reported, as well as
the authorization levels required to approve these changes
Requirements prioritization process
Product metrics that will be used and rationale for adopting
them
Traceability structure to reflect which requirement attributes will
be captured on the traceability matrix.
Requirements Management Plan
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5.2 Collect Requirements
Inputs
•Scope Management Plan
•Requirements Management Plan
•Stakeholder Management Plan
•Project Charter
•Stakeholder Register
Tools & Techniques
•Interviews
•Focus Groups
•Facilitated Workshops
•Group Creativity Techniques
•Group Decision-making Techniques
•Questionnaires And Surveys
•Observations
•Prototypes
•Benchmarking
•Context Diagrams
•Document Analysis
Outputs
•Requirements Documentation
•Requirements Traceability Matrix
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Collect requirements process
means: Define and document
stakeholders’ needs; Define and
manage customers’
expectations; Establish the
foundation of the WBS; Input to
cost, schedule, and quality
planning.
Key benefit of this process is to
become the basis for defining
and managing the project scope
including product scope.
Practically, organizations classify
requirements into:
Project Specific
Business Requirements
Project Management
Requirements
Delivery Requirements
Product Specific
Performance Requirements
Security Requirements
Technical Requirements
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Collect Requirements - Interviews
Used to provoke information from stakeholders by talking & engaging them directly. Either One-on-one or Group interviews with appropriate subject matter experts (SME’s) are used to identify features and seek functions of desired end outcome deliverables.
Either formal or informal interviews ensure the project manager gain those elicited answers from participants and often also result to access to confidential requirements.
Formal Interview Process Steps :
1. Identify stakeholders to be interviewed
2. Obtain a general understanding of the customers business
3. Develop interview questions using open-ended questions
4. Set meeting time and location for the interview
5. Provide a set of questions to interviewees prior to the interview
6. Use one or more Recorders to accurately preserve results of the interview
7. Provide results to interviewees for confirmation of content
Informal Interview Process Steps :
1. Identify stakeholders to be interviewed
2. Obtain a general understanding of the customers business
3. Develop interview questions to make sure certain questions are answered during session
4. Set up a casual meeting or telephone conversation time for the interview.
5. Takes handwritten notes during the interview; avoid using electronic data capture.
6. Provide results to interviewee for confirmation of content
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As it indicates, Focus Groups are focused moderated discussions in a group(includes prequalified stakeholders, subject matter experts) hosted by an experienced moderator to go through a channelized manner of discussion to arrive at required requirements information to develop a product, service or outcome.
Why are Focus Groups useful to collect requirements from Stakeholders, SME’s?
Group dialogue tends to generate rich information, as participants’ insights tend to ―trigger‖ the sharing of others’ personal experiences and perspectives in a way that can more easily or readily tease out the nuances and tensions of complex topics and subjects – a dynamic that is not present during key
informant interviews.
Provides information directly from individuals who are invested in the issue or hold expert knowledge about a topic of which little is known among researchers. Provides information from people who can provide insights about actual conditions and situations.
Provides a representation of diverse opinions and ideas.
Provides a relatively low cost and efficient way to generate a great deal of information.
Collect Requirements - Focus Groups
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These are focused sessions with key stakeholders together to define product requirements.
Workshops are considered a primary technique for quickly defining cross-functional requirements and reconciling stakeholder differences.
Due to their interactive nature, well-facilitated sessions can build trust, foster relationships, and improve communication among the stakeholders, to lead increased stakeholder consensus. In addition, issues can be discovered earlier and resolved more quickly.
However, ensuring the key stakeholder participation & active presence remains a challenge from the project management perspective.
Few of the well know facilitated workshop examples include:
JAD(Joint application development) used in Software Industry. Both Business users and Technical users sit together to define the requirements.
QFD(Quality Function deployment) used in Manufacturing Industry. Customer needs are collected, sorted, then prioritized, and goals set for achieving them. This helps determine the critical requirements of the product.
How to make facilitated workshop a success?
The moderator is key and has to understand end objective of workshop, set expectations in the beginning & moderate discussion in manner keeping all participants in mind.
Each statement should be elaborated by the moderator before being thrown out in the open workshop for discussion. And finally each discussion point needs to be concluded right there to ensure consensus or partial agreement on the consensus. Formalize the conclusions with a formal email after workshop to all stakeholders.
Facilitated Workshops
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Group Creativity Techniques
Which Technique? Explanation
Brainstorming Primarily a source to generate and collect multiple ideas
Nominal Group Brainstorming clubbed with prioritization & voting process for further exploration of most useful ideas
Delphi Group of subject matter experts provide responses anonymously for consolidation by a facilitator and redistributed out for further exploration
Idea/Mind Mapping
Individual brainstorming session results are mapped into a single map to generate bigger ideas
Affinity diagram Number of ideas are classified into categories for further review & analysis
Multi criteria decision analysis
utilizes a decision matrix to provide a systematic analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation, to evaluate and rank many ideas
Generating a creative environment for SME’s or project team to openly
discuss their ideas is a powerful and creative way to ensure the
requirements are fully captured.
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Selection of staff may be done with respect to ratings provided for each individual
resource on multiple parameters.
It is advantageous to structure complex problems well and to consider multiple
criteria explicitly which would lead to more informed and better decision making to
pick the right set of resources.
Multi-Criteria Decision Analysis is a management tool applied for making
Management decisions, Requirements prioritization, Resource Selection or any other
where extensive parameters are supposed to be solicited.
Multi-Criteria Decision Analysis
Resources Total
Ratings Availability Cost Experience Ability Knowledge Skills Attitude
International
factors
Raj 38 2 7 4 5 1 6 9 4
Surya 41 8 4 6 2 1 7 10 3
Satish 52 10 7 2 4 6 7 8 8
Ashok 47 7 8 4 3 2 5 8 10
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Group Decision Making
Which Technique?
Explanation
Unanimity
Decisions which are arrived where everyone agrees to the course of action. This type of outcome is possible with brainstorming combined with Delphi technique.
Majority Decisions where more than 50% participants agree on the course of action.
Plurality Decision arrived by the largest group even if the majority is not arrived.
Dictatorship One individual makes the decision for the group.
Driving decisions of multiple stakeholders to a cohesive direction in a
project environment means applying many techniques at different times
of the project for the best outcome.
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Questions & Surveys
Set of predefined questions and or polls
to arrive at a statistical answer from a
geographically spread diversified team
of stakeholders. This is the MOST easiest
way to collect information from such a
large group of stakeholders.
Respondents providing sufficient
information and knowledge to
complete the survey. The usefulness of
a survey is in the responses that are
received to solicit requirements.
Adding an incentive for participants to
complete the survey quickly may also
speed up the entire process of
collection of requirements.
Surveys can take a long time to
prepare, collect, and collate but with
careful planning, a well-executed
survey can simplify the process of
gathering requirements dramatically.
Observations come handy when the
requirements are not been able to
articulate. An observer acts as shadow
to the person performing the job and
captures the required detail about the
requirement.
Though Questions and Surveys can be
used to secure information from
project team and market, often
considerable amount of data can be
collected by just observing.
Seeing and Listening are the key to
gain significant information.
Observation provides the opportunity
to document activities, behavior and
physical aspects without having to
depend upon project team willingness
and ability to respond to questions.
Observations (Job Shadowing)
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Prototypes
Prototypes are also known as abstract
representations, storyboarding..
Prototypes are the methods of ensuring
the early feedback from the
stakeholders due to its nature of being
a mockup of the actual end product.
In Software, storyboards use mock-ups
to show the end visualization of
software products with links and
interfaces.
Highly useful in visualizing the look and
feel of an application and the process
workflow.
Is the technique of comparing the
actual or planned practices to those of
the standard industry best recognized
and/or accredited practices to ensure
the possible improvements on the basis
of the measuring performance.
One can also benchmark individual
projects or program, or overall
organization's project management, or
both, because they are all related.
Some parts of the organization do
really well, other parts really bad.
Benchmarking is not only to gather
requirements, it can also be used in
many other dimensions in the
organization.
Benchmarking
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Context Diagrams
Context diagrams visually depict the
product scope by showing a business
system (process, equipment, computer
system, etc.), and how people and
other systems (actors) interact with it.
Context diagrams show inputs to the
business system, the actor(s) providing
the input, the outputs from the business
system, and the actor(s) receiving the
output.
Context diagrams serve as a useful tool
to help the project stakeholders
communicate about what lies outside
the system boundary.
Is the technique of elicitation of
available documents from various
sources to arrive at the requirements.
Sources may be internal or external to
the organization like:
Business Plans, Marketing Literature,
Agreements
RFP’s, Current process flows,
Logical data models
Business rule repositories, Software
documentation
Business Processes, Use cases,
Other requirements
Problem/Issue logs, Policies,
Procedures
Regulatory documentation such as
laws, codes or ordinances so on..
Document Analysis
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Requirements Documentation
Requirements documentation describes how individual requirements meet the business need for project. Requirements get refined as more clarity is visible over project period elapses.
Requirements documentation may consist of
the:
Business Requirements
Stakeholder Requirements
Solution Requirements
Project Requirements
Transition Requirements
Requirements assumptions
Dependencies and Constraints
Requirements traceability matrix is a grid document that envisions how the product requirements from their origin to the deliverables that satisfy them.
Tracing requirements include the following:
Business needs, opportunities, goals and
objectives
Project Objectives
Project Scope/WBS Deliverables
Product Design
Product Development
Test Strategy and Test Scenarios
High level requirements to more detailed requirements
Requirements Traceability Matrix
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5.3 Define Scope
Inputs
• Scope Management Plan
• Project Charter
• Requirements Documentation
• Organizational Process Assets
Tools & Techniques
• Expert Judgment
• Product Analysis
• Alternatives Generation
• Facilitated Workshops
Outputs
• Project Scope Statement
• Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Define scope ensures the detailed description of the project and product with the boundaries of what is included and excluded.
This is continuously evolved as the project progresses.
In order to avoid scope creep, wherever possible scope should be
as much detailed as possible.
Definition: Scope creep is considered as any un-warranted changes introduced to the existing scope of work.
From the Collect Requirements Process, since it will not be possible
to develop the entire set of requirements identified, the finalized version of requirements will constitute the project scope.
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Project Scope Defined
Project Scope Statement
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It is the description of Project Scope, Major Deliverables, Assumptions, and Constraints. The Project Scope Statement documents entire Scope, including Project and Product Scope.
It may constitute the following:
Product Scope Description
Product Acceptance Criteria
Project Deliverables
Project Exclusions
Project Constraints and Assumptions
Although Project Charter and Project Scope Statement are different with their intended purpose, it is better to have a clear understanding:
Project Scope Statement
Project Charter Project Scope Statement
May include…
Project justification
High-level requirements and
project description
Summary milestone schedule
and budget
Measureable objectives and
success criteria
Project approval requirements
Sponsor name and signature
Project manager name and
authority level
May include…
Project
o Deliverables
o Boundaries
o Constraints
o Assumptions
Product
o Scope description
o User acceptance criteria
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Product Analysis
Product analysis is a method for converting the
product description into project deliverables and
requirements. Product analysis includes techniques:
Product Breakdown: Breaks down product into
components, to examine each component
individually and how it may work with other parts of
entire product.
Systems Engineering: Focuses on satisfying the
customers’ needs, cost requirements, and quality
demands through design and creation of product.
Value Engineering: Deals with reducing costs and
increasing profits, all while improving quality. Its
focus is on solving problems, realizing opportunities,
and maintaining quality improvement.
Value Analysis: Similar to value engineering, this
focuses on the cost/quality ratio of the product. For
example, your expected level of quality of a
€200,000 car versus a €150,000 used car is likely
relevant to the cost of each.
Function Analysis: Related to value engineering, this
allows team input to the problem, institutes a search
for a logical solution, and tests the functions of the
product so the results can be graphed.
Quality Function: This deployment is a philosophy
and a practice to fully understand customer
needs—both spoken and implied—without
incorporating unnecessarily costly features or
refinements into the project deliverables.
Used to develop as many potential options as
possible in order to identify different approaches to
execute and perform the work of the project.
This means making sure that for every project
decision, there is a real choice:
a choice of implementation methods, possibly using
different approaches or technical methods. The first
one that comes to mind is not always best one.
a choice of who does what. The expert may be very
good but not available when needed. It may be
faster to use the expert as a coach, supporting a
less experienced person for implementation.
a choice of location. Where the project team are
affects communications, availability and many
other factors.
a choice of supplier. This is normal practice for
procurement, where ―alternatives generation‖ is
built into the system.
a choice of standards. Not all standards apply in all
situations.
Alternatives Generation
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5.4 Create WBS
Inputs
•Scope Management Plan
•Project Scope Statement
•Requirements Documentation
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Decomposition
Outputs
•Scope Baseline
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Create WBS (Work Breakdown Structure) is the process of subdividing the
deliverables and work into smaller, more manageable components in a
structured hierarchical decomposition visual manner.
Key Benefit from this process is to envision the holistic view of deliverables in a
structured fashion.
The planned work at the lowest level of the WBS element is called as Work
Package.
Work package is also identified as a group of related activities that can be
easily: Estimated; Scheduled; Monitored and Controlled
Usually Work packages are assigned to individual owners to ensure
estimation and timely management.
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Decomposition is a technique to divide and
subdivide the large chunks of project scope into
more manageable smaller(granular) work
packages.
The degree of such granularity depends on the
control needed on the work packages to be
delivered, usually until the cost and schedule can
be managed.
Decomposition of the work usually involves:
Identification and Analysis of High Level Work
and Deliverables
Structure and Organize the WBS Elements
Decompose Higher elements into Lower
elements
Assign WBS element identification codes for
each element
Ensure the WBS elements are manageable, if
not further decompose the elements.
How do you manage WBS elements of work
contracted?
Ensure the work contracted has its own WBS
which is manageable by the contracted
party.
In Scope Management, project deliverables are
subdivided into smaller and more manageable
components until the work and deliverables are
defined to the work package level. This is called as
decomposition.
In Time Management, each work package within
the WBS is decomposed into the activities required
to produce the work package deliverables. This is
called as decomposition.
Decomposition
Project
Phases
Deliverables
Work Packages
Activities
Decomposition Output of
Scope
Management
Output of Time
Management
Decomposition
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Sample WBS
My Robot
1.0 Project Management
1.1 Planning
1.2 Procurement
1.3 Execution
1.4 Monitoring & Controlling
1.5 Closure
2.0 Soft Simulation
2.1 Design & Develop software
models
2.2 Execute Simulations
2.3 Make Refinements
2.4 Security & Performance
Check
3.0 Hardware Simulation
3.1 Beta Model Development
3.2 Practical Demonstration of working unit
3.3 Make Hardware
Refinements
3.4 Security & Performance
Check
4.0 Production Modeling
4.1 Setup a Production
Model Machinery
4.1.1 Internal Clearances
4.1.2 Regulatory Clearances
4.1.2.1 Geographic Regulatory
Clearances – Asia
4.1.2.2 Geographic Regulatory
Clearances - Americas
4.1.3 Product Ready Clearance
4.2 First Lot of Production
4.3 Refinement Checks
4.3.1 Production Quality & Assurance
4.3.2 Rapid Production Check
5.0 Mass Production
5.1 Contracted to Third Party
WBS can be established in various formats based on the project needs, complexity and the control required. Typically, it is decomposed until the Project Scope and Cost can be managed at that Work package level.
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The Scope Baseline is the approved version of a Scope
Statement, Work Breakdown Structure (WBS), Associated
WBS Dictionary that can be changed only through formal
change control procedures and is used as a basis for
comparison.
Each Work Breakdown Structure (WBS) work package is
assigned to a Control Account with and established unique
identifier from Code of Accounts. Control Accounts play a
vital role in management decisions with performance
measurement of each work package.
WBS Dictionary is a document that provides detailed
deliverable, activity, and scheduling information about
each component in the WBS. It may include:
Code Of Account Identifier, Description Of Work
Assumptions And Constraints, Responsible Organization
Schedule Milestones, Associated Schedule Activities
Resources Required, Cost Estimates
Quality Requirements, Acceptance Criteria
Technical References, Agreement Information.
Scope Baseline
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What does Scope Baseline Consists?
Scope Baseline
Associated WBS
Dictionary
Project Scope
Statement
WBS
Primary Success of almost every project is to achieve the Scope Baseline.
Without Scope, Project is not a Win.
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5.5 Validate Scope
Inputs
• Project Management Plan
• Requirements Documentation
• Requirements Traceability Matrix
• Verified Deliverables
• Work Performance Data
Tools & Techniques
• Inspections
• Group Decision Making
Outputs
• Accepted Deliverables
• Change Requests
• Work Performance Information
• Project Document Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is a process to formally validate
and accept the deliverables and
ensure the scope defined in the
plan has been implemented.
Key benefit of this process is the
final product will be in line with
the scope defined at the
beginning and the likelihood of
the end product is in line with the
expectations.
Validation is performed keeping
the scope baseline and other
planning documents as the basis
to evaluate the completed
deliverables.
Validation itself may be
performed by a special team
constituted and may comprise of
the team, management,
stakeholders and/or customer
based on the need of the
project.
Control Quality and Validate
Scope come very close and
perform almost the same. The
exception being in Control
Quality, it is identified to correct
the quality and bring it back on
track from deviation to quality,
whereas in Validate Scope, it is to
ensure the scope itself is being
met as the needs/requirements of
the project/activities.
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Inspection is the formal evaluation of a
particular work being delivered and the
deliverables inline to the product
acceptance criteria.
Usually inspections are done as soon
work is being completed or deliverable
ready, it is performed by performing
team and includes peer or supervisor
reviews of work being accomplished.
Defects and/or repairs identified in the
inspections are subject to be corrected
and implemented as per the project
need/requirement.
Inspections are also known as
Product Demonstrations
Reviews
Walk Through
Audits
Inspections
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5.6 Control Scope
Inputs
• Project Management Plan
• Requirements Documentation
• Requirements Traceability Matrix
• Work Performance Data
• Organizational Process Assets
Tools & Techniques
• Variance Analysis
Outputs
• Work Performance Information
• Change Requests
• Project Management Plan
• Project Document Updates
• Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is a process to monitor the project and product scope and control the scope to ensure the project objectives are met.
Key benefit of this process is
that we have an up to date Scope Baseline at any given point in time.
Changes are quite natural to happen on projects and ensuring scope changes are
managed well with Control Scope process ensures scope creep is avoided.
Scope creep by definition means uncontrolled changes to the features and functions planned earlier in the project.
Allowance on scope will trigger scope creep and naturally cause alterations to the unprecedented and uncontrollable project changes in various directions including cost impact,
schedule impact, quality impact.
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Degree of difference between the planned baseline and the actual baseline of work is known as Variance Analysis.
The larger the degree of variance
the project is much out of control. Variance may be analyzed on various parameters including Scope, Cost, Schedule.
On the quality front the variance may be analyzed if there is a
quality baseline established. In practice, quality baseline is often not established for the entire duration of the project. It may be only for a subset of the entire project.
Scope Variance is often the most critical in any project, deviation from the original plan of requirements deviation.
Variance Analysis
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Scope Creep & Project Dimensions
Lighter than Planned Originally
Heavier than Planned
Becomes
More and
More
Heavier as
Time
progresses
Dilution of
Original
Project
Vision,
Scope, Cost,
Time,
Quality…
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Prevent Scope Creep in real life
3 Effective Simple Techniques to prevent scope creep/pitfalls:
Have crystal clear requirements defined where ever possible
Have Change Control Board(CCB) in place without any exceptions
Have a working CCB capable to make tough timely informed decisions. Any incapacity of CCB should be immediately dealt with and ensured that CCB is not defunct in Project
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Chapter 5 - Debrief
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THIS BRINGS TO “SCOPE MANAGEMENT” COMPLETION.
From what we have understood so far is:
6 Scope Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 5
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Time Management
Chapter 6
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Chapter 6
Objectives
Understand the different Time Management
Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Time Management aspects required to understand the customer delivery timeline needs.
Also, how the timeline will be approached, managed and finally honored – making the project successful!
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Project Time Management includes processes to ensure the schedule is defined,
managed, controlled and has updated schedule baseline to meet project timeline.
Establishing a Project schedule involves using the Project Information, Project
Scheduling Methods & Tools.
Most common scheduling methods include Critical Path Method (CPM) & Critical
Chain Method (CCM).
Schedule may be represented in many a ways including the Bar Chart, Network
Diagram and/or Activity List.
Knowledge Area: Time Management
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There are 7 Time Management processes:
1. Plan Schedule Management
Establishing Project Schedule in Schedule Management Plan Document which will be used across project to control timelines as
project evolves and changes occur.
2. Define Activities
Breaking down the larger chunks of scope into actionable small activities using the WBS by defining project activities
3. Sequence Activities
Establishing the relationships between the defined project activities to ensure the sequence of activities are done in rightful manner
4. Estimate Activity Resources
What type and amount of estimated resources are required to accomplish sequenced activity
5. Estimate Activity Durations
How long will it take to ensure the estimated resources perform the activity assigned
6. Develop Schedule
Based on all the available information from defined activities to sequence activities to
estimate resource & durations will aid to arrive at develop schedule
7. Control Schedule
Monitoring and Controlling the project schedule across the project duration w.r.t schedule baseline and achieve the project
objectives
Knowledge Area: Time Management
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6.1 Plan Schedule Management
Inputs
• Project Management Plan
• Project Charter
• Requirements Documentation
• Organizational Process Assets
Tools & Techniques
• Expert Judgment
• Analytical Techniques
• Meetings
Outputs
• Schedule Management Plan
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Is the process to ensure project schedule is managed
from beginning of the project to the end of the project
with a defined approach.
Key benefit of this means to provide a guidance and
oversight on how the project schedule is to be managed
with an upfront defined schedule thresholds.
The schedule management plan also defines how
schedule contingencies will be reported and assessed
over the course of the project delivery.
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This may involve options to estimate and schedule the project using the Scheduling methodology, scheduling Tools and techniques, estimation approaches, formats and project management software.
Approaches are defined to ensure speedy delivery while
ensuring the project risk is managed well.
Crashing or Fast Tracking are common schedule compression techniques using which the work is parallelized. While delivery of the work in parallel is beneficial this may also increase the risk on the project. These decisions are to be well explained to the relevant stakeholders as the case may be.
In some cases, organizations with well established frameworks ensure to have organization policies and procedures with defined techniques to employ such as:
Rolling wave planning
Leads and lags
Alternative analysis
Methods for reviewing schedule performance
Analytical Techniques
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Schedule Management Plan defines the criteria and activities for developing, monitoring and controlling project schedule. It establishes the following:
Project Schedule Model Development →
Scheduling Methodology & Scheduling Tool to be used
Level of Accuracy → Extent of the estimates supposed to be accurate. Include any contingency for estimation gaps
Units of Measure → What units will be applied, staff hours, staff days, weeks, meters, liters, kilometers and so on
Organizational Procedure Links → Links to the phases, activities from the WBS to ensure
consistency and resulting schedules
Project Schedule Model Maintenance → Define the updates and changes to the schedule during the execution phase of the project
Control Thresholds → Percentage deviations which ensure that the actions are taken for any threshold value deviations
Rules of Performance Management
EVM (Earned Value Management) rules
or similar performance management rules are set
How the percentage completion will be established?
Control Accounts on which the management review to be performed
EVM techniques applied
SV (Schedule Variance) & SPI (Schedule Performance Indicator) against the Schedule baseline
Reporting formats → What reports are required, Which format and at What
frequency
Process descriptions → Any processes which will administer the schedule performance and management across the project course
Schedule Management Plan
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6.2 Define Activities
Inputs
• Schedule Management Plan
• Scope Baseline
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Decomposition
• Rolling Wave Planning
• Expert Judgment
Outputs
• Activity List
• Activity Attributes
• Milestone List
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Define Activities process is performed to ensure the actions are identified and documented to produce end project deliverables.
Key benefit of this process is to provide an understanding of breaking down the work packages into activities that can be easily estimated, scheduled, executed, monitored and controlled.
The purpose of this process is to identify the specific tasks needed to be done in order to produce the project’s deliverables.
Scope Baseline is used as a starting point to breakdown documented deliverables even further, as well as a guide to assure that entire scope of Project is covered, but not extend
beyond boundaries of Project.
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Rolling Wave Planning
Rolling wave planning is the iterative planning technique to plan the immediate work in detail and subsequent work at higher levels in at progressive elaboration manner.
As an example, in the early stages of the project work packages are defined at a
higher level for different phases. However, as we enter the phase more clarity is available and the work packages are made granular.
Understand it this way, waves closer to us give better clarity on what they bring along with them. Similar to the immediate work at hand, we know more detailed view of them to accomplish, than the far away waves or work.
This is a comprehensive list of all activities to be performed as part of the project.
Each activity is supplemented with an activity identifier and sufficient detailed scope of work so as that could be
accomplished.
Is Activity List same as WBS?
An activity list is a list of ―What we are doing‖ in the project to accomplish deliverables.
Whereas a WBS is a list of ―What we are making‖ in the project as deliverables.
Imagine this as WBS is a high level view of deliverables and Activity list as a low level view of the deliverables.
Activity List
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Activity Attributes
Often the activity has just more
than the activity identifier like WBS
ID, Activity label, Activity code,
successor activity code,
predecessor activity code, logical
relationship definition, leads, lags,
resource associated, cost
associated, geographic tag, the
project calendar the activity is
assigned, effort type(level of effort,
apportioned effort, discrete effort)
and so on.
All these attributes help bring more
organized and clarity in the
accomplishment of each activity.
A Milestone is an important event
of accomplishment of major work.
These milestone activities are
simply put, the zero duration
activities.
They could be either internal to the
organization or external market
commitment requirements.
Milestone List
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6.3 Sequence Activities
Inputs
•Schedule Management Plan
•Activity List
•Activity Attributes
•Milestone List.
•Scope Statement
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Precedence Diagramming Method (PDM)
•Dependency Determination
•Leads And Lags
Outputs
•Project Schedule Network Diagrams
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Activities need to be sequenced or connected with each
other by a relation and dependencies to ensure the
proper flow and completion of the project work
considering all the constraints.
This also ensures realistic schedules and efficiency in
delivery of project work since the appropriate leads and
lags are added.
All activities other than the very first and very last
activity/milestone, rest all of them need to be connected
with each other.
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PDM is one of the activity sequencing techniques in practice; in which activities are represented in a graphical manner to show precedence of activities to be accomplished in sequence.
In this technique, activities are represented as Nodes. Also known as AON (Activity on Node).
Most software packages use this type of representation including Microsoft Project.
PDM (Precedence Diagramming Method)
Start
A
B
C
D
E G
H
Finish
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PDM (Precedence Diagramming Method)
Finish to Finish Relationship Start to Start Relationship
Research Data Started
Produce Report Started
Data Transfer Finished
Migration Finished
Start to Finish Relationship Most Rarely Used
Server Installation Started
Vendor Job Finished
Finish to Start Relationship Most Commonly Used
Draft Manual Finished
Print Manual Started
PDM also used logical relationships between activity to activity. Four types of relationships:
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Dependencies can be of different nature.
Mandatory → These are the legally or contractually required or inherent in the nature of work being done. Hard logic which has to be met at any cost.
Discretionary → These dependencies are at discretion of Project Team. And are the preferred dependencies based on the best practices of work done in the past or as defined by the SME(Subject Matter Experts) for an alternate option. Also know as Soft logic which can undergo an alternate option.
External → Dependencies where the project team has to consider the external work done beyond the project team’s control. This is more rampant in case of Contractual Projects. This is
beyond control of project team.
Internal → Dependencies where project team has to lookup to internal precedence to ensure the previous work is accomplished. This is in the control of the Project team.
These 4 dependencies can be clubbed in combination:
Mandatory External Dependencies
Mandatory Internal Dependencies
Discretionary External Dependencies
Discretionary Internal Dependencies
Dependency Determination
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Lead Time
Let us understand what a lead is with an example.
For a movie, Activity A(movie shooting) takes 5
Days. Post the movie shooting, Activity B(mass
production) takes another 10 Days for release. The
movie in such a scenario is produced for release at
5+10=15 days.
Let us now consider a little smart situation. Activity A
takes 5 days. Activity B takes another 10 days for
mass production. However, as the movie is been
shot, the production activities can be started with 3
days in advance(lead) to completion of movie
shooting.
This would mean the new release date of the movie
can be as early as 12 days instead of 15 days with a
lead time of 3 days for production.
Let us understand what a lag is with an example.
For a wooden house construction, Activity
A(Procurement of wood) takes 4 days. Activity
B(Construction of house) takes 6 days. The schedule
for the house construction in such an ideal scenario
is 4+6=10 days.
Let us now consider a little practicality, After the
wood is procured, we would want to ideally have
the wood seasoned for 3 days(Lag) during which
time, neither the procurement can be done nor the
construction can begin.
This would mean the practical end to end of
construction of wooden house is 4+3+6=13 days.
More realistic sense.
Lag Time
A – 5 Days
B – 10 Days
Lead of 3 Days
Total Duration 2+10=12 Days
A – 4 Days
B – 6 Days
Lag of 3 Days
Total Duration 4+3+6=13 Days
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Pay attention to Tasks where convergence and divergence
occurs. These are critical tasks. Any defects introduced in these
tasks or delays will lead to major quality deficit.
Activity Convergence – Many outputs of activities converge into one activity
making it critical activity
Activity Divergence – Many outputs will diverge from this activity making it
critical activity
Activity Activity Output
Many Outputs
Input Many Inputs
A project is termed highly complex with many activities with
convergences and divergences, not just the many number of tasks on
the Project schedule network.
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As the name suggests it is a graphical representation of the Project
Schedule in a Network format. Though it is usually represented in
graphical manner, it is also accompanied by descriptions for any
exceptions represented in the graphic.
A
B
D
I
C
E
K
J
F
L
G
Start End H
Exceptions
-----------
-----------
-----------
-----------
Project Schedule Network Diagram
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6.4 Estimate Activity Resources
Inputs
•Schedule Management Plan
•Activity List
•Activity Attributes
•Resource Calendars
•Risk Register
•Activity Cost Estimates
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Alternative Analysis
•Published Estimating Data
•Bottom Up Estimating
•Project Management Software
Outputs
•Activity Resource Requirements
•Resource Breakdown Structure
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
This is the process of estimating based on the type,
quantity, quality of human resources, material resources
to arrive at more accurate estimate(key benefit).
Estimate Activity Resources and Estimate Costs are closely
linked to each other.
For example, a high rise tower construction needs
specialized government approvals and specialized
skilled workers to execute tasks at such a high rise
tower. This means additional cost incurred to procure
these resources.
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Activity Cost Estimates are the probable
costs which may be incurred on the
particular activities and summed to
arrive at the project completion cost.
The cost of resources may impact
resource selection to keep the project
cost optimal to respect the triple
constraints.
Activity Costs may be direct or indirect :
Direct:
Labor Cost, Materials, Equipment,
Services
Interest Charges, Exchange Rates,
Cost Contingency Reserve
Indirect:
Depends on the performing business
unit and/or Organization
Activity Cost Estimates
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Alternative Analysis
Many activities can be accomplished in more than one way. Alternative Analysis is the ways of finding the best optimal manner to accomplish the activities and project completion.
This includes various skill levels of the resources, type of resources used, size and performance of the machines used, manual or automated tools, make-rent-or-buy decisions and so on.
A make-or-buy analysis results whether work
can best be accomplished by project team or purchased from contracted sources.
In Practice, these type of decisions are some times best defined by the organizational culture and project manager’s decision is limited in nature. Some organizations prefer
to always buy a new tool instead of development of one. And some other prefer to develop their own tool instead of buy. A few also venture out to sell their own use tools to the market.
Many Organizations have a predefined rate lists, estimation production chart data, per unit costs defined for geographies, countries, time zones, special work days and so on. This type of data is readily usable to arrive at the estimation.
In this technique, the activity is compared to the activities for which data exists and the actual cost or durations of the closest comparable activity is selected from the data and used as the estimate.
The advantage of this technique is that it is very accurate when the project conditions match the conditions under which the published data was generated.
The disadvantages are that data does not exist for many activities and that the
published data that does exist is based upon the characteristics of the organizations who compiled and published the data.
Published Estimating Data
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Bottom up Estimating
Aggregation of all the bottom most
elements which can be individually
estimated to sum up for estimate is
known as bottom up estimate.
All WBS elements broken down into
work packages and further granular
elements are used to arrive at the
bottom up estimating.
Advantage of such estimate analysis is
that it is highly accurate form of
estimate as the work is better
understood.
Disadvantage of such estimate analysis
is that it is time consuming and also
may not be practical at the beginning
of the project since it may not have a
decomposed WBS.
Advance in technology has led us to
utilize the software tools to ensure we
have more accurate and reliable
estimates based on the input
collaboration of various project
management aspects like scheduling,
risks, optimized resource utilization,
breakdown structures and so on.
Project Management Software
Source Acknowledged: http://www.tenrox.com/
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Defines the list of resources to be applied for any given activity on the
project. Identification of Set of Responsibilities for a Role. Pooling all different
roles into Resource requirements for meeting the Project objectives.
Activity Resource Requirements
It is a structural illustration of resources based on category and type. This is
useful for organizing and reporting project schedule data with resource
utilization information.
Resource Breakdown Structure
Project Resources
Management
Leads
Analysts
Design
Development
Project Manager
Sr. Management
Materials
Notepads Sketch Boards Marketing Brochures
Equipment
Computers
Photo Copiers
Project Staff
Architects & Designers
Developers Quality
Assurance
Control
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6.5 Estimate Activity Duration
Inputs
•Schedule Management Plan
•Activity List
•Activity Attributes
•Activity Resource Requirements
•Resource Calendars
•Project Scope Statement
•Risk Register
•Resource Breakdown Structure
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Analogous Estimating
•Parametric Estimating
•Three-Point Estimating
•Group-Decision Making
•Reserve Analysis
Outputs
•Activity Duration Estimates
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
This is one of the most important
process which aids in the overall
estimation of the project size in
terms of duration.
It is the process of estimating the
period taken for each activity to
complete with estimated
resources.
May not be possible to estimate
completely at the beginning and
may be progressively elaborated
for accurate estimations.
Assumptions should be called out
to the reviewer. Estimates usually
originate from the person or
group with the most familiarity
about the task at hand. This
minimizes estimation gaps upfront
due to ambiguity of task.
Estimation activity uses multiple
information including activity
scope of work, required resource
types, estimated resource
quantities and resource
calendars.
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Example.
For your new bungalow, installing an artificial lawn will take 80 hours of effort.
With one worker who can work 40 hours a week(8 hours a day for 5days) will take 10 work days of duration which
is 2 weeks of elapsed time to complete 80 hours of effort.
With two workers who can work 40 hours a week(8 hours a day for 5days) will take 5 work days of duration which
is 1 week of elapsed time to complete 80 hours of effort.
With four workers who can work 40 hours a week(8 hours a day for 5days) will take 2.5 work days of duration
which is 1/2 week of elapsed time to complete 80 hours of effort.
With two workers who can work 80 hours a week(16 hours a day for 5days) will take 2.5 work days of duration
which is 1 week of elapsed time to complete 80 hours of effort.
Effort ↔ Duration ↔ Elapsed Time
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Analogous Estimating
(Cost or Duration)
Based on the previous experiences or historical information, one may readily come up with the duration or cost estimate for a similar work.
This is known as Analogous(equivalent)
estimating also sometimes knows as Gross value estimating.
Most easily and commonly used form of estimation, costless form of estimation. However, it is also less accurate.
Example:
Two years back I spent 4 months for this
Based on my past experience of such a,
I believe the new
would cost us the same 4 months.
Based on the estimating technique in which an algorithm is used to calculate cost or duration using the historical information or project parameters(statistical relationship).
Example:
For a 1 square foot of construction, it took INR 3500 in the previous construction project.
For the construction of the 50 square foot of
new construction project,
The estimate will be 50*3500 = INR 175000.
Parametric Estimating (Cost or Duration)
project
project
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Accuracy of the estimates may be significantly improved considering the risk and
uncertainty of every estimate. This can be achieved by using the PERT(Program
Evaluation and Review Techniques) values.
PERT uses 3 different estimates to define an approximate range for an activity’s
duration.
Most Likely (M) – This is the most likely estimate
Optimistic (O) – based on thinking best case scenario
Pessimistic (P) – based on thinking worst case scenario
Considering the range of risk and uncertainty, the 3 different estimates can be either:
Triangular Distribution (simple average). Estimate =(O+M+P) / 3
Beta Distribution (weighted average). Estimate = (O+4M+P) / 6
Three Point Estimating
Example: For development of an e-commerce website: • It will take 3 days to complete (optimistic) – Best case scenario • It will take 5 days to complete (most likely) • It will take 13 days to complete (pessimistic) – Worst case scenario Realistic Estimate = (3+4*5+13)/6 = 3+20+13 /6 = 36/ 6 = 6 Days Realistic Estimate will always be closer to Most Likely Estimate.
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Learning Curve
Estimation
A common learning curve on Project depicts that the cumulative average time to complete a manual task which involves learning will decrease 20% whenever volume doubles.
This is referred to as an 80% learning curve.
Let's illustrate the 80% learning curve with a person
learning to design and code websites of similar size
and complexity. If the first website takes 100 hours,
then after the second website the cumulative
average time will be 80 hours (80% of 100 hours).
The cumulative average of 80 hours consists of 100
hours for the first website plus only 60 hours for the
second website resulting in a total of 160 hours
divided by 2 websites.
After the fourth website the cumulative average time
will be 64 hours (80% of 80 hours).
After the eighth website the cumulative average will
be 51.2 hours (80% of 64 hours). In other words, total
time to complete all eight websites will be 409.6 hours
(8 websites times an average time of 51.2 hours).
Improvements in technology can mean time and cost
reductions beyond those in the learning curve.
For example, software may become available to assist
in the design and coding, computer processing
speeds might increase, there may be lower costs of
processing and storage, etc.
The learning curve is important for setting standards,
estimating costs, and establishing selling prices.
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Estimates may sometimes include the Contingency Reserve (Time reserves
or Money buffers) which is included for estimates considering the “known-
unknowns” of the estimates. However, these are different from
Management Reserve, which are kept for any “unknown unknowns” scope
additions by management.
Contingency Reserve is used by Project Manager.
Management Reserve is used by Stakeholders(Management).
Reserve Analysis
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6.6 Develop Schedule
Inputs
•Schedule Management Plan
•Activity List
•Activity Attributes
•Activity Resource Requirements
•Resource Calendars
•Project Scope Statement
•Risk Register
•Risk Breakdown Structure
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Schedule Network Analysis
•Critical Path Method
•Critical Chain Method
•Resource Optimization Technique
•Modeling Techniques
•Leads And Lags
•Schedule Compression
•Scheduling Tool
Outputs
•Schedule Baseline
•Project Schedule
•Schedule Data
•Project Calendars
•Project Management Plan Updates
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
It is the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create project schedule model.
Key benefit is that by entering schedule activities, durations, resources, resource availabilities, and logical relationships into the
scheduling tool, it generates a schedule model with planned dates for completing project activities.
As the project evolves, it is a continuous process to ensure the schedule is updated for changes.
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It is a technique that generates the project schedule model. More importantly the analysis will help you identify the points of path convergence and divergence.
This helps in schedule compression analysis and ensuring the key points and paths are given due diligence.
Schedule Network Analysis
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The longest duration
path of the project is
known as the critical
path. The duration of the
project is determined by
activities listed on critical
path.
Critical Path Method
Technique is to identify
the minimum longest
duration path of project.
Any activity on this
critical path is called a
critical path activity.
Any activity other than
the critical path activity
with total float gives the
schedule flexibility without altering the
Project end dates.
Critical Path Method
S F
5 3 6
4 9
8
S F
5+3+6=14
4+9=13
8
Longest Path is Critical Path
This path of activities would have a Float of 6
(14-8)
This path of activities
would have a Float of 1 (14-13)
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End
D 5
F 9
E 8
C 6
Start
Early Start(ES)
Early Finish(EF)
Total
Float
Task name & Duration
Late Start(LS)
Late Finish(LF)
Branch1:
Non Critical Path: ABCF(3+4+6+9= 22)
Branch2:
Critical Path: ADEF(3+5+8+9=25)
– The longest duration path on the project is identified
also known as Critical Path.
Critical Path Method using Forward Pass & Backward Pass
B 4
A 3
Representation of the task in the Project Schedule
This method helps the project manager identify the critical activities on the entire project by identification of the
Critical Path and also to understand how much delays on tasks is acceptable without impacting the project.
In forward pass, each of the activities, Early Start & Early Finish can be arrived for entire project.
In backward pass, each of the activities, Late Start & Late Finish can be arrived for entire project duration.
After both forward pass & back ward pass, once we have identified ES, EF & LS, LF, one can easily come up with the
total float on each of the activities for entire project duration.
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End
3 8
D 5
16 25
F 9
8 16
E 8
7 13
C 6
Start
Early Start(ES)
Early Finish(EF)
Total
Float
Activity name & Duration
Late Start(LS)
Late Finish(LF)
Forward Pass (EF = ES + Duration) 3 7
B 4
0 3
A 3
Branch1(ABCF) the last EF is 13. Branch2(ADEF) the last EF is 16. In forward pass, pick the largest previous EF number from the branches, which will also become the ES for merging activity F. Hence, ES(Task F) will be 16. On Activity F ES(Task F) = 16 EF(Task F) = ES(Task F) + Duration(Task F) = 16 + 9 = 25 days
On Activity A ES(Task A) = 0. Start the first activity as soon as possible, 0. EF(Task A) = ES(Task A) + Duration(Task A) = 0 + 3 = 3 days Let us calculate ES & EF of all branches first. Branch 1(ABCF) On Activity B EF(Task A) = 3, This value is assigned to ES(Task B) EF(Task B) = ES(Task B) + Duration(Task B) = 3 + 4 = 7 days On Activity C EF(Task B) = 7, This value is assigned to ES(Task C) EF(Task C) = ES(Task C) + Duration(Task C) = 7 + 6 = 13 days Branch2(ADEF) On Activity D EF(Task A) = 3, This value is assigned to ES(Task D) EF(Task D) = ES(Task D) + Duration(Task D) = 3 + 5 = 8 days On Activity E EF(Task D) = 8, This value is assigned to ES(Task E) EF(Task E) = ES(Task E) + Duration(Task E) = 8 + 8 = 16 days Task representation legend
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End
3 8
D 5
3 8
16 25
F 9
16 25 8 16
E 8
8 16
7 13
C 6
10 16
Start
Early Start(ES)
Early Finish(EF)
Total
Float
Activity name & Duration
Late Start(LS)
Late Finish(LF)
Backward Pass (LF – DURATION = LS) 3 7
B 4
6 10 0 3
A 3
0 3
Branch1(ABCF) the first LS is 6. Branch2(ADEF) the first LS is 3. In backward pass, pick the smallest LS number from the branches(6 or 3?) which will also become the LF for activity A. Hence, LF(Task A) will be 3. On Activity A LS(Task A) = LF(Task A) – Duration(Task A) = 3 – 3 = 0. When ES & LS are ‘0’, that would mean all calculations so far are correct.
On Activity F EF(Task F) = 25, This value is assigned to LF(Task F) ES(Task F) = EF(Task F) – Duration(Task F) = 25 – 9 = 16 days Let us calculate LS & LF of all branches now. Branch 1(ABCF) On Activity C LF(Task F) = 16, This value is assigned to LF(Task C) LS(Task C) = LF(Task C) – Duration(Task C) = 16 – 6 = 10 days On Activity B LS(Task C) = 10, This value is assigned to LF(Task B) LS(Task B) = LF(Task B) – Duration(Task B) = 10 – 4 = 6 days Branch2(ADEF) On Activity E LS(Task F) = 16, This value is assigned to LF(Task E) LS(Task E) = LF(Task E) – Duration(Task E) = 16 – 8 = 8 days On Activity D LS(Task E) = 8, This value is assigned to LF(Task D) LS(Task D) = LF(Task D) – Duration(Task D) = 8 – 5 = 3 days Task representation legend
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A Float (also known as Slack) is the amount of time an activity may be delayed without having any further impact.
Free Float is known as the delay on the activity without impacting the subsequent tasks.
Total Float is known as the delay on the activity without impacting overall project completion itself.
With Floats, Project Manager has little comfort to realign the activity priorities and reschedule for any constraints.
Floats on a Project
A B C D E F
X Y
7 4 9 3 8 1
9
Alternate Path of Activities
Critical Path of Activities
Free Float of X
8 Free Float of Y
9 + 8 = 17 Total Float of X
8 Total Float of Y
All Critical Path Activities (A, B, C, D, E, F) will have Zero Free Float Duration & Zero Total Float Duration
End
Start
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End
3 8
0 D 5
3 8
16 25
0 F 9
16 25 8 16
0 E 8
8 16
7 13
3 C 6
10 16
Start
Early Start(ES)
Early Finish(EF)
Total
Float
Activity name & Duration
Late Start(LS)
Late Finish(LF)
Let us calculate ―Float/Slack‖ now! 3 7
3 B 4
6 10 0 3
0 A 3
0 3
Did you notice all activities falling on the critical path? All activities on this critical path by default have Zero Slack or Zero Float.
In order to calculate Float on all activities, simply use the LS – ES otherwise LF – EF. On Activity A 0 – 0 = 0. Float on Activity A is 0. On Activity B 6 -3 = 3. Float on Activity B is 3 days On Activity C 10 – 7 = 3. Float on Activity C is 3 days. Please observe, either Activity B or Activity C can be delayed by 3 days, with out impacting the project. This does not mean you can delay both B and C together by 3 & 3 days. On Activity D 3 – 3 = 0. Float on Activity D is 0. On Activity E 8 – 8 = 0. Float on Activity E is 0. On Activity F 16 – 16 = 0. Float on Activity F is 0.
Task representation legend
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Activity: Please perform
A4
B6
D9
C7
E4
F5
G6 Finish Start
Q1. Identify the Critical path of the project? Q2. How early can we finish the project itself? Q3. How late can we finish the project without impacting Client? Q4. What is the float on the task C? Q5. What would be the new critical path duration if C7 become C14?
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Activity: Answers
A4
B6
D9
C7
E4
F5
G6 Finish Start
Q1. Identify the Critical path of the project? A4-D9-F5-G6 Q2. How early can we finish the project itself? 24 Days Q3. How late can we finish the project without impacting Client? On 24th Day Q4. What is the float on the task C? 2 Days Q5. What would be the new critical path duration if C7 become C14? 29 Days
0 4
0 4
18 24
18 24
10 14
14 18
13 18
13 18
4 10
8 14
4 11
6 13
4 13
4 13
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Project Buffer
A B C Project Buffer
In reality, Project Completion with no Project Buffer may derail the end market commitments and cause major business reputation loss
Ideal Project Completion
Ideally, 1 Task is assigned to 1 Project Resource at any given point in time. No multitasking by same resources.
G H
X Y
Project Start
Project End
Critical Path of Project with Project Buffer
makes the project more realistic towards end result. Start-A-B-C-End is the Critical Path. Start-G-H-B-C-End is alternate path. Start-X-Y-B-C-End is alternate path.
Many a times, in order to suppress the ambiguity on projects and overcome the uncertainty, Project buffer’s are used.
This is simply sometimes an extra timeline after the anticipated Ideal Project Completion. Project Buffers should not be planned thinking resources on the project will not be productive!
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Feeding Buffer Critical Path of Project with Project Buffer makes the project more realistic towards end result. In addition, all alternate paths collision to critical path activities need to be buffered(feeding buffer) to stop derailment of critical path activities. This will protect the Project timeline by not cascading on each individual critical path activity. Each feeding buffer size must account for uncertainty/ambiguity in the duration of the chain of
dependent activities leading up to that buffer.
A B C Project Buffer
Ideal Project Completion
Ideally, 1 Task is assigned to 1 Project Resource at any given point in time. No multitasking by same resources.
G H
X Y
Project Start
Project End
Feeding Buffer
Feeding Buffer
Real Project Completion
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Critical Chain Method In a typical project to calculate the project duration, we
would look into Sequencing of Activities through critical
path. And this critical path can be considered as the
actual project duration, if the assumption of 1 Task Per
Resource Per Project is true.
However, in reality – we would want to achieve some
benefit(including resource optimization) by applying same
resource(SME’s sometimes) to work on some activities,
such as in the case depicted above. This application of
resource over multiple places on the project alters the
critical chain of the project.
This optimized resource constrained critical path is
sometimes known as Critical Chain.
Look at task H & Y to be performed by the same resource
Person 1 after task A. This would mean that automatically
the project critical path which was earlier
Start-A-B-C-End
this has now altered to become Start-A-H-Y-B-C-End
As new Critical Chain path emerges, feeding buffers will
change so that critical path activities are not cascaded
further.
A Person1
B Person1
C Person 4
Project Buffer
Ideal Project Completion
G Person2
H Person1
X Person 3
Y Person1
Project Start
Project End
Real Project Completion
Feeding Buffer
Feeding Buffer
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Resource Leveling
Resource allocation on particular activities may require critical resources which are in
high demand. This may impose these critical resources to be over allocated on
parallel activities and/or multiple projects.
Resource leveling ensures these critical resources are optimally spread across parallel
activities and multiple projects so that they don’t need to work 16 hours a day!
Resource Smoothing
Activities with free float are re-adjusted so that the resources work is evened out.
Readjustment of these activities should not cause changes to the project schedule
duration.
Resource Optimization Techniques
0
10
20
30
40
50
60
70
W1 W2 W3 W4 W5 W6 W7 W8 W90
10
20
30
40
50
60
70
W1 W2 W3 W4 W5 W6 W7 W8 W9
40
Wo
rk H
ou
rs
40
Wo
rk H
ou
rs
Leveling
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What-IF Scenario Analysis
Process to evaluate the scenarios and their anticipated outcomes which may be either Positive, Negative or Unknown.
Based on the outcome of the scenarios, the schedule network analysis is performed which may result into actionable results such as delayed production delivery, impacted financial revenue from the product delivery, extended periods of delivery so on.
The outcomes may also be used in adverse situation planning such as in case of a labor union unrest, what may be the contingency plan or response to such situation.
Simulation
Simulation involves calculation of multiple
project durations based on the activity assumptions.
This may be based on the 3 point estimates distribution(Optimistic, Most Likely, Pessimistic) or Monte Carlo Simulation.
Monte Carlo Simulation is the most common simulation in which a distribution of possible activity durations (based on 3-point estimating – Optimistic, Pessimistic, Most Likely) are defined based on probabilistic random number ranges.
This simulation aides the project manager to come up with variations and extremes which in turn helps project manager to inform stakeholders and set rightful expectations on the project schedules and costs.
Stakeholders are in advantage situation to make a better informed decision based on at least some probabilistic patterns of simulation instead of pulling numbers from thin air.
Modeling Techniques
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Schedule Compression Techniques are applied to shorten schedule duration of the entire project.
Crashing
Cost & Schedule tradeoffs are analyzed to determine how to obtain the greatest amount of compression with least incremental
cost.
As the compression is achieved, the risk and the cost on the particular task dramatically increases. It may not be best to crash always.
Methods to apply crashing include
adding additional resources
approving overtime resources
adding incentives for finishing early
General practice is to ensure the tasks on critical path are crashed first.
Fast Tracking
Activities or Phases performed in parallel instead of sequential leading to quick delivery, though increased cost and/or some rework.
This only works when the activities overlap on each other for some duration.
Schedule Compression Techniques
40 Work Hours done by 1 Person
40 Work Hours done by
2 Person
Crashing done by addition of resources to save time
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Crashing Graphically
Terminate (T)
Start (S)
7M
6M
8M
7M
Critical Path: Longest Duration Path of Project. Any delay on this path of
activity will further delay Project itself.
Alternate Path: This path if wanted could be delayed by a flexibility of 2M. This flexibility
is called Float.
Terminate (T)
Start (S)
7M
6M
8M
7M
Months
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Crashing Graphically
Terminate (T)
Start (S)
7M
6M
8M
7M
Instead of 1 Person working for 8M, let
us say 2 people work on this task to
complete in 2M
1 Person
1 Person 1 Person
1 Person
Terminate (T)
Start (S)
7M
6M
2M
7M
With 2 Person working now, duration of task reduced to 2M from 8M, incurring an extra cost of maybe 1 extra machine
/extra salary for new person
1 Person
1 Person 1 Person
2 Person
New Critical Path is 13M with an Extra Cost of 1 Person
This is the new Alternate Path with a
Float of 13M-9M = 4M
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Crashing Exam Example
What activities can be crashed? • All Critical Path Activities with Zero Float Activity can be crashed. • Non-Critical Path Activities need not be crashed as they don’t generate
any additional benefit to the project schedule compression.
Which will be most beneficial activity that can be crashed from the list? • Activity F will be the most beneficial from the activities among B, C, F, H, J
since it has Cost per Month of 433 which is the least.
Activity
Critical
Path
Activity
Activity
Float
(Slack)
Project
Float
Duration
(month)
Crash
Duration
Time
Savings
Cost
(month)
Crash
Cost
Extra
Cost
Cost
Per
Month
A 1 5 9 1 8 9300 12000 2700 338
B √ 0 5 4 3 1 6800 9000 2200 2200
C √ 0 5 3 2 1 8000 14000 6000 6000
D 2 5 4 3 1 13700 18000 4300 4300
E √ 3 5 6 1 5 6600 10000 3400 680
F √ 0 5 5 2 3 9700 11000 1300 433
G 2 5 8 2 6 7400 8500 1100 183
H √ 0 5 7 3 4 10100 12500 2400 600
I 2 5 10 3 7 12200 17500 5300 757
J √ 0 5 8 4 4 5800 9500 3700 925
Project has a float of 5 months, what would be the best possible crash activity to ensure the 5 months float is saved? • Zero slack critical path activities B, C,
F, H, J. • Combining them together to achieve 5
months, looking into Time savings B+C+F, B+J, C+J, B+H, C+H which will be 2200+6000+433, 2200+925, 6000+925, 2200+600, 6000+600
• The best option is to pick the lowest crash cost per month combination which is B+H.
What is the cost incurred to crash this Project? • Cost incurred to crash any project
would be to crash all the critical path zero slack activities and utilize the complete Project float value(in this case 5 Months) to pick the lowest crash cost per month combination as calculated earlier.
• So the combination is B+H which is 2200+600 = 2800 (Crash cost of the project)
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Fast Tracking Example Days -> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
"A" Task of 6 days A A A A A A
"B" Task of 9 days B B B B B B B B B
"C" Task of 12 days C C C C C C C C C C C C
"D" Task of 5 days D D D D D
Days -> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
"A" Task of 6 days A A A A A A
If "B" can be fast tracked by 4d
"B" Task of 9 days B B B B B B B B B
If "C" can be fast tracked by 8d
"C" Task of 12 days C C C C C C C C C C C C
If "D" can be fast tracked by 4d
"D" Task of 5 days D D D D D
4 days
8 days
4 days
Total Task Duration = 6+9+12+5 = 32 days
Total Fast Tracked Task Duration = 16 days Duration Saved from Fast tracking
Fast Tracking applicable
for overlapping activities
& phases only
What is the fast tracked duration for above example? • Yes, that’s correct. It is 16 days.
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6.7 Control Schedule
Inputs
•Project Management Plan
•Project Schedule
•Work Performance Data
•Project Calendars
•Schedule Data
•Organizational Process Assets
Tools & Techniques
•Performance Reviews
•Project Management Software
•Resource Optimization Techniques
•Modeling Techniques
•Leads and Lags
•Schedule Compression
•Scheduling Tool
Outputs
•Work Performance Information
•Schedule Forecasts
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is the process of managing the project schedule
and controlling the schedule to ensure the project
is delivered with in the planned schedule
timeframe.
Key benefit includes the project schedule is well
within the planned schedule timeframe.
Using control schedule the project can be put
back in to track by corrective and preventive
actions.
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It is the data required to manage and control the Schedule itself. It is
generally observed that alternative schedules arising out of the contingency
or due to the funding limit reconciliation are parked here.
Schedule data includes the milestones, schedule related activities,
identified risks, assumptions and schedule related constraints. Data could
also include the histograms whether the resource leveled or not resource
leveled.
Schedule Data
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Performance Review of work in progress and work accomplished may be
carried in perspective of:
What is accomplished (actual function/story points to planned
function/story points)
at what cost (actual amount of money or percentage wise)
when it is done (actual hours/dates or the deviation dates)
In the Schedule Performance reviews:
actual start date compared to the planned start date
actual end date compared to the planned end date
percentage work accomplished to planned accomplishment
Various Techniques may be used for performance reviews:
Trend Analysis
Critical Path Method
Critical Chain Method
EVM(Earned Value Management)
Performance Reviews
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Schedule Variance (SV) and Schedule Performance Index (SPI) are the two important Schedule Work Performance Information which need to be kept in radar to have the control on the Schedule.
Continuous monitoring of these two parameters help one understand the progress being made and the performance of the project on schedule, allowing the recommended corrective and preventive actions.
Progress reports on the schedule during the control schedule are continuously reported to the stakeholders on desired intervals.
Work Performance Information
Project Status Report
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Schedule Forecasts are future predicted timelines of the
schedule, it may be for a task, activity, module or for a
project.
Mainly the Project schedule forecast is of our
importance, however, at times it may be of critical task,
activity or a module as well.
Scheduled forecast is arrived based on the already work
completed, work in progress and work in future to be
accomplished. In other terms, it is progress against
schedule baseline and the computed time estimate to
complete(ETC).
The past performance indicators reflect the future
course of project work accomplishment.
Forecasts are helpful to determine if the project
schedule is within the defined tolerance levels of the
schedule ranges.
Schedule Forecasts
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Chapter 6 - Debrief
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THIS BRINGS TO “TIME MANAGEMENT” COMPLETION.
From what we have understood so far is:
7 Time Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 6
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Cost Management
Chapter 7
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Chapter 7
Objectives
Understand the different Cost Management
Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Cost Management aspects required to understand the customer monetary dimensions.
What and how the project will be funded for expenditure, what will be needed to complete the project and finally brought to the satisfactory need of the
customer within defined budget – making the project successful!
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Project Cost Management includes
processes to ensure the Cost is defined
(estimated, budgeted), managed,
controlled to arrive on the Cost baseline
used for further reference on the project.
Project Cost Management is largely
associated with establishing the cost to
be incurred on the project and keeping
the cost well within the stipulated cost ranges.
In most organizations, the cost
management is a function performed
largely by the finance or administration
team specialized in financial control.
Knowledge Area: Cost Management
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There are 4 Cost Management processes:
1. Plan Cost Management
Establishing Project Policies, procedures and the
controls to ensure the project costs are managed well.
2. Estimate Costs
Identifying the costs associated with the resource
needs in order to accomplish the project activities
3. Determine Budgets
Once the cost estimates are available a planned
budget is authorized as the Cost Baseline to maintain a
reference for the project
4. Control Costs
Process of managing the project activities to control
costs with reference to the Cost baseline
Knowledge Area: Cost Management
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7.1 Plan Cost Management
Inputs
• Project Management Plan
• Project Charter
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Expert Judgment
• Analytical Techniques
• Meetings
Outputs
• Cost Management Plan
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Define and establish policies, procedures and
governance models to ensure the cost of the activities
and eventually the Project are planned, managed,
expended and controlled in line with the expectations
defined.
Key benefit of this process is, It provides the guidance and
direction on how the cost need to be managed through
out the project.
This process is detailed from a high-level Project Charter
and the preliminary project management plan.
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Cost Management Plan output describes how project costs will be planned, managed and controlled. It establishes the following:
Units of Measure → Each resource unit of measure will be defined. For example: Staff
Hours, Liters, Kilometers..
Level of Precision → The degree to which the activity cost will be rounded up or down. ( INR 449 to Round up of INR 500 or INR 449 to Round down to INR 400)
Level of Accuracy → The activity estimate accuracy level with tolerance range.(+/- 5%)
Organizational Procedure Links → In order to control costs on the project activities, WBS has options to include Control account and Control account codes. These organization
procedure links ensure the continuous cost monitoring.
Control Thresholds → Defined thresholds on each activity or at project level ensure any variances beyond the thresholds are acted and informed to the stakeholders.
Rules of Performance Management.
EVM rules of performance are set.
Suppose for every INR 10 Lakh, the performance review and the EAC(Estimate at completion) of the project may be reviewed.
Suppose for every completion of 10 tasks, the AC(Actual Cost) may be
reviewed and further actions defined.
Suppose for every CPI variation of more than 20%, a review may be enforced.
Reporting formats → Formats & Frequency of Cost Reports circulated.
Process Description → Other cost processes involved in the project are defined and documented.
Cost Management Plan
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7.2 Estimate Costs
Inputs
•Cost Management Plan
•HR Management Plan
•Scope Baseline
•Project Schedule
•Risk Register
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Analogous
•Parametric
•Bottom Up
•3-point
•Reserve Analysis
•Cost Of Quality
•Project Management Software
•Vendor Bid Analysis
•Group Decision Making
Outputs
•Activity Cost Estimates
•Basis Of Estimates
•Project Documents Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
It is the process of estimating (approximation) the financial value
needed to ensure the project activities are completed.
Cost estimates also provide the details on alternate options such as
make versus buy, buy versus lease, shared resources and so on.
Cost estimates are generally represented in the format of staff hours,
staff days and/or staff years instead of currencies due to the currency
fluctuations.
These estimates evolve over a period from the range of, -25% to
+75%(Rough order of magnitude ROM) to -5% to +10%(definitive
estimate).
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Human Resource Management Plan
HR Management Plan defines allocation, engagement and finally release of resources for project. This plan may include following:
Roles and Responsibilities
Role – function of job role has to be
defined with clear boundaries.
Authority – In the function of job, Authority resource exercises
Responsibility – nature of responsibilities resource perform
Competency – level of skill the resource
has. For any gaps identified, proactive planning to up skill competency.
Project Organization Charts
Each staff member of the project has to report their duties to the respective function or authority for the defined
project. This being represented in graphical tree structure is known as Project organization chart. Example: Imagine a Satellite Development Project with Thousands of Staff.
As a component of HR Management plan, it has to be defined when and how the resources will be allocated, engaged for how long and when will be finally released. Such plan may include:
Staff Acquisition
Resource Calendars – use visual tools Resource Histogram
Staff Release Plan – Smooth transition of
resources during the release to another project increases Morale of the staff
Training Needs
Recognition and Rewards – Key aspect of motivating staff. Definite plan should exist to
ensure the performing resources achieve their project objectives.
Staffing Management Plan
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Cost of quality includes all costs incurred over the life of product by investment in preventing non-conformance to requirements, appraising the product or service for
conformance to requirements, and failing to meet requirements.
Failure to meet requirements is known as Rework. Any rework has to be completely
eliminated with refinements in the process or avoided in the first place.
Failure costs are also called Cost of Poor Quality and are categorized into:
Internally found by Staff
Externally found by Customers
Cost of Quality - COQ
Cost of Conformance
•Prevention Costs
(build Quality product)
•Training
•Document Processes
•Equipment
•Time to do it right
•Appraisal Costs
(assess the Quality)
•Testing
•Destructive testing loss
•Inspections
Cost of Non-Conformance
•Internal Failure Cost
•Rework
•Scrap
•External Failure Cost
•Liabilities
•Warranty Work
•Lost Business
Mo
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For Large Projects, it is very fruitful to
have bidding mechanisms wherein
the qualified vendors engage and
define the cost of such a work at
hand.
This largely saves huge upfront
estimation costs for performing
organization and also gain
advantage of multiple competing
bids.
At the same time, wherever the
performing organization intends to
have better control on the overall
cost incurred, the organization
performs due diligence to award
such work to contractors. This may
result in additional overhead of
detailing project with due-diligence.
Vendor Bid Analysis
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Arriving at Cost Estimates should also detail
the approach and the mechanisms
adopted to arrive at the cost in a clear and
complete manner.
Based on the nature of the projects, the
basis of estimation for such industry or
function may completely alter.
Such cost estimates may include the :
Basis of estimation
Risks & Assumptions
Constraints & Boundaries
Range of possible estimates
Indication of confidence level of the
final estimate
Basis of Estimates
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7.3 Determine Budget
Inputs
•Cost Management Plan
•Scope Baseline
•Activity Cost Estimate
•Basis Of Estimate
•Project Schedule
•Resource Calendars
•Risk Register
•Agreements
•Organizational Process Assets
Tools & Techniques
•Cost Aggregation
•Reserve Analysis
•Expert Judgment
•Historical Relationships
•Funding Limit Reconciliation
Outputs
•Cost Baseline
•Project Funding Requirements
•Project Documents Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
It is the process of aggregating the estimated costs and to
establish an authorized budget for the project + define the
cost baseline.
Key benefit is a ready cost baseline reference for monitoring
and controlling the costs on the project duration.
Cost baseline includes all the funds required to execute the
project till completion. Management reserves are beyond the
Cost baseline and are not part of the funds for execution of
the project.
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Cost Aggregation
Costs are aggregated (summed up) at above levels. Usually the costs are attached to each work package, which are then aggregated at Control Accounts and then aggregated at the entire Project level.
Total Project Costs can be arrived using the historical relationships of using the parametric or analogous estimates.
This depends on the actual costs of the previous projects. Helpful in the early phase
of the project when limited information is known.
Historical Relationships
Expenditure of funds should be reconciled based on the funding limits on the commitment of
funds for the project by the customer or the organization.
This may necessitate and/or trigger changes to the schedule and cost expenditure patterns as the project would progress.
In order to ensure the expenditures are inline with the funds by necessitating constraint dates into
project schedule.
As the project progresses, all expenditures are supposed to be accounted and readjusted as per the reconciliation of the project expenses in to project schedule.
Funding Limit Reconciliation
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Project Budget Let us take a sample example to understand what and how Project Budgets are arrived at and what are the Funding Limits.
For a New Wooden House Construction Project in an Amazon forest of 4 Months.
Vendor is charging the Project USD 3,50,000. Based on the agreement, Vendor has agreed to start work immediately upon 10% received funds in 1st Month, 30% in 2nd Month and rest in subsequent 2 months.
Project staff working on the Project would need an upfront USD 45,000 for their travel expenditure. During the 3rd Month staff needs USD 20,000 for the final travel settlements.
Project also needs Machines which is estimated to be USD 30,000 in 1st Month and
thereafter every month USD 10,000 till Project completion.
What will be Total Project Budget and how is it reconciled for every month? Also draw an S-Curve for the Project.
Category Sum 1st Month 2nd Month 3rd Month 4th Month
Vendor 350000 10% 30% 30% 30%
Staff Travel 45000 20000
Machines 30000 10000 10000 10000
Total Budget
Cumulative Cost
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Category Sum 1st Month 2nd Month 3rd Month 4th Month
Vendor 350000 35000 105000 105000 105000
Staff Travel 65000 45000 - 20000 -
Machines 60000 30000 10000 10000 10000
Total Budget 475000 110000 115000 135000 115000
Cumulative Cost 110000 225000 360000 475000
0
110000
225000
360000
475000
0
100000
200000
300000
400000
500000
M1 M2 M3 M4
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Cost Baseline (S-Curve)
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Cost baseline is the approved time-
phased project budget, excluding any
management reserves.
In order to use the management
reserve, the change control board has
to approve the required funds.
Project Funding Requirements are
periodic funding requirements derived
from the cost baseline.
Activity
Cost
Estimates
Work
Package
Cost
Estimates
Control
Accounts
Cost
Baseline
Project
Budget
Tota
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Time
Cu
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Management Reserve
Project Budget
expenditures
Cost Baseline (S-Curve)
Funding Requirements
Cost Baseline(S-Curve) Project Funding Requirements
Activity Contingency
Reserve
Contingency Reserve
Management Reserve
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7.4 Control Costs
Inputs
•Project Management Plan
•Project Funding Requirements
•Work Performance Data
•Organizational Process Assets
Tools & Techniques
•Earned Value Management
•Forecasting
•TCPI (To-complete Performance Index)
•Performance Reviews
•Project Management Software
•Reserve Analysis
Outputs
•Work Performance Information
•Cost Forecasts
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is the process of managing project cost and controlling
project costs to ensure, ―project is delivered‖ with in planned
cost baseline.
Key benefit includes the project cost is well within the
planned cost baseline and minimize the project risks.
Using ―control costs‖ the project can be put back in to track
by corrective and preventive actions.
Effective management of Control costs is performed by
ensuring the Projects Costs are controlled with Control
Accounts and approved by the Authorized Personnel along
with the reviews.
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Earned Value Management
Technique is a Performance
Measurement and Project health
status check technique with visual &
statistical representation on Scope,
Cost, Schedule, Resources.
EVM combines an integrated view of
both Scope Baseline and Cost
Baseline based on which the
Performance Baseline is established.
Time
Cu
mu
lativ
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ost
Management Reserve
Project Budget
Planned Value(PV)
Earned Value(EV)
Present Day
Actual Cost (AC)
Estimate to
Complete(ETC)
Bu
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At
Co
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BA
C)
Est
ima
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t C
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EA
C)
Project Start
Earned Value Management
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Planned Value (PV)
The charted out planned value for the
project is referred to as the PV and is
commonly thought as Authorized
budget for the Scheduled Work.
At any given point in time, it is
supposed to be the accomplished
value which can be treated as the
baseline.
This baseline may be used to make
comparisons against the actual values
either cost or schedule.
This baseline is also referred to as the
Performance Measurement Baseline.
The total planned value of the project
is also known as BAC(Budget at
Completion), which does not include
the Management Reserve.
Earned Value (EV)
The charted out actual value for the
project at that given point in time is
known as EV and is commonly thought
as the Actual Work Performed
measured against the Authorized
Budget value.
EV actually shows the Project
percentage completion.
EV is the real time performance data of
the project and based on which
suitable measures may be adopted
incase of deviations of the project
parameters.
Earned Value Management
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Actual Cost (AC)
AC is the total cost incurred on project till date.
Based on past performance, it is possible to estimate future predicted
values and arrive at the final actual cost = EAC (Estimate at
Completion) giving insights to project management team for
appropriate funding on future course of project.
AC is the realized cost for the work performed on the project till that
point in time.
Schedule Variance (SV) = EV - PV
SV is the difference between the Earned value and the Planned value.
SV helps to identify whether the project is ahead on the schedule or
behind the schedule in comparison to PV.
Cost Variance (CV) = EV - AC
CV is the difference between the Earned value and the Actual cost.
CV helps to identify whether project is cost overrun or under control.
Variance at Completion (VAC) = BAC – EAC
Estimated variance cost to completion of the project.
Earned Value Management
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Schedule Performance Index (SPI) = EV / PV
SPI is measure of schedule efficiency of project.
SPI Value = 1
Project is trending as per expectation and
expected to finish as planned.
SPI Value > 1 (Means Better)
Project is ahead of schedule and all work
planned has been achieved along with some
future work accomplished earlier.
SPI Value < 1
Project is behind schedule and not all work
planned has been achieved as of date and
need to recover lost time.
Earned Value Management
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Cost Performance Index (CPI) = EV / AC
CPI is the measure of cost efficiency of project.
CPI Value = 1
Project is spending as per expectation and
expected to meet cost objectives as planned.
CPI Value > 1 ( Means Better)
Project is spent less than planned and is efficient
in terms of cost expended.
CPI Value < 1
Project is spent more than planned and needs
to control cost expenditure to be back on track
for cost objectives.
Estimate To Complete (ETC) = EAC – AC
It is the expected cost to complete remaining work.
Earned Value Management
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Project Metrics in EVM
For any project these all constitute a part of the
metrics which the project management team may be
interested to act and report on frequently.
PV, EV, AC, SV, CV, SPI, CPI, ETC, BAC, EAC and so on..
Forecasting
Estimating BAC & EAC are very helpful for the
management to get an overview of the funds
required for the project to start and bring it to closure.
Based on the AC, the EAC may vary significantly than
the planned BAC. This helps the project management
team to regularly monitor and ensure the values are
continuously monitored for better control during the
entire project duration based on the forecasts.
Earned Value Management
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EAC may be forecasted in various
manners.
Simplest Way: EAC = AC + Bottom up
of ETC
EAC forecast for ETC work performed
at budgeted rate:
EAC = AC + (BAC – EV)
EAC forecast for ETC work performed
at present CPI:
EAC = BAC / CPI
EAC forecast for ETC work considering
both SPI & CPI:
EAC = AC + [(BAC – EV) / (CPI × SPI)]
In the last forecast method both SPI &
CPI are considered at the ratio based
on the project managers confidence
level of future SPI & CPI levels.
To-Complete Performance Index (TCPI)
TCPI is the cost performance index
which is to be achieved on the
remaining work to meet the specified
management goal like BAC or EAC.
TCPI = (BAC – EV) / (BAC – AC) or (EAC
– AC)
TCPI = Work Remaining / Funds Left
Over
Earned Value Management
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Cost Forecast is the new cost estimated at the completion of the project
while the project is in progress.
The new cost is a result of the cost variances(CV) to the original planned
value(PV) and is also represented as EAC(Estimate at Completion) value.
Cost Variance may be a result of various actions which has caused either
the cost to fluctuate on the upper or lower side of the planned value.
Cost Forecasts
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Chapter 7 - Debrief
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THIS BRINGS TO “COST MANAGEMENT” COMPLETION.
From what we have understood so far is:
4 Cost Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 7
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Quality Management
Chapter 8
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Chapter 8
Objectives
Understand the different Quality
Management Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Quality Management aspects required to maintain the desired customer quality.
Driving the project towards the desired outcome while maintaining quality is one of the key to making the project successful!
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Project Quality Management includes processes to
ensure the project deliverables are in conformance
to the project requirements.
Ensuring the Quality and Grade of the deliverables is
understood by the team is essential and needs to be
detailed in Plan Quality Management.
Quality of the deliverables in the project is the
conformance to the Requirements, whereas the
Grade of the deliverables is the conformance to the
technical characteristics of the deliverables.
Similarly, project deliverables as per needs of the
quality conformance need to be detailed with
Precision and Accuracy.
Precision: measure of exactness. Ex: Remember a Unit on Scale Precision.
Accuracy: measure of correctness. Ex: Remember Dart Board Accuracy of Target.
Knowledge Area: Quality Management
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There are 3 Quality Management processes, namely:
1. Plan Quality Management
Planning Project Policies, Processes, Procedures which
will enable and ensure the Project deliverables are in
compliance with the quality requirements.
2. Perform Quality Assurance
Performing Quality Audits to ensure the right set of
Policies, Processes, Procedures are used to deliver the
desired quality and grade of deliverables with defined
precision and accuracy. Quality Control Measurements
can be applied to achieve the same.
3. Control Quality
Process of managing the project quality in the defined
tolerance levels, control limits and ranges during the
project execution.
Knowledge Area: Quality Management
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Some important quality terms used often in different
quality approaches.
Customer Satisfaction
Ensuring the project requirements are met
and at the same time ensuring the project
outcome is usable by the end user or the
client
Prevention over Inspection
Quality should be planned always to be
proactive, the cost of prevention of defects
is much lesser than the cost of inspection.
Continuous Improvement
There are multiple Continuous Quality
Improvement initiatives possible and
depends on the project need to engage
the level of quality desired & may follow
one of these approaches:
Plan-Do-Check-Act (PDCA)
Total Quality Management (TQM)
Six Sigma
Lean Sigma
Kaizen(Kai-to alter; Zen-to make better)
Continuous Process Improvements (CPI) in any
project may be taken up with specially defined
approaches as in:
Organizational Project Management
Maturity Model (OPM3)
Capability Maturity Model Integrated
(CMMI)
Management Responsibility
Achieving Quality requires Management
participation and support. Management
has to take responsibility to ensure the
quality is given due diligence without which
the quality may cut corners across the
project duration due to tradeoffs for
customer & market priorities or any other.
International Organization for Standardization
(ISO)
ISO is an International standards setting
voluntary body which develops, publishes
and administers the International Standards.
Quality Management basic approach
outlined by PMBoK® is inline with the ISO.
Knowledge Area: Quality Management
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There are 3 Quality Approaches, namely:
Knowledge Area: Quality Management
•Proposed that organizations can increase their quality and reduce costs by CPI (Continuous Process Improvements) and by thinking the entire evolution as a manufacturing system instead of standalone unconnected pieces
W. Edwards Deming
•Proposed the application of Pareto’s(80-20) Principle to Quality as 80% of the quality issues are due to the 20% of the causes.
•Also, developed Juran’s Trilogy:
•Quality Planning
•Quality Control
•Quality Improvement
Joseph. M. Juran
•Proposed the DiRFT (Doing it Right First Time) for the Quality Crisis
•Proposed 4 Major Principles of Quality
•Quality is Conformance to Requirements
•System of Quality is Prevention
•Performance Standard = Zero Defects
•Measurement of Quality = Price of Non-Conformance
Philip. B. Crosby
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8.1 Plan Quality Management
Inputs
•Project Management Plan
•Stakeholder Register
•Risk Register
•Requirements Documentation
•Organizational Process Assets
Tools & Techniques
•Cost Benefit Analysis
•Cost Of Quality
•Seven Basic Quality Tools
•Benchmarking
•Design Of Experiments
•Statistical Sampling
•Additional Quality Planning Tools
•Meetings
Outputs
•Quality Management Plan
•Process Improvement Plan
•Quality Metrics
•Quality Checklists
•Project Documents Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
It is the process to establish the Quality Management Plan
based on which the Project Quality will be planned,
managed and controlled on the relevant quality
requirements and standards.
This also helps to document approaches which will guide on
how to ensure compliance to those requirements and
standards.
Provides opportunity to establish mechanisms to setup
process improvements and continuous refinement
procedures, define metrics and quality checklists.
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Primary benefits of meeting quality
requirements include less rework,
higher productivity, lower costs,
increased stakeholder satisfaction,
and increased profitability.
A cost-benefit analysis for each
quality activity compares the cost of
the quality step to the expected
benefit.
Cost Benefit Ratio(CBR)
CBR = 𝐶𝑜𝑠𝑡
𝐵𝑒𝑛𝑒𝑓𝑖𝑡
Benefit Cost Ratio(BCR)
BCR = 𝐵𝑒𝑛𝑓𝑖𝑡
𝐶𝑜𝑠𝑡
How to use CBR & BCR ratios to pick
Projects?
Projects are compared for the
better benefit amongst a group of
Projects. The Project with highest
BCR wins or the Project with lowest
CBR wins.
For any given project, always pick
the projects with benefit or at least
the ones which does not incur loss:
BCR Greater than or Equal to 1.0.
or
CBR Lower than or Equal to 1.0
Cost Benefit Analysis
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Also known as 7QC Tools for 7
Quality Control Tools.
Applied to plan Quality & solve the
Quality Improvement related issues
on the project.
1. Cause and Effect Diagrams
2. Flowcharts
3. Check Sheets
4. Pareto Diagrams
5. Histograms
6. Control Charts
7. Scatter Diagrams
1. Cause and Effect Diagrams
(Also known as Ishikawa’s Fish Bone)
The problem statement is kept at the
head of the fish and traced backwards
to identify the root cause and possible
actions.
Identification of the root cause
happens based on the repeat question
―why‖ until the root cause of the
problem is found.
2. Flowcharts (Process Maps)
Flow charts define the end to end flow
of the steps and branching possibilities
that exist for a process.
Cost estimating is obtained by using
the workflow branching logic and
associated estimated monetary value
for the conformance and non-
conformance work.
Seven Basic Quality Tools
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Low Website Traffic
Socially networked?
Easy user navigation?
Appealing Design & Aesthetics ?
Works on Smart devices?
Works on Tabs? Not much content?
Good Quality of Content?
Is website playful to keep user long on website?
Is content and experience user friendly & engaging?
Enough PR Engage?
Traditional Campaigns?
Social Campaigns?
Cause and Effect Diagram (Ishikawa Fishbone Diagram)
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Start
End
Production Setup
Production
Compliance
Kick start
Production
decision
Summation
Re-Planning
Error Type Count
(frequency) Weight Score
Design Error IIIII III 12 8 * 12 = 96
Development
Error IIIII IIIII IIIII 6 15 * 6 = 90
Quality Error IIIII IIIII IIIII
IIIII IIII 3 24 * 3 = 72
Integration
Error III 15 3 * 15 = 45
Total Score 96+90+72+45 =
303
Are used to organize the facts in a manner
that will facilitate effective collection of
useful data about a potential quality
problem.
They are useful for gathering data
attributes while performing inspections to
identify defects.
Flowcharts Check Sheets
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Pareto Diagrams are visual representation of the entire set of problems which are categorized. Out of the 100% problems, consider to focus efforts to fix on the 80% on the issues.
Focusing on 80% of problems with a small 20% of root causes will yield major improvements.
Pareto Diagrams are based on the Pareto’s law, accordingly to which a relatively small number of causes will typically produce a majority of the problems or the defects identified.
Based on this principle, it is observed that 80% of the problems are due to 20% of the causes.
Analysis Deficit Design GapsDevelopment
Bugs
Architectural
FlawsQuality Gaps
Integration
MissOthers
Frequency 26 21 19 11 8 7 8
Cumulative 26% 47% 66% 77% 85% 92% 100%
0%
25%
50%
75%
100%
0
5
10
15
20
25
30
% o
f d
efe
cts
Ra
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efe
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Pareto Diagram (80-20) Focus Efforts on Top 80% Topics
Pareto Diagrams
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This tool illustrates the common
causes in any process with a number
and relative heights of the bar.
Histogram does not relate with the
causes based on the time phased
manner. The causes may happen
over any duration of time and is not
represented in histogram.
Is a graphical representation of any
particular nature of element with its
wide spread distribution of frequency
or occurrence intervals and having
the Central tendency.
The Histogram may be ordered or
unordered. Below representation is an
ordered histogram which represents
the central tendency and
subsequent dispersed distribution.
Integration Miss Quality GapsDevelopment
BugsAnalysis Deficit Design Gaps
Architectural
FlawsOthers
Frequency 7 8 19 26 21 11 8
0
5
10
15
20
25
30
Ra
te o
f D
efe
cts
Histogram (Causes for sub standard Product Quality)
Histograms
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Any deviations beyond UCL & LCL should be acted upon to ensure the process is brought back to stableness.
Process is considered out of control when:
A data point is beyond the Upper or Lower Control Limit, however it is well within the
Upper or Lower Specification Limits
7 consecutive points above or below the mean of the Chart
Control charts provide a visual representation for review of the goal attainment performance and the deviations of any process to the defined path being stable or not.
Upper Control Limits and Lower Control
Limits define the process stableness. Any actual values within the UCL & LCL provides a ready answer that the process has been stable and inline with the expectations.
Control Charts
0
20
40
60
80
100
120
140
160
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Actual ValueUCL Specification LimitUCL(Upper Control Limit)Planned ValueLCL(Lower Control Limit)LCL Specification Limit
Customer Defined Specifications
Process Owner Defined Limits
3
3
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Scatter Plot (Negative & Positive Co-relation)
Negative Correlation - Data trends downward
Positive Correlation - Data trends Upward
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Scatter Diagrams (Co-relation Charts)
Negative Correlation Positive Correlation No Correlation
Scatter Diagram or Scatter Plot is a graphical representation that shows the relationship
also known as co-relation between data points of variables. This tools aids to study and
identify possible relationship between changes observed amongst variables.
We also come across basic terms here such as:
Negative Co-relation (data points indicating the negative trend)
Positive Co-relation (data points indicating the positive trend)
No Co-relation (data points distributed across with no clear trend visible)
Best Fit Line (diagonal line with data points equally distributed on both sides)
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This involves comparing the planned
processes to the already existing/used
processes which have been considered
best practiced processes in any similar
relevant project within or outside the
organization.
This type of benchmarking ensures that the
project processes adopt the best in line
and best in industry practices thereby
naturally increase the likely hood of
becoming the ideally run project success.
Benchmarking
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Design of Experiments(DOE)
DOE is conducted to optimize the values and parameters of any production process or product being developed.
DOE is based on the statistical framework and ensures to make multiple variable
changes at once to identify the best possible combinations to achieve the desired results.
This drastically helps to conduct the experiments keeping these conditions in mind and target the set or defined cost parameter while achieving the product
requirements.
Example:
Imagine a jet engine, thousands of variables act in tandem to produce the desired outcome. Ensuring the required output is
achieved at optimal use of Jet Fuel is one of the key to high performance engines which is a possibility of design of experiments.
This can be soft tweaked and not hard tweaked being considerate of costs involved in experimentation.
Statistical sampling involves picking up a random sample from a large population group of items produced to ensure the Quality is being well maintained.
Example:
A leading beverages company uses this technique to ensure the quality of their beverages are in line to the customer expectations.
Picking a random sample out of a large produced numbers for a quality check from every lot ensures the lot produced is of the
desired quality.
Statistical Sampling
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Two type of Sampling
Attribute Sampling
Attribute Samples (Yes/No)
(Very Good, Good, Neutral,
Bad) type of answers for a
defined sample set in question for testing.
Variable Sampling
Variable Samples (0.1, 0.5,
0.8, 0.95, 0.24) type of
variables for a sample set
which we are testing.
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Other quality planning tools are used to define quality requirements and to plan effective quality.
Brainstorming
Used to generate ideas in group discussion mode.
Force Field Analysis (FFA) – Decision Making
Forces acting for and against
Change on a Plan.
Nominal Group Technique
Allows the idea to be brainstormed in a small group before being reviewed by a larger group.
Quality management and control tools
Can be used to link and sequence the quality activities.
Additional Quality Planning Tools Driving & Restraining Forces in equilibrium
Equilibrium
Res
trai
nin
g Fo
rce
s D
rivi
ng
Forc
es
Pla
n o
r P
rop
osa
l or
Dec
isio
n
How FFA Tool is used in practice for Decisions?
1. Keep Plan or Proposal (Change) or Decision to be arrived in
Equilibrium.
2. Look at the Forces acting FOR. Identify and evaluate them.
3. Look at the Forces acting AGAINST. Identify and evaluate them.
4. Assign a rank for both sides of the Force(say 1-lower to 5- higher)
5. Finally Sum them up and make the decision based on the highest
rank side.
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Quality Management Plan
Quality Management Plans define how the Organizational Quality Policies and Project quality objectives will be implanted and achieved.
Key Benefit of this process is to ensure to
meet project value proposition and reduce costs and rework patterns.
Process Improvement Plans identify the activities and process in the project management through which the value can be enhanced.
Areas which may be considered for such:
Process Boundaries
Process Configuration
Process Metrics
Targets for Improved Performance
Process Improvement Plan
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Quality Metrics
Quality Metrics are used to measure the outputs of the processes and the outcomes of the procedures followed.
Measuring quality with metrics provide quantitative format to ensure suitable
actions, controls or further measures adopted or tweaked to achieve desired state of outcome.
Usually the process are defined in a range of tolerance and any deviations beyond the tolerance levels are acted upon.
Quality Checklists are adopted to ensure the frequently performed tasks and procedures are followed in the precise same manner without taking any deviation and introduce errors.
Checklists are often standardized and ensured they follow the recurring protocols. In some industries, there are pre-defined checklists which are naturally adopted by every project performed in similar.
Quality Checklists
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8.2 Perform Quality Assurance
Inputs
• Quality Management Plan
• Process Improvement Plan
• Quality Metrics
• Quality Control Measurements
• Project Documents
Tools & Techniques
• Quality Management And Control Tools
• Quality Audits
• Process Analysis
Outputs
• Change Requests
• Project Management Plan Updates
• Project Document Updates
• Organization Process Asset Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process Perform Quality Assurance to
provide the quality of the end
product is to the standards
defined and expected.
This process ensures audit of the
Quality requirements and the
results from the Quality control
measurements to ensure that the
appropriate quality standards
and operational definitions are
used.
Key Benefits is it helps to ensure
the quality processes are
adopted and the end product is
to the extent of desired quality.
Quality Assurance contributes to
processes and mechanisms in
place to ensure the final output
or outcome of the end product
will be a quality product with
almost certainty.
It also helps prevent the defects
in first place to ensure the end
product is of high quality.
As part of the quality assurance,
continuous process improvement
initiatives are also taken up
which naturally increase the
efficiency and effectiveness of
all processes.
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Quality control measurements can also compare the processes used to
create the measurements and validate to ensure their level of correctness.
Quality Control Measurements
Acknowledged. Source: http://www.belatrixsf.com
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Performing Quality Assurance involves the tools and
techniques from the quality planning, quality control such
as:
Affinity Diagrams - Organize Large Amounts of disorganized data for groupings
Process Decision Program Charts (PDPC) - Breaks down tasks into tree hierarchy and ensure the low level risks
and issues are identified.
Interrelationship Digraphs(ID) - Defines the relationships between complex situations to solve complexities
Tree Diagrams - Breaking into granularities helps think at finer detail.
Prioritization Matrix - Each item is given a weight to identify and focus on the items which are more
important in nature.
Activity Network Diagrams
Matrix Diagrams - Tasks are often referred with reference to a relation to each other on parameters.
Affinity diagrams
Process decision program charts
(PDPC)
Tree diagrams
Quality Management and Control Tools
Matrix diagrams
Interrelationship digraphs
Prioritization Matrix
Activity network diagrams
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Quality Audit is an independent process to ensure the quality process (which are laid in place to ensure the quality assurance, quality control) objectives as planned are materialized along with any shortfalls being identified including the conformity and compliance gaps.
Audits are also applicable not only to processes, it may be extended to policies, procedures, checklists so on.
Quality Audits are normally performed by an
independent Quality team & preferably not same quality team working on project itself.
In large organizations, an independent standalone groups exist to perform random audits and checks which also supplement to identify and share best practices from across
the projects, which is beneficial.
Quality Audits are constructive in nature and should be treated for betterment of the shortcomings than the customer finding the shortcomings.
This is performed to identify the root cause of issues, discover underlying cause.
Detailed study of process ensures the process improvements are possible by looking at the betterment of processes, eliminate the non-value add activities and so on.
This also leads to come up with the preventive actions and eliminate any constraint behaviors on certain processes.
Quality Audits Process Analysis
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8.3 Control Quality
Inputs
•Project Management Plan
•Quality Metrics
•Quality Checklists
•Work Performance Data
•Approved Change Requests
•Deliverables
•Project Documents
•Organizational Process Assets
Tools & Techniques
•Seven Basic Quality Tools
•Statistical Sampling
•Inspection
•Approved Change Requests Review
Outputs
•Quality Control Measurements
•Validated Changes
•Verified Deliverables
•Work Performance Information
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is the process of controlling the quality of the end
deliverables across the project.
Quality planned may be monitored across monitoring
and controlling group to identify deviations from planned
quality assurance processes & control checks.
Key benefit includes the project quality is maintained to
the expected grade of quality. Eliminate and or minimize
the impact of bad processes along with validation of the
project deliverables conformance to the stakeholders or
customer requirements.
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Chapter 8 - Debrief
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THIS BRINGS TO “QUALITY MANAGEMENT” COMPLETION.
From what we have understood so far is:
3 Quality Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 8
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Human Resource
Management
Chapter 9
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Chapter 9
Objectives
Understand the different Human Resource
Management Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Human Resource Management aspects required to ensure the desired Project work is accomplished.
Driving the project towards the desired outcome while getting the project activities are completed to make the project successful!
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HR Management includes the processes to
ensure the required resources are planned,
acquired, evolved and managed to deliver
the project deliverables inline with the
objectives.
Ensuring the resources(project staff) are
included in the early engagement of the
project would increase their project
commitment.
Project Management team is responsible
for all leadership activities such as Initiating,
Planning, Executing, Monitoring, Controlling
and Closing.
Knowledge Area: Human Resource Management
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There are 4 HR Management processes,
namely:
1. Plan HR Management
Identification of the HR Personnel
required to be on the project,
Engaging them on the project and
finally release them once their role has
ended in project
2. Acquire Project Team
Confirmation of required resource
availability for the project to be
executed
3. Develop Project Team
Ensuring the project staff are capable
to deliver the project by up-skilling the
staff, training, coaching and ensuring
the effective communication and
motivation across the project staff to
achieve the project objectives.
4. Manage Project Team
Continuous engagement of the staff to
ensure the team understands their
importance to the project, how their
work has impact on the project by
providing them continuous feedback,
resolve any conflicts and
recognize/reward accordingly to keep
the upbeat in the team.
Knowledge Area: Human Resource Management
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9.1 Plan Human Resource Management
Inputs
• Project Management Plan
• Activity Resource Requirements
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Organization Charts and Positions Descriptions
• Networking
• Organization Theory
• Expert Judgment
• Meetings
Outputs
• HR Management Plan
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Process of identifying and documenting the project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan.
Benefits include the establishment of Project roles and responsibilities, organization charts, staffing management
plan(includes the acquisition, management, transition and release of resources), identification of training needs, team building strategies, plan for recognition and rewards.
Effective HR planning ensures the project critical resources are planned well and utilized in manner which is collaborative to other projects in the organization and minimized competing for the
same resources.
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Most of the organization charts are intended to
provide the complete ambiguity less understanding
of the project roles and responsibilities at various
levels such as at high level(graphical tree structure)
and low level which includes the text description
along with a mix and match of organization.
Hierarchical Type Charts
These charts typically represent information in a
graphical manner with a top down approach with
positions and departments.
OBS (Organization Breakdown Structure) defines the
Organizational units, project teams structured at
very high level.
RBS (Resource Breakdown Structure) defines the
resources in the category and resource type. Usually
RBS can be considered as a sub-component of OBS,
however, it can exist as standalone to the project as
well.
RBS benefits the project management team with
the aid of connecting these resources cost to the
tracking of project costs.
Matrix Based Charts
A RAM (Responsibility Assignment Matrix) depicts
how the resources or groups are assigned to the
work packages.
A common example of RAM is RACI Chart. RACI
(Responsible, Accountable, Consult, Inform)
RACI chart is used to define clear demarcations of
the behaviors expected from resources for each
individual activity. This is especially helpful when the
teams are internally and externally split working
organizations.
Text Oriented Formats. Project Management Team has to ensure the clear and detailed descriptions of the individual roles and responsibilities to be performed and publish them for ready references.
Organization Charts & Position Descriptions
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Networking is the way people connect with each other and evolve relationships which play a crucial importance in project management team dynamics to understand the underlying political and interpersonal factors.
Few of the most popular networking activities include lunch meetings, coffee breaks, events, formal and informal gatherings, meetings, social networking connections, friend of friend, email correspondence and so on.
In the essence of project management, networking helps build that interpersonal connections to influence the outcomes of the work being accomplished as part of the project.
Henry Ford (who is he?) once implemented an innovative design by modifying factory production and creating an assembly line. This setup is still being used by Ford to make it easier for company to Produce effectively and efficiently across the Ford Motor.
Behavioral information about the organizational units, teams and people in the organization can help improve the effectiveness of the HR Management Plan.
Identification of the recurring patterns and
themes in the organization supplement readily project management plan to develop efficiencies by adopting patterns of response by individual groups, teams and units.
Networking Organization Theory
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Maslow’s
Hierarchy of Needs
Theory
Starts from Lower level of needs to progress gradually upwards to
Highest level of needs. Employees are at the peak of motivation at the
tip of the pyramid.
Physiological → Safety → Social → Self-Esteem → Self-Actualization
Herzberg’s
Motivation & Hygiene
Theory
Motivation comes from: Intrinsic Conditions of the Job such as Professional & Personal Growth, Achievement, Recognition.
Hygiene factors which are externally motivating beyond the job itself such as Compensation, Company Policies, Supervisor Behavior & Closeness to Employee, Peer Behavior & Team Bonding
Victor Vroom’s
Expectancy
Theory
Employees are motivated when they understand that their superior job performance will yield to their superior organizational rewards.
McGregor’s
X & Y
Theory
X Theory suggests people are lazy, don’t want to work and needs to be micro managed
Y Theory suggests people are self motivated and need not be managed
Z Theory (derivative of Y) suggests people are at peak motivation with a lifetime career and a happy work-life balance with overall well being of the employee
McClelland’s
Need for
Achievement
Theory
Low Need for Achievement
People pick the easy tasks to minimize the risk of failure OR
People pick the extremely difficult tasks to fail themselves but avoid embarrassment
High Need for Achievement
People pick the moderately challenging tasks to ensure they are challenged but they could accomplish and well within their reach
Self-Actualization
Self-Esteem
Social
Safety
Physiological
Org
an
iza
tion
al
The
orie
s to
Mo
tiva
tion
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9.2 Acquire Project Team
Inputs
• Human Resources Management Plan
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Pre-assignment
• Negotiation
• Acquisition
• Virtual Teams
• Multi Criteria Decision Analysis
Outputs
• Project Staff Assignments
• Resource Calendars
• Project Management Plan Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process Ensuring the Project Team Members
are allocated to work on the
project for the project duration is
the main objective of the Acquire
Project Team.
Key Benefits include we have a
ready team which is
selected(based on skill, cost,
availability…) for the project team
to accomplish the work.
Team members Selection is at times
an organizational decision to hire
from a subcontractor pool or from
a different business unit. Hence it
may not be always in the hands of
project team to select team
members.
In all cases the project
management team is responsible
for acquiring the resources and
engaging them on the project
work.
Non availability of the intended
resources for the project work may
need to undergo various options,
like replacement, alternate
solutions, scheduling change and in
extreme situations project being
halted or cancelled permanently.
Project Management team is
responsible to bring out such risks
and communicate to the
stakeholders appropriately.
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Pre-Assignment
In some cases, the project staff are pre-selected for a particular purpose of the project inception. These staff are Pre-Assigned due to their special skills or knowledge about the project upfront.
Allocating key resources at the Project beginning stage ensures Project moves at a good rate. Multitasking by key resources is quite common.
Staff allocation on project is one of the critical activity a project management team performs. Allocation of right set of resources for the job ensures the work is efficiently and effectively done in quality manner.
In order to ensure the right set of resources, project management team often negotiates with functional managers, procurement team, vendors, contractors, suppliers.
Allocation of scarce resources who are highly skilled is always a negotiation between the project manager and functional manager.
Negotiation
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Acquisition
Wherever the work cannot be accomplished with internal resources, external parties are engaged to provide these resources for completion of work.
Bringing variety of roles of professionals
working on the project ensures it is taken care for delivery of final product.
We need everyone. Not just SME’s alone.
Teams often comprise of people who are not directly working on the job location and they may be working from elsewhere to accomplish the project work.
Indeed the advancement in technology has ensured the major portions of work is being
delivered through virtual remote teams or locations.
Though Virtual Team concept provides multiple benefits in terms of cost, acquisition of specialized resources and access to quantity of resources.
Downsides being cultural differences, isolated team not understanding requirements, missing natural cohesiveness in the team. And intensive communications overhead.
Virtual Teams
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9.3 Develop Project Team
Inputs
•HR Management Plan
•Project Staff Assignments
•Resource Calendars
Tools & Techniques
•Interpersonal Skills
•Training
•Team Building Activities
•Ground Rules
•Colocation
•Recognition And Rewards
•Personnel Assessment Tools
Outputs
•Team Performance Assessments
•Enterprise Environmental Factors Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process Develop Project Team ensures that the performing project team is improved in terms of their capabilities, skills, knowledge and are motivated to perform at their peak levels.
Key Benefit of this process is it provides a motivated team staff to deliver project objectives inline with the expectations. This process
also reduces the staff turnover rate.
Fostering team work, Rewards and Recognition, Providing challenges and Opportunities are few of the key HR activities a project manager may need to perform to ensure the team is performing well.
Open communication, Building trust and transparency, managing conflicts in a constructive manner are few actions project manager can perform to ensure the high performance of the team.
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Resource Calendars indicates the availability of the
resources(HR, Material, Equipment) from when to when and
whether they are available for the project duration or activity
duration, including the availability in various geographical
location of the resource.
Resource Calendars aid to achieve further reliability in the
estimation since it is based on the understanding of the
resource availability, schedule constraints, time zone, work
hours, vacation, local holidays, other commitments and so on.
Additionally, in case of contracted resources, these resource
calendars may include the special pricing for any off peak
periods, which project manager may want to exploit.
Similarly, if there are resource groups, whether the quantity and
availability of resources expected is active on those particular
dates for execution. Resource preparedness levels and so on
can be further defined in resource calendars.
Resource Calendars
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Project Manager’s Interpersonal skills are very helpful to be applied across the course of the project to gain the desired outcomes from conversations and engagements with team.
Leadership
Project Manager may adopt different leadership hats depending on the situation/need.
Authoritarian (Close Supervision)
Paternalistic (Caretaker)
Democratic (Shared Decision Making)
Laissez-Faire (Delegate & Wash Hands) – Let them do
Transactional (Rewards & Punishments)
Transformational (Transform Followers Thinking)
The most important aspect which Project Manager should ensure is to showcase the vision of the project and inspire team to deliver / work towards it.
Influencing
Project manager is supposed to exert influence over the topic of interests and resources to achieve project objectives. How, when, Who, Why to influence depends.
Decision Making
Project Manager has to make critical decisions at various intersections of the project and how effectively these decisions are made and based on what assumptions or data decides on the decisions evolved.
Interpersonal Skills
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Interpersonal Skills
These are the behavioral aspects of how a team member interacts with
another or in a group dynamic. Interaction is at various levels including
communication, influencing, motivating, articulation and conflict resolution.
Having team members with superior interpersonal skills often results in
improved team bonding, cohesiveness and discovery of undiscovered work
tasks and objectives of the project.
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Team members supposed to perform the project activities should be
capable and skilled to ensure the proper and quality aspect of the delivery.
In most cases, any gaps in capabilities or skills, these are planned by
organized scheduled trainings. Though in some cases these gaps are
identified in later stages and may result in ad-hoc unplanned trainings.
Trainings may be formal or informal & individual or group & internal or
external event based on project need.
Training
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Teams working from remote
locations often do not get a
chance to interact in person and
may lead to communication-
misunderstanding-conflict gaps.
In order to ensure the teams work
as cohesive group and effectively
with none of the mentioned
symptoms, many a team building
activities could be facilitated.
Activities may include team
discussions, meetings, informal
lunches, get-togethers, organized
events and or professionally run
offsite events.
Team Development may go through
Tuckman Ladder’s five stages in either direction:
Team Building Activities
•Team formation by understanding individual roles and responsibilities
1. Forming
•Team starts working on deliverables with each other, any gaps between members arise conflicts
2. Storming
•Members start to trust each other and adjust behaviors to deliver the project objectives
3. Norming
•Teams start to work collaboratively and with interdependence for smooth and effective delivery
4. Performing
•Team starts completion of work effectively & moves on to next projects, end of project
5. Adjourning
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Ground Rules
In order to ensure all team members
share the same underlying behavior or
aspects towards project delivery, there
are certain ground rules which need to
be established, communicated and
published across the teams.
These are the anticipated behaviors
and values of team members
expected during the course of the
project delivery.
Examples include the Confidentiality of
the Information Sharing, Meeting Rules,
Dress Codes, Ethical Practices…
Moving all the project responsible
teams to sit in an closer locations such
that the face to face and interactions
are more frequent than wait and
watch interactions bring additional
efficiency to deliver the objectives
known as Collocation. Also known as
Tight Matrix.
Often the global distribution of teams
and spread across geographies, it may
be impractical to ensure collocation. In
such a situation based on the critical
timeframe of the project it may be
easier to have them collocated for
shorter durations.
Also, this model may be best suited
when there is a specific need to be
met and requires specialists to sit
together in a War room to achieve a
critical end objective.
Collocation
Hey! Stop
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A war room is a meeting room for the purpose
of strategizing and deployment of action
plans/measures on the specific intervals of
project to accomplish a quick
achievement/milestone.
Entire set of individuals responsible to deliver in
this achievement / milestone are available to
each other to answer questions,
discuss outstanding issues and respond with
swift actions.
In addition, they may discuss the resources
needed such as man power, the budget, the
timeline and possible challenges to be faced
and what can be done about the pitfalls
which may occur.
To aid the entire process, valuable visual
information such as budget, time table and
project information may also be made
available as charts in the war room.
War Room
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Recognition and Rewards
People working on the project need to
be continuously recognized and
rewarded for their best work towards
accomplishment of the Project work.
Recognition and rewards should be
planned at continuous intervals and
implemented to boost the team
morale.
Recognition for their good work and
providing them new growth
opportunities, challenges are the
intangible benefits which project
manager may plan well in advance.
Rewards may be monetary and non-
monetary and this can again be
planned upfront during the planning.
These tools assist project manager to
understand the aspirations of the
project team members, their
preferences and similar aspects.
Using this information project
management team can gain most by
aligning them in line with the project
objectives.
Personnel Assessment Tools
Assess
Analyze Act
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Implementation of various team development
activities ensure the team makes effective and
efficient progress.
At the same time it is natural to see which tools
have caused the major team performance
improvements and are assessed over a period of
time.
Ensuring the team performance is at the peak
levels increase the confidence levels of delivery of
the project objectives.
High performance teams are characterized by
meeting the project objectives (scope, time, cost,
quality).
Where ever the shortfalls are identified for
achieving the peak team performance levels,
relevant actions have to be defined by the
project management team and circulated to the
actionable owners.
Team Performance Assessments
Outstanding Exceeds Meets Improve Poor
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9.4 Manage Project Team
Inputs
•HR Management Plan
•Project Staff Assignments
•Team Performance Assessments
•Issue Log
•Work Performance Reports
•Organizational Process Assets
Tools & Techniques
•Observation And Conversation
•Project Performance Appraisals
•Conflict Management
•Interpersonal Skills
Outputs
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Enterprise Environmental Factors Updates
•Organizational Process Assets Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process It is the process of managing the
project team performance,
providing them required support &
feedback, and adopt suitable
team changes as required.
Key benefit of this process is that it
changes the team behavior,
manages conflict, resolve issues,
and provide performance
appraisals.
As part of the process it is evident
to provide continuous feedback for
better performance of team
members, recognize team for their
extraordinary work and keep the
momentum upbeat.
Formal Appraisals and Recognitions
for Challenging work performed
with the respective functional
managers is also critical to the
future success and performance of
the team members.
Project managers should ensure the
performance is documented and
recorded after formal discussions
with the team members
individually.
Team management involves
special skills such as Team
Leadership, Team Building, Team
Motivation, Team Communication,
Team Conflict Management and
Negotiation.
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Comparison of current work performance to the planned work performance gives
vital feedback to the forecasted work performance.
Based on the forecasted work performance, corrective and preventive actions for
the future course of action on the human resources could be planned for control.
Areas of work which may be compared include Schedule, Cost, Scope and Quality
aspects.
Work Performance Reports
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Observation and Conversation
Project Management Team has to have continuous observation of the work in progress and delivered by the team members.
In addition, to that having regular
conversations to discover the topics which may be harnessed for the benefit of the project delivery.
Project Team performance appraisals boost the team morale and increase the engagement of the team on the project.
Performance may be appraised on various factors and having positive and constructive
feedback increases the team members performance significantly.
Having team members formally appraised and providing them improvement plans ensure they adopt those and follow the course of the project in the desired manner
and behavior.
Project Performance Appraisals
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Conflicts arise due to many
reasons. Many or majority of the
conflicts in the Projects are due to
some of the key aspects of missing
elements. Such as:
New / Missing / Conflicting
Scope
On the team, major conflicts are due to the scope aspects
being not represented or
guided correctly in the
first place.
Unrealistic Schedule/
Sequencing
Many a times, the estimates become the actual plan
without being checked for the
actual reality. Also not so
correct sequencing of the activities
lead to conflicts in activities.
Project Priorities
When projects are not defined as per priorities,
it become evident that
stakeholders/project
manager/shared resources encounter
many ambiguities.
Unattainable Cost /
Mislead Procurements
Cost of activities especially
outsourced which have not been set right
expectations of performance
lead to unwanted
discussions and debates for
conflicts.
Personalities /Human
Resources
Project is a mix of team
members effort and
collaboration with each other with their own personalities based work
accomplished.
Why does Conflicts arise?
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It is natural to have
conflicts when people
work with each other,
have different view points
for the benefit of project.
How best, conflicts could
be managed and
reduced involve setting up
ground rules, effective
communication, clarity on
the project vision and best
practices adopted across
project.
Ensuring conflicts are
resolved builds trust and
engagement levels
among parties for further
collaboration +
commitment. Conflicts
may be resolved with
following techniques:
Withdraw / Avoid
•Avoiding the point of conflict ensures the conflict resolution takes least priority and it may/not actually resolve the conflict naturally over the course of period. Lose-Lose Situation.
Smooth / Accommodate
•In some cases, it may be beneficial to openly talk about the points agreed and some points which are not agreed. This builds transparency & gains others trust. At the same time, the issue itself is not addressed directly. Lose-Lose Situation.
Compromise / Reconcile
•Adjustments to the view points ensure both the parties needs are partially met and brings new comfort level for the work to proceed for desired results. However each party looses something. Lose-Lose Situation.
Conflict Management
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Force /
Direct
•Some view points are forced upon the other party to agree upon. ―Just listen to what I say‖. This is a win-lose situation.
Collaborate
/ Problem Solve
•Win-Win situation. Ensure each point of conflict is picked up and discussed in detail and why reasons so that both parties understand openly the view points and agree to the forward approach with consensus.
Conflict Management
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Chapter 9 - Debrief
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THIS BRINGS TO “HUMAN RESOURCE MANAGEMENT” COMPLETION.
From what we have understood so far is:
4 Human Resource Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 9
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Communications
Management
Chapter 10 90 % Time is spent here
by Project manager
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Chapter 10
Objectives
Understand the different Communications
Management Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Communication Management aspects required to ensure the desired information flows across the project team
and stakeholders.
Driving the project towards the desired outcome while getting the project communications across
to get the project work accomplished to make the project successful!
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It includes the processes to ensure project team and the stakeholders are
effectively engaging, interacting with the required information at right time
intervals based on which suitable actions/decisions can be taken towards
achieving project work deliverables.
Project Manager spends majority of the time in ensuring the
communications are flowing in the right manner with right information across
the project and rightly understood.
Knowledge Area: Communications Management
Talk, Listen, Understand, Ask!
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There are 3 Communications Management
processes, namely:
1. Plan Communications Management
Planning Effective Stakeholder and Team
communications by identification of the
communication needs and engaging them at the
desired levels of communication
2. Manage Communications
Managing Communications to ensure the
planned desired level of engagement and
communication is in place.
3. Control Communications
Controlling Communications across the project to
ensure the stakeholders communication
requirements are met with appropriate changes
incase of deficit communication or cut down
excess information flow.
Knowledge Area: Communications Management
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10.1 Plan Communications Management
Inputs
•Project Management Plan
•Stakeholder Register
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Communication Requirements Analysis
•Communication Technology
•Communication Models
•Communication Methods
•Meetings
Outputs
•Communications Management Plan
•Project Documents Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
This is the process of developing
an appropriate approach and
plan for communications across
the team and stakeholder
engagement with available
organizational assets.
Benefits include the identification
and approach to communicate
most effectively and efficiently
with stakeholders.
Consequences of the insufficient
messaging or wrong
interpretation of messages may
lead to misleading decisions or
wrongful actions, directing the
project towards a failure.
This allows appropriate resources
and information needs and
methods of distribution
accordingly to the intended
audience.
Planning Communications needs
to be revised over the duration of
the project & need continuous
asking of:
Who needs information?
What exactly do they need?
When and at what frequency do
they need it?
Why do they need it?
What will it be used for?
Who will be providing it?
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Identifying the Communication requirements of the
stakeholders and presenting the information to stakeholders is
the process known as communication requirements analysis.
Project manager should be aware of the possible
communication channels within the project.
Number of communication channels = 𝑛 (𝑛−1)
2 =
7 (6)
2 = 21
Number of conversations each person can have at any given
point in time = n-1 = 7-1 = 6
Communication Requirements Analysis
A B
D
E
F
G C
Web of People Communications
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Aids in the information
dissemination among project
stakeholders.
Technology used to
communicate differs widely
based on various aspects:
Urgency of the need of the
information.
Availability of Technology.
Ease of use.
Project environment.
Sensitivity and confidentiality
of information.
Encode
Decode
Decode
Encode
Noise
Transmit
Acknowledge
Feedback
Sender Receiver
Communication Technology Communication Models
Each project is unique and will
need to adopt the
communication model most
suitable to the need. Although,
the basic communication model remains the same as
below.
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Communication Methods again vary from project to project need. Although three possibilities of communication methods are:
Interactive Most Effective Method of Multidirectional communication.
Examples include Meetings, Phone Calls, Group Discussions, Instant chats, Video Conferencing
Push This is widely used for communication to relevant stakeholders. However, the disadvantages include whether the information is received, understood and
correctly interpreted at the receivers end.
Advantage includes to reach the mass stakeholders at a go with communication.
Examples include press release, memo’s, letters, emails, faxes etc.,
Pull This is used for large volumes of information for large volumes of audiences and intends to be pulled by the audiences at their discretion.
Examples include websites, portals, knowledge repositories, databases and so on.
Communication Methods
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Most Optimal Communication Method
Method of Communication Purpose
Formal Written
• Detailed Explanations • Non Face to Face
Communications
Formal Verbal
• Conferences • Meetings
Informal Written
• Quick Delegations • Actions and Steps
Informal Verbal
• Coffee Meetings • Lunch Setups • Team Building
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Communication Management Plan includes details about how
the communications will be planned, structured, monitored and
controlled.
It may include the following:
Stakeholder communication requirements /needs
Message, format, language and so on
Intent of the message,
Delivery time, type and frequency
Involved persons, intended persons, approving authority
Methods of communication and technologies adopted to
convey the information
Resources allocated to communication activities including
time and budget
Escalation processes identifying timeframe and management
chain for escalation of issues
Common terminology & definitions used in communications
Flow charts of the information flow in the project, workflows
with possible sequence of authorization, list of reports and
meeting plans
Communication constraints like organization policies,
regulations, voluntary disclosures, technologies adopted and
so on.
Communication Management Plan
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10.2 Manage Communications
Inputs
•Communications Management Plan
•Work Performance Reports
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Communication Technology
•Communication Models
•Communication Methods
•Information Management Systems
•Performance Reporting
Outputs
•Project Communications
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process It is the process of managing the project team communications based on the information which include create, publish, distribute, engage, record, retrieve, and
finally purge.
Key benefit of this process is how, why, when, who, which communication has to happen between project team and stakeholders is
arrived.
Suitable techniques are employed to make communications effective as:
Sender-Receiver Models
Choice of Media
Writing Style & Formats
Meeting Management
Event Organizing
Presentation Techniques
Facilitation & Supporting
Attentive Listening
Communication Channels
Established Escalation Paths
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Information in the project may be in various formats and representations. It may be communication in various styles and approaches.
Variety of tools which are used to deliver such information and enable communication are:
Information Management Systems
• Manuals, Letters, Memos, Journals, Reports, Press releases
Physical Documentation
(Hard Copies)
• Web Portals, Email, Faxes, Voice Mail, Conferencing, Online Journals, E-News
Electronic Documentation
(Soft Copies)
• Web based interactive tools, Standalone Project Management applications, Collaborative work interaction tools
Electronic
Project Management Tools
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Managing project is all about right
communication with right audience at
the right time.
Predominantly project managers spend
majority of their time ensuring the
communications are correct and
correctly understood by the team and
the stakeholders.
Communications itself vary based on
various parameters such as the need for
information:
who is requesting
who has to know
why is it needed
when do they need and
importantly
how it has to be communicated so
that it is understood in entirety and
context by receiver.
Project Communications
Communicate
Thinking
Listening
Speaking
Non-Verbal
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10.3 Control Communications
Inputs
•Project Management Plan
•Project Communications
•Issue Log
•Work Performance Data
•Organizational Process Assets
Tools & Techniques
•Information Management Systems
•Expert Judgment
•Meetings
Outputs
•Work Performance Information
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is the process of controlling communications across
project to ensure all project stakeholders and team are
met on continuous mode.
Key benefit includes the effective communications
between the project team and stakeholders. To engage
with each other and to understand the required
information, process it and get the desired results towards
the project objectives.
This process ensures the right message is delivered to the
right audience at right time and understood to be
processed in desired manner.
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Chapter 10 - Debrief
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THIS BRINGS TO “COMMUNICATIONS MANAGEMENT” COMPLETION.
From what we have understood so far is:
3 Communications Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 10
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Risk Management
Chapter 11
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Chapter 11
Objectives
Understand the different Risk Management
Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Risk Management aspects required to identify, remove and harness threats or opportunities.
Driving the project towards the desired outcome while the project progresses with minimal impact to the project objectives being
accomplished to make the project successful!
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It includes the processes to ensure the project risks are
identified, analyzed, acted, planned with responses and
controlled for minimal impact on project objectives.
Project Risks can be broadly categorized based on the
level of knowledge we have upon them.
Known Risks. The risks which are identified and are aware to the project management team.
Unknown Risks. The risks which are not yet identified & might occur instantaneously without prior
knowledge.
Risks should be perceived as:
Overall Project Risk. This is the holistic risk of the project itself considering all individual project risks
along with any other unknown risks beyond the
project control.
Individual Project Risks. Risks which can standalone or in a category group well within reach of the
project which impact partially or a complete project
objective set.
Knowledge Area: Risk Management
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There are 6 Risk Management processes, namely:
1. Plan Risk Management
Process of ensuring the Risk management is planned in detailed manner which can be
applied over the course of the project.
2. Identify Risks
Identification of Risks over the Course of the Project and documentation of their characteristics.
3. Perform Qualitative Risk Analysis
Performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives.
4. Perform Quantitative Risk Analysis
Measuring the probability and consequences of risks and estimating their implications for project objectives.
5. Plan Risk Responses
Once Risks are prioritized and weighted, each of risks are provided a response plan (Avoid, Transfer, Mitigate, Accept for Negative Risks and Exploit, Enhance, Share,
Accept for Positive Risks)
6. Control Risks
Controlling Risks over the duration of the project to the benefit of the project objectives.
Knowledge Area: Risk Management
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Risk responses by Stakeholders
/Organizations depend on:
Risk Appetite. Degree of Risk which will be taken up in order to gain a
reward. Variations are measured
over course of the project in LCL
(Lower Control Limit) & UCL(Upper
Control Limit) to understand the
stakeholder risk appetite levels.
Risk Tolerance Levels. Degree of Risk which will be entertained
beyond which the attention is
required.
Risk Threshold Levels. Extreme Levels of Risk either on lower side or
upper side. Crossing the lower side,
the Risk is absolutely negligible and
crossing the upper side, the Risk will
not be tolerated any further.
Knowledge Area: Risk Management
Total Cost to Sponsor/Stakeholder
{ Pro
ject
C
ost
{ Contingency Reserve
Actual Work Cost
{
{ Man
agem
ent
Res
erve
Tolerance Level
Threshold Level
Appetite
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11.1 Plan Risk Management
Inputs
•Project Management Plan
•Project Charter
•Stakeholder Register
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Analytical Techniques
•Expert Judgment
•Meetings
Outputs
•Risk Management Plan
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Risks are uncertain events which may trigger positive or negative impact on the project outcome. Planning risk management involves end to end management of risks involved in the project.
Key benefit of this process ensures the degree, type and visibility of risks are given right and required risk ratings.
Risks in the project have to be dealt with due diligence and with complete understanding of the same from all the stakeholders. Risk management starts much before the project is actually conceived.
Identified risks are then in the later stages managed to be
minimized, exploited and if not planned for contingencies. Risks are regularly revisited and reviewed over the duration of the project.
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Analytical Techniques help understand the holistic view of the Risks
on the project.
One mechanism beneficial to diagnose and understand the
tolerance and risk appetite levels of the decision
makers/stakeholders.
This definitely helps understand the amount of risks which can be
handled and which need to be pitched as immediate escalation
points on the project.
Analytical Techniques
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This plan defines how the risk activities will be performed on the project. It may include the following:
Methodology
Defined approach along with the tools to perform Risk management
Roles and responsibilities
Defines risk management resources roles & responsibilities
Budgeting
Helps estimate budget to ensure the required reserves are defined
Timing
Time when the information has to be conveyed
Risk categories
Risks may be categorized into multiple categories based on the project being performed. They may be grouped based on various approaches.
RBS(Risk Breakdown Structure) helps identify risks from multiple sources identified in risk identification exercise and categorize them in a structured manner for ease of addressing them.
Risk Management Plan
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Definitions of Risk Probability and Impact: Define the probability and impact definitions that will be used in the project. Sample Impact Definition Table is shown here.
Probability and Impact Matrix
Risk Management Plan
Very Low 0.10
Low 0.25
Moderate 0.50
High 0.75
Very High 0.90
Scope Insignificant
Changes Changes Moderate Changes Major Changes
Major Significant Changes
Time <5% Increased
Timeline <25% Increased
Timeline 25-50% Increased
Timeline 50-70% Increased
Timeline >70% Increased
Timeline
Cost <5% Increased
Project Cost <25% Increased
Project Cost 25-50% Increased
Project Cost 50-70% Increased
Project Cost >70% Increased
Project Cost
Quality Quality Changes Not
Significant Quality May Need
To Be Improved Sponsor Needs To
Approve The Quality
Product Quality Is Not Acceptable To
Sponsor
End Product Quality Is Useless
Very Likely
Most Likely
Likely
Chance
of Likely
Unlikely
Probability
/Impact Very Low Low Moderate High Very High
Revised Stakeholders’ Tolerances
Continuous revision of stakeholders
tolerances based on their risk appetite
over project duration.
Reporting Formats
Define the report formats which include
the manner, risks will be documented,
formatted, communicated to which
stakeholder group.
Tracking
Risk Tracking is very important as the
risks continuously evolve from one
quadrant to another. Recording of their
risk movements is equally important
from the Risk Auditing perspective.
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11.2 Identify Risks
Inputs
•Risk, Cost, Schedule, Quality, HR Management Plan
•Scope Baseline
•Activity Cost Estimates
•Activity Duration Estimates
•Stakeholder Register
•Project Documents
•Procurement Documents
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Documentation Reviews
•Information Gathering Techniques
•Checklist Analysis
•Assumptions Analysis
•Diagramming Techniques
•SWOT Analysis
•Expert Judgment
Outputs
•Risk Register
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Risks are uncertain events and identification of them early leads us to better preparation with suitable action plans.
Documentation of the identified risks with their characteristics helps us be prepared in likely or unlikely situation of the Risk occurrence.
Documentation of the risks in a consistent manner will provide sufficient detail so as to compare them with each other and suitable associated action response plan be derived.
This process of identification of risks is iterative and has to be performed across the intervals of the project duration.
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Risk Register is a document which records the Risk Analysis
and Risk Response Planning. This document evolves as the
project progresses and is a live document.
Risk Register provides input about the Risk events to impact
resource selection and availability during the Estimate
Activity Resources leading to more finer estimates.
List of Identified Risks:
Identified risks are detailed as much possible including
the root cause.
Risk statements may be used in conjunction to triggers
such as Event->Impact and/or Event -> Effect.
List of Potential Responses:
During the identification of the risks, there may be
situations where in the risk response is readily known.
These potential responses should be recorded.
While the project progresses, the risks registered are
continuously reviewed for triggers and/or risk responses.
Risk Register
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Documentation Reviews
A detailed study or review of the
various project documents may help
indicate and identify the risks in the
project.
Various documents which may be
subjected to review, but not limited to:
Plan Documents
Assumptions
Previous Project Documents
Legal Documents
Compliance Considerations
Organizational Policies
Databases
Historical Plans
Information may be gathered in
various formats:
Brainstorming
Delphi Technique
Interviewing
Root Cause Analysis
Information Gathering Techniques
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Checklist Analysis
Risk Identification Checklists may be evolved over a period of time in any organization which become a ready reckoner for identification of risks.
However, proper care should be taken to explore risks beyond the Checklist itself as this
may not be comprehensive to every project running in the organization.
Every project is conceived based on certain assumptions, scenarios and possible postulate.
Each one of these need to be evaluated and understood in the context of the project
in progress.
Assumption Analysis
Certain
Un Certain
Lea
st Im
po
rta
nt
Mo
st Im
po
rta
nt
Critical
Region
A A A
A A
A
A
A
A
A
A
A
A
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Diagramming Techniques
Diagramming techniques involve the usage of the diagramming methods based on which the risks can be identified.
Such as:
Ishikawa’s Fish Bone Diagram
System or Process Flow Charts
Influence Diagrams – Helps to identify the decision tree. As shown below.
Strengths, Weakness, Opportunities, Threats Analysis in short is known as SWOT analysis.
Analysis of the Project is performed to diagnose the Strengths, Weakness, Opportunities, Threats.
This is first done in a manner to identify Strengths and Weakness. Then based on Strengths, opportunities are further explored. Similarly based on weakness, threats are further explored.
SWOT Analysis
Strengths - Strong Brand Awareness among Customers
Weakness - Low Funds for Expansion
Opportunities - Build Partnerships - Increase
Investments
Threats - Increased Competition & Marketing Spends
Fund Research
Market Value
Launch Product
Research Success
Market Success
Influence Diagram
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11.3 Perform Qualitative Risk Analysis
Inputs
•Risk Management Plan
•Scope Baseline
•Risk Register
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Risk Probability And Impact Assessment
•Probability And Impact Matrix
•Risk Data Quality Assessment
•Risk Categorization
•Risk Urgency Assessment
•Expert Judgment
Outputs
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives.
Key benefit of this process is to ensure the specialized focus is on the high quality risks.
This is done through out the project duration and will cause re-assessment of certain risks as the project evolves.
In order to ensure there is no influence or bias on the assessment, the probability and impact definitions are defined upfront.
This also helps in establishing ―perform quantitative risk analysis‖.
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Risk Probability Assessment investigates the likelihood that each specific risk will occur.
Risk Impact Assessment investigates the impact on the outcome of the project on Scope, Time, Cost, Quality parameters
should the risk occur.
Each risk is analyzed for both probability and impact assessment. Risk probabilities and impacts are rated based on the definitions in the Risk Management Plan.
All risks are rated based on their assessed probability and impact as defined in the matrix.
Each of the risks are color coded and accordingly paid attention. The Risks which
are more darker in color lead to more attention from the project management team.
Probability ↓ Threats (Negative Risks) Opportunities (Positive Risks)
0.90 .0090 .2250 .4500 .6750 .8100 .8100 .6750 .4500 .2250 .0090
0.75 .0075 .1875 .3750 .5625 .6750 .6750 .5625 .3750 .1875 .0075
0.50 .0050 .1250 .2500 .3750 .4500 .4500 .3750 .2500 .1250 .0050
0.25 .0025 .0625 .1250 .1875 .2250 .2250 .1875 .1250 .0625 .0025
0.10 .0010 .0250 .0500 .0750 .0900 .0900 .0750 .0500 .0250 .0010
Impact
→
Very Low
0.10
Low
0.25
Moderate
0.50
High
0.75
Very High
0.90
Very High
0.90
High
0.75
Moderate
0.50
Low
0.25
Very Low
0.10
Risk Probability & Impact Assessment
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A detailed study of the supplementary
data for each risk helps ensure each
risk is paid rightful attention.
This involves the degree of examination
of the data about the risk is known and
understood.
Parameters based on which the data
quality assessment is performed usually
involves accuracy, quality, reliability
and integrity of the data about the risk.
Risks may be categorized based on the:
Sources of Risk Identified
Which affect a particular project area
Common root causes
Common actions or solutions adopted
for risks and so on..
Risk Data Quality Assessment Risk Categorization
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Risks which need immediate attention from the perspective of time
criticality are required to be acted upon quickly.
Based on the time criticality, the risk priorities define the Risk Rank Ratings.
Risk Urgency Assessment
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11.4 Perform Quantitative Risk Analysis
Inputs
• Risk, Cost, Schedule Management Plan
• Risk Register
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Data Gathering and Representation Techniques
• Quantitative Risk Analysis and Modeling Techniques
• Expert Judgment
Outputs
• Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
Key benefit is to measure the probability and
consequences of risks and estimating their implications for
project objectives.
Helps in reducing the project uncertainty by performing
the quantitative risk analysis.
It is mostly used to evaluate the aggregate effect of all
risks affecting the project.
Performing this process requires budget and involves cost.
This Cost benefit should be evaluated before this process
can be exercised.
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Commonly used approaches involve:
1. Sensitivity Analysis
2. Expected Monetary Value analysis
3. Modeling and Simulation
Quantitative Risk Analysis and Modeling Techniques
1. Sensitivity Analysis
This analysis helps identify
the most potential impact
on the project. A sample
Tornado Diagram shows
how it is performed.
-3000 -2000 -1000 0 1000 2000 3000 4000 5000 6000
Risk 5
Risk 4
Risk 3
Risk 2
Risk 1
Inverted Tornado Diagram
Negative Impact Positive Impact
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Quantitative Risk Analysis and Modeling Techniques
2. Expected Monetary Value(EMV)
Highest EMV wins.
This type of analysis provides the future possible income or outgo values
based on the statistical probability and impact values.
Risk A
Risk C 80% likely
Risk B 20% likely
Outcome1
70% likely
Outcome2
10% likely
Outcome3
20% likely
INR 100 Lakh Implication
INR 35 Lakh Implication
INR 65 Lakh Implication
INR 100 Lakh Implication
INR 30 Lakh Implication
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What is your Investment decision based on Risk?
New Product or
Maintain?
New Product Development
Investment
$60M
Maintain Product
Investment
$30M
Strong Sales
Revenue: $150M
Weak Sales
Revenue : $70M
Strong Sales
Revenue : $80M
Weak Sales
Revenue : $20M
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What is your Investment decision based on Risk?
New Product or
Maintain?
New Product Development
Investment
$60M
Maintain Product
Investment
$30M
Strong Sales
Revenue : $150M
Weak Sales
Revenue : $70M
Strong Sales
Revenue : $80M
Weak Sales
Revenue : $20M
150-60 = $90M
70-60 = $10M
80-30 = $50M
20-30 = -$10M
70% Chance
30% Chance
70% Chance
30% Chance
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Investment decision is based on lowest risk
(eliminating -10M) as well as based on highest EMV(66M)
New Product or
Maintain?
New Product Development
Investment
$60M
Maintain Product
Investment
$30M
Strong Sales
Revenue : $150M
Weak Sales
Revenue : $70M
Strong Sales
Revenue : $80M
Weak Sales
Revenue : $20M
150-60 = $90M
70-60 = $10M
80-30 = $50M
20-30 = -$10M
EMV of New Product = 70% * 90 + 30% * 10 =
63 + 3 = $66M
70% Chance
30% Chance
70% Chance
30% Chance
EMV of Maintain = 70% * 50 + 30% * -10 =
35 + (-10) = $25M
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Quantitative Risk Analysis and Modeling Techniques
3. Modeling and Simulation
This type of analysis is performed when the actual cost of performing activities may have multiple variables and could cost immensely to
actually perform feasibility in reality.
Monte Carlo Simulation provides unique multiple iterations of outcomes based on the predefined trigger values and parameters using which these simulations are performed statistically using a computing machine.
Example: Simply treat it as a task repeated over many times with different variables over a project schedule network. What will be the output? Will it vary every time? Yes. Though repetitions of the task many times will give us a
precise range of how many days +/- it would take to accomplish that.
That is how the Simulations would help you come up with almost certain range of all. This includes the probability of the risks on the Project as well.
Benefits of such Monte Carlo or any other simulation includes:
- Almost precise calculations considering many parameters for Cost estimates,
Schedule estimates, Overall risk and so on.
- Since it includes path convergence for the schedule network, the complexity of every task is accounted, which brings more stability in estimates.
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Monte Carlo Simulation
Explained
Project or
Investment Decision
Risk of Investment 40,000 People, 2B$ Cost, 800 Machines 5 Years Project
Risk of Investment 20,000 People, 3B$ Cost, 600 Machines 10 Years Project
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Definitive Range of Years based on Multiple Risk Based Scenarios
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11.5 Plan Risk Responses
Inputs
• Risk Management Plan
• Risk Register
Tools & Techniques
• Strategies For Negative Risks Or Threats
• Strategies For Positive Risks Or Opportunities
• Contingent Response Strategies
• Expert Judgment
Outputs
• Project Management Plan Updates
• Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
This is one of the most important Risk Management processes as we step into the effective actions and evaluate options of how to address these prioritized risks.
Key benefits of this includes the allocation of budget, resources and schedule for the identified and actionable risks.
From the multiple options available to response for each risk it is imperative to understand which option/response will be most appropriate in the context of the project limits.
Risks include both threats and opportunities for which the responses can be developed and initiated for action.
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Negative Risks or Threats can be acted with response in following manner:
1. Avoid
2. Transfer
3. Mitigate
4. Accept (Applicable for both Negative Threat &
Positive Opportunity)
Avoid
Where possible it is always recommended to
ensure the critical risks are completely avoided either by eliminating the threat or by ensuring the project is shielded completely from the impact of the threat.
Most radical extreme step to avoid risk would be to shutdown the project itself.
Transfer
Transfer of risk to a third party for a price ensures the risk even if it occurs minimizes the impact on the project, since it is offset with the third party.
Risks which are transferred to a third party
involves risks with major cost implication to project.
Transfer of the risk, does not eliminate risk itself, it just transfers the ownership to a third party.
Mitigate
Project team acts to minimize the impact &
probability of the risk over a period of time to ensure the risk is brought to minimal state or completely eliminated.
Accept
Team acknowledges the risk and waits until the risk occurs to respond on it.
Active Acceptance – Build a contingency reserve to ensure when the risk occurs it is
readily acted with the contingency (time, cost,
scope, quality).
Passive Acceptance – It is documented and
then awaited until risk occurs, so that further
action can be taken up.
Strategies For Negative Risks Or Threats
Critical Risks with High
Impact
Less Critical Risks with Low
Impact
Avoid Good Strategy
Mitigate Good Strategy
Transfer Good Strategy
Accept Good Strategy
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Positive Risk Example: A potential delay in the delivery of materials which happened to be delivered ahead of time. This risk is now an opportunity to check on the schedule what work can be done already in advance given the availability of materials.
Positive Risks or Opportunities can be acted with response in following manner listed below.
1. Exploit
2. Enhance
3. Share
4. Accept (Passive Acceptance Only)
Exploit
When there are risks which can be beneficial to the organization, it is natural that these risks are driven towards ensuring Risk occurs.
Enhance
When you want to increase the probability or likely chances to ensure the risk occurs by maximizing the possibilities of risk occurrence.
Share
Sharing of the risk to third party for maximum throughput when we make the risk occur to maximize risk out come.
Accept
Accepting the risk to harness the opportunity when the risk actually arises on its own and not actively pursuing.
Strategies for Positive Risks or Opportunities
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Some of the responses are planned only when the risks will occur such as in Accept – Active Acceptance.
In such a response planning, a contingent reserve or a fall back plan is established so as to respond appropriately upon the occurrence of such a risk.
There is no substitute to experience when it comes to Contingent Response Strategies – Expert Judgment stays on top of the list strategy.
While many project managers simply prefer to have a transfer of risks when they occur, rather than manage in practice.
Contingent Response Strategies
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11.6 Control Risks
Inputs
•Project Management Plan
•Risk Register
•Work Performance Data
•Work Performance Reports
Tools & Techniques
•Risk Reassessment
•Risk Audits
•Variance and Trend Analysis
•Technical Performance Measurement
•Reserve Analysis
•Meetings
Outputs
•Work Performance Information
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is the process of controlling risks during the project by
monitoring existing risks, their response plans, risk
movements, identification of new risks, elimination of
outdated risks to ensure the project objectives are least
harmed or nil impact due to risks.
Key benefit includes the effective Risk management and
its minimized or nullified risk impact on the project
objectives.
This process also ensure the planned risk management
processes are being followed during the course of the
project and any further improvements to the risk
processes are adopted.
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Risk Reassessment
It is a continuous process through out Project life cycle and performed across all Process Groups.
Risk Reassessments should be carried out frequently to perform the new risk identification, re-planning the risk responses, close the outdated risks.
Based on the project size and the organizational practice, the project management team and/or specialized risk management team reassess the risks at frequent intervals.
Identify
Observe
Regulate Close
Re-Assess
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More Tools & Techniques
Variance & Trend Analysis
Performance baselines defined
in the project should be
constantly monitored for any
variances.
Also based on the trend
analysis of baseline
performance, suitable actions
should be planned, including
further risk identification and
actions in the Project.
Technical Performance Measurement
Technical performance of the Project is usually measured based on the type of project we execute.
Suppose in a software project, we would be interested in the Technical performance of Planned Flawless Modules against Actual Modules with Flaws.
Suppose in a construction project, we would be interested in the Technical performance based on planned bricks with weight of 2 KG versus actual weight being 2.4 KG.
Measuring such Technical performance gives an indication of the success chances of Project.
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Chapter 11 - Debrief
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THIS BRINGS TO “RISK MANAGEMENT” COMPLETION.
From what we have understood so far is:
6 Risk Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 11
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Procurement
Management
Chapter 12
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Chapter 12
Objectives
Understand the different Procurement
Management Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Procurement aspects required to ensure the required resources or nature of material or labor or any other is
acquired so that the Project can meet its objectives.
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It includes the processes to ensure identification, acquiring and deploying services of a seller to meet the needs of buyer’s project.
Usually the seller is recognized as an external party other than the performing project team. This may include your internal different LOB (Lines of Business) treated as a separate legal entity or external organization.
Both the buyer and seller are bonded legally with a contract document serving as the point of reference for work to be accomplished and payments released. This contract document may be simple or as complex as it can be based on project needs and legal involvement.
A mega project may involve multiple sellers being contracted to procure various services for the
needs of the mega project. Managing these many sellers on their individual contracts need a specialized team in procurement and is normally a part of the administrative or financial function in organizations, however, project teams may also be employed to administer as well.
Seller goes through a change of status in the procurement cycle.
Knowledge Area: Procurement Management
Prospective Seller/Bidder
Selected Bidder
Contracted Seller
Future Seller
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There are 4 Procurement Management processes, namely:
1. Plan Procurement Management
It is the process of planning the identification of Sellers, how the contract will be awarded, and how the project will be executed.
2. Conduct Procurements
Process of conducting the procurement which includes circulating proposals, obtaining seller responses, selection & award of the contract to a particular seller.
3. Control Procurement
Controlling Procurements involve the management of executing the awarded contract on the parameters defined during the contract award. Validation of the work being performed as the criteria to release the payments.
4. Close Procurement
Formally closing the validated work and ensuring Seller is released upon completion of the work or formal termination of contract with Seller upon dissatisfactory work as per the contract agreement. Application of recommended penal clauses upon the deviations/termination of work.
Knowledge Area: Procurement Management
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12.1 Plan Procurement Management
Inputs
•Project Management Plan
•Requirement Documentation
•Risk Register
•Activity Resource Requirements
•Project Schedule
•Activity Cost Estimates
•Stakeholder Register
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Make-or-buy Analysis
•Expert Judgment
•Market Research
•Meetings
Outputs
•Procurement Management Plan
•Procurement Statement Of Work
•Procurement Documents
•Source Selection Criteria
•Make-or-buy Decisions
•Change Requests
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
This is the process to identify the Sellers, detail the approach to define the
criteria and evaluate whether to make it internally or go for an external
procurement.
Key benefit is that it determines if need to acquire an external support, what
to acquire, how to acquire spending how much and when would be the
appropriate period of acquire.
When an external product/service is acquired, each such product/service
will go through Plan Procurement till Close Procurement processes.
Any relevant IP(Intellectual Property) arising - who owns this, any legal or
regulatory compliance and such detail of risks also need to be considered
before the procurement is awarded to a seller.
Buyer needs to ensure the details are granular to safeguard mutual interests
and maximize benefits for both for best outcome.
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Organizational Process Assets
Contractual Relationships
Majority of the companies with
descent size, scale and maturity
have a separate legal and
procurement team to ensure the
procurements are done in a legal,
ethical practiced manner to
avoid any wrong-doings during
the procurement process.
Wherein such specialized teams
are not available in the
companies, project management
team has to supplement this
function with their expertise.
Different types of Contracts may
be clubbed for better
performance and the nature of
work to be accomplished.
Contracts awarded are bonded
by the legal agreements where in
the approach (contractual
relationship) could be defined as
follows:
Fixed Price Contracts
FFP (Firm Fixed Price)
FPIF (Fixed Price Incentive Fee)
FP EPA (Fixed Price Economic
Price Adjustment)
Cost Reimbursable Contracts
CPFF (Cost Plus Fixed Fee)
CPIF (Cost Plus Incentive Fee)
CPAF (Cost Plus Award Fee)
Time & Material Contracts
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Organizational Process Assets Contractual Relationships
Fixed Price Contracts for Standard Products
In order to provide a fixed price
contract the buyer has to perform
due-diligence and define the scope of
work to be done.
Sellers are subject to penalties or legal
implications wherein the contractual
terms are not met which may include
the scope, timeline, cost involved for
awarded project execution.
Any further change of scope by the
buyer may be accommodated
generally adopted with price changes
to the original contract.
FFP (Firm Fixed Price)
(Most commonly preferred)
Fixed Scope with Fixed Price and
Predefined Performance.
FPIF (Fixed price Incentive Fee)
(Most beneficial for both buyer
and seller)
Fixed Scope with Fixed Price +
Incentives for achieving
performance at different levels
FP EPA (Fixed Price Economic Price Adjustment)
Used when there are projects
running over several years. And
there is a need to protect both
buyer and seller from the external
inflation related costs.
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Organizational Process Assets Contractual Relationships
Fixed Price Contracts for Standard Products
FFP (Firm Fixed Price) – Price of the Product is fixed
by the Buyer to create competition amongst
vendors.
Example:
As a Training Institute, I would want to procure
10000 bottles of water. Regular Price of Bottle is
INR20. Since I buy in bulk I don’t want to pay
full price and think let me create competition
among vendors. So I fix the buy price at INR15.
Any Vendor who wants to supply me the
bottles at INR15, can bid and provide me the
delivery for 10000 bottles.
Ready to Pay INR 15 instead of MRP 20
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Organizational Process Assets Contractual Relationships
Fixed Price Contracts for Standard Products
FPIF (Fixed Price Incentive Fee) – Price of the Product is fixed by Buyer & also Buyer is ready to pay Incentives
extra if vendor meets extra objective.
Example:
As a Training Institute, I would want to procure 10000
bottles of water. Regular Price of Bottle is INR20.
Since I buy in bulk I don’t want to pay full price and
think let me create competition among vendors. So I
fix the buy price at INR15.
Additionally, am looking to procure the bottles in 2
days instead of waiting for a standard delivery time
of 15 days. For this objective, am ready to pay
incentive of INR2 per bottle on top of Fixed Price.
Any Vendor who wants to supply me the bottles at
INR15, can bid and provide me the delivery for 10000
bottles. However, if vendor supplies me bottles in 2
days instead of 15 days, I will pay per bottle
delivered 15+2=17 per bottle.
Ready to Pay INR 15+2incentives = 17 for 2 day delivery of bottle
instead of MRP 20
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Organizational Process Assets Contractual Relationships
Fixed Price Contracts for Standard Products
FP EPA (Fixed Price Economic Price Adjustment)
Scenario 1 – Product Inflation Cost
MRP(Max. Retail Price) of the bottle is INR 20, we agreed to
pay INR 15 per bottle.
In case the MRP of the bottle become INR25 from INR20. We
would need to proportionately adjust per bottle price to at
least INR21 so that vendor does not go under loss.
Scenario 2 – Currency Fluctuation
MRP(Max. Retail Price) of the bottle is INR 20, however,
when drafting contract we agreed to pay in USD,
considering today 1USD=INR65.
The currency itself will fluctuate though due to economy.
After 2 weeks, we would need to adjust accordingly the
pay in USD or INR so that the currency fluctuation delta is
adjusted.
Today 1 USD = INR 65
Tomorrow 1 USD ~ INR 90 or
1 USD ~ INR 40
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Organizational Process Assets Contractual Relationships
Cost Reimbursable Contracts for Custom Products
Costs incurred on the project work
along with the Seller profit are
reimbursed as part of the Cost
Reimbursable Contracts.
Usually these type of contracts are
awarded when the work cannot be
defined completely upfront and the
understanding of risks involved is at
preliminary stages.
CPFF (Cost Plus Fixed Fee)
Project Cost plus the Fixed fee(% of
Total Project Cost) is reimbursed upon
completion of the prescribed scope of
work. Performance may/may not be
up to the mark.
CPIF (Cost Plus Incentive Fee)
Project Cost plus the Additional
Financial Incentives for achievement
of scope of work. Different grades of
quality may lead to different levels of
payments and hence motivates seller
financially to deliver the most possible
superior project quality.
CPAF (Cost Plus Award Fee)
Project Cost is reimbursed however the
final award fee is subject to the
buyer’s consent that the project has
met the objectives stated. Unless the
objectives are not met, the buyer may
hold the payments to seller and no
appeals are entertained.
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Organizational Process Assets Contractual Relationships
Cost Reimbursable Contracts for Custom Products
CPFF (Cost Plus Fixed Fee)
Cost of material to build the Ship is
reimbursed on actuals along with the
Fixed fee for the Ship builder.
Suppose material cost of the cruise
ship is $100M, this is reimbursed on
actuals.
In addition, we pay the cruise ship
builder an agreed amount of $20M for
his expertise and work performed.
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Organizational Process Assets Contractual Relationships
Cost Reimbursable Contracts for Custom Products
CPIF (Cost Plus Incentive Fee also known as Cost Plus Fixed Fee Plus Incentive Fee)
Cost of material to build Ship is
reimbursed on actuals and with Fixed
fee for Ship builder and with Incentives
for any extra objectives.
Suppose material cost of the cruise
ship is $100M, this is reimbursed on
actuals.
In addition, we pay the cruise ship
builder an agreed amount of $20M for
his expertise and work performed.
Also, vendor built the ship in 2 months
instead of 6 months upon our need.
For this we agreed to pay incentives of
$75M extra.
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Organizational Process Assets Contractual Relationships
Cost Reimbursable Contracts for Custom Products
CPAF (Cost Plus Award Fee also known as Cost Plus Fixed Fee Plus Award Fee)
Cost of material to build Ship is
reimbursed on actuals and with Fixed
fee for Ship builder.
Suppose material cost of the cruise
ship is $100M, this is reimbursed on
actuals.
In addition, we pay the cruise ship
builder an agreed amount of $20M for
his expertise and work performed.
Also, vendor has built excellent quality
of Ship, we are so impressed that we
want to order 2 more ships from the
Vendor. This is an award/bonus.
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Organizational Process Assets Contractual Relationships
Time & Material Contracts for Leased Products/Staff
The fixed price per unit of labor,
resource or material is applied.
Per unit cost includes seller profit
margins and hence seller would like
these type of contracts to run for a
longer duration of time.
It is up to the buyer to ensure the
resources are rightfully engaged and
the end objectives are met.
Nature of contracts are open ended
since the precise scope of the work to
be accomplished is not defined
completely upfront.
This contract type is very helpful to
acquire unique skills or particular
resources on a project to be
engaged.
Example:
1 Resource per day billing is $ 45.
Should we use the resource for 100
days, we pay 45*100 = $ 4500.
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Risk Sharing in Different
Contract Types between
Buyer and Seller
Buyer is someone who wants to buy Services, Products,
Solutions and so on. The
party actually looking to
procure items for their
Project work
accomplishment.
Seller is someone who wants to sell goods, do work,
provide equipment or
services so that the other
party can accomplish their
work typically.
Contract Involved Risk Owned by
Fixed Price Contracts
• Firm Fixed Price Seller Alone
• Fixed Price Incentive Seller & Buyer
• Fixed Price Economic Price Adjustment
Seller Alone
Cost Reimbursable Contracts
• Cost Plus Fixed Fee Buyer
• Cost Plus Incentive Fee
Seller & Buyer
• Cost Plus Award Buyer
Time & Material Contracts
Buyer
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Make or Buy analysis is usually performed to analyze should the work be done internally or externally.
In some cases though expertise lies in the organization, it may not be rightful to consider to be done it in house may be due to:
Excessive cost implications
Externally available cost effective deliveries
Internal resources tied to other projects and so on..
Whenever the Buy option is thought through, along with the buy, the option of lease is also first considered.
Make-or-Buy Analysis
13.5 Lakh EMV or -3 Lakh EMV Pick always the highest EMV. So the decision to choose the Buy.
Make or Buy Decision
Buy 80% likely
Make 20% likely
Outcome1
INR65 Lakh 70% likely
Outcome2
INR120 Lakh 10% likely
Outcome3
INR30 Lakh 20% likely
INR 50 Lakh Anticipated Cost
INR 35 Lakh Anticipated Cost
65 - 50 = 15
120-50 = 70
30-50 = -20
10.5 + 7 – 4 = 13.5 Lakh EMV
2 + 3 - 8 = -3 Lakh EMV
EMV (Expected Monetary
Value) Technique along with the
decision tree helps decide on
the Make or Buy decisions.
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Market Research
Market Research aids in the
early exploration of the
feasibility of stepping into
technologies or new products
or unique services. Information is
gathered via events, meetings,
conferences, online reviews
and so on.
Risks associated with such
procurement planning of latest
and/or new technology,
product or service need to be
balanced so that the outcome
should be advantageous.
Acknowledged. Source: http://www.powerdecisions.com
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Procurement management plan defines how the external services will be acquired and
engaged over the course of the project duration. It may include the following:
Types of contracts and awards applicable for project
Identified Risks and Implications
Estimates based on granular scope of outright scope
Procedures and Organizational Policies to be applied
Who or which group will perform the procurement
How the suppliers will be evaluated and finally awarded
Constraints and Assumptions
Who will make the Make or Buy decisions
Approach adopted for the decisions
Identified performance levels & associated incentives
Identified Risks and associate them to the third party financial considerations in
case of guarantee, warrantee, legal obligations and maintenance issues
Guidance to establish a Seller WBS, engaging quality of resources or work to be
accomplished and so on.
Procurement Management Plan
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Procurement Statement of Work
This is the most important document for the seller to obtain from the
buyer as this defines the end objective of the contract with a high
level descriptions.
Descriptions may include performance specifications, skilled
resources, initial constraints, base assumptions, desired quantity,
quality of the work, location of work to be performed and so on.
Further adoptions of SOW can be added as addendums to the SOW
until the Final Contract is signed by both the parties(buyer and seller).
Example:
Procurement SOW: Build the subsection of the complete bridge.
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Procurement
Documents • To collect various strengths & capabilities of
Suppliers/vendors
RFI (Request for Information)
• Asking Vendors to bid on price, whereas the work is already predefined by Buyer
IFB (Invitation for bid)
• Asking Vendors to submit commercial proposal and how it would be done
RFP (Request for proposal)
• Typically for standard items of procurement or with a known Vendor repeated order, quotation is requested
RFQ (Request for quotation)
• Primarily for the government work orders where the work is already predefined with Quality, like road laying
Tender Notice
Typically the documents
floated & circulated to
sellers to invite prospective
competitive bids are
referred as Procurement
Documents.
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Selection Criteria is often included as part of the procurement documents to bring transparency and ensure competitiveness amongst the bidders.
The selection criteria based on which the
contract will be awarded is often disclosed so that the bidders know upfront on what basis their bids will be selected.
In some cases this may be the early phase to narrow down and subsequently have a follow-on round to ensure the qualified
bidders get to know more intricate details and subsequently re-bid for final award.
Few of the possible sources are based :
Seller understanding of requirements better
Lowest Overall Total Cost of Ownership (TCO)
TCO = Purchase + Operating Cost
Technical Capabilities
Logical Capabilities
Risk Management Capabilities
Management Capabilities
Financial Capabilities
Production Capacity
Lobbying Capabilities
Government, Business & Political References
Intellectual rights
Proprietary rights
Past Performance history
Execution capabilities
Source Selection Criteria
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12.2 Conduct Procurements
Inputs
•Procurement Management Plan
•Procurement Documents
•Source Selection Criteria
•Seller Proposals
•Project Documents
•Make-or-buy Decisions
•Procurement SOW
•Organizational Process Assets
Tools & Techniques
•Bidder Conference
•Proposal Evaluation Techniques
•Independent Estimates
•Expert Judgment
•Advertising
•Analytical Techniques
•Procurement Negotiations
Outputs
•Selected Sellers
•Agreements
•Resource Calendars
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process It is the process of conducting the procurements to finally award a contract legally.
During the process, it may involve, how the seller
responses will be availed, on what criteria a seller will be chosen and how the contract will be awarded to the selected seller.
Many projects adopt several
rounds of qualifying the sellers and selections.
In every round for the selected or qualified sellers, more information is provided and based on which further evaluations are done to qualify/chose the seller.
The entire procurement process takes a lengthy approach due to this nature of procurement process and care should be taken to ensure the procurement
process is triggered as soon as the project needs are identified to be realistic.
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Bidder Conferences
Also known as Contractor, Vendor,
Pre-Bid Conferences.
Bidder Conference meetings are
where the potential sellers meet
the buyer.
Buyer establishes a common
ground of basic understanding
about the Contract and also
provides necessary Questions and
Answers to all the Sellers.
All questions are collected upfront
and answers made available
during the conference to all
Sellers.
Buyer performs an evaluation of all
the submitted bids from the sellers
based on a predefined criteria.
This criteria may be public
knowledge or a private affair and
depends on the nature of the
contract being awarded.
However, in most scenarios a
generic guideline is established
and circulated on how the bids will
be weighted and then
accordingly awarded.
Proposal Evaluation Techniques
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Independent Estimates
Before the contract is circulated
for bids, buyer may perform an
independent estimate and
accordingly plan for circulation of
the contract. The estimate could
be also from professional body
specialized in estimation.
Once the contract is circulated to
the sellers, the estimates arrived by
the sellers indicate understanding
of them about contract being put
in place.
Large differences in estimates
mean the sellers are not in line with
contract understanding.
Advertising is often used to
circulate the contracts to a reach
a wider seller community.
Also Government related
procurements are often obligated
to publish the contracts in the
news papers and special industry
trade journals.
Advertising
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Most contracts define if the contract
awards will be negotiable or non-
negotiable contracts.
In case of Negotiable contracts, the
bidder conference and/or the contract
clearly establishes the negotiable parts of
the contract and what are not
negotiable.
During the process of procurement,
usually after the seller is being identified,
the negotiations are called for and before
the contract is being awarded.
Once the contract has been accepted all
the negotiations end and the contract
work has to proceed.
The last chance of any negotiation
possible is before the contract is being
inked legally.
Procurement Negotiations Contract Circulation
•
Bidding Conference
•
Seller Selection
•
Seller Negotiates Buyer
•
Contract Signed
•
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A procurement agreement includes terms and conditions, and includes the nature of work to be executed. Project management team is responsible for:
Ensure all project objectives are listed in agreement
Ensure organizational procurement policies are adhered
Depending on application area, Agreement is referred to as:
Contract
Subcontract
Purchase Order
Regardless of what it may be called, an agreement is a legally mutually binding document which entitles for the legal relationship and remedy to courts. It may include the following components or
more:
Agreements
• Statement of Work or Deliverables
• Schedule Baseline
• Performance Reporting
• Period Of Performance
• Roles And Responsibilities
• Seller’s Place of Performance
• Pricing
• Payment Terms
• Place of Delivery
• Inspections and Acceptance
Criteria
• Warranty
• Product Support
• Limitation of Liability
• Fees and Retainer
• Penalties
• Incentives
• Insurance and Performance Bonds
• Subordinate Subcontractor
Approvals
• Change Request Handling
• Termination Clause
• Alternative Dispute Resolution (ADR) Mechanisms
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12.3 Control Procurements
Inputs
•Project Management Plan
•Procurement Documents
•Agreements
•Approved Change Requests
•Work Performance Data
•Work Performance Reports
Tools & Techniques
•Contract Change Control System
•Procurement Performance Reviews
•Inspection and Audits
•Performance Reporting
•Payment Systems
•Claims Administration
•Records Management System
Outputs
•Work Performance Information
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is the process of ensuring the contracts are performing as per the defined terms and conditions in the contract.
Suitable adoptions to the contract and performance related corrective/preventive actions being taken to ensure the end contract is useful towards the project objectives.
Key benefit of this process is that it ensures the defined contractual obligations (legal) are met by the seller and the buyer meets the defined contractual price definitions.
In most situations on the large projects, the procurement related activities are managed/controlled by Administrative team and
Project Management team supplements them with information needed.
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Contract Change Control System
It is used to ensure the contract
changes required are recorded,
decisions taken and adopted in to the
contract to perform as per new
approved changes to the contract.
All payments related to the contract
are authorized after satisfactory
performance of the work to be done
by the seller. Payment schedules are in
strict accordance as defined in the
contract.
Payment Systems
Procurement Performance Reviews
Reviews are performed during the monitoring and controlling to ensure
the performance of the awarded
contract are inline with the legal
contractual obligations.
Seller is monitored on the various
contract parameters which may
include the cost, scope, timeline,
quality and performance as detailed in
the contract.
All contentious issues are brought to
resolution with seller and buyer
consensus. Issues not resolved may be
subject to a third party arbitrator
service.
Claims Administration
All records pertaining to the contract
are recorded, stored in a information
management system which also allows
for retrieval of the information as
needed.
Records Management Systems
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12.4 Close Procurements
Inputs
•Project Management Plan
•Procurement Documents
Tools & Techniques
•Procurement Audits
•Procurement Negotiations
•Record Management Systems
Outputs
•Closed Procurements
•Organizational Process Assets Updates
•Integration
•Close Project Or Phase
•Scope
•Time
•Cost
•Quality
•Human Resource
•Communications
•Risk
•Procurement
•Stakeholder
•Close Procurements
Closing Process
This is the process of ensuring formal closure of the
contract and the relevant procurement processes are
brought to close.
One aspect of close procurements is to document
performance of seller as Organization Process Asset which
helps future engagement of seller for other projects by
buyer.
Key benefit of the process includes the Formal closure of
the Contract. This may also include the Contract
Termination as the contract may have not materialized
the defined objectives of the contract.
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Chapter 12 - Debrief
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THIS BRINGS TO “PROCUREMENT MANAGEMENT” COMPLETION.
From what we have understood so far is:
4 Procurement Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 12
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Stakeholder
Management
Chapter 13
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Chapter 13
Objectives
Understand the different Stakeholder
Management Processes
Their Inputs, Tools and Techniques, Outputs
This chapter entails one to understand the various Stakeholder Management aspects required to ensure the desired information flows across the project team
and stakeholders.
Managing the expectations and continuously refining the project in tune with the stakeholder needs as per
project objectives make the project successful!
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It includes processes to ensure identification of
stakeholders, effective communication,
engagement of them across project to garner
their support/decisions for execution and
success of project objectives.
Stakeholder Engagement towards their
Satisfaction is by default one key project
objective for project success.
Each Project Stakeholder will exert their
influence on the project in one or the other
manner.
Identifying key stakeholders, understanding their
needs along with the relationships within
themselves is one area, a Project Manager has
to keep close watch to develop strategies to
ensure the stakeholders are in favor of project
objectives.
Knowledge Area: Stakeholder Management
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There are 4 Stakeholder Management processes:
1. Identify Stakeholders
Identification of key stakeholders before the project starts, during the
project kick off and the project execution to closure is critical towards
the stakeholders engagement rightly and avoid the project being
jeopardized.
2. Plan Stakeholder Management
Planning to engage identified stakeholders by understanding their
implicit & explicit needs on the project along with development of
strategies to transition them towards project needs.
3. Manage Stakeholder Engagement
Managing stakeholder information needs, their aspirations &
expectations during the project course along with resolution of any
conflicts among the stakeholders.
4. Control Stakeholder Engagement
Controlling Stakeholders across the project duration to ensure the
stakeholders are active, supportive to the project needs and success.
Knowledge Area: Stakeholder Management
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13.1 Identify Stakeholders
Inputs
• Project Charter
• Procurement Documents
• Enterprise Environmental Factors
• Organizational Process Assets
Tools & Techniques
• Stakeholder Analysis
• Expert Judgment
Outputs
• Stakeholder Register
• Stakeholder Management Strategy
• Integration
• Develop Project Charter
• Scope
• Time
• Cost
• Quality
• Human Resource
• Communications
• Risk
• Procurement
• Stakeholder
• Identify Stakeholders
Initiating Process Identification of parties, internal or external, with stake
in project & document their individual interests,
involvement and influence over the project.
Completion of this process ensures Project manager
has complete view of each individual stakeholder
and can respond or cater his/her time accordingly.
This Process needs to be completed before ―develop
project charter‖ to ensure the charter is developed
with right set of stakeholders & their interests in view.
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Stakeholder Analysis Project Manager’s can practically apply
the Stakeholder Analysis as a technique
performed in 3 different steps to engage
stakeholders from before start of the
project to until it is being closed out.
1. Identify Stakeholders to identify all
the key or otherwise stakeholders
both quantitatively and qualitatively.
2. Identify Potential Impact to
understand each stakeholders
power & interest level in project.
3. Assess reaction & response of key
stakeholders in various situations,
anticipate and prepare an
approach to effectively mitigate the
potential negative impact to the
project.
Four Methods of Stakeholder Analysis: 1. Impact Vs Influence 2. Power Vs Influence 3. Power Vs Interest 4. Salience Mode (Power, Urgency,
Involvement)
Impact Vs Influence
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Various Models of Stakeholder Analysis
Power Vs Influence Power Vs Interest
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Salience Model
Power Urgency
Involvement
Power Urgency
Urgency
Urgency
Involvement Involvement Power
Power
Involvement
Salience Model depicts Stakeholder Analysis representation across three areas: – Power, Urgency, Involvement
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One of the key outputs of Identify stakeholders process is the
Stakeholder Register. This register(document) contains all
details related to the identified stakeholders:
Identification Information
Name, organizational position, location, role in the project,
contact information
Assessment Information
Major requirements, main expectations, potential
influence in the project, phase in the life cycle with the
most interest
Stakeholder Classification
Internal/external, supporter/neutral/resistor, etc.
The register should be consulted and updated on an ongoing
basis, as stakeholders may change — or new ones identified —
throughout the life cycle of the project.
Stakeholder Register
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13.2 Plan Stakeholder Management
Inputs
•Project Management Plan
•Stakeholder Register
•Enterprise Environmental Factors
•Organizational Process Assets
Tools & Techniques
•Expert Judgment
•Meetings
•Analytical Techniques
Outputs
•Stakeholder Management Plan
•Project Document Updates
•Integration
•Develop Project Management Plan
•Scope
•Plan Scope Management
•Collect Requirements
•Define Scope
•Create WBS
•Time
•Plan Schedule Management
•Define Activities
•Sequence Activities
•Estimate Activity Resources
•Estimate Activity Duration
•Develop Schedule
•Cost
•Plan Cost Management
•Estimate Costs
•Determine Budget
•Quality
•Plan Quality Management
•Human Resource
•Plan HR Management
•Communications
•Plan Communications Management
•Risk
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Procurement
•Plan Procurement Management
•Stakeholder
•Plan Stakeholder Management
Planning Process
This is the process to establish mechanisms to engage
stakeholders towards the project success.
Key benefit of this process is to ensure the clear, actionable
plan to interact with project stakeholders to support projects
interests.
Engaging stakeholders effectively to gain maximum support
and key decisions at critical points from stakeholders or group
of stakeholders is essence of Plan Stakeholder Management.
Stakeholder engagement is a continuous process to establish
how the relationships can be sustained, exploited and
harnessed for the benefit of the success of the project
outcome.
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Engagement levels of the
Stakeholders and Stakeholder groups
need to be defined and compared
to the planned engagement levels
using a Stakeholder Engagement
Assessment Matrix.
Different nature of behaviors of
Stakeholders can be observed as
shown such as Leading, Supportive,
Neutral, Resistant, Unaware.
Stakeholders ↓ Unaware Resistant Neutral Supportive Leading
Ramya C D
Shilpa C D
Roopa C D D
Jaya C D
C – Current Engagement Level D – Desired Engagement Level
Engagement
Levels
Unaware
Resistant
Neutral Supportive
Leading
Analytical Techniques
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It is often required and is also a best practice to have project stakeholders engaged effectively. All these strategies documented constitute this plan.
Based on the project needs a high level document or a granular scale plan with strategies and actions defined.
Having a defined strategy based on which project manager can act to engage stakeholders will result in increase of probability of project being
successful.
Once established, due diligence should be taken to ensure the stakeholder management plan is updated continuously and the underlying assumptions are validated to ensure continued accuracy and relevancy.
Typical Stakeholder Management Plan would consist of:
Desired & current key stakeholder engagement level
Scope and impact of change to stakeholders
Identified interrelationships and potential overlap between stakeholders
Communication Requirements for current phase
Information dissemination format, language, content, level of detail, timeframe, frequency
Expected impact for stakeholders, Actions required by stakeholders and so on
Stakeholder Management Plan
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13.3 Manage Stakeholder Engagement
Inputs
•Stakeholder Management Plan
•Communications Management Plan
•Change Log
•Organizational Process Assets
Tools & Techniques
•Communication Methods
•Interpersonal Skills
•Management Skills
Outputs
•Issue Log
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Asset Updates
•Integration
•Direct and Manage Project Work
•Scope
•Time
•Cost
•Quality
•Perform Quality Assurance
•Human Resource
•Acquire Project Team
•Develop Project Team
•Manage Project Team
•Communications
•Manage Communications
•Risk
•Procurement
•Conduct Procurements
•Stakeholder
•Manage Stakeholder Engagement
Executing Process It is the process of engaging the
stakeholders over the course of
the project to gain their support
and increase the chances of
meeting the project objectives.
Key benefit is it helps to increase
the stakeholder confidence levels
and build their support towards
the project objectives while
minimizing their resistance levels
during the changes.
Activities to manage stakeholders
engagement involves:
Engaging the stakeholders at the
suitable stages of discussions and
keeping them informed about the
potential achievements and
upcoming threats
Continuous communication and
open discussions with the
stakeholders to ensure their
support towards the project
objectives
Understand & resolve the
potential concerns or threats or
risks that they foresee and provide
them required information at
requested intervals
Actively engaging stakeholders
ensure the project changes are
smooth and appropriately acted.
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13.4 Control Stakeholder Engagement
Inputs
•Project Management Plan
•Issue Log
•Work Performance Data
•Project Documents
Tools & Techniques
•Information Management Systems
•Expert Judgments
•Meetings
Outputs
•Work Performance Information
•Change Requests
•Project Management Plan Updates
•Project Document Updates
•Organizational Process Assets Updates
•Integration
•Monitor and Control Project Work
•Perform Integrated Change Control
•Scope
•Validate Scope
•Control Scope
•Time
•Control Schedule
•Cost
•Control Costs
•Quality
•Control Quality
•Human Resource
•Communications
•Control Communications
•Risk
•Monitor & Control Risks
•Procurement
•Control Procurements
•Stakeholder
•Control Stakeholder Management
Monitoring & Controlling Process
It is the process of effectively engaging stakeholders and managing stakeholder relationships with adjusting the communication needs and stakeholder relationships.
Adjusting the stakeholder management plan and strategy ensures the stakeholders are rightly identified, their individual objectives
and motivations inclined towards the project are considered at all stages of the project execution.
Individual stakeholders may be supportive, resistive, neutral during the execution of the project. Project Management Team is responsible to identify such intentions of the stakeholders and transition them towards the project benefits.
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Chapter 13 - Debrief
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THIS BRINGS TO “STAKEHOLDER MANAGEMENT” COMPLETION.
From what we have understood so far is:
4 Stakeholder Management Knowledge Area Processes
Identified their Inputs, Tools & Techniques, Outputs
Chapter 13
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Professional & Social
Responsibility
Chapter 14
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Chapter 14
Objectives
Understand PMI® Code of Ethics, Professional &
Social Responsibility
Understand the nature of activities a project
manager has to be mindful of across the
project process groups
This chapter entails one to understand the ethics one should be aware of and to lead projects in the right direction with right sense.
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PMI® code of ethics are classified into 4 Values:
Each of the above value is again performed with Aspirational & Mandatory Standards.
Aspirational: Strive to uphold as practitioners. Although not easily measured, conducting in accordance with these standards is an expectation, not an option.
Mandatory: Establish firm requirements & in cases, limit or prohibit practitioner behavior. Non-compliance will result in disciplinary procedures from PMI.
Value Description
Responsibility
Duty to take ownership for decisions we make or fail to make, the actions we take or fail to take, and subsequent consequences that result.
Respect Duty to show high regard for every resource including oneself. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources.
Fairness Duty to make decisions, act impartially and objectively. Our conduct must be free from competing self interest, prejudice, and favoritism.
Honesty
Duty to understand truth and act in truthful manner both in our communications and in our conduct.
Professional & Social Responsibility
Be Mindful: 1. Validate that the project is
formally authorized before
beginning any project work
2. Exercise the right to refuse, to
start the project until it is
formally authorized by signed
project charter
3. Validate that Contract is being
signed before beginning the
work, if being performed for
an external customer
4. Validate that project is
contributing to strategic goals
of the organization
5. Identify and determine all
affected stakeholders by the
project, could be both internal
and external
Be Mindful: 6. Ensure the most possible accurate
estimates are developed with the
information at hand in planning
7. Develop Communication plan to inform
appropriate stakeholders with timely &
accurate information along with
periodic status reports
8. Ensure detailed subsidiary project
management plans are developed &
evolved in all areas with necessary
information & attributes is included
9. Have a human resource management
plan with strategy to motivate project
team and maximize the resource
efficiency
10. Clearly demonstrate your planning by
having a clearly laid out approach for
upcoming changes, how they will be
handled & addressed to be adapted or
delayed or closed
11. Obtain necessary management
approvals on all the project
management plans & make it
accessible for the stakeholders
Be Mindful: 12. Communicate Project Status with
Transparency, Accuracy & Timeliness to
Stakeholders as desired by them
13. Adhere to the Organizational & Legal
procurement practices, with project manager
making every effort to sort out any ambiguities
14. Award the Contract to the legitimate bidder
based on the defined evaluation criteria
including the performance assessment
15. Include appropriate clauses, terms and
conditions in the contract to protect both seller
and buyer with known and unknown risks
16. Drive project leadership with project staff by:
Encouraging cultural exchange, cultivate
harmony
Acting free of any bias/prejudice, be fair to
everyone
Foster positive environment to encourage team
come up to you and talk of any misappropriate
happenings
Provide necessary knowledge, skills and tools
for team to work efficiently & effectively
Recognize and reward the team for their good
work
Provide corrective & constructive feedback in
case of non-delivery
Act and/or Escalate disciplinary issues
immediately to right authority
Be Mindful: 17. Communicate stakeholders the
changes in pipeline for approval
upfront before CCB and follow-up
with them for further actions as
appropriate
18. Inform Stakeholders about the
approved changes, implemented
corrective & preventive actions,
defect repairs
19. Deviations or variances from the
actual baselines and the
transparent reasons
20. Project deliverables are always
verified and/or validated for the
Quality
21. Proactively engage with
stakeholders or brainstorm to
identify the potential risks
22. Validate the base assumptions and
continuously check for the
constraints applicable across all
phases of project
Be Mindful: 23. Project is formally closed after
check on the deliverables, release
payments, release resources
24. Stakeholders are made to
understand further business
opportunities and/or risks which
may arise due to project
completion
25. Honest and transparent feedback
on the Seller upon Contract
Closure and/or Termination
26. Captured lessons learnt are
shared to the stakeholders and
stored as Organizational Process
Assets
27. Evaluation of the Project
Performance at the closing and
formal acknowledgement by
stakeholders
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Start being Proactive, then Reactive and with Correction actions on all sorts of questions including the Professional & Social Responsibility.
Proactive:
Define Problem in detail.
Validate Problem
Collect Evidence
Perform Own Research
Discuss with the fellow Project Managers
Identify other sources of confirmed information
Talk directly to the source of problem
Conclude with a Problem confirmation
Act on the Problem
Start first with the action on the Problem Source
If not resolved, move to the Internal Project Team Management
If not resolved, move to the Internal Organization Management
If not resolved, move to the board of the Organization
If not resolved, move to the regulatory authority of Government
If not resolved, escalate to the Government escalation channels
Reactive
Corrective
Answering Questions:
Professional & Social Responsibility
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Chapter 14 - Debrief
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THIS BRINGS TO “PROFESSIONAL & SOCIAL RESPONSIBILITY” COMPLETION.
From what we have understood so far is:
PMI Code of ethics – Values
Project Management related tasks for each Process group
Chapter 14
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PMP® Exam Preparation
Essentials
Chapter 15
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Chapter 15
Objectives
Learn few special considerations about how to
participate in the exam
Apply some of the tips, tricks and the way the
questions need to be understood
This chapter entails one to understand few special considerations one has to follow to increase the chances of being successful to start thinking the PMI® way.
Also, a couple of tips, tricks and generic information which need to be kept in purview when participating in the exam itself.
Following the chapter will increase the likelihood of one being success at the PMP® exam.
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What does the exam test?
Your knowledge to apply the
concepts
Your understanding & interpretability of the concepts
Your ability to judge professionally &
ethically correct and act
Your conscience to think in the right
manner & direction
Is that it?
Guess not! Exam also tests your
ability to take stress mentally, and your preparedness physically to sit
long hours and complete the exam.
Exam Preparation
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Just before the exam & on exam day!
Ensure to relax yourself on the day before exam and not get your mind occupied with last minute knowledge hazards
Have sufficient breakfast or meal so that you are not hungry during the exam. Reach venue at least 1 hour in advance to your exam schedule time and ensure
your mind is relaxed to kick start on the minute of your exam
Plan ahead & time your breaks during the exam. You will definitely need to take breaks according to your comfort. We recommend 2 breaks of 10 minute and 10 minute in your exam schedule after every lot of questions
Understand exam questions are situational based…..
Exam Taking Strategy:
1st Strategy:
Set of 80 → 10 min break → set of 80 → 10 min break → set of 40 + review leftover questions
2nd Strategy:
1st Hour - Any question within 30 seconds answerable goes here. Answer all possible simple questions, skip lengthy, skip mathematical, skip complicated questions
2nd Hour – Any question within 100 seconds answerable must go here. Rest any kind of question, push to next round
3rd & 4th Hour – All possible questions and left over questions.
Exam Strategy (Have Strategy to Pass)
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How many of you like Mathematical Questions?
There may be 8-10 formula related questions on average!
Of this 8-10 questions, you should be anticipating at least 3-5 questions with direct application on questions.
Kindly ensure to mark them for review if you would think that it will take more than 40 seconds to answer such questions.
For the questions with direct formula based application, if you can identify that it is a straight forward calculation – attempt.
Please understand you are in the exam to answer many correct questions not just only a subset of questions.
Finally, be conscious of your Exam time. Think which one would you prefer?
4-5 Mathematical Questions spending 10-20 Minutes time OR
15-20 Questions spending the same 10-20 Minutes time in exam
Mathematical Exam Preparation
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During exam, pay attention to key words importantly:
―NOT‖ ―NO‖ ―NEVER‖ ―Less‖ ―ALWAYS‖ ―MOST‖
―LEAST‖ ―BEST‖ ―LAST‖ ―FIRST‖ ―EXCEPT‖ and so on for
every question, before you click the answer correct
During exam, do not expect every answer to mean
something to you. There is a lot of crap answers which
does not mean anything at all. Examples:
―Performance Oriented Risk Analysis‖
―Continuous Periodic Quality Margin‖
―Simplistic Estimation Technique‖
―Extensive Performance Implementation‖
Exam Attention
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Parkinson’s Law – ―work expands so as to fill the time available for its completion‖
Multi Tasking on Activities – Best Approach. One Task at a Time Per Resource.
Buffer on Activities – should not be considered. If considered feeding buffers and/or project buffer should be considered for tradeoff on uncertainty.
8/80 Rule – Best Practice of making Work
Packages realistic. Plan 8hours of work per day per resource for 80hours(2 weeks) per work package.
Heuristics – Typically refer to Rule of Thumb actions applied in the Project context. Such as 8/80 in a Project.
Sunk Costs – Costs which are incurred on the project, which will not be recovered. Also the costs not fruitful for Project anymore.
Ethnocentrism – Belief of one’s own culture and values are far superior than other culture and values.
Monopoly – A situation in market/business, where the dominance/control is by one
single company.
Oligopoly – More like a Monopoly, but controlled by at least 2 or small groups of companies.
Gold Plating – is act of giving the customer more than what originally asked for.
Zeigarnik Effect – Project managers may remember tasks in progress better than recently completed tasks
Halo Effect – People may have be doing a great job. However, one task not done by the team, can create a Halo effect in mind of the person evaluating performance that all tasks are also not done effectively by people.
Extra Terms & Tips on Subject
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―Force majeure‖ is a kind of clause that you’ll see in a contract. It says that if something like a war, riot, or natural disaster happens, you’re excused from the terms of the contract.
Phase exit: As and when there are Project Phases completed, a review point of deliverables, finance accounting and many such activities, almost as good as Project Closure is performed.
Kill point: The tolerance level at which the
Project is going to be terminated with no further intimation automatically. This can be at Milestone, Phase completion, or any other juncture of the Project progress.
Stage gate: In many projects, stage gates are established for the Milestone reviews.
These gates are Control points and move forward and/or Go-No Go Decision points.
Gantt Chart: Pictorial representation of the Project plan or progress chart.
Opportunity Cost is the Opportunity which we are not able to invest in due to shortage of funds/resources/whatever.
Take an example, Organization has $10000 Budget. This can be invested for
Projects.
Project A if invested will give us benefits of $15000. Project B if invested will benefit us by $12000. Naturally, we would invest in the Project A to realize $15000.
Since we invested here, we do not have
any Budget left to invest in Project B, hence we have lost an Opportunity of $12000. This $12000 is referred to as Opportunity Cost.
Extra Terms & Tips on Subject
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• Basic Assumptions for Exam:
– Consider Working always in a Balanced Matrix Organization without
mention as well
– Consider a project managers role always to be in the centre stage, on
one side a client exists and on the other side a vendor exists
– Exam questions are scenario based, as if you are present in that
situation. Consider you have done perfect planning, perfect execution,
perfect monitoring, perfect controlling for every question scenario.
• Follow these, this helps in Exam:
– Memorize any difficult formulae and write them down in the white sheet
in exam hall
• Remember Cost Management!
– Project Budget = Approved Money for Work + Contingency Reserve +
Management Reserve
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Earned Value Management (EVM)
EV = 𝑃𝑉
𝐴𝐶
CV = EV – AC
SV = EV – PV
CPI = 𝐸𝑉
𝐴𝐶
SPI = 𝐸𝑉
𝑃𝑉
TCPI =
𝐵𝐴𝐶𝐸𝑉
𝐵𝐴𝐶𝐴𝐶
EAC (no variances) = 𝐵𝐴𝐶
𝐶𝑃𝐼
EAC (with variances) = AC + ETC
EAC (typical) = AC + ( BAC – EV )
EAC (atypical) = AC + 𝐵𝐴𝐶 −𝐸𝑉
𝐶𝑃𝐼
ETC = EAC – AC
VAC = BAC – EAC
𝐶𝑃𝐼𝐶 = 𝐸𝑉𝐶
𝐴𝐶𝐶
Percent Complete = 𝐸𝑉
𝐵𝐴𝐶 * 100
Project Selection
PV = 𝐹𝑉
(1+𝑟)𝑛
FV = PV * (1 + 𝑟)𝑛
Highest NPV number wins.
Highest IRR number wins.
Highest ROI number wins.
Lowest Payback Period number wins.
Payback Period = 𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝐶𝑎𝑠 𝐼𝑛𝑓𝑙𝑜𝑤 − 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠𝑖=0
𝐵𝐶𝑅 = 𝐵𝑒𝑛𝑒𝑓𝑖𝑡
𝐶𝑜𝑠𝑡
C𝐵𝑅 = 𝐶𝑜𝑠𝑡
𝐵𝑒𝑛𝑒𝑓𝑖𝑡
Opportunity Cost = Value of project not being chosen
Communications
Number of Communication Channels = 𝑛 ∗ (𝑛−1)
2
Risk
Expected Monetary Value(EMV) = 𝑃 ∗ 𝐼
Procurement
Point of Total Assumption(PTA) =
𝐶𝑒𝑖𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 −𝑇𝑎𝑟𝑔𝑒𝑡 𝑃𝑟𝑖𝑐𝑒
𝐵𝑢𝑦𝑒𝑟𝑠 𝑆𝑎𝑟𝑒 𝑅𝑎𝑡𝑖𝑜+ 𝑇𝑎𝑟𝑔𝑒𝑡 𝐶𝑜𝑠𝑡
PV – Present Value FV- Future Value r – Interest rate n – time period NPV – Net Present Value ROI – Return on Investment IRR – Internal Rate of Return BCR – Benefit Cost Ratio CBR – Cost Benefit Ratio
CV – Cost Variance SV – Schedule Variance AC – Actual Cost PV – Planned Value CPI – Cost Performance Index SPI – Schedule Performance Index EAC – Estimate at Completion BAC – Budget at Completion TCPI – To Complete Performance Index
ETC – Estimate to Complete EV – Earned Value VAC – Variance at Completion
C – Cumulative
P – Probability I – Impact
Armadillo Consultants
Benefit Cost Ratio BCR >1 Means Better Benefit Cost Benefit Ratio CBR <1 Means Better Benefit
Formula’s Snapshot
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Hard Values
1 sigma = 68.26%
2 sigma = 95.46%
3 sigma = 99.73%
6 sigma = 99.99% (3.4 Defects Per Million Opportunities)
Control Limits = 3 sigma from mean
Control Specifications = Defined by customer
Rough Order of Magnitude(ROM) estimate =
-25% to +75%
Preliminary estimate = -15% to + 50%
Budget estimate = -10% to +25%
Definitive estimate = -5% to +10%
Final estimate = 0%
Float on the critical path = 0 days
Pareto Diagram = 80/20
Crashing a project = Crash least expensive tasks on critical path
Time Project Manager Communicates >= 90%
Network Diagram
Activity Duration = EF – ES
OR
Activity Duration = LF – LS
Total Float = LS – ES
OR
Total Float = LF – EF
Free Float(FF) =
ES of following – ES of Present – DUR of Present
EF = ES + Duration
LF = LS + Duration
ES = EF of Predecessor
LS = LF – Duration
Arithmetic Calculations
Average(Mean) =
𝑆𝑢𝑚 𝑜𝑓 𝑡𝑒 𝑁𝑢𝑚𝑏𝑒𝑟𝑠
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐼𝑡𝑒𝑚𝑠
Median = Arrange all the values in order and pick the middle number. In case of two middle number, take mean of two numbers.
Mode = Most occurring number in dataset
PERT(Program Evaluation and Review Technique) for Cost or Duration
3 Point Estimate for Cost or Duration = 𝑃 + 4𝑀+ 𝑂
6
Standard Deviation = 𝑃 −𝑂
6
Variance of an activity = * 𝑃 −𝑂
6 + 2
P – Pessimistic Value M – Most Optimistic Value O – Optimistic Value
EF – Early Finish ES – Early Start LF – Late Finish LS – Late Start
Formula’s Snapshot
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Acronyms AC Actual Cost
BAC Budget at Completion
BCR Benefit Cost Ratio
CBR Cost Benefit Ratio
CPI Cost Performance Index
CV Cost Variance
DUR Duration
EAC Estimate at Completion
EF Early Finish
EVM Earned Value Management
EMV Expected Monetary Value
ES Early Start
ETC Estimate to Complete
EV Earned Value
FV Future Value
IRR Internal Rate of Return
LF Late Finish
LS Late Start
NPV Net Present Value
PERT Program Evaluation Review Technique
PTA Point of Total Assumption
PV Planned Value
ROI Return on Investment
SPI Schedule Performance Index
SV Schedule Variance
TCPI To Complete Performance Index
VAC Variance at Completion
Sigma
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Chapter 15 - Debrief
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THIS BRINGS TO “PMP® EXAM PREPARATION ESSENTIALS” COMPLETION.
From what we have understood so far is:
Exam Preparation Strategy
Exam Taking Strategy
Exam Questions Answering
Chapter 15
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What is your take away from this 3 days of investment?
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Your key ―take‖ from 3 days of investment!
YOU ARE CHARGED AND
MOTIVATED IN
THE DIRECTION YOU
CHOSE RIGHT AND NOW HAVE A
GAME PLAN IN PLACE,
YOU WILL WORK TOWARDS IT
AND ACHEIVE YOUR
DEFINED SUCCESS.
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!Smile for Group Photo!
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One last action before you run to get your PMP certification!
PAT YOUR OWN BACK & PAT OTHER’S TOO!
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